The cannabis industry is about to be legalized in New York, but there are some licensing terms you should know before you start making business plans.
Any cultivator needs to acquire, possess, cultivate, and sell cannabis from the licensed premises of the adult-use cultivator and to send them to ‘duly licensed processors’. For that, any cultivator needs to apply for one processor and one distributor license.
Processors need to purchase cannabis from adult-use cultivators and have to sell them to ‘duly licensed distributors’. To do this legally, they need to have a processor license. An individual processor can have up to three processor licenses.
One with this license can purchase cannabis from adult-use cultivators and can sell them to ‘duly licensed distributors’ and/or retail dispensaries. But, these licensees cannot sell cannabis directly to cannabis consumers.
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This license is needed to purchase adult-use cannabis from licensed processors, micro-business cultivators, and registered organizations and to sell them to duly licensed retail dispensaries. Any licensed distributor may not earn economic profits from any retail distributor licensee (means no vertical integration except for grand-fathered registered organizations).
It is the license that is needed to sell cannabis directly to consumers. One person is allowed only to have a financial or controlling interest in only 3 retail dispensary licenses. However, the regulations of this license do not apply to pre-existing licensed organizations which are in operation as of April 1, 2019. By present regulations, registered organizations can have up to 4 medical dispensary locations. An individual retail dispensary is allowed to sell only 1 ounce of cannabis per customer per day and a maximum of 5 grams of cannabis concentrate per consumer per day.
In alcohol sales-qualified locations, adult-use dispensaries can get an on-site license to sell a maximum of 1 gram of cannabis to a customer for on-site consumption.
However, MBE, WBE, Disadvantaged Farmers, and Incubators are given special consideration from these licenses.
Apart from these mandatory licenses, the law is likely to issue some special permits for several cannabis-related activities. Though presently there is no regulation available, we are mentioning the names of those permits here with a vision to explain them when their guidelines are properly available.
1. Industrial Cannabis Permit
2. Nursery Permit
3. Solicitor’s Permit
4. Broker’s Permit
5. Trucking Permit
6. Warehouse Permit
7. Delivery Permit
8. Cannabinoid Permit
9. Temporary Retail Cannabis Permit
10. Packaging Permit
11. Miscellaneous Permit