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.

Can you work at a dispensary with a criminal record 1

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.

Can you work at a dispensary with a criminal record 2

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.

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.

new york cannabis

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.