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The growing world of cannabis commerce is promising, presenting numerous opportunities for those keen on entering the transportation sector. With New York’s recent provision of regulations for an adult-use cannabis distributor license, the arena is ripe for those aiming to make their mark in this industry. Here’s everything you need to know about becoming a licensed cannabis distributor in the state of New York.
The Office of Cannabis Management’s Marijuana Regulation and Taxation Act offers several licenses, one of which is the adult-use cannabis distributor license. This license allows businesses to legally transport cannabis between licensed entities such as cultivators, processors, manufacturers, adult-use cannabis dispensaries, or on-site cannabis consumption sites.
The primary distinction to remember is that the cannabis distributor license facilitates only B2B transactions. It permits license holders to operate in the arena connecting producers and retail dispensary operators. As a holder of this license, you aren’t allowed to have a direct or indirect economic interest in any adult-use retail dispensary or on-site consumption lounge.
What are the requirements for cannabis distributor license in New York?
Turning our attention to the nitty-gritty, the basic prerequisites for aspiring applicants are:
- Age above 21
- US citizenship or permanent residency
- Ownership of a motorized vehicle
- No major felony convictions
- Ownership of a licensed site or facility
- Ability to maintain records, including books, invoices, etc.
What are the different types of cannabis distributor licenses in New York?
New York offers three distinct types of distributor licenses
- Adult-use cannabis distributor license
- Registered organization adult-use cultivator processor distributor (non-dispensary) license
- Registered organization adult-use cultivator processor distributor retail dispensary license.
When planning the proposed site, note that it cannot be residentially zoned – commercial, industrial, or agricultural zoning is recommended. As a licensed adult-use cannabis distributor in New York, you can purchase, store, and sell cannabis products from various adult-use cannabis processors, cooperatives, micro businesses, and registered organizations with dispensaries.
How much does cannabis distributor license cost in New York?
Application for the adult-use distributor license requires a non-refundable fee of $7,000 per operating premises. The facility can be of any size, provided it houses the necessary secured storage and a third-party monitored security system, complete with perimeter and interior cameras, motion detectors, door contacts, glass break detectors, and access control systems.
In terms of operation, the site must be capable of preserving the integrity of the stored cannabis – safety, security, temperature, and humidity must be strictly controlled and monitored. Remember, the quality of cannabis products originating from an adult-use cannabis processor or manufacturer, which typically comes from a GMP-certified facility, must be upheld.
Regarding transportation, cannabis products must be shipped securely, hidden from public view, with detailed information about the shipment. Registered motorized vehicles with the Office of Cannabis Management are obligatory, bearing no logos or advertisements that identify them as a cannabis distributor. Further, they should be equipped with temperature and humidity controls, a GPS for real-time tracking, and ideally, additional security features like dash cams and vehicle alarms.
It’s worth noting that adult-use cannabis distributors can work with multiple license holders and are not limited to a single business. Direct deliveries to consumers are not permitted, and any transportation used to transport cannabis products is considered an extension of the licensed premises and is subject to inspection.
Applications for the adult-use cannabis distributor license are expected to open in Q3 of 2023. This new frontier of the marijuana business is full of potential – now is the time to stake your claim.
