New York Cannabis License Types
New York is offering five primary types of adult-use cannabis licenses. Starting October 4, 2023, the applications for adult-use cultivator, processor, distributor, microbusiness, and retail dispensary license types will be available on New York Business Express (NYBE).
Businesses with adult-use conditional cultivator (AUCC) and processor (AUCP) licenses will also be able to apply to transition to nonconditional adult-use cultivator and processor licenses through NYBE. More information will be made available by the Office of Cannabis Management regarding Registered Organization with Dispensing (ROD) and Registered Organization Non-Dispensing (ROND) licenses.
Cultivator
The adult-use cultivator license authorizes its holder to cultivate and sell cannabis from the licensed premises of the adult-use cultivator to a duly licensed processor, microbusiness authorized to process cannabis, cooperative or collective, Registered Organization with Dispensing (ROD), Registered Organization Non-Dispensing (ROND), or a cannabis research licensee in New York State. Licensed cultivators grow the cannabis that will be used to make safer lab-tested cannabis products in the adult-use cannabis market.
Cultivators who wish to process their own cannabis products must obtain an adult-use processor license.
Businesses that have an adult-use cultivation license are authorized to:
- Grow, clone, harvest, dry, cure, grade, and trim cannabis plants, and
- Sell such cannabis to a processor, or process cannabis products under their own processor license.
APPLICATION & LICENSE FEES
Cultivators are licensed by canopy type. Adult-Use Application Fee: $1,000
Processor
The adult-use processor license authorizes the acquisition, possession, extraction, blending, infusion, packaging, and labeling of cannabis products based on the activities authorized for the processor. Licensed processors produce adult-use cannabis products for sale to licensed distributors. Processing must occur in accordance with good manufacturing practices as appropriate for the product being made, and each lot of products must be tested by an independent third-party laboratory that is permitted by the Cannabis Control Board to ensure products meet the required laboratory testing standards.
Businesses that have an adult-use processor license are authorized to:
- Extract, blend, infuse, package, label, brand or otherwise manufacture concentrated cannabis or cannabis products, based on their licensing authorizations;
- Obtain cannabis from adult-use cultivators, microbusinesses, ROD, ROND, or other licensed processors;
- Sell cannabis products to adult-use distributors.
- Processing does not include the cultivation of cannabis.
APPLICATION & LICENSE FEES
Application Fee: $1,000
Extracting, Infusing and Blending, and Packaging, Labeling and Branding: $7,000 per premises
Infusing and Blending, Packaging, Labeling and Branding: $4,000 per premises
Packaging, Labeling and Branding Including for the Exclusive-Performance of White Labeling Agreements: $2,000 per processing premises (if applying as a Tier 1 or Tier 2 of any cultivation type, the processor license fee shall be $500 per premises. Licenses exclusively entering white labeling agreements pay one licensing fee.)
Distributor
Adult-use distributor licenses authorizes the distribution of wholesale cannabis products to adult-use retail dispensaries, Registered Organizations with Dispensing (ROD), and on-site consumption licensees. Distributor licenses are a critical link connecting the cannabis supply chain and bringing New York cannabis products to customers.
Businesses that have an adult-use distributor license are authorized to:
- Obtain cannabis products from duly licensed cultivators, processors, microbusinesses, cooperatives, Registered Organization with Dispensing (ROD), or Registered Organization No Dispensing (ROND); and
- Sell cannabis products or transport cannabis to licensed adult-use retail locations.
APPLICATION & LICENSE FEES
Adult-Use Application Fee: $1,000
Adult-Use Distributor License Fee: $7,000 per premises (if a distributor also holds a processor license, fee reduced to $2,500)
Dispensaries
Adult-Use retail dispensaries are the principal license to conduct retail sales of adult-use cannabis products to consumers over twenty-one (21) years old. Retail dispensaries are allowed to acquire, possess, sell, and deliver adult-use cannabis products from from their own licensed premises and licensed distributors, in addition to other select items including paraphernalia. Licensed retailers provide an environment for consumers to become informed about and purchase adult-use cannabis products grown, processed, and lab tested in New York State.
APPLICATION & LICENSE FEES
Adult-Use Application Fee: $1,000
Adult-Use Retail Dispensary License Fee: $7,000
Limited Retail Consumption Facility (LRCF): $3,000 (in addition to the $7,000 retail dispensary licensee fee)
Microbusiness
The adult-use microbusiness license authorizes the cultivation, processing, distribution, retail sale and delivery of the licensee’s own cannabis products. An adult-use microbusiness must engage in cannabis cultivation and at least one additional licensed activity including processing, distribution, or retail sale. A microbusiness must locate its retail premises near its cultivation location, but the required distance is based on whether the microbusiness cultivation premises is located in or outside of New York City.
Depending on the authorizations requested during the application process, microbusiness license holders are authorized to conduct some (or all) of the following activities:
- Cultivate cannabis in a canopy that is either: indoors (up to 3,500 ft2), in mixed light (up to 5,000 ft2), outdoors (up to 10,000 ft2), or in a combination of outdoors and mixed light (up to 5,000 ft2 outdoors and up to 2,500 ft2 mixed light);
- Operate a processing facility to manufacture cannabis products;
- Purchase up to 500lbs of cannabis biomass (or the extract equivalent) per calendar year from a licensed cultivator, microbusiness, cooperative or collective, Registered Organization with Dispensing (ROD) and Registered Organization with No Dispensing (ROND);
- Process up to 1,700 pounds of cannabis biomass per year into cannabis products (unless all the biomass is cultivated solely by the microbusiness exclusively at its licensed premises, then there is no processing limit); • Sell cannabis to a duly licensed processor;
- Sell cannabis products it has produced to a duly licensed distributor;
- Distribute self-produced cannabis products to retail dispensaries and on-site consumption premises;
- Deliver a microbusinesses cannabis products to cannabis consumers;
- Be a Cannabis Event Organizer; and
- Sell cannabis products directly to consumers from the microbusinesses retail premises.
APPLICATION & LICENSE FEES
Adult-Use Application Fee: $1,000
Adult-Use Microbusiness License Fee: $4,500
New York Cannabis License Process and Scoring Criteria
New York Cannabis License Requirements
Cannabis licenses are awarded by having a complete and well written application and all required supplemental documentation as well as city approval. An applicant’s criminal history also comes into play as well as past taxes of the owner/directors of the company. And of course, sometimes there is a required proof of capitalization — i.e. proving that you will have enough money in the bank to build out and run your business.
In highly competitive states such as Illinois or New York, there is a scoring process for an extremely limited number of available licenses. Licenses will be awarded to only the best of the best submissions. It is highly suggested that you hire an agency that can provide you with an “above and beyond” application submission.
Eligibility for a Cannabis License in New York
To apply for a marijuana license in New York, applicants must meet several qualifications and eligibility requirements necessary to receive a license. Each applicant must be 21 years of age or older and is required to undergo a criminal background check.
Application Requirements for Marijuana Licenses in New York
To apply for a cannabis business license, you must show compliance with New York laws and local ordinances. To illustrate your commitment to the process, hundreds of pages of technical writing may be necessary.
Some of the necessary documentation includes the following:
- License Application (Required Measures and/or Exhibits). A well written application will need to be written in lockstep with the State Regulations for each Exhibit/measure.
- Business Plan. Including executive summary, mission statement, market analysis, 5 to 7 year business life-cycle timeline with expansion events. Products and services, management and staff, SWOT analysis, quality assurance and compliance.
- Financials. Full 5 to 7 year financial projections, income statement, balance sheet, statement of cash flows.
- Operations Manuals, Exhibits and SOP’s such as:
- Inventory and Record Keeping/Diversion
- Quality Assurance Manuals
- Operations Manuals/Procedures for cultivation, processing, dispensary, lab testing, transportation
- Transportation and Distribution Plan
- Employee, Staffing and Training Manuals
- Social and Economic Impact/equity plans/community outreach plan
- Environmental Plans with water and electrical usage plan/manual
- Chemical and Pesticide Storage Plans
- Waste Disposal Procedures
- Accounting and Tax Compliance
- Hemp Research Plan
- Sanitation and Maintenance Plans
- Odor Control Plan
- Patient/Customer Education Manuals (mainly for dispensary/retail)
- Labor/Union Compliance Agreements
- Training Manuals. New Leaf will design manuals to your specifications, along with state regulations, for all cannabis business models
- Regulatory Compliance Manuals. These explain all the different regulatory compliance regulations, such as quality assurance, product recall, packaging and labeling, advertising, hours of operation, patient and/or customer purchase limits, staffing and training, inventory and record keeping, security, tax payment and insurance compliance.
- Security Plan. Video Surveillance, Alarm System, Emergency Procedures.
- Floor Plans, Blueprints. To-Scale, with Security Overlays. Floor plans of the entire facility.
- Corporate Structuring. Social Equity Certification and Registration, LLC and Corporation Registration and FEIN filing, Operating Agreements, Capitalization Tables, Shareholder Rights and Regulations Consultation, Corporate Bylaw Strategy.
Post Licensure Support. New Leaf serves as a liaison between you, your company, and the State Licensing Commission to help you get through the application evaluation. The State, no matter how good your application is, most definitely will have follow up questions and requests for additional documentation and/or information.
Denial Appeal. Denial appeal is also part of the Post Licensure Support.
