Microbusiness License
An applicant for a microbusiness license shall indicate on the application for licensure the activities in which the applicant intends to engage, including:
(1) The license tier, which shall be limited to one, in which it seeks to operate based on the size of the cultivation canopy and the type of cultivation as set forth below:
(i) Indoor canopy not to exceed 3,500 square feet;
(ii) Mixed light canopy not to exceed 5,000 square feet; or
(iii) Outdoor canopy not to exceed 10,000 square feet.
(iv) Combination canopy not to exceed outdoor canopy of 5,000 square feet and mixed-light canopy of 2,500 square feet.
(2) The processing activities in which the applicant intends to engage, including:
(i) extracting;
(ii) blending and infusing;
(iii) packaging and labeling; or
(iv) branding, including for the exclusive performance of white labeling agreements.
(2) Microbusiness licensees shall be authorized to expand their cultivation canopy subject to the same operational requirements as set forth for cultivator licenses, however upon expanding canopy size, a microbusiness shall only be eligible to transfer to a cultivation-only license tier.
(3) Authorizations:
(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 under the rules, including, but not limited to, Part 124 of the rules, 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.
Microbusiness Operations
(a) A microbusiness shall:
(1) comply with all rules, regulations, and policies applicable to a cultivator in a tier with the same canopy size as the microbusiness;
(2) unless otherwise set forth in this section, comply with all requirements imposed by the Cannabis Law and this Title on licensed adult-use cultivators, processors, distributors, and retailers to the extent the microbusiness engages in such activities.
(3) if authorized to cultivate by the Board on the licensee's application, cultivate with one (1) of the following types of cultivation: outdoor, mixed light, indoor, or a combination of outdoor with mixed light. The microbusiness may cultivate within a specified type of cultivation as approved by the Board on the licensee's application. The maximum canopy for each type of cultivation, unless otherwise approved by the Office, shall be the canopy limits set out in paragraph (1) of subdivision (c) of section 120.3 of the rules;
(4) be permitted to purchase up to 500 pounds of cannabis, or the extract equivalent, per calendar year from a duly licensed cultivator, microbusiness, cooperative or collective, ROD or ROND;
(5) be permitted to, in the case of a significant crop failure as defined by the Office, and written approval from the Office, purchase additional cannabis or cannabis extract up to a quantity sufficient to replace that failed crop;
(6) if authorized to process by the Board on the licensee's application, process no more than 1,700 pounds of biomass per year, unless the biomass is cultivated solely by the microbusiness exclusively at its licensed premises;
(7) if authorized to distribute by the Board on the licensee's application, distribute only their own cannabis products to retail dispensaries or on-site consumption premises;
(8) if authorized to conduct retail sales by the Board on the licensee's application, sell only their own cannabis products to consumers; and
(9) be authorized to have its retail premises in a location separate from the premises where it is cultivating or processing cannabis, provided, however:
(i) the retail premises complies with all other zoning and operational requirements for retail dispensary licensees;
(ii) for licensees in a city with over one million (1,000,000) persons, the retail premises is located in the same county as the cultivation and if applicable processing premises; and
(iii) for licensees outside of a city with over one million (1,000,000) persons, the retail y premises is located within 25 miles of the cultivation and if applicable processing premises.
(b) A microbusiness shall not purchase more than 500 pounds of cannabis biomass or extract equivalent cultivated by a cultivator unless the microbusiness suffered a significant crop failure, as defined by the Office, and received prior written approval by the Office.
Leaf Legal Can File Your Microbusiness License Application
The first step in preparing for your cannabis license application is to retain a cannabis business attorney.
Leaf Legal, P.C. is fully equipped to assist your legal needs in New York's rapidly expanding licensing and regulatory scheme. Contact the attorneys at Leaf Legal, P.C. to request a consultation.