Answers to the New York Compliance Quiz

a) 10 mg

b) 100 mg

c): 1,000 mg (correct answer)

While every other ingestible product type is capped at 100 mgs of total THC per package, tinctures are the exception. It is important to note you are still limited to 10 mg total THC per serving. Tinctures must be packaged in a manner such that a single, 10 mg serving is “readily identifiable or easily measurable and the package is resealable.” If you cannot reliably ensure this, you must include a measuring device, such as a cap, cup, or dropper with the product packaging. Hash marks on the package do not count!

We sometimes see products in New York marketed as tinctures even though they do not match the regulation's definition of a tincture. If the OCM were to dtermine a product on the shelves was not a tincture but contains more than 100 mgs of total THC per package, they could order a recall and destruction of the entire batch.

So then what is a tincture?

According to the regulations, a Tincture means a non-potable edible cannabis product that is a cannabis extract solution, intended for human consumption or ingestion, dissolved in alcohol, glycerin, or plant-based oil.

a) 72 hours (correct answer)

b) 5 business days

c) 30 calendar days

If you lose connection to the inventory tracking system for any reason, such as the ITS service being down or troubles with your internet service provider, you may still carry out certain cannabis inventory activities, manually track each movement, then backdate the activities to the ITS.

It’s critical to know if you lose access to the inventory tracking system, you cannot initiate transport for, receive, transfer or deliver any cannabis or cannabis products until access is restored, or OCM grants approval to conduct these activities without access.

Be mindful that in addition to tracking the specific inventory movements, you must also log when access was lost and restored, as well as the cause for the loss of access.

Nothing in the regulations prevents you from making the business decision to close your doors while experiencing a loss of access if you prefer.

a) 4 hours (correct answer)

b) 10 hours

c) None

This requirement is not only written in regulations but a sound business decision. Investment into training is an investment into the efficiency of your business. Keep in mind that any employee training, whether provided during the initial hiring period or annual retraining, must happen during the employee’s work hours and the employee should receive their usual rate of pay.

Regulations stipulate for all training you must keep specific information as part of business records, including trainee’s name, first date of performing licensed activities, and the name and description of all trainings satisfactorily completed by the trainee.

Additional regulations exist dictating further training that must be offered to employees, so make sure you understand the full list of requirements while developing your company training program.

a) Hats

b) Displays

c) Lanyards

d) All of the above (correct answer)

One of the most strict, and often not followed, wholesale rules is the retail advertising specialty. Any branded items you provide to a retailer will constitute a retail advertising specialty by definition. You may only furnish up to $200 worth of retail advertising specialties per license (not per brand) for each retail location in a calendar calendar year, and you cannot pool this with another licensee to exceed the $200 threshold. It is critical to have clear, documented procedures and a tracking system to ensure you know how much you have spent at each retailer each year. 

The OCM calculates value as the actual cost of the item to the licensee who initially purchased the item, and regulations exclude the cost of transportation and installation. 

We've seen several instances of licensees being asked for records of retail advertising specialty costs and issued fines for non-compliance.

a) Three

b) One (correct answer)

c) As many as they want

One of the most common misconceptions that we hear from operators is that retail dispensary and CAURD license holders are allowed to open three retail locations under their license. Likely, this mistruth stems from the fact that the cannabis law allows for an individual to own the majority of up to three dispensaries statewide.

Dispensary licenses, unlike those on the supply side, are tied to their location and can only request to move - not add any more. In order to own or operate more than one dispensary, you would need to partner or buy into another license, since the OCM's policy has been to only issue one license per controlling individual.