Navigating NY Cannabis Regulations

NY Office of Cannabis Management issues the first 15 cannabis processing licenses.

One of the fastest growing industries in the United States today is the cannabis market with global growth trends predicted to hit 25% over the next 8 years. Supporting this growth trend are legalization movements across various states, bringing new products and services to the market.

New York is no exception to the growing number of states passing cannabis legislation. It’s no secret that cannabis is an emerging market full of new potential; however, it can be a daunting task to fully understand the regulations. Whether you are an existing business looking to expand into the cannabis industry or a startup trying to gain market share, you must have a baseline knowledge of what you can and cannot do and how to navigate the regulations. 

What are the New Regulations?

The New York Office of Cannabis Management approved its first 15 adult-use conditional processor licenses on August 15, 2022. Cannabis cultivators (growers) can now turn cannabis plants into a variety of different products, including vape cartridges, oils, and edibles. Businesses can obtain licensure as a conditional cultivator, conditional processor, or conditional retail dispensary of cannabis in the state of New York. 19 businesses and 242 farms have been granted authority to grow adult-use cannabis in the state.

According to the New York City Health website, it is legal for citizens 21 or older to purchase and possess up to three (3) ounces of cannabis and up to 24 grams of concentrated cannabis for personal use. New York has continued to revise its cannabis regulations as well as the precautions taken before sales to the public. 

In addition to approving conditional processor licenses, medical cannabis testing facilities will also begin analyzing marijuana for adult-use sales. To further the safety of adult use of cannabis, the regulations in New York also call for the establishment of a reference laboratory to assist in developing and implementing universal safety and regulatory practices.

What Does This Mean for the NY Cannabis Market?

In the upcoming years, the cannabis market in New York will see dramatic shifts as legalization becomes more widespread and operators receive licenses. The New York Office of Cannabis Management is issuing licenses according to jurisdiction and population, meaning it will be difficult to receive a license if your jurisdiction is at the max. 

If you are planning on opening up a new business or expanding operations in your current one to include cannabis, it will be imperative that you plan ahead for the different regulations you will need to abide by. Also, as more licenses are granted, maintaining product differentiation will be key to growing a successful business.

What Accountants Do for Cannabis Businesses

With any small or emerging business, it is crucial to have the right people and resources to ensure the business is prepared for any hurdle it may face or opportunity it has. The cannabis industry laws and regulations are constantly changing. As a business owner, it may be difficult for you to have a hand in both your day-to-day operations and staying up-to-date on compliance matters concerning your cannabis business such as regulatory, tax and accounting matters.

Without the right knowledge to back your decisions, your cannabis business could be subject to government fines, loss of license, or overall poor operational and financial performance. Finding the right advisors including those who provide accounting, tax and CPA services can ensure your business’ finances are being properly managed. From preparing taxes with a strong understanding of 280E implications to finding the right accounting tips and trends to support your business, working with an accounting services specialist or firm isn’t something your business can forego.

Resources for Your Cannabis Business

Whether looking to enter the New York market and apply for a license, or navigating compliance with the new cannabis licenses New York is issuing, working with an advisor might be just what your business needs. The team at Adeptus believes that the cannabis industry is amongst the most intriguing and fastest growing industries in the world. We will work with you to uncover the risks and unlock the opportunities specific to your business, allowing you to achieve your operational and financial goals. Reach out today to set up a consultation with a team member.