S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7890
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               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:
 
   Section 1. The cannabis law is amended by adding a new section 72-a to
 read as follows:
   §  72-A.  CONDITIONAL  ADULT-USE  RETAIL  DISPENSARY LICENSE.   1. THE
 FOLLOWING MINIMUM REQUIREMENTS SHALL BE MET TO BECOME AN ELIGIBLE APPLI-
 CANT FOR THIS LICENSE:
   (A) AN APPLICANT SHALL DEMONSTRATE:
   (I) A SIGNIFICANT PRESENCE IN NEW YORK STATE, EITHER  INDIVIDUALLY  OR
 BY HAVING A PRINCIPAL CORPORATE LOCATION IN THE STATE;
   (II)  IT  IS INCORPORATED OR OTHERWISE ORGANIZED UNDER THE LAWS OF NEW
 YORK STATE; OR
   (III) A MAJORITY OF THE OWNERSHIP OF THE APPLICANT  ARE  RESIDENTS  OF
 NEW YORK STATE BY BEING PHYSICALLY PRESENT IN THE STATE NO LESS THAN ONE
 HUNDRED  EIGHTY  CALENDAR  DAYS  DURING THE CURRENT YEAR OR FIVE HUNDRED
 FORTY CALENDAR DAYS OVER THE COURSE OF THREE YEARS;
   (B) IF THE APPLICANT IS AN INDIVIDUAL, OR AN ENTITY WITH ONE  OR  MORE
 INDIVIDUALS, AT LEAST ONE INDIVIDUAL SHALL:
   (I) BE JUSTICE INVOLVED, WHICH MEANS AN INDIVIDUAL THAT:
   (A)  WAS  CONVICTED  OF  A MARIHUANA-RELATED OFFENSE IN NEW YORK STATE
 PRIOR TO MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-ONE;
   (B) HAD A PARENT, LEGAL GUARDIAN, CHILD, SPOUSE, OR DEPENDENT WHO  WAS
 CONVICTED  OF  A  MARIHUANA-RELATED  OFFENSE  IN NEW YORK STATE PRIOR TO
 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
 
              

   (C) WAS A DEPENDENT OF AN INDIVIDUAL WHO WAS CONVICTED OF  A  MARIHUA-
 NA-RELATED  OFFENSE  IN  NEW YORK STATE PRIOR TO MARCH THIRTY-FIRST, TWO
 THOUSAND TWENTY-ONE; AND
   (II) PROVIDE EVIDENCE OF THE PRIMARY RESIDENCE OF THE JUSTICE INVOLVED
 INDIVIDUAL AT THE TIME OF SUCH INDIVIDUAL'S ARREST OR CONVICTION; AND
   (III)  HOLD  OR  HAVE  HELD,  FOR A MINIMUM OF TWO YEARS, AT LEAST TEN
 PERCENT OWNERSHIP INTEREST IN, AND CONTROL OF,  A  QUALIFYING  BUSINESS,
 WHICH MEANS A BUSINESS THAT HAD NET PROFIT FOR AT LEAST TWO OF THE YEARS
 THE BUSINESS WAS IN OPERATION; OR
   (C)  IF THE APPLICANT IS A NONPROFIT ORGANIZATION, OR WHOLLY OWNED AND
 CONTROLLED BY ONE, THE NONPROFIT ORGANIZATION SHALL:
   (I) BE RECOGNIZED AS AN ENTITY PURSUANT TO SECTION  501(C)(3)  OF  THE
 INTERNAL REVENUE CODE;
   (II)  INTENTIONALLY SERVE JUSTICE INVOLVED INDIVIDUALS AND COMMUNITIES
 WITH HISTORICALLY HIGH RATES OF  ARREST,  CONVICTION,  INCARCERATION  OR
 OTHER  INDICATORS  OF  LAW  ENFORCEMENT  ACTIVITY  FOR MARIHUANA-RELATED
 OFFENSES;
   (III) OPERATE AND MANAGE A SOCIAL ENTERPRISE THAT  HAD  AT  LEAST  TWO
 YEARS  OF  POSITIVE  NET  ASSETS OR PROFIT AS EVIDENCED IN THE ORGANIZA-
 TION'S TAX RETURNS;
   (IV) HAVE A HISTORY OF CREATING  VOCATIONAL  OPPORTUNITY  FOR  JUSTICE
 INVOLVED INDIVIDUALS;
   (V)  HAVE A JUSTICE INVOLVED INDIVIDUAL OR INDIVIDUALS ON ITS BOARD OR
 AS OFFICERS; AND
   (VI) HAVE AT LEAST FIVE FULL-TIME EMPLOYEES.
   2. AT LEAST FIFTY-ONE PERCENT OR MORE OF THE APPLICANT SHALL BE OWNED,
 IN THE AGGREGATE, BY:
   (A) AT LEAST ONE INDIVIDUAL THAT SATISFIES  THE  REQUIREMENTS  FOR  AN
 ELIGIBLE APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (B) OF SUBDIVISION
 ONE  OF THIS SECTION OR AN ENTITY THAT SATISFIES THE REQUIREMENTS FOR AN
 ELIGIBLE APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (C) OF SUBDIVISION
 ONE OF THIS SECTION; AND
   (B)  ANY  OTHER  ADDITIONAL  INDIVIDUALS,  IF  ANY,  WHO  ARE  JUSTICE
 INVOLVED; AND
   (C)  AT  LEAST  ONE  INDIVIDUAL THAT SATISFIES THE REQUIREMENTS FOR AN
 ELIGIBLE APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (B) OF SUBDIVISION
 ONE OF THIS SECTION OR AN ENTITY THAT SATISFIES THE REQUIREMENTS FOR  AN
 ELIGIBLE APPLICANT AS SET FORTH IN PARAGRAPHS (A) AND (C) OF SUBDIVISION
 ONE  OF  THIS SECTION SHALL OWN AT LEAST THIRTY PERCENT OF THE APPLICANT
 AND SUCH INDIVIDUAL OR ENTITY SHALL HAVE SOLE CONTROL OF  THE  APPLICANT
 OR LICENSEE.
   3.  AN  ELIGIBLE  APPLICANT  SHALL  BE  EVALUATED  BASED ON ANY OF THE
 FOLLOWING CRITERIA WHICH SHALL BE WEIGHTED AS DETERMINED BY THE OFFICE:
   (A) IF THE APPLICANT IS AN INDIVIDUAL, OR AN ENTITY WITH ONE  OR  MORE
 INDIVIDUALS,  WHETHER  THE  JUSTICE  INVOLVED  INDIVIDUAL WAS THEMSELVES
 CONVICTED OF A MARIHUANA-RELATED OFFENSE AS SET FORTH IN REGULATION;
   (B) THE JUSTICE INVOLVED INDIVIDUAL'S PRIMARY RESIDENCE AT THE TIME OF
 SUCH INDIVIDUAL'S ARREST OR CONVICTION:
   (I)  RELATIVE  TO  AREAS  WITH  HISTORICALLY  HIGH  RATES  OF  ARREST,
 CONVICTION, OR INCARCERATION FOR MARIHUANA-RELATED OFFENSES;
   (II) RELATIVE TO AREAS WITH HISTORICALLY LOW MEDIAN INCOME; OR
   (III)  WAS PROVIDED BY A PUBLIC HOUSING AUTHORITY IN NEW YORK STATE OR
 NEW YORK CITY; AND
   (C) THE QUALIFYING BUSINESS BASED ON:
   (I) THE NUMBER OF EMPLOYEES EMPLOYED BY THE BUSINESS;
   (II) THE NUMBER OF YEARS THE BUSINESS HAS BEEN IN OPERATION;
 S. 7890                             3
 
   (III) THE PROFITABILITY OF THE BUSINESS;
   (IV)  TYPE OF BUSINESS AND WHETHER THE BUSINESS WAS A RETAIL BUSINESS,
 OR SOLD PRODUCTS OR SERVICES DIRECTLY TO THE END-CONSUMER;
   (V) WHETHER THE BUSINESS HAD A PHYSICAL LOCATION; OR
   (VI) WHETHER THE BUSINESS RECEIVED OR RESOLVED ANY  VIOLATIONS,  FINES
 OR  FEES  ASSESSED  AGAINST  THE BUSINESS BY STATE OR FEDERAL REGULATORY
 AUTHORITIES; AND
   (D) ANY OTHER FACTORS AS DETERMINED BY THE OFFICE.
   4. THE OFFICE SHALL APPROVE, DENY, OR REQUEST  ADDITIONAL  INFORMATION
 IN  REGARDS  TO  A  CONDITIONAL  ADULT-USE  RETAIL DISPENSARY LICENSEE'S
 SUBMISSION FOR LOCATION APPROVALS WITHIN THIRTY DAYS OF RECEIPT  OR  THE
 LOCATION  REQUEST SHALL BE AUTOMATICALLY APPROVED SO LONG AS IT COMPLIES
 WITH THE SETBACK REQUIREMENTS OF THIS CHAPTER.
   5. THE OFFICE SHALL PROMULGATE ANY  RULES  AND  REGULATIONS  TO  FULLY
 IMPLEMENT  THIS  SECTION  AND ANY RULES AND REGULATIONS ADOPTED PRIOR TO
 THE EFFECTIVE DATE OF THIS SECTION SHALL NOT BE INVALIDATED.
   § 2. This act shall take effect immediately.