Applying for a New York Cannabis License
The Office of Cannabis Management Cannabis Control Board (CCB) of New York has applications for cannabis adult use licenses. We will examine what we know about the rules and regulations for the business license application process in NY. We base this information on the regulations for Conditional Adult-Use Retail Dispensaries (CAURD).
The primary goal of these regulations is to create a fair and equitable cannabis application that offers business opportunities for those affected by the War on Drugs to participate in the legal cannabis industry. By prioritizing individuals and families with cannabis convictions, New York is fulfilling its promise of social equity through the Marijuana Regulation and Taxation Act (MRTA). New York has expedited the process for cannabis business with the CAURD licenses, and hopefully all license types in the future.
Prospective applicants for the conditional adult-use retail dispensary license should be aware that the application process is highly competitive and rigorous. Successful candidates must carefully prepare for the requirements, which include written agreements and careful consideration of whether to apply as a business or an individual.
This post serves as a helpful guide to the necessary rules for application and requirements to help potential applicants prepare for the stringent process. Overall, the proposed regulations for Conditional Adult-Use Retail Dispensaries by the CCB are an important step towards social equity in the cannabis industry in New York, and successful applicants will have the opportunity to contribute to the newly legalized cannabis markets.
New York Cannabis License Application Requirements
The OCM will receive applications. There will be a $2,000 application and license fee. The payment is non-refundable.
We detail the required information for the application for a NY conditional adult-use retail dispensary license. If an application contains a flaw, the applicant will have thirty days to correct the problem.
This is a list of requirements for a conditional adult-use retail dispensary license application in a state or jurisdiction. It provides the information that the applicant is expected to provide to the Office of Cannabis Management (OCM) in order to obtain the license.
Applicant Ownership and Financial Disclosures
It is important for New York applicants to remain transparent when submitting their New York adult use Cannabis application: full disclosure of current owners, part owners, limited owners, prior owners, and / or any participating investments need to be included in the New York application process. Furthermore, disclosing a complete financial overview including income and expenses must also be included in the New York adult use Cannabis application.
- the percentage of ownership interest, and the applicant’s true parties of interest
- a list of all parent companies and related entities.
- description of any and all ownership changes between the original application and the date of submission
- copies of business formation and organizational documents
- personal histories or an entity history, as applicable, disclosure forms including, but not limited to, a person’s residence, employment, licensure and conviction history
- all proposed or executed contracts, term sheets, agreements, or side letters between the applicant or its true parties of interest of the applicant and a goods and services provider,
- documents relating to the ownership structure of the applicant, showing all holding and parent companies, subsidiaries, and affiliates
- financial documents, including financial statements and tax documents of the applicant for the most recent fiscal year ending prior to the date the application is submitted
- if the applicant was formed within the year preceding the application for licensure, provide financial statements for the period of time the applicant has been in existence and any pro forma financials used for business planning purposes
- an organizational chart indicating the ownership structure of the applicant and all persons who have decision making authority
- a description of any license or authorization in any other state or jurisdiction, currently or previously, to cultivate, process, manufacture, distribute, deliver, or sell cannabis or cannabis products in any form, held by the applicant or any true parties of interest of the applicant, and the following which may include, but not be limited to:
- . a copy of each license or authorizing document verifying licensure in that state or jurisdiction;
- a statement granting permission to contact the appropriate regulatory agency that granted the license or authorization, or to authorize the Office to confirm the information contained in the application is true and accurate at its discretion; and
- if the license or authorization, was ever denied, suspended, cancelled, revoked or otherwise sanctioned, a copy of documentation so indicating, or a statement that the applicant or true party of interest of applicant was so licensed and was never sanctioned.
- details of any administrative proceeding or any governmental agency action in any jurisdiction during the past ten years in which the applicant or any of the true parties of interest of applicant:
- were fined, disciplined, sanctioned, or the equivalent, came to a settlement agreement regarding a potential violation, or had a registration or license cancelled, suspended or revoked;
- managed or served on the board of a business or nonprofit organization that was fined, disciplined, sanctioned, or the equivalent, or had a registration or license cancelled, suspended or revoked
- information relating to a business continuity plan which shall mean a plan, in case the applicant, its owners, or its true parties of interest decide to leave the business; there is a material change in the applicant’s ability to operate the business; or the applicant becomes otherwise unable to operate the business;
- a certificate of status or good standing from the governing state agency of the state of formation, certificate of assumed name, a certificate of authority to do business in New York from the New York Department of State if the applicant is a foreign business, where applicable;
- information regarding any relationship, agreement, or arrangement that may exist between (a) the applicant or true parties of interest and (b) any official or any other individuals with control over the approval of an application, including, but not limited to, employees of the Office and members of the Board;
- whether the applicant or any true party of interest of applicant:
- is out of compliance with the General Obligations Law Section 3-503(2);
- has been disciplined or sanctioned by a state or federal agency; or
- has had any state or federal tax liens against any of their property
- a list of any charitable contributions by the applicant in the last five (5) years
- designation of each portion of the application that the applicant considers to be exempt from disclosure under the New York State Freedom of Information Law including, but limited to certain trade secrets or commercial information
- a copy of the labor peace agreement between the applicant and a bona fide labor organization and an attestation that the applicant understands that the maintenance of such a labor peace agreement shall be an ongoing material condition of the license
- any other additional information requested by the Office
Conclusion for NY Cannabis Applications
If you’re looking for a knowledgeable and experienced lawyer to assist you in the New York cannabis license application process, we can help. Contact us today to schedule a consultation and take the first step towards a successful application.