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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 with an adult-use processor or distributor license will have the ability to cultivate, process, and distribute cannabis flower products. However, certain conditions must be met for these licenses, which is why they are considered 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. Only Cannabinoid hemp processor license holders who applied for the license before January 1st are eligible.
    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, the office will inspect your facility. 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. Upon application submission, you may be required to conduct hydrocarbon extraction activities that involve the use of volatile solvents. In such cases, it is advisable to take proactive measures, including obtaining a letter or equivalent documentation from the local jurisdiction’s fire marshal, local building code authority, or equivalent authority. Ensure that the documentation obtained confirms that the facility has received approval to conduct the activities and complies with all applicable fire codes and 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 the business you are applying for the license is visible, please select it from the options provided. If the business is not listed, select “my business is not listed.” Keep in mind that selecting an existing business will result in the utilization of previously provided details.
      • 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.
        • Please provide information regarding any convictions for cannabis offenses involving the owner/applicant or any close relative.
        • Is the entity certified by the state of New York as a minority-owned, women-owned, minority women-owned, or 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 included any trade secrets in your submissions that, if made public, would harm your business, please specify them here. OCM will take this into consideration and ensure that such sensitive information is not published 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. Afterward, you will receive a confirmation on the website and receive an email in your inbox containing the application ID. This unique ID will serve as a reference for all future correspondence and inquiries.
    2. Best of luck with your Cannabis Adult Use Conditional Processor License.