What is a social equity joint venture?
Connecticut Social Equity Joint Ventures will create new business in CT to benefit social equity applicants that qualify. Connecticut defines an Equity Joint Venture (EVJ) as a business entity, partnering with a licensed producer, DIA cultivator or dispensary facility, that is at least 50 percent owned and controlled by an individual or individuals who:
- Had an average household income of less than 300 percent of, or three times, the state median household income over the last 3 tax years
- Was a resident of a disproportionately impacted area for at least 5 of the past 10 years; OR
- Was a resident of a disproportionately impacted area for at least 9 years before the age of 18.
(22) “Equity joint venture” means a business entity that is at least fifty per cent owned and controlled by an individual or individuals, or such applicant is an individual, who meets the criteria of subparagraphs (A) and (B) of subdivision (48) of this section;
Are Social Equity Joint Ventures selected by lottery?
No. These licenses do not have to obtain their cannabis business license through a lottery system. Instead the Social Equity Council approves the EVJ to create a maximum of two joint ventures. They can be ANY license type other than the license seeking to partner with the EJV, for example a dispensary.
Sec. 27. (NEW) (Effective July 1, 2021) (a) In order to pay a reduced license expansion authorization fee as described in subsection (b) of section 26 of this act, a producer shall commit to create two equity joint ventures to be approved by the Social Equity Council under section 22 of this act and licensed by the department under this section.
(b) The equity joint venture shall be in any cannabis establishment licensed business, other than a cultivator license, provided the social equity applicant shall own at least fifty per cent of such business.
How much does it cost to start a social equity joint venture in CT?
In order for the Social Equity producer to avoid the large $3 million dollar fee for their producer license, that business must enter into two separate EJVs to get reduced $1.5 million dollar license fee. A producer must create two equity joint ventures to qualify for the reduced license fee.
When can you apply to be an equity joint venture?
There is not a license window for Equity Joint Ventures, the are on a rolling basis as approved from the Social Equity Council. Fast action is advised because if the EJVs have not been issued a final license by the Department within 14 months, then the full amount of the conversion fee applies.