Greatness

New York’s Social Equity Fund Limited Partnership Agreement

September 27, 2022
Mary G. Sweeney

For the duration of a minor marketed Hashish Management Board (CCB) assembly, the CCB declared and authorized a Limited Partnership Settlement for New York’s Social Equity Fund. As a quick refresher, the Social Fairness Fund was mandated by the Cannabis Regulation and Taxation Act (MRTA). On January 5, 2022, Governor Kathy Hochul introduced that the fund would be, properly, funded with $200 million of investments cash, $50 million of which would be invested by New York Condition from income deposited in the Hashish Revenue Fund (from tax income).

As we detailed in our post on the Social Fairness Fund, its objective and mechanics, the Social Fairness Fund will finance the Conditional Adult-Use Retail Dispensaries for which the Place of work of Hashish Management (OCM) is currently accepting apps.

As was declared in June 2022, the Social Equity Fund will be managed by Social Equity Impression Ventures. So what is the function of the Constrained Partnership Settlement? It formalizes the lawful connection between the Dormitory Authority of the Condition of New York (DASNY), which has been liable for the federal government portion of the Social Fairness Fund, and Social Equity Effects Ventures GP I, LLC.

A number of interesting tidbits from the resolution approving the constrained partnership arrangement:

  • The resolution especially references New York’s $50m “investment in a personal financial debt or fairness fund,” which only highlights New York’s target target of alone committing $50m in direction of funding CAURD licensees.
  • Social Equity Affect Ventures GP I, LLC is discovered as the typical lover, which suggests that Social Fairness Effects Ventures GP I, LLC will have procedure manage in excess of the Social Equity Fund (presumably topic to many checks and balances and
  • The resolution specifically addresses that the intent of the Social Fairness Fund is to “fund the money charges affiliated with establishing” CAURD licenses.

The acceptance of a constrained partnership arrangement is noteworthy only in that it is a obvious indicator that the OCM intends to shift immediately on the CAURD software window closing on September 26, 2022.