NY to Begin Accepting Conditional Adult-Use Retail Dispensary Licenses

Overview of CAURD

New York’s Office of Cannabis Management begins accepting applications for Conditional Adult-Use Retail Dispensary (CAURD) licenses this Thursday, August 25, 2022. The application window will close on September 26, 2022.

CAURD licensees are the first retail dispensaries to open for legal adult-use cannabis sales in New York. The new licensure will allow justice-involved individuals to establish businesses that will serve as the foundation of the state’s adult-use cannabis market.

Who Is Eligible to Apply for a CAURD?

Qualified applicants can apply for a CAURD license in one of two ways:

  1. Under the qualifying business criteria, where at least 30% of the business is owned by an individual who is justice-involved; meets the qualifying business experience; maintains sole control of the applicant; and has a significant presence in the state.
  2. Under the qualifying nonprofit criteria

For information regarding qualifying business criteria or non-profit criteria, check out our blog here.

What Types of Businesses Are Eligible to Apply for a CAURD License?

Any business—regardless of business structure—can apply for a license. However, if you do not meet the eligibility requirements, you will not be able to apply for CAURD.

What Are the Ownership and Control Requirements?

Eligibility under the qualifying business criteria requires that one justice-involved individual, who owned and controlled at least 10% of a qualifying business, must commit to owning at least 30% of the applicant-business and have sole control over it.

Justice-involved individuals who do not meet the qualifying business experience requirements may still be a part of the applicant ownership group. To do so, the justice-involved individual must own at least 51% of the applicant-business combined.

To be eligible to apply, you must meet the above ownership and control requirements. If selected for licensure, these requirements must be met for the duration of the time that your dispensary holds a CAURD license.

Note: If you are eligible under the qualifying nonprofit criteria, the ownership and control minimums are different.

Frequently Asked Questions About CAURD

What does “control” of a business mean?
There are many ways to establish control over a business. At its core, having control means you have the power to direct, manage, or set policies of a business.

What does it mean to have “significant presence” in New York State?
Significant presence means that the person with sole control and at least 30% ownership of your retail dispensary must live in New York State, or have assets (vehicles, land, etc.), real property (including primary, secondary, or rental homes), a bank account, or some other connection with New York State.

Eligible applicants under the qualifying nonprofit criteria can meet the significant presence requirement by having a principal corporate location in, being organized under the laws of, or having a majority of the board members be residents or physically present in New York State.

If you are unsure if you meet these requirements, please contact Hamilton Clarke, LLP. One of our cannabis attorneys would be happy to speak with you about your circumstances.

Stay tuned for answers to more CAURD FAQs in some of our later blog posts! In the meantime, if you have additional questions about CAURD and your eligibility for licensure, contact Hamilton Clarke, LLP. We can be reached online or at (646) 603-0522.

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