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Joe Rossi is the Cannabis Practice Group Leader at Park Strategies, a statewide lobbying firm. The views and opinions expressed in this article are those of the author, and do not necessarily reflect the views or positions of NY Cannabis Insider.
Today is the last day to get your public comments in for the second, and maybe final, round of public comments on the rules and regulations that will regulate New York State’s cannabis industry.
The revised regulations are 344 pages of information every cannabis entrepreneur in New York State should be familiar with. Comments on the proposed regulations can be submitted by email to regulations@ocm.ny.gov.
And I will tell you why it is worth it.
In January, NY Cannabis Insider invited me to share my thoughts on a ‘prequalification license’ for New York State’s budding entrepreneurs. As mentioned then, I didn’t invent this idea. Michigan was the first legal cannabis state to use a prequalification application process.
Simply put, an applicant in Michigan for an adult-use cannabis business license could apply for pre-qualification by submitting their business plan and financial model, along with their fingerprints for a background check and the application fee. And in Michigan, if the applicant is pre-qualified, they have up to two years to be prepared for full licensure, or else they need to reapply for pre-qualification.
Vermont’s Cannabis Control Board became the second state in the nation to provide a pre-qualification process for an adult-use cannabis license, stating plainly, “the purpose of pre-qualification approval is to smooth the application process for applicants, as well as assist the Board in anticipating the structure of the cannabis market … Getting approved for prequalification could potentially help with … obtaining financing … accessing financial services … completing agreements to use a property for your cultivation operation … and ensuring any business partners are not presumptively disqualified for a license based on the results of their criminal history record.”
Admittedly, there was mention of a provisional license in the first draft of the New York State Office of Cannabis Management’s cannabis regulations that were published in November 2022. And admittedly, I did not realize that when I wrote my January op-ed. In fairness, it was light on details. However, the revised regulations significantly expanded on the idea of a ‘provisional license.’
In the OCM’s May press release regarding the revised regulations, the primary item the office highlights is the provisional license. In the press release it states, “The revised regulations formalize the provisional license and the process to receive one. Applicants without a predetermined location seeking a license would be provided a provisional license after submitting initial information regarding their business and the applicant’s eligibility. Provisional licensing will lower up-front costs for applicants and allow them a form of ‘preapproval’ by the state as they seek a location for their cannabis business, raise funds and capital, and build their teams. These revised regulations also outline the general application process, allowing prospective applicants to prepare required materials before applications windows formally open.
It is very important to point out that in the OCM’s response to the first round of public comments on the draft regulations, the OCM said they heard the “concern about the provisional license structure, stating that language should provide details as to what are and are not permitted activities. These commenters also recommend clarifying the criteria necessary to secure a provisional license.”
The OCM heard those concerns and, as they stated in their public comment response, “Changes were made to the proposed regulations by adding a definition for provisional license and clarifying general activities that are permitted for that particular license type.”
In those same OCM responses to the first round of public comments, the OCM also heard a concern from a commenter that a provisional license needed to be more than six months. “The commenter stated it will be difficult for applicants to secure leases if not given more time.” And the OCM made a change based on that comment.
The OCM thankfully listened to the suggestions for a provisional license option for New York State’s cannabis entrepreneurs. A provisional license will help many middle-class New Yorkers with their dream to operate a legal cannabis license. The provisional licensee will be able to secure a cannabis bank account, and get investors and other support for their future cannabis business. I appreciate that as the OCM builds the plane while they fly it, the office is also listening to the public about some of the finer details.
The provisional license is exciting news. And it is encouraging that at the most recent Cannabis Control Board meeting, the OCM executive director provided a timeline that said the general application process will be approved by the Cannabis Control Board this September and the office will then share application information and guidance through their public outreach.
That timeline also said that applications will launch this October that includes, “Cultivator, processor, distributor, microbusiness and retail licensing applications.” Hopefully, that includes all the other adult-use license types as well, including the provisional license.
A graphic depicting the anticipated timeline for applications presented by the Office of Cannabis Management on July 20, 2023.
To conclude, it says in the New York State Lobbying Act, “the operation of responsible democratic government requires that the fullest opportunity be afforded to the people to petition their government for the redress of grievances and to express freely to appropriate officials their opinions on legislation and governmental operations”.
I encourage you to take advantage of the opportunity and freely express yourself every chance you get.