New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle B - Division of Alcoholic Beverage Control › Chapter II - Rules of the Office of Cannabis Management › Part 123 - License Specific Authorizations, Requirements and Prohibitions › Section 123.5 - Processor Ownership, Interests, Business Authorizations and Prohibitions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A processor may
				  acquire, possess, process and sell cannabis from a licensed cultivator to duly
				  licensed processors or distributors. Authorized processing activities vary by
				  the processing license type.
(b) A
				  processor may process cannabis grown by a cultivator without taking ownership
				  over that cannabis.
(c) A processor
				  may only enter into branding or white labeling agreements with its true parties
				  of interest, or another licensee, provided that such licensee is not otherwise
				  prohibited therefrom pursuant to this Title.
(d) A processor may hold one (1) distributor
				  license.
(e) A processor may
				  purchase mature cannabis from a nursery if the cannabis was grown for seed
				  production and the seeds have been removed.
(f) A processor shall only conduct those
				  activities specified on its application, whether on an initial or amended
				  application, that have been approved by the Office or Board for such
				  processor.
(g) A processor may not
				  be a true party of interest in another processor. A true party of interest of a
				  processor may, however, be a true party of interest in a cultivator, processor,
				  distributor, cooperative or collective, microbusiness, ROD, or ROND
				  license.
(h) A processor, or its
				  true party of interest, may have a goods and services agreement with an
				  adult-use cultivator, processor, distributor, cooperative or collective,
				  microbusiness, ROD, or ROND license, subject to all restrictions governing such
				  relationships, including, but not limited to, undue influence, control, and
				  true party of interest requirements.
(i) In addition to any other restrictions or
				  prohibitions in this Title, including, but not limited to, Part 124, no
				  processor or its true party of interest is permitted to have any direct or
				  indirect interest, including by being a true party of interest, passive
				  investor, or having a goods and services agreement with, or by any other means,
				  in an adult-use retail dispensary, on-site consumption, delivery, registered
				  organization registered under article 3 of the Cannabis Law, or cannabis
				  laboratory licensee or permittee.
(j) A conditional processor licensed pursuant
				  to section 69-a  of the Cannabis Law is subject to all rules and regulations in
				  this Title applicable to a processor. A conditional processor determined to be
				  in good standing by the Office shall, upon submitting any necessary forms
				  required by the Office and upon payment of any applicable fees, be permitted to
				  transition to a processor license.
(k) A conditional processor shall be given
				  priority by the Office in review of its application for a processor, and if
				  applicable a distributor license under this Part.