New York Cannabis Consulting
New York Cannabis Market
By The Numbers
$2.6B
Adult-use market estimate by 2027
2.5M+
Cannabis consumers in the last year
$119.1M
2021 medical sales estimate
38
Medical dispensaries open as open as of March 2022
Let's Talk About Your Business!
We’ll Help You Grow
From our offices in New England, we help clients nationwide navigate the complex and evolving challenges of starting and operating a cannabis business.
Whether you’re launching a dispensary, looking to develop seed-to-sale software, or you’re looking to elevate the efficiency of your existing business with the help of an outsourced professional who’s familiar with the industry, we’re here to help.
STRATEGY
- Strategic Advisory
- Interim & Fractional Management
- Exit Planning & Strategy
- Mergers & Acquisitions Advisory
Finance
- Financial Planning & Analysis
- Financial & Cash Flow Modeling
- Fractional CFO Services
- Business Valuation
- Financial Reporting & Processes
Operations
- Revenue Growth
- Cost Improvement
- Data Analytics
- Project Management
- Corporate Policies & Procedures
Turnaround Management
- Restructuring Advisory
- Performance Improvement
- Lender Advisory
- Fiduciary Services
- Crisis Management
Startups
- Market Research
- Business Planning
- Investor Relations
- Product Development
- Hiring & Resource Augmentation
Economic Development
- Economic Impact Analysis
- Government Efficiency
- Grant Writing
- Tribal Business Consulting
- Legal Cannabis Consulting
Historical Overview
July 5, 2014
Compassionate Care Act
Governor Andrew Cuomo signs law permitting medical patients to use and possess medical cannabis
December 23, 2015
Medical Marijuana Patient Registry
The DOH launches the online Medical Marijuana Patient Certification and Registration System
January 7, 2016
First Sale
Eight dispensaries state-wide begin sales to qualified patients
August 1, 2017
Additional Players Enter Market
The DOH permits five new MSOs to enter the New York market
December 8, 2017
New Products are Made Available for Sale
The NYS Dept. of Health announces topicals, chewable edibles, and non-smokable forms of plant material are allowed for sale
July 12, 2018
Opioid Replacement Becomes a Qualifying Medical Condition
The Dept. of Health allows registered practitioners to certify patients to use medical cannabis as a replacement for opioids
March 31, 2021
Marijuana Regulation & Taxation Act (MRTA)
Governor Cuomo legalizes cannabis use and possession for adults 21 years and older. He also signs legislation making smokable flower newly legal
What to Expect & Recent Developments
- New York’s attractive market is home to over 19 million residents and is highly touristed from around the United States and the world.
- Municipalities had a set deadline of December 31, 2021, to opt-in or out of allowing adult-use retail and/or on-site consumption businesses within their limits.
- Sales tax is set to begin at 13%. 9% will be allocated to the state, while 4% will go to municipalities. Wholesale tax will be placed on flower, edibles, and concentrate sales and is dependent on the amount of THC in each sale.
- Currently, there are no caps on any license types in the adult-use market.
- 50% of all licenses will be awarded to social equity applicants. The first 100 to 200 retail licenses will be awarded to applicants with previous cannabis-related convictions.
- Governor Hochul and other New York government officials completed their nominations for the Office of Cannabis Management (OCM) and the Cannabis Control Board (CCB) in mid-September 2021. The CCB has been meeting monthly since October 2021.
- CCB members have estimated that initial adult-use licensing regulations will be released sometime in fall 2022.
- In February 2022, Governor Hochul signed a bill allowing current New York hemp farmers to receive conditional cultivation licenses to begin growing cannabis for the adult-use market.
Adult-Use Market Overview
The New York adult-use market could see many retailers and cultivators with no current statewide cap on any proposed license types. Compared to the state’s medical market which only allows 4 dispensaries and 1 cultivation facility per license, we expect a major shift towards the adult-use market over time as existing medical storefronts convert and patients do not renew.
The adult-use market is yet to be implemented and presents significant growth opportunities: adult-use sales are projected to reach $2.6B by 2027.
Governor Hochul projects “thousands and thousands” of jobs will be created due to the adult-use market’s implementation. Prior to his resignation, Governor Cuomo estimated 60,000 jobs would be created within New York’s adult-use market.
New York expects to collect over $245 million in taxes annually from adult-use sales by 2025 to be used as follows:
- To state schools through the State Lottery Fund 40%
- To community reinvestments 40%
- To public education and drug treatment 20%
Marijuana Regulation & Taxation Act (MRTA)
Taxation
Enhanced Sales Tax
- 9% to the State
- 4% to Municipalities
At-Home Cultivation
New York State residents will be able to grow a maximum of 6 plants at home per person (12 max per household)
No License Caps
The Office of Cannabis Management and Cannabis Control Board have not placed caps on any license types
Municipal Opt-Outs
Municipalities had until December 31, 2021 to opt-out of allowing recreational sales and on-site consumption
Vertical Integration Not Permitted
Unlike the State’s medical program, adult-use cannabis businesses in New York will not be allowed to vertically integrate
Delivery
Home delivery will be allowed for adult-use sales
On-Site Consumption
Products my be consumed in a consumer’s home privately or at an on-site consumption site that is licensed by the State
Emphasis on Social Equity Applicants
The State has committed to award 50% of all licenses to social equity applicants
- 9% to the State
- 4% to Municipalities
New York Adult-Use Cannabis License Types
There are 9 classes of licenses available
Key State Rules
- May also apply for one processor license and one distributor license to distribute own products
- The CCB may allow cultivators to perform minimal processing without holding a processor license
- License cap yet to be determined by the CCB
Key State Rules
- Able to conduct processing activities at multiple locations under one license
- License cap yet to be determined by the CCB
Key State Rules
- Must be comprised of New York state residents
- Members can not be a part of more than one licensed cooperative
- License cap yet to be determined by the CCB
Key State Rules
License holders will have limited cultivation, retail, production, distribution and delivery capabilities
Size and scope TBD by forthcoming CCB regulations
Social equity applicants will be favored
Key State Rules
Any distributor who has a direct or indirect involvement in a licensed cultivator or processor may only distribute products cultivated and processed by that licensee
License cap yet to be determined by the CCB
Key State Rules
May sell clones, immature plants, and seeds to cultivators and cooperatives
Social equity applicants will be favored
License cap yet to be determined by the CCB
Municipal Opt-Outs
New York municipalities had a set deadline to opt-in or opt-out of allowing adult-use retail and on-site consumption businesses within their municipal limits
MUNICIPAL OPT-OUT FRAMEWORK & RESULTS
- The MRTA allowed New York municipalities to decide whether to allow adult-use retail and/or on-site consumption businesses within their limits. Municipalities had a deadline of December 31, 2021, to make their decisions.
- A municipality could opt out of both adult-use retail dispensaries and on-site consumption licenses, or just one of them (for example, allow retail dispensaries but not on-site consumption licenses); Municipalities could not opt-out of other adult-use license categories.
- Municipalities who did not opt-out by the deadline are considered opted-in and will not be able to opt-out in the future.
- Current Count of Opt-Ins and Opt-Outs by License Type (as of March 21st, 2022):
- Retail –751 municipalities opted-in (~50% of all municipalities)
- On-Site Consumption –633 municipalities opted-in (~42% of all municipalities)
- Several highly populated municipalities opted out of both retail and on-site consumption, including Hempstead,Oyster Bay, and Islip.
- Municipal Opt-Out Framework & Results
- Source: US Census Bureau. Marijuana Regulation and Taxation Act, Rockefeller Institute, Opus Consulting
New York Retail Municipalities
Top 10 Opted-In Municipalities (By Population)
New York Onsite Consumption Municipalities
Top 10 Onsite Consumption Municipalities (By Population)
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Leadership Team
Jacques Santucci , President
As the President of Opus Consulting, Jacques brings years of leadership experience in the cannabis industry, as well as entertainment, tourism, financial services, and technology industries. His team assists clients around the country navigate the complex and evolving challenges of starting and operating a cannabis business.
His focus is on setting up the corporate strategy and structure, operations and administration of the business, designing and overseeing construction of facilities and systems as well as creating strong relationships with financing partners and major vendors, with a cross-functional approach to innovation and performance.
Jacques Santucci is a co-founder of Wellness Connection of Maine, the state’s largest group of medical marijuana dispensaries and a leader on the East Coast market, operating four state-licensed dispensaries and one growing and manufacturing facility, with a staff of over 80 employees. He is the founder and CEO of Strimo, a software company focused on empowering the serious cannabis operators to manage business performance.
He is a thought-after speaker on the topics of the impact of 280E, the primary business management basics for the recreational market and the evolution of the New England market. He is an active member of the National Cannabis Industry Association, part of the Facility Design Committee.
Connor Yost, Partner
Connor specializes in cannabis business startups, and has been at the forefront of the emerging legal industry since 2014. With a focus on business operations, marketing and compliance, Connor has been instrumental in the license acquisition and launch of several successful companies nationwide. Connor has, and continues to collaborate with the brightest and most successful business leaders in the industry, allowing him to amass a broad skill set and network of resources. Connor’s clients have found success through his commitment to industry best practices and hands-on project management approach. In addition to his consulting practice, Connor is also a founder of Stage Cannabis, an adult-use retail dispensary in Portland, ME.