Connecticut has a social equity program which was created in 2021 through the state’s adult use legislation. In Connecticut’s adult use cannabis sector, an individual is eligible to be a social equity applicant if they own at least 65% of their cannabis establishment and
(A) Had an average household income of less than three hundred percent of the state median household income over the three tax years immediately preceding the application; and
(B)
(i) Was a resident of a disproportionately impacted area for at least five of the ten years immediately before the the date the application; or
(ii) Was a resident of a disproportionately impacted area for at least than nine years prior to attaining the age of eighteen.
Social Equity
Social Equity Definition / Criteria
Connecticut has a social equity program which was created in 2021 through the state’s adult use legislation. In Connecticut’s adult use cannabis sector, an individual is eligible to be a social equity applicant if they own at least 65% of their cannabis establishment and
(A) Had an average household income of less than three hundred percent of the state median household income over the three tax years immediately preceding the application; and
(B)
(i) Was a resident of a disproportionately impacted area for at least five of the ten years immediately before the the date the application; or
(ii) Was a resident of a disproportionately impacted area for at least than nine years prior to attaining the age of eighteen.
Social Equity Provisions
Connecticut will offer several benefits through its social equity program. In Connecticut, fifty percent of the adult use cannabis licenses in each license type must be reserved for social equity applicants. While Connecticut’s social equity program is still being developed, the law states the program should extend expedited or priority license processing for social equity applicants and establish a process to best ensure that social equity applicants have access to the capital and training needed to own and operate a cannabis establishment.Additionally the department will develop a cannabis business accelerator program to provide technical assistance to participants by partnering participants with a larger cannabis establishment.
The Social Equity Council will develop a program to assist Social Equity Applicants in opening two micro-cultivator establishments. The program is still in development and is contingent on current Medical Marijuana Producers converting their licenses to also serve the Adult-Use Cannabis market.
License Priorities and Set Asides
In Connecticut, fifty percent of the adult use cannabis licenses in each license type must be reserved for social equity applicants. While Connecticut’s adult use program has not been fully developed, the law states that social equity applicants will receive expedited or priority license processing for each of the following license types: retailer, hybrid retailer, cultivator, micro-cultivator, product manufacturer, food and beverage manufacturer, product packager, transporter and delivery service license.
Fee Waivers and Reductions
In Connecticut social equity applicants are given a 50% discount on application fees and licensure fees for the first three renewal cycles. After three cycles social equity applicants are required to pay the full fees which are as follows:
Other Financial Support for Social Equity Applicants and Licensees
Connecticut law designates up $50 million in bonding for initial funding for start-up capital for social equity applicants, the cannabis business accelerator program, and workforce training developed by the Social Equity Council.
Beginning on July 1, 2023, 60% to 75% of the cannabis excise tax revenue will be directed to the Social Equity and Innovation Fund. Those funds can be used to promote social equity in relation to access to capital for businesses, funding workforce education, and funding for community investments.