N.Y. Comp. Codes R. & Regs. tit. 9 § 121.2

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

Section 121.2 - Ownership and Sole Control Minimums

(a) An applicant seeking to qualify as a social and economic equity applicant shall submit documents sufficient to demonstrate ownership and sole control by an individual or group of individuals who are from a community disproportionately impacted, members of a minority group, women, service-disabled veterans or distressed farmers as defined in the Cannabis Law and as qualified in section 121.1 of this Part, including, but not limited to, the following:

(1) by-laws;

(2) delegations of authority or resolutions of the Board of Directors, if applicable;

(3) any and all incorporation documents that describe all shares of stock or other securities, statements, agreements or memoranda of understanding issued during the time of incorporation or organization or at any time thereafter that remain in full force and effect at the time of application or in response to a demand from the Office;

(4) quarterly payroll records filed with the New York State Department of Labor, or equivalent agencies outside of New York State to demonstrate the size of the workforce;

(5) comparison of employee and executive compensation;

(6) comparison of executive compensation and shareholder compensation or proceeds; and

(7) any other information requested by the Office for determining ownership and sole control.

(b) If an applicant seeking to qualify as a social and economic equity applicant is unable to provide documentation required in subdivision (a) of this section, the Office may permit the applicant to submit corporate governance policies, to the Office, within thirty (30) days of the filing of their application, to reflect the authority and sole control requirements.

(c) If, at any time after a social and economic equity applicant has been granted a license, the Office determines that the sole control requirement is violated, the Office may institute an action to suspend, cancel, or revoke such license in accordance with Part 133 of this Title, provided the Office provides an opportunity to cure.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 121.2

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