Updates on New York Cannabis Licenses and Cannabis Consulting for New York Cannabis Businesses
On January 15, 2019, the state of New York set up new laws about cannabis use in the state (you can read them in detail here). The laws were brought to the senate and are effective right now. Read on to find detailed information about the new laws and New York cannabis license consulting.
Right now, New York has mixed legalization. Medicinal cannabis is fully legalized state-wide. So, cannabis use has been decriminalized, but recreational use is not fully legal as of June 2020.
New York Cannabis License for Adult-Use Cultivation FAQ
Who can apply for registration?
Yes, anyone can apply to possess, sell, or cultivate medical marijuana products in the state of New York.
2. Can I be denied a license because of a previous cannabis conviction?
No, you cannot be denied a license because of a previous cannabis conviction.
3. Is there a fee?
Yes, there is a non-refundable $10,000 fee and a $200,000 registration fee. The $200,000 fee will be returned only if the registration is denied.
This fee may vary based on the amount of cannabis produced.
4. How could I be denied registration?
If you can’t comply with cannabis regulations. You may also be denied if you can’t carry out the requirements to maintain legality.
5. What are some things you cannot do after being registered?
As an adult-use cultivator, you can’t:
- be interested in directly or indirectly engage in selling cannabis products at resale or wholesale
- sell alcohol in the same facility as cannabis
- sell to minors (under 21)
*Please read the legislation for more details about restrictions.
Thinking About Applying for Cannabis License in New York?
Quantum 9 can help. We have a host of recourses in cannabis consulting to give our clients the best information available.
Currently, we offer various cannabis consulting services. These include application services, which help you gain approval on your application. We boast a 91.6% approval rate on all of our projects.
Quantum 9 also provides business planning services and facility design. Your cannabis consultant is knowledgable about New York cannabis licensing and best practices for the lawful operation of your cannabis business in the state.
At the current time, cannabis is legal in New York for medical use only, however, decriminalization laws are now in effect throughout the state.
How To Apply for a New York Cannabis License
Anyone can apply to cultivate, process, distribute, or dispense cannabis in the state of New York. There are multiple different licenses that are available for various purposes. If you want a license, you must complete an application. There is an application fee, which can vary depending on the license being applied for.
It is important to understand which licenses serve which purposes.
Types of New York Cannabis Licenses:
- Adult-Use Cultivator License. For the acquisition, possession, distribution, cultivation, and sale of cannabis. (There are individual adult-use licenses for every function listed here.)
- Registered Organization Adult-Use Cultivation Processor Distributor Retail Dispensary License. (Cannabis produced by the organization is shared within its own retail or medical dispensaries.)
- Registered Organization Adult-Use Cultivator. (Sales may only be made to adult-use processors)
- Small Business Adult-Use Cooperative License
- Medical Business License
- Nursery License
- Delivery License
- Microbusiness License
- Adult-Use Retail Dispensary License
- Adult-Use On-Site Consumption License
Selection Criteria for New York Cannabis License Applicants
Before applying, it is important to know the selection criteria. Firstly, this will give you an idea of whether you will be approved.
Some of these criteria are:
- Firstly, whether you can maintain control against any illegal activity
- Secondly, if you can comply with state regulations
- Thirdly, if you have access to the land and buildings needed
- Fourthly, that you have met all of the requirements and have the right permits
- Lastly, you are able to mitigate environmental impacts
*please see legislation for the full detailed list of criteria
When you apply for a New York cannabis license, there will be fees. For example, businesses have a non-refundable $10,000 fee and a $200,000 registration fee. But, the $200,000 fee will be returned only if the registration is denied.
Of course, adult-use cultivation may have different fees based on the amount of cannabis to be produced.
Currently, 0n-site consumption has strict rules in New York. The only exception to the rule being the owner of an establishment. For example, if you own the building or the business, you can obtain an adult-use on-site consumption license.
Otherwise, on-site consumption is against the rules for now.
Social Equity Incubator Program
The board started a program called the social equity incubator program. Basically, the point of the program is to promote diversity within the cannabis business. In other words, the program aims to get applicants from all racial, gender, and socioeconomic backgrounds.
For example, special incentives are given to women, minorities, and people with prior marijuana convictions. Because these groups are disadvantaged in our society, giving them incentives to participate in the growing business is a step in the right direction.
Advertising Your Cannabis Business
In every business, there are policies about advertising. Of course, this is no different for the cannabis business. New York’s cannabis advertising policies are outlined in the legislation.
To clarify, here are some of the policies.
Advertisements cannot, for example:
- be deceptive, false, or misleading
- promote excess consumption
- depict consumption by minors
- target children or minors as an audience
- be near schools or public transportation areas
- make medical claims
- be on publicly owned property
*So, your advertisements can’t target children or be anywhere near children or where children may be commuting. Advertisements also can’t make specific medical claims.
So, you still want to start your own cannabis business? It’s important to know the limits set within the business to avoid getting into legal trouble. It’s also important as an adult-use consumer to understand what is allowed and what may get you into trouble.
First, you must be at least 21 to have cannabis in your possession. Secondly, you can personally have up to 3oz of cannabis or 24 grams of concentrated cannabis on your person.
Also, you can’t cultivate marijuana without a license for personal use.
Criminal Possession in the 3rd Degree: having over 16oz in your possession
Possession in the 2nd Degree: having over 5lb in your possession. This is a class E felony.
Unlawful sale: when one knowingly sells cannabis unlawfully.
Criminal Sale (2nd degree): the sale of more than 16oz
Criminal Sale (1st degree): the sale of more than 5lbs
Aggravated criminal sale of cannabis: the sale of cannabis weighing 100 lbs or more.
Wow, that was a lot.
New York cannabis license consulting is available for you with Quantum 9. If you want to start a cannabis business in New York, don’t get overwhelmed.
We’re here to help. As global leaders in cannabis consulting, we have lots of resources for you. For instance, check out this article on New York business plan writing.
So, if you have any questions, be sure to contact us. We can’t wait to help you build your business!