(a) In order to pay a reduced license expansion authorization fee as described in subsection (b) of § 21a-420l, a producer shall commit to create two equity joint ventures to be approved by the Social Equity Council under § 21a-420d 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 such equity joint venture is at least fifty per cent owned and controlled by an individual or individuals who meet, or the equity joint venture applicant is an individual who meets, the criteria established in subparagraphs (A) and (B) of subdivision (48) of § 21a-420.

(c) The equity joint venture applicant shall submit an application to the Social Equity Council that may include, but need not be limited to, evidence of business formation, ownership allocation, terms of ownership and financing and proof of social equity status. The equity joint venture applicant shall submit to the Social Equity Council information including, but not limited to, the organizing documents of the entity that outline the ownership stake of each backer, initial backer investment and payout information to enable the council to determine the terms of ownership.

(d) Upon obtaining the written approval of the Social Equity Council for an equity joint venture, the equity joint venture applicant shall apply for a license from the department in the same form as required by all other licensees of the same license type, except that such application shall not be subject to the lottery.

(e) A producer, including the backer of such producer, shall not increase its ownership in an equity joint venture in excess of fifty per cent during the seven-year period after a license is issued by the department under this section.

(f) Equity joint ventures that share a common producer or producer backer and that are retailers or hybrid retailers shall not be located within twenty miles of another commonly owned equity joint venture.

(g) If a producer has paid a reduced conversion fee, as described in subsection (b) of § 21a-420l, and subsequently did not create two equity joint ventures under this section that, not later than fourteen months after the Department of Consumer Protection approved the producer’s license expansion application under § 21a-420l, each received a final license from the department, the producer shall be liable for the full conversion fee of three million dollars established in § 21a-420l minus such paid reduced conversion fee.

(h) No producer that receives license expansion authorization under § 21a-420l shall create more than two equity joint ventures. No such producer shall apply for, or create, any additional equity joint venture if, on the effective date of this section, such producer has created at least two equity joint ventures that have each received a provisional license.

(i) An equity joint venture applicant shall pay fifty per cent of the amount of any applicable fee specified in subsection (c) of § 21a-420e for the first three renewal cycles of the applicable cannabis establishment license applied for, and shall pay the full amount of such fee thereafter.