Due Diligence & Application Process Checklist
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State Requirements for Adult-Use Retail Dispensary Licensees
Information to be disclosed on our website that will address what OCM will be reviewing when
reviewing an adult-use application or licensee
Introduction
The Office of Cannabis Management (the Office) has set forth a comprehensive
application and review process for those looking to obtain an Adult-Use Retail
Dispensary license in the state of New York.
This document intends to serve as an overview of some of the components that the
Office reviews during the application process that may be of particular interest to local
municipalities, including New York City Community Boards.
Expressing an Opinion
Per Section 76 of Cannabis Law, local municipalities, including cities, towns or villages,
and in the case of New York City, Community Boards, have the ability to express an
opinion for or against the granting of licenses for adult-use cannabis dispensaries
and/or on-site consumption sites. The expressed opinion of the municipality will then
become part of the application record upon which the Office makes its recommendation
to the Cannabis Control Board to grant or deny a license.
When expressing an opinion on an application, please include the following information
in your submission to the Office:
• OCM Application ID Number
• Business Legal Name
• Name of the Applicant (Individual or Entity)
• In detail, reasons for recommending the granting or denying of the license
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Enforcement
In addition, Community Boards and local municipalities may relay to the state and/or
local enforcement information about activities that may be in violation of the Cannabis
Law.
Suspected violations or complaints can be reported online at:
Incident Reporting Form
Select: “A concern about a cannabis business” to file a report
Whenever possible please include the following information when submitting a
complaint:
• Name of business
• Time of alleged illicit activity
• Location of alleged illicit activity
• Pictures of alleged illicit activity
• Indicate if there has been previous police contact (i.e., 911 calls)
• Proximity to sensitive use locations (e.g., school, house of worship)
• Contact information of the person reporting the alleged illicit activity (i.e.,
phone number in case there are follow up questions).
State Requirements:
Below is an overview checklist of all the information the Office reviews for all adult-use
applicants. Additional detail on the elements included in each category can be found at
the end of this section.
Review Category
Additional Information
Plans
pg. 2
Dispensary Approval
pg. 3
Store Interior
pg. 3 - 4
Outdoor Signage
pg. 5-4
Adult-Use Advertising & Marketing Prohibition
pg. 5-6
Security Plan & Storage of Cannabis
pg. 6
Security System
pg. 6-7
Storage
pg. 9
Incident Reporting
pg. 9
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Plans
Category
Elements Reviewed
Plans
- Site Plan including, but not limited to:
o Location of the licensed premises
o Activities performed in each area of the licensed
premises
o Entrances and exits to both the property and premises
(including emergency exits)
- Energy & Environmental Plan
- Business Continuity Plan
Dispensary Approval
Category
Elements Reviewed
Dispensary
Approval
The licensed premises of the dispensary will only be approved if
the dispensary is in a location consistent with public convenience
and advantage standards, as determined by the Cannabis
Control Board. Factors that influence an approval decision
include:
- Classes and character of other licenses in proximity to the
location and in the particular municipality or subdivision
- Evidence that all necessary licenses and permits have been
obtained from the state and all other governing bodies.
- Whether there is a demonstrated need for such license.
- Effect of the grant of the license on pedestrian or vehicular
traffic, and parking, in proximity to the location.
- The existing noise level at the location and any increase in
noise level that would be generated by the proposed
premises.
- Any other factors specified by law or regulation that are
relevant to determine that granting a license would promote
public convenience and advantage and the public interest of
the community.
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Store Interior
Category
Elements Reviewed
Store Interior
- Licensees must post inside the store, in a manner to ensure
the information is plainly visible to all customers:
o The licensee’s retail dispensary license;
o Hours of operation;
o Public health and safety notifications that are clearly
displayed for patrons to see and read, stating:
• “Consuming cannabis is not allowed on this
premises.”;
• “Cannabis can impair concentration, coordination
and judgment. Do not operate a vehicle or
machinery under the influence of cannabis.”
• “Using cannabis, in any form, while you are
pregnant or chest/breastfeeding passes THC to
your baby and may be harmful to your baby. There
is no known safe amount of cannabis use during
pregnancy or while chest/breastfeeding.”
• “Adult-use cannabis products are for use only by
persons 21 years and older. KEEP OUT OF
REACH OF CHILDREN AND PETS.”
- Licensees must ensure that the interior of the store is kept in
an orderly manner, even during periods of heavy customer
traffic. This may require licensees to utilize a line with
stanchions, pre-orders, an appointment schedule, a pick-up
lane, or other traffic control methods.
Outdoor Signage
Category
Elements Reviewed
Outdoor
Signage
Licensees authorized to conduct retail sales to consumers may
advertise outdoors using signs, provided such signs:
- are for the purpose of alerting individuals to the location of a
retail dispensary authorized to sell cannabis products to
consumers;
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Category
Elements Reviewed
- are limited to, at a maximum, the following information:
o licensee’s name, entity name, or doing business as
name;
o dispensary address, phone number, email address and
website URL; and
o the nature of the business;
- are affixed to a building or permanent structure;
- are not on vehicles; and
- do not total more than two in number per licensed premises.
- Marketing or advertising is prohibited on any signs and
placards, regardless of their size or purpose, in arenas,
stadiums, other sport venues, shopping malls (unless alerting
individuals to the location of a retail dispensary located within
that mall), fairs that receive state allocations, and video game
arcades.
- A licensee shall remove the outdoor sign if the Office
determines the outdoor sign violates the provisions of
Cannabis Law.
- Or if the licensee fails to provide records to the Office upon
request that establishes the outdoor sign meets the
requirements of Cannabis Law and this Part.
Adult-Use Marketing & Advertising Prohibitions
Category
Elements Reviewed
Adult-Use
Marketing &
Advertising
Prohibitions
No marketing, advertising, or advertisement shall:
- depict noncompliant cannabis products;
- use or display images designed in any manner to be attractive
to individuals under twenty-one (21);
- use audio that may be attractive to individuals under twenty-
one, including but not limited to using children’s voices or
cartoon voices;
- be on or in the form of a billboard, unless otherwise allowed
pursuant to Outdoor Signage under Section 129.4;
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Category
Elements Reviewed
Adult-Use
Marketing &
Advertising
Prohibitions
- use or display colloquial references to cannabis or depictions
of cannabis, cannabis products, paraphernalia, or the imagery
or action of smoking or vaping, including but not limited to the
words “stoner”, “chronic”, “weed”, “pot”, or “sticky buds,”
unless such reference is used in the licensee’s name, entity
name, doing business as name, or logo;
- be false or misleading, including making any health claims or
a representation that use of cannabis has curative or
therapeutic effects;
- promote overconsumption or rapid consumption;
- promote product potency or THC concentration;
- promote price, price reductions, or any other discount,
customer loyalty program, or
- coupon, except as part of an environmental sustainability
program pursuant to Section 128.4(a) of Part 128 or otherwise
approved by the Office;
- falsely portray cannabis or cannabis products as being in
compliance with Article 3 and Article 5 of the Cannabis Law;
- assert that cannabis or cannabis products are safe because
they are regulated by the Board or Office;
- include medical symbols that might reasonably lead a
consumer to think the product is a medical product;
- utilize unsolicited pop-up or banner advertising on the internet
other than on age- restricted websites for people twenty-one
and over who consent to view cannabis-related material;
- produce any items for sale or promotional gifts, such as T-
shirts or novelty items, bearing a symbol of or references to
cannabis. This prohibition shall not pertain to cannabis
paraphernalia sold to consumers;
- advertise through free promotional items including, but not
limited to, gifts, giveaways, discounts, points-based reward
systems, customer loyalty programs, coupons, and "free" or
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Category
Elements Reviewed
"donated" cannabis products, except for: the provision of
branded exit packages by a licensee for the benefit of
customers after a retail purchase is completed, the provision
of free promotional items as part of an environmental
sustainability program pursuant to the retail packaging
sustainability program under Section 128.4(a), or otherwise
approved by the Office; or use a commercial mascot.
Security Plan & Storing of Cannabis
Category
Elements Reviewed
Security Plan &
Storage of
Cannabis
The licensee must take the following specific security measures:
- Implementing and maintaining a security plan. A security plan
must include, at a minimum, a description of the measures a
licensee will undertake to:
o Prevent unauthorized access to the licensed premises by
unauthorized persons and protect the physical safety of all
individuals on the premises;
o Deter theft or loss of cannabis products;
o Prevent loitering and ensure that only individuals engaging
in activity expressly or by necessary implication permitted
by the Cannabis Law are allowed to remain on the
premises of the licensee;
o Lock all perimeter doors and windows; and
o Provide for safe cash storage and handling, and
transportation of cash to financial institutions;
- Securing all entrances to the licensed facility to prevent
unauthorized access;
- Ensuring that both the inside, and the outside perimeter of the
licensed facility are sufficiently illuminated to facilitate
surveillance; and
- Maintaining trees, bushes and other foliage outside of the
licensed premises so as to prevent a person from concealing
themselves from sight.
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Security System
Category
Elements Reviewed
Security System
Licensees are required to have a security system at the
dispensary that utilizes commercial grade equipment to prevent
and detect diversion, theft, or loss. The system, at a minimum,
must include:
- A perimeter alarm that communicates with an internal
designee and a third-party commercial central monitoring
station when intrusion is detected;
- Video camera surveillance in all areas that may contain
cannabis products, all surveillance areas or rooms and at all
points of entry and exit, and in any parking lot, which shall be
appropriate for the normal lighting conditions of the area
under surveillance. Video camera surveillance shall meet the
following additional requirements:
- Video cameras shall be directed at all safes, vaults, sales
areas, and any other areas where cannabis products are
stored, handled, transferred or sold and for the purpose of
securing cash;
- Video cameras shall:
o be positioned at entry and exit points, and at each
point-of-sale area, to allow for the capture of clear and
certain identification of any person entering or exiting
the facility or at the point-of-sale, with a date and time
stamp;
o be able to continuously record during hours of
operation (retained for 60 days), even when the power
is out; and
o have remote access capability.
- A failure notification system that provides an audible, text or
visual notification of any failure in the security system. The
failure notification system shall provide an alert to the
licensee’s designated representative(s) within five minutes of
the failure, either by telephone, email, or text message;
- Limiting access to any surveillance areas and keeping all on-
site surveillance rooms locked. A licensee shall make
available to the Office or the Office’s authorized
representative, upon request, a current list of all individuals
who have access to any surveillance room or equipment; and
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Category
Elements Reviewed
- Keeping all locks, storage and security equipment in full
operating order and shall test and inspect such equipment at
regular intervals, not to exceed 30 calendar days from the
previous inspection and test. Records of security tests must
be maintained for five years and made available to the Office
upon request.
Storage
Category
Elements Reviewed
Storage
Cannabis and cannabis products shall be stored in a secure,
locked safe, vault, or other approved equipment or location within
the licensed premises to prevent diversion, theft or loss, and in
such a manner, as to protect against physical, chemical and
microbial contamination, and deterioration of the cannabis and
cannabis products.
Incident Reporting
Category
Elements Reviewed
Incident
Reporting
A licensee shall notify the Office in a manner prescribed by the
Office, of any breach of security or other incident set forth in this
Section immediately and, in no instance, more than 24 hours
following discovery of the security breach or incident.
Additional Resources
For more in-depth information please consider the following resources:
• Marihuana Regulation and Taxation Act
• Proposed Adult-Use Regulations
• Guidance for Adult-Use Retail Dispensaries
• CAURD Application Mockup
• CAURD Post Selection Application Mockup
