Social and Economic Equity

What This Covers

• Who qualifies as a Social and Economic Equity applicant
• Ownership and sole control requirements
• Ongoing disclosure and reporting obligations
• Community impact plan requirements
• How OCM reviews, enforces, and revokes SEE status

Qualifications for SEE Applicants (Section 121.1)

To qualify as a Social and Economic Equity applicant, the person or group in sole control of the business must fall into at least one qualifying category.

Qualifying categories include:

• An individual from a community disproportionately impacted by cannabis enforcement
• A minority-owned business
• A women-owned business
• A distressed farmer
• A service-disabled veteran-owned business

Anyone counted toward sole control must own at least 1 percent of the business.

Impacted Community Criteria

An owner may qualify as impacted if they:

• Lived in an impacted community for 5 of their first 18 years, or
• Lived in an impacted community for a total of 7 years

OCM may consider exceptions related to incarceration, foster care placement, homelessness, or schooling.

OCM determines impacted communities using evidence such as arrest and conviction data, enforcement patterns, child protective removals, deportation records, or similar indicators.

Minority-Owned and Women-Owned Businesses

Applicants must provide either:

• Official MWBE certification, or
• A sworn declaration supported by records

Applicants must also demonstrate that the business qualifies as a small business using payroll records, receipts, bylaws, or comparable documentation.

Distressed Farmers

A distressed farmer must show:

• Operation of a small farm, and
• Either operating losses shown through required tax filings, or proof they are the producer or decision-maker through tax records, contracts, payroll, or similar documentation

Service-Disabled Veteran-Owned Businesses

Applicants must provide:

• Official certification from the Division of Service-Disabled Veterans’ Business Development, or
• Temporary documentation confirming a service-connected disability

Additional priority may be given if the applicant:

• Comes from an impacted community
• Earns less than 80 percent of county median income
• Has, or has a close family member with, a pre-MRTA marijuana conviction

Ownership and Sole Control (Section 121.2)

Applicants must prove that SEE-qualified individuals genuinely own and control the business.

OCM may require documentation such as:

• Bylaws
• Board resolutions
• Ownership or share records
• Payroll and compensation records
• Comparisons of owner and employee compensation
• Management or compensation agreements
• Any additional records OCM requests

If documentation is incomplete, OCM may allow governance policies to be submitted within 30 days.

If OCM later determines that control is not genuine, the license may be suspended, canceled, or revoked.

Continuing Disclosure Obligations (Section 121.3)

SEE licensees must disclose any material change affecting:

• Ownership
• Control
• Eligibility
• SEE status

OCM approval is required before changes take effect.

Failure to disclose may result in suspension, revocation, or denial of licensure. Any person inside the company may report suspected non-disclosure. Whistleblowers are legally protected.

Community Impact Commitments (Section 121.4)

SEE applicants and licensees must submit and maintain a community impact plan.

The plan must explain:

• Which communities or individuals will benefit
• What benefits will be provided
• How often engagement will occur
• Why the selected community needs support
• What resources, partnerships, and staff will be used
• What metrics will be tracked to measure outcomes

OCM may bar individuals or entities from future licensure if they knowingly assist a business that fraudulently claimed SEE status.

SEE Application Review (Section 121.5)

Applicants must submit a dedicated SEE application with proof of eligibility.

If information is missing, OCM will issue a deficiency notice with a deadline to cure. Applications with unresolved deficiencies will not be considered.

Applicants may request reconsideration of a negative determination within 30 days.

Severability (Section 121.6)

If any portion of Part 121 is ruled invalid, the remaining provisions remain enforceable.

What Operators Usually Miss

• SEE status is ongoing, not one-time
• Control matters more than labels or titles
• Informal side agreements can invalidate eligibility
• Community impact plans are enforceable commitments

When This Comes Up

• During application review
• During ownership or financing changes
• During inspections or audits
• When disputes or complaints are filed
• During license renewal

What Happens If You Ignore This

• License suspension or revocation
• Loss of SEE status and priority benefits
• Bar from future licensing
• Enforcement actions tied to misrepresentation

Related NYCRR Section Pages

• Adult-Use Applications and Licensing (Part 120)
• Rules by License Type (Part 123)‍
• Business Requirements (Part 124)‍
• Operating Requirements and Inspections (125)‍
• CAURD (Part 119)‍
• Definitions (116.1 and 118)‍
• Municipality Rulemaking (Part 119)

Source Material

• NYCRR Title 9, Part 121 (Qualifications for a Social and Economic Equity Applicant)
• MRTA Article 4 (How NY's Adult Use Cannabis System Works)