New York Codes, Rules and Regulations
Title 9 - EXECUTIVE DEPARTMENT
Subtitle B - Division of Alcoholic Beverage Control
Chapter II - Rules of the Office of Cannabis Management
Part 123 - License Specific Authorizations, Requirements and Prohibitions
Section 123.11 - Microbusiness Ownership, Interests, Business Authorizations and Prohibitions

Universal Citation: 9 NY Comp Codes Rules and Regs § 123.11

Current through Register Vol. 46, No. 52, December 24, 2024

(a) A microbusiness shall engage in cultivation and at least one (1) of the following additional activities authorized by the Cannabis Law for a microbusiness:

(1) processing;

(2) distribution; or

(3) retail sale.

(b) If authorized through the application process, whether on an initial or an amended application, a microbusiness may:

(1) sell its own cannabis to a processor;

(2) sell its own cannabis products to a distributor;

(3) sell cannabis products it has cultivated or processed to consumers;

(4) sell its own cannabis products via delivery to consumers;

(5) purchase cannabis flower;

(6) send its own cannabis or cannabis products to a processor for processing without relinquishing ownership of that cannabis or cannabis product; and

(7) operate a consumption facility.

(c) A microbusiness shall not be a true party of interest in a cultivator, processor, cooperative or collective, ROD, or ROND license, provided however a true party of interest in a microbusiness may by a true party of interest in a cultivator, processor, cooperative or collective, ROD, or ROND license.

(d) No person shall be a true party of interest in more than one (1) microbusiness license, or in a microbusiness license and an adult-use cultivator, cooperative or collective, distributor, ROD, or ROND license provided, however, a true party of interest in a microbusiness may simultaneously be a passive investor in any number of microbusiness, cultivator, cooperative or collective, distributor, ROD, or ROND licenses, if such true party of interest complies with all restrictions governing such relationships, including, but not limited to, undue influence, control, and true party of interest requirements.

(e) A microbusiness or its true party of interest may have a goods and services agreement with an adult-use cultivator, processor, cooperative or collective, microbusiness, ROD, or ROND license, subject to all restrictions governing such relationships, including, but not limited to, undue influence, control, and true party of interest requirements.

(f) In addition to any other restrictions or prohibitions in this Title, including, but not limited to, Part 124, no microbusiness or its true party of interest is permitted to have any direct or indirect interest, including by being a true party of interest, passive investor, or having a goods and services agreement with, or by any other means, in an adult-use retail dispensary, on-site consumption, delivery, registered organization registered under article 3 of the Cannabis Law, or cannabis laboratory licensee or permittee.

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