Governor Kathy Hochul signed legislation this morning, creating a new Conditional Adult-use Cannabis Cultivator license, providing a pathway for existing New York hemp farmers to apply for a conditional license to grow cannabis in the 2022 growing season for the adult-use cannabis market. Conditionally licensed cannabis farmers must meet certain requirements, including safe, sustainable and environmentally friendly cultivation practices, participation in a social equity mentorship program, and engagement in a labor peace agreement with a bona fide labor organization.
With a conditional adult-use cannabis cultivation license, farmers can grow outdoors or in a greenhouse for up to two years from the issuance of the license. It also allows them to manufacture and distribute cannabis flower products without holding an adult-use processor or distributor license, until June 1, 2023.
There is a canopy limit. Cultivators are limited to one acre (43,560 sq. ft.) of flowering canopy outdoors or 25,000 square feet in a greenhouse and can use up to 20 artificial lights. They can also split between outdoor and greenhouse grows with a maximum total canopy of 30,000 square feet as long as greenhouse flowering canopy remains under 20,000 square feet.
The OCM will be developing a license application process and opening the program as soon as possible. To qualify for an Adult-use Cannabis Conditional Cultivator License an applicant must have been (i) an authorized industrial hemp research partner for the Department of Agriculture and Markets, (ii) cultivating hemp for its non-intoxicating cannabinoid content for at least two of the past four years and (iii) in good standing as of December 31, 2021, when the research program ended.
Holders of the license must also participate in a social equity mentorship program where they provide training in cannabis cultivation and processing for social and economic equity partners, preparing them for potential roles in the industry. Growers will also have to meet sustainability requirements to ensure the cannabis is grown in an environmentally conscientious way.
It is best to discuss your proposed business with a New York Canna Business Lawyer. Please feel free to contact us if we can be of any assistance or answer any questions.
**This post is for informational purposes only, For legal advice, contact a Canna Business Lawyer**
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