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 124 - General Business Requirements and Prohibitions
Section 124.5 - Contracting Requirements
Current through Register Vol. 46, No. 39, September 25, 2024
(a) Adult-use licensees are prohibited from contracting out or subcontracting with a person or entity performing any function or activity directly involving the licensed activities authorized for that license type, including, but not limited to, cultivating, processing, distributing, or selling cannabis or cannabis products; provided however, licensees may contract out executive management services so long as all non-management activities arising from, or related to, such contract or subcontract are carried out by employees of the licensee.
(b) Adult-use licensees may contract with a person or entity performing a function or activity ancillary to the licensee's licensed activities, including, but not limited to, accounting, record-keeping, architectural services, construction, heating, ventilating, air conditioning, refrigeration, plumbing, cleaning and janitorial, lighting, security, software, and legal services, and other exempt goods and services.
(c) Adult-use licensees shall retain the right to audit, or use a third-party to audit, goods and services agreements with third parties.
