N.Y. Comp. Codes R. & Regs. tit. 9 § 120.7

Current through Register Vol. 46, No. 36, September 4, 2024

Section 120.7 - Application Eligibility and Evaluation

(a) Eligibility for adult-use cannabis licenses. An applicant for an adult-use cannabis license pursuant to article 4 of the Cannabis Law shall satisfy the following minimum requirements to be eligible for a license:

(1) An applicant shall provide information in a form and manner as prescribed by the Board, which shall demonstrate the eligibility for the license type being sought; and

(2) In order to apply for a ROND or a ROD license, a registered organization shall be in good standing with the Office and have four (4) medical dispensing sites, located in New York State, dispensing to patients and submit the following:

(i) a community impact plan as described in section 121.4 of this Title;

(ii) the plans described in Part 125 of this Title as required by the Board on the application;

(iii) any other information required by the Office.

(b) Applicant Review. An applicant for an adult-use cannabis license shall be reviewed and evaluated in an order and manner determined by the Board, based on provisional, social and economic equity status or any additional criteria to be set by the Board at the time of the opening of the application period. Such criteria may include, but is not limited to:

(1) the selection criteria detailed in section 64 of the Cannabis Law;

(2) the applicant's community impact plan, as defined in section 121.4 of this Title, highlighting the applicant's proposed strategy for community engagement;

(3) submissions of any plans pursuant to Part 125 of this Title required by the Board, demonstrating planned compliance with standards and regulations, and highlighting technologies, techniques, and strategies to protect the surrounding environment, limit carbon footprint, and leverage sustainable energy sources;

(4) completion of any workforce or training programs offered by the Office and completed by the applicant;

(5) the applicant's history in creating or maintaining an equitable workplace environment through the review of previous business and management practices, including, but not limited to:

(i) wages, including, but not limited to:

(a) starting hourly rates for hourly workers;

(b) starting salary for salaried workers; and

(c) average annual wage percent increases in the last three (3) years by classification of employee;

(ii) benefits, including, but not limited to:

(a) number of hourly employees with 100% employer paid medical premiums;

(b) number of hourly employees receiving Family, Single +1 coverage;

(c) number of hourly employees with employee co-contributions for medical coverage; or

(d) employer paid retirement benefits such as 401(k) match or direct contributions; (iii) training, including, but not limited to, health and safety training;

(iv) retention rates; and

(v) diversity in hiring and promotion.

(6) history in creating or delivering culturally and linguistically competent services to diverse and underserved populations, including, but not limited to:

(i) training programs;

(ii) multilingual services;

(iii) published materials and curricula;

(iv) community outreach;

(v) administrative and organizational accommodations; and

(vi) any other criteria deemed necessary by the Office;

(7) serving in community leadership roles within established and licensed businesses, nonprofits, religious organizations, educational institutions, philanthropic organizations, community clubs, neighborhood associations, cooperative development and bona fide labor organization and any other qualifications deemed sufficient by the Office;

(8) supporting evidence that demonstrates the applicant's ability, capacity, and any initial steps taken to meet the Board's standards for the plans in paragraphs (2) and (3) of this subdivision;

(9) the relative performance of applicants based on such criteria;

(10) for applications from entities with twenty-five (25) or more employees, the Office shall give consideration to whether applicants have entered into an agreement with a statewide or local bona-fide building and construction trades organization for construction work on its licensed facilities;

(11) the applicant's qualifications for provisional licensing status; and

(12) any other information requested by the Office.

(c) Approval. The Board may approve licenses using mechanisms, including, but not limited to, scoring, compliance-based evaluation, qualified lottery, randomized ordering, or any combination thereof.

(1) The Board will determine the eligibility criteria for each license type, including provisional licenses.

(2) The Board may prioritize application submission, review, selection and issuance by region, license type, provisional status, social and economic equity status, or any other criteria the Board may determine.

(3) Application submission, review, selection, and issuance may be prioritized by groupings consistent with section 87 of the Cannabis Law, such as:

(i) A group consisting only of applications that demonstrate the applicants are eligible for extra priority as defined in section 121.1 of this Title provided the applicant is seeking to qualify as a social and economic equity applicant;

(ii) A group consisting only of applications that meet the definition of distressed farmer as described in subdivision (h) of section 121.1 of this Title;

(iii) A group consisting only of applications that meet the definition of service-disabled veteran as described in subdivision (i) of section 121.1 of this Title;

(iv) A group consisting only of applications that demonstrate the applicant is from a community disproportionately impacted by the enforcement of cannabis prohibition as described in subdivision (d) of section 121.1 of this Title; and

(v) A group consisting of all other applications not included in the categories in subparagraphs (i) through (iv) of this paragraph.

(4) Applications may be considered in multiple groups pursuant to their eligibility for such groups.

(d) An applicant shall submit the required license fee pursuant to section 120.4 of this Part upon Board approval. Those who receive a provisional license shall only pay the license fee upon licensure.

(e) If an applicant is approved by the Board, the applicant shall be subsequently issued a provisional license or license. Such provisional license or license shall be subject to conditions specified by the Board.

(f) If a provisional licensee fails to satisfy the conditions determined by the Board, the application will be deemed incomplete and a license to operate will not be issued.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 120.7

Adopted New York State Register September 27, 2023/Volume XLV, Issue 39, eff. 9/27/2023