N.Y. Comp. Codes R. & Regs. tit. 9 § 123.7

Current through Register Vol. 46, No. 45, November 2, 2024

Section 123.7 - Distributor Ownership, Interests, Business Authorizations and Prohibitions

(a) A distributor may acquire, possess, distribute, and sell cannabis products.

(b) A distributor may acquire cannabis products from any duly licensed processor or a microbusiness, cooperative or collective, ROD or ROND.

(c) A distributor may only sell cannabis products to another duly licensed adult-use retail dispensary, a ROD, or on-site consumption licensee.

(d) A distributor shall not be prohibited from transporting or warehousing cannabis products for another distributor or conducting activities related to any of the foregoing as determined by the Office.

(e) A distributor or its true party of interest may be a true party of interest in a cultivator, processor, distributor, cooperative or collective, ROD, or ROND license.

(f) A distributor, or its true party of interest, may have a goods and services agreement with an adult-use cultivator, processor, distributor, cooperative or collective, ROD or ROND license, subject to all restrictions governing such relationships, including, but not limited to, undue influence, control, and true party of interest requirements.

(g) No person shall be a true party of interest in an adult-use distributor license and a microbusiness license, provided, however, a true party of interest in an adult-use distributor license may simultaneously be a passive investor in any number of microbusiness licenses if such true party of interest complies with all restrictions governing such relationships, including, but not limited to, undue influence, control, and true party of interest requirements.

(h) In addition to any other restrictions or prohibitions in this Title, including, but not limited to, Part 124, no distributor or its true party of interest is permitted to have any direct or indirect interest, including by being a true party of interest, passive investor, or having a goods and services agreement with, or by any other means, in an adult-use retail dispensary, on-site consumption, delivery, registered organization registered under article 3 of the Cannabis Law, or cannabis laboratory licensee or permittee.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 123.7

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