New York is home to Broadway, the Statue of Liberty and now… legalized cannabis. Recent updates to New York State’s regulations and guidelines mean licensing is now available for those wanting to break into the local cannabis scene.
During the time that cannabis use was illegal, NYC Health found that 34% of those ages 18- 25 had used cannabis in the previous year. With legalization, it’s almost guaranteed New York will become one of the hottest spots for cannabis.
New York Cannabis Licensing
The type of license you’ll need in New York will depend on the nature of your business. Whether you manufacture, distribute, or open a dispensary, you’ll need the legal documentation to prove you’ve been licensed. The infrastructure for New York’s licensing system has not yet been perfected and there are still details that must be resolved. Licenses will be initially available for two years and standard age requirements will be enforced. While applying for a license, businesses will need to commit to a labor peace agreement.
MRTA
The Marijuana Regulation & Taxation Act (MRTA) legalizes the creation, selling, and local use of cannabis. This bill was fundamental to the introduction of legal marijuana within the state and its supervision through the Liquor Authority of New York State. The MRTA was created specifically to allow newer businesses to thrive and develop within New York, ensuring both production and selling are within guidelines. The MRTA also allows for small-scale production and implements the use of micro-licenses, providing opportunities for businesses of all sizes.The MRTA specifies a tax breakdown that ensures local communities are provided for and the cannabis industry is contributing towards positive change. Forty percent will go towards the Community Grants Reinvestment Fund, which focuses on providing programs for the community; 20% will be focused on drug treatment options and the remaining 40% is dedicated to the Department of Education.
The Office of Cannabis Management
Officially signed and created on March 31, 2021, the Office of Cannabis Management is going to be responsible for many of the licensing duties. This group will also oversee the Cannabinoid Hemp Program. Because of the relatively recent instatement of this group, their full role is still being decided upon. However, what is known is they will play an instrumental role in the approval process for cannabis licensing within New York.
One of the prominent goals of current legislation is to provide licenses to those that are social equity applicants. The
purpose of this is to welcome minorities and encourage diversity. It is possible for both counties and municipalities to not allow cannabis sales within their boundaries. If they choose to do this, it will need to be before December 31, 2021.
Licensing Information Required
While there are some things, such as a business plan, that aren’t necessarily required, there is a list of information that must be filled out when going through the application process. Fingerprints, financial background, and ownership details will all need to be submitted. This is all part of the process and allows the Office of Cannabis Management to determine whether the business is within current guidelines.
Going through the licensing process is a monetary investment. Not counting legal counsel costs, it can total $210,000. Paying this amount is the only way to ensure your business is operating legally within New York’s guidelines. Tax specifications are expected to be enforced in 2022.
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