Medical cannabis companies hoping to operate in New York will have to jump through several regulatory hoops and pay a hefty sum under regulations issued by the state.
Businesses seeking to become one of five companies that will be allowed to operate up to four dispensaries each must pay a $10,000 application fee. They also must submit a $200,000 check for the actual license, though that will be refunded if the application is denied.
If approved, the license would be valid for two years, according to the regulations. Businesses would lose their permit if they don’t start operations within six months of approval.
Each cultivator would be allowed to grow only five strains, which advocates say will limit income for businesses and put undue stress on the industry, making it difficult for the program to move forward.
The regulations will be published at the end of December and then will be subject to a 45-day comment period.
Companies will be required to provide a host of information about their manufacturing, transportation, security, distribution and sales plans.