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Our attorneys stay on top of changes in legislation, agency regulations, case law, and industry trends—then craft timely legal alerts to keep clients up to date on legal developments important to their business.

January 9, 2024

Urgent Compliance Advisory for New York State Cannabis Operators: Prepare for Upcoming OCM Audits

In light of the evolving regulatory landscape for cannabis businesses in New York State, it is crucial to emphasize the importance of stringent compliance with the state’s cannabis regulations. The New York Office of Cannabis Management (OCM) is expected to initiate compliance audits in the future. This development underscores the need for all cannabis operators to rigorously adhere to regulatory requirements to avoid potential legal and operational setbacks.

Key Points

  • Regulatory Compliance Is Paramount: The OCM has been actively shaping the regulatory framework for adult-use cannabis, as seen in recent updates and guidance. Compliance with these regulations is not just a legal obligation but a critical component of your business’s sustainability and growth in this dynamic industry.
  • Anticipated Compliance Audits: There is a strong indication that the OCM may begin conducting compliance audits soon. These audits are expected to be thorough and will assess adherence to all aspects of the state’s cannabis regulations, including licensing, cultivation, processing, distribution, retail operations, and all true party of interest (TPI) requirements and prohibitions.
  • Pre-Audit Compliance Checks: To ensure that your business is fully compliant with all regulatory requirements, we recommend conducting pre-audit compliance checks. These checks will help identify and rectify any potential areas of noncompliance before they become issues during an OCM audit.

Our Role

As legal advisors, we are committed to assisting cannabis businesses in navigating these regulatory challenges. Our team is equipped to conduct comprehensive pre-audit compliance reviews, offering guidance and support to ensure cannabis businesses meet all regulatory standards.

Next Steps

  • Schedule a Compliance Review: Contact us to arrange a detailed compliance review of your operations. Our team will work with you to assess your current compliance status and implement any necessary changes.
  • Stay Informed: Keep abreast of regulatory updates and changes. Barclay Damon will continue to provide timely alerts and guidance on significant developments in cannabis regulations.
  • Be Proactive: Proactively addressing compliance can prevent costly legal challenges and disruptions to your business. It is essential to maintain a culture of compliance within your organization.

If you have any questions regarding the content of this alert or would like to schedule a compliance review, please contact Jason Klimek, Cannabis Team co-leader, at jklimek@barclaydamon.com, or another member of the firm’s Cannabis Team.
 

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