What to Know About New York’s Conditional Processor License

Lisa
July 8, 2022

Application Window Open from June 28 – August 31, 2022

by Dalton Valette

On Thursday June 23, the New York Cannabis Control Board approved a conditional adult-use processor license and opened an application window for the license. This adult-use conditional processor license is a good bridge for the Board’s license rollout between the previously released adult-use conditional cultivator license for legacy hemp farmers and the upcoming conditional adult-use retail dispensary license for Justice Involved applicants.

But what does the license entail? How long is the window for applying? And can you even apply for it? 

Window for the License

For starters, the window for applications is from June 28 through August 31, 2022.

You can view a helpful application walkthrough guide on the Office of Cannabis Management website hereApplicants will be able to upload all the application materials and information through a portal link accessible here.

Eligibility

This license is not available for everyone, though.

To be eligible for this license, applicants will need to have an existing cannabinoid hemp processor licensee and have applied for such a license before January 1, 2022. Applicants will also have to have at least a 51% ownership in in the cannabinoid hemp processor license. 

Conditional Processor Application Requirements

The conditional licenses approved by the Board has twelve numerated requirements. These are: 

  1. Applicant Primary Contact Information
  2. Applicant Business Location
  3. Description of The Applicant’s Business Plan Including Proposed Cannabis Product Type(s)
  4. If the Applicant is Permitted to Conduct Extraction Activities, the Proposed Extraction Method
  5. Workers Compensation Verification
  6. Proof of Disability and Paid Family Leave Benefits Insurance
  7. Proof of Certificate of Occupancy
  8. Proof of Good Manufacturing Practices (GMP) Audit
  9. Applicant Ownership and Financial Disclosure Information Including Submission of Organizational Structure Documents, Organizational Charts, Capitalization Tables, and Ownership Structures, and Disclosures of Any Sources or Proposed Sources of Capital
  10. Documentation Proving the Applicant is Licensed to Process Cannabinoid or “CBD” Hemp by the Office of Cannabis Management and Applied for Such License Before January 1, 2022
  11. Applicant Attestation and Agreement of the Application Terms and Conditions
  12. Submission of a Non-Refundable License and Application Fee of $2,000

After Conditional Licensure

Once an applicant has been approved by the Board for this conditional license, the license will be good for two years and license holders will have the opportunity to transition to an non-conditional license.

There are two requirements’ applicants must meet for this transition to happen, though. They will need to participate in a mentorship program which provides pathways for social equity applicants and participate in an environmental sustainability program. 

Additional Information

We always recommend attending the Cannabis Control Board meetings which are announced usually a week in advanced and typically take place on Thursdays. You can see agendas and past recordings for meetings here. There will also be Cannabis Advisory Board meetings and likewise these will be available to view live or in the archive here. As well, the Office has published an Adult-Use License Type Fact Sheet which is accessible here

Contact our team of New York licensing experts for help with your license application. Our cannabis license consultants are on the ground in our New York office and ready to help prepare your best application and guide you through the complex process.

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