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Are you considering processing, manufacturing, or extracting flower in the Empire State? With the Office of Cannabis Management (OCM) recently releasing proposed regulations for adult-use licenses, New York is gearing up for a robust cannabis industry. This guide will help you understand the crucial elements of obtaining a New York Cannabis Processor License and navigate the licensing application process.
Key Regulations for Cannabis Processor License in New York
On November 21, the OCM released proposed regulations following the issuance of the first 36 Conditional Adult Use Retail Dispensary (CAURD) licenses to qualified social equity applicants.
New York has designed a two-tier licensing system to separate the production side (B2B) from the retail side (B2C). The exceptions to this rule are the micro licenses, which must be vertically integrated. However, holders of Adult-Use New York Cultivator Licenses can also hold a Processor and a Distribution License, offering versatility for entrepreneurs interested in multiple segments of the industry.
Before you begin, identify the activities you plan to conduct and the products you aim to produce. Note that a Processor License can’t be combined with retail or consumption lounge licenses, as per New York State regulations.
The Cost of a Cannabis Processor License in New York
For all types of Adult-Use and Cooperative Licenses, the application fee is $1,000. For Retail Operator Dispensary (ROD) and Retail Operator Non-Storefront Dispensary (ROND) licenses, the fee is $10,000. If you qualify as a social and economic equity applicant, you might qualify for a 50% reduction, waiver, or deferred fee, supporting social equity in the industry.
Cannabis Licensing Application Guide
To apply for a license, you must fulfill several requirements:
- You must be 21 years of age or older.
- You must not have any disqualifying criminal convictions.
- You must be a resident of New York.
- A business plan is required.
- You must be the leaseholder or owner of the property-zoned location.
- Submit your bank statement.
- Provide your driver’s license or a supplementary identification form.
- Your facilities or sites must be certified for Good Manufacturing Practices. The level of certification depends on the products you intend to produce.
What Happens After Submitting Your Application?
After submitting your Adult-Use Processor License application, the OCM will review it and may request additional documents or information. Upon approval, you will be issued a license to operate in New York.
What Are The Approved Activities?
With an approved Adult-Use Processor License, you may:
- Purchase flower
- Process flower extracts
- Carry out physical extraction
- Manufacture flower-based products
- Package your products
- Sell to licensed distributors after packaging
- Purchase from a Cultivator License Holder or apply for a Cultivator License
However, you may not apply for or hold a Retail License or a Consumption Lounge License.
