New York will double the number of cannabis retailer licenses

Regulators in New York announced this week that the state would double the number of cannabis retailer licenses, bringing the total number of conditional retail licenses for adult use (CAURD) for recreational marijuana dispensaries to 300 instead of what was originally planned 150 would rise. The new licenses, selected from an existing pool of qualified business applicants, will be issued proportionately across New York, doubling the number of licenses in each of the state’s 14 regions.

In a statement released Tuesday, the Cannabis Control Board and Office of Cannabis Management announced that the increase in the number of licenses “will continue to advance New York State’s Seeding Opportunity Initiative, which will see the operation of the state’s first legal retail dispensaries for the… Adult use by those most affected by cannabis prohibition or by non-profit organizations whose services include support for ex-prisoners.”

“With this expansion, more entrepreneurs can participate in the first wave of this industry and capitalize on the growing demand for cannabis products,” said Tremaine Wright, Chair of the Cannabis Control Board. “As more companies enter this market, innovation and competition will increase, resulting in better-quality experiences for consumers. The expansion of the New York cannabis market will benefit everyone involved in this exciting industry.”

The New York Office of Cannabis Management (OCM) received approximately 900 applications for CAURD licenses from prospective business owners. To date, the Cannabis Control Board has issued 66 provisional CAURD licenses, with the first store opening at the end of December. In April, the OCM will make recommendations to the board on most of the remaining applications in areas of the state unaffected by a November court order preventing the agency from issuing retail pharmacy licenses in five regions of the state.

$200 million fund to support New York licensees

The CAURD program, which provides licenses for those working in the judiciary, initially allowed up to 150 companies to obtain a provisional CAURD license. These efforts have been augmented by the creation of the New York State Social Equity Cannabis Fund, a $200 million public-private partnership providing refurbished, move-in ready retail locations to the 150 licensees. The OCM described the fund as a nationally unique measure designed to help reduce the barriers faced by independent entrepreneurs in raising capital to start a business in the cannabis industry.

“Doubling the available adult conditional issuance licenses will help fuel the growth of the New York City cannabis industry,” said Damian Fagon, OCM’s chief equity officer. “More stores mean more locations for New York City farmers to sell their crops, more convenience for New York City customers to make the right choices and shop for safer and legal produce, and twice the opportunities for New Yorkers affected by excessive policing during cannabis prohibition. ”

In December, the OCM announced that CAURD licensees will also be permitted to secure their own business locations without seeking assistance from the Social Justice Fund, potentially freeing up resources for some of the newly approved CAURD licenses announced today. The first 150 approved CAURD licensees will receive priority resources if they choose a fund-supported location. Applicants selected for the additional 150 CAURD licenses announced this week will have access to all remaining funds.

“New York is doing something special when it comes to launching our cannabis industry, and now we’re doubling the impact of our adult conditional use program at retail,” said Chris Alexander, executive director of the Office of Cannabis Management. “It has been really exciting to see the positive energy surrounding our efforts to support entrepreneurs who have previously suffered at the hands of New York State. We will continue to create real opportunities for qualified applicants who have been excluded from legal cannabis markets across the country.”

Michelle Bodian, a partner at cannabis and psychedelics law firm Vicente LLP, said Thursday’s announcement presents new opportunities for entrepreneurs looking to enter New York’s cannabis industry.

“Doubling the number of CAURD licenses available drastically changes the calculus for hopeful CAURD applicants,” Bodian wrote in an email to High Times. “As only a limited number of licenses have been granted to date, this expansion provides a tremendous first-mover advantage for the remaining approximately 230 licenses to be granted.”