New York legalized cannabis for recreational purposes on March 31, 2021. However, the first recreational dispensary wasn’t opened until December 2022. As of December 2023, there are 35 recreational dispensaries open for business in New York. Let’s talk more about the struggles of the New York Recreational Cannabis Industry.
New York Office Of Cannabis Management
The Office of Cannabis Management oversees the recreational cannabis market in the state of New York. The department is responsible for creating and implementing a comprehensive regulatory framework for medical and adult-use cannabis and hemp in the State of New York.
Regulations
New York recreational cannabis regulations can be found here: NY Adult Use Regulations. The department publishes regulation updates here. The most recent update occurred on 9/27/2023.
Implementation of Adult Use Cannabis in New York
New York officials launched legal recreational marijuana sales with a promise of a robust social equity program, that is, offering many of the first retail licenses to people with past drug convictions, hoping to give local people harmed by the war on drugs a chance of success against their competition, including large MSO’s.
But over the last nine months, legal challenges over the state’s permitting process have left more than 400 provisional licensees in limbo. NY marijuana cultivators are furious because there are too few stores to sell their harvest.
New York Recreational Cannabis Business Types
New York currently has 5 different license types cultivation, processor, retail dispensary, distributor, and microbusiness Each license type has many regulations that are specific to that license, while many regulations will apply to any license type offered by the department.
Licensing
The OCM recently opened up a 60-day general application window to grow, process, distribute or sell marijuana, expecting to issue more than 1,000 new licenses. The application window for New York recreational cannabis licenses closed December 19, 2023 but is expected to re-open in January 2024.
New rules also will allow companies licensed to grow and sell medical marijuana in New York to get into the recreational market.
The Market
According to MJBizDaily.com The state’s Cannabis Showcase program has generated more than $4 million in sales this year, according to the state.
Retailers in New York have generated more than $110 million in sales this year, far below the billion-dollar projections before the launch of adult-use sales.
How to Start a Cannabis Business in NY
To become a licensed New York recreational cannabis dispensary, the department will require numerous documents be submitted. These will include standard operating procedures, business plans, operating agreements, floor plans, security plans, and even diversity plans. There may also be additional documentation requirements depending on the type of cannabis license the applicant is applying for. The final form of such documents is referred to as the “cannabis license application”. Once the department has reviewed all applications, they will issue licenses.
Luckily, we offer several of the required cannabis business documents, industry training and content for various applications. We offer customized documents, and templates specific to each state and we have New York ready to go!
