All About On-Site Cannabis Consumption & Delivery in New York

2023 Updates For New York Cannabis Delivery Services & On-Site Consumption

We’ve seen updates for New York cannabis retailers, processors, and cultivators. What’s next? It’s got to be consumption and delivery! Previously just noted about in the proposed regulations, the revised regulations has added a tremendous amount of clarity in the way of what individuals and businesses can and cannot do and illustrating what the cannabis industry will look like when its fully activated in the Empire State.

Program Definitions: What Exactly Are We Looking At?

Some important definition clarification at the onset is needed I think. There is a slight difference in what the New York Cannabis Control Board (“Board”) regards as being a consumption premises and a consumption facility.  An adult-use on-site consumption premises means a place where the consumption of cannabis occurs and shall be either a consumption facility or an exception area. Meanwhile, a consumption facility means an adult-use on-site consumption premises at which both the consumption of cannabis products and the retail sale of cannabis products to consumers may occur and is either a limited retail consumption facility or a microbusiness. Catch that difference? It may be hard to spot at first, but in essence a consumption premises can be a consumption facility or an exception area, while a consumption premises is a consumption facility where cannabis products can be consumed and bought from the retailer. On top of this, we have limited retail which is a type of consumption facility which is a distinct area within the retail dispensary.

In addition, it’s important to note regarding delivery and distribution. A cultivator, for instance, can pursue a distributor license to distribute cannabis to a processor, for instance, but does not need a delivery license. A delivery license is only for cannabis businesses on the retail side of the industry, such as a retail dispensary, to deliver cannabis or cannabis products to individual customers.

Cannabis Retail Consumption: What Can You Do?

A limited retail consumption is allowed to be located within the boundaries of the same parcel as the dispensary (indoors or outdoors) or within the boundaries of a parcel which is contiguous with the parcel containing the associated dispensary. These limited retail consumption facilities shall not have a point of sale within the facility (meaning that customers will need to formally make a purchase within the dispensary itself, apart from the designated premises of the facility) and employees at this location are restricted from certain activities such as consumption of cannabis on the premises or  rolling, packing, splitting, infusing, mixing, or otherwise preparing any cannabis products for customers. If the consumption facility is located indoors, proper ventilation will be necessary for smoking and vaping with barriers being in place to prevent the spread of visible smoke or vapor between areas. These consumption facilities can be not just for retail dispensaries but also within microbusinesses, but bear in mind, there are restrictions in place such as hours of operations (uniquely, consumption premises cannot operate between 4am-8am, whereas dispensaries cannot operate between 2am-8am, unless given permission by the municipality). Going back to the definitions of a consumption premises, meanwhile, can be allowable for, say, a restaurant or bar with a designated space for consumption of infused cannabis products while a limited retail consumption facility is restricted to retail dispensaries.

Cannabis Delivery Options

On the delivery side of things, a license holder is able to deliver cannabis and cannabis products into municipalities which have opted-out of allowing dispensaries but can only do so during the dispensaries operating hours. Deliveries can only be made after an order has been placed prior to delivery from a licensed facility. A delivery license alone does not allow one to conduct sales of adult-use or medical cannabis (so you’ll want this license in addition to your retail dispensary license or microbusiness license for instance).

Deliveries also cannot be made outside the state, to people in vehicles, or to anyone not in a residential building. Up to 25 individuals may deliver under the single license during a weeks-time. It is also worth noting that a delivery person can deliver cannabis and cannabis products in an enclosed vehicle, on public transit, on foot, a bike, a scooter, etc. but the amount of cannabis product they carry on their person depends on the mode of transportation. For instance, delivery via an enclosed vehicle such as a car allows one to possess $20,000 worth of cannabis product in the aggregate at any given time while in a non-enclosed vehicle such as traveling on foot only allows for $5,000 worth of cannabis product.

New York License Fees: How Much Is This Going To Cost?

The license fee for a New York retail cannabis dispensary with a limited retail consumption facility is $10,000 while a delivery licensing fee is $4,500. Both also have a non-refundable $1,000 application fee.  As a social and economic equity applicant, both the license and application fees can be reduced by half, deferred, or entirely waived. 

Start Planning For On-Site Cannabis Consumption & Delivery Services Now

These license types offer some of the most unique opportunities to enhance a retail or microbusiness experience, and attract a wider customer base than just a brick-and-mortar store can. They offer great additions to a retail license and we would not be surprised if they were offered in conjunction with retail licenses when the application window opens.

If you’re weighing the options for on-site cannabis consumption in New York or delivery services, look no further than our team of seasoned East Coast cannabis consultants. While we continue to provide an active pulse on the New York Cannabis Market, reach out to us today to look at your options for integrating either or both offerings into your own cannabis business.

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