Social Equity Council sued by businesses over license denials
Two businesses that were denied a cultivation license from Connecticut’s Social Equity Council (SEC) have filed lawsuits in an effort to overturn the council’s decision. Both The Hartford Cannabis Company and The Good THC Company have filed their own complaints alleging that that the SEC incorrectly denied their applications to qualify as a Social Equity applicant. According to court documents the Social Equity Council determined that there was no evidence that Social Equity Applicants influenced at least 65% of daily affairs in their denial letters.
In their complaint The Hartford Cannabis Company points to language in Connecticut law that requires the SEC to post the necessary documentation criteria by September 1, 2021 to give applicants proper notice of the requirements prior to the start of the application period. The company says that the 65% ownership requirement was not part of the original criteria document or subsequent versions. Weeks after the application portal launched the complaint says that the Social Equity Council suddenly adopted changes to their criteria to require 65% ownership by Social Equity Applicants. The Hartford Cannabis Company claims that 65.10% of the company is owned by Social Equity Applicants and that the SEC improperly reviewed their documentation which led to a denial letter on July 13, 2022.