Medical Marijuana Program Applications

Overview

The Department began accepting applications for registration as a registered organization on April 27, 2015. Each applicant was required to submit two fees with its application: a non-refundable application fee in the amount of $10,000, and a registration fee in the amount of $200,000. The $200,000 registration fee is to be refunded to the applicant only if the applicant is not issued a registration. The Department evaluated all completed applications received on or before the deadline in accordance with the criteria set forth in PHL § 3365 and Title 10 of the New York Code of Rules and Regulations (NYCRR) §§ 1004.5 and 1004.6.

The application instructions posted to the Department's Medical Marijuana Program website included a deadline for submission of questions regarding the application process. The Deadline for submission of questions was May 5, 2015. The Department posted responses to the questions submitted on May 21, 2015. The deadline for Department receipt of applications was June 5, 2015.

 

The State Department of Health (DOH) received 43 applications from businesses interested in becoming registered organizations to manufacture and dispense medical marijuana under the Compassionate Care Act. The law provides for the initial registration of up to five organizations in New York State and allows the Commissioner to register additional organizations in the future. Each registered organization may operate up to four dispensing facilities statewide, for an initial total of up to 20 geographically-dispersed dispensing facilities. The application forms, including instructions with the timeline for the registration process, are posted below.

Question and Answers

Questions concerning the Application for Registration as a Registered Organization or the application process were due to the Department by May 5, 2015, at 4:00 p.m. The Department evaluated the questions it received by the deadline. The questions and the Department's answers can be viewed by clicking on the link below.

Evaluations

The evaluation process considered information provided by applicants that responded to requirements of PHL §3365 and 10 NYCRR §§ 1004.5 and 1004.6. Applicants were required to submit in their applications, information and documentation setting forth specific details to show compliance with the applicable requirements of Title V-A of Article 33 of the Public Health Law and 10 NYCRR Part 1004. A combination of weighted scored criteria and other criteria were assigned to a number of areas and evaluated.

The Department carefully and thoroughly reviewed all information and documentation submitted by the applicants, and considered the above criteria set forth in statute and regulations in making its determinations. Each applicant's submissions were reviewed to determine how the applicants would meet the criteria, including but not limited to:

  1. the ability to manufacture approved medical marijuana products, each with a consistent cannabinoid profile (the concentration of total tetrahydrocannabinol (THC) and total cannabidiol (CBD) will define the brand), and each able to pass the required quality control testing as further described in 10 NYCRR § 1004.11;
  2. the ability to produce sufficient quantities of approved medical marijuana products, as further described in 10 NYCRR § 1004.11, as necessary to meet the needs of certified patients;
  3. the ability to maintain effective control against diversion of marijuana and medical marijuana products as further described in 10 NYCRR § 1004.13;
  4. the ability to comply with all applicable state and local laws and regulations;
  5. that, if selected, the applicant is ready, willing, and able to properly carry on the activities set forth in 10 NYCRR Part 1004;
  6. possession of, or the right to use, sufficient real property, buildings, and equipment to properly carry on the activity described in its operating plan, or in the alternative, the applicant has posted a bond in the amount of $2,000,000;
  7. that it is in the public interest that such registration be granted to the applicant;
  8. that the applicant's four proposed dispensing facilities are geographically distributed. To be geographically distributed, the proposed dispensing facilities of an applicant must be located in multiple counties across New York State to best serve certified patients in the Medical Marijuana Program state-wide. Geographic distribution will not be demonstrated by the applicant if the proposed dispensing facilities of the applicant are all concentrated in counties of New York State that are neighboring or in close proximity.
  9. the moral character and competence of board members, officers, managers, owners, partners, principal stakeholders, directors, and members of the applicant's organization;
  10. the applicant's proposed operating plan and suitability of the proposed manufacturing and dispensing facilities, including but not limited to the suitability of the location and the architectural and engineering design of the proposed facilities; and
  11. the applicant has entered into a labor peace agreement, as defined in PHL § 3360(14), with a bona-fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees.

Evaluation Scored Criteria

The following categories were included in the scored criteria:

  1. Product Manufacturing
  2. Security
  3. Transportation and Distribution
  4. Sales and Dispensing
  5. Quality Assurance and Staffing
  6. Real Property and Equipment
  7. Geographical Distribution
  8. Architectural Design
  9. Financial Standing
  10. Miscellaneous
    1. labor peace agreement;
    2. statement demonstrating that applicant is able to comply with all applicable state and local laws and regulations relating to the activities in which it intends to engage under the registration;
    3. timeline demonstrating the estimated timeframe from growing marijuana to production of a final approved product; and
    4. public interest

Applications

The New York State Department of Health (DOH) has posted the redacted registered organization applications from all 43 applicants.

 

DOH complied with its legal obligation to review every page of each application to determine appropriate exemptions under the Freedom of Information Law (FOIL) before making the applications public, a process which required the review of more than 60,000 document pages, much of it containing information that was personal, trade secret, critical infrastructure information, or security related information that could endanger the life or safety of any person.