Adult-Use Licensing Framework
MRTA Article 4, Sections 61–67
These sections explain how adult-use cannabis licenses are applied for, evaluated, issued, renewed, and changed in New York State. They establish the foundation for OCM’s licensing process before regulations and inspections apply.
This is where licensing authority begins: what you must submit, how OCM reviews applications, what fees apply, how long licenses last, and when changes require approval.
What This Covers
- How adult-use license applications are submitted and reviewed
- Required application disclosures and updates
- Fees, license duration, and renewal requirements
- Selection criteria and public interest considerations
- Ownership, control, and premises change approvals
Jump To MRTA Article 4 Section Pages
License Application (Section 61)
This section authorizes OCM to create the adult-use license application and define required information.
Key rules:
- Anyone may apply for an adult-use license
- Applications must be submitted in writing with the required fee
- One license is required per premises location
- Prior cannabis convictions may not be the sole basis for denial
What this means for operators:
- Licensing is site-specific
- Cannabis-related records do not automatically disqualify an applicant
Required Application Information (Section 62)
Applications must include complete and accurate disclosures.
Required information includes:
- Ownership and business structure
- Financial disclosures
- All True Parties of Interest
- Fingerprints and background checks
- Premises details
- Any additional information required by OCM
Additional requirements:
- Applications must be signed under penalty of perjury
- Required fees must be paid at submission
- Applicants must file a supplemental update at least 30 days before major changes, including funding, ownership, or premises
OCM may:
- Waive certain information categories for groups of applicants (not individuals)
- Restrict ownership changes for up to two years after operations begin
Fees (Section 63)
OCM is authorized to establish licensing fees.
Fees may include:
- Non-refundable application fees
- License fees, renewed every two years
- Scaled fees based on canopy size, production scale, or revenue
Additional fee rules:
- Registered Organizations entering adult-use are subject to higher fees
- Social and Economic Equity applicants may qualify for reduced or waived fees
Selection Criteria (Section 64)
OCM evaluates applications using multiple statutory factors.
Eligibility and operational readiness:
- Ability to meet license requirements
- Capacity to operate compliantly
- Ability to prevent diversion
Social and Economic Equity:
- SEE eligibility and priority status
Premises and property:
- Whether the applicant has secured or can secure the site
- Adequacy of space, equipment, and layout
- Impact on traffic, noise, and public safety
Community and labor considerations:
- Compliance with labor laws
- Existence of a Labor Peace Agreement
- Commitment to community impact
Public interest factors:
- Existing license density in the area
- Applicant’s compliance history
- Environmental sustainability
- Whether issuing the license benefits the community
Registered Organizations:
- OCM evaluates whether medical access is maintained
- All statutory and regulatory obligations must be met
If OCM intends to deny a license, written reasons must be provided.
License Limits and Duration (Section 65)
This section sets baseline limits that apply to all adult-use licenses.
Key requirements:
- No license may be issued to anyone under 21
- Employees under 18 are prohibited
- Employees aged 18–20 may not interact with customers
- No sales to persons under 21 or visibly intoxicated individuals
- No sales that knowingly exceed legal possession limits
OCM authority:
- OCM may cap production or sales volumes by license type
License duration:
- All adult-use licenses are valid for two years
License Renewal (Section 66)
To renew a license, a licensee must:
- Submit a renewal application
- Pay the renewal fee
- Confirm whether premises have changed
- Provide demographic data on workforce diversity
- Maintain a Labor Peace Agreement
- Demonstrate progress on social responsibility or impact plans
OCM must provide renewal forms at least 90 days before license expiration.
Ownership and Business Structure Changes (Section 67)
Each license identifies:
- Licensee name
- Premises address
- Authorized activities
- Unique license number
OCM approval is required before:
- Moving to a new location
- Adding or removing facilities
- Changing ownership
- Changing control
- Changing business structure
If changes are made without prior approval, the license is void.
Substantial Corporate Change
A substantial corporate change includes:
- More than 51% change in ownership, officers, directors, managing members, or partners
- Transfer of 51% or more of ownership interests
- Any individual reaching 51% ownership for the first time
OCM may later adopt rules allowing limited changes without prior approval, but the statute requires approval for most major changes.
What Operators Usually Miss
- Licenses are tied to a specific premises
- Ownership changes often require approval before closing
- Supplemental updates during application are mandatory
- Fees are non-refundable
When This Comes Up
- Preparing an initial application
- Adding investors or changing ownership
- Moving or expanding a premises
- License renewal cycles
What Happens If You Ignore This
- Application denial or voiding
- License revocation
- Forced unwinding of ownership changes
- Delays in renewal or expansion
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