The New York City Marijuana Regulation and Taxation Act (the Act) not only legalized the possession and recreational use of cannabis for persons over 21 years of age, but also signaled to the entire US that New York City was going to focus a lot of its time and resources on “involved in justice” persons wishing to start a cannabis business. Since the law was signed into law, it’s been clear that New York is serious about making sure its cannabis industry isn’t just for big business; the state intends to flood the industry with candidates from underrepresented communities or areas that have been negatively affected by the war on drugs. One example of this is the Cannabis Control Board’s (CCB) Adult Conditional Retail Use (CCB) rules, which were approved on July 14 and entered into the public register on August 3.
The New York City Office of Cannabis Management (OCM), the organization responsible for managing individual participation in the cannabis industry, said the first 100-200 Conditional Adult Retail Licenses (Licenses) will be issued to people who have been negatively affected war on drugs and cannabis-related convictions. The application period for the Licenses began on 25 August and ends on 26 September. The layout of the License Application Form can be found here.
The rules explain who is eligible for this first round of licenses. In addition to the fact that they live, are present, or have a company seat in New York, the Rules provide that applicants must demonstrate that they are “involved in justice.” This means that until March 31, 2021 they:
- Were convicted of a marijuana-related offense in New York (i.e. possession, sale, loitering while in possession);
- If a parent, legal guardian, child, spouse or dependent has been convicted of a marijuana offense; or
- Were a dependent of a man convicted of a marijuana-related crime.
To be eligible for licenses, applicants “involved in justice” must also provide evidence that for a minimum of two years they have owned a 10% interest in any business that has operated at a profit for at least two years of operation. . In other words, even if the applicant is “involved in justice”, they will not be issued a license if they cannot demonstrate a history of being a successful business owner.
If the applicant is a non-profit organization, it must meet certain “justice-related” conditions, such as having officers or directors “involved in justice”, intentionally serving communities affected by the war on drugs, and creating jobs for justice. – persons involved. Businesses must also meet certain ownership requirements: persons “involved in justice” must own the majority of the business, and one person “involved in justice” must own at least 30% of the business.
Bond’s cannabis lawyers are experienced in advising businesses on regulatory and licensing issues in the cannabis industry. With cannabis retail sales due to start in late 2022 or early 2023, now is the time to start thinking about applying for a license.