A. 7666 2
2. The state cannabis advisory board shall consist of [thirteen]
SEVENTEEN voting appointed members, along with a representative from the
department of environmental conservation, the department of agriculture
and markets, the office of children and family services, the department
of labor, the department of health, the division of housing and communi-
ty renewal, the office of addiction services and supports, and the
department of education, serving as non-voting ex-officio members. The
governor shall have [seven] ELEVEN appointments, the temporary president
of the senate and the speaker of the assembly shall each have three
appointments to the board. The members shall be appointed to each serve
three year terms and in the event of a vacancy, the vacancy shall be
filled in the manner of the original appointment for the remainder of
the term. The appointed members and representatives shall receive no
compensation for their services but shall be allowed their actual and
necessary expenses incurred in the performance of their duties as board
members.
3. Advisory board members shall have statewide geographic represen-
tation that is balanced and diverse in its composition. Appointed
members shall have an expertise in public and behavioral health,
substance use disorder treatment, effective rehabilitative treatment for
adults and juveniles, homelessness and housing, economic development,
environmental conservation, job training and placement, criminal
justice, and drug policy. Further, the advisory board shall include
residents, ONE RETAILER, ONE CERTIFIED PATIENT, ONE SERVICE DISABLED
VETERAN, AND ONE SUPPLY TIER LICENSEE from communities most impacted by
cannabis prohibition, people with prior drug convictions, the formerly
incarcerated, and representatives from the farming industry, cannabis
industry, and organizations serving communities impacted by past federal
and state drug policies.
§ 4. Paragraph (c) of subdivision 3 of section 99-ii of the state
finance law, as added by chapter 92 of the laws of 2021, is amended to
read as follows:
(c) Actual and necessary costs incurred by the office of cannabis
management and the cannabis control board, and the urban development
corporation, related to the administration of incubators and other
assistance to qualified social and economic equity applicants including
the administration, capitalization, and provision of low and zero inter-
est loans to such applicants [pursuant to], INCLUDING THE CONDITIONAL
ADULT-USE RETAIL DISPENSARY LICENSEES. THE OFFICE OF CANNABIS MANAGEMENT
SHALL ADMINISTER THESES RESOURCES IN ACCORDANCE WITH THE SOCIAL EQUITY
AND ECONOMIC PLAN MANDATED PURSUANT TO ARTICLE FOUR OF THE CANNABIS LAW
AND IN ACCORDANCE WITH section sixteen-ee of the urban development
corporation act. Such costs shall be paid out of revenues received,
including, but not limited to, from special one-time fees paid by regis-
tered organizations pursuant to section sixty-three of the cannabis law.
§ 5. Section 39 of the cannabis law is amended to read as follows:
§ 39. Registered organizations and adult-use cannabis. The board shall
[have the authority to] grant [some or all of the] registered organiza-
tions [registered with the department of health and] currently regis-
tered and in good standing with the office, the ability to obtain
adult-use cannabis licenses pursuant to article four of this chapter AND
subject to any [fees, rules or conditions] REGULATION prescribed by the
board [in regulation].
§ 6. Subdivision 1-a of section 63 of the cannabis law is amended to
read as follows:
A. 7666 3
1-a. The [board shall also have the authority to assess a registered
organization with a] one-time special licensing fee for a registered
organization adult-use cultivator processor, distributor retail dispen-
sary [license. Such fee shall be assessed at an amount to adequately]
LICENSED PURSUANT TO SECTION SIXTY-EIGHT-A OF THIS ARTICLE, SHALL BE
TWENTY MILLION DOLLARS, AN AMOUNT TO BE USED EXCLUSIVELY TO fund social
and economic equity and incubator assistance pursuant to this article
and paragraph (c) of subdivision three of section ninety-nine-ii of the
state finance law. SUCH FEE SHALL BE PAYABLE IN FIVE MILLION DOLLAR
INSTALLMENTS, THE FIRST OF WHICH UPON LICENSURE, AND THEREAFTER WITHIN
THIRTY DAYS OF EACH ONE HUNDRED MILLION DOLLARS IN REVENUE GENERATED BY
SUCH LICENSEE UNTIL PAID IN FULL, OR SUCH OBLIGATION EXPIRES ON DECEMBER
THIRTY-FIRST, TWO THOUSAND THIRTY, WHICHEVER OCCURS FIRST. Provided,
however, that the board shall not allow registered organizations to
dispense adult-use cannabis from more than three of their medical canna-
bis dispensing locations. [The timing and manner in which registered
organizations may be granted such authority shall be determined by the
board in regulation.] AN ELIGIBLE REGISTERED ORGANIZATION SHALL BE
AUTHORIZED AS A REGISTERED ORGANIZATION ADULT-USE CULTIVATOR PROCESSOR
DISTRIBUTOR RETAIL DISPENSARY PURSUANT TO SECTION SIXTY-EIGHT-A OF THIS
ARTICLE UPON APPROVAL OF AN APPLICATION TO THE OFFICE THAT MUST BE
AVAILABLE TO SUCH REGISTERED ORGANIZATIONS NO LATER THAN AUGUST FIRST,
TWO THOUSAND TWENTY-THREE AND REMAIN AVAILABLE THEREAFTER. THE OFFICE
MUST APPROVE OR DENY SUCH APPLICATION WITHIN THIRTY DAYS OF ITS
SUBMISSION OR IT SHALL BE DEEMED APPROVED. A REGISTERED ORGANIZATION
ADULT-USE CULTIVATOR PROCESSOR DISTRIBUTOR RETAIL DISPENSARY LICENSEE
SHALL BE AUTHORIZED TO CULTIVATE, PROCESS, AND DISTRIBUTE IN THE ADULT-
USE CANNABIS MARKET, PROVIDED HOWEVER, THAT EACH LICENSEE'S FIRST CO-LO-
CATED DISPENSARY SHALL NOT OFFER ADULT-USE CANNABIS FOR RETAIL SALE
UNTIL OR AFTER DECEMBER TWENTY-NINTH, TWO THOUSAND TWENTY-THREE; THE
SECOND CO-LOCATED DISPENSARY SHALL NOT OFFER ADULT-USE CANNABIS FOR
RETAIL SALE UNTIL OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR; AND
THE THIRD CO-LOCATED DISPENSARY SHALL NOT OFFER ADULT-USE CANNABIS FOR
RETAIL SALE UNTIL OR AFTER APRIL FIRST, TWO THOUSAND TWENTY-FOUR. THESE
LICENSEES MUST SUBMIT A PLAN TO THE OFFICE DEMONSTRATING THEIR COMMIT-
MENT TO DIVERSIFYING THE CO-LOCATED DISPENSARY SHELF SPACE FOR ADULT-USE
WITH CANNABIS PRODUCTS FROM ADULT-USE CULTIVATORS AND PROCESSORS
LICENSED PURSUANT TO SECTIONS SIXTY-EIGHT, SIXTY-EIGHT-B, SIXTY-EIGHT-C,
SIXTY-NINE, SIXTY-NINE-A, SEVENTY, AND SEVENTY-THREE OF THIS ARTICLE.
§ 7. Subdivisions 3 and 6 of section 68-c of the cannabis law, as
added by chapter 18 of the laws of 2022, are amended and two new subdi-
visions 16 and 17 are added to read as follows:
3. A conditional adult-use cultivator license shall authorize the
cultivation of cannabis outdoors or in a greenhouse OR AQUAPONICS FACIL-
ITY with no more than twenty artificial lights unless otherwise author-
ized by the office. A conditional adult-use cultivator licensee may
cultivate up to forty-three thousand five hundred sixty square feet of
flowering canopy outdoors or twenty-five thousand square feet of flower-
ing canopy in a greenhouse OR AQUAPONICS FACILITY. A cultivator may
cultivate both outdoors and in a greenhouse OR AQUAPONICS FACILITY
provided the flowering canopy in a greenhouse OR AQUAPONICS FACILITY is
less than twenty-thousand square feet and the total flowering canopy is
equal to or less than thirty-thousand square feet.
6. A conditional adult-use cultivator licensee shall have the tempo-
rary authority to minimally process and distribute cannabis products,
provided that such final products shall be in the form of cannabis flow-
A. 7666 4
er, without holding an adult-use processor or distributor license estab-
lished pursuant to sections sixty-nine and seventy-one of this article;
provided that the licensee complies with all requirements for the proc-
essing and distribution of cannabis products as set out by the board in
regulations or in the terms and conditions of the conditional license.
Such authority to minimally process and distribute cannabis products
expires on June first, two thousand [twenty-three] TWENTY-FOUR. After
June first, two thousand [twenty-three] TWENTY-FOUR, any conditional
adult-use cultivator seeking to process and distribute cannabis products
shall be required to apply for and receive a processor and distributor
license to conduct this activity.
16. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, A CONDITIONAL
ADULT-USE CULTIVATOR OR PROCESSOR LICENSEE SHALL BE AUTHORIZED TO SELL
TESTED, PACKAGED, AND SEALED CANNABIS PRODUCTS TO REGISTERED ORGANIZA-
TIONS FOR RETAIL SALE AT UP TO THREE OF SUCH REGISTERED ORGANIZATIONS'
EXISTING MEDICAL CANNABIS DISPENSING FACILITIES UNTIL JUNE FIRST, TWO
THOUSAND TWENTY-FOUR, PROVIDED HOWEVER THAT THE CONDITIONAL CULTIVATOR
OR PROCESSOR LICENSEES SHALL PRIORITIZE WHOLESALING TO CONDITIONAL
ADULT-USE RETAIL DISPENSARIES. A REGISTERED ORGANIZATION SELLING CONDI-
TIONALLY GROWN AND PROCESSED CANNABIS PRODUCTS AT ANY OF ITS CANNABIS
DISPENSING FACILITIES SHALL PAY THREE PERCENT OF ANY SUCH SALES THROUGH
JUNE FIRST, TWO THOUSAND TWENTY-FOUR, TO THE STATE, WITH TWO-THIRDS OF
SUCH FUNDS USED TOWARD GRANTS AUTHORIZED PURSUANT TO PARAGRAPHS (C) AND
(D) OF SUBDIVISION THREE OF SECTION NINETY-NINE-II OF THE STATE FINANCE
LAW TO OFFSET TAX OBLIGATIONS OF THE CONDITIONAL ADULT-USE RETAIL
DISPENSARY LICENSEES AND THE REMAINING ONE-THIRD OF SUCH FUNDS USED AT
THE DISCRETION OF THE OFFICE IN IMPLEMENTING SOCIAL AND ECONOMIC EQUITY
PROGRAMS. SUCH PAYMENTS BY THE REGISTERED ORGANIZATIONS SHALL ACCOUNT TO
THE SPECIAL ONE TIME LICENSING FEE ASSESSED PURSUANT TO SECTION SIXTY-
THREE OF THIS ARTICLE.
17. THE OFFICE IS AUTHORIZED TO CREATE A LOAN PROGRAM FOR CONDITIONAL
ADULT-USE CULTIVATORS FOR THE PURPOSE OF HAVING ANY CANNABIS GROWN UNDER
A CONDITIONAL ADULT-USE CULTIVATOR LICENSE IN TWO THOUSAND TWENTY-TWO
PROCESSED INTO SHELF STABLE FORMATS. THE END-PRODUCT OF SUCH PROCESSING
SHALL BE RETURNED TO THE LICENSEE FOR FUTURE USE.
§ 8. Subdivision 6 of section 69-a of the cannabis law, as added by
chapter 18 of the laws of 2022, is amended to read as follows:
6. A conditional adult-use processor licensee shall have the authority
to distribute cannabis products without holding an adult-use distributor
license established pursuant to section seventy-one of this article
until June first, two thousand [twenty-three] TWENTY-FOUR, provided that
the licensee complies with all requirements for the distribution of
cannabis products as set out by the office. After June first, two thou-
sand [twenty-three] TWENTY-FOUR, any conditional processor seeking to
distribute cannabis products shall be required to apply for and receive
a distributor license to conduct this activity.
§ 9. Subdivision 6 of section 72 of the cannabis law is amended to
read as follows:
6. No cannabis retail licensee shall locate a storefront within five
hundred feet of a school grounds as such term is defined in the educa-
tion law or within two hundred feet of a house of worship. THE BOARD
AND/OR OFFICE SHALL NOT ESTABLISH ADDITIONAL SETBACK REQUIREMENTS.
§ 10. The cannabis law is amended by adding a new section 72-a to read
as follows:
A. 7666 5
§ 72-A. CONDITIONAL ADULT-USE RETAIL DISPENSARY LICENSE. 1. THE
FOLLOWING MINIMUM REQUIREMENTS MUST BE MET TO BECOME AN ELIGIBLE APPLI-
CANT FOR THIS LICENSE:
(A) AN APPLICANT MUST DEMONSTRATE:
(I) A SIGNIFICANT PRESENCE IN NEW YORK STATE, EITHER INDIVIDUALLY OR
BY HAVING A PRINCIPAL CORPORATE LOCATION IN THE STATE;
(II) IT IS INCORPORATED OR OTHERWISE ORGANIZED UNDER THE LAWS OF NEW
YORK STATE; OR
(III) A MAJORITY OF THE OWNERSHIP OF THE APPLICANT ARE RESIDENTS OF
NEW YORK STATE BY BEING PHYSICALLY PRESENT IN THE STATE NO LESS THAN ONE
HUNDRED EIGHTY CALENDAR DAYS DURING THE CURRENT YEAR OR FIVE HUNDRED
FORTY CALENDAR DAYS OVER THE COURSE OF THREE YEARS;
(B) IF THE APPLICANT IS AN INDIVIDUAL, OR AN ENTITY WITH ONE OR MORE
INDIVIDUALS, AT LEAST ONE INDIVIDUAL MUST:
(I) BE JUSTICE INVOLVED, WHICH MEANS AN INDIVIDUAL THAT:
(A) WAS CONVICTED OF A MARIHUANA-RELATED OFFENSE IN NEW YORK STATE
PRIOR TO MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-ONE;
(B) HAD A PARENT, LEGAL GUARDIAN, CHILD, SPOUSE, OR DEPENDENT WHO WAS
CONVICTED OF A MARIHUANA-RELATED OFFENSE IN NEW YORK STATE PRIOR TO
MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-ONE; OR
(C) WAS A DEPENDENT OF AN INDIVIDUAL WHO WAS CONVICTED OF A MARIHUA-
NA-RELATED OFFENSE IN NEW YORK STATE PRIOR TO MARCH THIRTY-FIRST, TWO
THOUSAND TWENTY-ONE; AND
(II) PROVIDE EVIDENCE OF THE PRIMARY RESIDENCE OF THE JUSTICE INVOLVED
INDIVIDUAL AT THE TIME OF SUCH INDIVIDUAL'S ARREST OR CONVICTION; AND
(III) HOLD OR HAVE HELD, FOR A MINIMUM OF TWO YEARS, AT LEAST TEN
PERCENT OWNERSHIP INTEREST IN, AND CONTROL OF, A QUALIFYING BUSINESS,
WHICH MEANS A BUSINESS THAT HAD NET PROFIT FOR AT LEAST TWO OF THE YEARS
THE BUSINESS WAS IN OPERATION; OR
(C) IF THE APPLICANT IS A NONPROFIT ORGANIZATION, OR WHOLLY OWNED AND
CONTROLLED BY ONE, THE NONPROFIT ORGANIZATION MUST:
(I) BE RECOGNIZED AS AN ENTITY PURSUANT TO SECTION 501(C)(3) OF THE
INTERNAL REVENUE CODE;
(II) INTENTIONALLY SERVE JUSTICE INVOLVED INDIVIDUALS AND COMMUNITIES
WITH HISTORICALLY HIGH RATES OF ARREST, CONVICTION, INCARCERATION OR
OTHER INDICATORS OF LAW ENFORCEMENT ACTIVITY FOR MARIHUANA-RELATED
OFFENSES;
(III) OPERATE AND MANAGE A SOCIAL ENTERPRISE THAT HAD AT LEAST TWO
YEARS OF POSITIVE NET ASSETS OR PROFIT AS EVIDENCED IN THE ORGANIZA-
TION'S TAX RETURNS;
(IV) HAVE A HISTORY OF CREATING VOCATIONAL OPPORTUNITY FOR JUSTICE
INVOLVED INDIVIDUALS;
(V) HAVE A JUSTICE INVOLVED INDIVIDUAL OR INDIVIDUALS ON ITS BOARD OR
AS OFFICERS; AND
(VI) HAVE AT LEAST FIVE FULL-TIME EMPLOYEES.
2. AT LEAST FIFTY-ONE PERCENT OR MORE OF THE APPLICANT SHALL BE OWNED,
IN THE AGGREGATE, BY:
(A) AT LEAST ONE INDIVIDUAL THAT SATISFIES THE REQUIREMENTS FOR AN
ELIGIBLE APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (B) OF SUBDIVISION
ONE OF THIS SECTION OR AN ENTITY THAT SATISFIES THE REQUIREMENTS FOR AN
ELIGIBLE APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (C) OF SUBDIVI-
SION ONE OF THIS SECTION; AND
(B) ANY OTHER ADDITIONAL INDIVIDUALS, IF ANY, WHO ARE JUSTICE
INVOLVED; AND
(C) AT LEAST ONE INDIVIDUAL THAT SATISFIES THE REQUIREMENTS FOR AN
ELIGIBLE APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (B) OF SUBDIVI-
A. 7666 6
SION ONE OF THIS SECTION OR AN ENTITY THAT SATISFIES THE REQUIREMENTS
FOR AN ELIGIBLE APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (C) OF
SUBDIVISION ONE OF THIS SECTION SHALL OWN AT LEAST THIRTY PERCENT OF THE
APPLICANT AND SUCH INDIVIDUAL OR ENTITY SHALL HAVE SOLE CONTROL OF THE
APPLICANT OR LICENSEE.
3. AN ELIGIBLE APPLICANT SHALL BE EVALUATED BASED ON ANY OF THE
FOLLOWING CRITERIA WHICH SHALL BE WEIGHTED AS DETERMINED BY THE
OFFICE:
(A) IF THE APPLICANT IS AN INDIVIDUAL, OR AN ENTITY WITH ONE OR MORE
INDIVIDUALS, WHETHER THE JUSTICE INVOLVED INDIVIDUAL WAS THEMSELVES
CONVICTED OF A MARIHUANA-RELATED OFFENSE AS SET FORTH IN REGULATION;
(B) THE JUSTICE INVOLVED INDIVIDUAL'S PRIMARY RESIDENCE AT THE TIME OF
SUCH INDIVIDUAL'S ARREST OR CONVICTION:
(I) RELATIVE TO AREAS WITH HISTORICALLY HIGH RATES OF ARREST,
CONVICTION, OR INCARCERATION FOR MARIHUANA-RELATED OFFENSES;
(II) RELATIVE TO AREAS WITH HISTORICALLY LOW MEDIAN INCOME; OR
(III) WAS PROVIDED BY A PUBLIC HOUSING AUTHORITY IN NEW YORK STATE OR
NEW YORK CITY; AND
(C) THE QUALIFYING BUSINESS BASED ON:
(I) THE NUMBER OF EMPLOYEES EMPLOYED BY THE BUSINESS;
(II) THE NUMBER OF YEARS THE BUSINESS HAS BEEN IN OPERATION;
(III) THE PROFITABILITY OF THE BUSINESS;
(IV) TYPE OF BUSINESS AND WHETHER THE BUSINESS WAS A RETAIL BUSINESS,
OR SOLD PRODUCTS OR SERVICES DIRECTLY TO THE END-CONSUMER;
(V) WHETHER THE BUSINESS HAD A PHYSICAL LOCATION; OR
(VI) WHETHER THE BUSINESS RECEIVED OR RESOLVED ANY VIOLATIONS, FINES
OR FEES ASSESSED AGAINST THE BUSINESS BY STATE OR FEDERAL REGULATORY
AUTHORITIES; AND
(D) ANY OTHER FACTORS AS DETERMINED BY THE OFFICE.
4. THE OFFICE MAY CREATE REGIONAL GEOGRAPHIC ZONES FOR THE SCORING OF
APPLICANTS. APPLICANTS MAY BE ASKED TO RANK A NUMBER OF PREFERENCES OF
REGIONAL GEOGRAPHIC ZONES TO BE CONSIDERED FOR A LICENSE. FOR REGIONAL
GEOGRAPHICAL ZONES WHERE THERE ARE MORE APPLICANTS THAN AVAILABLE
LICENSES, THE OFFICE MAY SELECT FROM ELIGIBLE APPLICANTS WHO INDICATED
FIRST PREFERENCE FOR THE GIVEN REGION BASED ON WEIGHTED SCORING OF THE
EVALUATION CRITERIA SET OUT ABOVE. IN THE EVENT THERE IS A TIE BETWEEN
TWO OR MORE CANDIDATES OR THERE ARE MORE APPLICANTS THAN AVAILABLE
LICENSES AFTER THE EVALUATION CRITERIA HAS BEEN APPLIED, THE OFFICE IS
AUTHORIZED TO USE A RANDOM SELECTION PROCESS TO IDENTIFY THE FINAL
APPLICANTS TO RECOMMEND TO THE BOARD FOR LICENSURE.
5. THE OFFICE SHALL APPROVE, DENY, OR REQUEST ADDITIONAL INFORMATION
IN REGARDS TO A CONDITIONAL ADULT-USE RETAIL DISPENSARY LICENSEE'S
SUBMISSION FOR LOCATION APPROVALS WITHIN THIRTY DAYS OF RECEIPT OR THE
LOCATION REQUEST SHALL BE AUTOMATICALLY APPROVED SO LONG AS IT COMPLIES
WITH THE SETBACK REQUIREMENTS OF THIS CHAPTER.
6. THE OFFICE AND DORMITORY AUTHORITY SHALL MAKE THE LIST OF ADDRESSES
FOR ANY EXECUTED LEASE AGREEMENTS ENTERED INTO AND POTENTIALLY AVAILABLE
TO ELIGIBLE CONDITIONAL ADULT-USE RETAIL DISPENSARY LICENSEES PUBLICLY
AVAILABLE ON THEIR WEBSITES, AND UPON REQUEST. SUCH LIST SHALL BE
UPDATED EACH WEEK TO MAXIMIZE THE TRANSPARENCY FOR RETAIL DISPENSARY
LICENSEES SECURING STORE LOCATIONS AND SHALL NOT INCLUDE OR BLOCK ANY
LOCATIONS WITHOUT AN EXECUTED LEASE.
7. THE OFFICE SHALL PROMULGATE ANY RULES AND REGULATIONS TO FULLY
IMPLEMENT THIS SECTION AND ANY RULES AND REGULATIONS ADOPTED PRIOR TO
THE ENACTMENT OF THIS SECTION SHALL NOT BE INVALIDATED.
A. 7666 7
§ 11. This act shall take effect immediately; provided, however, that
the amendments to section 68-c of the cannabis law made by section seven
of this act shall not affect the repeal of such section and shall be
deemed repealed therewith; and provided further that the amendments to
section 69-a of the cannabis law made by section eight of this act shall
not affect the repeal of such section and shall be deemed repealed ther-
ewith.