%20(3).png)
Eligibility, Ownership & Equity Rules
To apply for a cannabis license in New York, applicants must meet ownership, eligibility, disclosure, and control requirements established under the Marihuana Regulation and Taxation Act (MRTA) and enforced by the Office of Cannabis Management (OCM). Failure to comply with these requirements can prevent approval or result in enforcement action after licensing.
Basic eligibility requirements
To qualify for a New York cannabis license:
- You must be at least 21 years old
- Some license types require New York residency
- Prior cannabis arrests or convictions do not disqualify an applicant
- In many cases, cannabis convictions may support eligibility for equity priority
- All individuals who own, fund, or control the business must be fully disclosed
Social and Economic Equity (SEE) eligibility
New York law prioritizes certain applicants through the Social and Economic Equity (SEE) program.
You may qualify if you are:
- Justice-involved
- You or a close family member had a New York cannabis arrest or conviction prior to March 31, 2021
- From an impacted community
- Low income
- Household income below 80% of Area Median Income
- A minority-owned, women-owned, distressed farmer, or service-disabled veteran–owned business
Potential SEE benefits
SEE status is evaluated based on documentation and control requirements, not self-identification alone. SEE eligibility may provide access to:
- Priority application review
- Fee reductions or waivers
- Conditional license categories (such as CAURD)
- State-supported assistance or programs
Who must be disclosed (True Parties of Interest)
All True Parties of Interest (TPI) must be disclosed and reviewed by OCM. Failure to disclose a required party is grounds for license denial or revocation.
This includes:
- All owners, regardless of ownership percentage
- Investors, lenders, and guarantors
- Anyone controlling day-to-day operations
- Anyone receiving profits, revenue, or other financial benefit
- Holders of convertible interests
- Individuals or entities holding ownership through another entity
Ownership limits and license restrictions
New York limits how many licenses — and which combinations — a person or entity may hold. Indirect ownership violations count, including ownership through shell companies, trusts, or layered entities.
Key restrictions include:
- Prohibition on holding cultivation and retail licenses together
- No ownership or financial control in more than three retail dispensaries
- Only one delivery, cultivator, or microbusiness license per person or entity
- No co-ownership arrangements that create prohibited license combinations
Control rules and silent partners
OCM evaluates actual control, not just what appears in agreements. If a person effectively controls the business — even without formal ownership — OCM treats them as an owner.
Undisclosed control is a violation.
OCM reviews:
- Who makes operational decisions
- Who manages day-to-day activities
- Who receives profits or financial benefit
- Who influences decisions through financing, debt, or guarantees
Equity ownership rules after licensing (SEE licensees)
For SEE licensees, additional post-licensing rules apply:
- The SEE applicant must maintain at least 51% ownership and control
- Equity interests generally cannot be transferred for three years without OCM approval
- Transfers to non-SEE parties may require repayment of state assistance
- All ownership or control changes require prior OCM approval
Criminal record rules
Criminal history is addressed as follows:
- Cannabis arrests or convictions cannot disqualify an applicant
- If cannabis is the only issue, eligibility is legally protected
- Non-cannabis convictions are reviewed on a case-by-case basis
- OCM must provide written justification if a license is denied based on criminal history
Related pages
Source material
- MRTA Article 1, Section 3; Definitions (True Party of Interest, Social and Economic Equity)
- MRTA Article 4 Equity, ownership, and reporting requirements
