The current New York’s cannabis market is exceptionally growing. Thanks to the recent legalization of adult-use cannabis, aspiring enthusiasts now have a golden chance to build their careers in this rapidly transforming industry. However, the fierce competition & intricate regulations could pose challenges for those seeking to enter the cannabis market. Therefore, before you submit your application, it is important to understand the essential requirements and diligently complete the application process to bag the cannabis license this year.
What are the Adult-Use Cannabis License Requirements?
To qualify for an adult-use cannabis license under Article 4 of the Cannabis Law, each applicant must meet the below-mentioned eligibility criteria:
True Parties of Interest and an applicant must provide needed information in the prescribed manner.
Provide the name, social security number, federal employer identification number, contact details, and ownership percentage of all True Parties of Interest.
To obtain a license for Registered Organization Non-Dispensing (ROND) and Registered Organization Dispensing (ROD), a registered organization must have good standing with the Office and at least have four medical dispensing facilities in New York.
- Applicants must establish a community impact plan as per section 121.4.
- Applicant must complete the workforce or training programs offered by the Office.
Need to provide applicant ownership and financial disclosures.
- Provide a list of all parent companies, subsidiaries, affiliates, predecessors, and successors of the applicants
- The ownership percentage, financial stake, or any other form of interest held in the applicant by the applicant’s actual stakeholders.
- Provide copies of business formation like certificates of authority, certificates of limited partnerships, certificates of incorporation, partnership agreements, articles of sixty organizations, bylaws, charters, and operating agreements.
- Provide personal history, entity history, and additional information like employment details, licensure, and conviction history.
- Provide a list of all parent companies, subsidiaries, affiliates, predecessors, and successors of the applicants
Must have a certificate of authority issued by the New York State Department of Taxation and Finance.
As per the municipality rulemaking, all adult-use retail dispensaries, microbusiness, ROD, or on-site consumption licenses should adhere to the following conditions.
- Retail dispensaries are prohibited on the same road and within 200 ft of the entrance of a building occupied for worship.
- Cannabis facilities are prohibited on the same road and within 500 ft of the entrance of a building occupied for schooling.
- Cannabis facilities are prohibited on the same road and within 500 ft of a structure or its grounds occupied by the public youth facility.
What are the Adult-Use Microbusiness License Requirements?
When you’re applying for an adult-use microbusiness license requirements, you need to fulfill the below requirements.
There are three types of cultivation licenses:
- Indoor canopy – not exceeding 3,500sq ft.
- Outdoor canopy – not exceeding 10,000 sq ft.
- Mixed light canopy – not exceeding 5,000 sq ft.
- Combination canopy – not exceeding outdoor canopy of 5,000 sq ft and mixed-light canopy of 2,500 sq ft.
Engage in the additional activities:
- Processing
- Distribution
- Retail
Applicant must be specific about the type of license he/she wants to acquire from New York like a retail dispensary, distribution, or on-site consumption.
Applicants need to mention the true party of interest in another Cultivator, cooperative, microbusiness ROD, or ROND.
Submit all required documents and information about subsidiaries (If any)
Applicants need to share street names, street numbers, photographs, GPS coordinates, floor plans, and architectural drawings of the secured location.
Need to be specific with business types such as adult-use cultivation, processing, distribution, retail distribution, or microbusiness.
Need to submit control over property proof and documents such as:
- Ownership documents
- Rent/Lease Agreement, along with the landlord details like name and contact information
- List other individuals with interest in the property like partner or investor
- Copy of occupancy certificate and its equivalent for the licensed premises
- Other licenses issued by the federal, state, or local authorities
- Need to specify the co-location situation, (provide the license number if so).
A copy of the labor peace agreement between a bona fide labor organization and the applicant.
Criminal history and legal proceedings for the applicant and his true party of interest.
What are the Social & Economic Equity License Requirements?
MRTA plans to grant 50% of adult-use licenses to social and economic equity applicants which means the residents of disproportionately impacted communities, minority and women-owned businesses, distressed farmers, and service-disabled veteran-owned businesses will be priorities for licensing over others. If you’re interested social and economic equity license, check out the eligibility requirements:
As per the CCB guidelines, an applicant must be a member of a community disproportionately impacted, have proof of residency in the community, and have proof of conviction for a marijuana-related offense.
An individual must have spent a total of 3 years during the first 18 years of their life, or a total of 5 years at any point in their life.
Minority Owned Business
A minority-owned business is a business entity like a sole proprietorship, limited liability company, corporation, or partnership that is at least 51% owned by one or more minority group members.
Minority group members must be:
- United States citizen or permanent resident
- Belongs to Black African racial groups
- Hispanic heritage, Puerto Rican, Dominican, Cuban, Central, or South American ancestry, (irrespective of their racial background)
- Asian and Pacific Islander persons having origins in any of the Far East countries, southeast Asia, the Indian subcontinent, or the Pacific islands
- Peoples of North American origin (Native American or Alaskan)
These people must have proof of real, substantial, and continuing minority ownership in the enterprises. Hence, proof of certification along with the quarterly payroll reports from its inception is required.
Women Owned Business
Must have at least 51% ownership by one or more women who are United States citizens or permanent resident aliens.
Must have proof of real, substantial, and continuing women-owned business. So, proof of certification along with the quarterly payroll reports from its inception is required.
A business in which women owners have and actively use the power to make independent day-to-day decisions for the enterprise.
A business that is authorized for business in the USA and independently owned and operated by women.
A small business.
Minority and Women-Owned Businesses
A business owned by a woman who is a member of a minority group may be categorized as both a minority-owned and women-owned business.
Distressed Farmer
A distressed farmer must meet the small farm classification developed by the Economic Research Service of the United States Department of Agriculture and have filed a schedule F with farm receipts for the last three years.
A distressed farmer also qualifies for an agriculture assessment and meets other qualifications mentioned by the board.
Service-Disabled Veterans
At least 51% are owned by one or more service-disabled veterans.
Must have proof of real, substantial, and continuing women-owned business. So, proof of certification along with the quarterly payroll reports from its inception is required.
A business in which service-disabled veteran owners have and actively use the power to make independent day-to-day decisions for the enterprise.
A business that is authorized for business in the USA and independently owned and operated by service-disabled veterans.
A small business directed by a director but not exceeding three hundred employees. Business is not restricted to federal Small Business Administration standards as outlined in 13 CFR part 121, and certification by the Office of General Services.
How to Get an Extra Edge Over Other Applicants?
To get your application priorities an applicant should be a member of a community disproportionately impacted by the enforcement of cannabis prohibition.
Applicant’s income should be below 80% of the median income.
When applicant is an ex-convict of a cannabis-related offense before the effective date of the licensing process is given priority over other applicants. If the applicant is not a cannabis convict, but had parents, guardians, child, spouse, or dependent, or was a dependent of an individual who, (prior to the effective date of this chapter), was convicted of a cannabis-related offense can also qualify for priority status.
Undoubtedly, New York cannabis market is embarking on a lucrative journey and creating numerous opportunities for cannabis admirers and new retail owners. However, to successfully handle the adult-use licensing process, you need to keep up with the cannabis provisions, eligibility criteria, and social & economic equity regulations. To ensure you follow the right approach, it is recommended to seek help from experts or hire a professional to make the journey bump-free.
