What Types of NY Recreational Cannabis Licenses Will be Available
On March 31, 2021, adult-use cannabis became legal in the State of New York through the MRTA (Marijuana Regulation and Taxation Act). MRTA provided for the appointment of a Cannabis Control Board (CCB) which will run the OCM (Office of Cannabis Management) which in turn will implement regulations and issue licenses. There is still no application process or rules BUT the following types of licenses will be available.
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It is extremely important to note that license ownership in many categories limits the ability to own a license in another category. Licenses are anticipated to be good for two years. Clarity should come soon regarding overlapping ownership interests and indirect ownership with regard to license ownership/holdings. 30 days prior to filing applications, applicants must notify the municipality in which they plan on having their businesses to allow those municipalities an opportunity to express support or non-support for said businesses. The basics to New York Cannabis Law explained by a New York Attorney.
What is in the Law Adult-Use License Types
NY Cannabis CULTIVATOR LICENSE
“Definition: ‘Cultivation’ means the growing, cloning, harvesting, drying, curing, grading, and trimming of cannabis plants. A cultivator’s license authorizes the acquisition, possession, distribution, cultivation and sale of cannabis from the licensed premises of the adult-use cultivator to a licensed processor.”
Key Limitations:
-Can only own 1 cultivation license
-Can own (1) processor license and (1) distributor license ONLY for distribution of their own products
-may not own or have an interest in any licensee at the retail tier
Definition: ‘”Nursery’ means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis by licensed adult use cannabis cultivators, microbusinesses, cooperatives and registered organizations. A nursery license authorizes 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.“
*supports social/economic equity (50% goal)
Key Limitations:
-can hold only 1 nursery license
NY Cannabis PROCESSOR License
Definition: “‘Processor’ means a licensee that extracts concentrated cannabis and/or compounds, blends, extracts, infuses, or otherwise manufactures concentrated cannabis or cannabis products. A processor’s license authorizes the acquisition, possession, processing, and sale of cannabis from the licensed premises of adult-use cultivators to licensed distributors.“
Key Limitations:
-can only own 1 processor license
-can own a distributor license for distribution of OWN product only
-no ownership in any other licensee in retail tier.
NY Cannabis DISTRIBUTOR License
Definition: “‘Distributor’ means any person who sells at wholesale any cannabis product for which a license is required. A distributor’s license authorizes the acquisition, possession, distribution and sale of cannabis from the licensed premises of a licensed adult-use processor, adult-use cooperative, microbusiness, or registered organization authorized to sell adult-use cannabis, to duly licensed retail dispensaries, on-site consumption sites and adult-use delivery licensees.”
Key Limitations:
-only one distributor license per person
-distributors can’t own or have ANY interest in a licensee in cannabis retail tier.
NY Cannabis COOPERATIVE License
Definitions: “A cooperative license authorizes the acquisition, possession, cultivation, processing and sale from the licensed premises of the adult-use cooperative by such licensee to duly licensed distributors, on-site consumption sites, registered organization and/or retail dispensaries; but not directly to cannabis consumers. A cooperative license must be organized under cooperative principals, including but not limited to being democratically controlled by the members themselves, on the basis of one vote per member.”
Key Limitations:
-can only own one cooperative license
-Cooperatives can’t own or have any interest in a licensee in retail tier
NY Cannabis MICROBUSINESS License
Definition: “’Microbusiness’ means a licensee that may act as a cannabis producer for the cultivation of cannabis, a cannabis processor, a cannabis distributor, and a cannabis retailer. A microbusiness license authorizes the limited cultivation, processing, distribution, delivery, and sale of their own adult-use cannabis and cannabis products.”
NOTE: in other states such as New Jersey, microbusiness licenses were issued for significantly reduced application fees and costs and with priorities given to minority, women, disabled veterans, previously convicted persons and/or persons living in and/or doing business in impoverished areas.
Key Limitations:
-only one microbusiness license per person
-no microbusiness can have an interest in or own any other adult-use license type
*supports social/economic equity (50% goal)
NY Cannabis RETAIL DISPENSARY License
Definitions: “’Retailer’ means any person who sells at retail any cannabis product, to cannabis consumers. A retail dispensary license authorizes the acquisition, possession, sale and delivery of cannabis from the licensed premises of the retail dispensary by such licensee to cannabis consumers.”
Key Limitations:
-one person limited to no more than 3 retail dispensary licenses
-retail license holders my not own or have an interest in a licensee in cultivation, procession or distribution tiers
-must show possession of premises for at least 2 years (entire time of license).
NY Cannabis ON-SITE CONSUMPTION License
Definitions: “’On-site consumption’ means the consumption of cannabis in an area licensed by the Cannabis Control Board. An on-site consumption license authorizes the acquisition, possession, and sale of cannabis from the licensed premises of the on-site consumption licensee to cannabis consumers for use at the on-site consumption location.“
Key Limitations:
-no person can own more than 3 on-site consumption licenses
-may not own or have interest in a licensee in cultivation, processing or distribution tiers
-must keep detailed records of transactions for at least 5 years
-can’t be located within 500 feet of school/school zone
-can’t be located within 300 feet of church/house of worship
NY Cannabis DELIVERY License
Definitions: “A delivery license authorizes the delivery of cannabis and cannabis products by licensees, independent of another adult-use cannabis license, to cannabis consumers. Delivery licenses may not have a total of more than twenty-five individuals, or the equivalent thereof, providing fulltime paid delivery services to cannabis consumers per week under one license.”
Key Limitations:
-only one license per person
-no interest in or ownership of another license type
-no more than 25 full-time employees providing delivery service per week under one license
*supports social/economic equity (50% goal)
REGISTERED ORGANIZATION – CULTIVATOR PROCESSOR DISTRIBUTOR RETAIL DISPENSARY (medical)
Definitions: A registered organization cultivator processor distributor retail dispensary license authorizes a registered organization to have the same privileges and conditions as adult-use cultivator, processor, distributor, and retail dispensary licensees. The location of registered organization adult-use retail dispensaries will be limited to three of the organization’s medical dispensaries’ and only authorizes the distribution of the registered organization’s own products. The timing and manner of a registered organization’s participation in the adult-use market will be determined by the Cannabis Control Board.[10]
Key Limitations:
-no registered organization can own or have interest in any adult-use license type
REGISTERED ORGANIZATION – CULTIVATOR PROCESSOR DISTRUBITOR (medical)
Definitions: A registered organization cultivator processor distributor retail dispensary license authorizes a registered organization to have the same privileges and conditions as adult-use cultivator, processor, distributor, and retail dispensary licensees. The location of registered organization adult-use retail dispensaries will be limited to three of the organization’s medical dispensaries’ and only authorizes the distribution of the registered organization’s own products. The timing and manner of a registered organization’s participation in the adult-use market will be determined by the Cannabis Control Board.[11]
Key Limitations:
-no interest in any other license type
Keep up to date on the latest developments in New York Cannabis and speak with a licensed attorney in PSCB’s Cannabis Business Legal Department today.
Jason Bost, MBA, Esq., is the managing partner of the New York offices at the Law Firm of Patel, Soltis, Cardenas and Bost, and heads up the firm’s cannabis practice. With over thirty five years of experience in every aspect of the marijuana business (from growing, use, sales, marketing and now legal), Mr. Bost is uniquely qualified to represent cannabis businesses at every level of the industry. Mr. Bost also has over 25 years of experience in the entertainment industry and also runs the firm’s entertainment law department. Contact our offices to schedule a consultation (844) 533-3357 or email at bost@focusedlaw.com
