Who is eligible for conditional New York cannabis dispensary licenses? | Bond Schoeneck & King SARL

New York’s Marijuana Regulation and Taxation Act (the law) not only legalized the recreational possession and use of cannabis for those 21 and older, but also sent a message across the United States that New York was going to devote much of its time and resources to “people involved in the justice system” looking to start cannabis businesses. cannabis isn’t just for big business; the state wants the industry to be flooded with applicants from underrepresented communities or areas negatively affected by the war on drugs. An example of this is the Cannabis Control Board’s (CCB) Adult Conditional Use Retail Dispensary Regulations (the Regulations), which were approved on July 14 and filed with the state registry on July 3. august.

New York’s Office of Cannabis Management (OCM), the entity charged with handling individual participation in the cannabis industry, said the first 100 to 200 conditional adult-use retail dispensary licenses (the licenses) will be granted to people who have been negatively impacted by the war on drugs and cannabis-related convictions. The application period for the Licenses opened on August 25 and closes on September 26. A model of the application form for the Licenses is available here.

The Rules explain who is eligible for this first round of Licenses. In addition to living, attending, or having a registered office in New York, the Regulations state that applicants must show that they are “involved in justice.” This means that before March 31, 2021, they:

  • have been convicted of a marijuana-related offense in New York (i.e. possession, sale, vagrancy in possession);
  • Having a parent, legal guardian, child, spouse, or dependent convicted of a marijuana-related offence; Where
  • Were in the care of a person convicted of a marijuana offence.

To be eligible for licenses, applicants “involved in justice” must also provide proof that, for at least two years, they hold a 10% stake in any company that has operated at a profit for at least two years of operation. . In other words, even if an applicant is “involved in justice,” they will not receive a license if they cannot demonstrate that they have been a successful business owner.

If the applicant is a not-for-profit entity, it must meet certain “justice-related” requirements, such as having officers or directors “committed to justice,” intentionally serving communities affected by the war on drugs, and creating employment opportunities for the judiciary. -persons concerned. Companies must also meet certain ownership requirements: people “involved in justice” must own the majority of the company and a person “involved in justice” must own at least 30% of the company.

Bond’s cannabis lawyers have experience guiding businesses through regulatory and licensing issues in the cannabis industry. With cannabis retail sales expected to begin in late 2022 or early 2023, now is the time to start thinking about applying for a license.

[View source.]

Comments are closed.