LICENSING PREP 4(20) STEPS PROSPECTIVE APPLICANTS CAN TAKE RIGHT NOW
A
S CANNABUFF READERS
deck is a must for prospective cannabis
certainly know, 2022 promises to
license applicants. We have received
be a huge year for New York State’s
countless phone calls from individuals who
adult-use cannabis market. A
are passionate about the industry and
year removed from the Marijuana
have great ideas but have not committed
Regulation and Taxation Act (MRTA) becoming
their strategies to paper. The closer
law, the Empire State’s adult-use framework is
we get to application season, the more
finally beginning to take shape. At some point
important it is to have such a document
this year (possibly late summer or early fall),
in place. A clean, readily accessible
the Cannabis Control Board (CCB) and Office
document that sets forth the ethos of the
of Cannabis Management (OCM) will finalize
applicant is arguably the most important
regulations that establish the criteria for the
piece of an application, and the OCM will
license categories that will make up the adult-use
almost certainly ask for proof of the same.
supply chain and retail outlets.
What is more, given the anticipated costs
Although these regulations will define the exact requirements that businesses must meet to qualify for one of the state’s coveted adult-use licenses, there are certain steps cannabis entrepreneurs can take right now to prepare for licensing, even in the absence of final regulations.
1. HAVE A BUSINESS PLAN While it may seem obvious, having a concise business plan and/or a crisp pitch
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CannaBuff.com SPRING 2022
of standing up an adult-use cannabis business, companies who have a readily accessible pitch deck may have an increased likelihood of securing funding from potential investors. Moral of the story: if your business does not have a viable written business plan, turn your attention to preparing this as soon as possible with, if necessary, the help of your peers in the industry, accountants and other professional advisors.
2. FIND PROPERTY AND PROVE IT WILL BE SECURE The MRTA requires potential applicants to demonstrate they have control or viable access to real property to operate an adult-use cannabis business. See MRTA § 72(4). Whether by signing an option to lease or purchase a site, entering into a purchase agreement contingent upon securing a license, actually leasing a space, or buying a building, the ability to prove to OCM that you have site control for at least the duration of the initial two-year license is critical to being awarded a license. Instituting a security program at that location goes hand-in-hand with controlling it. In mature cannabis markets, security has been an integral piece of license applications. Because adult-use cannabis remains a Schedule I federal substance, and the MRTA is adamant that adults under 21 are not permitted to legally purchase or consume cannabis, all adult-use cannabis and trimmings must