Conditional Adult-Use Retail Dispensary (CAURD) (NYCRR)

What This Page Covers

• Application requirements for a CAURD license
• Required attestations
• How OCM evaluates eligibility
• Reasons OCM may deny an application
• Renewal or transition to an adult use retail dispensary license
• Operational requirements and prohibitions specific to CAURD
• Suspension, revocation, or surrender
• Severability

Who This Applies To

This page applies to:

• Applicants seeking a Conditional Adult Use Retail Dispensary license
• Existing CAURD licensees preparing for renewal or transition
• Owners and True Parties of Interest connected to a CAURD business

Application for Conditional Adult Use Retail Dispensary License (Section 116.2)

Applicants must submit the information and documentation required by the Office of Cannabis Management, including:

• The legal name of the business
• Names, addresses, dates of birth, and government issued identification for all owners and True Parties of Interest
• Organizational and financial documents
• A full list of anyone with an interest in the business, including disclosures of other business licenses or violations
• Background check information
• Any other documentation required by OCM

Attestations (Section 116.3)

Applicants must attest that:

• All information submitted is accurate, complete, and truthful
• They meet age and eligibility requirements
• They will comply with Cannabis Law, NYCRR, and OCM guidance and license conditions

License Eligibility and Evaluation (Section 116.4)

OCM evaluates the application based on eligibility criteria, including:

• Age and eligibility
• Prior violations or compliance history
• Financial integrity and suitability
• True Party of Interest disclosures and compliance
• Any other standards required by regulation

Denials (Section 116.5)

OCM may deny the application if the applicant or any True Party of Interest:

• Fails to meet eligibility requirements
• Submits false or misleading information
• Is financially or criminally unsuitable
• Fails to complete required disclosures

Renewal or Transition to an Adult Use License (Section 116.6)

CAURD licensees must submit an application to either:

• Renew the conditional license, or
• Transition to a standard adult use retail dispensary license

Applications must follow OCM timelines and requirements. Missing deadlines may result in loss of licensure.

Requirements and Prohibitions for Conditional Adult Use Retail Dispensary License (Section 116.7)

Conditional license holders must comply with CAURD specific requirements and prohibitions, including:

• Product limitations
• Sales conditions
• Promotional restrictions
• Product sourcing requirements
• Any limitations unique to the conditional license

Suspension, Revocation, and Surrender (Section 116.8)

OCM may suspend, revoke, or require surrender of the conditional license if the licensee:

• Violates Cannabis Law or NYCRR
• Fails to comply with license conditions
• Misleads OCM
• Engages in conduct that threatens public health, safety, or compliance integrity

Severability (Section 116.9)

If any portion of Part 116 is held invalid or unenforceable, the remaining provisions remain in effect.

What Operators Usually Miss

• CAURD is conditional and time limited
• Attestations create enforcement risk
• True Party of Interest compliance is continuously reviewed
• Renewal or transition deadlines are strictly enforced

When This Comes Up

• Applying for CAURD
• Ownership or control changes
• Preparing for renewal or transition
• Enforcement actions or audits

What Happens If You Ignore This

• Application denial
• License suspension or revocation
• Forced surrender of the conditional license
• Loss or delay of transition eligibility

Go Here Next

• True Party of Interest (TPI)
• Adult Use Applications and Licensing
• Operating Requirements and Inspections
• Social and Economic Equity (Part 121)
• Business Requirements (Part 124)
• Municipality Rulemaking (Part 119)

Source Material

• NYCRR Title 9, Part 116