N.Y. Cannabis Law § 84: Provisions governing the distribution of adult-use cannabis

§ 84. Provisions governing the distribution of adult-use cannabis. 1.

No distributor shall sell, or agree to sell or deliver any cannabis

products, as the case may be, in any container, except in a sealed

package. Such containers shall have affixed thereto such labels as may

be required by the rules of the board.

2. No distributor shall deliver any cannabis products, except in

vehicles owned and operated by such distributor, or hired and operated

by such distributor from a trucking or transportation company registered

with the board, and shall only make deliveries at the licensed premises

of the purchaser.

3. Each distributor shall keep and maintain upon the licensed

premises, adequate books and records of all transactions involving the

business transacted by such distributor, which shall show the amount of

cannabis products purchased by such distributor and the total THC

content of purchased cannabis products as reflected on the product

labels together with the names, license numbers and places of business

of the persons from whom the same was purchased and the amount involved

in such purchases, as well as the amount of cannabis products sold by

such distributor together and the total THC content of cannabis products

sold as reflected on the final product labels, with the names,

addresses, and license numbers of such purchasers and any other

information required in regulation. Each sale shall be recorded

separately on a numbered invoice, which shall have printed thereon the

number, the name of the licensee, the address of the licensed premises,

and the current license number. Such distributor shall deliver to the

purchaser a true duplicate invoice stating the name and address of the

purchaser, the quantity of cannabis products, the total THC content of

cannabis products sold as reflected on the product labels, description

by brands and the price of such cannabis products, and a true, accurate

and complete statement of the terms and conditions on which such sale is

made. Such books, records and invoices shall be kept for a period of

five years and shall be available for inspection by any authorized

representative of the board.

4. No distributor shall furnish or cause to be furnished to any

licensee, any exterior or interior sign, printed, painted, electric or

otherwise, unless authorized by the board.

5. No distributor shall provide any discount, rebate or customer

loyalty program to any licensed retailer, except as otherwise authorized

by the board.

6. The board is authorized to promulgate regulations establishing a

maximum margin for which a distributor may mark up a cannabis product

for sale to a retail dispensary. Any adult-use cannabis product sold by

a distributor for more than the maximum markup allowed in regulation,

shall be unlawful.

7. Each distributor shall 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 licensee.

Such books, records and invoices shall be kept for a period of five

years and shall be available for inspection by any authorized

representative of the office for use in determining the maximum markup

allowed in regulation pursuant to subdivision six of this section.