In a move aimed at supporting the burgeoning cannabis industry in New York, the state’s Cannabis Control Board has announced a series of measures, including an extension of deadlines for social equity retailers, as well as the approval of an array of new business licenses. As reported by
Crain’s New York
, these updates include the approval of 42 retail dispensaries, 30 microbusinesses, 6 cultivators, 11 distributors, and 36 processors, with the number of operational dispensaries now totaling 230 across New York.
The Cannabis Control Board has addressed the need for flexibility among its licensees, and as a result, provisional licenses for conditional adult-use retail dispensary (CAURD) operators have been given a six-month extension, a measure taken in light of the challenges many were facing in getting their stores up and running, especially those encountering municipal roadblocks or engaged in building out locations, with Chief Licensing Officer Patrick McKeage stating, “This does not necessarily mean that a CAURD (licensee) needs to have its doors open within six months, but they do need to have their final license issued in order for the provisional license not to expire,” in information obtained by
Crain’s New York
.
Aiding medical cannabis operators, who are identified as Registered Organizations (ROs) in New York, the Control Board has enabled a new payment plan for those looking to branch into adult-use sales. These operators now have the option to split an initial $5 million fee into three payments spread over an 18-month period, conditional on proving financial need and maintaining their medical operations, with Tabatha Robinson, the acting chief equity officer, detailing to
Green Market Report
that if there’s “a major reorganization or an acquisition or gets a large injection of cash, then that would trigger another analysis and they would potentially lose that deferral.”
Additionally, the board has sought to enhance the market’s efficiency by unveiling plans to introduce a seed-to-sale tracking system, which is expected to ease the administrative load of manual reporting for licensees and is set to be further detailed to stakeholders starting Nov. 18, with the current progress including application processing up to queue number 1,619 for November submissions, as John Kagia, director of policy for the New York Office of Cannabis Management, told the board “We’re quite keen to gain some of the efficiencies that deploying the seed-to-sale system will afford our licensees” highlighting that robust sales nearing $800 million since launch are reflecting a strong market growth, as reported by
Green Market Report
.
Further elaborating on the social equity aspect of the industry, it was noted that more than half of all adult-use licenses issued are held by social equity owners, with women and minority-owned businesses holding 44% and 38% of licenses, respectively. The Board is deferring decisions on dispensary locations and application processing guidance to its December meeting. Meanwhile, the entry of processor type 3 licenses allows for cannabis brands to participate in the marketplace without direct plant contact, with the Office of Cannabis Management expecting this move to draw down some of the excess capacity currently present in the industry.
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