NY Marijuana Cultivation & Dispensary Rules
New York Growers & 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.
How To Become A NY Registered Organization - RO
- 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.
Labeling, Packaging & Advertising Requirements
- 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.
New York Marijuana Taxation
- 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.
