Several states have legalized marijuana use in the last few years. Ever since New York approved marijuana use in March 2021, there has been rapid growth in the entire marijuana industry. The legalization of recreational marijuana under the Marijuana Regulation & Taxation Act (MRTA) offers numerous opportunities for businesses and individuals to get cannabis licenses in NY.
There\’s so much to learn about the requirements, regulations, compliance, and different types of licenses available. For entrepreneurs looking to launch cannabis businesses in New York, staying up-to-date with the evolving laws will guide you through the cannabis license application process. Besides, any New Yorker who seeks to know their responsibilities and rights regarding marijuana requires a solid understanding of the state\’s new regulations. In this guide, we\’ll explore how to get a New York marijuana grow license and much more.
Types of New York Marijuana Licenses and Micro-Licenses
Opening a successful cannabis business involves numerous decisions. One of the crucial decisions at the beginning of the process is which licenses you should apply for. It will depend on your specific goals. Besides growing marijuana, you might want to manufacture marijuana products, distribute or sell them, or create a spot to consume them.
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Although the documentation requirements differ with each license type, all licenses require a thorough review from the state\’s Office of Cannabis Management (OCM). The following are examples of adult-use license types in NY:
Adult-use Cultivator
An adult-use cultivator license authorizes the purchase and possession of cannabis for cultivation, distribution, and personal use. You can sell cannabis from a cultivator to a certified processor. However, a cultivator shouldn\’t own more than a single license and can\’t possess a cannabis retail license.
Adult-use Nursery
A nursery license allows you to legally produce, distribute, and sell clones, immature seeds, plants, and other agricultural products that approved cultivators, microbusinesses, co-ops, or registered organizations use to plant, propagate, and cultivate cannabis. An adult-use cultivator may hold one nursery license.
Adult-use Processor
An individual with a processor license can buy, possess, process, and sell marijuana products from licensed adult-use cultivators\’ facilities to approved distributors. You cannot hold more than one adult-use processor license. A processor may also obtain a distributor license for the sole purpose of distributing their products. A processor isn\’t authorized to own a cannabis retail tier license.
Adult-use Distributor
Individuals with a distributor\’s license can buy, keep, distribute, and sell cannabis from the licensed premises of a certified adult-use processor, microbusiness, cooperative, or registered organization to licensed retail dispensaries, adult-use delivery licensees, and on-site consumption sites. You cannot hold more than one adult-use distributor license. A distributor cannot possess a cannabis retail license.
Adult-use Cooperative
An adult-use cooperative licensee can buy, keep, grow, process, and sell marijuana from the certified premises of an adult-use cooperative to certified distributors, registered organizations, on-site consumption sites, or retail dispensaries. However, they cannot sell directly to marijuana purchasers. You can hold up to one adult-use cooperative license. A cooperative may not possess a cannabis retail license.
Adult-use Retail Dispensary
An adult-use dispensary license holder can buy, keep, sell, and deliver marijuana from a certified retail dispensary. The law allows up to three retail licenses per person. Retail licensees are not allowed to own a license in the distribution, processing, or cultivation tiers.
Adult-use Microbusiness
Such a license authorizes you to grow, process, distribute, sell, and deliver adult-use marijuana on a limited scale. The law allows only one microbusiness license per person. A microbusiness cannot hold another type of adult-use license.
Adult-use Delivery
Holding a delivery license allows you to deliver marijuana and its products to adult-use marijuana consumers. The law only permits one delivery license per person. A delivery licensee cannot hold a different type of adult-use license.
Adult-use On-site Consumption
It permits the acquisition, possession, and sale of marijuana to consumers for use at an approved on-site consumption location. The law permits up to three on-site consumption licenses per person. Licensees are also not allowed to hold a license in the distribution, processing, or cultivation tiers.
Registered Organization Adult-use Cultivator Processor Distributor Retail Dispensary
A registered organization requires this license to obtain similar privileges to adult-use cultivator, distributor, processor, and retail dispensary licensees. A registered organization cannot own any other adult-use license type.
Registered Organization Adult-use Cultivator Processor Distributor
A registered organization requires this license to obtain similar privileges to adult-use cultivator, distributor, and processor licensees. A registered organization cannot own any other adult-use license type.
License Requirements
You need to get an adult-use cultivator license from New York\’s Office of Cannabis Management (OCM) to grow marijuana legally in NY. You must meet the following requirements to apply for a New York state license to grow marijuana:
- Have a good record with the Department of Agriculture and Markets.
- Approved by the Department of Agriculture and Markets Industrial Hemp Research Pilot Program to grow hemp.
- Permitted by the Department of Agriculture and Markets to grow CBD hemp or cannabinoids rather than growing hemp for fiber or grain.
- Permitted to grow and harvest CBD hemp or cannabinoid for at least two of the last four years and possess proof documents.
- Hold 51% or more ownership in the organization that the Department of Agriculture and Markets approved to grow industrial hemp.
New York state also requires marijuana growers to comply with the post-application and ongoing obligations.
These may include:
- Operating plan. You need to submit a business Operating Plan as specified by the OCM within six months of obtaining a cultivation license.
- Cultivation report. You must provide the Office with an Annual Cultivation Report one year after issuance.
- Inspection. The Office can inspect your cannabis grow facilities.
- Sampling and testing. The Office (or designated party) can randomly sample all raw cannabis products. The Office might provide new sampling and testing regulations and guidelines.
- Traceability. You must have an on-site identification and traceability system before the growing season begins. The system will allow monitoring of the cannabis product from its production stages to distribution.
- Mentorship program. You must also engage in a social and economic equity mentorship program. The Office will highlight program rules and regulations. A cultivator might need to participate in various activities like mentorship activities, pre-program surveys, and related data reporting.
When Does the License Expire?
An adult-use cultivator license lasts for two years upon issuance. Renewing your license before it expires will allow you to continue growing marijuana in NY. The process involves submitting a renewal application, paying a renewal fee, and complying with all OCM\’s requirements and standards.
Your license will be valid until June 30, 2024, if you\’re an eligible hemp farmer with a conditional cultivation license. It\’s a temporary license that authorizes hemp farmers to cultivate, harvest, and sell cannabis plants for a term of two years. So, as a licensee, you must get a regular adult-use cultivation license before the expiry date if you want to continue growing cannabis for the recreational market.
How do I get a License to Grow Hemp in New York?
You\’ll need to apply to the New York State Department of Agriculture and Markets if you seek to grow hemp for grain, fiber, CBD, or other purposes. The common types of commercial licenses include:
- Hemp Grower License. It permits the growth, cultivation, and management of hemp products for the market. The license expires in three years.
- Nursery Grower License. It allows the sale of rooted hemp seeds or plants for a term of two years.
- Hemp Seed Retail License. It permits the sale of hemp seeds and is valid for three years.
It\’s worth noting that completing an FBI Identity History Summary Check is also part of the application process. Once you get your New York State license to grow marijuana, you\’ll need to keep up with recordkeeping, reporting, sampling, and testing requirements.
Conclusion
Being a cannabis grower in New York is an exciting and promising journey. The process might seem challenging, but you can successfully navigate the cannabis industry with solid knowledge and preparedness. Cannabis entrepreneurs in this Empire State have a green and bright future. Still, they must stay up-to-date about any laws or modifications to the licensing procedure.
At Moduulize, we dedicate ourselves to ensuring compliance by seamlessly integrating with state regulatory systems. We\’re closely monitoring any updates in New York\’s regulations. Besides our valuable resources, we offer state-of-the-art New York grow rooms uniquely designed to meet your needs for cannabis cultivation. We deliver, set up, and install marijuana grow rooms worldwide, including in all states where recreational marijuana has been legalized, including New York, New Jersey, Florida, Massachusetts, Connecticut, Delaware, Maine, and more.
Our innovative solutions ensure efficiency, sustainability, affordability, and optimal plant development. Learn more about our grow rooms here, or contact us today at +1.646.612.7734 for any questions or comments.
Wishing you success in cultivating marijuana!
Sources:
- https://www.wolterskluwer.com/en/expert-insights/how-to-get-a-marijuana-license-in-new-york
- https://cannabis.ny.gov/licensing
- https://www.suretybondsdirect.com/educate/understanding-new-york-cannabis-licenses
- https://moriconiflowers.com/how-to-get-your-new-york-cannabis-business-license/
- https://www.cannabisindustrylawyer.com/new-york-cannabis-license-application/
- https://cannalawsolutions.com/how-to-apply-for-a-new-york-cannabis-license/
- https://www.jdsupra.com/legalnews/new-york-on-the-fast-track-for-cannabis-6960569/
- https://box4grow.com/blog/
- https://cannabis.ny.gov/adult-use-conditional-cultivator
- https://newyorkstatecannabis.org/licensing/cultivation
