MEETING TOMORROW'S CHALLENGES
What Will it Take to Snag a Marijuana Business License Q+A with New York Cannabis Board Chair By Caroline Lewis, Health Reporter, WNYC/Gothamist
This article originally appeared in The Gothamist on January 6th, 2022 and is reprinted here with permission. It has been edited for length.
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ew York legalized marijuana for recreational use last March with a law designed to carve out space for small businesses and people from diverse backgrounds. But nearly a year out, much remains unknown about what the licensing process will look like for aspiring cannabis entrepreneurs anxiously waiting in the wings — or how accessible the industry will really be. In an effort to provide a clearer picture of what the application process will look like and what they will need to participate in the industry, the Community Board hosted a Q&A with Tremaine Wright, chair of the state’s recently formed Cannabis Control Board, which will be overseeing the licensing process. Regulations for the state’s marijuana startups will be issued by the Cannabis Control Board “this winter or early spring,” Wright said. But she urged people to start familiarizing themselves with the types of licenses that will be available and drafting their business plans. Although many questions remain about the application process — and how it will help or hinder the state’s equity agenda — Wright offered some insights into what applicants can expect.
When will dispensaries be open for business? If everything goes according to the Cannabis Control Board’s 18-month timeline, recreational dispensaries should be licensed to operate by summer 2023.
When will license applications become available? There’s no set date, but it will likely take several months. The Cannabis Control Board aims to issue draft regulations for the licensing process in the first quarter of this year.
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Then, there will be two months for public comment before the regulations are finalized; only after that will applications become available.
How much will it cost to apply for a license? The application fees for different types of recreational cannabis licenses have yet to be determined, but Wright said people can get a sense of the fee scale by looking at the new rules that have been issued for the state’s hemp program. The fee for a hemp extraction and manufacturing license is $3,500, while the license fee for a dispensary is $300 per retail location. “I don't anticipate recreational marijuana being that low,” said Wright, but she added, “We are very deliberate that we do not have astronomical pricing because we want this to be an equitable program.” The Marijuana Regulation and Taxation Act notes, however, that fees should be reduced or waived for “social and economic equity” applicants.
Will the state help applicants with startup capital? In other states, and in New York’s own medical market, legal marijuana has largely been dominated by companies helmed by white men with access to wealthy investors. As part of the effort to make the adult-use market more accessible, the Marijuana Regulation and Taxation Act indicates that the state should make low- and no-interest loans available to “qualified social and economic equity applicants.”
