Application Process for a Cannabis Processor Adult-Use Conditional License in 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 licenses. 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 the Adult-Use Conditional Cultivator License ended, the Cannabis Control Board opened the application period for the Cannabis Adult-Use Conditional Processor License, running from June 28 through August 31. Similar to the Adult-Use Cultivator License eligibility, only active cannabinoid hemp processor license holders are eligible to apply for the Adult-Use Conditional Processor License.

In this guide, we walk through the prerequisites, requirements, and application process for the Cannabis Adult-Use Conditional Processor License, so eligible businesses know exactly what to prepare before they begin.

What is the Adult-Use Conditional Processor License?

The Adult-Use Conditional Processor (AUCP) license lets businesses that are already licensed to process cannabinoid hemp under New York's Cannabinoid Hemp Program apply for a license to process adult-use cannabis products in the Adult-Use Program. In practice, it gives established hemp processors an early path into the recreational cannabis market while the state builds out the broader licensing framework.

Under the license, processors are permitted to process cannabis products containing over 0.3% THC for the Adult-Use Cannabis Program. The license also allowed licensees to distribute cannabis products to duly licensed adult-use retail dispensaries for a limited time. After that window, processors wanting to continue distributing had to apply for a separate distributor license.

Who is eligible to apply?

Eligibility is narrow by design. To apply for the Adult-Use Conditional Processor License, you must meet the following:

• You must be an active Cannabinoid Hemp Processor license holder with the Office of Cannabis Management.
• Only license holders who applied for their cannabinoid hemp processor license before January 1 are eligible.
• The person applying must have 51% or more ownership of the cannabinoid hemp processor license.
• Your facility must be GMP compliant. Once you submit an application, the Office will inspect your facility.

If you don't have a GMP certificate, we can help. Contact us through this form.

Before you begin

The application asks for a wide range of business, facility, insurance, and compliance details, and several items require documents to be uploaded. Gathering these ahead of time makes the process far smoother. Below is what the application covers.

Application Requirements

• 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 the 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.
• 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.

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.

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