Last verified: March 2026
The CAURD Program
The Conditional Adult-Use Retail Dispensary (CAURD) program was the centerpiece of New York's equity-first approach. The MRTA reserved the first retail licenses exclusively for people with prior cannabis convictions, creating a pathway for those most harmed by prohibition to enter the legal market first.
Applications opened in August 2022, drawing roughly 900 submissions. The Cannabis Control Board approved the first 36 CAURD licenses on November 21, 2022. Despite lawsuits, injunctions, and regulatory delays, 324 CAURD licensees are now active.
Social and Economic Equity by the Numbers
| SEE licenses (all categories) | 55% of all adult-use licenses |
|---|---|
| SEE retail licenses | 77% of retail dispensary licenses |
| Women-owned SEE businesses | 57% |
| Minority-owned SEE businesses | 50% |
| Massachusetts minority ownership | 1.2% (for comparison) |
Who Qualifies as SEE
Social and Economic Equity applicants include:
- Minority-owned businesses
- Women-owned businesses
- People from communities disproportionately impacted by cannabis enforcement
- Service-disabled veterans
- Distressed farmers
- People with prior cannabis convictions (CAURD-specific)
The $200M Fund Debacle
The $200 million Social Equity Cannabis Investment Fund was supposed to provide CAURD licensees with turnkey dispensary locations. Governor Hochul pledged $50 million in state funds and up to $150 million in private investment. The fund, managed by DASNY with NBA Hall of Famer Chris Webber and Siebert Williams Shank on the private side, became a debacle.
Private fundraising stalled. The eventual $150 million came from Chicago Atlantic Group as a secured loan at 15% interest, fully state-guaranteed. Licensees reported inflated construction costs, no say in location or design, and default-triggering terms. OCM's own counsel estimated up to 75% of fund-supported locations would fail. After investigative reporting by THE CITY, the Hochul administration quietly killed the program. Senator Krueger called the arrangements "predatory."
Success Despite the System
Despite the program's dysfunction, individual success stories demonstrate the potential of equity-first licensing. Silly Nice, FlynnStoned (13 locations), and Housing Works have shown that justice-involved entrepreneurs can build viable cannabis businesses when given the opportunity — even when the support infrastructure fails them.
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