How To Get a Dispensary License in New York Step By Step. The promised NY Land Cannabis consultant Jesse Bravo will explain the steps. So what's in this Dispensary application? As the New York times reported on March of 2022, the O.C.M. that's the office cannabis management out of New York have reserved the first 100 dispensaries for equity involved applicants. In other words this will apply to a select minority and will be difficult to be one of these people. To understand just look at the regulations in the draft 35 pages for part 116 are for the conditional adult use dispensaries.
Now, so far there doesn't appear to be any limits regarding the number of dispensaries in the New York and from "MRTA" the marijuana regulation and tax act. "MRTA" but they did put in vertical integration limits, so you're going have to pick only one cannabis business license. You can grow it, you can sell it. You just can't do both.
So what is the most important section of the application? For me let's start by understanding what category you're eligible for the application. Therefore we go into 116.4 section justice involved and in there they also talk about what constitutes as a qualifying business. What a qualifying business mean? You have to had a minimum of two years having at least a 10 percent ownership in or control of a business. Then that business that has a net profit for the last two years. There's more involved than justice involved to get a license.
What is applicant control?
It mean the applicants controls a minimum of 51 percent of the cannabis business if justice involved or social equity category is filed. What that means is the business only one person that has sole control and makes the final decisions.
What is justice involved application?
It describes a person who has been arrested in a impacted zone or an economically disadvantaged zone , who is also a long-time resident. These impact zones were disproportionately injured by the drug war. Opening the Dispensary in the right neighborhood is important too. If you understand that 100 applicants because the way they've defined it's gotten generational, even spousal in the definition.
Who is eligible In How To Get a Dispensary License in New York 2022 Step By Step?
You have to demonstrate first, a significant presence in New York State. Anyone convicted of a marijuana related offence prior to when it became enacted, spousal legal guardian, child spouse or dependent. It's very important to understand New York is a conviction state, some other states, it's the arrest. I believe there will only be a small amount of people who'll actually qualify for this category . People apply for their license and you can have a perfect application score, but if you don't hit all those boxes your out. That's why it's important to cover the evaluation on this first. I just did the control minimums.
Eligible applicant justice involved
I want to do the evaluation. A eligible applicant, should be evaluated based on the following criteria as weight determined by the office of the "O.C.M". Were they themselves convicted of the marijuana crime and then relative to these areas. Where did they live at the time of such conviction? You know the second section, of the application 116.2.
Easy Parts Of Application
Fill out your legal name and then the name under which you want to operate or make sales. New York most likely will , allows "DBA" means Doing Business As . Next is your address and date of birth. Where the applicant and each true party of interest of the applicant, so your "LLC" also needs an address and a copy of a valid New York State photo Ids. How To Get a Dispensary License in New York 2022 Step By Step
Next is personal history, disclosure of personal history. Disclosures are sometimes are as easy as checking a the box or their quite long. Submission of fingerprints, common ownership structure of the applicant. This can be done in a cap table or a org chart, describing percentage of ownership held by true party of interest in the application. They define these true party of interests. They find financiers in this list of all parent companies, subs affiliates predecessors, successors. The reason for this attention to detail makes it more difficult for the "MSO" Multi State Operators to sneak in.
New Business Formation
A new "LLC" that qualified for social justice involved the process is streamlined. If you were convicted, then you became a painter and own a painting business and been profitable for the last 2 years. You will get one of the 100 first dispensary licenses. especially if you're arrested in a impacted area.
Starting a new cannabis business you will have major issues with banking. The reason why is, that a Cannabis business isn't Federally approved. As a result you'll have find specialized banks that will process your merchant services. Current chart org chart the OCM will want to know everybody all resumes, their skills, education, experience, and organizational documents. Your LLC , the more people on the cap table and more shareholders the more complex application ( More Money). The regulators will want to see shareholders formation and all ownership changes. That includes history of who's been a partner and all compensation agreements between the applicant and each true party of interest. Also any executed contract term sheet agreement side letters between the applicant true party is an interest.
Financial Information and Fines or Sanctions
Audited financial statements for a startup are much shorter than audited financial statements for a company that has been in business for years. All sources of funding, details of state and federal administration proceedings. You see that a lot very often those are check the box. Ever lost a license?Have you ever been sanctioned? Plead guilty, fined for stolen money,? The OCM wants to know who you are a business risk. How To Get a Dispensary License in New York 2022 Step By Step
Business community plan that is going to be some narrative work products. There's probably going to be some type of regulation about how you are able to pass this on. You can pass it on to either the community or to generational wealth. Then your on to certificate of good status or good standing common applicant of true parties of interest. Same copy of each license or verifying license. Required to have a professional licence if applicable. Compliance has been disciplinary sanctions, They haven't had a lot of compliance narrative. Insurance, that's usually a one-page.
Board Relationships on How To Get a Dispensary License in New York 2022 Step By Step
The regulators are trying to prevent any types of window dressing or sham transactions. I could imagine information regarding compliance. We are going to document and prepare then submit to the OCM that evidences your eligibility. It's going to be a dense application, but it's not at least when it comes to the conditional. So far, it doesn't seem like their asking for a lot of the operational requirements that you need. A conditional process which asks for a lot of structural administrative type of compliance issues. Where they aren't asking for the narrative work product to demonstrate compliance with regulations for how you're going to operate. The OCM makes sure how you're structured and who's getting paid.