New York Cannabis Laws

Overview

Operating a cannabis dispensary in New York requires strict adherence to a variety of regulations designed to ensure the safety, security, and proper management of the business. These requirements cover everything from employee responsibilities to security measures and inventory tracking. Here’s a comprehensive guide to the operating requirements for New York cannabis dispensaries.

General Operating Requirements

1. Physical Storefront
   • Dispensaries must operate as physical brick-and-mortar stores located within New York State.
   • Online sales are permitted, but the physical location must facilitate in-person sales and order pickups.
2. Order Fulfillment
   • Dispensaries may offer drive-thru service windows or pre-order pick-up lanes with prior written approval from the Office of Cannabis Management (OCM).
3. Employee Responsibilities
   • An “employee in charge” must be designated for each dispensary, responsible for supervision, management, and recordkeeping.
   • No employee in charge can oversee more than one dispensary simultaneously.

Sales and Consumer Safety

1. Verification of Identification
   • Dispensaries must verify the age of cannabis consumers using valid identification (driver’s licenses, passports, government-issued IDs).
   • Online orders must include an attestation of the consumer’s age, with age verification occurring at delivery or pickup.
2. Sales Restrictions
   • Only adults aged 21 and older can purchase cannabis products.
   • Dispensaries must refuse sales to individuals who are visibly impaired, underage, or lack proper identification.
   • Dispensaries cannot sell cannabis products to individuals showing signs of intoxication.
3. Operating Hours
   • Dispensaries can only operate during designated hours set by state regulations.
   • Hours of operation must be visibly posted inside the premises.
4. Child-Resistant Packaging
   • Cannabis products must be sold in secure, child-resistant storage containers.
5. Prohibited Activities
   • Dispensaries cannot give away cannabis products, advertise giveaways, or offer discounts and loyalty programs that use terms like “sale,” “free,” or “discount.”
   • Vending machines for dispensing cannabis are prohibited.

Security Measures

1. General Security
   • Implement robust security plans to prevent theft, diversion, and unauthorized access.
   • Maintain adequate lighting inside and outside the facility to facilitate surveillance.
2. Access Control
   • Restrict access to the premises to individuals aged 21 and older.
   • Use secure entry points with appropriate locking mechanisms and monitoring systems.
3. Surveillance
   • Install a comprehensive video surveillance system covering key areas such as sales counters, entry and exit points, and storage areas.
   • Retain video recordings for at least 60 days, making them available for inspection by authorities.
4. Incident Reporting
   • Report security breaches, thefts, and other incidents to the OCM within 24 hours.
   • Submit detailed incident reports within ten days, including corrective actions and notifications to law enforcement.

Inventory Tracking and Management

1. Real-Time Tracking
   • Use an electronic real-time inventory tracking system to monitor all cannabis products from receipt to sale.
   • The system must enable a total recall of products if necessary.
2. Accurate Record-Keeping
   • Maintain accurate records of all inventory transactions, including sales, returns, and adjustments.
   • Conduct initial and regular inventory audits to ensure consistency and compliance.
3. Physical Tagging and Labeling
   • All cannabis products must be tagged or labeled with unique identifiers generated by the tracking system.
   • Labels should include product type, batch number, and other relevant information.

Employee Training

1. Responsible Workforce Training
   • Provide Responsible Workforce Training to all managers, employees, contractors, and volunteers within 30 days of starting licensed activities.
   • Training includes cannabis product safety, workforce responsibility, implicit bias training, and public safety.
2. Ongoing Training
   • Ensure employees receive ongoing training on standard operating procedures, security, emergency protocols, and inventory tracking.
   • Provide at least four hours of ongoing training per year to each full-time employee.

Documentation and Compliance

1. Operating Procedures
   • Develop and maintain written operating procedures covering all aspects of dispensary operations, including security, inventory management, and employee responsibilities.
2. Employee Handbook
   • Create an employee handbook detailing roles, responsibilities, and compliance procedures.
   • Make the handbook available to all employees at all times.
3. Compliance Audits
   • Conduct regular compliance audits to ensure adherence to state regulations and operating procedures.
   • Address any discrepancies or issues promptly and report findings to the OCM.

Key Considerations

• Regulatory Compliance: Adhering to state and local regulations is crucial to maintaining a valid license and operating successfully.
• Employee Training: Invest in comprehensive training programs to ensure all staff are knowledgeable and compliant.
• Security and Inventory: Implement robust security measures and inventory tracking systems to protect products and maintain accurate records.
• Consumer Safety: Prioritize consumer safety by verifying age, providing secure packaging, and refusing sales to impaired individuals.