New York Adult-Use Cannabis Retail Update

Nearly 40% of New York’s cities and counties have agreed to permit adult-use cannabis retail sales as of January 12, 2022. The deadline for this decision was December 31, 2022. Local New York municipalities have the authority to permit or opt-out in the retail sector, however, they cannot opt-out of cannabis cultivation and manufacturing by state-licensed businesses.

Many local leaders cite a lack of clarity regarding the regulations in adult-use cannabis dispensaries as a driving reason for opting out. Adult-use cannabis rules and details of the program are expected to be released in the first quarter of 2022 by the New York Office of Cannabis Management. After further details are published, governments that initially opted out may choose at that point to permit cannabis sales. It is possible that when communities start to see the revenue and tax generation created by cannabis businesses, they will want to participate.  However, once the jurisdiction has authorized cannabis retail sales, they cannot opt-out of the program.

For cannabis business entrepreneurs seeking an adult-use retail license, state officials suggest approaching their communities with the intent to function as a collaborative partner and offer creative ways to positively contribute to the local community.

The Marijuana Regulation and Taxation Act lay out nine types of licenses companies can apply for including cultivator, nursery, processor, distributor, retail-dispensary, delivery, on-site consumption, adult-use cooperative, and microbusiness.

The state will also reserve half of all licenses to Social Equity Applicants. Applications for all licenses are expected to open in Quarter 2 of 2022. According to the chair of the New York Cannabis Control Board, it is likely adult-use cannabis sales will not begin until the summer of 2023.

For more information on New York’s cannabis programs, including details on upcoming available licenses- visit our NY State Page.

Interested in starting a New York Adult-Use marijuana business?

The Cannabis Business Advisors has successfully secured licenses for clients in over 20 markets across the United States. Call our office at (602)-290-9424 or email (info@thecannabisbusinessadvisors.com) to get started.