New York may become the sixteenth state to legalize marijuana, as Gov. Cuomo renewed his vow to legalize marijuana in 2021. And considering the positive implications that this multi-millionaire industry may bring to the state’s economy, along with the legalization of weed in the neighboring state, New Jersey, this time the proposal might be able to pass.

In this sense, this is the perfect opportunity for any cannabis entrepreneur in New York to hop on the industry. But as in any other state, there’s a fair amount of prepping that needs to be done in order to get a license.

This time we’ll get into the requirements established -so far- for the New York small business cooperative license. Take into consideration that these requirements will likely suffer some changes with time, however, it’s good to keep them in mind from now: it’s never too early to start working on the compliance aspect of your business.

What’s the small business cooperative license?

New York small business cooperative license authorizes its holder to acquire, possess, cultivate, process, and sell cannabis from the licensed premises of the adult-use cooperative by such licensee to duly licensed distributors, on-site consumption sites, and/or retail dispensaries; but not directly to cannabis consumers.

In order to obtain a New York small business cooperative license, the cooperative must comply with the following requirements:

• Be comprised of residents of the state of New York as a limited liability company or limited liability partnership under the laws of the state, or an appropriate business structure as determined and authorized by the board.
• Subordinate capital, both as regards control over the cooperative undertaking, and as regards the ownership of the pecuniary benefits arising from the cooperative;
• Be democratically controlled by the members themselves on the basis of one vote per member;
• Vest in and allocate with priority to and among the members of all increases arising from their cooperative endeavor in proportion to the members’ active participation in the cooperative endeavor;
• The cooperative must operate according to the seven cooperative principles published by the International Cooperative Alliance in 1995.

Requirements to be a member of a small business cooperative

In order to be a member of a cooperative, you would need to comply with the following requirements:

• Has to be a natural person
• Can’t be a member of more than one small business adult-use cooperative licensed pursuant to the Act.
• Can’t have a direct or indirect financial or controlling interest in any other adult-use cannabis license issued pursuant to the Act.

No small business adult-use cannabis cooperative shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, or any other means in any premises licensed as an adult-use cannabis retail dispensary or in any business licensed as an adult-use cannabis retail dispensary pursuant to the Act.

The Board must promulgate regulations governing cooperative licenses, including –but not limited to- the establishment of canopy limits on the size and scope of cooperative licensees, and other measures designed to incentivize the use and licensure of cooperatives.

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New York lawmakers created an adult-use distributor license for those interested in starting a cannabis business to get in the industry. After Bill S854 was presented New York is on its way to becoming one of the sixteenth states to legalize recreational marijuana. 

The adult-use distributor license is one of the 10 types of cannabis licenses available in the Big Apple. And while we have to wait until the state passes the bill and officially legalizes cannabis for New York cannabis application to be open, we can give you information about the adult-use distributor license for you to familiarize and consider your options to start your cannabis business

What is an Adult-use distributor license?  

A distributor’s license shall authorize the acquisition, possession, distribution, and sale of cannabis from the licensed premises of a licensed adult-use cultivator,  processor,  small business adult-use cooperative, or microbusiness authorized to sell adult-use cannabis,  to duly licensed retail dispensaries.

“Distributor” means any person who sells at wholesale any cannabis product,  except medical cannabis,  for the sale of which a license is required under the provisions of this chapter.

“Wholesale” means to solicit or receive an order for, to keep or expose for sale, and to keep with intent to sell, made by any licensed person, whether principal, proprietor, agent or employee of any adult-use,  medical-use cannabis or cannabis product or cannabinoid hemp and hemp extract product for purposes of resale.

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Limitations for Adult-use Distributor License

No distributor is allowed to have a direct or indirect economic interest in any adult-use retail dispensary or in any adult-use cultivator or processor licensed or in any registered organization. This restriction does not prohibit a  registered organization authorized from being granted licensure by the board to distribute adult-use cannabis products cultivated and processed by the registered organization to licensed adult-use retail dispensaries owned and operated by such registered organizations.

A distributor will not be prevented from charging an appropriate fee, authorized by the board, for the distribution of cannabis,  including based on the volume of cannabis distributed.

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Cannabis Nursery has been referred to as how the cannabis industry starts. While not all the states contemplated the nursery license in its regulations, New York lawmakers decided to include this type of license in their cannabis program. 

A nursery license are an opportunity for entrepreneurs to enter in the industry not talked about enough, but in this opportunity we are dedicating this segment exclusively with everything there is to know so far about New York cannabis nursery license. 

What is a Nursery  license 

 A  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. 

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Nursery License Regulations

Once the bill passes, the office will have to provide recommendations to the board for  the  application process, license criteria and scope of licensed activities for this class of license. Such licenses shall promote social and economic equity applicants as provided for in this chapter.

Nursery License Restrictions 

A person or entity holding a cultivators license may apply for, and obtain, one nursery license to sell directly to other cultivators, cooperatives, or microbusinesses.

Other Types of New York Cannabis Licenses

Don’t miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them.

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