Adult-Use Applications and Licensing
NYCRR Title 9, Part 120
Part 120 sets the regulatory requirements for applying for, receiving, maintaining, amending, and renewing adult-use cannabis licenses in New York. These rules govern how applications are submitted, reviewed, approved, denied, and managed by OCM.
This is the foundation for the entire licensing lifecycle.
What This Covers
- How adult-use license applications are submitted and reviewed
- Required application contents and disclosures
- License tiers, fees, and filing rules
- Approval, denial, renewal, and reapplication standards
- Ongoing notification and change-approval requirements
General Application Requirements (120.1)
This section defines who may apply and the baseline requirements for all adult-use license applications.
Key requirements include:
- Applicants must apply under license categories defined by Cannabis Law
- Applications must include legal business information
- Full ownership structure must be disclosed
- Financial disclosures are required
- Fingerprints and background checks are required
- Location information or provisional location plans must be provided
- All OCM-required attestations and documents must be submitted
OCM may request supplemental information at any time.
Application Contents (120.2)
This section defines what must be included in a complete application.
Required contents include:
- Legal business name and DBA, if applicable
- Full ownership breakdown of all natural persons and entities
- Percentage ownership for each owner
- Identification of control persons, passive investors, and financial interest holders
- Source of funds and financial arrangements
- Criminal history disclosures
- Organizational documents
- Location information, including address or conditional location plan
- Floorplan or site plan, if required
- Municipality notice date
- Labor peace agreement status
- Attestation that all information is accurate
OCM may require interviews, additional documentation, fingerprints, or updated disclosures.
License-Specific Tiers and Options (120.3)
This section defines license tiers, caps, and variations by license type.
Examples include:
- Cultivator canopy size tiers
- Processor extraction permissions
- Distributor functional tiers
- Microbusiness integrated permissions
- Retail and on-site consumption site limits
Applicants must select the correct tier when applying.
Operating outside the approved tier is prohibited.
Tier changes require OCM approval.
Fees (120.4)
Fees are set by the Board and must be paid as instructed by OCM.
Fees may include:
- Application fees
- License fees
- Fingerprinting and background check fees
- Location review fees
- Renewal fees
- Modification fees
Fees are non-refundable.
Reduced or waived fees may apply only where authorized by law or regulation.
Filing of an Application (120.5)
Applications must be submitted electronically through OCM’s portal.
Requirements include:
- Applications must be complete to be considered filed
- All required fees must be paid at submission
- Incomplete applications may be rejected or voided
- Filing deadlines are strict
Late or partial submissions are not accepted.
Processing of an Application (120.6)
This section explains how OCM reviews applications after submission.
OCM will:
- Review for completeness
- Request missing or clarifying information
- Conduct background checks
- Verify financial disclosures
- Review location compliance
- Assess municipal notice and feedback
- Evaluate labor peace agreement compliance
- Review ownership and control
- Determine eligibility
Applications may be approved, denied, held pending information, voided, or withdrawn.
Application Eligibility and Evaluation (120.7)
OCM evaluates applications using defined eligibility criteria.
Evaluation includes:
- License-specific eligibility requirements
- Ownership and vertical integration restrictions
- Residency requirements, if applicable
- Criminal history and moral character
- Financial responsibility
- True Party of Interest compliance
- Zoning and distance compliance
- Diversion risk
- Prior compliance history
- Public convenience and advantage (retail)
- Medical necessity (ROD)
Failure to meet criteria results in denial.
Application for Additional Licenses (120.8)
This section governs when existing licensees may apply for additional licenses.
Rules include:
- Ownership and TPI limits must be met
- License types must be compatible
- Certain license combinations are prohibited
This section controls license stacking and vertical-integration compliance.
Issuance of a License (120.9)
This section explains how licenses are issued after approval.
OCM must:
- Notify the applicant
- Issue a license certificate
- Publish licensee information
- Specify authorized activities, tier, and location
Licenses become active only after required inspections, approvals, and fee payments.
License Duration (120.10)
Adult-use licenses are issued for a defined term.
- Standard licenses are typically valid for two years
- Temporary or conditional licenses may have shorter durations
License Renewal (120.11)
Renewal requires:
- Submission of a renewal application
- Updated ownership and financial disclosures
- Compliance history review
- Payment of renewal fees
OCM may inspect the premises before renewal.
Failure to renew may result in expiration or enforcement.
License Denial (120.12)
OCM may deny an application for reasons including:
- Failure to meet eligibility criteria
- False statements or omissions
- Ownership or TPI violations
- Disqualifying criminal history
- Incomplete or misleading financial disclosures
- Zoning or distance violations
- Municipal notice failures
- Nonpayment of fees
Denials must be issued in writing with stated reasons.
Reapplication After Denial (120.13)
Applicants may reapply after denial if issues are corrected.
- Some denials include waiting periods
- New applications and fees are required
Voided Applications (120.14)
Applications may be voided if:
- OCM requests are ignored
- Required documents are not submitted
- Fees are unpaid
- False information is discovered
- Deadlines are missed
- The application is abandoned
Voided applications are not denials, but the process must restart.
Withdrawal of an Application (120.15)
Applicants may withdraw an application at any time before a decision.
- Withdrawal must be in writing
- Fees are not refunded
- Withdrawals do not count as denials
Review of Disqualifying Offenses (120.16)
OCM considers:
- Nature of the offense
- Time elapsed
- Age at time of offense
- Evidence of rehabilitation
- Relationship to license responsibilities
- Public safety impact
Automatic disqualification is prohibited unless legally justified.
Notification of Business Changes — Applicants (120.17)
Applicants must notify OCM of changes during review, including:
- Ownership changes
- Management or control changes
- Financial interest changes
- Source-of-fund changes
- Location changes
Failure to notify may result in denial or voiding.
Notification of Business Changes — Licensees (120.18)
Licensees must notify and obtain approval for material changes, including:
- Ownership or percentage changes
- Control or management changes
- Financial interest changes
- Location moves or expansions
- Organizational document changes
- TPI changes
- Labor peace agreement changes
Licensed Premises for Cannabis Events (120.19)
Event-specific authorization is required.
- Separate application required
- Authorization is location- and time-limited
- All compliance rules apply
- Only approved licensees may participate
Opportunity to Cure (120.20)
If deficiencies are identified:
- OCM must provide written notice
- Applicants may be given time to cure
- Failure to cure may result in denial or voiding
Severability (120.21)
If any portion of Part 120 is ruled invalid, the remaining provisions remain enforceable.
What Operators Usually Miss
- Incomplete applications are voided, not paused
- Ownership changes during review require notice
- Tier selection limits future operations
- Denials and voids are legally different
When This Comes Up
- Initial application preparation
- Responding to OCM requests
- Ownership or funding changes
- License renewal or expansion
What Happens If You Ignore This
- Application denial or voiding
- Loss of application fees
- Delayed licensure
- Enforcement action after issuance
Related Pages
Source Material
