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New York Cannabis Laws

This comprehensive guide covers key aspects such as licensing, application eligibility, social equity commitments, site and operating plans, store location requirements, operating requirements, security measures, employee training, and inventory tracking.

Every Dispensary Must Know

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NY Laws at a Glance

Overview

The legal landscape for cannabis in New York has evolved significantly since the state first legalized medical marijuana in 2016. In 2021, the Marijuana Regulation and Taxation Act (MRTA) was signed into law, legalizing adult-use cannabis. As of 2022, recreational cannabis

Key Points

  1. Regulatory Bodies
    • The Office of Cannabis Management (OCM) is the primary regulatory authority overseeing New York’s adult-use cannabis market.
    • The Cannabis Control Board is responsible for creating and implementing social and economic equity plans to promote diversity within the cannabis industry.
  2. Licensing
    • General Cannabis Licensing opened on October 4, 2023, allowing businesses to apply for adult-use cannabis licenses beyond the Conditional Adult-Use Retail Dispensary (CAURD) licenses.
    • Licensing requirements include detailed disclosures of personal, financial, and premises information, as well as compliance with criminal history checks.
  3. Social Equity Commitment
    • New York’s cannabis law emphasizes social equity, requiring licensees to demonstrate a commitment to helping communities disproportionately affected by past cannabis prohibition.
    • Applicants must submit comprehensive community impact plans outlining their strategies for community engagement and support.
  4. Site and Operating Plans
    • Dispensaries must submit detailed site and operating plans, including location specifics, sanitation facilities, security measures, and operating procedures to prevent theft and ensure compliance.
  5. Store Location Requirements
    • Dispensaries cannot be located within 500 feet of a school or within 200 feet of a house of worship.
    • Additional distance requirements apply based on municipal population, ensuring dispensaries are appropriately spaced.
  6. Operating Requirements
    • Dispensaries must be physical brick-and-mortar stores, with secure, child-resistant storage for cannabis products.
    • Only authorized employees aged 21 or older can sell cannabis products, and dispensaries must verify the age of consumers using valid identification.
    • Operating hours must be visibly posted, and dispensaries must offer educational materials about cannabis consumption to customers.
  7. Security
    • Robust security measures are mandatory to prevent theft, diversion, and unauthorized access.
    • Dispensaries must implement comprehensive security plans, including video surveillance, secure storage, and restricted access areas.
  8. Employee Training
    • All employees must complete Responsible Workforce Training, which includes cannabis product safety, implicit bias training, and employee safety procedures.
    • Ongoing training and supervision are required to ensure compliance with standard operating procedures.
  9. Inventory Tracking
    • Dispensaries must use a real-time inventory tracking system to monitor all cannabis products from sale to inventory.
    • Accurate record-keeping and regular audits are essential to maintaining compliance with state regulations.
  10. Consumption Limits
    • Adults 21 and older can possess up to three ounces of cannabis and up to 24 grams of concentrated cannabis.

Frequently Asked Questions (FAQs)

  • Do dispensaries have to use BioTrack?
    • BioTrack is New York’s official cannabis track and trace system, but dispensaries can choose compliant alternatives.
  • How much cannabis can I buy in New York?
    • Adults 21 and older can purchase up to three ounces of cannabis flower or up to 24 grams of concentrated cannabis per transaction.
  • How is cannabis taxed in New York?
    • Cannabis is subject to both state and local taxes, with price tags required to show the total cost, including taxes.
  • Can I visit a dispensary without a medical card?
    • Yes, recreational cannabis is available to adults 21 and older without the need for a medical card.

New York’s cannabis regulations are detailed and comprehensive, designed to ensure a safe, equitable, and well-regulated market. Staying informed and compliant with these laws is crucial for anyone involved in the cannabis industry in New York.

Licensing

Overview

Securing a cannabis license in New York involves a thorough and detailed process. The state has established a structured framework to ensure that all applicants meet strict requirements related to personal history, business plans, financial disclosures, and commitment to social equity. Here’s an in-depth look at the licensing process and requirements for adult-use cannabis dispensaries in New York.

Licensing Process and Requirements

  1. General Cannabis Licensing
    • As of October 4, 2023, New York has opened General Cannabis Licensing for businesses wishing to operate adult-use cannabis dispensaries, expanding opportunities beyond the Conditional Adult-Use Retail Dispensary (CAURD) licenses.
  2. Application Information
    • Applicants and their true parties of interest must provide comprehensive personal and entity information, including:
      • Names, contact details, social security numbers, and identification.
      • Ownership interest percentages for all involved parties.
      • Information about the applicant’s online presence, corporate structure, and business history.
  3. Ownership and Financial Disclosures
    • Detailed ownership interests and financial information must be disclosed, including:
      • Details of parent companies, subsidiaries, and any changes in ownership.
      • Legal documents related to the business’s structure and financials.
      • Financial statements and tax documents.
      • Disclosure of any cannabis-related licenses or authorizations in other jurisdictions.
  4. Criminal History and Legal Proceedings
    • Applicants must provide fingerprints and criminal history information.
    • Any legal actions, judgments, bankruptcies, and tax delinquencies within the past ten years must be disclosed.
    • Evidence of good moral character, including a detailed criminal history report, is required.
  5. Premises Information
    • Applicants must provide detailed information about the premises where licensed activities will occur, including:
      • Ownership details, location, layout compliance, certificates of occupancy, and lease agreements.
      • Proof that the premises meet all local and state regulations.
  6. Application Eligibility
    • Applicants must demonstrate eligibility for their desired license type by providing:
      • A comprehensive community impact plan.
      • Plans for compliance with environmental, operational, and safety standards.
      • Evidence of engagement in workforce or training programs.
      • Documentation of an equitable workplace, including fair wages, employee benefits, and diversity initiatives.
  7. Social and Economic Equity
    • To promote fairness and economic growth, applicants must show a commitment to social and economic equity by:
      • Submitting a community impact plan that outlines strategies to support communities disproportionately affected by cannabis prohibition.
      • Detailing the resources and partnerships used to implement the plan.
      • Providing metrics for measuring the plan’s success and demonstrating the applicant’s capacity to meet these goals.
  8. Provisional Licensing Status
    • The Cannabis Control Board will assess applicants based on various criteria, including:
      • Social and economic equity status.
      • Completion of community impact plans and compliance strategies.
      • Participation in leadership roles within community organizations and businesses.
  9. Premises Compliance
    • Applicants must ensure their premises meet all state and local requirements, including:
      • Accessibility from the street and suitability for business activities.
      • Adherence to distance requirements from schools, houses of worship, and other dispensaries.

Key Dates and Updates

  • September 12, 2023: Final approval for adult-use cannabis regulations was granted.
  • October 4, 2023: General Cannabis Licensing opened, allowing businesses to apply for adult-use cannabis licenses.

Staying compliant with these licensing requirements is essential for the successful operation of a cannabis dispensary in New York. Ensuring all documentation is accurate and up-to-date, and demonstrating a commitment to social equity, will help applicants navigate the rigorous licensing process.

Application Eligibility

Overview

To qualify for an adult-use cannabis dispensary license in New York, applicants must meet a comprehensive set of eligibility criteria. This includes demonstrating compliance with state regulations, providing detailed business and personal information, and showing a commitment to social and economic equity. Here’s a detailed breakdown of the application eligibility requirements.

Eligibility Criteria

  1. Basic Eligibility Requirements
    • Applicants must submit detailed personal and entity information, including:
      • Names, contact details, social security numbers, and identification.
      • Disclosure of ownership interest percentages for all involved parties.
      • Information about the applicant’s online presence, corporate structure, and business history.
  2. Criminal History and Legal Standing
    • Applicants must provide fingerprints and comprehensive criminal history information.
    • Disclosure of any legal actions, judgments, bankruptcies, and tax delinquencies within the past ten years.
    • Evidence of good moral character is required, including a detailed criminal history report.
  3. Community Impact Plan
    • Applicants must submit a community impact plan outlining their strategies to support communities disproportionately affected by cannabis prohibition. The plan should include:
      • Identification of the specific communities and individuals targeted for support.
      • Description of the benefits to be provided, such as job creation, community programs, and educational initiatives.
      • Explanation of the need for these benefits and how they will make a difference socially and economically.
      • Details of the resources and partnerships to be used for implementing the plan.
      • Metrics for measuring the success of the plan and demonstrating the applicant’s capacity to achieve these goals.
  4. Operational Compliance
    • Applicants must submit plans demonstrating compliance with all operational standards and regulations, including:
      • Environmental protection measures.
      • Strategies for reducing carbon footprint and promoting sustainable energy use.
      • Detailed operating procedures to ensure adherence to state regulations.
  5. Workforce and Training Programs
    • Successful completion of workforce or training programs offered by the Office of Cannabis Management.
    • Documentation of an equitable workplace, including policies on:
      • Fair wages and employee benefits.
      • Training programs and employee retention rates.
      • Diversity in hiring and promotions.
  6. Provisional Status and Social Equity
    • The Cannabis Control Board will evaluate applicants based on:
      • Provisional licensing status.
      • Social and economic equity status.
      • History of establishing an equitable workplace.
      • Participation in leadership roles within established and licensed businesses, nonprofits, community organizations, and other relevant entities.
  7. Premises Information
    • Applicants must provide detailed information about the premises where licensed activities will occur, including:
      • Ownership details, location, and layout compliance.
      • Certificates of occupancy and lease agreements.
      • Proof of compliance with local and state regulations.
  8. Compliance with State Regulations
    • Applicants must demonstrate their ability to comply with all state regulations, including:
      • Security measures to prevent theft, diversion, and unauthorized access.
      • Real-time inventory tracking systems to monitor all cannabis products.
      • Adherence to store location requirements, such as distance from schools and houses of worship.

Required Documentation

Applicants must submit various documents to demonstrate their eligibility, including:

  • Personal and Entity Information
  • Ownership and Financial Disclosures
  • Criminal History Reports
  • Community Impact Plans
  • Operating Plans and Procedures
  • Workforce Training Documentation
  • Premises Compliance Details

Key Considerations

  • Social Equity Commitment: Applicants must show a strong commitment to social and economic equity by supporting communities affected by past cannabis prohibition.
  • Operational Excellence: Detailed operating procedures and compliance with environmental and safety standards are critical.
  • Workforce Development: Training programs and equitable workplace policies are essential for approval.

Meeting these eligibility criteria is crucial for obtaining an adult-use cannabis dispensary license in New York. Applicants must ensure that all required documentation is accurate and comprehensive, demonstrating their commitment to compliance and social equity.

Commitment to Social Equity

Overview

New York’s cannabis laws place a strong emphasis on social equity, aiming to rectify the harms caused by cannabis prohibition, particularly in communities disproportionately affected by the War on Drugs. To obtain a cannabis license, applicants must demonstrate a firm commitment to social and economic equity through comprehensive plans and tangible actions. Here’s a detailed guide on how to meet these requirements.

Social Equity Goals

The Cannabis Control Board’s social equity goals include:

  • Promoting diversity within the cannabis industry.
  • Supporting communities disproportionately affected by cannabis prohibition.
  • Ensuring equitable access to cannabis business opportunities.

Community Impact Plan

Applicants must submit a detailed community impact plan that includes:

  1. Identification of Target Communities
    • Specify which communities and individuals the plan aims to support.
    • Focus on those disproportionately impacted by cannabis prohibition.
  2. Description of Benefits
    • Outline the specific benefits to be provided, such as:
      • Job creation.
      • Community programs.
      • Educational initiatives.
      • Economic opportunities.
    • Explain how these benefits will support social and economic development.
  3. Justification of Need
    • Provide a clear explanation of why these benefits are necessary.
    • Highlight the social and economic disparities caused by past cannabis laws.
    • Demonstrate how the proposed benefits will address these disparities.
  4. Resources and Partnerships
    • Detail the resources required to implement the plan, including:
      • Financial resources.
      • Partnerships with community organizations.
      • Experience and expertise of the applicant.
    • Provide evidence of engagement with the community.
  5. Measurement of Success
    • Define metrics for measuring the success of the community impact plan.
    • Include regular monitoring and reporting mechanisms.
    • Show how these metrics align with the applicant’s capacity to deliver on the plan.
  6. Demonstration of Capacity
    • Showcase confidence in the ability to execute the plan.
    • Provide examples of past successful initiatives, if applicable.
    • Explain how the plan is feasible and sustainable.

Social Equity Status

To enhance social equity, applicants may need to meet certain criteria, such as:

  1. Social and Economic Equity Status
    • Demonstrate status as a member of a community disproportionately affected by cannabis prohibition.
    • Provide evidence of economic disadvantage or other qualifying factors.
  2. Workforce and Leadership Participation
    • Show involvement in leadership roles within established and licensed businesses, nonprofits, community organizations, or other relevant entities.
    • Highlight participation in workforce training programs and community engagement.

Equity Commitment in Operations

  1. Equitable Workplace Policies
    • Implement and document policies promoting fair wages, employee benefits, and diversity in hiring and promotions.
    • Maintain high employee retention rates through training and development programs.
  2. Environmental and Community Standards
    • Develop plans for compliance with environmental protection standards.
    • Outline strategies for reducing carbon footprint and promoting sustainable energy use.
  3. Regular Training and Development
    • Ensure employees receive ongoing training related to social equity, cannabis product safety, and workplace responsibility.
    • Conduct annual assessments to identify training needs and provide at least four hours of ongoing training per year to each full-time employee.

Documentation and Reporting

Applicants must submit the following documentation to demonstrate their commitment to social equity:

  • Community Impact Plan
  • Evidence of Social and Economic Equity Status
  • Workforce Training and Development Records
  • Environmental Compliance Plans
  • Regular Reports on Metrics and Outcomes

Key Considerations

  • Genuine Engagement: Demonstrate real engagement with the communities you aim to support.
  • Sustainable Practices: Ensure that your plans are feasible, sustainable, and have a long-term positive impact.
  • Transparency: Be transparent in reporting your progress and outcomes, and be prepared for regular reviews by the Cannabis Control Board.

By meeting these social equity requirements, applicants can contribute to a more inclusive and diverse cannabis industry in New York, helping to repair the social and economic damages caused by past cannabis laws.

Site and Operating Plans

Overview

In New York, cannabis dispensaries must submit detailed site and operating plans as part of their licensing application. These plans go beyond basic business details, requiring specific information about the physical location and operational procedures to ensure compliance with state regulations. Here’s an in-depth look at what these plans should include.

Site Plan Requirements

  1. Physical Location
    • Provide the exact address of the dispensary.
    • Include a detailed description of the property boundaries, nearby roads, and any water crossings.
  2. Property Layout
    • Describe the overall size and dimensions of all areas within the property.
    • Include a floor plan with labeled areas for different activities within the dispensary.
  3. Sanitation Facilities
    • Indicate the locations of all sanitation facilities on the property.
    • Ensure compliance with health and safety regulations.
  4. Entry and Exit Points
    • Detail all entry and exit points, including emergency exits.
    • Provide information on how these points are secured and monitored.
  5. Outdoor Signage
    • Describe any outdoor signage, including its location and content.
    • Ensure that signage complies with local and state regulations.
  6. Compliance with Location Rules
    • Provide proof that the dispensary meets all location rules, such as distance from schools and houses of worship.
    • Ensure the location is accessible from a public road suitable for business activities.

Operating Plan Requirements

  1. Operating Procedures
    • Develop comprehensive written operating procedures, including:
      • Measures to deter theft and prevent loss of cannabis products.
      • Procedures to restrict access to authorized personnel only.
      • Strategies to prevent loitering on the premises.
      • Methods for handling, storing, and transporting cash securely.
  2. Quality Assurance
    • Implement procedures for monitoring and addressing quality assurance concerns and complaints.
    • Establish protocols for maintaining product quality and safety.
  3. Employee Training
    • Identify workforce training needs and provide training on an annual basis.
    • Include training on security procedures, emergency protocols, and compliance with inventory tracking systems.
  4. Workplace Policies
    • Maintain a workplace that is free of alcohol, drugs, and smoke (except within designated consumption facilities).
    • Develop procedures for managing and disposing of hazardous waste and other waste materials.
  5. Sales and Consumer Safety
    • Ensure sales are conducted in compliance with state regulations.
    • Prevent sales to individuals who are underage, visibly impaired, or without proper identification.
    • Provide secure, child-resistant storage containers for cannabis products.
  6. Accessibility
    • Ensure the dispensary is accessible to individuals with physical disabilities.
    • Maintain compliance with local laws regarding noise, odors, and use of public sidewalks.
  7. Employee Handbook
    • Create an employee handbook that includes:
      • Detailed roles and responsibilities related to the implementation of operating procedures.
      • Information on safe cannabis consumption practices.
      • Guidance on complying with inventory tracking and allowing inspections.
      • Procedures for emergency shutdown and employee safety.
  8. Security Measures
    • Implement robust security plans to prevent theft, diversion, and unauthorized access.
    • Maintain adequate lighting and secure all entrances.
    • Use a security system with alarms, video surveillance, and backup power.
  9. Surveillance and Incident Reporting
    • Maintain surveillance cameras covering key areas, with video recordings retained for at least 60 days.
    • Report any security breaches or incidents to the Office of Cannabis Management within 24 hours.
  10. Inventory Tracking
    • Use a real-time inventory tracking system to monitor cannabis products.
    • Conduct regular inventory audits and report any discrepancies.

Documentation

Applicants must submit the following documents as part of their site and operating plans:

  • Detailed Site Plan: Including location, layout, and compliance with zoning laws.
  • Comprehensive Operating Plan: Covering all operating procedures, security measures, and employee training protocols.
  • Employee Handbook: Outlining roles, responsibilities, and procedures.
  • Security Plan: Including surveillance and incident reporting procedures.
  • Inventory Tracking System Details: Demonstrating compliance with state requirements.

Key Considerations

  1. Thorough Planning: Ensure all aspects of the dispensary’s operations are meticulously planned and documented.
  2. Regulatory Compliance: Adhere to all local and state regulations to avoid penalties or license revocation.
  3. Employee Training: Invest in ongoing training to maintain a knowledgeable and compliant workforce.
  4. Security: Implement robust security measures to protect the dispensary and its products.

By developing comprehensive site and operating plans, applicants can demonstrate their preparedness and commitment to operating a compliant and secure cannabis dispensary in New York.

Store Location Requirements

Overview

Choosing the right location for a cannabis dispensary in New York involves complying with a range of state and local regulations. These requirements are designed to ensure that dispensaries operate in appropriate areas and maintain a safe distance from sensitive locations such as schools and places of worship. Here’s a detailed guide on the store location requirements for New York cannabis dispensaries.

Location Criteria

  1. Accessibility from the Street
    • Dispensaries must be easily accessible from a public street.
    • The location should be on a public road that is suitable for business activities.
  2. Distance from Schools
    • Dispensaries cannot be located within 500 feet of a school.
    • This distance is measured from the closest property line of the school to the closest property line of the dispensary.
  3. Distance from Houses of Worship
    • Dispensaries must be at least 200 feet away from houses of worship.
    • This distance is measured along the street from the house of worship to the nearest entrance of the dispensary.
  4. Distance from Other Dispensaries
    • Dispensaries must maintain a certain distance from other licensed adult-use dispensaries and medical cannabis facilities.
    • The required distance varies based on the population of the municipality:
      • In municipalities with a population of 20,000 or more, the distance must be at least 1,000 feet.
      • In municipalities with a population of less than 20,000, the distance must be at least 2,000 feet.
    • Exceptions can be made with specific approval from local authorities.

Local Zoning and Compliance

  1. Zoning Laws
    • Ensure that the chosen location complies with all local zoning laws and regulations.
    • Check for any additional local requirements or restrictions on cannabis businesses.
  2. Certificates of Occupancy
    • Obtain all necessary certificates of occupancy to demonstrate that the property is suitable for business activities.
    • Ensure that the property meets all building and safety codes.
  3. Lease Agreements
    • Secure a lease agreement that explicitly permits the operation of a cannabis dispensary.
    • Include provisions that address compliance with state and local cannabis regulations.

Visibility and Signage

  1. Outdoor Signage
    • All outdoor signage must comply with state and local regulations.
    • Signage should be discreet and not overly promote the presence of the dispensary.
    • Ensure that signage does not violate local advertising restrictions.
  2. Window Displays
    • Cannabis products should not be prominently displayed in windows.
    • Maintain a professional and compliant appearance that respects community standards.

Community Considerations

  1. Community Impact
    • Consider the impact of the dispensary on the surrounding community.
    • Engage with community leaders and residents to address any concerns and build positive relationships.
  2. Noise and Odor Control
    • Implement measures to control noise and odors associated with the dispensary.
    • Ensure compliance with local ordinances regarding noise levels and odor management.
  3. Parking and Traffic
    • Provide adequate parking for customers and employees.
    • Ensure that the location can handle the expected traffic without causing disruptions.

Key Documentation

Applicants must submit the following documents to demonstrate compliance with store location requirements:

  • Property Deeds or Lease Agreements
  • Zoning Approval Documents
  • Certificates of Occupancy
  • Site Maps and Distance Measurements
  • Community Impact Statements

Key Considerations

  • Regulatory Compliance: Ensure the location meets all state and local regulations to avoid issues with licensing.
  • Community Relations: Foster positive relationships with the community to support the dispensary’s operation.
  • Operational Suitability: Choose a location that supports the business’s operational needs and customer convenience.

 

By carefully selecting a compliant and suitable location, applicants can improve their chances of obtaining a cannabis dispensary license and operating successfully within New York’s regulated market.

Operating Requirements

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.

By following these operating requirements, cannabis dispensaries in New York can ensure they meet state regulations, provide a safe environment for customers and employees, and operate efficiently within the legal cannabis market.

Security

Overview

Security is a critical aspect of operating a cannabis dispensary in New York. Dispensaries must implement stringent security measures to prevent theft, diversion, and unauthorized access. These requirements encompass physical security, surveillance, access control, and incident reporting. Here’s a comprehensive guide to the security requirements for New York cannabis dispensaries.

General Security Requirements

  1. Robust Security Plan
    • Develop and maintain a comprehensive security plan that addresses all aspects of dispensary security.
    • The plan should detail procedures for preventing theft, diversion, and unauthorized access to the premises.
  2. Adequate Lighting
    • Ensure adequate lighting inside and outside the facility to facilitate effective surveillance and deter criminal activities.
    • Lighting should cover all entry and exit points, parking areas, and other critical areas.

Physical Security Measures

  1. Secure Entrances and Exits
    • All entrances and exits must be secured with appropriate locking mechanisms and monitored continuously.
    • Emergency exits should be equipped with alarms and accessible only to authorized personnel.
  2. Controlled Access
    • Restrict access to the premises to individuals aged 21 and older.
    • Implement access control systems, such as keycards, biometric scanners, or PIN codes, to restrict entry to authorized personnel only.
  3. Storage Requirements
    • Store all cannabis products securely in locked safes, vaults, or approved storage areas within the facility.
    • Ensure that storage areas are out of plain sight from outside the premises and only accessible to authorized personnel.

Surveillance System

  1. Comprehensive Video Surveillance
    • Install a video surveillance system covering key areas, including:
      • Sales counters
      • Points of entry and exit
      • Storage areas
      • Parking lots
    • Ensure that all areas where cannabis is handled, processed, or stored are under continuous surveillance.
  2. Recording and Retention
    • Retain video recordings for at least 60 days.
    • Ensure that recordings are stored securely and are accessible for inspection by the Office of Cannabis Management (OCM) or other authorities.
  3. Surveillance Equipment Maintenance
    • Regularly test and maintain surveillance equipment to ensure it is functioning correctly.
    • Keep a log of maintenance activities and any issues that arise.

Employee and Visitor Identification

  1. Identification Badges
    • Issue identification badges to all employees and visitors.
    • Badges should include essential information such as names, photographs, and employee or visitor ID numbers.
  2. Visitor Logs
    • Maintain a log of all visitors, including names, arrival and departure times, and the purpose of their visit.
    • Ensure that visitors are accompanied by authorized personnel at all times while on the premises.

Incident Reporting and Response

  1. Incident Reporting Procedures
    • Develop procedures for reporting security incidents, including theft, diversion, criminal actions, and inventory discrepancies.
    • Notify the OCM within 24 hours of discovering a security incident.
  2. Detailed Incident Reports
    • Submit detailed incident reports to the OCM within ten days of an incident.
    • Reports should include the circumstances of the incident, corrective actions taken, and notifications to law enforcement, if applicable.
  3. Documentation Retention
    • Retain all documentation related to security incidents for at least five years or for the duration of any ongoing investigations.

Additional Security Measures

  1. Landscaping and Exterior Maintenance
    • Design landscaping to prevent individuals from hiding on the premises.
    • Maintain clear sightlines around the facility to enhance visibility and security.
  2. Alarm Systems
    • Install perimeter alarms and failure notification systems to alert personnel of any security breaches.
    • Ensure that the alarm system includes backup power for at least eight hours in case of a power outage.
  3. Security Training for Employees
    • Provide security training to all employees, emphasizing the importance of adhering to security protocols and procedures.
    • Conduct regular refresher training sessions to keep employees updated on new security measures and potential threats.

Key Considerations

  • Proactive Security Measures: Implement comprehensive security measures to prevent incidents before they occur.
  • Regular Audits: Conduct regular security audits to identify and address any vulnerabilities in the security plan.
  • Employee Vigilance: Train employees to remain vigilant and report any suspicious activities or security concerns immediately.
  • Collaboration with Authorities: Maintain open communication with local law enforcement and regulatory authorities to ensure compliance and swift response to incidents.

 

By adhering to these security requirements, cannabis dispensaries in New York can ensure a safe and secure environment for their products, employees, and customers, thereby maintaining compliance with state regulations and protecting their business operations.

Employee Training

Overview

Proper training of employees is crucial for the successful operation of a cannabis dispensary in New York. Employees must be well-versed in various aspects of cannabis handling, safety protocols, regulatory compliance, and customer service. This ensures that dispensaries operate efficiently, safely, and in compliance with state regulations. Here’s a detailed guide to the employee training requirements for New York cannabis dispensaries.

Initial Training Requirements

  1. Responsible Workforce Training
    • All managers, employees, contractors, volunteers, and anyone performing activities under the licensee’s authorization must complete Responsible Workforce Training within 30 days of starting their roles.
    • The training is provided at no cost to the recipients and must include the following elements:
      • Cannabis Product Safety and Responsibility
      • Cannabis Workforce Responsibility
      • Implicit bias training or cultural competency training
      • Employee and public safety
  2. Employee Handbook
    • Provide each employee with an employee handbook that includes:
      • Detailed roles and responsibilities
      • Information on safer consumption of cannabis products
      • Procedures for complying with inventory tracking systems
      • Guidelines for adhering to security and emergency procedures

Ongoing Training and Supervision

  1. Annual Training Needs Assessment
    • Conduct an annual assessment to identify the training needs of all staff members.
    • Ensure that employees receive at least four hours of ongoing training per year.
  2. Standard Operating Procedures (SOPs)
    • Train employees on the dispensary’s standard operating procedures, including:
      • Security protocols
      • Emergency procedures
      • Inventory management
      • Customer service practices
  3. Supervision and Competence
    • Ensure that all staff, including trainees, are adequately supervised by individuals familiar with standard operating procedures.
    • Staff members must demonstrate competence in their assigned activities before working independently.

Specialized Training Topics

  1. Cannabis Product Safety
    • Educate employees on the proper handling, storage, and sale of cannabis products.
    • Include training on recognizing and addressing potential quality issues.
  2. Security Protocols
    • Train employees on security measures, including access control, surveillance monitoring, and incident reporting.
    • Emphasize the importance of maintaining a secure environment and following all security protocols.
  3. Customer Interaction
    • Provide training on verifying customer identification and ensuring compliance with age restrictions.
    • Train employees on how to handle interactions with impaired customers and refusing sales when necessary.
  4. Inventory Management
    • Educate employees on the use of real-time inventory tracking systems.
    • Include training on accurate record-keeping, physical tagging and labeling, and conducting inventory audits.
  5. Emergency Procedures
    • Train employees on emergency shutdown procedures, fire safety, and evacuation plans.
    • Ensure employees know how to respond to medical emergencies and other unexpected situations.

Documentation and Compliance

  1. Training Records
    • Maintain detailed records of all training sessions, including dates, topics covered, and employee attendance.
    • Ensure that training records are available for inspection by regulatory authorities.
  2. Compliance Audits
    • Conduct regular audits to ensure that all employees are up-to-date with their training requirements.
    • Address any gaps or deficiencies in training promptly.

Key Considerations

  • Continuous Improvement: Regularly update training programs to reflect changes in regulations, industry best practices, and emerging trends.
  • Employee Engagement: Encourage employee feedback on training programs to improve their effectiveness and relevance.
  • Safety and Compliance: Prioritize training topics that enhance the safety of both employees and customers, and ensure strict compliance with state regulations.
  • Accessible Training: Make training sessions easily accessible to all employees, including providing materials in multiple languages if necessary.

By implementing comprehensive and ongoing training programs, cannabis dispensaries in New York can ensure that their employees are knowledgeable, competent, and compliant with all state regulations, ultimately contributing to the safe and successful operation of the business.

Inventory Tracking

Overview

Effective inventory tracking is essential for the successful operation of a cannabis dispensary in New York. Accurate tracking ensures compliance with state regulations, helps prevent theft and diversion, and maintains product quality. Dispensaries must implement a real-time inventory tracking system and adhere to strict record-keeping and reporting requirements. Here’s a comprehensive guide to the inventory tracking requirements for New York cannabis dispensaries.

Real-Time Inventory Tracking System

  1. System Requirements
    • Implement an electronic real-time inventory tracking system that monitors all cannabis products from receipt to sale.
    • The system must be capable of:
      • Tracking cannabis products released for sale.
      • Enabling a total recall of all cannabis products if necessary.
      • Maintaining detailed records of all inventory activities.
  2. Integration with State System
    • While BioTrack is New York’s designated track and trace platform, dispensaries can use any compliant inventory tracking system.
    • Ensure that the chosen system can transmit data to the Office of Cannabis Management’s (OCM) BioTrack system as required.

Record-Keeping and Reporting

  1. Accurate Record-Keeping
    • Maintain accurate records of all inventory transactions, including:
      • Receipts of cannabis products
      • Sales and returns
      • Inventory adjustments
      • Disposals
    • Records must include specific data elements such as product type, weight or volume, date, unique identifiers, employee information, and activity type.
  2. Physical Tagging and Labeling
    • All cannabis products must be tagged or labeled with a unique identifier generated by the tracking system.
    • Labels should include essential information such as batch or lot numbers and product details.
  3. Initial Inventory
    • Conduct an initial comprehensive inventory of all cannabis and cannabis products when first engaging in licensed activities.
    • Report the initial inventory to the OCM using the tracking system.
  4. Inventory Controls and Audits
    • Establish and maintain inventory controls and procedures to ensure accurate tracking and reporting.
    • Conduct monthly and annual inventory audits and record audit information in the tracking system.
    • Use the Inventory Audit SOP template to document audit processes.
  5. Discrepancy Reporting
    • Notify the OCM of significant discrepancies in inventory within 24 hours of discovery.
    • Significant discrepancies vary depending on the type of licensee and must be clearly defined in internal policies.

Compliance and Security

  1. Security of Inventory Data
    • Ensure that all inventory data is securely stored and protected from unauthorized access.
    • Implement data backup procedures to prevent loss of inventory records.
  2. Access Control
    • Restrict access to the inventory tracking system to authorized personnel only.
    • Maintain a list of all employees authorized to access the system, including their first name, last name, and employee ID number (or other unique identifier).
  3. Training on Inventory Systems
    • Provide training to employees on the use of the inventory tracking system, including data entry, label generation, and audit procedures.
    • Include training on how to handle and report discrepancies in inventory.

Key Documentation

  1. Inventory Tracking System Details
    • Document the capabilities and compliance of the chosen inventory tracking system.
    • Maintain records of system maintenance and updates.
  2. Initial and Ongoing Inventory Records
    • Keep detailed records of the initial inventory and all subsequent inventory transactions.
    • Ensure records are up-to-date and available for inspection by regulatory authorities.
  3. Audit Reports
    • Document the results of monthly and annual inventory audits.
    • Include corrective actions taken to address any identified discrepancies.

Key Considerations

  • Regulatory Compliance: Adhering to state regulations for inventory tracking is crucial to maintaining a valid license and avoiding penalties.
  • Accuracy and Transparency: Ensure all inventory records are accurate and transparent, providing a clear audit trail for regulatory inspections.
  • Security and Control: Implement robust security measures to protect inventory data and control access to the tracking system.
  • Employee Training: Invest in comprehensive training programs to ensure employees are proficient in using the inventory tracking system and understanding compliance requirements.

By following these inventory tracking requirements, cannabis dispensaries in New York can ensure the integrity of their inventory, maintain compliance with state regulations, and contribute to the safe and effective operation of their business.

NY Laws FAQs

Overview

Understanding the complexities of New York’s cannabis laws is essential for anyone involved in the cannabis industry, from business owners to consumers. Here are answers to some of the most frequently asked questions regarding New York’s cannabis laws.

Frequently Asked Questions

  1. Is cannabis legal in New York?
    • Yes, both medical and adult-use (recreational) cannabis are legal in New York. Medical marijuana was legalized in 2016, and adult-use cannabis was legalized in 2021 with the signing of the Marijuana Regulation and Taxation Act (MRTA).
  2. Who regulates the cannabis market in New York?
    • The Office of Cannabis Management (OCM) is responsible for regulating the adult-use and medical cannabis markets in New York. The Cannabis Control Board oversees the creation and implementation of regulations and social equity programs.
  3. What are the age requirements for purchasing cannabis in New York?
    • Adults aged 21 and older can legally purchase and possess cannabis for recreational use. Medical cannabis is available to patients who qualify under New York’s medical marijuana program, regardless of age, though minors must have a designated caregiver.
  4. How much cannabis can I legally possess in New York?
    • Adults 21 and older can possess up to three ounces of cannabis flower and up to 24 grams of concentrated cannabis (e.g., oils, edibles).
  5. Can I grow cannabis at home in New York?
    • Yes, adults 21 and older can grow up to six plants at home for personal use, with a maximum of 12 plants per household.
  6. Do dispensaries have to use BioTrack for inventory tracking?
    • BioTrack is New York’s designated track and trace platform, but dispensaries are not required to use BioTrack specifically. They can choose any compliant inventory tracking system that can transmit data to the OCM’s BioTrack system.
  7. How do I open a dispensary in New York?
    • To open a dispensary, you must apply for a license through the OCM, meet all eligibility criteria, submit detailed site and operating plans, and demonstrate a commitment to social and economic equity. The application process includes providing comprehensive personal, financial, and premises information.
  8. What are the requirements for dispensary location in New York?
    • Dispensaries must be located on public roads suitable for business activities and cannot be within 500 feet of a school or within 200 feet of a house of worship. They must also meet specific distance requirements from other licensed dispensaries and medical cannabis facilities, which vary based on municipal population.
  9. How is cannabis taxed in New York?
    • Cannabis is subject to both state and local taxes. Retail prices must include all applicable taxes, and dispensaries are responsible for remitting these taxes to the state.
  10. Can I go to a dispensary without a medical card in New York?
    • Yes, adults aged 21 and older can purchase cannabis from a dispensary without a medical card. However, a medical card is required to purchase medical cannabis products if you are a registered patient under the state’s medical marijuana program.
  11. What are the penalties for violating cannabis laws in New York?
    • Penalties vary depending on the nature and severity of the violation. These can include fines, license suspension or revocation, and criminal charges. It is crucial for licensees to comply with all state regulations to avoid these penalties.
  12. Is consumption of cannabis allowed in public places?
    • No, consuming cannabis in public places is generally prohibited. Consumption is allowed in private residences and certain licensed consumption sites.
  13. What should I do if there is a discrepancy in my inventory?
    • Notify the OCM within 24 hours of discovering any significant inventory discrepancies. Conduct a thorough investigation, document the findings, and submit a detailed incident report within ten days.
  14. How can I ensure compliance with New York’s cannabis laws?
    • Stay informed about the latest regulations, maintain accurate records, implement comprehensive operating procedures, and ensure all employees receive proper training. Regular audits and adherence to security measures are also crucial for compliance.

Key Considerations

  • Stay Updated: Cannabis regulations can change frequently. Regularly check for updates from the OCM and Cannabis Control Board.
  • Compliance: Ensure your business practices align with all state and local regulations to avoid penalties.
  • Community Engagement: Foster positive relationships with the community and engage in social equity initiatives to support those affected by past cannabis prohibition.

By understanding and adhering to these FAQs and guidelines, individuals and businesses can navigate New York’s cannabis laws effectively and responsibly.

Disclaimer: The material contained on this website and any attached or referenced pages has been compiled by UZIO for informational purposes only. It is not intended to be and is not considered to be legal advice. This post is current as of [28-June-2024]. Cannabis regulations are rapidly changing, and legal advice of any nature should be sought from legal counsel.

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