New York recently legalized marijuana for recreational use. At the beginning of 2021 on January 6, the New York State Senate received Bill S854. Through this bill, the Marihuana Regulation and Taxation Act (MRTA) would be enacted, allowing the state to create and implement regulations for marijuana business licenses.
This, of course, includes the New York Adult Use Cultivator License. But equally important to mention is the New York Adult Use Processor License.
Many believe adult-use cannabis legalization in New York will do wonders for the state. The economic benefits alone are enough to encourage this state to embrace legal cannabis with open arms. But when considering the COVID-19 toll on the state, the decision to permit marijuana for recreational sales and consumption seems to have been made easier.
In this post, we discuss the Adult Use Cultivator License. This is the license that will allow New York to create its legal cannabis marketplace in accordance with regulations in place by the MRTA.
How to Get a Cultivation License in New York
Someone who obtains an adult-use cultivator license in New York has permission to acquire, possess, distribute, and sell cannabis from the licensed property of an adult-use cultivator. These licensees receive licenses from duly licensed processors in New York state.
Equally important to know is that the Marihuana Regulation and Taxation Act states that the New York State Cannabis Control Board has been given the task to create and implement regulations that let marijuana cultivation license holders perform some types of minimal processing activities without demanding an adult-use processor license.
Here’s some of what a cannabis cultivation license holder in New York can do:
The MRTA also states that someone who holds a cannabis cultivation license can apply for a processor’s license. However, they cannot get a retail dispensary license.
Furthermore, someone who holds a cannabis cultivation license cannot have a direct or indirect interest in any businesses licensed as an adult-use cannabis retail dispensary or any properties that are licensed as an adult-use cannabis retail dispensary. Nor can they have interests in registered organizations registered as outlined in article three, § 34 of the MRTA. This includes stock ownership, interlocking directors, personal or real property, mortgage or lien, or any other means.
Other Kinds of New York Cultivation Licenses
Registered Organization Adult-use Cultivator License
The MRTA establishes the “Registered Organization Adult-use Cultivator License,” a cannabis license that gives licensees the same abilities and conditions as an adult-use cultivator licensee, so long as the adult-use cannabis and cannabis product sales by these organizations are solely made to licensed adult-use processors. This license does not allow organizations to hold any other adult-use licenses.
Registered Organization Adult-use Cultivator Processor Distributor Retail Dispensary License
The MRTA also implements the “Registered Organization Adult-use Cultivator Processor Distributor Retail Dispensary License.” Someone who owns this type of license receives the same permissions and conditions as someone who holds adult-use cultivator, adult-use processor, adult-use retail dispensary, and adult-use distributor licenses issued as per the MRTA.
Equally important to know is that limitations as per the organization’s medical dispensaries’ properties and facilities in accordance with the MRTA are placed upon the sales of recreational cannabis and cannabis products that these organizations cultivate, process, or distribute.
All organizations operating with the appropriate license need to maintain their medical cannabis license while simultaneously offering medical marijuana to meet the board’s regulatory demands.
New York Cannabis Cultivation License FAQ
How much is a growers license in NY?
Getting growers licenses in New York involves paying an initial $10,000 non-refundable application fee and a $200,000 biennially renewing registration fee. If the organization is denied registration, the $200,000 is refunded.
How much does it cost to open a dispensary in New York?
Opening a dispensary in New York isn’t cheap; the application for a cannabis producer or dispensary business license in the state costs $210,000. However, keep in mind, if your application is denied, you’ll receive a refund for $200,000 in fees. Then, the license fees cost $200,000 for producer or dispensary licenses in New York every two years.
Do I need a license to sell hemp in New York?
If you plan to operate a business selling hemp to consumers in New York, you’ll need to get a cannabinoid hemp retailer license from the Department.
Any Questions We May Have Missed?
Do you have a question we missed? Feel free to contact us! We are here to help every step of the way. Whether you’re applying for a New York Cultivation License, starting an online cannabis business, or simply have questions about cannabis laws across the country, we have you covered.
Looking to learn more about New York’s cannabis laws and how they relate to setting up shop? Learn how to open a dispensary in New York now.