Cannabis Business Licensing in New York
Date of Last Update: April 2, 2021
Program Details
Type of Program
- Medical
- Adult-use
Regulatory Agency
- New York State Department of Health
- Office of Cannabis Management (OCM) controlled by a Cannabis Control Board
Market Population
- 19.4 million (2019)
Market Metrics
- Current Sales:
- ~$125 million in medical cannabis sales in 2020
- Projected Sales:
- $250 - 300 million in the first year of adult-use sales
- $2 billion + by the fourth year of adult-use sales
- Number of Licensed Medical Operators: 10
- Number of Dispensaries: 38
- Medical Cannabis Patients: 134,683
- Adult-Use Tax Rate: 13%
History of the Market
- 2014 - Medical Cannabis Legalization
- New York Governor Andrew Cuomo signed the legislation starting an 18-month widow for the Department of Health to enact the program
- The legislation allowed five private marijuana growers and each was allowed to operate four dispensaries.
- Cannabis flower is banned.
- 2017 - Medical Program Expanded
- Five new Registered Organizations were added to the state’s medical marijuana program.
- 2018 - Legalization Study
- Governor Cuomo urged the legislature to fund a study on legalizing cannabis for adult-use.
- The study recommended legalization for adult-use.
- 2019 - Decriminalization Expanded
- Legislation passed expanding decriminalization laws for recreational use but did not legalize it.
- 2020 - Governor Cuomo made a push for legalization but COVID shifted lawmakers’ priorities.
- 2021 - Adult-use Cannabis Legalization
Licensing
- No licenses are currently available.
- Gov. Andrew Cuomo signed an adult-use legalization bill on March 31, 2021.
- The law calls for the formation of The Office of Cannabis Management (OCM).
- Some OCM officials would be tasked with focusing on social equity, including a goal to award 50% of licenses to "social equity applicants" like those from communities impacted by cannabis prohibition and minority- and women-owned businesses.
- New York board officials would issue licenses for different steps of the supply chain -- farming, processing, distribution, dispensaries and retail "consumption" sites.
- Regulations for the details of the state’s adult-use program will now be developed.
How to Get Started
- Review the language in Marihuana Regulation and Taxation Act, NY State Senate Bill S854A
- Develop preliminary plans reflective of the early medical cannabis license applications, including:
- Security plan
- Environmental impact plan
- Quality control and quality assurance plan
- Background of principals, board members, and owners
- Financing plan
- Community engagement plan
- Research contributions
- Cultivation plan
- Manufacturing plan
- Dispensary plan
- Labor Peace Agreement
- Labor compliance plan
- Minority-owned, women-owned, or veteran-owned business certification
- Workforce and job-creation plan
- Form a strong team with both cannabis and outside-industry experience.
Additional Resources
To date, 3C has developed cannabis license applications for clients in over 50 markets globally. Our team is standing by and ready to help you plan for, complete, review, and submit your application. Now is the time to get a head start.
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