Who Can Own or Apply for a Cannabis License in New York?

To apply for a cannabis license in New York, you must meet the ownership, eligibility, disclosure, and control rules established under the MRTA and enforced by the Office of Cannabis Management (OCM).

These rules determine:

Who is allowed to apply
Who must be disclosed
Who is legally considered to control the business
Whether equity priority applies
Whether a license can be approved, denied, or later revoked

Basic Eligibility Requirements

To qualify for a New York cannabis license:

You must be 21 years or older
Some license types require New York residency
Past cannabis convictions do NOT disqualify you
- In many cases, they may qualify you for equity priority
You must fully disclose everyone who owns, funds, or controls the business

Failure to meet any of these requirements can result in denial.

Social & 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 before March 31, 2021)
From an impacted community
Low income(Household income under 80% of Area Median Income)
A minority-owned, women-owned, distressed farmer, or service-disabled veteran-owned business

SEE Benefits May Include

Priority application review
Fee reductions or waivers
Access to conditional license categories (such as CAURD)
Access to State support or assistance programs

Who Must Be Disclosed (True Parties of Interest)

All True Parties of Interest (TPI) must be disclosed and reviewed by OCM.

This includes:

All owners (any percentage)
Investors, lenders, and guarantors
Anyone controlling day-to-day operations
Anyone receiving profits, revenue, or financial benefit
Anyone with convertible interests
Anyone holding ownership through another entity

Failure to disclose a required party is grounds for license denial or revocation.

Ownership Limits & License Restrictions

New York strictly limits how many licenses — and which combinations — one person or entity may hold.

Key restrictions include:

No holding cultivation and retail licenses together
No ownership or financial control in more than three retail dispensaries
Only one delivery, cultivator, or microbusiness license
No co-ownership with someone whose license type creates a prohibited relationship

Indirect ownership violations count, including ownership through shell companies, trusts, or layered entities.

Control Rules & Silent Partners

OCM evaluates actual control, not just paperwork.

They review:

Who makes operational decisions
Who manages day-to-day activities
Who receives profits
Who influences decisions through financing or debt

If someone effectively controls the business — even if not listed — OCM treats them as an owner.

Undisclosed control is a violation.

Equity Ownership Rules After Licensing (SEE)

For SEE licensees:

You must maintain 51% or greater equity and control
Equity cannot be transferred for three years without OCM approval
Selling equity to a non-SEE party may require repayment of State assistance
All ownership changes must receive prior OCM approval

Violating these rules can result in the license being voided.

Criminal Record Rules

Cannabis arrests or convictions cannot disqualify you
If cannabis is the only issue, eligibility is legally protected
Non-cannabis convictions are reviewed case-by-case
OCM must provide written justification if denying based on criminal history

References

MRTA §3 — Definitions (True Party of Interest, Social Equity)
MRTA Article 4 — Equity & Reporting

License Types
Application Process
Local Zoning and Municipality

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