Can I Launch a Cannabis Business in NY with a Criminal Record?

Can you work at a dispensary with a criminal record

We’ve written before about the rollout of New York marijuana legalization, and how the state is working to encourage participation in the cannabis industry by populations who have been unduly affected by the War on Drugs. Herein lies a paradox. Because some would-be entrepreneurs have had personal, negative interactions with the justice system, many of them wonder: Can you work at a dispensary with a criminal record?

In today’s post, we’ll explore this question, as well as provide background on New York marijuana legalization as a whole. If you’re looking to enter the New York cannabis market, this is important information you’ll want to have at the ready.

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How to Open a Dispensary: Equity in New York Cannabis

The Empire State’s Marihuana Regulation & Taxation Act (MRTA) is notable for putting social equity front and center. With a mandate to promote racial, ethnic, and gender diversity when issuing cannabis licenses, advocates hope the program will have a positive, lasting, and galvanizing effect for historically marginalized license applicants.

To that end, the state stipulates that preference will be given to social and economic equity applicants, with a goal of 50% of licenses going to such applicants. These “Social and Economic Equity” applicants will be entitled to such benefits as fee waivers or reductions, access to low-interest or interest-free loans, and no-cost counseling services such as small business coaching and financial planning.

What’s more, these special dispensations are designed to prevent they’re being used as a “back door” for non-qualifying applications. The law prohibits the sale or transfer of a social equity license for three years after initial licensure unless the license is sold or transferred to another qualified social equity licensee (and the transfer is approved by the CCB).

We should note that, finally, the CCB has demonstrated an interest in maintaining geographic diversity among license holders.

Can a Felon Own a Dispensary? Crucial Questions

What bearing does a prior felony conviction have on participation in or ownership of a cannabis business in New York? While many New Yorkers will enjoy automatic expungement of some types of cannabis-related convictions, the implications on licensing are somewhat different. At present, a cannabis-related conviction automatically disbars the person from working at a medical dispensary.

However, the wording of the MRTA allows for some discretion on the part of the Cannabis Control Board. While mandating that cannabis businesses can’t employ those convicted in the last three years of a felony related to the running of a business, the language notes that “a felony conviction for the sale or possession of drugs, narcotics, or controlled substances is not substantially related” in this regard. In other words, the Board is signaling that—within limits—it’s open to changing the paradigm about prior convictions under a legal rubric acknowledged as discriminatory.

When it comes to ownership of a cannabis business, the Board requires full disclosure of any prior cannabis-related convictions. Again, this doesn’t equal automatic, permanent disqualification. Rather, the implication is that the Board will place any prior convictions in context.

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New York Marijuana Legalization: In Conclusion  

While the wording of the state’s licensing requirements may present something of a gray area, there’s no reason to leave yourself in the dark.

If you’re committed to securing a NY cannabis license, we’re here to help. Since 2009, Bridge West has helped more than 400 license holders all across the United States navigate the daunting array of rules, regulations, and pitfalls around applying for and securing a cannabis license. Reach out; we’d love to talk.

Cannabis Lending: Supporting Social Equity Entrepreneurs

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Even if forecasts for the legal cannabis industry continue to be largely bullish for many would-be entrepreneurs, the barriers to entering the industry are steep. On top of the long, arduous, and costly process of applying for a cannabis business license, there’s an uncomfortable truth that’s only now receiving the attention it should: A pervasive lack of social equity prevents many businesspeople from entering the market in the first place.

If you’re wondering how to open a dispensary without adequate cannabis financing, there are hopeful signs that the landscape is changing. In today’s post, we’ll share a few examples, as well as discuss why many banks and institutions remain wary of financing cannabis business ventures. Our hope is that by shedding light on this topic, we can help mobilize other states and municipalities to step up their efforts—and support real and lasting social equity in the industry.

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Cannabis Business Funding: Institutional Challenges

Denied basic banking services in the first years of the legal cannabis industry, most dispensaries were forced to handle large amounts of cash. Leery of running afoul of federal banking regulations, a small number of financial institutions currently service the cannabis industry.

The picture is rosier than it once was, though many hurdles still remain. As of the most recent data, more than 500 banks and roughly 170 credit unions work with the cannabis industry in a transparent and legal manner, according to the Financial Crimes Enforcement Network (FinCEN). Still, not all of these banks work with all sectors of the industry, making it all the more challenging to connect with adequate sources of funding.

This problem is magnified for some entrepreneurs by the issue of social equity, and the dawning awareness that certain populations—such as those most impacted by the War on Drugs—face significantly greater barriers to entering the industry than do others.

Fortunately, a greater number of cities and states are taking decisive steps to counter this. Here are some examples of the leaders.

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Social Equity in Cannabis: City-Run and State-Led Efforts

As the first state in the world to legalize adult-use cannabis, Colorado holds a special place in the cannabis firmament. But recognizing that significant inequity remains, last year the state launched the Cannabis Business Office. Tasked with incentivizing participation by historically marginalized groups, the office offers grants, low-interest loans, and technical assistance to entrepreneurs who qualify under Colorado’s social-equity program.

In New York marijuana news, the Marihuana Regulation & Taxation Act (MRTA) aims to do much the same thing. With the stated goal of promoting applicants from communities disproportionately impacted by cannabis prohibition, the MRTA also goes a step further. Pledging to “promote racial, ethnic, and gender diversity when issuing licenses for adult-use cannabis related activities,” the Act includes provisions for providing mentoring for such applicants, as well as those who qualify as minority or women-owned business, a distressed farmer, or service-disabled veterans.

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How to Open a Dispensary: Get Experience and Expertise on Your Side

New York and Colorado are hardly the only examples of forward-thinking cannabis equity programs. Illinois has repeatedly made headlines for its robust grant programs designed to redress justice system excesses. A couple of years ago, Illinois’ governor even signed off on half a million cannabis-related criminal record expungements.

Rest assured we’ll continue to report on social equity initiatives in cannabis. At Bridge West, we’re firm believers in ensuring our clients have access to all possible financial, planning, and advisory services to support successful entry into the legal cannabis industry. If you’re ready to join this fast-moving and exciting moment in cannabis history, we’d love to help you achieve your dreams. Reach out anytime.

What is a NY Microbusiness License?

new york cannabis

When New York joined the circle of legal cannabis states in March of 2021, the stampede officially began. With the New York cannabis market projected to capture some $4.6 billion in annual sales by 2027, there’s no shortage of well-funded marijuana ventures vying to get in the game. Given the intense competition generated by the rush to secure a New York cannabis business license, the situation could have seemed dire for small businesses. Fortunately, the state’s cannabis microbusiness program is designed to provide a foot in the door.

In today’s post, we’ll explore the concept and intent of the program, and what it may foretell about the larger New York marijuana legalization rollout. If you’re an independent New York business person looking to enter this fast-moving and exciting market, this article is for you.

Marijuana Legalization NY: A Leg Up for Small Businesses

Echoing a larger trend in marijuana legalization, New York opted to include provisions both for social equity and microbusinesses applicants in its still-evolving cannabis regulations. The aim was to encourage those entrepreneurs who might lack access to raising capital a path toward viability in a crowded and competitive environment.

While both social-equity and microbusiness license applicants may share some attributes, there are important distinctions between the two. As we’ve detailed previously, the New York social equity program aims to stimulate participation in the legal cannabis market to those historically harmed by the War on Drugs. The state’s microbusiness program can be likened to a separate “side door” for a specific category of entrepreneur.

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New York cannabis regulations specify different license types for cultivators, producers, and retailers. A microbusiness license is a blend of all three. For an analogy, one might look to the world of microbreweries, which often combine aspects of cultivation—of hops, grains, or other beer-making ingredients—with production (brewing) and sales (both wholesale and retail).

What makes microbusinesses “micro”? In this case, owners of such microbusiness ventures may not hold an interest in any other cannabis licensee, and may only distribute its own cannabis products to dispensaries. In other words, while the regulations allow—in fact, demand—vertical integration of such microbusinesses, these enterprises cannot be “stacked” into multiple holdings.

What’s more, there’s some crossover between social equity and microbusinesses. While the state’s cannabis offices—the Cannabis Control Board (CCB) and the Office of Cannabis Management (OCM)—have yet to issue complete directives, current regulatory language specifies: “The granting of such licenses shall promote social and economic equity applicants as provided for in this chapter.”

Marijuana Legalized NY: A Special Opportunity for Those Who Prepare

New York’s cannabis microbusiness program offers an important opportunity for entrepreneurs who either lack access to significant capital or may prefer the intimate and hands-on nature of running a craft business. This isn’t to say that securing such a license is going to be simple or easy.

That’s why partnering with an experienced guide such as Bridge West provides value during this especially dynamic moment in NY marijuana legalization. Drawing on our deep knowledge of New York’s regulatory and business environment, we guide our clients through all the necessary steps and hurdles. If you’re ready to get in business, we’d love to talk. Reach out anytime.

We Can Help 

If you own a cannabis business or are thinking about starting a cannabis business, we’d like to help. As a partnership of highly skilled and seasoned cannabis industry consultants and advisors, Bridge West Consulting is ready to guide you through this exciting and challenging landscape. Feel free to reach out to us anytime to schedule a consultation.

 

What is a NJ Microbusiness License?

new jersey cannabis

As one of the newest legal cannabis states, New Jersey is also one of the hottest. With the New Jersey marijuana market expected to reach some $1.5 to $1.8 billion within a year of adult-use sales, there’s no shortage of well-funded ventures lining up to enter the fray. Given the intense competition to secure a New Jersey cannabis business license, it sounds like a challenging environment for small business entrepreneurs. With the right approach, the state’s cannabis microbusiness program may offer a “side door” to viability.

What’s the New Jersey marijuana microbusiness plan all about? Today’s post explores its concept and intent. If you’re a New Jersey small business person looking to enter this highly dynamic market, this article is for you.

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NJ Cannabis Regulations: A Special Opportunity for Independent Players

Like many legal marijuana states, New Jersey regulations make accommodations both for social equity applicants and for those who, for various reasons, wish to operate a cannabis microbusiness. While different states employ various metrics to define such enterprises, the state’s guidelines are fairly conventional. A New Jersey marijuana microbusiness must:

  • Employ no more than 10 employees at one time
  • Have a physical plant of more than 2,500 square feet
  • Possess no more than 1,000 mature cannabis plants each month
  • Acquire no more than 1,000 pounds of usable cannabis each month

While in some states, such as neighboring New York, a cannabis microbusiness combines elements of cultivation, processing, and retail, a New Jersey micro business can be a cannabis cultivator, manufacturer, distributor, retailer, or delivery service.

What’s more, owners of microbusinesses are allowed certain dispensations. As we’ve reported previously, at least 35% of all cannabis licenses will be conditional, meaning that applicants need not be in compliance with every aspect of state regulations upon licensing, so long as the business plan provides sufficient indications their future operations will fall into complete compliance. Such licensees are expected to eventually convert to standard annual licenses, but microbusiness license holders may continue operating under conditional licenses.

And finally, applicants seeking conditional licenses must demonstrate that any financial stakeholder must have an adjusted gross income of no more than $200,000 ($400,000 if filing jointly). In the interests of spurring participation by those historically shut out of business ownership, this goes hand-in-hand with the state’s current policy specifying that at least 25% of the overall number of cannabis licenses issued will be earmarked for microbusinesses.

Marijuana NJ: Get Experience and Expertise on Your Side

New Jersey’s cannabis microbusiness program is a very special opportunity for entrepreneurs who lack access to significant capital, and it’s not at all assured that this opportunity will last. That’s why partnering with an experienced guide such as Bridge West is can be a game-changer during this especially dynamic moment.

Drawing on our deep knowledge of New Jersey’s regulatory and business environment, Bridge West guides our clients through all the necessary steps and potential hurdles. If you’re ready to join this fast-moving and exciting moment in cannabis history, we’d love to help you achieve your dreams. Reach out anytime.

We Can Help

If you own a cannabis business or are thinking about starting a cannabis business, we’d like to help. As a partnership of highly skilled and seasoned cannabis industry consultants and advisors, Bridge West Consulting is ready to guide you through this exciting and challenging landscape. Feel free to reach out to us anytime to schedule a consultation.

 

NY Cannabis Update: Who’s Who on the New York Cannabis Control Board?

new york cannabis

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Even given the dynamic and fast-moving nature of the cannabis industry, the upcoming launch of New York’s adult-use cannabis industry is noteworthy. With some sources projecting that New York cannabis sales could reach $3.7 billion by 2025, a large number of investors and entrepreneurs are lining up to enter the Empire State’s market.

If you’re interested in understanding New York cannabis licensing requirements, we suggest you get up to speed with our recent blog on the topic. In today’s post, we’re going to shift our focus to the five members of the New York Cannabis Control Board (CCB), the office charged—in concert with the state’s Office of Cannabis Management—with creating the regulatory framework for the New York cannabis industry.

A diverse group that includes veterans from the worlds of finance, labor unions, state politics, and beyond, the members of the CCB are some of the most crucial figures in New York cannabis regulation. Here’s an inside look at their backgrounds and their goals for the New York Cannabis Control Board.

New York Cannabis Control Board: Meet the Members

While the state has faced criticism for the slow rollout of the CCB, Governor Kathy Hochul has signaled her investment in “jumpstarting” the process. After the Governor announced the final two nominees to the CCB in late September, the new CCB held its first meeting in early October 2021. Here are the current members of the CCB and their most notable experience:

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Tremaine Wright, Chairwoman

As a former Brooklyn Assemblywoman and former chair of the Black, Puerto Rican, Hispanic and Asian Legislative Caucus, Tremaine Wright brings a wealth of knowledge around the issues facing communities of color. As current director of the Office of Financial Inclusion and Empowerment, Wright is expected to help ensure that cannabis businesses have adequate access to banking and other financial services.

Jen Metzger

Like Chairwoman Wright, Former State Senator Metzger brings strong legislative experience to the CCB. First active in local government in the Town of Rosedale and later elected as a New York State Senator for a term, Metzger worked to help fight predatory utility rates and practices and promote greater access to broadband in underserved areas.

Adam Perry

A partner at the Buffalo law office of Hodgson Russ, Adam Perry specializes in employment-related litigation and helps manage the firm’s cannabis and hemp-related practice. According to Speaker of the New York State Assembly speaker, Carl Heastie: “Adam W. Perry is deeply invested in New York’s communities, and will bring that dedication to his new role and be an asset to the Cannabis Control Board.”

Reuben R. McDaniel, III

As the President and CEO of DASNY, Reuben McDaniel is an accomplished executive known as a team player. Prior to his appointment, McDaniel was an investment banker with more than three decades of experience in public and corporate finance.

Jessica Garcia

A rising figure in the labor union world, Jessica Garcia serves as Assistant to the President of a national union representing workers from across the food supply chain, retail, and healthcare. What’s more, Garcia brings strong experience as an organizer and immigrant policy advocate. As such, she serves on several prominent state and local boards.

New York Cannabis Control Board: The Groundwork for Success

Learning about the members of the CCB is a valuable facet of the landscape in the New York cannabis industry, but understanding how the board members’ interests and backgrounds may influence the sector could be a business differentiator. That’s why partnering with an experienced guide such as Bridge West can dramatically increase your chances of success.

Drawing on our deep knowledge of New York’s regulatory and business environment, we guide prospective applicants through the maze of rules and regulations involved in securing a cannabis license there.

Ready to talk? Reach out anytime.

How to Win a Cannabis License In New Jersey as an Impact Zone Business

new jersey impact zone business

As of fall 2021, New Jersey is gearing up to launch its much-anticipated legal cannabis industry. In a previous article, we laid out the cannabis licensing requirements in the Garden State (we suggest you revisit it to familiarize yourself with the landscape).

In today’s post, we’ll be drilling down a little deeper into the topic of “impact zones.” These state-defined regions are earmarked for investments generated by cannabis revenues. What’s more, license applications from entrepreneurs with ties to these regions will be given priority when it comes to licensing approvals.

If you’re interested in applying for a cannabis license in New Jersey and you qualify as an impact zone business, we urge you to make the most of this special opportunity. Here’s everything you need to know.

Cannabis Licensing Requirements in New Jersey: What is an Impact Zone?

Earlier this year, New Jersey’s newly-enacted adult-use law established the legal framework for the state’s adult-use cannabis industry. And from the start, the state’s Cannabis Regulatory Commission (CRC) has demonstrated a commitment to addressing social impact in cannabis. That’s why the CRC’s application criteria prioritizes residents of impact zones: municipalities negatively impacted by unemployment, poverty, and/or past cannabis enforcement activity. 

Although the State has not published a list of municipalities that qualify as impact zones, based on the criteria stated in the law, New Jersey’s designated impact zones likely include: 

  • Atlantic City
  • Bridgeton
  • Camden
  • Commercial Township
  • East Orange
  • Elizabeth
  • Franklin Township
  • Irvington
  • Jersey City
  • Newark
  • Maurice River Township
  • Millville
  • New Brunswick
  • Orange City
  • Passaic
  • Paterson
  • Perth Amboy
  • Plainfield
  • Quinton Township
  • Salem City
  • Trenton
  • Vineland

The CRC will prioritize impact zones businesses in the application process, and the law establishes three ways to qualify as an impact zone business:

  1. The business is located, or intends to be located, within an impact zone; 
  2. More than 50% of the ownership interest is held by a current resident or residents of an impact zone who have resided there for three or more consecutive years at the time of application; or 
  3. The business presents a plan, along with an attestation, to ensure that: 
    1. At least 25% of its employees reside in any of the State’s impact zones, and 
    2. Among the employees who reside in impact zones, at least 25% reside in the impact zone nearest to the cannabis business’s location or intended location.

What’s in it for the actual impact zones? Quite a lot, actually. State regulations call for 70% of cannabis-derived revenues to be reinvested in these areas in the form of grants, loans, reimbursement of expenses, and other considerations. And with New Jersey’s cannabis market set to achieve a projected value of $1.2 to $1.5 billion by 2023, these programs are expected to generate quite an impact indeed.

That’s not the end of the story when it comes to New Jersey’s efforts to level the playing field. In addition to the priority given to residents of impact zones, the CRC will allocate 15% of licenses to minority-certified businesses and an additional 15% to those owned by women or disabled veterans.

Cannabis Licensing Requirements in New Jersey: Maximize Your Chances of Success

While the CRC hasn’t yet made public the exact components of its point scale, we can draw upon our deep experience in the industry to forecast some of the criteria New Jersey’s commission will be considering:

  • Direct experience in the cannabis industry
  • A detailed business plan that includes all pertinent, cannabis-specific aspects—including compliance software and reporting tools 
  • Demonstration of financial and managerial competence
  • Environmental-impact plans and sanitation procedures 
  • Safety and security procedures, including those for cybersecurity and diversion prevention
  • An emergency management plan, as well as procedures to report adverse events

If you’re committed to entering New Jersey’s burgeoning legal cannabis industry, Bridge West is ready to help. With a proven track record—since 2009, we’ve helped over 400 applicants all across the United States win cannabis business licenses—we guide entrepreneurs through the many rules, regulations, and potential pitfalls involved in securing a cannabis license. Whether you qualify due to your designation as an impact zone business, are a diversely-owned business, or are any other type of applicant, we have the experience and skill to help you chart a course for success. Ready to talk? Reach out anytime.

How to Win a Cannabis License in New Jersey as a Social Equity Business

new jersey social equity business

The opening of New Jersey’s cannabis market is among the most hotly anticipated of the last few years. No surprise: With a value projected to reach between $1.2 and $1.5 billion by 2023, the Garden State will soon join the top rank when it comes to legal cannabis markets. And to the delight of many industry watchers and restorative justice advocates alike, New Jersey is signaling that social equity in cannabis will be front and center.

We’ve written about the cannabis licensing requirements in New Jersey before (and we suggest you revisit that article to familiarize yourself with the landscape). In today’s post, we’ll talk about some of the ways in which the state plans to incentivize diversely owned businesses, restore communities negatively impacted by the War on Drugs, and lay the groundwork for a robust, fair, and equitable cannabis market.

And if you’re looking to join New Jersey’s fast-growing cannabis industry, take special note: We’ll share some of the ways that you, as a social equity applicant, can gain a competitive advantage.

Cannabis Licensing Requirements in New Jersey: Opportunities for Diverse and Impact Zone Applicants

New Jersey is hardly the only state to focus on social equity in cannabis. But thus far, the state’s cannabis regulations—laid out in the recently adopted adult-use law—have won praise for keeping the focus on previously underserved regions and populations. And in addition to redressing the harm done to specific populations and communities through police and justice system overreach, the state’s plan is designed to leverage cannabis-derived revenues to spur vigorous reinvestment in these affected areas.

Under state law, New Jersey’s Cannabis Regulatory Commission is charged with imposing a “social equity excise fee” on the cultivation of adult-use cannabis. And under the current structure, the proceeds from this fee—in addition to a hefty 70% of cannabis sales tax revenue—is to be set aside for initiatives designed to offset disparities related to drug laws and aggressive policing. These funds will take the form of grants, loans, reimbursement of expenses, and other financial considerations.

Through related policies, the CRC will earmark nearly one-third of all cannabis business licenses to diversely owned businesses, as well as prioritize applicants located in “impact zones” (defined as those municipalities negatively impacted by unemployment, poverty, or past cannabis enforcement activity).

Cannabis Licensing Requirements in New Jersey: The Groundwork for Success

As should be clear, New Jersey’s focus on social equity in cannabis represents a special opportunity for a number of populations. But on their own, these attributes aren’t enough to guarantee success when it comes to crafting a successful cannabis business license application.

Whether or not you’re a designated diverse applicant or reside in an impact zone, partnering with Bridge West can dramatically increase your chances of winning a cannabis license in New Jersey. With over a decade of experience in the field, we guide prospective applicants through the maze of rules and regulations involved in securing a cannabis license. And with access to funders, mentors, and other key stakeholders, Bridge West can enhance your chance of success in this fluid, competitive, and fast-moving industry.

Ready to talk? Reach out anytime.

How to Get Licensed in South Dakota’s Medical Cannabis Market

South Dakota

In November of 2020, South Dakota made history as the first state to legalize both medical and adult-use cannabis in the same year. And while the adult-use part of the equation is currently in legal limbo—more on that in a moment—the state is moving ahead on the medical-use front.

If you’re interested in entering the cannabis industry in the state of South Dakota, it’s high time to dive into the cannabis licensing requirements. In today’s post, we’ll share what we know about the legal status of cannabis in South Dakota. We’ll also introduce a timeline for the South Dakota medical cannabis licensing requirements.

Cannabis Licensing Requirements in South Dakota: The Adult-Use Question

Although South Dakotans voted to approve adult-use cannabis by a 54%-to-46% margin, Governor Kristi Noem has pushed back, instructing a state official to challenge the measure in court on technical grounds. There’s currently no word on when the South Dakota Supreme Court will issue a ruling; stay tuned on that front. Incidentally, Noem also attempted, unsuccessfully, to thwart the state’s medical-cannabis program. As of this writing, the state is slated to launch a patient registry program in November of 2021.

Medical Cannabis Licensing Requirement: What We Know

With the state currently formulating its guidelines, many questions remain as to how South Dakota will manage the cannabis business licensing process. But with the State Legislature tasked with providing a legal framework for retail medical sales by April 1, 2022, the clock is ticking.

At present, SDCL 34-20G establishes the following cannabis business types:

  • Cultivator
  • Manufacturer
  • Dispensary
  • Testing facility

These cannabis businesses are referred to collectively as “establishments.” And while the exact cannabis licensing requirements in South Dakota are still a work in progress, the Department of Health will issue those details on or before October 29, 2021.

If you’re interested in applying for a cannabis license in South Dakota, that means it’s Go Time. Even if the exact licensing requirements are in flux, now’s the time to be formulating the business and operations plans you’ll need to have when it’s time to apply. Let’s drill a little deeper into both:

Business Plan: In most states, having a business plan is required for every type of cannabis license application. Moreover, a well-crafted business plan is a vital roadmap for you and your team. Nailing this document is your best opportunity to demonstrate your organizational and entrepreneurial knowledge, your grasp of the commercial and regulatory playing field, and the ways your business will positively impact the community you serve. And having a compelling and clear-eyed business plan is a major factor in your ability to attract investors, partners, and other key players.

Operations Plan: If your business plan is your strategic overview, your operations plan is your tactical roadmap. It’s where you’ll spell out all the details relating to safety, compliance, and the day-to-day operations of your establishment. Think of it as an “operator’s manual” for running a successful, compliant, and profitable cannabis business.

Cannabis Licensing Requirements in South Dakota: Wrapping Up

If you’re serious about entering the South Dakota cannabis industry, we’d like to help. As a partnership of highly skilled and seasoned cannabis industry consultants and guides, Bridge West is ready to help new and emerging cannabis companies find financial and banking solutions, connect with potential stakeholders and chart a course for success in this exciting new landscape. Feel free to reach out to schedule a consultation at any time.

How to Get Licensed in New Mexico’s Medical Cannabis Market

new mexico cannabis

If you follow cannabis news in New Mexico, you know it’s been a heady few months: After years of speculation, adult-use cannabis has officially crossed the finish line. With Governor Michelle Lujan Grisham (D) having convened a special legislative session, in June of 2021 the Land of Enchantment officially threw open the doors for adult-use cannabis cultivation and possession.

You’ll note that “adult-use cannabis sales” aren’t on that list. That’s because the state’s Cannabis Control Division was granted a three-month delay in order to formulate adult-use cannabis licensing requirements in New Mexico. But as of September 1, 2021 at the latest, the state is slated to begin processing license applications. And once those adult-use dispensary licenses are issued and cannabis training programs get underway, the state is tasked with beginning adult-use sales no later than April 1, 2022.

What does this mean for those looking to enter the New Mexico cannabis industry? With some sources estimating that the state’s legal cannabis industry is poised to generate some 11,000 new jobs and $300 million in annual sales, it’s Go Time for New Mexico cannabis entrepreneurs. And that means the competition is going to be fierce, with the state scrutinizing each and every application to weed out those deemed unqualified or unprepared.

If you’re looking for a foot in the door, we’d like to help. We’re Bridge West, a team of seasoned cannabis industry veterans with decades of combined experience and a proven approach to cannabis business licensing. We offer our clients an unparalleled advantage in terms of start-up business planning, licensing and advisory services, and much, much more. We invite you to begin your education with this overview of the regulations governing the cannabis licensing requirements in New Mexico.

Adult-Use Cannabis Licensing Requirements in New Mexico: The Regulatory Framework

New Mexico administers its cannabis program through the Cannabis Control Division. And while the state currently offers a number of cannabis business licenses, we’ll narrow our focus to New Mexico’s adult-use cannabis licensing requirements for today’s purposes.

New Mexico Adult-Use Producer License: This license permits the cultivation of cannabis plants (including the testing of unprocessed cannabis products by a licensed cannabis testing laboratory). License-holders may transport unprocessed cannabis products to other licensed cannabis establishments, as well as sell cannabis products wholesale.

Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises.

New Mexico Adult-Use Manufacturer License: This license permits the holder to process cannabis into edibles, oils, and other products; package cannabis products; have cannabis products tested by a testing facility; and purchase, acquire, sell, and transport wholesale cannabis products to other licensed establishments.

Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises

New Mexico Adult-Use Retailer License: This license allows the holder to sell cannabis products to consumers, qualified patients, primary caregivers, and reciprocal participants.

Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises

New Mexico Adult-Use Cannabis Courier: This license permits the holder to transport cannabis products directly to consumers, qualified patients, primary caregivers, and reciprocal participants.

Licensing fees: $1,500/year; $1,000/year for each additional licensed premises

New Mexico Cannabis Consumption Area: Regulated in a similar manner to a microbrewery, these are areas where cannabis products (but not alcohol; that’s a separate license) may be consumed.

Licensing fees: $2,500/year

New Mexico Adult-Use Cannabis Testing Laboratory: This license permits the holder to sample, collect, test, and transport cannabis products for the purpose of testing and assessment.

Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises

In addition, New Mexico will issue licenses to cannabis servers, cannabis training and education programs, and several types of vertically integrated cannabis businesses.

Now that you know your breadth of options, let’s turn our focus to a few of the key points you’ll need to keep top of mind if you’re preparing to apply for a New Mexico cannabis license.

Cannabis Licensing Requirements in New Mexico: General Considerations

Following the lead of other states intent on redressing the inequities of the War on Drugs, New Mexico is demonstrating a commitment to social equity in its legal cannabis industry. This means, among other things, that while applicants may not have prior convictions “substantially related to the qualifications, functions or duties” implicit in their roles, this does not necessarily include prior cannabis convictions. At present, disqualifying felony convictions include fraud, embezzlement, deceit, or ‘involving a minor’ in drug sales.

As implied by our comments earlier in this article, New Mexico has also signalled an openness to vertical integration. At present, multiple licensees may occupy a single licensed premises, and the CCD may not place restrictions on the number of licensees occupying a single licensed premises, or on the number of locations of a single licensed cannabis business.

Cannabis Licensing Requirements in New Mexico: Business and Operations Plans

Yes, a business plan is required to be submitted with cannabis license applications. Importantly, it is also the case that a strong and clear-eyed business plan is one of the most important foundational tools for you and your stakeholders. And when the CCD is reviewing your application, your business plan will provide a singular opportunity for you to demonstrate your strong grasp of the New Mexico cannabis industry, your understanding of the legal and regulatory playing field, and the ways you plan for your business to positively impact the community you serve.

Over and above this, having a solid business plan is a major factor in your ability to attract investors, partners, banking and other related financial institutions, and additional key players.

If a business plan is a strategic roadmap for your enterprise, an operations plan is its more tactical counterpart. Submitting a solid operations plan will signal to the license review board how you’ll ensure that your facility will be in compliance with the state’s security, diversion, public safety, and other requirements. We encourage you to envision your operations plan as an “operator’s manual” for running a successful, compliant, and profitable cannabis business.

Cannabis Licensing Requirements in New Mexico: In Conclusion

If you’re interested in gaining entrance to the New Mexico cannabis industry, we can help. As a partner filled with highly-skilled and seasoned cannabis industry consultants and guides, Bridge West is ready to help new and emerging cannabis companies find financial and banking solutions, connect with potential stakeholders, and chart a course for success in this exciting—yet challenging—new landscape. We invite you to reach out anytime to schedule a consultation.

Cannabis Licensing Requirements in Ohio: State-Specific Regulations and Laws

Ohio cannabis licensing requirements

As of Summer 2021, Ohio is preparing to open the gates to a truly exciting opportunity in the state’s booming cannabis industry: As part of the Ohio’s cannabis licensing requirement, a call for applications for some 73 medical dispensary licenses, to join the Buckeye State’s current total of 60 (only 57 of which are provisionally licensed as of this moment). If all these licenses are issued, it will more than double the state’s total of dispensaries, up to 130. But there’s more to cannabis licensing requirements in Ohio.

Competition for these licenses is expected to be fierce, and we urge anyone interested in entering the cannabis industry there to familiarize themselves with the current license application process and specifics for medical cannabis dispensaries. If you’re looking to enter the Ohio cannabis industry, we want to help. We’re a team of seasoned cannabis industry veterans, with decades of combined experience and a proven approach to cannabis business licensing. With that in mind, here’s an overview of cannabis licensing requirements in Ohio.

Cannabis Licensing Requirements in Ohio: The Dispensary Application Process

Following the lead of other states such as Connecticut, Ohio is instituting a lottery process with this round of dispensary licenses. For applicants, this means that—once they’ve demonstrated their suitability on the strength of their application—they’ll be entered into a lottery within their respective districts. The goal is to provide a more transparent, streamlined and fair process. And it means that in addition to paying extra-careful attention to all the details in their application, potential licensees will need to have a firm grasp on the state’s current and proposed geographic distribution of dispensaries.

All told, Ohio has 31 medical marijuana districts, with the Ohio Board of Pharmacy dictating how many dispensary slots will be made available per district. The Board’s calculations will depend upon such factors as: 

  • Total population of the state
  • The number of patients seeking access to medical marijuana
  • The geographic distribution of current dispensary sites

The goal of the forthcoming request for applicants is to increase the number of dispensaries in several districts. For instance, the number of Hamilton Country dispensaries will rise from 3 to 11; Franklin County dispensaries going from 6 to 15, and Cuyahoga dispensaries going from 5 to 12. 

While potential licensees may submit applications in any number of districts, no more than 66% of licenses in any one district will be awarded to a single applicant. And regardless of which district (or districts) you plan to apply for a license in, it’s important to understand that such applications are scored on the basis and strength of their business plan, their operations plan, and their patient care plan. What follows is by necessity an overview; we urge you to familiarize yourself with the specifics in the state’s Dispensary Application Instructions.

  • Business Plan: In addition to being a requirement for a dispensary license application, a well-crafted business plan is a vital roadmap for you and your team. From the licensing board’s point of view, it’s your single best opportunity to demonstrate your organizational and entrepreneurial knowledge, your grasp of the commercial and regulatory playing field, and the ways your business will positively impact the community you serve. Over and above this, having an airtight and realistic cannabis business plan is a major factor in your ability to attract investors, partners, and other key players. 
  • Operations Plan: How will you ensure that your facility is in compliance with the state’s security, diversion, public safety, and other requirements? All this information and more should be included in your operations plan. Think of it as your guidebook for all your daily, weekly, monthly, and yearly operations, an “operators manual” for running a successful, compliant, and profitable cannabis business.
  • Patient Plan: Ohio’s requirement for a patient plan includes three sections: Staff education and training; patient care and education; and patient care facilities. The state expects applicants to describe the educational content given to employees during their training, as well as the duration, source, and frequency with which they’re updated. What’s more, the state requires specific information on the nature, layout, and size of all areas devoted to patient care. As with all aspects of the application, it’s a highly granular list of requirements demanding close attention to detail and planning.

Cannabis Licensing Requirements in Ohio: The Regulatory Framework

Of course, dispensaries aren’t the only types of cannabis business license opportunities. Ohio’s medical cannabis program, administered through the Ohio Medical Marijuana Control Program (OMMCP), currently allows for four types of cannabis business license:

  • Cultivation: In Ohio, cannabis cultivation is licensed and regulated by the Department of Commerce (ODC). Its guidelines specify two types of licenses—Level I and Level II—and it’s important to note that at present, applicants may only apply for or hold one of the two types:
  • A Level I Cultivator License permits a cultivator to operate up to 25,000 square footage of space designated as a cannabis cultivation area. The ODC may issue up to 12 Level I Cultivator Licenses. The application fee is twenty thousand dollars ($20,000). In addition, it’s an Ohio cannabis licensing requirement that licensees must establish and maintain an escrow account in an in-state chartered financial institution in the amount of at least $750,000.
  • A Level II Cultivator License permits a cultivator to operate up to 3,000 square footage of space designated as a cannabis cultivation area. As with Level I licenses, the ODC may issue up to 12 Level II Cultivator Licenses. The application fee is $2,000; as with Level I licenses, licensees must establish and maintain an escrow account in an in-state chartered financial institution, but in this case, the minimum amount is $75,000.
  • Processing: Also regulated by the Department of Commerce, these licenses regulate processors of medical marijuana. These businesses can take several forms, including: Standalone facilities; vertically integrated facilities; and plant-only processors which distribute plant material directly to licensed dispensaries.

Regardless of the type, license holders are allowed to obtain medical marijuana from one or more licensed cultivators and process cannabis into a form as described in the state’s laws and regulations, as well as sell and/or deliver processed cannabis to one or more licensed retail dispensaries. The ODC may issue up to 40 processor licenses; the application fee for such licenses is $10,000.

  • Testing: The Department of Commerce regulates these licenses, which are granted to both universities and privately operated laboratories. There is no limit to the number of testing lab licenses that may be awarded by the Department.
  • Medical Dispensaries: In Ohio, medical cannabis dispensaries are regulated by the Board of Pharmacy (BOP). The number of dispensary licenses awarded is calculated based on population density, geographic area, and other factors. For instance, a dispensary may not be less than 500 feet from a school, church, public library, public playground, or public park. What’s more, local municipalities may impose their own zoning laws; you can find a complete list of guidelines and requirements in the state’s laws and regulations.

The application fee for a dispensary license is $5,000. What’s more, applicants must provide proof they have adequate liquid assets to cover all expenses and costs of the first year, currently defined by the state as a minimum of $250,000.

In Conclusion

If you’re serious about entering the Ohio cannabis industry, we’d like to help. As a partnership of highly skilled and seasoned cannabis industry consultants and guides, Bridge West is ready to help new and emerging cannabis companies find financial and banking solutions, connect with potential stakeholders, understand the Ohio cannabis licensing requirement, and chart a course for success in this exciting—but challenging—new landscape. Feel free to reach out to us anytime to schedule a consultation.