New York Cannabis License Update

New York Cannabis License Update

Shelby Knight
JUNE 17TH, 2022

New York cannabis officials proposed regulations in March that would reserve the first 100 to 200 retail cannabis licenses for New Yorkers who have a past marijuana conviction or their family members. But they must also demonstrate a track record as a successful business owner.

Cannabis regulators have said they aim to get the first dispensaries up and running by the end of 2022.

Outlined below are the types of adult-use marijuana business licenses that will be issued throughout the state. A newly formed regulatory agency, the Office of Cannabis Management will determine the number of licenses for each license type based on market demand.

Existing Medical Marijuana Businesses (Registered Organizations):

A Registered Organization is responsible for manufacturing and dispensing medical marijuana in New York. Each registered organization is permitted to have up to four dispensing facilities.

  • Registered Organizations will be able to co-locate no more than 3 of their medical cannabis dispensing locations with their adult-use retail functions.
  • Registered Organizations may have an additional 4 adult-use dispensing sites; provided, however, that the first two additional dispensing sites shall be in underserved or unserved geographic locations.

Adult-use Cultivator:

An adult-use cultivator’s license shall authorize the acquisition, possession, distribution, cultivation, and sale of cannabis to licensed processors. Cultivation shall include, but not be limited to, the agricultural production practices of planting, growing, cloning, harvesting, drying, curing, grading, and trimming of cannabis.

  • The board may establish regulations allowing licensed adult-use cultivators to perform certain types of minimal processing without the need for an adult-use processor license.
  • A person holding an adult-use cultivator’s license may apply for, and obtain, one processor’s license and one distributor’s license solely for the distribution of their own products.
  • A person holding an adult-use cultivator’s license may not also hold a retail dispensary license.
  • No person may have a direct or indirect financial or controlling interest in more than one adult-use cultivator license, provided that one adult-use cultivator license may authorize adult-use cultivation in more than one location.

 Nursery:

A nursery license shall authorize the production, sale and distribution of clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis by licensed adult-use cultivators, cooperatives, microbusinesses, or registered organizations.

  • A person or entity holding an adult-use cultivator’s license may apply for, and obtain, one nursery license to sell directly to other cultivators, cooperatives, microbusinesses, or registered organizations.

Adult-use Processor:

A processor’s license shall authorize the acquisition, possession, processing, and sale of cannabis from adult-use cultivators to licensed processors or distributors. Processing shall include, but not be limited to, blending, extracting, infusing, packaging, labeling, branding and otherwise making or preparing cannabis products. Processing shall not include the cultivation of cannabis.

  • A person holding an adult-use processor’s license may apply for, and obtain, one distributor’s license solely for the distribution of their own products.
  • No processor shall be engaged in any other business on the premises to be licensed; except that a person issued an adult-use cannabis cultivator, processor, and/or distributor license may hold and operate all issued licenses on the same premises.
  • No cannabis processor licensee may hold more than one cannabis processor license provided a single license may authorize processor activities at multiple locations, as set out in regulations.
  • No adult-use cannabis processor shall have a direct or indirect interest in any premises licensed as an adult-use cannabis retail dispensary.

Adult-use Retail Dispensary:

A retail dispensary license shall authorize the acquisition, possession, sale, and delivery of cannabis-to-cannabis consumers.

  • No person may have a direct or indirect financial or controlling interest in more than three adult-use retail dispensary licenses.
  • No person holding a retail dispensary license may also hold an adult-use cultivation, processor, microbusiness, cooperative or distributor license.
  • No cannabis retail licensee shall locate a storefront within 500 feet of a school grounds or within 200 feet of a house of worship.

Microbusiness:

A microbusiness license shall authorize the limited cultivation, processing, distribution, delivery, and dispensing of their own adult-use cannabis and cannabis products.

  • Microbusiness licensee may not hold any direct or indirect interest in any other license and may only distribute its own cannabis and cannabis products to dispensaries.
  • The size, scope and eligibility criteria of a microbusiness shall be determined by the program’s regulatory agency. The granting of such licenses shall promote social and economic equity applicants.

 Adult-use Distributor:

A distributor’s license shall authorize the acquisition, possession, distribution, and sale of cannabis from a licensed adult-use cultivator, processor, adult-use cooperative, microbusiness, or registered organization to sell adult-use cannabis to licensed retail dispensaries and on-site consumption sites.

  • No distributor shall have a direct or indirect economic interest in any microbusiness, adult-use retail dispensary, adult-use on-site consumption licensee or in any registered organization.
  • Any distributor with a direct or indirect interest in a licensed cultivator or processor shall only distribute cannabis or cannabis products cultivated and/or processed by such licensee.

Delivery:

A delivery license shall authorize the delivery of cannabis and cannabis products by licensees independent of another adult-use cannabis license, provided that each delivery licensee may have a total of no more than twenty-five individuals, or the equivalent thereof, providing full-time paid delivery services to cannabis consumers per week under one license.

  • No person may have a direct or indirect financial or controlling interest in more than one delivery license.
  • The granting of such licenses shall promote social and economic equity applicants.

Adult-use On-site Consumption:

A license that allows for the consumption of cannabis in an area.·      No person may have a direct or indirect financial or controlling interest in more than three adult-use on-site consumption licenses.·      No person holding an adult-use on-site consumption license may also hold an adult-use retail dispensary, cultivation, processor, microbusiness, cooperative or distributor license or be registered as a registered organization.·      Adult-use on-site consumption facilities must be at least 500 feet from school grounds or 200 feet from a house of worship.

Adult-use Cooperative:

A cooperative license shall authorize the acquisition, possession, cultivation, processing, distribution, and sale of cannabis to licensed distributors, on-site consumption sites, registered organizations, and/or retail dispensaries, but not directly to cannabis consumers.

  • To be licensed as an adult-use cooperative, the cooperative must be comprised of residents of the state of New York.
  • No natural person or member of an adult-use cooperative license may have a direct or indirect financial or controlling interest in any other adult-use cannabis license.
  • The board shall promulgate regulations governing cooperative licenses, including, but not limited to, the establishment of canopy limits on the size and scope of cooperative licensees, and other measures designed to incentivize the use and licensure of cooperatives.

 

Social Equity Program

The regulatory agency shall create and implement a social and economic equity plan and actively promote applicants from communities disproportionately impacted by cannabis prohibition, and promote racial, ethnic, and gender diversity when issuing licenses for adult-use cannabis related activities.

A goal shall be established to award 50% of adult-use cannabis licenses to social and economic equity applicants and ensure inclusion of:

  • individuals from communities disproportionately impacted by the enforcement of cannabis prohibition
  • minority-owned businesses
  • women-owned businesses
  • minority and women-owned businesses
  • distressed farmers
  • service-disabled veterans

The social and economic equity plan shall require the consideration of additional criteria in its licensing determinations. Under the social and economic equity plan, extra priority shall be given to applications that demonstrate that an applicant:

  • is a member of a community disproportionately impacted by the enforcement of cannabis prohibition
  • has an income lower than 80% of the median income of the county in which the applicant resides
  • was convicted of a marijuana-related offense or had a parent, guardian, child, spouse, or dependent, or was a dependent of an individual who, prior to the effective date of this bill, was convicted of a marijuana-related offense.

Adult-Use Cannabis Tax Revenue

All cannabis taxes will be deposited in the New York state cannabis revenue fund. Revenue covers reasonable costs to administer the program and implement the law. The remaining funding will be split in three ways:

  • 40 Percent to Education
  • 40 Percent to Community Grants Reinvestment Fund
  • 20 Percent to Drug Treatment and Public Education Fund

 

Want to learn more? Check out our other blog post! 
Interested in a New York cannabis business license? Visit our state page and schedule a consultation today!
Contact us by phone at 602-290-9424 or via email at info@thecannabisbusinessadvisors.com for more information on how to get started.

 

Learn More about New Jersey’s Adult-Use Cannabis Program from the Cannabis Business Advisors on our state page.

YOU MIGHT ALSO BE INTRESTED IN

SIGN UP TO STAY INFORMED

IT’S TIME TO GET GROWING.

Better growth and a clear plan forward is what your business needs. Reach out to us to book a consultation or get your action plan
started.
CONTACT