New York Applications for Adult-Use Cannabis Licenses Set to Open in October
by Andrew Kingsdale
September 25, 2023
At the New York Cannabis Control Board’s last meeting it announced that applications for the following adult-use, non-conditional licenses will open on October 4, 20223: retail dispensaries, distribution, processing, cultivation, and microbusinesses. The application period will be open for 60 days. Priorities are given to those who have “secured” rights to a specific location, and social and economic equity applicants.
This is the official opening of New York’s adult-use market, which should become the one of the largest legal markets in the world within 5 years if not sooner. While the regulatory process so far has been plagued by litigation and illicit stores, the legal market should have plenty of room to grow to meet demand for safe, tested products.
New York’s two-tier licensing system mirrors its alcohol regulations and does prohibit certain investors in a New York adult-use retail company. For example, persons who own or invest in cultivation, processing/manufacturing, distribution cannabis businesses anywhere in the world generally may be prohibited from investing in a New York retail or consumer-facing business, including delivery and on-site consumption.
But most other out-of-state licensees and investors are welcome to become part of New York licensees, including part of supply-side companies such as cultivation, processing/manufacturing, distribution, and microbusinesses. On the retail side, investors (or “true parties of interest”) who own less than 20% of a New York retail operation or less than 10% of a New York microbusiness also may invest in four or more such operations as “passive investors.”
Social and Economic Equity (SEE) applicants can be minority-owned businesses, women-owned businesses, distressed farmers, service-disabled veterans, and persons from communities disproportionately impacted by cannabis prohibition.
Those who have rights to specific qualifying locations also will receive priority review.
The 60-day application window for this first round of (non-conditional) adult-use licenses is announced to open as early as October 4, 2023. All persons interested in a piece of this market are encouraged to begin preparing for their application now.
This information is provided as a public educational service and is not intended as legal advice. For specific questions regarding New York’s cannabis laws and regulations, please contact the Law Offices of Omar Figueroa, Inc., P.C. at info@omarfigueroa.com to schedule a confidential consultation.
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