N.Y. Comp. Codes R. & Regs. tit. 9 § 124.5

Current through Register Vol. 46, No. 51, December 18, 2024

Section 124.5 - Contracting Requirements

(a) Adult-use licensees are prohibited from contracting out or subcontracting with a person or entity performing any function or activity directly involving the licensed activities authorized for that license type, including, but not limited to, cultivating, processing, distributing, or selling cannabis or cannabis products; provided however, licensees may contract out executive management services so long as all non-management activities arising from, or related to, such contract or subcontract are carried out by employees of the licensee.

(b) Adult-use licensees may contract with a person or entity performing a function or activity ancillary to the licensee's licensed activities, including, but not limited to, accounting, record-keeping, architectural services, construction, heating, ventilating, air conditioning, refrigeration, plumbing, cleaning and janitorial, lighting, security, software, and legal services, and other exempt goods and services.

(c) Adult-use licensees shall retain the right to audit, or use a third-party to audit, goods and services agreements with third parties.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 124.5

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