Would you like to apply for a New York cultivator license?
New York allows eligible hemp growers to apply for a conditional license to grow cannabis containing over 0.3% THC for the adult-use cannabis market. Also, the New York adult-use cultivation license allows you to operate in more than one location.
The first adult-use conditional license application window ended June 30, 2022. Licenses will be valid for two years, provided all conditions are met, but will expire no later than June 30, 2024.
Our expectations are that another round will open within a year and applications should be similar.
Our cannabis license application writers can help you win a New York cannabis cultivator license.
New York Adult-use Conditional Cultivator License Writers
The article below begins with an overview of the New York cultivator licensing program and the cannabis license application process, followed by a step-by-step guide on how to win an adult-use cultivator business license in New York.
Tips for winning adult-use cultivation licenses in New York
Step 1: Read the Laws and Regulations
To begin with, read the New York state laws and regulations to plan your cultivator business wisely. After doing so, you’ll have a better understanding of the application process and what the Adult-Use Conditional Cultivator license allows your marijuana business to do:
- S.8084-A/A.9283-A: New York State Law regarding the Adult-Use Conditional Cultivator License
- Marijuana Regulation and Taxation Act (MRTA)
In the next section, we’ll discuss applicant eligibility.
Step 2: Determine if you’re eligible
First, to be eligible for an Adult-Use Conditional Cultivator License in New York, an applicant must meet all of the following requirements:
- Be authorized to grow hemp under the Department’s Industrial Hemp Research Pilot Program.
- Be in good standing with the Department and in full compliance with the Cannabis Law. The Applicant must also comply with all current and future state laws, rules, regulations, and guidance.
- In addition, the Applicant must have been authorized by the Department to grow cannabinoid or “CBD hemp” (as opposed to growing hemp for grain, fiber, or industrial purposes).
- Have grown and harvested cannabinoid or “CBD hemp” for two of the past four years (between 2018 – 2021) and be able to provide the Office of Cannabis Management (“the Office”) with proof documenting such activities.
- Hold at least a 51% or more ownership in the entity that held the industrial hemp grower authorization from Department of Agriculture and Markets.
- Participate in a Social Equity Mentorship and in an Environmental Sustainability Program.
- Enter into a Labor Peace Agreement with a bona-fide labor organization, and provide a signed copy to the Office.
- Provide a certified written statement, “Child Support Attestation.”
As you can see, many factors affect eligibility. Our team can help you determine your eligibility and file the necessary documentation.
Next, it’s time to start strategizing with a New York cannabis business consulting firm. We make the licensing process much easier!
Step 3: Engage a consultant
Our Cannabis License Consulting Firm is run by some of the best cannabis application writers in the world. We have already helped several of our clients engage successfully in cannabis-related activities in the state of New York.
First of all, we manage your application from start to finish. We’ll write your business plan, cultivation and site plans, and all technical writing required in your New York cultivator application.
Also, we assist with facility design, lighting and energy plans, cannabis waste and wastewater management, and environmental plans. In addition, we’ll ensure that you have compliant contracts with security vendors and contractors.
Lastly, why risk submitting an application that won’t win you a cultivation license?
Allow our New York Cannabis License Consulting firm manage your application for you. We’ll take care of raising capital, lining up real estate, and working with your municipality to garner support.
Step 4: Form a business entity
At this point, you’ll want to form a legal business entity as defined by the state of New York for your cultivator application. Work with your attorneys to determine the entity type most appropriate for your goals.
We most commonly find cannabis applicants forming limited liability companies (LLC) or corporations for their applications.
Also, you’ll want to understand New York’s definitions of the following:
- Minority-Owned Business
- Women-Owned Business,
- Distressed Farmer, and
- Service-Disabled Veteran
You can find more information on these categories in the Appendix supplied by our New York Cannabis License Consulting firm.
Next, let’s discuss your adult-use cultivator business plan for operations within New York.
Step 5: Develop Business Plan
First, a well-developed business plan is crucial proof to the Board that your entity will safely and successfully cultivate adult-use cannabis for New York consumers.
Also, keep in mind that New York’s cannabis program puts social and economic equity at the forefront of its Cannabis Program. Therefore, your business plan should demonstrate how your business will add to the Office’s initiatives.
As a bonus, a solid business plan makes raising capital a lot easier!
Our cannabis team provides full marijuana business planning services., including:
- Market Analysis
- ProForma Financial Statements
- Executive Summary
Plus, we’ll help you pitch your cultivator business to both local organizations and investors.
Next, we’ll discuss the importance of team-building for your adult-use cultivator entity.
Step 6: Build a team
First of all, the quality of your team is crucial to the success of your cultivator application. The team that you list on your application has a significant impact on whether you receive a license or not.
In addition, the Office wants to see that your team has successful experience in management of previous grow facilities. In addition your team should demonstrate and any other related expertise relevant to your proposed marijuana cultivation.
As part of our New York cannabis license consulting, Quantum 9 offers talent acquisition services. Therefore, we can help you build a dream cannabis team to pivot your hemp grow operations into the adult-use market in New York.
Next, let’s discuss how to best position yourself to the Office by showing proof of your business capital and financial reserves.
Step 7: Raise capital
Transitioning from hemp cultivation to adult-use cultivation requires time and energy. It also requires a lot of money.
In addition, your cultivator application requires that you show proof of your financial means to be a successful in the adult market.
- Applicant Ownership and Financial Disclosure Information
- Organizational Structure Documents
- Organizational Charts
- Capitalization Tables and Ownership Structures
- Disclosures of current sources of capital, OR, your proposed sources of capital.
Also, our cannabis business planning team offers full investor services. We provide investor presentations to help pitch your business to cannabis industry investors.
Then you can raise the capital necessary for a successful cannabis business.
Next, we’ll discuss choosing a location.
Step 8: Choose a location
In this section, we’ll discuss facility location, which is critical to a successful cannabis business.
First, we recommend that you review local ordinances for the locations that you are considering. You’ll need to confirm that the municipality allows your cannabis cultivator operations.
Also, New York gives extra consideration to cultivators located in Disproportionately Impacted Areas.
Lastly, our New York cannabis business consulting firm is highly experienced with New York state cannabis rules and regulations. In addition, we understand the wide variety of municipal ordinances. We can help you choose a location that is compliant and offers the greatest chance of business success.
Next, we’ll discuss gathering local support for your cannabis business ventures.
Step 9: Garner local support
Once you’ve locked down a location, you can begin building support from local organizations and the municipal government. Strong local support will help you score higher on your application. For example, gaining approval from your proposed facility’s neighbors lends strength and credibility to your application.
Acquiring local support shows business credibility, demonstrated investment in the local community, and also helps you to raise capital. Please reach out to us if you’d like to speak with our New York cannabis business consultants about how to accomplish municipal collaboration for your business.
Now, onto the most important step in winning a New York cultivator license!
Step 10: Write and submit your application
Finally, you are ready for the most labor-intensive step necessary to prove the viability of your cannabis business to the Office of Cannabis Management for New York cultivator licensing.
In addition to the proofs of eligibility noted in Step 2 above, you will need to produce the following documents in your cultivator application:
- Applicant primary contact information
- Business location
- Applicant ownership and financial disclosure information
- A cultivation and site plan for each proposed location to grow, harvest, dry, store or handle cannabis, including:
- Floor plans
- diagrams
- GPS coordinates
- Aerial photograph(s) if the premises
- Applicant attestation and agreement of the conditional licenses Terms and Conditions
- Submission of the non-refundable License and Application Fee of $2000
The documentation required is extensive. However, we can help you write and assemble your New York cultivator application from start to finish.
Conclusion on Adult-use Cultivator Licenses
As you can see, it takes time, capital, and energy to start a transform your CBD hemp business into an adult-use cultivator business. Applying for and winning a license is half the battle. However, with an experienced team by your side, you can significantly improve your odds of winning a license.
Finally, schedule a call today to help us learn more about your plans. We’ll be happy to help you win a New York cannabis cultivator license!
Additional Information related to New York cultivation business licenses
Authorized Conduct for Adult-Use Conditional Cultivator licenses:
The license authorizes eligible hemp growers to apply for a license to grow cannabis containing over 0.3% THC for the adult-use cannabis market.
Also, in order to continue cultivating cannabis upon the license expiration of the adult-use conditional cultivator license, the Applicant must apply for an adult-use cultivator license and meet the requirements of that license within a specified time frame as determined by the Office.
Ownership Limitations:
- No Applicant or owner of an Applicant may have a direct or indirect financial or controlling interest in more than one license under the Cannabis Law (unless otherwise authorized).
- Any proposed change in ownership or organizational structure of the Applicant after the issuance of an adult-use conditional cultivator license must be submitted to the Board for review and must receive the prior written approval before becoming effective.
- Also, New York cultivator licensees cannot also hold an adult-use retail dispensary license nor have any direct or indirect interest in an adult-use retail dispensary.
- Finally, at least 51% of the ownership and control of the operations of the Applicant must be held by a previously authorized NYS Department of Agriculture and Markets industrial hemp grower.
Transferring Ownership:
First, no Applicant or owner of an Applicant may transfer all or a majority of its interest in an adult-use conditional cultivator license unless approved by the Board.
In addition, an adult-use conditional cultivator license shall not be leased, assigned, subcontracted, or otherwise alienated, encumbered, or availed, in whole or in part.
Additional resources on cannabis cultivator licenses:
- H.R. 2: Federal Agriculture Improvement Act of 2018 (“Federal Farm Bill of 2018”)
- Department of Agriculture and Markets (“the Department”)
- The Department’s Hemp Licensing Program
- Cannabis Control Board (“the Board”)
- New York State Office of Cannabis Management
- The New York Cannabis Law
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