Office Of Cannabis Management Releases Final Regulations And Application For NY’s First Retail Cannabis Dispensaries 

July 13, 2022

Today, the Office of Cannabis Management released final regulations and the application for Conditional Adult-Use Retail Dispensary (CAURD) licenses ahead of the Cannabis Control Board’s July 14, 2022, meeting where they will be considered.

CAURD is a key pillar of the New York State Seeding Opportunity Initiative.  

Through the Initiative, New York’s first legal adult-use retail dispensaries will be operated by individuals who have been impacted by the enforcement of the prohibition of cannabis and who have, despite that impact, developed strong business backgrounds.

They will make the first sales of adult-use cannabis in New York with products grown by New York farmers before the end of 2022.  

“These proposals before us are central to the Seeding Opportunity Initiative and its goal of opening New York’s adult-use cannabis market by leading with New York’s farmers and entrepreneurs,” said Tremaine Wright, Chair of the Cannabis Control Board. “I’m thankful to the Office for preparing these regulations and application and look forward to considering them as we work to establish an equitable and inclusive industry.”  

“After our review of more than 600 public comments, the regulations and applications for CAURD licenses are ready for final consideration by the Board as we work to chart a new course for how cannabis markets can be established with equity and inclusivity at the forefront,” said Chris Alexander, Executive Director of the Office of Cannabis Management. “I’m immensely proud of the work my team is doing to craft thoughtful regulations for a new industry. We’re doing this faster than expected, and we’re doing this the right way.”  

In March 2022, the Cannabis Control Board voted to issue proposed regulations for the Conditional Adult-Use Retail Dispensary (CAURD) licensees for public comment.

The public comment period closed on May 31, 2022.

The Office has conducted an assessment of the comments and will be sharing the assessment on its website in the coming days. 

If voted on and approved by the Board on Thursday, the regulations will become effective on August 3, 2022.  

The application for CAURD requires applicants submit materials proving a qualifying cannabis-related offense including supporting details and documentation for the applicant’s qualifying business or nonprofit, financial disclosures for the True Parties of Interest in the applicant, and other basic applicant information. 

The Seeding Opportunity Initiative positions equity entrepreneurs to be the first to make adult-use cannabis sales in New York with products grown by New York farmers.

Under the Initiative, licenses would be awarded for Conditional Adult-Use Retail Dispensaries to equity entrepreneurs who must meet two prongs of eligibility to qualify.

First, they must have a cannabis-related conviction that occurred prior to the passage of the Marijuana Regulation and Tax Act (MRTA) on March 31, 2021, or had a parent, guardian, child, spouse, or dependent with a pre-MRTA cannabis-related conviction in the State of New York.

Second, they must also have experience owning and operating a successful business in the State of New York.

Automatic Patient Registration to be Considered by Cannabis Control Board as Part of Revised Medical Cannabis Regulations  

Today, OCM also released revised medical cannabis draft regulations, which if approved by the Cannabis Control Board at its July 14, 2022, meeting, will be directed to an additional 45-day public comment period.  

After hearing from patients, care providers, and other stakeholders, the OCM made several revisions to the regulations, to be responsive to patient needs, including:   

·       Streamlining the patient registration process to allow for auto-registration, ending separate registration cards for new patients;  

·       Revised packaging, labeling, marketing, and advertising regulations to align with proposed regulations for the adult-use cannabis industry;  

·       Requiring pharmacist supervision to be fully in-person.  

The initial draft of Medical Cannabis Program regulations was directed to a 60-day public comment period by the Cannabis Control Board at a meeting in February, and the comment period closed on  May 9, 2022.  

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