
What is a True Party Interest in New York?
True Party of Interest includes, but is not limited to the following:
a: applicant or licensee’s sole proprietor, partner (whether limited or general), member,
manager, president, vice president, secretary, treasurer, officer, board member, trustee, director,
or a person with equivalent title to each of the foregoing;
b: Stockholder of applicant or licensee;
c: each person that makes up the ownership structure of each level of ownership for an
applicant or licensee that has a multilevel ownership structure, including, but not limited to,
subsidiaries, affiliates, parents, shells, and holding companies;
d: person with a right to receive aggregate payments in a calendar year, as part of a risk sharing or services agreement, that exceeds the greater of: 1) 10% of gross revenue, 2) 50% of net profit of a licensee, 3) $100,000 from the licensee in a calendar year;
e) person with a financial interest in the applicant or licensee;
(f) person that has authority to or exercises control over the applicant or licensee;
(g) person that assumes responsibility for the debts of the applicant or licensee; or
(h) spouse of any individual in clause (a) and (b) herein; and
(ii) does not include a person, without limitation who:
- (a) receives payment for rent on a fixed basis under a lease or rental agreement relating to applicant or licensee. The Office may investigate a landlord in situations where a rental payment has been waived or deferred;
- (b) receives a bonus or commission from the applicant or licensee based on the individual’s sales, so long as the commission does not exceed ten percent of the sales of the applicant or licensee in any given bonus or commission period, unless otherwise determined by the Office. Commission-based compensation agreements shall be in writing;
- (c) contracts with the applicant or licensee to receive a commission for the sale of the business or real property;
- (d) consults receiving a flat or hourly rate of compensation from the applicant or licensee under a contractual agreement, unless such compensation exceed the limits set forth in this Chapter;
- (e) is a goods and services contractor, as long as the applicant or licensee retains the right to and controls the business;
- (f) is a financial institution;
- (g) is a financier; or
- (h) others as may be determined by the Office.
How Can Point Seven Group Help?
The team of cannabis consultants and professionals at Point Seven Group have worked extensively in the U.S. and international cannabis markets and are familiar with the unique challenges of the cannabis industry. Follow us on social media to stay up to date with more cannabis industry updates!
- Delaware Marijuana: 3 Facts About the Adult-Use MarketIn April 2023, Delaware achieved a noteworthy milestone by becoming the 22nd state to legalize the recreational use of cannabis. This achievement was made possible through the passage of two distinct bills, collectively allowing for the possession, sale, and regulation of cannabis in the state. …
- The History of Cannabis in KentuckyExploring Kentucky’s cannabis legislative journey offers valuable insight into how the state’s perspective on cannabis has evolved over time – from early attempts at legalization to the landmark moment in 2023 when medical marijuana was finally legalized. This article traces the path through legislative endeavors, …
- How to Win a Minnesota Cannabis Cultivator LicenseAlthough an exact date for the commencement of Minnesota cannabis cultivator licensing is yet to be determined, Governor Walz has expressed his commitment to establishing a clear pathway for licensing and regulation of Minnesota cannabis businesses by May 2024. Since winning a cannabis cultivator license …