§ 64 — Selection criteria

§ 64. Selection criteria. 1. The board shall develop regulations for\nuse by the office in determining whether or not an applicant should be\ngranted the privilege of an initial adult-use cannabis license, based\non, but not limited to, the following criteria:\n (a) the applicant is a social and economic equity applicant;\n (b) the applicant will be able to maintain effective control against\nthe illegal diversion or inversion of cannabis;\n (c) the applicant will be able to comply with all applicable state\nlaws and regulations;\n (d) the applicant and its officers are ready, willing, and able to\nproperly carry on the activities for which a license is sought including\nwith assistance from the social and economic equity and incubator\nprogram, if applicable;\n (e) where appropriate and applicable, the applicant possesses or has\nthe right to use sufficient land, buildings, and equipment to properly\ncarry on the activity described in the application or has a plan to do\nso if qualifying as a social and economic equity applicant;\n (f) the applicant qualifies as a social and economic equity applicant\nor sets out a plan for benefiting communities and people\ndisproportionally impacted by enforcement of cannabis laws;\n (g) it is in the public interest that such license be granted, taking\ninto consideration, but not limited to, the following criteria:\n (i) that it is a privilege, and not a right, to cultivate, process,\ndistribute, and sell adult-use cannabis;\n (ii) the number, classes, and character of other licenses in proximity\nto the location and in the particular municipality, subdivision thereof\nor geographic boundary as established by the board;\n (iii) evidence that all necessary licenses and permits have been or\nwill be obtained from the state and all other relevant governing bodies;\n (iv) effect of the grant of the license on pedestrian or vehicular\ntraffic, and parking, in proximity to the location;\n (v) the existing noise level at the location and any increase in noise\nlevel that would be generated by the proposed premises;\n (vi) the ability to increase climate resiliency and minimize or\neliminate adverse environmental impacts, including but not limited to\nwater usage, energy usage, carbon emissions, waste, pollutants, harmful\nchemicals and single use plastics;\n (vii) the effect on the production, price and availability of cannabis\nand cannabis products;\n (viii) the applicant's history of violations and compliance with the\nlaws of another jurisdiction, in which they operate or have operated a\ncannabis license or registration, related to the operation of a cannabis\nbusiness;\n (ix) the applicant's history of violations related to the operation of\na business, including but not limited to, violations related to labor\nlaws, federal occupational safety and health law and tax compliance; and\n (x) any other factors specified by law or regulation that are relevant\nto determine that granting a license would promote public convenience\nand advantage, public health and safety and the public interest of the\nstate, county or community.\n (h) the applicant and its managing officers are of good moral\ncharacter and do not have an ownership or controlling interest in more\nlicenses or permits than allowed by this chapter, or any regulations\npromulgated hereunder;\n (i) the applicant has entered into a labor peace agreement with a\nbona-fide labor organization that is actively engaged in representing or\nattempting to represent the applicant's employees, and the maintenance\nof such a labor peace agreement shall be an ongoing material condition\nof licensure. In evaluating applications from entities with twenty-five\nor more employees, the office shall give consideration to whether\napplicants have entered into an agreement with a statewide or local\nbona-fide building and construction trades organization for construction\nwork on its licensed facilities;\n (j) the applicant will contribute to communities and people\ndisproportionately harmed by enforcement of cannabis laws through\nincluding, but not limited to, the social responsibility framework as\nprovided in section sixty-six of this article and report these\ncontributions to the board;\n (k) if the application is for an adult-use cultivator or processor\nlicense, the environmental and energy impact, including compliance with\nenergy standards, of the facility to be licensed;\n (l) the applicant satisfies any other conditions as determined by the\nboard;\n (m) if the applicant is a registered organization, the organization's\nmaintenance of effort in manufacturing and/or dispensing and/or research\nof medical cannabis for certified patients and caregivers; and\n (n) whether the applicant or its managing officers have been found to\nhave engaged in activities in violation of this chapter.\n 2. If the board is not satisfied that the applicant should be issued a\nlicense, the executive director shall notify the applicant in writing of\nthe specific reason or reasons recommended by the board for denial.\n 3. The state cannabis advisory board shall have the authority to\nrecommend to the board the number of licenses issued pursuant to this\narticle to ensure a competitive market where no licensee is dominant in\nthe statewide marketplace or in any individual category of licensing, to\nactively promote and potentially license social and economic equity\napplicants, and carry out the goals of this chapter.\n