MJBizMag January 2023 - 29

Connecticut
Rhode Island
that New York state will live up to
its marquis market billing and that
there are thousands more business
opportunities on the horizon.
NEW PHASE, NEW LICENSES
Those opportunities are likely outlined
in 282 pages of regulations that the
CCB approved on Nov. 21, but which
aren't expected to be published
until Dec. 14, after press time. The
regulations will likely go through
comment-and-revision periods, which
means they might not be finalized until
April or later.
So, new license application periods
probably won't open until mid- to late
2023, Neer said.
Scoring those applications could take
another three to six months, she added.
Then, license winners will need zoning,
NEW YORK
SNAPSHOT*
Ballot initiative or legislation: The Marihuana Regulation and
Taxation Act, or MRTA, was signed into law on March 31, 2021, one
day after it was passed by the state Legislature.
Regulatory agency: The Office of Cannabis Management and the
Cannabis Control Board, which are responsible for drafting and
approving regulations and issuing licenses.
Business license types and fees: For the " conditional " rollout phase
now underway, regulators have stipulated that cultivation, delivery,
distribution, microbusiness, nursery, processor and retail licenses are
reserved for social equity and/or New York small business applicants.
Conditional cultivation and processing license applications and fees
cost $2,000; there are no fees for conditional retail licenses. Fees for
other classes of licenses have not yet been decided.
After these conditional licenses have been awarded, the state will
issue new licenses, likely using the same categories. Regulations
governing these licenses were published after this issue went to print.
License caps: None. So far, license caps do not appear in any
regulations, and updated rules have yet to be released. There has been
discussion about basing retail store numbers on consumer demand.
State tax requirements: Tax rates vary depending on cannabis
format at the distribution level. The state retail excise tax is 9%, and
allowable local retail excise tax is 4%.
Out-of-state applicants: The first wave of " conditional licenses " are
for New York residents and social equity applicants only. Regulations
governing future licenses haven't been released yet, but out-of-state
applicants are expected to be allowed.
Product types allowed: Program details are still being determined.
Anticipated sales launch: Political and program leaders had hoped
for late 2022, and a small number of retailers might still open before
2023 (this magazine went to press in mid-December). To jump-start
sales, the Office of Cannabis Management announced it would allow
qualifying businesses to launch delivery services before opening
their retail stores. Regulators and Gov. Kathy Hochul have insisted
that adult-use sales begin before Jan. 1.
2022 population and patient numbers: With a population of
19.8 million people, the state had 123,951 medical marijuana
cardholders as of Nov. 1, representing 0.63% of the state population.
Predicted size of market: $1 billion-$1.2 billion in the first year and
$2.2 billion-$2.7 billion in 2026.
Local control and opt-in/opt-out rules: Cities, towns and villages can
opt out of allowing adult-use cannabis retail or on-site consumption
lounges within their jurisdictions. Municipalities are prohibited
from opting out of other adult-use license types. Additionally,
municipalities are prohibited from opting out of medical marijuana or
cannabinoid/hemp license types.
Social equity provisions: The first 150 retail licenses are set aside
for applicants who meet social equity and economic requirements or
have been incarcerated for certain marijuana offenses. Cultivation
and processing licenses are being awarded to licensed hemp growers
and processors in the state.
* Data is from the 2022 MJBiz Factbook, MJBizDaily, MJBizMagazine and the
New York Office of Cannabis Management, unless otherwise noted.
Alabama
financing, leases and other business
necessities to get their stores open.
Wright believes getting regulations
finalized can happen sooner. " I don't
want to give a month, but I think that
we're in the ballpark for the first half
of 2023, " Wright said. " We need the
regulations to be final in order to open
an application period. "
There haven't yet been any official
tallies released on how many retailers
New York can absorb, but observers
believe the state could handle at least
1,000 stores.
" You can have 1,000 licenses in
the state of New York and still not be
saturated, " said Bob Wagener, vice
president of business development for
Colorado-based marijuana industry
consulting firm Canna Advisors.
While there are already 270 or so
Mississippi
growers in New York, Neer said there
will still be cultivation opportunities.
The current conditional growers
must either be greenhouse or outdoor
growers, and their flowering canopy
is capped at 35,000 square feet in a
greenhouse and 1 acre for outdoors.
NODS TO SMALL BUSINESSES
New York's draft regulations are
expected to contain several provisions
intended to aid small businesses.
For example, in an effort to keep big
businesses from dominating through
vertical integration, growers and
processors are prohibited from having
any kind of interest or share in retail
companies.
" That really favors local residents
when you're going in front of a town
board. ... They don't want somebody
mjbizdaily.com | January 2023 29
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MJBizMag January 2023

Table of Contents for the Digital Edition of MJBizMag January 2023

MJBizMag January 2023 - 1
MJBizMag January 2023 - 2
MJBizMag January 2023 - 3
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