How to get a Cannabis Business License in New York

How to get a Cannabis Business License in New York

On late March 2021, New York legalized cannabis sales for adults over 21 years old. However, sales won’t go into effect until -at least- next year, with estimates expecting the market to capture more than $1.2 billion in sales on its first year. In this sense, if you live in the Empire State, and want to become a cannabis entrepreneur, knowing how to get a cannabis license in New York is probably your top priority.

Cannabis businesses in New York State must have a cannabis license from the state to operate. The application process is rigorous, and the state has strict requirements for licensure. To get a cannabis business license in New York, you must first understand the licensing process and the requirements for licensure.

The cannabis licensing process in New York is rigorous and detailed. There are several steps that you must take to apply for a cannabis license, and the state has specific requirements that you must meet. The licensing process begins with submitting an application to the state. This application will require detailed information about your cannabis business, including your business plan and operations plan. You must also provide information about the owners of your cannabis business and the financial backers of your operation.

The state will also require specific documentation supporting your application. This may include background checks on all of the owners and financial backers of your cannabis business, as well as zoning and land use approvals for your business location. You may also need to provide evidence of financial stability for your cannabis business.

If your cannabis business is approved for a license, you will be required to comply with a variety of state regulations. Some of the marijuana regulation include strict packaging and labeling requirements, bans on advertising, and restrictions on the types of cannabis products that you can sell. You must also comply with local regulations, which may be even more restrictive than state regulations.

Types of cannabis business licenses available in New York

According to the New York cannabis laws, there are eight different types of adult-use cannabis licenses available in New York:

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Fees for a cannabis business license in New York

The Cannabis Control Board is in charge of establishing the licensing fees.

The Application Fees in New York for cannabis producers and cannabis retail dispensaries costs $210,000. However, if the cannabis application is denied, you will receive a refund of $200,000.

The license fees in New York for a cannabis producer and cannabis retail dispensaries costs $200,000, and you must renew your license every two years.

You have to have in mind that these costs are only the official fees in order to apply and maintain a license in the state. In order to prepare your team financially, you have to take into account real estate as well as operational/day-to-day costs to factor in how much money you will need to spend to get the operation going.

As a rule of thumb, you will probably want to budget for at least double these fees, to cover the entire operation.

How to get a cannabis business license in New York?

If you want to check specific requirements so far established by Bill S854, you’d probably want to check out our “New York Cannabis License Application” post. There are also specific requirements the applicant needs to comply with depending on the desired type of license.

In general, the Cannabis Control Board must develop regulations determining whether an applicant should be granted a license, basing those regulations on specific criteria, mostly regarding the applicant’s background information and capacity to carry the operation.

In this sense the applicants will be required to disclose the following:

  • Information about their identity (including racial and ethnic diversity)
  • Ownership and investment information
  • Evidence of good moral character
  • Financial statements

Also, the applicants will need to maintain a labor peace agreement with a bona fide labor organization.

There are also some basic limitations established in S854:

  • No license of  any  kind may  be  issued to a person under the age of twenty-one years, nor shall any licensee employ anyone under the age of twenty-one years.
  • No licensee can sell, deliver, or give away or cause or permit or procure to be sold, delivered or given away  any  cannabis  or  cannabis  product  to any person, actually or apparently, under the age of twenty- one years unless the person under twenty-one is also a certified patient and  the  licensee is appropriately licensed under article three of this chapter.
  • The board, on the recommendation  of  the  office  shall  have  the authority  to  limit,  by  canopy,  plant count, square footage or other means, the amount of cannabis allowed to be grown, processed,  distributed or sold by a licensee.
  • All  licenses expire two years after the date of issue.

In order to obtain a cannabis business license in New York, you should also prepare a cannabis business plan. That business plan should include the following items:

  • Executive Summary
  • Company Description
  • Market Analysis
  • Competitive Analysis
  • Cannabis Management & Operations
  • Marketing and Sales
  • Financial Summary
  • New York-Specific Requirements

A cannabis business plan is vital, as it is the blueprint to your cannabis business.

What licenses can you apply for simultaneously?

According to S854, you will need to apply for a separate license if you are planning on operating on different facilities. This means, you only get a license per facility. However, obtaining some licenses prohibits you to apply for other types of licenses simultaneously:

  • Adult-Use Cultivator License: May not obtain a license to distribute
  • Adult-Use Processor License: May not obtain a license to distribute
  • Adult-Use Distributor License: May not also hold cannabis dispensaries licenses or have a direct or indirect interest in a retail dispensary.
  • Adult-Use Retail Dispensary License: May not also hold an adult-use cultivation, processor, microbusiness, cooperative, or distributor license.
  • Microbusiness License: May not hold an interest in any other license.
  • Delivery License: May not hold a financial or controlling interest in more than one delivery license.
  • Small Business Adult-Use Cooperative License: May not hold retail dispensaries license or have a direct or indirect interest in a retail dispensary.
  • Adult-Use On-Site Consumption License: May not hold an adult-use retail dispensary, cultivation, processor, microbusiness, cooperative or distributor license. Also, a person may only have direct or indirect interest in three adult-use on-site consumption licenses.

New York State has some of the most rigorous cannabis business licensing requirements in the country. In order to get a cannabis business license in New York, you must first understand the licensing process and the requirements for licensure.

If you want more information regarding what could you do in order to stay compliant with the cannabis industry in New York, don’t hesitate to contact us.

If you want to be updated on the current state of Cannabis legalization, you should check out our map of marijuana legality by state.

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tom

tom

Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.
tom

tom

Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.

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