+ In what states can I open a cannabis business?

While there are now several states where recreational and medical cannabis are legal, we are currently only assisting New York-based businesses in this industry.

+ How do I license my business as a cannabis dispensary?

New York State, through the Office of Cannabis Management is slowly rolling out licenses available for application. The only license application currently open is the Adult-Use Conditional Cultivator License, which authorizes eligible hemp growers to apply for a license to grow cannabis containing over 0.3% THC for the upcoming adult-use market. The Office of Cannabis Management is gearing up to open its next round of licenses, the Conditional Adult-Use Retail Dispensary licenses, otherwise known as the CAURD license.

The CAURD license will specific eligibility requirements, offered to people who have been impacted by a cannabis conviction and have experience owning a business, or to nonprofits providing services to justice involve persons. Please keep in mind this is just one of the many licensing opportunities to come.

For individuals looking to qualify for a CAURD license, eligibility requires you to be "justice involved" and have business experience. To be "justice involved" means that either you, or a close relative (parent, child, spouse), has a marijuana related conviction prior to the enactment of the Marijuana Regulation and Tax Act, before March 31, 2021, and proof of conviction must be provided. The business experience portion requires you to own of have owned at least 10% of a business for which you can show two years of net profits while you held ownership, and you must own at least 51% of the proposed cannabis business.

After ensuring you meet the eligibility criteria, the application itself will require several documents, including proof of conviction, proof of residence at the time of conviction, proof of relation (birth or marriage certificate), business ownership documentation, and financial documentation showing net profits for two years. In addition to the required documentation, there will be a fingerprint submission and a $2,000 nonrefundable application and licensing fee for the cost of processing made payable to the Office of Cannabis Management.

The Office of Cannabis Management projects opening the very first adult-use retail dispensaries by the end of 2022. Do not wait to prepare for this license application if you meet the above qualifications. Our office can help you prepare the necessary documents and information for your application so that this opportunity can be taken as soon as it becomes available. Contact us to discuss licensing your cannabis business. We would be glad to talk to you about your best options and handle the paperwork for you. It’s a great way to start a relationship for the future of your company.

+ What does the Marijuana Regulation and Tax Act (MRTA) allow?

On March 31, 2021, the State of New York enacted the Marijuana Regulation and Tax Act (MRTA), legalizing recreational cannabis use (“adult-use”) in New York. Adults over 21 years of age are authorized to purchase cannabis from licensed dispensaries. The caveat is, there are no currently licensed retail dispensaries in the State of New York. Individuals can also possess up to three ounces of cannabis and up to twenty-four grams of cannabis concentrate.

Soon, individuals will be allowed to cultivate up to six plants for home use (three mature plants and three immature plants). There will be a limit of 12 plants per household. MRTA also expanded the existing state medical cannabis and hemp programs.

MRTA created the Office of Cannabis Management (the “OCM”) established under the Division of Alcohol Beverage Control and headed by a five-member Cannabis Control Board. The OCM will oversee the adult-use, medical, and hemp programs, and it has the sole discretion to license, regulate marketing and labeling, implement a social equity program, inspect and enforce adult-use, medical, and hemp programs, and promulgate all related regulations.

+ What are the licenses offered by the State of New York?

The Marijuana Regulation and Tax Act set forth the different licenses available under the new adult-use cannabis program. Each license has its own set of ownership limitations as prescribed by law. The Office of Cannabis Management will issue said licenses and develop regulations directing when and how businesses can participate in the cannabis industry.

Currently, the only open application is for an Adult-Use Conditional Cultivator License, which authorizes cannabis cultivation outdoors or in a greenhouse for two years from the issuance of the license, as well as allowing licensees to minimally process, manufacture, and distribute cannabis flower products without holding an adult-use processor or distributor license, until June 1, 2023. There is also an Adult-Use Cultivator License not yet available, which authorizes the acquisition, possession, distribution, cultivation, and sale of cannabis from the licensed premises of the adult-use cultivator to a licensed processor.

The next class of license to be open to the public is the Conditional Adult-Use Retail Dispensary licenses, otherwise known as the CAURD license. The CAURD license has specific eligibility requirements, and is offered to people who have been impacted by a cannabis conviction and have experience owning a business, or to nonprofits providing services to "justice involved" persons. This license application is projected to be open soon. Feel free to contact us to see if you are eligible for the CAURD license!

There are many more licensing opportunities that will become available to the public in the future, including adult-use nursery, adult-use processor, adult-use distributor, adult-use cooperative, adult-use microbusiness, adult-use retail dispensary, adult-use on-site consumption, and adult-use delivery licenses. For further information on licenses, please visit cannabis.ny.gov.

Contact us to discuss licensing your new cannabis business. We would be glad to talk to you about your available options and handle the paperwork for you. It’s a great way to start a relationship for the future of your company.

+ Will my business comply with federal law?

While cannabis possession and distribution is still a federal crime under the Controlled Substances Act (the “CSA”), it does not preempt state law allowing and regulating the possession and distribution of cannabis. Although cannabis remains a controlled substance, for now, the Department of Justice largely chooses to remain uninvolved in state cannabis industries, as long as there are no federal interests implicated and there is no interstate distribution.

Although the Department of Justice has operated with a non-involvement policy, the possession, distribution, and sale of non-hemp cannabis and cannabis products is still illegal under federal law, despite the State laws decriminalizing or legalizing cannabis activity. Compliance with state law in no way assures compliance with federal law, and there is a risk that conflicting federal laws may be enforced in the future. No legal advice we give is intended to provide any guidance or assistance in violating federal law.

+ Can you help me start my business, too?

Sure can. Getting a cannabis license is only one piece of the pie to starting and opening your business. The Long Law Firm can help you form a new business, acquire an existing business or anything in between. We can help you decide which type of business entity is best for you, and we can help you with the paperwork involved in getting you up and running as cannabis business. Contact Us for more information!