Conditional Adult Use Retail Dispensary Licenses

Conditional Adult Use Retail Dispensary Licenses

by Lateef Bell

August 5, 2022

The conditional adult-use retail dispensary license (“CAURD”) application goes live beginning August 25, 2022 and lasts for 30 days. In order to apply for the CAURD license, applicants must be “Justice Involved” which is defined as having been convicted of a cannabis-related charge or has/had a parent, legal guardian, child, spouse, or dependent of an individual convicted of a marijuana-related offense. 

As a part of the Seeding Opportunity Initiative (“SOI”) 150-200 applicants for conditional adult-use retail dispensary licenses will be provided with completely built out cannabis retail stores, located in the areas most affected by marijuana-prohibition. These built-out stores are expected to become available mid-2023. This is a real opportunity for many to take advantage of the rare potential for reparations.  

There are various requirements applicants will have meet to be considered for CAURD licenses.  51% of the business must be controlled by individuals who are Justice Involved. This means that if the applicant company has two owners, one of which is Justice Involved, the Justice Involved owner must own 51% of the company and is required to submit proof a marijuana-related arrest. Further, applicants must submit proof of running a successful business for a two-year period, which may include but is not limited to submitting tax documents for a business where the CAURD applicant was in charge of its operations, administrative experience, or ownership of a non-profit organization focused on community development. CAURD applicants are also required to provide proof of a consistent New York presence. 

CAURD applicants also have to meet other requirements. Two concerns of the Marihuana Regulation and Taxation Act is ensuring the applicants remain in control of their cannabis business and only bring on legitimate investors. For example, CAURD applicants will have to demonstrate any investment or loan made to support their businesses will not subject them to potential blackmail, bribery, or other potential threats from people seeking to take advantage of their financial foothold in the cannabis industry. This can be done by completing due diligence on potential investors in their marihuana adult use retail dispensary business prior to bringing them on.   

It is highly recommended that all CAURD applicants begin collecting documents that they will need to submit now so their application will not be delayed. Part 116 of the CAURD Regulations outlines the requirements, it is highly recommended that you thoroughly review the regulations, here. 

Those who don’t receive a CAURD license or do not meet the CAURD application requirements will have another chance to participate in the emerging cannabis industry as we anticipate additional guidance will be released shortly.