Starting A New York Dispensary — Part 2

Dispensary licensing

The Office of Cannabis Management determines the estimated costs and fees associated with applying to open a dispensary in New York. As a reference point, the earlier medical program detailed a $10,000 non-refundable application fee and a $200,000 registration fee (refunded to applicants not issued a registration). Overall, a typical budget expectation is between $400,000 and $1,000,000 to open a dispensary in New York, depending on location, facility size, and the type of operation.

There are many license types available in New York, each with different documentation and requirements:

• Adult-Use Retail Dispensary License — authorizes the acquisition, possession, sale, and delivery of cannabis to consumers. New applicants can apply for up to three licenses.
• Adult-Use Delivery License — authorizes delivery of cannabis products; capped at 25 full-time paid delivery employees per week per license.
• Adult-Use Cultivator License — authorizes growing, cloning, harvesting, drying, curing, grading, and trimming, plus sale to a licensed processor.
• Adult-Use Nursery License — produces clones, immature plants, seeds, and agricultural products for cultivation.
• Adult-Use Distributor License — authorizes acquisition, possession, distribution, and sale from licensed processors/cooperatives/micro-businesses to retailers and on-site consumption locations.
• Adult-Use Micro-Business License — limited-scale cultivation, processing, distribution, delivery, and dispensing.
• Adult-Use Processing License — extraction, blending, infusing, or manufacturing of concentrated cannabis products.
• Adult-Use Laboratory License — testing; may not hold a license in any other category.
• Adult-Use On-Site Consumption License — sale of cannabis for use at the on-site consumption location.
• Adult-Use Cooperative License — cultivation, processing, and sale by a democratically controlled, New York-resident cooperative.

Security

New York mandates a commercial-grade security system to prevent and detect diversion, theft, or loss. At a minimum, facilities must include: a perimeter alarm and motion detectors; video cameras covering all areas containing cannabis and all entry/exit points; 24-hour recordings retained at least 90 days; duress, panic, and holdup alarms; an automatic dialer to emergency services; a failure-notification system; the ability to produce a clear still image from any camera; date/time stamps on recordings; and the ability to remain operational during a power outage. Surveillance areas must be access-restricted, exterior perimeters illuminated, all cannabis stored in secured/locked areas, and security equipment tested at least semi-annually with records kept for five years. Transport requires a shipping manifest, locked storage compartments, randomized delivery times, and a minimum two-employee transport team.

This is a high-level summary — confirm current requirements with the Office of Cannabis Management before acting.