S 7890: Provides for minimum requirements for a conditional adult-use retail dispensary license.

  
  STATE OF NEW YORK ________________________________________________________________________ 7890 2025-2026 Regular Sessions  IN SENATE May 13, 2025 ___________ Introduced by Sen. COONEY -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the cannabis law, in relation to a conditional adult-use retail dispensary license The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The cannabis law is amended by adding a new section 72-a to 2 read as follows: 3 § 72-a. Conditional adult-use retail dispensary license. 1. The 4 following minimum requirements shall be met to become an eligible appli- 5 cant for this license: 6 (a) an applicant shall demonstrate: 7 (i) a significant presence in New York state, either individually or 8 by having a principal corporate location in the state; 9 (ii) it is incorporated or otherwise organized under the laws of New 10 York state; or 11 (iii) a majority of the ownership of the applicant are residents of 12 New York state by being physically present in the state no less than one 13 hundred eighty calendar days during the current year or five hundred 14 forty calendar days over the course of three years; 15 (b) if the applicant is an individual, or an entity with one or more 16 individuals, at least one individual shall: 17 (i) be justice involved, which means an individual that: 18 (A) was convicted of a marihuana-related offense in New York state 19 prior to March thirty-first, two thousand twenty-one; 20 (B) had a parent, legal guardian, child, spouse, or dependent who was 21 convicted of a marihuana-related offense in New York state prior to 22 March thirty-first, two thousand twenty-one; or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11965-01-5 
 S. 7890 2 1 (C) was a dependent of an individual who was convicted of a marihua- 2 na-related offense in New York state prior to March thirty-first, two 3 thousand twenty-one; and 4 (ii) provide evidence of the primary residence of the justice involved 5 individual at the time of such individual's arrest or conviction; and 6 (iii) hold or have held, for a minimum of two years, at least ten 7 percent ownership interest in, and control of, a qualifying business, 8 which means a business that had net profit for at least two of the years 9 the business was in operation; or 10 (c) if the applicant is a nonprofit organization, or wholly owned and 11 controlled by one, the nonprofit organization shall: 12 (i) be recognized as an entity pursuant to section 501(c)(3) of the 13 Internal Revenue Code; 14 (ii) intentionally serve justice involved individuals and communities 15 with historically high rates of arrest, conviction, incarceration or 16 other indicators of law enforcement activity for marihuana-related 17 offenses; 18 (iii) operate and manage a social enterprise that had at least two 19 years of positive net assets or profit as evidenced in the organiza- 20 tion's tax returns; 21 (iv) have a history of creating vocational opportunity for justice 22 involved individuals; 23 (v) have a justice involved individual or individuals on its board or 24 as officers; and 25 (vi) have at least five full-time employees. 26 2. At least fifty-one percent or more of the applicant shall be owned, 27 in the aggregate, by: 28 (a) at least one individual that satisfies the requirements for an 29 eligible applicant as set forth in paragraphs (a) and (b) of subdivision 30 one of this section or an entity that satisfies the requirements for an 31 eligible applicant as set forth in paragraphs (a) and (c) of subdivision 32 one of this section; and 33 (b) any other additional individuals, if any, who are justice 34 involved; and 35 (c) at least one individual that satisfies the requirements for an 36 eligible applicant as set forth in paragraphs (a) and (b) of subdivision 37 one of this section or an entity that satisfies the requirements for an 38 eligible applicant as set forth in paragraphs (a) and (c) of subdivision 39 one of this section shall own at least thirty percent of the applicant 40 and such individual or entity shall have sole control of the applicant 41 or licensee. 42 3. An eligible applicant shall be evaluated based on any of the 43 following criteria which shall be weighted as determined by the office: 44 (a) if the applicant is an individual, or an entity with one or more 45 individuals, whether the justice involved individual was themselves 46 convicted of a marihuana-related offense as set forth in regulation; 47 (b) the justice involved individual's primary residence at the time of 48 such individual's arrest or conviction: 49 (i) relative to areas with historically high rates of arrest, 50 conviction, or incarceration for marihuana-related offenses; 51 (ii) relative to areas with historically low median income; or 52 (iii) was provided by a public housing authority in New York state or 53 New York city; and 54 (c) the qualifying business based on: 55 (i) the number of employees employed by the business; 56 (ii) the number of years the business has been in operation; 
 S. 7890 3 1 (iii) the profitability of the business; 2 (iv) type of business and whether the business was a retail business, 3 or sold products or services directly to the end-consumer; 4 (v) whether the business had a physical location; or 5 (vi) whether the business received or resolved any violations, fines 6 or fees assessed against the business by state or federal regulatory 7 authorities; and 8 (d) any other factors as determined by the office. 9 4. The office shall approve, deny, or request additional information 10 in regards to a conditional adult-use retail dispensary licensee's 11 submission for location approvals within thirty days of receipt or the 12 location request shall be automatically approved so long as it complies 13 with the setback requirements of this chapter. 14 5. The office shall promulgate any rules and regulations to fully 15 implement this section and any rules and regulations adopted prior to 16 the effective date of this section shall not be invalidated. 17 § 2. This act shall take effect immediately.