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All New York Cannabis Business License Types

All New York Cannabis Business License Types

by | Dec 30, 2021 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization

New York cannabis business license types

Cannabis legalization in New York has many entrepreneurs looking to capitalize on what will likely become the largest cannabis industry in the country. However, the state’s Cannabis Control Board [CCB] has already announced delays to the cannabis business license process.

Little has been revealed in terms of the application process and regulations, which won’t be released until 2022. However the Marijuana Regulation and Tax Act, which legalized cannabis in New York, outline what cannabis business licenses will be available.

In total, there are nine separate cannabis business licenses for New York. These licenses are:

  • Cultivator
  • Processor
  • Cooperative
  • Distributor
  • Retail Dispensary
  • Microbusiness
  • Delivery
  • Nursery
  • On-site Consumption

New York Cultivator License

A Cultivator license allows everything involved with growing and harvesting cannabis plants for the purpose of sale to licensed processors. However a business with a Cultivator license can also perform minimal processing themself without a processing license.

Additionally a Cultivator licensee can have one Processor license and one Distributor license. Anyone with a Cultivator license cannot have any ownership connection to a cannabis retail dispensary.

New York Cannabis Processor License

A cannabis processing business purchases cannabis from cultivators and finishes production. This includes extraction, infusing, packaging, labeling and branding. A processor can only sell their finished product to a distributor.

However a process can also have a distributor license as long as they company is selling their own products. Just like the Cultivator license, a Processor Licensee cannot have any connection to a cannabis retail dispensary.

New York Cannabis Cooperative License

A cannabis cooperative in New York can cultivate, process and distribute their own cannabis products. Additionally a cooperative can sell to other distributors, on-site consumption businesses, registered organizations and retail dispensaries.

A Cooperative Licensee cannot sell directly to consumers, must have democratically elected leadership consisting of New York state residents and must be registered as an LLC or LLP. As with other New York cannabis business licenses, cooperatives can’t have an ownership connection to a retail dispensary, microbusiness or on-site consumption site.

Anyone who is a member of the co-op is prohibited from having any ownership connection to any recreational cannabis license.

New York Cannabis Distributor License

A Distributor licensee can purchase cannabis products from cultivators, processors, cooperatives, micro-businesses or registered organizations. They can then sell the products to retail dispensaries or consumption sites.

A distributor can’t be tied to any microbusiness, dispensary, consumption site or registered organization.

New York Cannabis Retail Dispensary License

A Retail Dispensary License allows someone to open a retail location which can purchase cannabis products from distributors and sell them to consumers. No one person is allowed more than three retail licenses.

This license includes strict zoning requirements. A retail store must be on ground level in a business district, and cannot be within 500 feet of a school or 200 feet of a religious organization. Any municipalities that want to opt out of allowing retail locations must do so before 2022, and hundreds of counties in the state have opted out already.

New York Cannabis Microbusiness License

A micro-business licensee will be allowed to cultivate, process, distribute, deliver and sell a limited amount of its own cannabis products. The CCB has yet to determine the size, scope, and eligibility criteria for micro-businesses, but they are prioritizing social and economic equity applicants.

Micro-business owners can’t have connections to more than one micro-business or any other type of cannabis business.

New York Cannabis Delivery License

A Cannabis Delivery licensee can deliver cannabis products from a retail store, micro-business or delivery business directly to the consumer. Each delivery business can have up to the equivalent of 25 full-time workers per week.

The CBB will provide more information about the application process, criteria, and scope of licensed activities in 2022. Licensees may not have any ownership connection to more than one delivery business.

New York Cannabis Nursery License

A cannabis nursery owner is permitted to produce clones, immature plants, seeds and other agricultural products used specifically for the cultivation process.  The nursery can sell these products to cultivators, co-ops, micro-businesses or registered organizations.

Cultivators may have a nursery license in order to sell products to other cultivators, co-ops or microbusinesses.

New York On-site Consumption License

On-site consumption licensees can purchase cannabis products and sell them to consumers for use in a designated area. Commonly called cannabis lounges or cannabis clubs, these sits will be similar to a hookah bar, but for cannabis.

The legislation outlines several strict regulations about the license application process, the physical site, and how business should be conducted at the site, similarly to retail dispensary locations. Licensees may not have any ownership connection to more than one site or any other type of cannabis business.

Over 100 towns and villages opt out of New York recreational cannabis

Over 100 towns and villages opt out of New York recreational cannabis

by | Nov 30, 2021 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Industry News, Legalization, Politics

towns and villages opt out of New York recreational cannabis industry
As the pieces begin falling into place to allow the New York recreational cannabis industry to begin operations, some local towns and villages are saying no to legal weed.

New data provided by the Associations of Towns of New York State indicates that around 9% of communities have opted out of the zoning portion of recreational marijuana legalization. How many towns is that? Across the state there are 84 of them that have opted out of both retail sale of marijuana and on-site consumption of cannabis.

The same can be said for villages. Around 9%, or 46 villages in New York have opted out of the law, leaving potentially millions in revenue on the table as New York recreational cannabis expands across the state.

For towns and villages that opt out of the New York recreational cannabis program, businesses will not be able to open if they sell or allow patrons to consume cannabis in their establishments.

There is still time for towns and villages opt out, however it does not look like the majority feel the same as the hundred or so that have already. “At this point, it appears there is not a major wave of opt-outs sweeping across the state,” Chris Anderson, research director for the Association of Towns recently said.

“We expect to see some more activity, but it’s certainly pretty late in the game. We have a good indication now it will be a low opt-out percentage statewide.”

There are hundreds of towns and villages across New York state, with the 120+ that have opted out making up a very small minority. It is likely that these towns and villages will see their surrounding communities generate revenue from recreational business while they miss out.

The towns and villages that have opted out will still have the opportunity to opt in once the New York recreational cannabis industry takes off. However the window for more to opt out is closing as the state gets closer to implementing a legal industry.

Delta 8 THC Banned in New York

Delta 8 THC Banned in New York

by | Nov 5, 2021 | Blog, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Hemp, Hemp Law, Industry News, Legalization

Delta 8 THC banned in New York by cannabis control board

Rules to allow for delta-8 THC could come in the “future,” but in the meantime, those for CBD in food and beverages have been finalized.

Delta-8 THC was front and center during the latest meeting of New York’s cannabis regulators, as officials work to stand up what will be one of the world’s biggest cannabis markets.

The state’s Cannabis Control Board (CCB) met on Wednesday, for the third time, to approve Cannabinoid Hemp regulations presented by the Office of Cannabis Management. The package of rules will now regulate hemp products, including CBD products, by creating “clear” guidelines for what kinds of products and activities are allowed, and which ones aren’t, “to help foster the development of a robust cannabinoid hemp industry.”

The rules also seek to enhance consumer protection and quality control through testing and labeling, and to “enforce against” products that don’t meet the bar and those that are explicitly banned.

“Delta-8, similar to delta-9 THC, is psychoactive, has psychoactive properties, particularly when synthesized through the processing process. Because of that, we’ve decided to hold off on including the regulations for those products in this package and that will be addressed in the future adult use packages,” Chris Alexander, executive director of the Office of Cannabis Management (OCM), within which the Board sits, said during a question and answer portion of the meeting, when asked specifically where delta-8 rules stood.

The regulations do, however, allow for cannabinoids, like CBD, to be added to foods and beverages, if they meet the state’s standards, which will require that each product be made using Good Manufacturing Practices. Last month, California Gov. Gavin Newsom signed AB 45, which will now allow hemp-derived CBD (or other cannabinoids) in supplements, foods, drinks, cosmetics, and pet food.

“I’m pleased that we will be advancing the cannabinoid hemp program today, just as we have done with the expansion of the medical marijuana program at prior meetings,” Tremaine Wright, chair of the Board, said at the start of the meeting. (As Cannabis Wire recently reported, the Board has already moved to allow for medical cannabis shops to sell flower products, which several have started to do, and released rules for patients to home grow.)

Board member Jen Metzger gave an overview of the hemp program in New York. In 2015, the Department of Agriculture and Markets launched the state’s Industrial Hemp Agricultural Research Pilot Program. Metzger said this program “exploded” after it launched, with 800 farmers registered to grow, most for cannabidiol (CBD).

When the Marijuana Regulation and Taxation Act passed in March, legalizing cannabis for adult use, the Cannabinoid Hemp Program was transitioned under the umbrella of the new Office of Cannabis Management.

Read Full Story on Cannabis Wire

New York Will Not Issue Adult-Use Licenses Until 2023

New York Will Not Issue Adult-Use Licenses Until 2023

by | Nov 3, 2021 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization, Politics

New York recreational cannabis licenses delayed until 2023

The head of New York’s Cannabis Control Board said last week she does not anticipate the state will begin issuing industry licenses until the spring of 2023 at the earliest.

The head of New York’s Cannabis Control Board said last week that she does not anticipate the state will begin issuing industry licenses until the spring of 2023 at the earliest, WXXI News reports. Tremaine Wright’s comments came during a cannabis conference at Comedy at the Carlson in Rochester.

“What we do control is getting (dispensaries) licensing and giving them all the tools so they can work within our systems. That’s what we are saying will be achieved in 18 months. Not that they’re open, not that they’ll be full-blown operations, because we don’t know that.” — Wright via WXXI

The state’s legalization law included a launch date of April 1, 2022, at the earliest and Gov. Kathy Hochul (D) only appointed members to the Cannabis Control Board in September. Hochul was not governor when lawmakers passed the broad legalization bill last March; she would replace Gov. Andrew Cuomo in August following his resignation over sexual misconduct allegations.

During the board’s meeting in late October, Wright declared the practice of “gifting” cannabis — including it with the purchase of another, often overpriced product — illegal and that violations could be met with “severe financial penalties.”

While state regulators have been slow to get the cannabis licensing process underway, adult-use cannabis sales have already commenced under the jurisdiction of several New York tribes, including the St. Regis Mohawks.

A bill has also been introduced that would allow licensed cannabis cultivators to start growing their crops prior to the launch of the formal program, creating provisional licenses that would allow businesses to operate if the Office of Cannabis Management doesn’t propagate program rules by January 1. That bill remains in the Senate Rules Committee.

Read Original Story on Ganjapreneur

New York to prohibit workplace discrimination due to cannabis use

New York to prohibit workplace discrimination due to cannabis use

by | Oct 28, 2021 | Blog, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Legalization

New York to prohibit employers from drug testing for cannabis use

New York will be one of the first states in country to prevent public and private businesses from discriminating based on cannabis usage.

With cannabis now legal for recreational use in New York, employers and employees are wondering how the new law will impact cannabis use and work. It is extremely common for a business to drug test a potential new hire.

These tests can check for a wide range of illicit substances, and almost all of them look for THC, the main psychoactive compound in cannabis. However the New York Department of Labor has released FAQ guidance making clear what employers and would be employees can expect.

The Marijuana Regulation and Taxation Act passed in 2021 legalized the use of recreational marijuana for individuals ages 21 and older. Notably for employers, the law also amended Section 201-d of the New York Labor Law – which prohibits discrimination by an employer against an employee because of certain lawful outside work activities – to include protections for recreational cannabis use.

More specifically, employers are now prohibited from discriminating against employees based on their use of cannabis outside of the workplace, outside of work hours, and where use does not involve the employer’s equipment or property. This change also applies to workplace drug testing with some exceptions.

New York cannabis drug testing changes

As employers are prohibited from taking adverse action against cannabis use by employees outside of the workplace, this includes drug testing for cannabis. However there are three cases in which drug testing for cannabis may still be permitted:

  1. An employers is required to take such action by state or federal law;
  2. The employer would otherwise be in violation of federal law or would lose a federal contract or federal funding; or
  3. The employee, while working, manifests specific articulable symptoms of impairment that either decrease or lessen the employee’s performance or interfere with the employer’s obligation to provide a health and safe workplace.

In the case of the second exception, guidance states that employers may only test an employee for cannabis if a state or federal law requires drug testing or makes it a mandatory requirement of the position. Employers cannot rely upon this exception to test an employee for cannabis merely because it is allowed or not prohibited by law.

To summarize this aspect, employers are in most cases prohibited from discriminating against an employee (i.e. drug testing) for cannabis use outside of the work place. Despite legalization however there are still prohibitions on cannabis use in the workplace.

Cannabis use in the workplace

The guidance released by the NYDOL gives employers broad discretion to prohibit cannabis use in the workplace. In other words, the employer has the choice whether to prohibit it or not.

The employer also has the option to prohibit possession of cannabis on company property, and has the explicit right to prohibit cannabis use under two circumstances:

  1. Time that an employee is on-call or “expected to be engaged in work;” and
  2. Time, “including paid and unpaid breaks and meal periods, that the employee is suffered, permitted or expected to be engaged in work, and all time the employee is actually engaged in work.”

Additionally, the NYDOL does not consider an employee’s private residence used for remote work to be a “worksite” within the meaning of the statute. However employers do have the ability to institute policy prohibiting cannabis use during work hours and take action against employees exhibiting impairment, even while an employee is working remotely.

Overall, the new guidelines released by the NYDOL clear up a lot of confusion surrounding cannabis use and workplace testing, and bring ease to many who are looking forward to the new legal access to cannabis in New York, whenever it becomes available.