New York Conditional Adult-Use Retail Licenses Announced; Application Deadline Set for Conditional Cannabis Licenses for Hemp Farmers and Processors
By Andrew Kingsdale
March 11, 2022
At the New York Cannabis Control Board’s board meeting yesterday, the CCB announced the application period for the “Conditional Adult-Use Cultivator” and “Conditional Adult-Use Processor” licenses (discussed here) will open on March 15, 2022, and close on June 30, 2022. These conditional licenses will grant hemp farmers and processors the right to grow/produce and distribute adult-use cannabis products through June 1, 2023, with an additional year to grow and/or process thereafter.
Separately, the Board also released new draft regulations pertaining to “Conditional Adult-Use Retail Dispensary” licenses. The draft regulations (subject to 60 day public comment) would offer an initial round of retail dispensary licenses to: 1) entities majority-owned and controlled by “justice involved” persons, and 2) entities majority-owned and controlled by non-profit entities that serve communities disproportionately impacted by cannabis prohibition and the war on drugs.
A “justice involved” person would mean an individual who:
(a) was convicted of a marihuana-related offense in New York State prior to the thirty-first of March two thousand twenty-one; or
(b) had a parent, legal guardian, child, spouse, or dependent who was convicted of a marihuana-related offense in New York State prior to the thirty-first of March two thousand twenty-one; or
(c) was a dependent of an individual who was convicted of a marihuana-related offense in New York State prior to the thirty-first of March two thousand twenty-one;
(Proposed Section 116.4(a)(2)(i) to Chapter II of Subtitle B of Title 9 of the Official Compilation of Codes, Rules and Regulations of the State of New York.)
To qualify, a “justice involved” applicant also would have to show some prior business experience and success, specifically “hold or have held, for a minimum of two years, at least ten percent ownership interest in, and control of, a qualifying business, which means a business that had net profit for at least two of the years the business was in operation.” (Proposed Section 116.4(a)(2)(iii).)
Nonprofit organizations eligible to apply must, among other criteria:
intentionally serve justice involved individuals and communities with historically high rates of arrest, conviction, incarceration or other indicators of law enforcement activity for marihuana-related offenses.
(Proposed Section 116.4(a)(3).)
The nonprofit also should have “justice involved” persons serving on their board or as officers. (Proposed Section 116.4(a)(3).)
A Conditional Adult-Use Retail Dispensary license would last four years, with a mandatory renewal date after the first two years. After the four-year conditional period, the applicant would have to apply for a regular adult-use retail license, which lasts two years. (Proposed Section 116.6.) Each conditional retail licensee and its interested parties would be allowed to have a direct or indirect financial or controlling interest in up to three conditional retail licenses. (Proposed Section 116.7(10).)
This is a developing story; stay tuned to our blog for further updates.
This information is provided as a public educational service and is not intended as legal advice. For specific questions about hemp or cannabis laws and regulations in New York or California, contact the Law Offices of Omar Figueroa at info@omarfigueroa.com to schedule a confidential legal consultation.
The attorney responsible for this advertisement is Andrew Kingsdale. Prior results do not guarantee a similar outcome.