The cannabis industry in New York has been growing rapidly since the legalization of medical marijuana in 2014. With the recent legalization of recreational marijuana, the industry is expected to grow even more. However, with growth comes regulation, and the state has implemented a new rule that all cannabis businesses must understand: the True Party of Interest (TPI) rule.
The TPI rule requires all cannabis businesses to disclose the identities of all individuals or entities that have a financial interest in the business. This includes anyone who owns more than 10% of the business, anyone who has the power to control the business, and anyone who receives a percentage of the profits.
The purpose of the TPI rule is to prevent illegal activity and ensure that all cannabis businesses are operating legally and transparently. By requiring businesses to disclose their true parties of interest, the state can better regulate the industry and prevent any illegal activity from taking place.
The TPI rule also helps to prevent conflicts of interest. For example, if a politician or government official has a financial interest in a cannabis business, they may be more likely to pass laws or regulations that benefit that business, rather than the industry as a whole. By requiring disclosure of all parties with a financial interest, the state can ensure that there are no conflicts of interest that could compromise the integrity of the industry.
It is important for all cannabis businesses to understand and comply with the TPI rule. Failure to do so can result in fines, license revocation, and even criminal charges. In addition, failure to disclose all parties with a financial interest can result in legal and financial consequences for both the business and its owners.
To comply with the TPI rule, cannabis businesses must submit a TPI disclosure form to the state. This form must include the names, addresses, and social security numbers of all parties with a financial interest in the business. In addition, businesses must update their TPI disclosure form within 30 days of any changes to their ownership or financial structure.
In conclusion, the True Party of Interest rule is an important regulation that all cannabis businesses in New York must understand and comply with. By disclosing all parties with a financial interest, the state can better regulate the industry and prevent illegal activity. Failure to comply with the TPI rule can result in serious consequences, so it is important for all businesses to take this regulation seriously and ensure that they are in full compliance.
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- Source: https://zephyrnet.com/new-york-cannabis-the-new-true-party-of-interest-rule/