The sale of legal marijuana in New York is only a year away. We can expect the board to create rules and regulations for cannabis business licenses soon. New York holds more than 19 million residents and is a major tourist city. This is why cannabis is expected to be a $4.2 billion dollar industry. If you want a cannabis business in New York, now is the time to start your cannabis license application so that you can win a license when the time comes to apply. With that, multiple license types are available. So, if you have an interest in a marijuana distributor license in New York, read along to learn what you can do with this license type.
What Can I do with a Marijuana Distributor License in New York?
First, a distributor is any person or entity that sells at wholesale any cannabis product.
A marijuana distributor license in New York authorizes the acquisition, possession, distribution, and sale of cannabis from other licensed premises. These licensed premises in New York include adult-use cultivators, processors, cooperatives, microbusinesses, and existing medical marijuana dispensaries.
Secondly, wholesale means to solicit or receive an order for, to keep or expose for sale, and to keep with intent to sell, made by any licensed person. A licensed person can be a principal, proprietor, agent, or employee of any adult-use, medical-use cannabis, or cannabis product or cannabinoid hemp and hemp extract product for purposes of resale.
If you have any additional questions, our cannabis consulting firm at Quantum 9 can walk you through options for cannabis licenses in New York.
Rules and Regulations for a Marijuana Distributor License in New York
The board has created multiple rules for marijuana distributors in New York.
First, no distributor can sell or agree to sell/deliver cannabis products in any container, except in a sealed package. With that, containers must have the correct labels, which is a requirement by the board.
Secondly, in regards to cannabis delivery, licensed distributors can not deliver any cannabis products. However, you can deliver in vehicles that are owned and operated by such distributors. Additionally, the vehicle can be hired and operated by such distributor from a trucking or transportation company registered with the board. Lastly, you can only make deliveries at the licensed premises of each purchaser.
Each marijuana distributor in New York has to keep and maintain books and records of all transactions. These records need to present total THC content, correct labels, license numbers, etc. Also, each of these transactions has to be on record separately on separate invoices.
Maximum Margin for Distributors
Additionally, the board has the authority to establish a maximum margin for which a distributor can mark up a cannabis product for sale to a retail dispensary.
Also, in order to show proof of this, you need to keep adequate books and records to show the distributors’ actual cost of doing business.
Finally, New York offers multiple marijuana business licenses, so if a distributor license is not for you, make sure to check out our articles on other license types. Remember, different license types require different business plans, so make sure to utilize services from our cannabis business consultants. These New York cananbis licenses include:
- Cultivator License
- Retail Dispensary License
- Processor License
- Cooperative License
- Distributor License
- Microbusiness License
- Delivery License
- Nursery License
Contact our marijuana consultants in New York for more information on the application process. We have the highest success rate in the industry and are eager to help cannabis entrepreneurs win cannabis licenses and start cannabis businesses in New York.