New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle B - Division of Alcoholic Beverage Control › Chapter II - Rules of the Office of Cannabis Management › Part 116 - Conditional Adult-Use Retail Dispensary › Section 116.7 - Requirements and Prohibitions for Conditional Adult-Use Retail Dispensary License

Current through Register Vol. 46, No. 28, July 10, 2024
(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.