We’ve been writing about eligibility criteria for licensure for the New York Conditional Adult-Use Retail Dispensary (“CAURD”) (here and here). In addition to the Office of Cannabis Management’s (the “OCM”) handy FAQ, it also recently published a scoring criterion to score eligible applicants after they have met the minimum requirements for each type of eligible applicant: 1) the business criteria applicant and 2) the nonprofit criteria applicant.
Here’s the long and short of it: once an applicant has met the minimum requirements, applicants with complete and verified applications are eligible to be scored and selected for a provisional CAURD license.
Within each region and based upon each eligibility criteria, applicants will be ranked by scores as calculated in accordance with the Scoring Criteria outlined below. The top scoring applicants who rank that region as their first preference, up to the number of allocated or available licenses in that region, will be selected for a provisional license in that region. It appears that the only way an applicant can guarantee their preferred region for a provisional CAURD license is to score the highest.
The scoring criteria
Applicants will be scored differently, based upon whether they slot into business criteria or nonprofit criteria. Although the OCM has not put specific number metrics to each of the below factors, they noted that the following factors will be weighted more heavily in the application scoring process.
For business criteria applicants, the most heavily weighted factors for the scoring process include:
- If the marijuana-related conviction was on the justice-involved owner with sole control themselves or a parent, legal guardian, child, spouse, or dependent;
- If the relevant arrest occurred in an area that has been negatively impacted by over policing and mass incarceration, or has historically low median household incomes;
- If the qualifying business has similar characteristics to a cannabis dispensary, such as the sale of retail goods, inventory management, a physical store, and paid employees; and
- The strength of the applicant’s qualifying business experience, as judged by length of time in operation, size of the business, net revenue, and compliance with state and local laws, rules and regulations.
For nonprofit criteria applicants, the most heavily weighted factors for the scoring process include:
- The demonstrated history of working with justice involved individuals, including length of time working with this population, having justice involved individuals on the Board, the proportion of program expenses that serve this population, and the location of the social enterprise;
- If the qualifying nonprofit has demonstrated good governance principles, as shown by audited financials and the ratio of overhead and programming costs;
- If the social enterprise has similar characteristics to a retail cannabis dispensary, such as the sale of retail goods, inventory management, a physical store, and paid employees; and
- The strength of the applicant’s social enterprise experience, as judged by the length of time in operation and size of the business.
Importantly the nonprofit criteria applicants will be scored and selected separately from other applicants, ensuring that all applicants are given fair chance at selection.
Stay tuned for Part 2, where we discuss the selection process for qualified CAURD license applicants.
The post New York CAURD: License Application Scoring – Part 1 appeared first on Harris Bricken Sliwoski LLP.