Update: OCM Announces Number of Conditional Retail Dispensary Locations by Region - Cannabis Control Board Approves Recreational and Medical Cannabis Regulations

Updated August 24, 2022

By: Dustin M. Dorsino and Jeffrey B. Scheer

Update: On August 24, OCM announced the number of conditional adult-use retail dispensary locations it would allow for each region in New York State. There will be a maximum of 150 conditional adult-use retail dispensaries across the state, with 25 of those dispensaries being reserved for qualifying nonprofit applicants. The specific breakdown by region can be found on page 5 of the current scoring and selection guidance for conditional adult-use retail dispensary applicants, found here.  

The Cannabis Control Board (the Board), the authority responsible for approving rules and regulations governing New York's cannabis industry, has approved revised regulations governing New York’s adult-use and medical cannabis programs. At the Board's meeting on July 14, 2022, they approved revised proposed medical cannabis regulations and final regulations for conditional adult-use retail dispensary (CAURD) applications. The Board also approved the form of application and application period for CAURD licenses—which opens on August 25 and closes on September 26.

After receiving more than 600 distinct public comments during the public comment period ending June 30, the Board approved final CAURD regulations. These regulations were adopted on Aug. 3, 2022 when the Office of Cannabis Management (OCM) filed them with the state register. The initial proposed regulations were posted to the OCM’s website in March. CAURD licenses will be reserved for individuals that have experience running a successful business enterprise and who have themselves been, or had a parent, legal guardian, child, spouse or dependent convicted of a cannabis-related offense in New York prior to March 31, 2021.

The Board also approved the form of application and future application window for CAURD licenses. A mock-up of the form of application can be found here. Importantly, CAURD license applicants are not required to have a commercial property secured in order to apply.

After undergoing an initial public comment period, the Board directed OCM to file the revised proposed medical cannabis regulations for public comment. The 45-day public comment period began on August 3. Key revisions to the medical cannabis regulations include:

  • Streamlining the patient registration process to allow for auto-registration;
  • Revising the packaging, labeling, marketing and advertising requirements to align with the adult-use cannabis regulations introduced last month;
  • Removing the prior written approval requirement for product brands;
  • Revising the pharmacist supervision requirements to be in-person;
  • Adding several clarifying definitions; and
  • Adding energy and environmental-related provisions, including an annual benchmark of energy and water use and standards for lighting, dehumidification systems and the disposal of plant waste

Bond's cannabis attorneys continue to closely monitor developments to the rules and regulations surrounding New York's cannabis industry. For questions about the information provided above or about the cannabis industry in general, please contact Dustin M. Dorsino, Jeffrey B. Scheer or the Bond attorney with which you are regularly in contact.