New York has again extended the deadline for marijuana business license applications, causing frustration and financial strain for hopeful entrepreneurs. This recent delay adds to a series of setbacks in the slow rollout of adult-use cannabis in the state, leaving small businesses struggling to stay afloat while waiting for approval to open their doors.
New Timeline For Applications
The Cannabis Control Board in New York has recently approved an extension for the marijuana business license application window. The timelines are set at November 17th for Non-provisional Retail & Microbusiness licenses and December 18th for all other license types. Opening the window for two more weeks. The original deadline was December 4th.
BREAKING: The #NYCCB has just approved extending the adult-use #NYcannabis licensing application window.
— NYS Office of Cannabis Management (@nys_cannabis) October 17, 2023
The new deadlines are:
🗓 Fri, 11/17 at 5:00 PM EST for Non-provisional Retail & Microbusiness licenses.
🗓 Mon, 12/18 at 5:00 PM EST for all other license types.
This new extension will give more people and businesses a chance to apply for licenses, but it also means continued financial strain for small business owners who have been waiting since August for the licensing process to move forward.
“More time will hopefully inspire a diverse slate of applicants and reduce barriers to entry, but for those applicants who are already carrying real estate or otherwise burning cash, further delays are troubling,” the founder of New York-based Rudick Law Group told MJBizDaily via email.
Since August, the licensing process in New York has been at a standstill due to a lawsuit. This delay has resulted in added expenses for small businesses as they continue to pay employees, rent, utilities, and other operational costs without being able to open their doors.
With this extended timeline, small businesses in the cannabis industry are once again faced with financial setbacks as they wait for approval to start operating. This delay has been a major hurdle for many entrepreneurs who have invested time and money into their businesses, only to be held back by bureaucratic delays.
OCM Trying to Combat The Thriving “Illicit” Market
In addition to the extended application deadline, the New York Office of Cannabis Management (OCM) has also implemented emergency enforcement regulations to crack down on illegal sales in the state. These regulations have been implemented to reduce the burden of proof needed to determine if a business is selling marijuana without a license.
Under these new rules, businesses that receive a notice of violation from the OCM have only five days to respond with a certificate of compliance stating that they have ceased all illegal activity. Failure to provide this certificate may result in further penalties and repercussions. Per regulations, this could be fines of 20,000 per day.
“The burden on us to go back every single day in order to prove noncompliance is far too great,” OCM General Counsel Linda Baldwin said. “This certificate of noncompliance allows the business to inform us that they have, in fact, complied with the order.”
Cannabis Growers Showcase
Despite the setbacks and delays in the licensing process, there has been one bright spot for cannabis growers in New York – the success of the Cannabis Growers Showcase (CGS) program. This program, which allows growers to sell their products directly to consumers at events, has generated $1.5 million in sales since its launch.
The Cannabis Growers Showcase (CGS) program is a unique initiative by the New York Office of Cannabis Management. It allows licensed cannabis growers and processors to sell their products directly to consumers at events. These events can occur at various locations, including temporary retail locations, licensed retail dispensaries, or other approved event locations.
For many farmers who are unable to sell their products directly to consumers due to the lack of retail options, the CGS program has provided a much-needed platform to showcase and sell their products. This success highlights the potential for New York’s cannabis industry and serves as a reminder that despite the challenges, there are still opportunities for growth and success.
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