Which Cannabis License is Right for You? A Guide to Entering the Industry in New York and Massachusetts

Navigating the Complex Cannabis Licensing Process in New York and Massachusetts

Starting a cannabis business can be a daunting task, especially when it comes to navigating the complex licensing process in New York and Massachusetts. With multiple licenses to choose from, it's easy to get overwhelmed. That's why it's crucial to have a clear understanding of the different types of licenses and their requirements.

Why a Cannabis License is Crucial for Success in New York and Massachusetts

A cannabis license is not just a necessary step in starting a business; it's a crucial component of success in New York and Massachusetts. Without a license, you're not legally allowed to operate a cannabis business, which means you'll miss out on valuable revenue streams and opportunities. A license also demonstrates to customers, investors, and partners that your business is legitimate and compliant with regulations.

A Comprehensive Guide to Cannabis Licenses in New York and Massachusetts

In this guide, we'll cover the following topics:

The different types of cannabis licenses in New York and Massachusetts The requirements for each license The benefits of working with a cannabis consulting firm Tips for navigating the licensing process Understanding the Different Types of Cannabis Licenses in New York and Massachusetts

The New York State Office Of Cannabis Management (OCM) and the Massachusetts Cannabis Control Commission (CCC) issue several types of licenses, each with its own set of requirements and benefits. Here are the most common types of licenses:

New York:

Adult-Use Cultivator

A cultivator is defined as an individual who cultivates cannabis plants by growing, cloning, harvesting, drying, curing, grading, and trimming them for the purpose of resale. A cultivator's license permits the acquisition, possession, distribution, and sale of cannabis from the licensed premises of the adult-use cultivator to a licensed processor, allowing for the transfer of cannabis products from cultivation to processing.

Adult-Use Processor

A processor is defined as an individual or entity authorized to transform cannabis into various forms, including extracting concentrated cannabis and/or compounds, infusing, extracting, or manufacturing cannabis products for the purpose of resale. A processor's license enables the acquisition, possession, processing, and sale of cannabis from licensed adult-use cultivators to licensed distributors, facilitating the movement of cannabis products from cultivation to distribution.

Adult-Use Distributor

A distributor is defined as an individual or entity that sells cannabis and cannabis products at wholesale prices for the purpose of resale. A distributor's license permits the acquisition, possession, distribution, and sale of cannabis products from licensed premises of adult-use cultivators, processors, cooperatives, microbusinesses, or registered organizations, allowing them to supply licensed retail dispensaries and on-site consumption sites with adult-use cannabis products.

Adult-Use Mirobusiness

A microbusiness operator is an individual or entity that can engage in multiple aspects of the cannabis industry, including cultivating cannabis, processing adult-use cannabis products, distributing and retailing cannabis products, and delivering cannabis products to customers. A microbusiness license permits the limited cultivation, processing, distribution, delivery, and sale of their own adult-use cannabis products, as well as the ability to host cannabis events. This license allows microbusinesses to operate as a one-stop-shop, handling various aspects of the cannabis business under a single license.

Adult-Use Retail Dispensary Retailer

A retail dispensary operator is an individual or entity authorized to acquire, possess, sell, and deliver cannabis products from their licensed retail dispensary premises to cannabis consumers. In addition, retail dispensary operators may also have the ability to host cannabis events, allowing them to expand their offerings and engage with customers in new ways.

Source: https://cannabis.ny.gov/licensing

Massachusetts:

Craft Marijuana Cooperative

A Craft Marijuana Cooperative is a type of cannabis cultivator that enables multiple growers to collaborate and cultivate up to 100,000 square feet of cannabis plants collectively.

To qualify as a Craft Marijuana Cooperative, the following conditions must be met:

1. All members must have resided in Massachusetts for at least one year prior to submitting an application.

2. The cooperative must consist of Massachusetts residents who have formed a limited liability company, limited liability partnership, or cooperative corporation.

3. No member of the cooperative can have a controlling interest in any other marijuana establishment.

4. The cooperative is not limited to a specific number of cultivation locations, but is restricted to three locations for activities authorized for marijuana product manufacturers, with a total canopy of 100,000 square feet.

5. At least one member of the cooperative must have filed a Schedule F tax form within the past five years.

6. The cooperative must operate in accordance with the seven cooperative principles published by the International Cooperative Alliance in 1995.

Cultivator

A Cultivator is a licensed business that is authorized to cultivate, process, and package cannabis, as well as transfer marijuana to other licensed entities, but not to consumers.

There is a maximum total canopy size of 100,000 square feet for a Cultivator's operation. The canopy measurement includes the boundary that contains mature plants at any point in time, and may include various structures such as interior walls, shelves, greenhouses, and garden beds.

Cultivators can choose from 11 tiered operating space options, which affect application and licensing fees. The tiered system is based on the total square footage of the operation, with each tier representing a specific range of square footage. The tiers are as follows:

• Tier 1: Up to 5,000 square feet

• Tier 2: 5,001 to 10,000 square feet

• Tier 3: 10,001 to 20,000 square feet

• Tier 4: 20,001 to 30,000 square feet

• Tier 5: 30,001 to 40,000 square feet

• Tier 6: 40,001 to 50,000 square feet

• Tier 7: 50,001 to 60,000 square feet

• Tier 8: 60,001 to 70,000 square feet

• Tier 9: 70,001 to 80,000 square feet

• Tier 10: 80,001 to 90,000 square feet

• Tier 11: 90,001 to 100,000 square feet

Independent Testing Laboratory

An Independent Testing Laboratory is an entity that is properly accredited to perform tests in compliance with the requirements of the Massachusetts Department of Public Health protocols for testing cannabis and cannabis products.

Marijuana Courier

A Marijuana Courier license permits the delivery of marijuana or marijuana products directly to consumers and patients at their residential addresses from a licensed Marijuana Establishment (ME) or Medical Marijuana Treatment Center (MTC) with which the Courier has a delivery agreement. The agreement outlines the business terms and procedures for verifying consumers before delivery. A Marijuana Courier is not allowed to have a retail location accessible to the public.

Residential deliveries are limited to municipalities that are listed on the Commission's license, allow for the operation of Marijuana Retailers, and have opted-in to residential delivery. The Commission maintains a database of municipalities that have opted-in. Deliveries can only take place between 8:00 a.m. and 9:00 p.m., unless otherwise allowed or limited by municipal by-law or ordinance. It is the responsibility of the licensee to know the rules of the municipality where they deliver.

For a period of 36 months from the date the first Marijuana Delivery Operator receives a notice to commence operations, Marijuana Couriers will be limited to businesses controlled by and with majority ownership comprised of Certified Economic Empowerment Priority Applicants or Social Equity Program Participants.

Marijuana Delivery Operators

Marijuana Delivery Operators are authorized to purchase marijuana and marijuana products from licensed Marijuana Cultivators and Marijuana Product Manufacturers, and then sell and deliver them to consumers. They may also store the products securely on their premises for eventual resale to consumers.

Residential deliveries of marijuana or marijuana products are restricted to municipalities that meet the following criteria:

1. Are listed on the Commission's license as the licensee's place of business

2. Allow for the operation of Marijuana Retailers, regardless of whether one or more establishments are operational

3. Have opted-in to residential delivery

The Commission maintains a database of municipalities that have opted-in to residential delivery. Deliveries can only take place between 8:00 a.m. and 9:00 p.m., unless otherwise allowed or limited by municipal by-law or ordinance. Municipalities may choose to broaden or narrow the delivery hours. It is the responsibility of the licensee to know the rules of the municipality where they deliver.

For a period of 36 months from the date the first Marijuana Delivery Operator receives a notice to commence operations, licenses will be limited to businesses controlled by and with majority ownership comprised of Certified Economic Empowerment Priority Applicants or Social Equity Program Participants.

Marijuana Research Facility

A Marijuana Research Facility is a designated entity, such as an academic institution, non-profit corporation, domestic corporation, or other authorized organization, that is permitted to cultivate, purchase, or acquire cannabis for the purpose of conducting scientific research on cannabis and its products.

Microbusiness

A Microbusiness is a type of Marijuana Establishment that can operate as both a cultivator and a product manufacturer, or as one or the other. If a Microbusiness is a product manufacturer, it is limited to purchasing no more than 2,000 pounds of marijuana per year from other licensed Marijuana Establishments. To be eligible for a Microbusiness license, the majority of executives or members must have been residents of Massachusetts for at least 12 months prior to applying.

The application and license fees for Microbusinesses are 50% of the combined fees for cultivation and/or manufacturing licenses. Additionally, Microbusinesses may also offer delivery services after receiving a Delivery Endorsement from the Commission. More information about Delivery Endorsements can be found in the Commission's Delivery FAQ. Currently, Delivery Endorsements are only available to Microbusinesses with majority ownership comprised of Certified Economic Empowerment Priority Applicants and/or Social Equity Program Participants for a period of at least 36 months from the date the first Delivery Operator licensee receives a notice to commence operations.

Product Manufacturer

A Product Manufacturer is a licensed entity authorized by the Cannabis Control Commission to acquire, manufacture, process, and package cannabis and marijuana products, and to transfer these products to other licensed Marijuana Establishments (MEs), but not to consumers.

Retailer

A Marijuana Retailer is a licensed entity that is permitted to purchase and transport marijuana and marijuana products from other licensed Marijuana Establishments (MEs), and to sell or transfer these products to other MEs and to consumers.

A Marijuana Retailer operates a retail location that is accessible to consumers aged 21 or older, or, if the retailer is co-located with a Medical Marijuana Treatment Center (MTC), to registered qualifying patients and their personal caregivers.

Standards Laboratory

A Standards Laboratory conducts blind testing to validate the findings of Independent Testing Laboratories, ensuring the accuracy and reliability of cannabis product testing results.

Transporter

A transporter is a business that specializes in transporting cannabis or cannabis products. There are two types of transporters:

1. 1. Third-party Transporter: A Massachusetts-registered entity that does not hold a license for another type of Marijuana Establishment (ME) and is not registered as a Medical Marijuana Treatment Center (MTC).

2. 2. Existing Licensee Transporter: A licensed Marijuana Establishment (ME) that contracts with other MEs to transport their marijuana and marijuana products to other MEs.

Source: https://masscannabiscontrol.com/license-types

Tips for Navigating the Licensing Process:

Start early! Don't wait until the last minute to apply for a license. Give yourself plenty of time to gather required documents and prepare for inspections. Be thorough: Make sure you have all the required documents and information before submitting your application. Stay organized: Keep track of your application and all supporting documents in a centralized location. Be prepared for inspections: Make sure your facility is clean, secure, and compliant with regulations.

Conclusion

Starting a cannabis business in New York or Massachusetts requires a deep understanding of the different types of licenses and their requirements. By working with a cannabis consulting firm like Blue Skies Cannabis Consulting, you can ensure compliance with regulations and optimize your operations for maximum efficiency. And, as a bonus, you'll gain access to exclusive offers from our partners, including Buzz Krew who specializes in helping cannabis businesses like yours build a strong online presence. Remember to start early, be thorough, and stay organized to navigate the licensing process successfully.

At Blue Skies Cannabis Consulting, we're dedicated to helping entrepreneurs and business owners navigate the complex cannabis industry in New York and Massachusetts. Our team of experts has years of experience in the industry and can help you develop a comprehensive business plan, prepare for inspections and audits, and ensure compliance with regulations. Book a free consultation today to learn more about our cannabis consulting services and take advantage of our exclusive offers.