N.Y. Comp. Codes R. & Regs. tit. 9 § 124.3

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

Section 124.3 - Goods and Services Agreements

(a) Exempt Agreements. The following agreements shall not be presumed to create a controlling interest or undue influence in a licensee; apparent or actual conflicts of interest; or an availing interest in the license by a non-licensee or person who is not a true party of interest in such license. A person may provide goods and services across licenses.

(1) General providers of goods and services. Exemp t goods and services agreements, may include, but are not limited to, accounting, license application preparation, record-keeping, cleaning and janitorial, leasing equipment, architect services, security, legal services, government relations (registered lobbyist), construction, heating, ventilating, air conditioning, refrigeration, plumbing, lighting, office supplies, and provision of non-cannabis goods from unlicensed persons.

(2) Landlords. A person may be a landlord to licensees across multiple licenses. If the landlord becomes a true party of interest in a license, they are subject to the requirements of the true parties of interest for that license type.

(3) Financiers and financial institutions. A person may be a financier or financial institution across multiple licenses. If the financier or financial institution becomes a true party of interest in a license, they are subject to the prohibitions of true parties of interest for that license type. Principal repayment shall be excluded from any calculation of fees paid to a financier or financial institution in a calendar year.

(b) Non-exempt agreements.

(1) Non-exempt agreements, include, but are not limited to, agreements for the provision of consulting, advisory, or strategic services related to the licensee's cultivation, processing, distributing, or selling of cannabis or cannabis products.

(2) Any person providing non-exempt goods and services pursuant to a non-exempt agreement that is not based on a flat fee, including, but not limited to, agreements based on business performance, revenues, royalties, or profits, shall be prohibited from having any goods and services agreement with a licensee in a separate licensing tier.

(c) Stacking Agreements. Where a person has multiple goods and services agreements, whether exempt or non-exempt, with a licensee, the value of the payments made under such agreements shall be combined for purposes of determining whether a person has a financial or controlling interest, and the combined agreements shall be held to the strictest prohibitions of each of those individual agreements.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 124.3

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