True Parties of Interest for Supply Tier Licenses
Guidance & Frequently Asked Questions
The New York State Cannabis Law provides a statutory framework for individuals and entities with an interest in businesses licensed by the Office of Cannabis Management (Office). The Cannabis Law creates a two-tier market structure for the Adult-Use Cannabis Program, whereby individuals or entities having any direct or indirect interest in a licensee authorized for the supply tier (nursery, cultivation, processing, distribution, cooperative, microbusiness, Registered Organization with Dispensing or “ROD”, and Registered Organization Non-Dispensing or “ROND”) are prohibited from holding any direct or indirect interest in a licensee on the retail tier (dispensing, on-site consumption, delivery) of the market and vice versa. The Cannabis Law also includes prohibitions for individuals or entities with an interest in an Article 3 registered organization or laboratory testing permit holder and Article 4 adult-use licenses. In contrast to the absolute prohibition on holding any direct or indirect interest vertically across the two tiers, the Cannabis Law allows for an individual or entity to have an interest in multiple licenses within the same tier, albeit with several significant restrictions designed to ensure increased competition and access to the industry. This guidance for supply tier licensees, which includes nursery, cultivators, processors, distributors, cooperatives, microbusinesses, ROND, and ROD, provides additional information as they continue to grow their licensed businesses. Licensees are responsible for remaining compliant with this guidance and any future guidance, laws, and regulations governing licenses.