ASK THE BUSINESS LICENSE GURU

By David Yount

Question:

“How can I obtain a permit to grow and distribute medical Marijuana in New York?”

Answer:

The New York Medical Marijuana Program is in the earliest stages of implementation. Via the Compassionate Care Act, the state has passed legislation allowing the Department of Health to issue permits for five qualified organizations to begin growing and dispensing medical marijuana in the state. Each of these organizations will be allowed to open four dispensaries, geographically spaced across the state, for a total of 20 possible state medical marijuana dispensaries.

How will the organizations be chosen?

The Department of Health is currently accepting applications and has recently extended the deadline by which organizations must apply to June 5th, 2015. The organizations chosen will be those who have most completely fulfilled the necessary prerequisites and demonstrated compliance with the New York Department of Health Medical Marijuana Program rules.

What sorts of prerequisites are required?

Applying organizations must submit detailed business plans which demonstrate good and ethical business models and prove that they are capable of satisfying the state’s large demand for medical marijuana. There are varying pre-application education requirements, license requirements, and state-sponsored health and business courses that staff members must complete depending on their position within the organization.

Are there any application fees?

Yes. Each application must be accompanied by two fees: a $10,000 non-refundable application fee and a $200,000 biennially renewing registration fee which will be refunded should the organization be denied a registration.

Will New York allow for more organizations in the future?

While it is not certain that New York will allow more medical marijuana organizations to become registered in the future, there are signs that such may someday be the case. Though scrupulous and prudent at the onset, the law does, for instance, allow the health commissioner to increase the amount of dispensaries allotted to each registered organization if deemed appropriate. With changing national sentiment, it is not unreasonable to assume that regulations will relax eventually.

With licensing rules and regulations changing at such a rapid pace, obtaining a permit for growing and distributing medical marijuana can be a difficult process. LicenseLogix can determine what the licensing requirements are and assist you in getting a license. Contact us today to get started.

*Information current as of 6/1/2015