New York CANNABIS LICENSES

The General Application Window for Cannabis Licenses for the Public Closed on December 17th, 2023 for provisional licenses. Prior to this, the non-provisional license window closed on November 17th, 2023. 

Even the next application period is expected to open in March 2024 for Type 3 processor licenses, AUCCs and AUCPs transitioning to non-conditional licenses.

New York’s Conditional Adult-Use Retail Dispensary (CAURD) licenses are temporary licenses only available for “justice-involved” applicants in the first round of applicants for cannabis retail (dispensary) licensure. To be considered “justice-involved” the applicant must have a cannabis-related offense or have an immediate family member with a cannabis-related offense, who have experience owning and operating a profitable business. These individuals must show evidence of running a profitable business for two (2) consecutive years.

The Cannabis Control Board (CCB) received 903 applications for the Conditional Adult-Use Retail Dispensary in the summer of 2022, and awarding 463 total licenses in late into 2022 and 2023. This has allowed the first cannabis retail store (or dispensary) to open before the end of 2022, which was selling New York first regulated and tested cannabis products. New York’s implementation of conditional cannabis licenses will assist the state in catching up with its neighbors in the Tri-state area, New Jersey and Connecticut, and has allowed recreational cannabis (non-medical or adult-use cannabis).

Conditional licenses are valid for four (4) years from the date of license issuance by the OCM. License holders may apply to convert their “Conditional Adult-Use Retail Dispensary License” to a standard, “Adult-Use Dispensary License” prior to its expiration. License holders would be required to enter a labor peace agreement with a bona fide labor organization. Note, this is not to be confused with the State of New Jersey. New Jersey’s conditional licenses are meant to allow people to obtain adult-use cannabis licenses without large amounts of capital pre-application.

Anyone. In the first round of licensure, the adult-use (non-medical/recreational) dispensary (cannabis retail) licensing process is designed to favor those that have a past conviction of a cannabis offense or have a close relationship with someone who has been charged and convicted with a cannabis-related offense. We refer to this as “justice-involved” individuals.

Applicants will also need to prove that they have had at least 10% ownership in a profitable business for at least two years.

Residency Requirement

A majority of the ownership of the applying company/entity must have been in New York State for 180 days within the last year, or 540 days within the last three years.

Conviction Requirements

The applicant, of if the applicant was dependent to must have been convicted of a cannabis-related offense in New York State at any time prior to 3/31/2021.

Business Requirements

You need to have held at least 10% ownership for two years in a business that had at least two years of net profit.

Or if you’ve owned at least part of a non-profit, a non-profit that has all the following:

• Have people with marijuana convictions in New York on its board or as its officers
• Has at least two years of positive net assets or profit
• Has at least 5 full-time employees
• Serves individuals and communities with high rates of cannabis-related arrests and convictions
• Has a history of creating work for people with marijuana convictions

Ownership Percentages

The entity with sole control of the applying business and at least 30% of the ownership interest must meet the residency requirement AND the conviction and for-profit business requirement OR the non-profit business requirement.

In addition, at least 51% of the applying business’s ownership interest must 1) meet residency requirement AND the conviction and for-profit business requirement OR the non-profit business requirement or 2) the conviction requirement.

You were eligible for a Conditional Adult-Use Retail Dispensary license if you are an applicant (a business or entity) that satisfies the following:

• Majority-owned company by “justice-involved” individuals;
• The applicant consists of individuals that have had at least a 10% ownership stake for at least two years in a business that had a net profit;
• Are New York residents if applying as an individual, or have a principal corporate location within New York or be organized under the laws of New York if applying as an entity.

Alternatively, applicants can be:

• Non-profits that serve “justice-involved” individuals and communities that managed a social enterprise with at least two years of positive net assets;
• Have a history of creating opportunities for “justice-involved” individuals;
• Have “justice-involved” individuals on its board or as officers;
• Have five or more full-time employees.

CannDelta has successfully helped acheive CAURD Licencses from the Office of Cannabis Management (the “OCM”).
It is believed that the OCM will continue to prioritize applications that are classified with a social equity component as the application process opens up in Summer 2023.

The costs per license application is $2,000 (non-refundable) and each license allows for the opening of a single location. Each operator may hold a maximum of three licenses and operators cannot be vertically integrated i.e. it’s not possible to cultivate, process or manufacture, and distribute, etc.v

Cannabis Control Board (CCB)

Issues/inspects/revokes licenses, registrations, permits
Limits/halts number of licenses
Approves social equity plans

Office of Cannabis Management (OCM)

Issues/inspects/revokes licenses, registrations, permits
Limits/halts number of licenses
Approves social equity plans

State Cannabis Advisory Board

Advises and recommends cannabis use of all types
Governs and administers Reinvestment Funds

To be eligible for an Adult-Use Conditional Cultivator License an applicant must meet all of the following:

1. Have been authorized to grow hemp under the Department of Agriculture and Markets Industrial Hemp Research Pilot Program.
2. Be in good standing with the Department of Agriculture and Markets.
3. Have been authorized by the Department of Agriculture and Markets to grow cannabinoid or “CBD hemp” as opposed to growing hemp for grain or fiber.
4. Have grown and harvested cannabinoid or “CBD hemp” for two of the past four years (between 2018 – 2021) and be able to provide the Office with proof documenting such activities.
5. Hold at least 51% or more ownership in the entity that held the industrial hemp grower authorization from the Department of Agriculture and Markets.

To open a dispensary or a consumption lounge in the state of New York, you’ll need the following:

1. A lease or proof of title or ownership of a site
2. No more than three (3) Adult-Use on-site consumption licenses per individual investor.
3. No vertical integration permitted – individual investors cannot be an Adult-Use Cannabis Cultivator and own a Consumption Lounge in the State of New York.
4. Respected set back distances – there is prohibition of consumption licence within 500 feet (ft) of a school.
5. A detailed and well-crafted application package submitted by the Applicant.

License application and regulatory fees vary depending on the license you are seeking. The minimum application fee for any license in New York is $1,000.

In terms of total overall costs, please contact our office so we can learn more about your goals, your situation and provide with you an accurate estimate of how much it will cost to open a cannabis business in New York.

There are currently 74 adult-use cannabis dispensaries across New York State.

To verify the legitimacy of a New York Cannabis Adult-use Retail Dispensary License, use this State-run verification tool.

Find Attached a list and corresponding map (provided by Google) of the Municipalities that have opted-in and opted-out for cannabis retail dispensaries and consumption lounges for adult-use:

These towns/cities have opted-in to Cannabis Retail Dispensaries and/or Consumption Lounges: 

No, you can no longer apply for a CAURD License.

The CAURD licensing program was put on pause in late 2023 after an injunction was filed.

The Coalition for Access to Regulated & Safe Cannabis (CARSC), also known as the Registered Organizations (ROs), initiated legal action in Albany’s state court. They levied accusations against regulatory bodies for mishandling the launch of New York’s cannabis market, which they claimed obstructed the entry of licensed entities and enabled the proliferation of unlicensed vendors (referencing Coalition for Access to Regulated & Safe Cannabis v. New York, Index No. 902390-2023, filed in N.Y. Supreme Court, Albany County on Mar. 16, 2023).

This backdrop set the stage for the CARSC and Fiore disputes, which were ultimately settled in a manner akin to the Variscite case. These settlements not only provided licenses to the complainants but also instituted a pause on new CAURD applications, though it allowed for the processing of existing ones. 

If the window is closed, you may potentially opt to invest with a current license holder.

Licensees awarded from the general application round may work investors without needing to declare anyone if they remain under the 10% threshold of ownership.

CAURD licenses are permitted to sell up to 49% of their equity for a period of three years after licensure. At which time, they may choose to divest entirely.

If you are a CAURD holder or an investor, contact CannDelta today to learn about opportunities!

CannDelta can help you get opened fasted by streamlining your operations. See attahed for a list of items that we can assist with!

How CannDelta Supports You Every Step of the Way