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 123.3 - Cultivator Ownership, Interests, Business Authorizations and Prohibitions

Universal Citation: 9 NY Comp Codes Rules and Regs § 123.3

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

(a) A cultivator may engage in the following licensed activities:

(1) acquire, possess, cultivate, trim, harvest, dry, and cure cannabis at its licensed premises;

(2) sell cannabis only to licensees authorized to process cannabis, which includes a duly licensed processor, microbusiness, cooperative or collective, ROD, ROND, or a cannabis research licensee;

(3) transfer cannabis to a processor for processing without relinquishing ownership of that cannabis; and

(4) if such cultivator also holds a processor license, purchase cannabis from another cultivator for processing; and

(5) purchase clones, seedlings, cloned propagation material, tissue culture, cannabis seeds, and other immature cannabis plants, including mother plants, from a nursery.

(b) A cultivator that has a processor license may apply for and obtain one (1) distributor license.

(c) A cultivator or its true party of interest may be a true party of interest in a nursery, research, processor, or distributor license.

(d) No person shall be a true party of interest in more than one (1) adult-use cultivator license, or in an adult-use cultivator license and a cooperative or collective, microbusiness, ROD, or ROND license, provided, however, a true party of interest in an adult-use cultivator license may simultaneously be a passive investor in any number of adult-use cultivators, cooperatives or collectives, microbusinesses, RODs, or ROND, 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 cultivator, or its true party of interest, may have a goods and services agreement with an adult-use nursery, cultivator, processor, distributor, 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 cultivator 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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