Although recreational use dispensaries are set to open in New York, cannabis legislation remains disjointed and confusing across the country. Some states have fully legalized recreational use while others still decriminalize medical use. Here is what you need to know about how to apply for a New York cannabis license and the status of cannabis in various US jurisdictions.
New York Licenses
New York announced the intent to legalize adult-use cannabis and licenses cannabis businesses on March 31, 2021. With the state’s Office of Cannabis Management (OCM) currently taking applications for business licenses, recreational cannabis sales are set to begin by the end of 2022.
There are several licenses available to deal with separate segments of the supply chain, such as cultivators, processors, and retail dispensaries. Aside from considering the New York dispensary license cost, aspiring business owners need to fulfill certain requirements to be eligible for license approval.
The Conditional Adult-Use Retail Dispensary (CAURD) license is notably designed to promote diversity and inclusion in the industry. On its website, the OCM made clear its intention to award half of the available licenses to applicants that promote social and economic equity.
In a bid to ensure that licenses benefit the state and its people, applicants must be a business incorporated under the laws of New York or be residents of the state. To fulfill residency, applicants must have been physically in-state for at least 180 days in the past year or 540 days in the past three years.
In addition, at least one of the applicants must be justice involved—meaning that they were convicted, or closely related to someone who was convicted, of a marihuana-related offense before March 31, 2021. This regulation seeks to give priority to persons previously harmed by cannabis prohibition.
Complicated Regulations
Compared to Canada, the US is lagging significantly in cannabis legalization. On 17 October 2018, the federal Cannabis Act came into effect in Canada, making it the second country in the world to decriminalize and formally legalize the cultivation, possession, use, and trade of cannabis.
While many states in the US have relaxed their cannabis prohibitions, the federal government still has not done so. Cannabis is still federally listed as a Schedule I narcotic. This means that its use and sale remain illegal under federal law, even in jurisdictions where recreational or medical use has been legalized.
Because of this, cannabis businesses face numerous issues. For instance, they have limited access to banks which are governed by the federal government and cannot make business expense claims on their federal income taxes. Farmers may not use federal land or resources as well.
Furthermore, there are different regulations governing the production, distribution, trade, possession, and use of cannabis in each jurisdiction. This means that cannabis businesses may only operate within their state borders and that commercial cannabis cannot be moved across state lines.
Recreational Use
Recreational use legislation is significant because it means that adults (people aged 21 and older) can legally consume cannabis for pleasure without having to prove that they have medical conditions that require cannabis treatment. All jurisdictions that legalized recreational cannabis also allow medical cannabis use.
In these states, residents are allowed to cultivate, possess, buy, sell, and trade cannabis. They are also allowed to use cannabis recreationally in public—but notably away from child-centered facilities such as schools and areas with a large number of children such as public parks.
Recreational cannabis is legal in the following jurisdictions of the US: Alaska, Arizona, California, Colorado, Connecticut, the island of Guam, Illinois, Maine, Massachusetts, Michigan, Montana, New Jersey, New Mexico, New York, Nevada, Northern Mariana Islands, Oregon, Rhode Island, Vermont, Virginia, Washington, and the district of Washington, DC.
Medical Use
Medical use legislation authorizes the use of cannabis for the treatment of a variety of symptoms and disorders, such as anxiety, depression, chronic pain, nausea, and post-traumatic stress disorder.
Each state has its own criteria and guidelines for when doctors may recommend cannabis and cannabinoids. Individuals need to obtain doctor’s documents to prove that they are eligible for medical cannabis products before they can purchase cannabis from authorized dispensaries.
Some states have medical cannabis legislation that is comparatively lax, while others are extremely strict. For instance, in some states, medical cannabis is legal but consuming it by smoking is not. Typically, medical cannabis patients are limited to using cannabis in their private residences.
Low THC/CBD Medical Use
Under federal regulations, a Cannabis sativa L. plant that contains less than 0.3% THC (tetrahydrocannabinol) by dried weight is considered hemp, which is fully legal. On the other hand, if the plant contains more than 0.3% THC, it is classified as ‘marijuana’ and listed as a Schedule I drug, which is completely illegal.
CBD (cannabidiol) does not produce intoxication as its relative THC does. Following the release of the 2018 farm bill, many states allowed their residents to legally access CBD products derived from hemp while others continued to fiercely debate and restrict the use of CBD products.
As apparent from the information above, the legality and governance of cannabis and its related enterprises vary widely from state to state. People who are looking to start a cannabis business should seek legal and professional consultation to ensure that they adequately protect their investment and meet the appropriate requirements.