New York regulators have approved the state’s first-ever licenses for recreational marijuana retailers. Most of the businesses are owned by people who’ve been disproportionately impacted by the war on drugs, while others are run by nonprofit organizations that have a history of helping people reenter society after having been incarcerated.

The Cannabis Control Board (CCB) also gave the green light to new regulations for the market on Monday.

The approval of the first 36 dispensary licenses along with a package of rules for the industry comes just days after officials selected 10 teams of firms to build out about 150 turn-key storefront facilities for the social equity marijuana retailers to operate out of once the market officially launches.

“This is a monumental moment, and it represents the last leg of the cannabis supply chain that requires licensure,” Tremaine Wright, chair of the CCB, said.

BREAKING: In a historic decision, the #NYCCB has approved the first round of CAURD licensees.

28 Justice-involved individuals & 8 Nonprofit organizations will make the first adult use-sales by New York farmers and bring countless opportunities to our communities. #NYCCB

— NYS Office of Cannabis Management (@nys_cannabis) November 21, 2022

“Not long ago, the idea of New York legalizing cannabis seems unbelievable,” she said. “Now, not only have we legalized, but we’re also building a legal adult-use market with an equity-driven approach that embodies the ambitious goals” of the state’s reform law.

OCM Executive Director Chris Alexander said that he’s especially glad to see the first retailer approvals focus of justice-involved individuals, stating that those people should be “the bedrock of our industry.”

“It’s incredible to see how the team here has worked so hard to bring it to life,” he said. “There’s more CAURD licenses under review and we will continue to issue licenses on a rolling basis as we have for other license types—but right now I’m pleased to present this first batch of retail licenses.”

Axel Bernabe of the Office of Cannabis Management (OCM) said earlier this month that the state was on track to imminently approve the first Conditional Adult Use Retail Dispensary License (CAURD) dispensaries. That has now happened.

Speaking about the adult-use regulations at Monday’s meeting, Bernabe said they were developed to “create protections for small businesses that ensure the wealthy and well-connected do not dominate the market.”

But there’s already a hitch in the retailer rollout, with a federal judge recently issuing an injunction in response to a lawsuit that temporarily blocks regulators from approving CAURD licenses in certain regions of the state, like Central New York and Brooklyn.

For now, CCB has approved licenses for 29 dispensaries owned by justice-involved individuals, along with eight controlled by nonprofits.

There is also a full list on the OCM website at https://t.co/2xwsryjxsl pic.twitter.com/n9NyZGrPx2

— NYS Office of Cannabis Management (@nys_cannabis) November 21, 2022

Meanwhile, the new rules approved at Monday’s meeting cover various license types, including cultivation, nursery, processing, distribution, retail dispensary, microbusinesses, and cannabis collectives/co-ops, while delivery and social use facility licenses will be handled in a future round of regulations. The proposals also address testing, packaging and enforcement actions.

There will be a 60-day public comment period on the regulations before they can officially go into effect.

OCM is encouraging robust feedback from neighbors like you! Comments on proposed regulations can be filed by email at [email protected].

— NYS Office of Cannabis Management (@nys_cannabis) November 21, 2022

One especially notable aspect of the draft rules concerns the state’s current medical cannabis businesses. Those firms would have to pay an initial $5 million fee for the right to sell marijuana in the adult-use market and would need to wait three years after the first sales by CAURD licensees begin in order to get started themselves. There would also be additional fees over time.

For now, regulators have said on several occasions in recent months that they’re positioned to have the first batch of adult-use marijuana storefronts open by the end of the year, and with the first batch of license approvals they are hopeful that can happen—though time is running short.

To that end, regulators on Monday also announced that they will allow qualifying businesses to begin sales via delivery while they are waiting for contractors selected by the Dormitory Authority of the State of New York to build out their storefronts.

“This will help jumpstart sales and enable these small business owners to generate capital and scale their operations,” OCM said in a tweet.