Cannabis Business in New York

The New York state cannabis market generated over $150 million in retail sales for the Fiscal Year 2022-2023:

• More than 3.5 million units of cannabis products from over 550 distinct cannabis strains were sold across the 40 Adult-Use retail dispensaries that are open for business across the state,
• The Medical Cannabis Program in NY has grown to nearly 122 thousand registered patients, saving consumers at least 6 percent in excise tax,
• Cannabis Growers' Showcases contributed 3% of the total revenue, amounting to $4.8 million,
• Nearly $16.3 million in revenue was reported for the State Fiscal Year 2023.

Business Opportunities in New York's Cannabis Industry

The state's marijuana laws allow for the sale of several CBD products. However, CBD vape and smoking products are not allowed. Also, food products that have been infused with CBD are not permitted for sale.

If you are looking to buy a cannabis business or start your own, you will need to be aware of the licensing requirements in New York State. The Office of Cannabis Management (OCM) issues licenses to businesses in the cannabis industry. Currently, there are 12 different adult-use cannabis license types available. For those interested in cultivating cannabis, the state offers an adult-use cultivator license. New York State also offers an adult-use nursery license for cultivators who want to sell seeds, clones, and immature plants to other cannabis businesses. Other cannabis business licenses available include:

• Adult-Use Processor
• Adult-Use Distributor
• Adult-Use Cooperative
• Adult-Use Microbusiness
• Adult-Use Retail Dispensary
• Adult-Use On-Site Consumption
• Adult-Use Delivery

Hemp Business in NY State

For individuals interested in growing hemp in New York State, the Department of Agriculture and Markets (NYSDAM) requires authorization as a Research Partner. To be eligible, the applicant must include a description and map of each facility, as well as GPS coordinates. A comprehensive research plan outlining proposed research is required. A marketing and seed acquisition plan must also be provided. Finally, a statement of experience and a non-refundable application fee of $500 are also required.

Regulations Regarding Testing

The New York State Department of Health Bureau of Narcotic Enforcement (BNE) issues testing certification to laboratories that wish to analyze cannabis for contaminants. Marijuana testing laboratories ensure that licensed cannabis businesses for sale or in operation meet all of the state's safety regulations. For a marijuana testing laboratory to be recognized by the New York State Department of Health (NYSDOH), they must maintain ISO/IEC 17025 accreditation. This accreditation ensures a laboratory's competence to produce both calibration and testing results.

To obtain a testing license from the state, a laboratory must be located in New York and possess a controlled drug license issued by BNE.

There are no application fees for a cannabis laboratory testing license, however, a $500 accreditation fee applies.