how to open a dispensary in new york

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new york

How to open a dispensary in New York

Overview

Want to learn how to open a dispensary in New York in 2022? New York has become the 15th state to legalize recreational marijuana. On March 31st, 2021, former Governor Andrew M. Cuomo signed into law a bill to legalize recreational cannabis for adults 21 years of age and older. The full language of the bill can be viewed here: Marihuana Regulation and Taxation Act (MRTA). Under this bill there are a lot of opportunities for business with 11 license types available, and an expected large license total collectively. Business with existing licenses can be grandfathered in to receive more licenses in the same category but no more than two times of their existing licenses.

Counties and municipalities within New York can opt out of cannabis sales in their jurisdiction. Deadline for opting out was December 31, 2021.New York released an adult-use municipality map for towns and cities that have decided to opt-in or opt-out. Check your municipality on the map to see if your town\city has op-in. Check your Municipality here.

This bill also proposes to provide a framework for social and economic equity applicants with the goal of 50% of licenses awarded to such applicants. New York, being one of the most populated states on the east coast of the U.S. is expected to create one of the biggest markets with a projected industry size of $4.2 Billion according to the New York Times.

New York’s Office of Cannabis Management

Under the Marijuana Regulation and Taxation Act, the creation of the New York's Office of Cannabis Management was created. This office will be overseen by the Cannabis Control Board which will have individuals appointed to the group. These two groups will work together to develop regulations and award licenses within New York. Keep up to date by visiting the OCM's Twitter Page.

2022 Conditional Adult-Use Cannabis Business Licenses in New York

Currently there are three cannabis adult use conditional licenses that are available to apply for in the state of New York:

Conditional Adult-Use New York Cultivator License:

The application window for the Conditional Adult-Use Cultivator License was March 15, 2022 till June 30, 2022. Applicants must pay a non-refundable fee of $2,000 for applications submitted. Requirements can be found on the New York Cannabis Commissions Cultivator Page or you can view the application.

Conditional Adult-Use New York Processor License:

On June 23, 2022, the Cannabis Control Board are opening the application window for Conditional Adult-Use Processors beginning June 28, 2022 and remaining open until August 31, 2022. Applicants must pay a non-refundable fee of $2,000 for applications submitted. Pursuant to the Cannabis Law, adult-use conditional processor licensees will be permitted to process cannabis products containing over 0.3% THC for the Adult-Use Cannabis Program. The license will also be authorized for the distribution of cannabis products to duly licensed adult-use retail dispensaries until June 1, 2023. After June 1, 2023, conditional processors seeking to distribute cannabis products, will be required to apply for a separate distributor license to engage in this activity. To learn how to apply for a New York Processor License, you can start your application or Contact Us and we can help. 

Conditional Adult-Use New York Dispensary License:

Currently the Cannabis Control Board has not scheduled a timeframe for Conditional Adult-Use Dispensary application submissions, but its anticipated to be released in late 2022. Please check back for updates. Applicants must pay a non-refundable fee of $2,000 for applications submitted within the window. To be able to open a dispensary in New York and be eligible for a conditional adult use New York dispensary license in 2022, you or a family member must be "Justice Involved," which are individuals who have formerly been convicted of a non-violent marijuana related offense will be eligible to be the state’s first licensed retailers.

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How much can it cost to open a dispensary in New York in 2022?

It will cost $2,000 to get a conditional adult-use New York dispensary license. Typically, a budget of between $400,000 and $1,000,000 would be required to open a dispensary in New York, depending on facility size and operations such as square footage, location, furnishings, and getting adequate cannabis products on the shelves to ensure there is product available for your customers. Contact us and we can help give you a quote or develop full financial projections for your cannabis business. 

 

Available New York CANNABIS Adult Use License Types

The adult-use license structure is as follows you may find more information by downloading the Office of Cannabis Management licenses fact sheet.

New York Cultivator License

Learn how to grow cannabis in New York. A New York Cannabis Cultivator’s License authorizes the acquisition, possession, distribution, cultivation and sale of cannabis from the licensed premises of the adult-use cultivator to a licensed processor. No person may own more than one cultivator license. A cultivator may own one processor license and one distributor license, solely for the distribution of their own products. Cultivators may not own or have any interest in a licensee in the cannabis retail tier. Information can be found on the New York Cannabis Commissions Cultivator Page or you can view and start your application from this link.

New York Dispensary License

 A Conditional Adult Use New York Dispensary License authorizes the acquisition, possession, sale and delivery of cannabis from the licensed premises of the retail dispensary by such licensee to cannabis consumers. No person or business entity who apply for a New York Dispensary License may own more than three retail dispensary licenses. New York Dispensary License holders may not own or have any interest in a licensee in the cultivation, processing or distribution tier.

New York Delivery License

A Conditional Adult Use New York Cannabis Delivery License authorizes the delivery of cannabis and cannabis products by licensees, independent of another adult-use cannabis license, to cannabis consumers. Delivery licenses may not have a total of more than twenty-five individuals, or the equivalent thereof, providing full-time paid delivery services to cannabis consumers per week under one license. No person may own more than one delivery license or have an interest in or own another adult-use license type.

New York Distributor License

A Conditional Adult Use New York Cannabis Distributor’s License authorizes the acquisition, possession, distribution and sale of cannabis from the licensed premises of a licensed adult-use processor, adult-use cooperative, microbusiness, or registered organization authorized to sell adult-use cannabis, to duly licensed retail dispensaries, on-site consumption sites and adult-use delivery licensees. No person may own more than one distributor license. Distributors may not own or have any interest in a licensee in the cannabis retail tier.

New York Nursery License

A Conditional Adult Use New York Cannabis Nursery License authorizes the production, sale and distribution of clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis by licensed adult-use cultivators, cooperatives, microbusinesses, or registered organizations. An adult-use cultivator may hold one nursery license.

New York Micro-Business License

A Conditional Adult Use New York Cannabis Microbusiness License authorizes the limited cultivation, processing, distribution, delivery, and sale of their own adult-use cannabis and cannabis products. No person may own more than one Microbusiness License or have an interest in or own any other adult-use license type.

New York Laboratory License

An owner of a cannabis laboratory testing license cannot hold a license in any other category.

New York Processing License

A Conditional Adult Use New York Cannabis Processor’s License authorizes the acquisition, possession, processing, and sale of cannabis from the licensed premises of adult-use cultivators to licensed distributors. No person may own more than one processor license. A processor may also obtain a distributor license, solely for the distribution of their own products. Processors may not own or have any interest in a licensee in the cannabis retail tier.

New York On-Site Consumption License

A Conditional Adult Use New York Cannabis On-Site Consumption license authorizes the acquisition, possession, and sale of cannabis from the licensed premises of the on-site consumption licensee to cannabis consumers for use at the on-site consumption location. No person may own more than three on-site consumption licenses or have any interest in a licensee in the cultivation, processing or distribution tier.

New York Small Business Adult Use Cooperative License

A Conditional Adult Use New York Cannabis Small Business Cooperative License will allow the acquisition, possession, cultivation, processing and sale from the premises to licensed distributors, on-site consumption sites, and retail dispensaries. You must be a resident of New York including your partners to obtain this license, and the company must be democratically controlled, and a limited liability company or partnership.

Home CANNABIS GROWING

New York Adults that are 21 years and older can grow up to six plants in their home for personal use (3 mature plants and 3 immature plants and a maximum of twelve plants per household (6 mature plants and 6 immature plants, even if there are three or more adults over the age of 21 in the residence. Pursuant to the MRTA, the home cultivation of cannabis plants may only be permitted after the Office of Cannabis Management issues regulations governing home cultivation of cannabis, which must be

no later than 18 months after the first adult-use retail sale.

New York Medical Marijuana Program

In 2015, the department of health began accepting applications for organizations to obtain a license to cultivate, manufacture, and dispense medical use cannabis to patients who are certified by a practitioner. 

Two fees are due with the application, the first of which is a non-refundable $10,000 application fee, and a registration fee of $200,000. If the applicant is not approved for registration, the $200,000 fee is returned. The Department of Health is not accepting applications as of May 2015. 

 

Organizations registered to manufacture and dispense medical cannabis are authorized to produce its own brand of medical cannabis products, in accordance with guidelines and approval of the department of health.

New York State's Medical Marijuana Program allows patients who suffer from specific serious conditions to be certified by a practitioner and receive medical marijuana products for medical use with a registry identification card. Registrations are valid for two years from the date of issuance. New York authorizes patients to receive medical marijuana for the following qualifying conditions:

•  Cancer

•  HIV or AIDS 

•  Amyotrophic lateral sclerosis (ALS)

•  Parkinson’s disease

•  Multiple sclerosis

•  Spinal cord nerve injury with intractable spasticity

•  Epilepsy

•  Inflammatory bowel disease

•  Chronic pain

•  Opioid alternative for pain that

    degrades health and functional capability

•  Neuropathy

•  Huntington’s disease

•  Post-traumatic stress disorder

•  Substance use disorder

Patients must also have one of these associated or complicating conditions:

•  Cachexia or wasting syndrome

•  Severe or chronic pain

•  Severe nausea

•  Seizures

•  Severe or persistent muscle spasms

•  Post-traumatic stress disorder

•  Opioid use disorder

History

In July 2014, New York enacted the Compassionate Care Act, authorizing a state medical marijuana program. The initial application window was from April 27, 2015 until June 5, 2015. During this phase, 43 companies submitted applications, of which the state selected five winners on July 31, 2015. Each winner will have a single manufacturing location and four dispensaries. The state does not permit dispensaries to sell whole flower or edibles, and smoking is prohibited. Patients are expected to use cannabis-based oils, liquids, and pills, either orally or through vaporization.

In June 2019, Lawmakers signed a Decriminalization Act into law, which, for example, makes a misdemeanor now a violation and automatically expunges old misdemeanor convictions, impacting nearly 160,000  people with low-level marijuana convictions in the state. 

As of November 2019, there are 110,369 certified medical marijuana patients and 2,583 registered practitioners recommending medical marijuana to patients in New York. There are recently announced regulations, to improve the state’s medical marijuana program which includes changes to the application.

Estimated market size

Estimates put the state's total cannabis market at $4.6 billion in annual sales (this includes the state's illicit market). The legal cannabis industry is expected to capture $1.2 billion in sales by 2023 and $4.2 billion by 2027. - Forbes

how to start a marijuana business new york

If you are just starting your marijuana business, the next best step is to visit the Green Rush Store to help educate your team and be ready to apply for a marijuana business license. If you are ready to apply for a Marijuana Business License in New York, please Contact us or call our offices to set an appointment to get started. You can also select another State Opportunity, or fill out our Contact Form to discuss potential strategies such as Investment or Partnership Opportunities.