Section 21a-420g - Review of applications by Social Equity Council. Maximum number of applications. Lotteries. Rankings to be confidential. Disqualification. Provisional license. Final license(a) The Social Equity Council shall review the ownership information and any other information necessary to confirm that an applicant qualifies as a social equity applicant for all cannabis establishment license type applications submitted to the department and designated by the applicant as a social equity applicant. The Social Equity Council shall prescribe the documentation necessary for applicants to submit to establish that the ownership, residency and income requirements for social equity applicants are met. On or before September 1, 2021, the Social Equity Council shall post such necessary documentation requirements on its Internet web site to inform applicants of such requirements prior to the start of the application period.(b) Except as provided in section 21a-420o , and section 5 of this act, prior to the first date that the department begins accepting applications for a license type, the department shall determine the maximum number of applications that shall be considered for such license type and post such information on its Internet web site. Fifty per cent of the maximum number of applications that shall be considered for each license type (1) shall be selected through a social equity lottery for such license type, and (2) shall be reserved by the department for social equity applicants. If, upon the close of the application period for a license type, the department receives more applications than the maximum number to be considered in total or to be reserved for social equity applicants as set forth in this subsection, a third-party lottery operator shall conduct a lottery to identify applications for review by the department and the Social Equity Council.(c)(1) The third-party lottery operator shall: (A) Not be provided any application received after the close of the application period;(B) Give equal weight to every complete application submitted during the application period; and(C) Conduct multiple, separate geographic lotteries if required by the department.(2) For purposes of the lottery, the third-party lottery operator shall:(A) Conduct an independent social equity lottery and general lottery for each license type that results in each application being randomly ranked starting with one and continuing sequentially; and(B) Rank all applications in each lottery numerically according to the order in which they were drawn, including those that exceed the number to be considered, and identify for the department all applications to be considered.(d)(1) Prior to submitting an application, an applicant that is a business entity shall register such business entity with the Secretary of the State to do business in this state, and include with such application an attestation that such applicant has so registered.(2) No applicant shall apply more than once in any application period to the social equity lottery round, if applicable, or the general lottery round. The department shall review the list of all lottery applicants in the social equity lottery round and the general lottery round, independently for each such round, to determine whether any applicant has submitted more than one application under the same applicant name. Except as provided in subdivision (3) of this subsection, if the department determines that any applicant has submitted more than one application in the social equity lottery round or the general lottery round, all applications submitted in such round by such applicant shall be disqualified and the department shall remove all such applications from the pool of eligible applications the department provides to the third-party lottery operator for selection in such round.(3) If a social equity application is entered into the general lottery round pursuant to subdivision (4) of subsection (e) of this section, thereby resulting in two entries by the same social equity applicant in the general lottery round, such entries shall not result in disqualification under subdivision (2) of this subsection. Such social equity applicant shall not be eligible to receive more than one license from any round of the general lottery. If such social equity applicant is selected twice for consideration in any general lottery round, the department shall disqualify the second such selection and request that the third-party lottery operator identify the next-ranked application in the applicable lottery.(4) No disqualification under this subsection shall result in any refund of lottery fees.(5) For the purpose of this subsection: (A) "Application period" means the established period of time within which the department may accept applications for a specific license type for the social equity or general lottery; and (B) "round" means each time a lottery is run to determine the ranking of applicants after the conclusion of an application period, either for the social equity lottery or the general lottery.(e)(1) Upon receipt of an application for social equity consideration or, in the case where a social equity lottery is conducted, after such lottery applicants are selected, the department shall provide to the Social Equity Council the documentation received by the department during the application process that is required under subsection (a) of this section. No identifying information beyond what is necessary to establish social equity status shall be provided to the Social Equity Council. The Social Equity Council shall review the social equity applications to be considered as identified by the third-party lottery operator to determine whether the applicant meets the criteria for a social equity applicant. If the Social Equity Council determines that an applicant does not qualify as a social equity applicant, the application shall not be reviewed further for purposes of receiving a license designated for social equity applicants. The application shall be entered into the general lottery for the applicable license type and may be reviewed further if selected through such lottery, provided the applicant pays the additional amount necessary to pay the full fee for entry into such lottery within five business days of being notified by the Social Equity Council that such applicant does not qualify as a social equity applicant. Not later than thirty days after the Social Equity Council notifies an applicant of the Social Equity Council's determination that the applicant does not meet the criteria for a social equity applicant, the applicant may appeal from such determination to the Superior Court in accordance with section 4-183.(2) Upon determination by the Social Equity Council that an application selected through the lottery process does not qualify for consideration as a social equity applicant, the department shall request that the third-party lottery operator identify the next-ranked application in the social equity lottery. This process may continue until the Social Equity Council has identified for further consideration the number of applications set forth on the department's web site pursuant to subsection (b) of this section or until there are no remaining social equity applications to be considered.(3) For each license type, the Social Equity Council shall identify for the department the social equity applications that qualify as social equity applicants and that should be reviewed by the department for purposes of awarding a provisional license.(4) Any application entered into, but not selected through, the social equity lottery shall not be reviewed as a social equity application, but shall be entered into the general lottery for the applicable license type.(5) After receiving the list of selected social equity applications reviewed and approved by the Social Equity Council, the department shall notify the third-party lottery operator, which shall then conduct the independent general lottery for all remaining applicants for each license type, rank all general lottery applications numerically including those that exceed the number to be considered, and identify for the department all of the selected applications to be reviewed. The number of applications to be reviewed by the department shall consist of the applications ranked numerically one through the maximum number necessary to ensure that fifty per cent of the applications for each license type identified through the lottery process are selected from the social equity lottery and approved by the Social Equity Council.(6) The numerical rankings created by the third-party lottery operator shall be confidential and shall not be subject to disclosure under the Freedom of Information Act, as defined in section 1-200.(f) The department shall review each application to be considered, as identified by the third-party lottery operator or Social Equity Council, as applicable, to confirm such application is complete and to determine whether any application: (1) Includes a backer with a disqualifying conviction;(2) exceeds the cap set forth in section 21a-420i; or(3) has a backer who individually or in connection with a cannabis business in another state or country has an administrative finding or judicial decision that may substantively compromise the integrity of the cannabis program, as determined by the department, or that precludes its participation in this state's cannabis program.(g) No additional backers may be added to a cannabis establishment application between the time of lottery entry, or any initial application for a license, and when a final license is awarded to the cannabis establishment, except, if a backer of an applicant or provisional licensee dies, the applicant or provisional licensee may apply to the commissioner to replace the deceased backer, provided if such applicant is a social equity applicant, the Social Equity Council shall review ownership to ensure such replacement would not cause the applicant to no longer qualify as a social equity applicant. A backer may be removed from a cannabis establishment application selected through the general lottery at any time upon notice to the department.(h) If an applicant is disqualified on the basis of any of the criteria set forth in subsection (f) of this section, the entire application shall be denied, and such denial shall be a final decision of the department unless the applicant removes from such application all backers that would cause such denial not later than thirty days after the department sends notice to the applicant disclosing such denial. Any change to a social equity applicant shall be reviewed and approved by the Social Equity Council before such change is reviewed by the department. Not later than thirty days after the department sends notice to the applicant disclosing such denial, the applicant may appeal such denial to the Superior Court.(i) For each application denied pursuant to subsection (f) of this section, the department may, within its discretion, request that the third-party lottery operator identify the next-ranked application in the applicable lottery. If the applicant that was denied was a social equity applicant, the next ranked social equity applicant shall first be reviewed by the Social Equity Council to confirm that the applicant qualifies as a social equity applicant prior to being further reviewed by the department. This process may continue until the department has identified for further consideration the number of applications equivalent to the maximum number set forth on its Internet web site pursuant to subsection (b) of this section. If the number of applications remaining is less than the maximum number posted on the department's Internet web site, the department shall award fewer licenses. To the extent the denials result in less than fifty per cent of applicants being social equity applicants, the department shall continue to review and issue provisional and final licenses for the remaining applications, but shall reopen the application period only for social equity applicants.(j) All applicants selected in the lottery and not denied shall be provided a provisional license application, which shall be submitted in a form and manner prescribed by the commissioner. Lottery applicants shall have sixty days from the date they receive their provisional application to complete the application. The right to apply for a provisional license is nontransferable. Upon receiving a provisional application from an applicant, the department shall review the application for completeness and to confirm that all information provided is acceptable and in compliance with this section and any regulations adopted under this section. If a provisional application does not meet the standards set forth in this section, the applicant shall not be provided a provisional license. A provisional license issued by the department to an applicant on or before June 30, 2023, other than a provisional license issued pursuant to section 21a-420o, shall expire twenty-four months after the date on which the department issued such provisional license and shall not be renewed. A provisional license issued by the department to an applicant on or after July 1, 2023, other than a provisional license issued pursuant to section 21a-420o, shall expire after fourteen months and shall not be renewed. Upon granting a provisional license, the department shall notify the applicant of the project labor agreement requirements of section 21a-421e. A provisional licensee may apply for a final license of the license type for which the licensee applied during the initial application period. A provisional license shall be nontransferable. If the provisional application does not meet the standards set forth in this section or is not completed within sixty days, the applicant shall not receive a provisional license. The decision of the department not to award a provisional license shall be final and may be appealed in accordance with section 4-183. Nothing in this section shall prevent a provisional applicant from submitting an application for a future lottery.(k) Final license applications shall be submitted on a form and in a manner approved by the commissioner and shall include, but not be limited to, the information set forth in this section, as well as evidence of the following: (1) A contract with an entity providing an approved electronic tracking system as set forth in section 21a-421n;(2) A right to occupy the location at which the cannabis establishment operation will be located;(3) Any necessary local zoning approval for the cannabis establishment operation;(4) A labor peace agreement complying with section 21a-421d has been entered into between the cannabis establishment and a bona fide labor organization, as defined in section 21a-421d;(5) A certification by the applicant that a project labor agreement complying with section 21a-421e will be entered into by the cannabis establishment prior to construction of any facility to be used in the operation of a cannabis establishment;(6) A social equity plan approved by the Social Equity Council;(7) A workforce development plan approved by the Social Equity Council;(8) Written policies for preventing diversion and misuse of cannabis and sales to underage persons; and(9) All other security requirements set forth by the department based on the specific license type.(l) At any point prior to the expiration of the provisional license, the department may award a provisional licensee a final license for the license type for which the licensee applied. Prior to receiving final license approval, a provisional licensee shall not possess, distribute, manufacture, sell or transfer cannabis. The department may conduct site inspections prior to issuing a final license.(m) At any time after receiving a final license, a cannabis establishment may begin operations, provided all other requirements for opening a business in compliance with the laws of this state are complete and all employees have been registered and all key employees and backers have been licensed, with the department.Conn. Gen. Stat. § 21a-420g
Amended by P.A. 24-0076,S. 11 of the Connecticut Acts of the 2024 Regular Session, eff. 7/1/2024.Amended by P.A. 23-0079, S. 25 of the Connecticut Acts of the 2023 Regular Session, eff. 6/19/2023.Added by P.A. 21-0001, S. 35 of the Connecticut Acts of the 2021 Special Session, eff. 7/1/2021.