(a)(1) There is established an account to be known as the “cannabis regulatory and investment account” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be allocated by the Secretary of the Office of Policy and Management, in consultation with the Social Equity Council, as defined in section 21a-420, to state agencies for the purpose of paying costs incurred to implement the activities authorized under RERACA, as defined in section 21a-420.
(2)Notwithstanding the provisions of section 21a-420e , for the fiscal years ending June 30, 2022, and June 30, 2023, the following shall be deposited in the cannabis regulatory and investment account:
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(a)(1) There is established an account to be known as the “cannabis regulatory and investment account” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be allocated by the Secretary of the Office of Policy and Management, in consultation with the Social Equity Council, as defined in section 21a-420, to state agencies for the purpose of paying costs incurred to implement the activities authorized under RERACA, as defined in section 21a-420. (2) Notwithstanding the provisions of section 21a-420e , for the fiscal years ending June 30, 2022, and June 30, 2023, the following shall be deposited in the cannabis regulatory and investment account: (A) All fees received by the state pursuant to section 21a-421b and subdivisions (1) to (11), inclusive, of subsection (c) of section 21a-420e ; (B) the tax received by the state under section 12-330 ll ; and (C) the tax received by the state under chapter 219 from a cannabis retailer, hybrid retailer or micro-cultivator, as those terms are defined in section 12-330 ll . (3) At the end of the fiscal year ending June 30, 2023, all moneys remaining in the cannabis regulatory and investment account shall be transferred to the General Fund. (b) (1) There is established an account to be known as the “social equity and innovation account” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. (A) During the fiscal years ending June 30, 2022, and June 30, 2023, moneys in the account shall be allocated by the Secretary of the Office of Policy and Management, in consultation with the Social Equity Council, to state agencies for the purpose of (i) paying costs incurred by the Social Equity Council, (ii) administering programs under RERACA to provide (I) access to capital for businesses, (II) technical assistance for the start-up and operation of a business, (III) funding for workforce education, and (IV) funding for community investments, and (iii) paying costs incurred to implement the activities authorized under RERACA. (B) During the fiscal year ending June 30, 2024, moneys in the account shall be allocated by the Secretary of the Office of Policy and Management for purposes that the Social Equity Council determines, in the Social Equity Council's sole discretion, further the principles of equity, as defined in section 21a-420 , which purposes may include, but need not be limited to, providing (i) access to capital for businesses in any industry, (ii) technical assistance for the start-up and operation of a business in any industry, (iii) funding for workforce education in any industry, (iv) funding for community investments, and (v) funding for investments in disproportionately impacted areas. (2) Notwithstanding the provisions of sections 21a-420e and 21a-420o , for the fiscal years ending June 30, 2022, and June 30, 2023, the following shall be deposited in the social equity and innovation account: All fees received by the state pursuant to sections 21a-420 l , 21a-420o and 21a-420u and subdivisions (12) and (13) of subsection (c) of section 21a-420e . (3) At the end of the fiscal year ending June 30, 2023, five million dollars shall be transferred from the social equity and innovation account to the General Fund, or, if the account contains less than five million dollars, all remaining moneys in the account. At the end of the fiscal year ending June 30, 2024, all remaining moneys in the account shall be transferred to the Social Equity and Innovation Fund established under subsection (c) of this section. (c) (1) On and after July 1, 2022, there is established a fund to be known as the “Cannabis Social Equity and Innovation Fund”. The fund shall contain any moneys required by law to be deposited in the fund and shall be held by the Treasurer separate and apart from all other moneys, funds and accounts. Amounts in the fund may be expended only pursuant to appropriation by the General Assembly. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the fiscal year next succeeding. Moneys in the fund shall be appropriated for the purposes of providing the following: Access to capital for businesses in any industry; technical assistance for the start-up and operation of a business in any industry; funding for workforce education in any industry; funding for community investments; and paying costs incurred to implement the activities authorized under RERACA. All such appropriations shall be dedicated to expenditures that further the principles of equity, as defined in section 21a-420 . (2) (A) For the purposes of subdivision (1) of this subsection, for the fiscal year ending June 30, 2023, and for each fiscal year thereafter, the Social Equity Council shall transmit, for even-numbered years, estimates of expenditure requirements and for odd-numbered years, recommended adjustments and revisions, if any, of such estimates, to the Secretary of the Office of Policy and Management, in the manner prescribed for a budgeted agency under subsection (a) of section 4-77 . (B) The Office of Policy and Management may not make adjustments to any such estimates or adjustments and revisions of such estimates transmitted by the council. Notwithstanding any provision of the general statutes or any special act, the Governor shall not reduce the allotment requisitions or allotments in force pursuant to section 4-85 or make reductions in allotments in order to achieve budget savings in the General Fund, concerning any appropriations made by the General Assembly for the purposes of subdivision (1) of this subsection. (C) The estimates of expenditure requirements transmitted by the Social Equity Council to the Secretary of the Office of Policy and Management pursuant to subparagraph (A) of this subdivision shall, consistent with the requirements established in subsection (a) of section 4-77 , include an estimate of the amount of funds required to be distributed among the permissible purposes for appropriations made from the Cannabis Social Equity and Innovation Fund as set forth in subdivision (1) of this subsection. (d) On and after July 1, 2022, there is established a fund to be known as the “Cannabis Prevention and Recovery Services Fund”. The fund shall contain any moneys required by law to be deposited in the fund and shall be held by the Treasurer separate and apart from all other moneys, funds and accounts. Amounts in the fund may be expended only pursuant to appropriation by the General Assembly. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the fiscal year next succeeding. Moneys in the fund shall be appropriated for the purposes of (1) substance abuse prevention, treatment and recovery services, which may include, but need not be limited to, the (A) provision of youth cannabis use prevention services by the local advisory councils on drug use and prevention established by municipalities pursuant to subsection (a) of Section 4126 of the Drug Free Schools and Communities Act of 1986, as amended from time to time, regional behavioral health action organizations described in section 17a-484f , or youth service bureaus established pursuant to section 10-19m , and (B) development of a public awareness campaign to raise awareness of the mental and physical health risks of youth cannabis use and cannabis use by pregnant persons, and (2) collection and analysis of data regarding substance use. The Social Equity Council may make recommendations to any relevant state agency regarding expenditures to be made for the purposes set forth in this subsection. (e) On and after July 1, 2023, there is established a fund to be known as the “Cannabis Regulatory Fund” which shall be a separate, nonlapsing fund. The fund shall contain any moneys required by law to be deposited in the fund and shall be held by the Treasurer separate and apart from all other moneys, funds and accounts. Moneys in the fund shall be appropriated to state agencies for the purposes of paying costs incurred to implement the activities authorized under RERACA, as defined in section 21a-420 .
(June Sp. Sess. P.A. 21-1, S. 128; P.A. 22-118, S. 129; 22-146, S. 4; P.A. 23-79, S. 24; 23-204, S. 88, 120, 124, 356; P.A. 24-151, S. 140.) History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 22-118 amended Subsecs. (a)(1) and (b)(1) by adding provisions re consultations with Social Equity Council as defined in Sec. 21a-420, added Subsec. (b)(1)(C), and amended Subsec. (c)(1) by adding provision, re paying costs incurred to implement activities authorized under RERACA, amended Subsec. (d) by adding provision re recommendations by Social Equity Council, and made technical and conforming changes, effective May 7, 2022; P.A. 22-146 amended Subsecs. (a)(2) and (b)(2) by adding provisions re fiscal year ending June 30, 2023, added Subsecs. (a)(3) and (b)(3) re transfers and made conforming changes, effective May 7, 2022; P.A. 23-79 amended Subsec. (d)(1) by adding Subparas. (A) and (B) re purposes of appropriations of moneys in fund and making a conforming change, effective July 1, 2023; P.A. 23-204 amended Subsec. (b) by designating provisions re allocation of moneys in social equity and innovation account as new Subdiv. (1)(A) and adding provision therein re fiscal years ending June 30, 2022, and June 30, 2023, redesignating existing Subdiv. (1)(A) to (C) as Subdiv. (1)(A)(i) to (iii) and existing Subdiv. (1)(B)(i) to (iv) as Subdiv. (1)(A)(ii)(I) to (IV), adding new Subdiv. (1)(B) re allocations during fiscal year ending June 30, 2024, adding provision in Subdiv. (3) extending date of transfer of moneys remaining in social equity and innovation account from end of fiscal year ending June 30, 2023, to end of fiscal year ending June 30, 2024, and directing transfer to Social Equity and Innovation Fund instead of General Fund, and making technical and conforming changes throughout Subsec. (b), effective June 12, 2023, and amended Subsec. (c) by substituting “Cannabis Social Equity and Innovation Fund” for “Social Equity and Innovation Fund”, deleting “which shall be a separate, nonlapsing fund” and adding provision requiring expenditure be made pursuant to appropriation of General Assembly and provision concerning carry forward in Subsec. (c)(1), deleting provision re recommendation for funding for credits payable to angel investors that invest in cannabis businesses in Subsec. (c)(2), amended Subsec. (d) by substituting “Cannabis Prevention and Recovery Services Fund” for “Prevention and Recovery Services Fund”, deleting “which shall be a separate, nonlapsing fund” and adding provision requiring expenditure be made pursuant to appropriation of General Assembly and provision concerning carry forward, and added Subsec. (e) establishing the Cannabis Regulatory Fund, effective July 1, 2023; P.A. 24-151 amended Subsecs. (b)(1)(B)(i) to (iii) and (c)(1) by adding “in any industry” and added Subsec. (c)(1)(C) re estimate of amount of funds required to be distributed among permissible purposes for appropriations from Cannabis Social Equity and Innovation Fund, effective June 6, 2024.