NY medical marijuana firms to wait three years for recreational shops

ALBANY – According to draft marijuana industry rules released by New York regulators on Sunday, the state’s ten existing medical marijuana companies can spend more than $5 million to sell into the recreational market and wait at least three years before they can open one. Retail stores.

The full regulation, which spans 282 pages, details several new licensing categories, as well as details how conditional licensees are set to grow, process and sell the state’s first legal recreational weed. For a permanent partnership in the industry.

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

Interest around the rule has been swirling for more than a year, and the state’s atypical regulatory framework that will separate most growers and processors from store owners comes from a 2021 law that created a framework for the industry. But spokesmen and lobbyists for the 10 multi-state operators that serve the state’s medical marijuana patients have been in ongoing conversations with regulators, who want to prevent those large seed-to-sale businesses from kicking New York’s recreational industry the way it has. Many other states.

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In addition to requiring medical companies to pay a one-time $5 million fee for selling to the entertainment industry, the draft rules would require them to pay additional licensing fees and a percentage of revenue for five years that could reach $1 million annually. . In addition, they would have to wait three years before opening their own recreational retail stores, and each store co-located with a medical vendor would cost an additional $3 million.

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The state has about 124,000 medical marijuana patients who can be certified for any ailment, and there are about 40 locations in the state where they can buy marijuana, including multiple stores in the capital region. Prescription holders are also now allowed by the state to grow their own plants at home, while recreational users are still prohibited from doing so.

But the number of patients is expected to decrease due to the number of recreational users who purchase recreational marijuana, and who may soon purchase from licensed sellers. The draft industry rules require medical marijuana companies interested in selling recreational marijuana to develop a “medical patient preference plan” that includes “sufficient medical marijuana products at each co-located retail dispensary.”

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Despite the ban, which could cost New York’s 10 licensed medical companies significantly more than fees for industry entrants, the companies may still be in a better position to sell marijuana to third-party retail stores. They had the opportunity to build their facilities in anticipation of an expanding market, while many investors waited in the wings due to licensing uncertainty. And while many licensed conditional growers opt for outdoor crops in the summer, medical firms pride themselves on indoor growing, which provides a more controlled environment.

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