Helen Saulnier 
As we formerly broadly summarized on December 27, 2022 (right here), in late December 2022, the Office of Hashish Administration (“OCM”) introduced its initially proposed grownup-use cannabis procedures and regulation for New York (the “Proposed Regulations”). The formal doc is 282 pages, so we won’t cover every single element. But we will highlight the major-ticket goods, significant difficulties that all candidates really should be mindful of, and the license application course of action as a whole. Also, hold in head that the Proposed Polices are continue to pending as OCM gets the last general public opinions to the Proposed Rules.
Just one of the more nuanced parts of the Proposed Laws relates to people making use of for a distribution (or distributor) license and the do’s and don’ts when awarded a distribution license. First and foremost, a cultivator that has a processor license may well apply for and receive one particular distributor license. In addition, people holding a conditional cultivation license shall be given priority by the OCM in evaluation of its software for a distributor license.
New York hashish distribution license – the do’s
Let us start off with some of the do’s for people holding a distributor license. The most obvious is that a distributor may obtain hashish goods from any duly certified processor, have explained cannabis, and subsequently distribute and provide all those hashish goods. A distributor might sell cannabis solutions to (1) an additional duly licensed adult-use distributor, or (2) to a retail dispensary, which may well include a Registered Business with Dispensing (“ROD”) or on-internet site intake premises.
A distributor or its genuine celebration of desire may perhaps be a true party of desire in a cultivator, processor, cooperative, microbusiness. Furthermore, a distributor or its true bash of desire may possibly be a landlord, financier, or a merchandise and services service provider to a cultivator, processor, distributor, cooperative, or microbusiness, matter to all limits governing this kind of relationships, like, but not confined to, undue impact, manage and real social gathering of desire needs.
New York cannabis distribution license – the don’ts
Some of the don’ts could be evident but other folks are far more nuanced, which will possible be fleshed out in the update to the Proposed Polices.
Underneath no instances may a distributor promote hashish goods to a distributor that also holds a cultivation or processing license. No distributor or its true social gathering of desire is permitted to have any immediate or oblique desire in a retail dispensary, on-website use, delivery, or hashish laboratory licensee or permittee. A distributor simply cannot accept, offer, transfer, distribute, or concur to offer, transfer or distribute, any hashish item unless it is in a retail deal and any unlabeled or untested hashish item in the possession of a distributor shall be deemed illicit hashish and may possibly be subject to penalties or sanctions which includes, but not limited to, cancellation, suspension, or revocation of a license and imposition of charges, civil penalties and any other penalty.
And finally, no distributor shall obtain any gifts, special discounts, financial loans, rebates, royalties, no cost cannabis of any variety, preferential shelf or display screen space or treats or companies of any mother nature. This is not an exhaustive list and I foresee much more getting additional or refined the moment the updated Proposed Rules are circulated.
Summary
For everyone looking at implementing for an grownup-use license, we reiterate our suggestion of employing an experienced, area hashish legal professional. At a minimum amount, knowledge the over-all framework of the licenses and the licensing system is a precursor to an in-depth consultation on a license application.
Remain tuned for future posts in this collection, as well as coverage of New York cannabis generally.
