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 123.8 - Distributor Operations

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
				  distributor shall:
(1) comply with article
				  20-C of the Tax Law, as well as other applicable provisions of law.
(2) transport only cannabis products between
				  adult-use cannabis licensees; and between the licensed premises of an adult-use
				  cannabis facility for purposes of distributing the cannabis products;
(3) including its employees, who possess or
				  transport cannabis products upon the public highways, roads or streets of the
				  state, shall have in their possession invoices or manifests for such cannabis
				  products. Such invoices or manifests shall show the name and address of the
				  seller, the name and address of the purchaser, the quantity, product type and
				  brands of the cannabis products being distributed, and the name and address of
				  the person who has or shall assume the payment of the tax or the tax paid or
				  payable. The absence of such invoices or manifests shall be presumptive
				  evidence that the tax imposed by article 20-C of the Tax Law on cannabis
				  products has not been paid and is due and owing.
(4) maintain transaction records of all
				  cannabis product purchased and distributed to distributors, retail
				  dispensaries, or on-site consumption premises and send such records to the
				  Office's inventory tracking system, real-time, in a manner determined by the
				  Office. Such records shall provide enough detail to independently determine the
				  taxability of each sale, the tax liability for each cannabis product sold and
				  the amount of tax payable by the distributor.
(i) detailed information required for each
				  sales transaction, including, but not limited to:
(a) individual cannabis product item(s)
				  sold;
(b) selling price;
(c) tax due;
(d) method of payment;
(e) employee completing the sales
				  transaction:
(f) a device used to
				  complete a sales transaction that may be a combination of software and
				  hardware;
(g) sales transaction
				  number;
(h) date and time of the
				  sale; and
(i) the name, address and
				  license number of the retail dispensary or on-site consumption
				  premises.
(ii) a
				  distributor, retail dispensary and on-site consumption premises shall be
				  offered a receipt of their purchase which shall include, but not be limited to:
(a) the name, address, and license number of
				  the distributor;
(b) the date and
				  time of sale;
(c) the form and the
				  quantity of cannabis products and any other items sold; and
(d) the first name and the first letter of
				  the last name of the employee completing the
				  sale.
(5) keep
				  and maintain upon the licensed premises adequate books and records to
				  demonstrate the distributor's actual cost of doing business, using accounting
				  standards and methods regularly employed in the determination of costs for the
				  purpose of federal income tax reporting, for the total operation of the
				  distributor. Such books, records, and invoices shall be kept for a period of
				  five (5) years and shall be available for inspection by the Office.
(6) a distributor shall comply with any fees,
				  maximum margins, price posting requirements, and any policies related to market
				  competition and license availability restrictions determined by the
				  Office.