As part of the Program, businesses selling cannabinoid hemp products—both online and in person—must obtain a Cannabinoid Hemp Retail License from the Department. To apply, an applicant must submit an online application via the New York Business Express website.
Distributor Permit Application
Retail License Application
Cannabinoid hemp products include many products containing cannabinoids such as cannabidiol or “CBD,” which come in the form of tinctures, oils, topicals, pills, capsules, and food or beverages that are intended for human or animal consumption or application. The Cannabinoid Hemp Retail Licenses and Distributor Permits are not applicable to recreational adult-use marijuana, but New York’s adult-use legislation is currently pending.
Another amendment will allow for cannabis delivery services. Initially, delivery permits were left out of Cuomo’s bill, but the new addition will allow for delivery “as a way to open up access to this new industry even further so more New Yorkers can participate as it grows.” Importantly, local jurisdictions will have the opportunity to opt out of delivery services occurring within their borders.
To be approved by the Department of Health, businesses must meet a handful of requirements, including providing (1) proof of workers’ compensation insurance, (2) proof of product liability insurance, (3) proof of a good manufacturing practices audit, and (4) ownership and management information for the business.
While the regulations are not yet final and therefore not yet in effect, retailers, distributors and processors should get a head start in the application process and apply as soon as possible in anticipation of a potential backlog at the Department of Health.
Cannabinoid Hemp Processor Licenses
Through the Social Equity Fund, qualified community-based nonprofit organizations and local governments can apply for funding to support various revitalization efforts, including job placement and skill services, adult education, mental health treatment, substance use disorder treatment, financial literacy, and afterschool and childcare services. The New York Department of State will be tasked with allocating the funding through grants administered by the Empire State Development Corporation.
The sale of more than 16 ounces of marijuana or 80 grams of concentrate will be a class E felony
The application process is now live, and according to the regulations, retailers selling cannabinoid hemp products, including tinctures, oils, topicals, pills, foods and beverages, must apply for a license before April 1, 2021. The fee for a retail license is $300 per location. This means that if a retailer owns outlets selling hemp products, they must apply for and obtain a license for each location. Failure to comply could result in stiff penalties: $1,000 for the first violation, $5,000 for a second violation, and $10,000 for a third violation and each subsequent violation thereafter.
Cannabinoid Hemp Retailer Licenses
Out-of-state hemp brands entering into distribution agreements with New York distributors should ensure that their distributor of choice has its Cannabinoid Hemp Distributor Permit secured. If not, this oversight could be costly, given that the distributor will be unable to sell any hemp product to retailers.
Finally, Cuomo’s amendments reduce penalties for improper sales of marijuana: