N.Y. Comp. Codes R. & Regs. tit. 9 § 123.9

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

Section 123.9 - Retail Dispensary Ownership, Interests, Business Authorizations and Prohibitions

(a) A retail dispensary may acquire cannabis products from any licensee authorized for distribution of such products.

(b) A retail dispensary may acquire seedlings and immature plants from any licensee authorized as a nursery once adult-use home cultivation is authorized by the Board.

(c) A retail dispensary may possess, sell and deliver cannabis products and cannabis paraphernalia.

(d) A retail dispensary may sell cannabis products and cannabis paraphernalia to cannabis consumers.

(e) A retail dispensary may operate a limited retail consumption facility pursuant to the operating requirements in this Title.

(1) Prior to operating a limited retail consumption facility:

(i) an applicant or licensee shall request approval in a form and manner determined by the Board that may include, but not be limited to, information in sections 125.1 and 125.2 of this Title related to the consumption facility; and

(ii) the Board may require an applicant or licensee update, alter, or amend their submission prior to approving a licensee's request to operate a limited retail consumption facility;

(2) A retail dispensary's licensed premises shall not contain a consumption facility that is not a limited retail consumption facility, except where a retail dispensary may temporarily add a consumption facility to its premises pursuant to section 120.19 of this Title.

(3) A licensee approved to operate a limited retail consumption facility shall pay a fee of $3,000, in addition to the fee for their adult-use retail dispensary upon approval, and shall pay an equal fee upon application for license renewal, unless the licensee's limited retail consumption facility is on the same road and within 200 feet of the center of the nearest public housing facility entrance, in which case the $3,000 fee described in this subdivision shall not apply; and

(4) A limited retail consumption facility shall be deemed a type of adult-use on-site consumption premises for purposes of determining compliance with article 13-E of the Public Health Law.

(f) Sales of cannabis products shall only be executed by licensees authorized to conduct sales of cannabis to consumers. Any person found to be selling cannabis unlawfully may be subject to penalties and fines pursuant to the Cannabis Law and Part 133 of this Title.

(g) A retail dispensary or its true party of interest may also be true parties of interest in a delivery license.

(h) No person shall be a true party of interest in more than three (3) adult-use retail dispensary licenses, or in an adult-use retail dispensary and delivery or on-site consumption license, provided, however, a true party of interest in a retail dispensary may simultaneously be a passive investor in any number of retail dispensary, delivery, and on-site consumption 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.

(i) A retail dispensary or its true party of interest may have a goods and services agreement with an on-site consumption or delivery license, subject to all restrictions governing such relationships, including, but not limited to, undue influence, control, and true party of interest requirements.

(j) In addition to any other restrictions or prohibitions in this Part, no adult-use retail dispensary or its true party of interest is permitted to hold a 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 cultivator, processor, distributor, cooperative or collective, microbusiness, ROD, ROND, registered organization registered under article 3 of the Cannabis Law, or cannabis laboratory licensee or permittee, or any person outside of New York State, otherwise licensed to conduct the activities authorized under such licenses, registrations, and permits.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 123.9

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