HomeHealthMedicineNY medical marijuana firms to wait three years for recreational shops

NY medical marijuana firms to wait three years for recreational shops

ALBANY — Under draft rules for the marijuana industry released Sunday by New York regulators, the state’s ten existing medical marijuana companies will likely spend more than $5 million dollars to sell to the recreational market, waiting at least three years before they do any shopping.

The full regulationsspanning 282 pages also includes descriptions of several new license categories, as well as details of how the conditional licensees ready to grow, method and sell the state’s first legal recreational weed will be able to apply for a permanent stake in the industry.

The Cannabis Control Board will review the draft rules on Monday. If adopted, the rules will be open to public comment for 60 days.

Interest in the rules has been swirling for more than a year, and the state’s atypical regulatory structure that will separate most growers and processors from retailers comes from the 2021 law that created a framework for the industry. But spokespersons and lobbyists for the 10 multi-state operators serving the state’s medical cannabis patients have been in constant talks with regulators, who are trying to prevent those big seed-to-sale companies from taking over New York’s recreational industry. would bring as they do in many other states.

In addition to requiring the medical companies to pay a one-time fee of $5 million to sell to the recreational industry, the draft rules would also require them to pay additional licensing fees and a percentage of revenue over five years that could be as much as $1 million per year. . In addition, they will have to wait three years before they can open their own recreational stores, and each store co-located with a medical vendor will cost them another $3 million.

Must Read
Obituary: John Stewart Dyhrberg M.D.

The state has nearly 124,000 medical cannabis patients who may be certified for each condition and have nearly 40 locations across the state where they can purchase cannabis, including several shops in the Capital Region. Prescription holders are now also allowed to do this by the state grow their own plants at home, while recreational users are still not allowed to do so.

But the number of patients is expected to be dwarfed by the number of recreational users purchasing recreational marijuana, who may soon be purchasing from licensed vendors once operational. The draft industry rules require medical marijuana companies interested in selling recreational marijuana to develop a “medical patient prioritization plan” that includes “sufficient medical cannabis products at each co-located retail dispensary.”

Despite the restrictions, which will likely cost New York’s 10 licensed medical companies significantly more than fees charged to newcomers to the industry, the early-stage companies may still be well positioned to sell cannabis to third-party outlets. They have had the opportunity to do so develop their facilities in anticipation of the growing market, while many investors waited in the wings due to licensing uncertainty. And while many of the conditional growers have a license chose outdoor crops in the summermedical companies have indoor growing facilities, which provide a more controlled environment.



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments