Definitions (NYCRR)

NYCRR Sections 116.1 and 118

These definitions apply across New York’s adult-use cannabis regulations. They control how the Office of Cannabis Management (OCM) interprets licensing, ownership, control, premises, permitted activities, and compliance obligations.

Operators must understand these terms because they determine who can own a license, who has control, what locations qualify as licensed premises, and how rules are enforced.

What This Covers

  • Legal definitions used throughout adult-use regulations
  • Ownership, control, and interest terms
  • Licensing, premises, and operational terms
  • Product, packaging, and inventory terms
  • Enforcement and compliance terminology

Jump To

  • Licensing and Ownership Terms
  • Premises and Location Terms
  • Product and Packaging Terms
  • Operations and Supply Chain Terms
  • Financial and Business Terms
  • Compliance and Enforcement Terms

Licensing and Ownership Terms

Applicant
Anyone applying for a cannabis license under the Cannabis Law.

Board
The New York State Cannabis Control Board.

License / Licensee
A legal authorization issued under the Cannabis Law and the person or business holding it.

Provisional license / Provisional licensee
Pre-approval from OCM allowing an applicant to secure a location before full licensure.

Registered organization (ROD / ROND)
Medical operators licensed under adult-use expansion rules.

Social and economic equity applicant / licensee
Individuals or businesses eligible for equity priority under Part 121.

True Party of Interest
Anyone who owns, controls, profits from, or influences a licensee, including certain family members, investors, and business partners.

Sole Control
When one person truly controls a business, including 51% ownership and full authority over decisions.

Passive investor
Someone who owns a small stake but does not control the business.

Premises and Location Terms

Adult-use on-site consumption premises
A licensed place where people are legally allowed to use cannabis.

Article 13-E smoking/vaping exception
A space where people may consume cannabis but cannot purchase it.

Consumption facility
A licensed location where people can buy cannabis and consume it onsite.

Exception area
A location where consumption is allowed but sales may occur only during a licensed cannabis event.

House of worship
A building used for religious services.

Public youth facility
A public space mainly serving minors.

School grounds
School buildings and surrounding outdoor property.

Structure
Any built object on land.

Road
Any public route such as a street or boulevard.

Product and Packaging Terms

Cannabis flower product
Cannabis buds, leaves, or flower-based products intended for sale.

Concentrate / concentrated cannabis
A potent form of cannabis created through extraction.

Edible
A cannabis product meant to be eaten.

Tincture
A cannabis extract dissolved in oil, alcohol, or glycerin.

Craft product
A cannabis product made by a Tier 1 cultivator or microbusiness using only its own cannabis.

Retail package
Final packaging for products sold to customers.

Non-consumer package
Packaging used before final retail packaging.

Exit package
The final package a customer leaves a dispensary with.

Cannabis merchandise
Non-cannabis products displaying a cannabis brand.

Cannabis paraphernalia
Equipment used to consume or handle cannabis.

Operations and Supply Chain Terms

Cultivation
All activities involved in growing cannabis plants.

Indoor cultivation
Growing cannabis inside a fully enclosed structure using artificial light.

Outdoor cultivation
Growing cannabis outdoors under natural conditions.

Mixed light
Cultivation using both sunlight and artificial light.

Harvest batch
A uniquely identified group of cannabis harvested under the same conditions.

Manufacturing
Turning raw cannabis into finished cannabis products.

Processing / Processor
Activities and businesses that make cannabis products.

Propagation area
A dedicated area for clones and young plants.

Nursery area
The area used for seedlings, clones, and immature plants.

Ground transport
Land-based transportation of cannabis products.

Working stock
Inventory kept available for normal sales.

Financial and Business Terms

Aggregate ownership interest
All ownership tied together through entities, family members, or layered structures.

Financial interest
Any right to profits, revenue, or equity beyond allowed limits.

Financier
A non-bank lender or funder limited by regulation from ownership or profit sharing.

Financial institution
Banks or similar regulated lenders.

Net profit
Income calculated under standard accounting rules (GAAP).

Goods and services agreement
A contract where someone provides products or services to a licensee.

Compliance and Enforcement Terms

Advertisement / Advertising
Any message meant to promote cannabis or a cannabis business.

Attractive to individuals under twenty-one
Anything appealing to minors, including youth-focused branding.

Corrective action plan
A plan required to fix compliance issues found during inspections.

Debarment
Being barred from licensed cannabis activities due to violations.

Date of expiration / Use by date
The last date a product may be sold or safely used.

Serious adverse event
A major negative reaction linked to cannabis use.

Record
Any document or file used to store information.

What Operators Usually Miss

  • Definitions control enforcement, not just interpretation
  • Ownership and control terms trigger licensing violations
  • Premises definitions affect zoning and inspections
  • Marketing terms are enforced under separate parts

When This Comes Up

  • Application review
  • Ownership changes
  • Inspections and audits
  • Enforcement actions
  • Contract negotiations

What Happens If You Ignore This

  • Application denial
  • License suspension or revocation
  • Ownership unwinds
  • Compliance violations
  • Enforcement penalties

Related Pages

Source Material