NY Marijuana Cultivation & Dispensary Rules

Registered organizations - RO's - are entities that the state licenses to produce and dispense medical marijuana.
RO’s:
- Can be for-profit or not-for-profit organizations
- Must contract with an independent laboratory approved by the Commissioner of Health for product testing.
- Cannot be managed by or employ anyone, who comes in direct contact with the marijuana, who has been convicted of felony drug charge within 10 years unless they received a certificate of relief or good conduct.
Growing must be done indoors which may include a greenhouse in a secure facility.
The Commissioner will not license more than 5 RO’s, which can each operate 4 dispensaries for a total of 20 dispensaries.
- Commissioner can add more RO’s if they determine a need.
DOH will issue regulations for RO’s, including regulation governing security and tracking.

To apply to be an RO, the organizations must meet a range of criteria, including that they:
- Have sufficient facilities and land or a bond of $2 million.
- Can maintain good security.
- Has entered into a labor peace agreement.
- Able to comply with all state laws.
In determining who can be an RO, the Commissioner should consider the public interest including regional access.
The fee for RO’s is to be determined by the Commissioner.
Licenses are valid for 2 years and then must be renewed.
Licenses can be immediately suspended of terminated if the RO is not adequately controlling diversion or otherwise violating the statute or regulations.

New York MMJ must be sold in a secure, properly labeled package.
Safety insert and warning label is required that includes methods of administration, clarity about individual dose, risks and dangers.
RO’s must determine and provide information to DOH, patients and practitioners about the quality, safety, and clinical strength of marijuana.
Commissioner is authorized to make rules about advertising consistent with those for prescription drugs.
Patients and caregivers must keep medical marijuana in the original packaging.

NY Medical marijuana is taxed through an excise tax, which means that the RO pays the tax directly to the state.
The law established a medical marijuana trust fund. 100% of revenue is to be deposited there.
Excise tax of 7% will be levied on gross receipts and paid by the RO.
- 5% goes to county were the medical marijuana was produced.
- 5% goes to county were the medical marijuana was dispensed.
- 5% goes to Office of Alcohol and Substance Abuse Services for prevention, counseling and treatment services.
- 5% goes to the Department Criminal Justice Services for discretionary grant program related to enforcement of the this title.