N.Y. Comp. Codes R. & Regs. tit. 9 § 123.8

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

Section 123.8 - Distributor Operations

(a) A distributor shall:

(1) comply with article 20-C of the Tax Law, as well as other applicable provisions of law.

(2) transport only cannabis products between adult-use cannabis licensees; and between the licensed premises of an adult-use cannabis facility for purposes of distributing the cannabis products;

(3) including its employees, who possess or transport cannabis products upon the public highways, roads or streets of the state, shall have in their possession invoices or manifests for such cannabis products. Such invoices or manifests shall show the name and address of the seller, the name and address of the purchaser, the quantity, product type and brands of the cannabis products being distributed, and the name and address of the person who has or shall assume the payment of the tax or the tax paid or payable. The absence of such invoices or manifests shall be presumptive evidence that the tax imposed by article 20-C of the Tax Law on cannabis products has not been paid and is due and owing.

(4) maintain transaction records of all cannabis product purchased and distributed to distributors, retail dispensaries, or on-site consumption premises and send such records to the Office's inventory tracking system, real-time, in a manner determined by the Office. Such records shall provide enough detail to independently determine the taxability of each sale, the tax liability for each cannabis product sold and the amount of tax payable by the distributor.

(i) detailed information required for each sales transaction, including, but not limited to:

(a) individual cannabis product item(s) sold;

(b) selling price;

(c) tax due;

(d) method of payment;

(e) employee completing the sales transaction:

(f) a device used to complete a sales transaction that may be a combination of software and hardware;

(g) sales transaction number;

(h) date and time of the sale; and

(i) the name, address and license number of the retail dispensary or on-site consumption premises.

(ii) a distributor, retail dispensary and on-site consumption premises shall be offered a receipt of their purchase which shall include, but not be limited to:

(a) the name, address, and license number of the distributor;

(b) the date and time of sale;

(c) the form and the quantity of cannabis products and any other items sold; and

(d) the first name and the first letter of the last name of the employee completing the sale.

(5) keep and maintain upon the licensed premises adequate books and records to demonstrate the distributor's actual cost of doing business, using accounting standards and methods regularly employed in the determination of costs for the purpose of federal income tax reporting, for the total operation of the distributor. Such books, records, and invoices shall be kept for a period of five (5) years and shall be available for inspection by the Office.

(6) a distributor shall comply with any fees, maximum margins, price posting requirements, and any policies related to market competition and license availability restrictions determined by the Office.

(b) In addition to the requirements set forth in subdivision (a) of this section, a distributor shall not:

(1) transport cannabis products to an adult-use cannabis retail dispensary or on-site consumption premises for purposes of retail sale unless it is licensed as a distributor pursuant to the Cannabis Law and this Title;

(2) transport cannabis products to a retail dispensary or on-site consumption premises unless the retail dispensary or on-site consumption premises holds a valid and current license as a retail dispensary or on-site consumption premises respectively;

(3) accept, sell, transfer, distribute, or agree to sell, transfer or distribute, any cannabis product unless it is in a retail package and labeled pursuant to Part 128 of this Title, provided any unlabeled cannabis product in the possession of a distributor shall be deemed illicit cannabis as defined in section 136 of the Cannabis Law and may be subject to the penalties described in the Cannabis Law, Part 133 of this Title, and any other penalties or sanctions as determined by the Board, including, but not limited to, cancellation, suspension, or revocation of a license and imposition of fees, civil penalties and any other penalty;

(4) accept, sell, transfer, distribute, or agree to sell, transfer or distribute, any cannabis product that has not been tested pursuant to Part 130 of this Title as indicated by a certificate of analysis;

(5) furnish or cause to be furnished to any licensee, any exterior or interior sign, printed, painted, digital or otherwise, unless authorized by the Office.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 123.8

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