{"id":1554,"date":"2022-05-11T18:36:14","date_gmt":"2022-05-11T18:36:14","guid":{"rendered":"https:\/\/www.brotherprocessing.com\/?p=1554"},"modified":"2022-05-11T18:37:39","modified_gmt":"2022-05-11T18:37:39","slug":"what-a-cannabis-license-lottery-means-for-new-businesses","status":"publish","type":"post","link":"https:\/\/www.brotherprocessing.com\/what-a-cannabis-license-lottery-means-for-new-businesses\/","title":{"rendered":"What a Cannabis License Lottery Means for New Businesses"},"content":{"rendered":"

New states throughout the USA have legalized recreational cannabis for adults 21 and over in 2021. The issue is that there still are no legal recreational dispensaries in newly legalized states like New York to buy cannabis<\/a>. Slowly, the process is starting.<\/strong> Licenses are not going out on a first-come-first-served basis or if you can afford it. Depending on the state they are going out via a lottery system. Some states are doing their lottery based on those who apply with seniority going to individuals with criminal histories, minorities, or other people negatively affected by the laws before they changed. This means a few key things for people looking to get into the business of selling marijuana.<\/p>\n

Licenses for Those Negatively Affected by Previous Laws<\/h2>\n
\"Cannabis<\/a>

Cannabis Debit Card Processing for Licensed Dispensaries<\/p><\/div>\n

To undo some of the damage caused by decades of harsh Cannabis laws and a criminal justice system that more harshly targeted non-whites, licenses will first be offered to those communities negatively impacted. This means neighborhoods and communities previously punished for Cannabis will now have an opportunity to utilize the new industry as a means for betterment<\/strong>. Here is what the process looks like in the State of New York:<\/p>\n

“The OCM will promote social and economic equity applicants who have been harmed by the prohibition of cannabis for adult-use licenses, establishing a goal of awarding 50% of licenses to social and economic equity applicants.<\/em>” (source:\u00a0Cannabis Licensing NY State<\/a>)<\/p>\n

“Social and Economic Equity Applicants” refers to individuals who have faced jail time, fines, and other impacts due to Marijuana convictions.<\/strong> Because the laws have now changed, criminal histories related to Cannabis have been expunged. If an individual spent time in jail for a felony cannabis conviction. They could never get a good job due to that felony conviction, they have a better chance of receiving a Cannabis license in New York State.<\/p>\n

Each state is doing it a little differently. Connecticut is using a lottery system without the guidelines of NY.\u00a0 Licenses may not go to “social and economic equity applicants”. This means knowing what the particulars are for your state will make a difference in the licensing application process if you’re looking to get into the business.<\/p>\n

Getting a License is Just the Start<\/h2>\n

Receiving a cannabis cultivation or sales license<\/a> is a big deal. That isn’t the end of the journey but rather the beginning. There are serious financial obligations that those with licenses will have to meet to start and succeed in the Cannabis business. If you have the license to cultivate here are some questions you’ll have to answer:<\/p>\n