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Compiled text through Jul 31, 2022Register checked through July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)

All 7 displayed sections in this Part carry the same compiled date. Status and warnings stay on each section.

9 NYCRR 116.1 - Definitions

Later Register activity found — review the notice before relying on the compiled text.

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Dates and status

Compiling agency: Executive Department
Text status: Westlaw Inline Boundary Correction
Compiled text through: Jul 31, 2022
Register checked through: July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
Activity status: Later Register activity found — review the notice before relying on the compiled text.
Latest notice: OCM-13-22-00002-A · Adopted rule · Aug 3, 2022
Source snapshot: Jun 6, 2026

For the purposes of this Part, the following terms shall have the following meanings:

(a)Act means the Marihuana Regulation and Taxation Act, chapter 92 of the Laws of 2021.

(b)Aggregate ownership interest means the total ownership interest held by:

(1)a legal entity and any legal entity in its multilevel ownership structure; or

(2)an individual and the spouse, domestic partner, civil union partner, child, sibling, or parent of such individual.

(c)Applicant means a person applying for a license under this Part.

(d)Board means the New York State Cannabis Control Board established pursuant to the act.

(e)Bona fide labor organization means a local labor union:

(1)that represents employees in this State with regard to wages, hours and working conditions;

(2)in which officers have been elected by secret ballot or otherwise in a manner consistent with Federal law; and

(3)that is free of domination or interference by any employer and has received no improper assistance or support from any employer.

(f)Conditional period means four years from the date the license is granted.

(g)Control means the power to order or direct the management, managers, or policies of a person.

(h)Eligible applicant means an applicant that satisfies all the required elements in section 116.4 of this Part.

(i)Financial institution means any bank, mutual savings bank, consumer loan company, credit union, savings and loan association, trust company, or other lending institution under the jurisdiction of the Department of Financial Services.

(j)Financial interest means any actual or future right to ownership, investment or compensation arrangement with another person, either directly or indirectly, through business, investment, spouse, parent or child. A person with a financial interest does not include a passive investor.

(k)Financier means any person, other than financial institution or government or governmental subdivision or agency, that provides capital as a gift, provides a grant, or lends capital pursuant to a secured or unsecured financing agreement. A financier may not receive an ownership interest, control of the business, a share of revenue, gross profits or net profits, a profit sharing interest, or a percentage of the profits in exchange for a gift, grant or loan, unless the financier receives prior approval from the office.

(l)First renewal date means two years from the date the license is granted.

(m)Fund means a social and economic equity fund in which the State, any state agency, public authority, public benefit corporation, or division thereof has invested and is formed for the limited purpose of funding costs, which include, but are not limited to construction, renovations and equipment purchasing associated with establishing or developing adult-use cannabis operators.

(n)Justice involved means a person that satisfies the required elements in section 116.4(a)(2)(i) of this Part.

(o)License means a license issued pursuant to this Part and is conditioned on all requirements and prohibitions being met.

(p)Licensee means a person who has been granted a license to engage in the retail sale of cannabis products under this Part.

(q)Marihuana-related offense means a marihuana or cannabis offense defined under article 221 of the Penal Law prior to its repeal, any offense under article 220 or section 240.36 of the Penal Law prior to the effective date of article 221 of the Penal Law, where the controlled substance involved was marihuana, any offense that is eligible to be sealed or expunged pursuant to Chapter 131 of the Laws of 2019 or the act or any offense identified by the office to be a marihuana-related offense.

(r)Passive investor means a person that has an aggregate ownership interest of no more than five percent of the outstanding shares of an applicant or licensee whose shares are publicly traded, and such person does not have control over the applicant or licensee.

(s)Person means an individual, institution, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity.

(t)Primary residence means a dwelling where a person usually stays or stays more often than other locations with an intention to remain. The office shall be authorized to select one or more, without limitation, of the following to verify an individual’s primary residence:

(1)State or Federal tax filing or return with proof of filing, including e-filing acknowledgements;

(2)a signed lease agreement, a property deed, a mortgage payment, or property tax statement that includes the individual’s name;

(3)a letter addressed to the applicant from:

(i)the public housing authority in New York State or New York City;

(ii)a homeless shelter indicating the applicant currently resides at the homeless shelter;

(iii)a nonprofit organization or religious institution that provides services to homeless individuals, indicating the applicant’s lack of permanent housing;

(iv)a domestic violence residential care program or organization that serves domestic violence survivors; or

(v)a charitable organization registered with the New York State Attorney General that provided services to the applicant and for which eligibility was established prior to the 19th of April, 2021, attesting to residence.

(4)a voter registration card;

(5)jury summons, court order, or other document from a court within New York State;

(6)a government issued identification;

(7)a paycheck stub;

(8)a utility bill;

(9)a health institution or insurance company statement, bill, or record;

(10)a bank or credit card statement;

(11)a document addressed to the applicant by a local government in New York State; or

(12)any other proof of residency as determined by the office.

(u)Qualifying business means a business as defined in section 116.4(a)(2)(iii) of this Part.

(v)Regional geographic zones means the zones established by the office which represent the geographic area where conditional adult-use retail dispensaries will be located.

(w)True party of interest:

(1)includes, but is not limited to the following:

(i)applicant or licensee’s sole proprietor, partner (whether limited or general), member, manager, president, vice president, secretary, treasurer, officer, board member, trustee, director, or a person with equivalent title to each of the foregoing;

(ii)stockholder of applicant or licensee, other than a passive investor;

(iii)each person that makes up the ownership structure of each level of ownership for an applicant or licensee that has a multilevel ownership structure;

(iv)person with a right to receive some or all of the revenue, gross profit, or net profit from the licensed business during any full or partial calendar or fiscal year;

(v)person with a financial interest in the applicant or licensee;

(vi)person that has authority to or exercises control over the applicant or licensee;

(vii)person that has membership rights in the applicant or licensee in accordance with the provisions of any articles of incorporation, bylaws, limited liability corporation agreements, partnership agreements, or operating agreement;

(viii)person that assumes responsibility for the debts of the applicant or licensee; or

(ix)spouse of any individual in subparagraphs (w)(1)(i) through (iii) of this section;

(2)does not include a person that, without limitation:

(i)receives payment for rent on a fixed basis under a lease or rental agreement relating to applicant or licensee. Notwithstanding, if there is a common ownership interest between applicant or licensee, and the entity that owns the real property, the office may investigate all funds associated with the landlord to determine if the landlord is a financier. The office may also investigate a landlord in situations where a rental payment has been waived or deferred;

(ii)receives a bonus or commission from the applicant or licensee based on the individual’s sales, so long as the commission does not exceed ten percent of the sales of the applicant or licensee in any given bonus or commission period, unless otherwise determined by the office. Commission-based compensation agreements must be in writing;

(iii)contracts with the applicant or licensee to receive a commission for the sale of the business or real property;

(iv)consults receiving a flat or hourly rate of compensation from the applicant or licensee under a contractual agreement;

(v)has an option to purchase the applicant or licensee, in the event the applicant or licensee is not an individual, or conditional adult-use retail dispensary, so long as no money has been paid under an option contract or agreement for such purchase or sale;

(vi)has a contract or agreement for services with an applicant or licensee, such as a branding or staffing company, as long as the applicant or licensee retains the right to and controls the business;

(vii)is a financial institution; or

(viii)is a passive investor.

9 NYCRR 116.2 - Application for conditional adult-use retail dispensary license

LawEngine holds a witnessed source copy, but later State Register activity targets this section. Inline text is withheld until the change record and source text are reconciled.

Dates and status

Compiling agency: Executive Department
Text status: Source-only entry
Compiled text through: Jul 31, 2022
Register checked through: July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
Activity status: Later Register activity found — review the notice before relying on the compiled text.
Latest notice: OCM-13-22-00002-A · Adopted rule · Aug 3, 2022
Source snapshot: Jun 6, 2026

9 NYCRR 116.3 - Attestations

Later Register activity found — review the notice before relying on the compiled text.

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Dates and status

Compiling agency: Executive Department
Text status: Source receipt
Compiled text through: Jul 31, 2022
Register checked through: July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
Activity status: Later Register activity found — review the notice before relying on the compiled text.
Latest notice: OCM-13-22-00002-A · Adopted rule · Aug 3, 2022
Source snapshot: Jun 6, 2026

(a)The applicant shall sign the proof of attestation, attesting that the applicant:

(1)has submitted an application that is complete and accurate;

(2)submits to jurisdiction of the courts of New York State and the application of all State laws, local laws and regulations of New York State, including, but not limited to, relating to the conditional adult-use retail dispensary;

(3)shall not sell any cannabis product to anyone under 21 years of age;

(4)shall not sell any cannabis product in any disallowed form, as determined by the office;

(5)shall not give away any cannabis product as set forth in the act;

(6)shall only acquire cannabis products from entities authorized to distribute cannabis products in New York State;

(7)shall ensure that the eligible applicant, upon being granted a license, shall maintain the minimum ownership and control requirements set forth in section 116.4 of this Part, and that noncompliance shall be deemed a surrender of license as determined by the office;

(8)shall ensure that its true parties of interest are of good moral character;

(9)shall exercise reasonable care to confirm its information and the ability of each person to meet the requirements as set forth in this Part;

(10)shall provide the office a complete disclosure that includes all true parties of interest and that each individual who is a true party of interest is at least 21 years of age;

(11)shall not attempt to conceal or disguise ownership or other control over its operations in its submissions;

(12)shall register with the New York State Department of Taxation and Finance for a certificate of adult-use cannabis registration and, if applicable, a certificate of authority should the applicant be granted a license;

(13)shall indemnify and hold harmless the State of New York for any and all civil or criminal penalties resulting from receiving a conditional adult-use retail dispensary license;

(14)has entered into a labor peace agreement with a bona fide labor organization and understands that the maintenance of such a labor peace agreement shall be an ongoing material condition of the license;

(15)shall comply with applicable State and local laws, regulations, and guidance; and

(16)shall submit any other information as required by the office.

9 NYCRR 116.4 - License eligibility and evaluation

Later Register activity found — review the notice before relying on the compiled text.

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Dates and status

Compiling agency: Executive Department
Text status: Westlaw Inline Boundary Correction
Compiled text through: Jul 31, 2022
Register checked through: July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
Activity status: Later Register activity found — review the notice before relying on the compiled text.
Latest notice: OCM-13-22-00002-A · Adopted rule · Aug 3, 2022
Source snapshot: Jun 6, 2026

(a)Eligibility.

The following minimum requirements must be met to become an eligible applicant for this license:

(1)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 180 calendar days during the current year or 540 calendar days over the course of three years;

(2)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 the 31st of March 2021;

(b)had a parent, legal guardian, child, spouse, or dependent who was convicted of a marihuana-related offense in New York State prior to the 31st of March 2021; or

(c)was a dependent of an individual who was convicted of a marihuana-related offense in New York State prior to the 31st of March 2021; 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 2 years, at least 10 percent ownership interest in, and control of, a qualifying business, which means a business that had net profit for at least 2 of the years the business was in operation; or

(3)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 organization’s tax returns;

(iv)have a history of creating vocational opportunity for justice involved individuals;

(v)have justice involved individual(s) on its board or as officers; and

(vi)have at least five full time employees.

(b)Applicant ownership and control minimums.

(1)At least 51 percent or more of the applicant shall be owned, in the aggregate, by:

(i)at least one individual that satisfies the requirements for an eligible applicant set forth in sections 116.4(a)(1) and 116.4(a)(2) or entity that satisfies the requirements for an eligible applicant set forth in paragraphs (a)(1) and (3) of this Part; and

(ii)any other additional individuals, if any, who are justice involved; and

(2)At least one individual that satisfies the requirements for an eligible applicant set forth in paragraphs (a)(1) and (2) or entity that satisfies the requirements for an eligible applicant set forth in paragraphs (a)(1) and (3) of this Part shall own at least 30 percent of the applicant and such individual or entity shall have sole control of the applicant or licensee.

(c)Evaluation.

An eligible applicant shall be evaluated based on any of the following criteria which shall be weighted as determined by the office:

(1)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 clause (a)(2)(i)(a) of this Part;

(2)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

(3)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

(4)any other factors as determined by the office.

(d)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.

9 NYCRR 116.5 - Denials

Later Register activity found — review the notice before relying on the compiled text.

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Dates and status

Compiling agency: Executive Department
Text status: Source receipt
Compiled text through: Jul 31, 2022
Register checked through: July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
Activity status: Later Register activity found — review the notice before relying on the compiled text.
Latest notice: OCM-13-22-00002-A · Adopted rule · Aug 3, 2022
Source snapshot: Jun 6, 2026

(a)Notwithstanding an applicant satisfying the requirements set forth in this Part, the application shall be denied where an applicant or eligible applicant, or any true party of interest of the applicant:

(1)has submitted an application that contains inconsistent information;

(2)failed to submit the materials required by this Part within the specified time allotted;

(3)failed to submit fingerprints for purposes of providing a criminal history report required pursuant to section 138 of the Cannabis Law;

(4)is a person forbidden to traffic cannabis as set forth in section 137 of the Cannabis Law;

(5)has demonstrated prior business practices and financial arrangements that may not comply with State and local laws incidental to the cannabis industry;

(6)has had a license associated with cannabis cancelled, revoked or suspended in any other state or jurisdiction;

(7)creates or enhances the dangers of unlawful practices, methods and activities in the cannabis industry, including, but limited to, product inversion or diversion;

(8)is delinquent in filing any required tax returns or paying any amount owed to any local, State or Federal government;

(9)causes a violation of section 72 or 85 of the Cannabis Law; or

(10)is not a person of good moral character.

9 NYCRR 116.6 - Application for renewal or transition

Later Register activity found — review the notice before relying on the compiled text.

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Dates and status

Compiling agency: Executive Department
Text status: Source receipt
Compiled text through: Jul 31, 2022
Register checked through: July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
Activity status: Later Register activity found — review the notice before relying on the compiled text.
Latest notice: OCM-13-22-00002-A · Adopted rule · Aug 3, 2022
Source snapshot: Jun 6, 2026

(a)Renewal.

(1)Applicant shall comply with all applicable State and local laws, regulations, and guidance relating to the licensed activities for renewal of its license.

(2)Prior to the expiration of the first renewal date, licensee shall submit an application to renew the license as prescribed by the office and include such information and fees, if any, as the office may require.

(3)Upon request for renewal, the office shall consider the licensee's history of compliance with the requirements of this part and applicable State and local laws, regulations, and guidance.

(4)The board may deny a renewal after consideration of the licensee’s history of compliance.

(b)Transition.

(1)After the conditional period, to continue to conduct the activities licensed under this Part, a licensee may apply to transition to an adult-use retail dispensary license issued by the board.

(2)120 calendar days prior to the expiration of the conditional period, licensee shall notify the office of its intent to continue the activities licensed under this Part beyond the expiration of the conditional period.

(3)The office shall consider the licensee's history of compliance with applicable State and local laws, regulations, and guidance, including, but not limited to, whether the applicant has served the community in which it is located, to determine whether the licensee may transition to an adult-use retail dispensary license approved by the board upon the expiration of the conditional period.

(4)The review shall conclude prior to the expiration of the conditional period, unless otherwise extended by the office.

(5)The board may deny a transition after consideration of the licensee’s history of compliance.

9 NYCRR 116.7 - Requirements and prohibitions for conditional adult-use retail dispensary license

LawEngine holds a witnessed source copy, but later State Register activity targets this section. Inline text is withheld until the change record and source text are reconciled.

Dates and status

Compiling agency: Executive Department
Text status: Source-only entry
Compiled text through: Jul 31, 2022
Register checked through: July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
Activity status: Later Register activity found — review the notice before relying on the compiled text.
Latest notice: OCM-13-22-00002-A · Adopted rule · Aug 3, 2022
Source snapshot: Jun 6, 2026

9 NYCRR 116.8 - Suspension, revocation, and surrender

Later Register activity found — review the notice before relying on the compiled text.

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Dates and status

Compiling agency: Executive Department
Text status: Source receipt
Compiled text through: Jul 31, 2022
Register checked through: July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
Activity status: Later Register activity found — review the notice before relying on the compiled text.
Latest notice: OCM-13-22-00002-A · Adopted rule · Aug 3, 2022
Source snapshot: Jun 6, 2026

(a)The board shall deliver a written notice to the licensee for failure to comply with this Part, applicable State and local laws, regulations, or guidance relating to conditional adult-use retail dispensary and adult-use retail dispensary, including those promulgated after applicant submits its application for a license. If no effort has been made to cure, the license shall be deemed surrendered 30 calendar days from the date of the written notice. Written notice shall be sent to the licensee’s last known address on file with the office.

(b)In the event that licensee elects to cease operation of all licensed activities or to surrender its license within the conditional period, the following shall apply:

(1)licensee shall notify the office in writing at least 30 calendar days prior to the date licensee anticipates ceasing operations;

(2)the written notice shall include a proposed plan for closure. The plan shall be subject to office approval and may include a recommendation of any individual or entity that would qualify under this Part; and

(3)upon surrender of the license or cessation of operation, licensee shall vacate the leased premises associated with the fund, as defined by this Part, within 30 calendar days of surrender or cessation.

(c)If a licensee fails to comply with standards and special conditions of the license, the office may assess a penalty in addition to the surrender of the license pursuant to this Part.

9 NYCRR 116.9 - Severability

Later Register activity found — review the notice before relying on the compiled text.

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Dates and status

Compiling agency: Executive Department
Text status: Source receipt
Compiled text through: Jul 31, 2022
Register checked through: July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
Activity status: Later Register activity found — review the notice before relying on the compiled text.
Latest notice: OCM-13-22-00002-A · Adopted rule · Aug 3, 2022
Source snapshot: Jun 6, 2026

The provisions of this Part are severable. If any provision of this Part is found to be invalid, or if any application of this Part to any person or circumstance is found to be invalid, the invalidity shall not affect any other provisions or applications which can be given effect without the invalid provision or application.

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