Today’s New York State Cannabis Control Board (CCB) Meeting brought forth significant and long waited developments to the state’s cannabis landscape. The CCB authorized the State’s general adult-use regulations which will enable the much-anticipated general adult-use market to initiate its licensing application process, which is scheduled to commence on October 4th. Key takeaways from this development include:
- Retail Opportunities: Prospective retail cannabis operators who did not meet the criteria for the CAURD program will now have the opportunity to apply for a retail license through the general application process. Prior CAURD licensees and applicants can re-apply under the new application for a general license if the injunction prohibited them from opening under the CAURD program. Remember, NY follows a two-part application process, where the first part to initially apply is a light lift in terms of work and fees ($1,000), and the second part is a heavier amount of paperwork and a second larger fee depending on the business type applied for. Please note that OCM will prioritize applications for retail or microbusiness licenses that are made by those applicants with real estate site control.
- Conditional AUCC/AUCP License Conversion: AUCC/AUCP license holders will now have the option to convert their conditional licenses into full licenses within the general application framework.
- New RO Application: The CCB unveiled plans to accept applications for new Registered Organizations, a development designed to facilitate more vertical cannabis operations within the state. The specific date for the commencement of Registered Organization applications is unclear, but is assumed to be October 4th alongside general market applicants.
These updates represent a significant expansion in New York’s cannabis market, for those interested in entering (or re-entering) this evolving industry, it is advised to prepare for the upcoming licensing window and to seek competent counsel to guide you through this complex process.
Please remember to always vet the counsel and consultants you wish to engage with to ensure they have the requisite experience to guide you through this process. Ensure that the experts you are talking to not only have a deep understanding of the NY cannabis regulations, but also can point to a great breadth of experience in legal work surrounding: (a) commercial real estate and locality engagement to make sure you can secure real estate without any bad lease clauses that could kill your business; (b) financial matters to properly facilitate equity and debt investments into your business without predatory language that could cripple your cash flow; (c) corporate governance work to make sure your partnership arrangements do not leave you fighting in a court room over matters that should have been settled from the outset of your venture; (d) experience navigating municipality conversations and approvals; e) entity formation experience if applying entity will be different from an existing entity; and (f) providing evidentiary validation of eligibility for priority categories if applicable.
Feldman Legal Advisors will be hosting seminars to cover what to expect in the general application’s two parts, your buildout, and how to vet the experts you engage with. Stay tuned for more information. Please feel free to reach out to me on LinkedIn, email, or phone with any questions or concerns about the upcoming cannabis market opening.
