new york cannabis business lawyerNew York Is accepting applications for Conditional Cannabis Cultivation Licenses.  Under the new Cannabis Law, previously authorized hemp growers operating under the New York State Department of Agriculture and Markets Industrial Hemp Research Pilot Program (the “Pilot Program”), may qualify for an Adult-Use Conditional Cultivator license.  Applications must be submitted online before June 30, 2022.

The pool of eligible marijuana cultivator business applicants is rather limited.  To be eligible for this conditional grow license, applicants must:

1. Have been authorized to grow hemp under the Pilot Program.

2. Be in good standing with the Department of Agriculture and Markets.

3. Have been authorized by Department of Agriculture and Markets to grow cannabinoid or “CBD hemp” (as opposed to growing hemp for grain or fiber).

4. Have grown and harvested cannabinoid or “CBD hemp” for two of the past four years (between 2018 – 2021) and be able to provide the Office of Cannabis Management with proof of same.

5. Hold at least a 51% or more ownership in the business entity that held the industrial hemp grower authorization from Department of Agriculture and Markets.

Lastly, there is a limited canopy for growing cannabis under the conditional license.  Adult-Use Conditional Cannabis Cultivators are authorized to grow up to one acre (43,560 square feet) of cannabis outdoors or 25,000 square feet of marijuana in a greenhouse (with a limit of 20 lights). A cannabis cultivator may also grow a portion of cannabis outdoors or in a greenhouse provided the total canopy is less than 30,000 square feet and the portion of greenhouse marijuana canopy is less than 20,000 square feet. In addition to cannabis cultivation, Adult-Use Conditional Cultivators are authorized to conduct minimal processing of marijuana and cannabis distribution activities of their own cannabis flower products.

The non-refundable application fee is $2,000.  Licenses are valid for two years from the date issuance.  Applicants need to submit their applications through the NY Business Express portal:

Once an applicant is approved for Cannabis Cultivation in New York, the marijuana cultivation facility must meet the numerous compliance regulations as well.  The state is hoping the conditional cannabis licenses will help jump-start small businesses and encourage applicants typically under-represented as business owners (business enterprises owned by minorities, women, disabled veterans, and LGBTQ+ individuals) start one of many types of cannabis businesses in New York.

On March 23, 2022, the Office of Cannabis Management (OCM) published it’s “Adult-Use Conditional Cultivator License Frequently Asked Questions (FAQs)” (click link) explaining the program in more detail.

It is best to discuss your proposed business with a New York Cannabis 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 Cannabis Business Lawyer**

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