New York CAURD: License Application Scoring and Selection – Part 2

We recently examined the Office of Cannabis Management (“OCM”) scoring criteria for eligible Conditional Adult-Use Retail Dispensary (“CAURD”) applicants. Provided certain minimum requirements are met, the top scoring applicants who rank a given region as their first preference will be selected for a provisional license in that region– up to the number of allocated licenses in that region.

The foregoing is vital because CAURD applicants cannot otherwise select their own real estate or region. Instead, regions are selected by the OCM. This begs the questions: 1) what regions can I select, and 2) how can I beat the competition for my preferred region?

During the application for a CAURD license, applicants are able to select up to five (5) regional preferences from the fourteen (14) listed regions within the State of New York for a dispensary location. The allocations for each region will be announced at a later date. The regions of New York State are: Bronx, Brooklyn, Capital Region, Central NY, Finger Lakes, Long Island, Manhattan, Mid-Hudson, Mohawk Valley, North Country, Queens, Richmond, Southern Tier, and Western NY.

Within each region, applicants will be ranked by scores, as described in the Scoring Criteria detailed here. 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.

Nonprofit provisional licensees will be selected only from the top scoring applications of this type and will not be mixed with the business criteria applicants. The OCM also noted that because of the anticipated smaller number of nonprofit licensees, these applicants will be selected within only two regional pools: New York City and the rest of New York State.

In the event of a tie between applicants where issuing a license to each applicant that had a tied score would exceed the limit on licensees in a given region, a random selection process will be used. The order in which applicants are randomly selected will be their final selection sequence and will determine who is granted a provisional license.

If a region does not reach its CAURD license allocation after all applicants have been selected for a provisional license based on their first regional preference, then the top scoring applicants who chose that region as their second regional preference will be considered for a provisional license in that region. If necessary, third, fourth, or fifth regional preferences will be considered until the region has reached its license allocation.

In the strangest about-face as it relates to the immediately preceding paragraph, the OCM noted that the selection process will prioritize assigning applicants to their first regional preference, even if that means an applicant would be put on a waitlist for a location in that region. Applicants on a waitlist for a location in a region will not be considered for selection in another region where they ranked lower on their application.

It appears that applicants may remain on a waitlist for their top region instead of being awarded their second ranked region. Hopefully the OCM will offer some clarity on the difference between being waitlisted for a first-choice region versus receiving a license in a second-choice region.

Stay tuned for any updates to the scoring criteria or the selection process as the OCM continues announcing their rules, regulations, and selection process.

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Licensing, New York