New York Adult Use Distributor License

Nov 4, 2021 | Uncategorized

Through recent legislation, New York lawmakers have created and implemented an adult-use distributor license. This license allows people to begin a cannabis business and obtain their market share of this budding space.

With the introduction of Bill S854 in New York, it became the sixteenth state to legalize marijuana for recreational consumption. Thus, the need for an adult-use distributor license, along with several other cannabis licenses, became apparent.

Even though we will need to wait until New York passes the bill to officially legalize cannabis and for the state’s cannabis application to open, we’re delivering some information you’ll need to know if you plan to apply for an adult-use distributor license.

Keep reading to become more familiar with the options as you set off on your cannabis endeavor in New York.

Looking to start a dispensary in New York? Make sure to check out our article on how to open a dispensary in New York now.

New York Adult Use Distributor License

What is an Adult-use Distributor License?

The adult-use distributor license will allow you to acquire, possess, distribute, and sell cannabis from the licensed location of a licensed adult-use cultivator, processor, microbusiness, or small business adult-use cooperative that’s authorized to distribute adult-use cannabis, to duly licensed retail operations.

A distributor is any person who sells any cannabis product wholesale. However, this does not include medical cannabis. Selling medical cannabis as a distributor demands a different license.

The term “wholesale” means to receive or solicit an order for, keep with the intent to sell, keep or expose for sale, which is conducted by a licensed individual. This can include principal, agent, employee, or proprietor of any adult-use or medical-use cannabis or cannabis product, along with cannabinoid hemp and hemp extract products for the purpose of reselling it to make a profit.

Adult-Use Distributor License Limitations

Just like the New York adult use retail dispensary license, adult-use distributor licenses don’t come without a series of limitations, just like the other cannabis licenses offered in the state of New York. For example, distributors are not allowed to have direct or indirect economic interests in any of the adult-use retail dispensary or adult-use cultivator operations. Nor can they have direct or indirect interests in processors licensed or in any of the registered organizations.

The restrictions on this license don’t ban registered organizations authorized from being given licenses by the board to distribute adult-use cannabis products that have been cultivated and processed by a registered organization for licensed adult-use retail dispensary operations that are owned and operated by these registered organizations, though.

Distributors are still allowed to charge proper fees, which are authorized by the board. This is for cannabis distribution and these numbers are based on how much volume of cannabis is being distributed.

Concluding on the Adult-Use Distributor License in New York

For anyone interested in obtaining an adult-use distributor license to begin a legal cannabusiness in New York, you’ll need to know the limitations. Remember, you cannot have any direct or indirect interests in adult-use cultivators, processors, dispensaries, or registered organizations.

So who’s going to get their hands on these licenses? We’re not sure just yet. Keep checking our blog because we will update you when more information is released about this budding industry!

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