New York CAURD Applicants: Guidance for Adult-Use Dispensaries
On Friday 10/28, the OCM quietly released its Guidance for Adult-Use Dispensaries (“Guidance”), which is a summary of the pending regulations for CAURD applicants and other adult use dispensary applicants in New York. It is important that all CAURD applicants familiarize themselves with the information provided in the Guidance. However, please note that is expressly states that “such future regulations are subject to change” so the OCM has the ability to revise the information provided.
The most significant development is that OCM appears to be changing its mandate that CAURD licenses operate in state-licensed locations. Specifically, Section 23 on page 17 of the Guidance states:
Certain retail dispensary licensees may be permitted to select the location of the licensed premises or relocate to the location of the licensed premises.
In relation to this shift the Guidance goes on to provide the following:
1. Proposed locations will be reviewed as part of the site plan submission and must meet all local zoning codes.
2. The location must be consistent with public convenience and advantage standards including: (a) other licensees in proximity to the location; (b) evidence that all necessary local licenses and permits have been obtained; (c) a demonstration of need; (d) effect on pedestrian or vehicular traffic and parking on the surrounding area; and (e) existing noise levels.
3. Prohibits being located on the same road and within 500 feet of a school or 200 feet of a building used for religious worship. For schools, this measurement will be taken in a straight line from the center of the nearest point of the school grounds to the center of the nearest entrance. For houses of worship, this measurement will be taken in a straight line from the center of the nearest entrance to entrance.
4. Only entrances that are regularly used to give ingress to patrons will be used to determine distance. Emergency or fire exists, maintenance access, or doors to non-public areas of the premises will not be considered in such measurement.
5. If the sensitive use is situated on a corner lot, it will be considered to be on both streets of the intersection, whether or not there is an entrance to the building on both streets.
There is currently no other information on the process for choosing your location, but there is a significant chance that applicants with a pre-approved location may be given priority in CAURD license award or, at the least, in opening their establishments. While not part of the original licensing package, Global Go is able to assist in vetting specific properties and putting together the information necessary to get such properties approved under the current hourly contract. Please contact Ryan Fingerhut ([email protected]) if you are interested in these services.
Some other key takeaways for CAURD applicants:
Recordkeeping
1. CAURD applicants may be required to submit records and plans described in the Guidance at the request of the OCM. This includes any follow-up questions on already submitted information as well as operational plans (e.g., Staffing Plan, Training Manual, Traceability Plan, etc.). Failure to submit may result in denial or non-selection.
2. CAURD licensees have an ongoing duty to maintain updated versions of all records and plans required by the application or the Guidance and must disclose material changes. Failure to submit may result in penalty, surrender, suspension, revocation, or nonrenewal.
Branding
1. Licensees may operate under a DBA.
2. Cannot misrepresent the business or give the impression of a medical cannabis dispensary. The following words are prohibited from being used: drug, drugstore, medicine, apothecary, doctor, pharmacy, pharma-, medi-, and any term that has the same meaning as the terms on the list.
3. Prohibited from using “organic” or “craft” labels until such definitions are authorized by the Office.
Staffing
1. Must designate an Employee In Charge who will be responsible for managing the core day to day functions. This person will be responsible for submitting required reports and notifications to the office and must be the onsite person available for all OCM inspections.
2. Must maintain a Staffing Plan and update such plan within five (5) business days of any change.
3. Only employees who are at least 21 years of age can have direct interactions with customers, transport cannabis goods in any way, or be involved in any delivery operations.
Training
1. Must maintain a Training Plan that outline the worker security & safety protocols for day to day operations (e.g., Daily Opening & Closing Checklist).
2. All staff must meet certain minimum requirements as established by the Cannabis Control Board.
3. Licensees may use third party trainers to conduct required trainings.
Hours of Operation
1. Licensees may operate only between 8 AM- 12 AM, unless given express written permission by the local municipality.
2. Municipalities cannot restrict operations to less than 70 hours per week. However, licensees can choose to operate for less than 70 hours per week if desired.
Supply Chain
1. Licensees can only purchase cannabis inventory from licensees authorized for distribution. Currently, only Adult Use Conditional Cultivators and Adult Use Conditional Processors are authorized for distribution. Further, Cultivators may only distribute cannabis flower products, such as whole flower, ground flower, and/or pre-rolls.
2. Distributors must sell cannabis products to any retailer willing to pay cash and OCM reserves the right to investigate any sources of payment made.
3. All agreements to purchase cannabis on credit must be reported to the Office with the terms of payment and credit. Licensees that purchase credit have 90 days to pay for that purchase and distributors are required to report any delinquent payments to the OCM.
4. OCM reserves the right to invalidate any distribution or supply chain agreements that it deems commercially unreasonable or where discriminatory pricing practices are suspected.
Inventory
1. Licensees may also sell cannabinoid hemp products (only if licensed to do so).
2. Can sell branded merchandise. But cannot sell apparel or merchandise that reference a specific cannabis product brand other than the licensees.
Pricing
1. Must maintain a menu that includes price and total cost (including tax)
2. Cannot advertise giveaways, discounts, price reductions, point-based rewards systems, or customer loyalty program. However, licensees can discount products within the facility.
3. Cannot give away, including donate, any cannabis products.
Customer Transactions
1. Only licensee employees can fulfill customer orders. Licensees cannot fill pre-orders that are placed on websites that are not registered to the licensee.
2. Must obtain customer consent to retain any personal information for marketing or advertising purposes.
3. Selling messages, mottos, and other brand markers (besides the brand name and logo) are not allowed on the exit package.
Drive Thru Window/ Pick Up Lane
1. May operate a drive thru window or pick up lane but must have written approval from OCM before commencing such operations.
2. OCM will provide form for completion and submission.
Deliveries
1. No more than 25 employees may provide delivery services for a licensee per week.
2. Delivery may occur via car, bike, or on foot.
3. Licensee must own any motorized or unmotorized vehicle used for transport.
Signage
1. Can only have 2 exterior signs maximum.
2. Signs cannot be neon or include the licensee’s logo, symbol, branded colors or any images.
Please let us know if you’d like to set a meeting to discuss these new regulations with one of our licensing analysts. We are happy to provide analysis on how these new requirements are likely to effect licensing, operations, or your business model.
by Simone Sandoval
Partner / Director of Licensing and Compliance
Simone focuses on cannabis licensing and compliance and has extensive experience in understanding and deciphering complex cannabis regulations. Prior to entering the cannabis industry, Simone worked in Washington, D.C. as an intern for Congressman Raul Ruiz, M.D. (CA-36). During her time on the Hill, she worked on legislation, and researched policy on renewable energy, healthcare, and tribal relations.
About Global Go
Global Go provides sophisticated consulting services to the global cannabis and hemp industry. In tandem with strategic allies around the world, Global Go serves clients throughout the world from offices in Austin, Bogota, Chicago, Cyprus, Denver, Johannesburg, London, Los Angeles, Mexico City, New York, Palm Springs, Phoenix, Quito, São Paulo, Silicon Valley, Toronto, and Zurich. Powered by a team of cannabis industry pioneers and world-class consultants, Global Go helps leading cannabis funds and companies assess and enter new markets; acquire assets; raise capital; launch new product lines; improve SOPs; comply with regulations; implement technology and security systems; find talent; diagnose and execute solutions to growth obstacles; and apply for cannabis licenses (with a 99% success rate on over 175 cannabis license applications across the United States).
