N.Y. Comp. Codes R. & Regs. tit. 9 § 116.7

Current through Register Vol. 46, No. 51, December 18, 2024

Section 116.7 - Requirements and Prohibitions for Conditional Adult-Use Retail Dispensary License

(a) A conditional adult-use retail dispensary license shall have the same authorizations and conditions as an adult-use retail dispensary as defined by the Cannabis Law and regulations promulgated by the Board;

(b) Should an applicant be awarded a conditional adult-use retail dispensary license, provisions, including, but not limited to, the attestation in the application, become a mandatory condition of the license; and

(c) The following conditions shall also apply to the license:

(1) each licensee and true party of interest shall be at least 21 years of age;

(2) at least 51% or more of the licensee shall be owned, in the aggregate, by:

(i) at least one individual that satisfies the requirements for an eligible applicant set forth in sections 116.4(a)(1) and 116.4(a)(2), or entity that satisfies the requirements for an eligible applicant set forth in sections 116.4(a)(1) and 116.4(a)(3) of this Part; and

(i) any other additional individuals, if any, who are justice involved; and

(3) at least one individual that satisfies the requirements for an eligible applicant set forth in sections 116.4(a)(1) and 116.4(a)(2) or entity that satisfies the requirements for an eligible applicant set forth in sections 116.4(a)(1) and 116.4(a)(3) of this Part shall own at least 30% of the licensee and such individual or entity shall have sole control of the licensee;

(4) the percentage of ownership in the licensee of the individual or entity set forth in sections 116.4(a)(2) and 116.4(a)(3) of this Part shall be proportionate to their interest in the capital, assets, and profits and losses of the licensee;

(5) during the conditional period, the licensee shall maintain the minimum ownership and control requirements in the licensee as set forth in sections 116.7(c)(2), 116.7(c)(3) and 116.7(c)(4) of this Part;

(6) the licensee shall enter into and comply with all terms and conditions of any agreement with any fund, as defined by this Part, that has been approved by the Board and made available by the office, including, but not limited to, accepting a dispensary location identified by the fund or office, any loan agreement with such fund, any lease or sublease agreement with the State of New York or its agents, or any other such agreements into which the licensee enters;

(7) the licensee shall have entered into a labor peace agreement with a bona fide labor organization and each party to the agreement has signed such agreement prior to the license being granted;

(8) the licensee shall commence operations no later than 12 months from the date the license is granted, or as otherwise determined by the Office;

(9) the applicant is prohibited from leasing, assigning, or subcontracting, in whole or in part, the leased premises associated with the fund, as defined by this Part;

(10) A licensee or any true party of interest of the licensee shall not have a direct or indirect financial or controlling interest in more than three conditional adult-use retail dispensary licenses issued under this Part until the expiration of the conditional period;

(11) A licensee or any true party of interest of the licensee shall not hold an adult-use cultivation, conditional adult-use cultivator, processor, microbusiness, cooperative or distributor license pursuant to article four of the Cannabis Law or be registered as a registered organization pursuant to article three of the Cannabis Law, except for such organizations licensed pursuant to sections 68-a and 68-b of this article;

(12) A licensee or any true party of interest of the licensee shall not be interested, directly or indirectly, in any cultivator, processor, distributor, or microbusiness operator licensed pursuant to this article by stock ownership, interlocking directors, mortgage, or lien on any personal or real property or by any other means. Any lien, mortgage or other interest or estate, however, now held by such licensee or true party of interest on or in the personal or real property of such manufacturer or distributor, which mortgage, lien, interest or estate was acquired on or before December thirty-first, two thousand nineteen, shall not be included within the provisions of this section; provided, however, the burden of establishing the time of the accrual of the interest comprehended by this section shall be upon the person who claims to be entitled to the protection and exemption afforded hereby;

(13) the licensee shall comply with any other requirements as may be promulgated by the Office; and

(14) after the conditional period, to continue to conduct the activities licensed under this Part, a licensee must apply to transition to an adult-use retail dispensary license approved by the Board.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 116.7

Adopted New York State Register August 3, 2022/Volume XLIV, Issue 31, eff. 8/3/2022