N.Y. Comp. Codes R. & Regs. tit. 9 § 123.18

Current through Register Vol. 46, No. 36, September 4, 2024

Section 123.18 - Registered Organization Adult-Use Cultivator Processor Distributor Retail Dispensary Operations

(a) A licensed ROD shall:

(1) comply with all requirements imposed by the Cannabis Law and this Title on licensed adult-use cultivators, processors, distributors, and retail dispensaries to the extent the ROD engages in such activities, unless otherwise provided for in this section;

(2) comply with all requirements for registered organizations pursuant to Part 113 of this Title and article 3 of the Cannabis Law and all policies and procedures in association with the administration of a registration for a registered organization;

(3) dedicate a minimum of 50% of shelf space available for adult-use product cultivated and processed by licensees that are not RODs until January 1, 2025, and 40% of shelf-space available for adult-use product cultivated and processed by licensees that are not ROD, thereafter, as measured by total units in inventory on a 30-day rolling average;

(4) co-locate its medical and adult-use dispensaries;

(5) if co-locating more than one (1) dispensing site, have at least one (1) co-located dispensing site outside of New York, Kings, Bronx, Queens, Richmond, Nassau, Suffolk, and Westchester counties;

(6) be subject to the same prohibitions set forth in subdivision (b) of section 123.16 of this Part;

(7) cultivate and process adult-use cannabis;

(8) maintain a medical patient prioritization plan which shall be made available to the Office upon request and include:

(i) all requirements set forth in paragraph (2) of subdivision (a) of section 123.16 of this Part; and

(ii) policies and procedures that clearly explain how the licensee shall maintain enough medical cannabis product at each co-located facility to support the greater of:

(a) the highest sales volume generated by that facility in the last 12 months; or

(b) a minimum threshold set annually by the Board, based on the anticipated medical demand for that year and the number of registered dispensing sites in operation;

(9) provide a separate medical consultation area within their dispensing sites;

(10) have separate lines and access areas for certified patients and their caregivers;

(11) establish priority service or express lanes inside their co-located dispensary locations for registered patients; and

(12) have pharmacists available pursuant to Part 113 of this Title; and

(13) comply with the Americans with Disabilities Act (ADA) standards.

(b) A licensed ROD shall not:

(1) have more than 100,000 square feet of canopy, unless otherwise authorized by the Board in writing;

(2) begin new construction or major renovations on any indoor cultivation area or facility unless authorized by the Board in writing;

(3) process more than 80,000 pounds of biomass, or the equivalent amount of cannabis extract or cannabis product, per year, if the ROD has purchased more than 25,000 pounds of cannabis or cannabis product at wholesale from another licensee in that calendar year;

(4) contract with a laboratory permitted pursuant to Part 130 of this Title for voluntary testing services, unless otherwise authorized by the Office;

(5) contract with another ROD or any of its true parties of interest for distribution of cannabis or cannabis products;

(6) substitute adult-use cannabis product, should the licensee experience an unexpected shortage of medical cannabis products;

(7) have more than three (3) co-located dispensaries;

(8) have more than one (1) co-located facility in the same county or borough as any of its other licensed or registered dispensing sites;

(9) locate any co-located adult-use dispensary premises in a location prohibited under the Cannabis Law or this Title;

(10) operate a consumption facility;

(11) be registered as a registered organization under article 3 of the Cannabis Law; and

(12) be granted authorization to open:

(i) the licensee's first co-located store before December 29, 2023; and

(ii) the licensee's second and third co-located stores before June 29, 2024.

(c) A registered organization shall hold a ROD or ROND license to sell adult-use cannabis or cannabis products.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 123.18

Adopted New York State Register September 27, 2023/Volume XLV, Issue 39, eff. 9/27/2023