OCM Licensing
New York’s cannabis system is built on strict license types. What you are allowed to do depends entirely on the license you hold, and operating outside that scope is a compliance violation.
This page explains the purpose of OCM licensing, how license scope is enforced, and where to find clear breakdowns of each license type before you commit money, property, or contracts.
What This Covers
- How OCM licensing works in New York
- Why license scope and limits matter
- How OCM enforces license boundaries
- Where to find detailed guidance on each license type
How OCM Licensing Works
Every cannabis activity in New York requires a specific license issued by the Office of Cannabis Management (OCM).
Each license defines:
- What activities you are allowed to perform
- What activities are prohibited
- Where and how you may operate
- Who you may buy from and sell to
- What reporting, security, and operational standards apply
Holding a license does not grant general permission to operate across the supply chain. Authority is limited to the exact license type and conditions issued.
License Scope and Limits
OCM enforces license scope strictly.
License limits control:
- Whether you may cultivate, process, distribute, deliver, or retail
- How many locations you may operate
- Whether you may hold or influence other license types
- How inventory may move through the supply chain
- Which compliance rules apply to your operations
Operating outside your licensed scope is treated as a violation, not a mistake.
Enforcement of License Boundaries
OCM enforces licensing through:
- Application review and license conditions
- Facility inspections
- METRC data review
- Financial and inventory audits
- Incident reporting and enforcement actions
Common enforcement triggers include:
- Acting like another license type without authorization
- Moving product outside approved channels
- Sharing space or inventory with unlicensed entities
- Holding prohibited ownership or control interests
Licensing violations can result in fines, license suspension, or revocation.
License Type Overviews
Each license type has its own rules, risks, and operational requirements. Use the pages below to understand what applies to your business.
- Adult-Use Retail: Selling cannabis to adults 21 and over through a licensed storefront and approved delivery operations.
- Microbusiness: A closed-loop license allowing limited cultivation, processing, distribution, and retail of self-produced products only.
- Processor: Manufacturing cannabis products from raw plant material into consumer-ready goods.
- Distributor: Transporting, storing, documenting, and transferring cannabis products between licensees.
- Delivery: Transporting prepaid cannabis orders from licensed retailers to adult-use customers.
- Registered Organization (Medical): Vertically integrated operators licensed to serve New York’s medical cannabis program, with limited adult-use participation.
What Operators Usually Miss
- You cannot mix license activities without explicit authorization
- License limits apply even before you open
- Lease terms, buildout plans, and staffing must match your license type
- METRC permissions differ by license
- Violations often occur during transitions between license stages
When This Comes Up
- Before applying for a license
- During site selection and lease negotiation
- When designing buildout and operations
- When adding delivery, processing, or expansion plans
- During audits, inspections, or enforcement actions
What Happens If You Ignore This
Operating outside your license scope can result in:
- Application denial or delay
- Fines and enforcement actions
- Forced shutdown of unapproved activities
- License suspension or revocation
- Inability to renew or modify your license
Related OCM Licensing Section Pages
Source Material
