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Application process for Cannabis Adult Use Conditional Processor License for New York

Posted July 12th, 2022 By Mukut Chakraborty

How-to-Apply-For-Cannabis-Adult-Use-Conditional-Processor-License-for-New-York

On February 22, 2022, Governor Kathy Hochul signed into law S.8084-A/A.9283-A, and as per law New York state now will provide conditional adult-use cultivator and processor license. The license holders will be able to cultivate, process, and distribute cannabis flower products holding an adult-use processor or distributor license, there are certain conditions to be met, which is why these license are conditional.

As the application period for Adult use conditional cultivation license ended, the Cannabis Control Board opened the application period for Cannabis Adult Use conditional processor license starting from 28th June till 31st August. Similar to Adult use cultivator license eligibility, active cannabinoid hemp processor license-holders are only eligible to apply for the adult-use conditional processor license. So if your name is not on this list, you can not apply.

One of the major aspects of this license is the business need to be GMP compliant as they will have to submit a GMP audit certificate at the time of filling up the application form itself. So in case, you have one, that’s good for you, if not, do get in touch with us. We have 20 years of experience in GMP consulting, we have our own GMP-validated software too. All you have to do is to fill up this form or WhatsApp us here.

But for those who are eligible, we will try to explain the prerequisites, other requirements, the process, ongoing responsibilities, and some FAQs for the Cannabis Adult Use Conditional Processor License application.

  1. Main Eligibility

    1. An active Cannabinoid hemp processor license holder from the office of Cannabis Management. The list is available here.
    2. Any Cannabinoid hemp processor license holder who applied for the license after 1st January is not eligible, i.e. if the Cannabinoid hemp processor license holder had applied for the license before 1st January, then only they will be considered.
    3. The person who will be applying must have more than 51% or more ownership of the Cannabinoid hemp processor license.
  2. Prerequisites

    1. Make sure your facility is GMP compliant. Once you submit an application, your facility will be inspected by the office. If you don’t have a GMP certificate, we can certainly help in this as we have 20 years of experience in GMP consulting.
    2. After you submit your application, you might be asked to perform hydrocarbon extraction activities for which you might need to use volatile solvents. Therefore the proactive measures would be to arrange a letter or equivalent from the local jurisdiction’s fire marshal, local building code authority, or its equivalent stating that the facility is approved to perform such activities and is compliant with all the fire codes and other regulations.
    3. If you have any pending/unresolved litigations, labor law, judicial, administrative, or regulatory violations, it will be better to resolve them first.
  3. Requirements

    These are sets of things that you need to provide at the time of application.

    1. Primary contact details of the applicant
    2. Business Location
    3. Business plan including the proposed Cannabis type(s)
    4. If the applicant is permitted to conduct extraction activities (as mentioned in the prerequisites), details of the proposed extraction method
    5. Compensation verification of the workers
    6. Proof of disability and paid family leave benefits insurance
    7. Proof of GMP audit (as mentioned in the prerequisites). If you need help, you can fill up this form or Whatsapp us, we have 20 years of experience in this.
    8. Ownership details of the applicant, you need to show you have at least 51% ownership of the Cannabinoid license.
    9. Financial disclosure
      • Organizational structure
      • Organizational charts
      • Capitalization table
      • Disclosure of existing or proposed sources of capital
    10. Your active Cannabinoid hemp processor license along with the proof that you applied for the same before 1st January 2022.
    11. The applicant’s attestation and agreement to the applicable terms and conditions, the same can be obtained here. Go through the entire document but only the last page is to be signed and uploaded at the time of application.
    12. Submission of non-refundable license and application fee – $2000.
  4. Process

    The process is entirely online.

    1. Sign in or create an account here.
    2. Fill up all the details mentioned below
      • Introduction – If you have any business listed on the portal, it will show up here. If you can see the business you are applying the license for, select it here, else select “my business is not listed”. Please note if you select an existing business, all previous details will be used.
      • Entity type – select from the dropdown – Individual/Sole proprietor, Partnership, or Corporation
      • Business Identification – All basic details like your name, legal name, EIN or SIN, etc
      • Business Address
        • Physical address – This is the registered business address.
        • Additional physical address – If you have multiple locations, just keep adding them here.
        • Mailing Address – Just make sure you have an established mail box at this address
      • Contact information – your contact details including telephone number, mobile number, email id, website etc.
      • Industry classification – Enter your North American Industry Classification System code. In case you don’t remember, you can check here or here. You should also add any secondary NAICS code in case you have one.
      • Owner/Business Principal
        • Sole Proprietor/ Owner details – If you have multiple owners, add all of them here
          • Title
          • First and last name
          • DOB
          • US Resident – Yes/No
          • SSN
          • Ownership percentage
          • Profit distribution percentage (if different from ownership percentage)
          • Phone
          • Email
          • Residential address
      • Person Authorized to submit this profile – Yes/No
      • Select the authorized person from the dropdown, this will be displayed on the license.
      • Primary contact information – select from the dropdown
      • Eligibility – Read and select yes for both the options
      • Proof
        • Enter the license number
        • Primary Location of the business
        • Upload the license certificate
        • Select type of license
      • Ownership Structure
        • Has a new entity been created for Adult use Cannabis processor license? – Yes / No (this is to understand if the same entity will have the Cannabinoid hemp certificate and adult-use cannabis conditional license)
        • Any unresolved or pending litigation or labor law violations? – Yes/ No, if yes, please provide details
        • Any judicial/administrative/regulatory violations?  – Yes/No, if yes, please provide details.
        • If the owner/applicant or any close relative is convicted of a cannabis offense, that is to be entered here
        • is the entity a new york state-certified minority/women/minority women/service-disabled veteran-owned business?
        • Upload organizational chart
        • Upload a copy of the entity’s capitalization. The table must show the ownership percentage of all owners, they should add up to 100%.
        • Upload all documents related to funding
        • Does this company have any parent companies, subsidiaries, affiliates, or any other predecessors of the applicant – Yes/No
        • Upload a list of names of all the financial entities the applicant or the predecessors has been a part of in the last 3 years
        • Does any of the owners have any interest in any other license in this jurisdiction?
        • Is there any linkage between any employee of the office of Cannabis Management with the applicant? If yes, provide all details.
        • Provide a short business description with all details about the business model (uploading a document is also allowed)
        • Do you intend to white label or co-pack for other cannabis cultivators or processors?
        • Do you intend to use other adult-use processors to white label or co-pack products for other cannabis cultivators or processors?
        • Do you intend to distribute cannabis products to licensed adult-use retail dispensaries?
        • Select the location that will be used for the processing or manufacturing
        • Processing location information – working hours
        • Upload the floor plan of the processing or manufacturing area
        • Control type over this area
          • Ownership
          • Leasing
        • Any other license by state or federal authorities related to the operation?
        • Any other business activities on this premise?
        • Extraction method details
        • Cannabis source information – details or source for cannabis extract
          • Business name
          • Entity type
          • License
          • Country
          • State
          • Telephone
          • Email ID
          • Website
        • Select the Cannabis product Type(s)
        • Do you have worker’s compensation insurance?
        • Are you exempt from worker’s compensation insurance? If yes, please upload.
        • If you have received the worker’s compensation insurance in last 30 days, that is to be uploaded here.
        • Any disability or family leave benefits insurance?
        • Are you exempt from disability or family leave benefits insurance? If yes, the same is to be uploaded.
        • If the disability or family leave benefits insurance exemption is obtained in the last 30 days, a copy of the same is to be uploaded.
        • Do you have a certificate of occupancy authorizing activities allowed under the adult-use conditional processor license? If yes, upload the same.
        • Upload the GMP audit certificate. Don’t have one? We can certainly help. Contact us through this form or Whatsapp us
        • Select the GMP audit standards
        • Date of GMP audit
        • If you have submitted anything so far which is your trade secret (if published publicly will cause harm to your business), that is to be mentioned here so that OCM can consider not publishing it publicly.
        • Did you get help from any legal counsel for the submission of this application?
        • Attestation – name, and initials
        • Download, read, and sign a copy of the terms and conditions and guidance for the adult-use conditional processor license
        • Payment is to be made by a cheque, details will be available at the time of applying, the fee is $2000.
  5. Submit the application

    1. Post this you will get a confirmation on the website as well as receive a mail in your inbox with the application ID which will be used for all future reference.
    2. Best of luck with your Cannabis Adult Use Conditional Processor License.