Cannabis in New York: Update on Proposed Eligibility Requirements for a Conditional Dispensary License

On Tuesday, May 17, the New York State Office of Cannabis Management (OCM) Executive Director Chris Alexander led a webinar focused on the proposed eligibility and requirements for a conditional dispensary license. Below is an overview:

Current State

• As of today, no one in NYS is legally authorized to sell cannabis for recreational use
• Medical Marijuana sales are legal for people who are certified by a health care provider

Seeding Opportunity Initiative

• This program will be the first of its kind in the nation.
• This initiative will allow NYS to create and grow an equitable cannabis industry that will support business owners.
• Individuals with cannabis convictions (or family members) who have experience owning a business will be the first to be considered for the retail license.

What is a Conditional License?

A conditional license is a Conditional Adult-Use Retail Dispensary (CAURD) that ;

• Be limited to people with previous cannabis conviction (or their eligible family members) and prior business ownership experience
• The conditional license period will be for four years (with a two-year renewal)
• Only issue a small number of overall licenses (a select group of all retail)

CAURD gives Extra Support to individuals who are:

• Eligible for Cannabis Investment Funding. It will consist of
  • A mix of state and private funding
• The money can be used to help:
  • Find and lease space
  • Design or build out a dispensary
  • Fit-out location with furniture, software, and equipment
  • Assist with seeking support for the development and growth of your new business

What does it mean to be Justice-Involved? (New way to say “Legacy Program or Legacy Candidates”)

• Individuals (the person applying for the license) was convicted of a cannabis-related offense in NYS, OR
• Individuals were married to someone when they were convicted of a cannabis-related offense in NYS, OR
• Individuals are the child/dependent of someone who was convicted of a cannabis-related offense in NYS, OR
• Individuals are the parent/guardian of someone who was convicted of a cannabis-related offense in NYS
  • You will have to provide proof of this conviction

“These are proposed regulations, they are not yet final” – stated by Chris Alexander throughout the presentation.

Documentation and Requirement for Justice Involvement Candidates:

• Be prepared to provide proof of the conviction prior to 3/31/2021
• Other different types of documentation will be considered for acceptance
• Where you lived at the time of conviction and documentation proving you lived there
  • Applicants who lived in areas with a low median household income at the time of arrest or conviction will be prioritized
  • If the person convicted was your family member, proof of how you’re related

Documentation for General Applicants Seeking a License:

• Individuals must currently own a business
• For CAURD applicant(s), they must show proof of owning at least 10% of a business
• Demonstration of at least two years of positive net profits when you owned the business will also be required

Additional Documentation for Considerations:

• Meet minimum ownership criteria for CAURD
• Provide a Business Plan – including information about the planned dispensary, the people who will be owning/operating the business
• Financial documents – tax returns, financial statements for the business applying for the CAURD license, and the previously owned qualifying business
  • All owners of the proposed business will have to submit financial documents
• Fingerprint submission
• $2,000 non-refundable application and license fee

Other Information 

• OCM is still developing plans. They will share feedback from this seminar when the regulations are released.

To share feedback with OCM, contact regulations@nullocm.ny.gov

For more information on how Capalino can help your company or organization expand in the New York market, email Tunisha Walker-Miller at tunisha@nullcapalino.com or Michael O’Boyle at michael@nullcapalino.com.