Conn. Gen. Stat. § 21a-420cc: Social equity applicants. Cultivator or micro-cultivator facility outside of disproportionately impacted area permitted. Requirements.

(a) During the period beginning January 1, 2026, and ending December 31, 2027, the department shall issue a cultivator license or micro-cultivator license to a social equity applicant, which permits such applicant to locate such applicant's cultivator or micro-cultivator facility outside of a disproportionately impacted area, provided:

(1) On or before July 1, 2026, the social equity applicant submits to the department a complete application for a provisional cultivator or micro-cultivator license pursuant to subsection (a) of section 21a-420o;

(2) On or before June 30, 2027, the Social Equity Council verifies, pursuant to subdivision (1) of subsection (a) of section 21a-420o, that such applicant meets the criteria established for a social equity applicant;

(3) On or before June 30, 2027, the department issues a provisional cultivator or micro-cultivator license to the social equity applicant pursuant to section 21a-420o; and

(4) On or before July 1, 2027, the provisional licensee submits to the department a complete application for a final cultivator or micro-cultivator license, as prescribed in section 21a-420g, which application shall include:

(A) A copy of a fully executed lease agreement between the provisional licensee and a hemp producer, which hemp producer has been continually licensed under section 22-61l since January 1, 2024, and which agreement provides:

(i) For the use of the hemp producer's lot, as defined in section 22-61l, that is on record with the Department of Agriculture on January 1, 2024, and may be located outside of a disproportionately impacted area; and

(ii) That the hemp producer does not currently hold a position of ownership, control or management of the provisional licensee, and if a final cultivator or micro-cultivator license is issued to the provisional licensee pursuant to this section, the hemp producer shall not hold a position of ownership, control or management of the licensee for a period of seven years commencing on the date on which such final license is issued pursuant to this section; and

(iii) An express acknowledgment by the parties that if the department issues a final cultivator or micro-cultivator license to the provisional licensee pursuant to this section, the hemp producer shall immediately be deemed to have automatically surrendered such hemp producer's license;

(B) Evidence sufficient for the department to verify that the hemp producer that is a party to the lease has been continually licensed as a hemp producer since January 1, 2024;

(C) An acknowledgment by the provisional licensee that, if the department issues a final cultivator or micro-cultivator license to such provisional licensee pursuant to this section, such licensee shall (i) in the case of a final cultivator license, be eligible to create not more than one equity joint venture after such licensee receives such license and commences cultivation activities under such license, or (ii) in the case of a final micro-cultivator license, be ineligible to create an equity joint venture after such licensee receives such license; and

(D) An attestation by the provisional licensee that (i) the hemp producer from which such provisional licensee is leasing land shall have no ownership interest in, or managerial control over, such licensee, other than any ownership interest or control previously disclosed to the Social Equity Council for the purpose of determining that the social equity applicant meets the criteria for a social equity applicant pursuant to subdivision (1) of subsection (a) of section 21a-420o, and (ii) all hemp has been harvested from the lot subject to the lease between the provisional licensee and the hemp producer.

(b) During the seven-year period commencing on the date on which a final cultivator license or final micro-cultivator license is issued pursuant to this section, the cultivator or micro-cultivator issued such final license shall:

(1) Not enter into any business arrangement with the hemp producer, other than for the lease of the hemp producer's lot, or any affiliate, subsidiary or entity controlled by the hemp producer if such business arrangement may result in such hemp producer, affiliate, subsidiary or entity holding a position of ownership, control or management of the cultivator or micro-cultivator; and

(2) Disclose any direct or indirect business interest or relationship between the cultivator or micro-cultivator and the hemp producer or any affiliate, subsidiary or entity controlled by the hemp producer or any key participant, as defined in section 22-61l.

(c) The fee to renew a final cultivator license or final micro-cultivator license issued pursuant to this section shall be the same as the fee to renew a final cultivator license or final micro-cultivator license as set forth in section 21a-420e.

(d) All hemp located on the lot subject to the lease agreement between the provisional licensee and the hemp producer shall continue to be deemed hemp until the department issues a final cultivator license or final micro-cultivator license to such licensee. After the department issues a final cultivator license or final micro-cultivator license pursuant to this section, such hemp shall be deemed to be cannabis and shall be subject to all cannabis cultivation, testing, labeling, tracking, reporting and manufacturing provisions of RERACA as such provisions apply to cultivators and micro-cultivators.

(e) No provisional licensee that receives a final cultivator license under this section shall be eligible to create more than one equity joint venture, and no such licensee shall create any equity joint venture unless such licensee has received a final cultivator license under this section and commenced cultivation activities under such cultivator license. No provisional licensee that receives a micro-cultivator license under this section shall be eligible to create an equity joint venture.

(f) Each application submitted to the department pursuant to subsection (a) of this section, and all information included in or submitted with such application, shall be subject to the provisions of subsection (g) of section 21a-420e.