Would you like to apply for a New York Processor license? The Cannabis Control Board approved the application window for Conditional Adult-Use Processors beginning June 28, 2022 and it will remain open until August 31, 2022.
Let our cannabis license application writers help you pivot your hemp processor business to adult-use and win a license. These conditional adult-use processor licenses will be the first-to-market.
New York has already licensed several hundred cultivators, with more licenses pending. Therefore, let us help you win a processor license and put you first in line to process the upcoming Fall harvest!
New York Processor License Application Writers
The article below begins with an overview of the New York conditional adult-use cannabis processor licensing program and the cannabis license application process, followed by a step-by-step guide on how to win one of these processor business licenses in New York.
Regulated by the N.Y. State Office of Cannabis Management, this license allows you to process hemp into several different CBD products. These include: edibles and tinctures, oils and topicals, pills, capsules, and beverages.
Tips for winning adult-use processor licenses in New York
Step 1: Read the Laws and Regulations
First, read the New York state laws and regulations to thoroughly plan your business transition from previous CBD hemp processing to an adult-use processor business. After doing so, you’ll have a better understanding of the application process and what the Adult-Use Processor license will allow you to do:
- S.8084-A/A.9283-A: New York State Law regarding the Adult-Use Conditional Processor License
- Marijuana Regulation and Taxation Act (MRTA)
Next, you’ll want to make sure that you are eligible for one of these lucrative adult-use processor licenses.
Step 2: Determine if you’re eligible
First of all, OCM requires that you must already be a licensed Cannabinoid Hemp Processor, OR, have applied for that hemp processor license before January 1, 2022.
An individual (sole proprietor), or business (trust) must do the following to be eligible for a New York processor license:
- 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 and certify a written statement: Child Support Attestation.
- The Cannabinoid Hemp Processor entity that is applying for the conditional license must have a 51% ownership interest in the entity to be licensed.
In addition, applicants must pay a non-refundable $2,000 Application and Licensing Fee to complete their application submission.
Next, start strategizing with a New York cannabis business consulting firm.
Step 3: Engage a consultant
Our New York processor licensing team is run by some of the best cannabis business 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.
Managing your application from start to finish, we’ll write your business plan, operating plan, and all technical writing requirements of the application. In addition, we’ll ensure that you have compliant contracts with security vendors and contractors.
Lastly, we assist with executive coaching, team recruitment, facility selection, facility design, lighting and energy plans, cannabis waste and wastewater management, environmental plans, and supplier agreements, including compliant state procurement contracts.
Allow our New York Cannabis License Consulting firm to manage your application for you. We’ll take care of raising capital, lining up real estate, and working with your municipality to garner support.
Therefore, reach out today to learn more about how we can help you become a cannabis business owner in New York.
In the next section, we’ll discuss the steps involved in forming a business entity for your processing activities.
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 processor application. In your application, you will need to detail your ownership structure.
Therefore, keep in mind the following required information when forming your business entity:
- Have you created a new entity for the Adult-Use Conditional processor license that is different from your entity authorized to process cannabinoid hemp?
- Do either entities (if applicable) have any pending or unresolved litigation or labor law violations? You must include any and all litigation involving any owners, officers or directors.
- Has either entity been party to any judicial or administrative proceedings, or received any regulatory violations or fines?
- Has any owner, or close relative of an owner, been previously convicted of a cannabis offense?
- Is your entity New York State certified for any of the following types of businesses?
- Minority Owned Business
- Minority Woman Owned Business
- Service Disabled Veteran Owned Business
You can find more information on these categories in the Appendix supplied by our New York Cannabis License Consulting firm.
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.
Next, we’ll discuss the importance of a detailed business plan.
Step 5: Develop your Business Plan
First, a well-developed business plan is crucial proof to the Board that your entity will safely and successfully produce adult-use cannabis products for New York consumers.
Equally important and central to New York’s cannabis program, your business plan should demonstrate how your business will add to the Office’s social and economic equity program initiatives. In addition, 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 processor business to both local organizations and investors.
Within your processor business plan, you should demonstrate your proposed business activities to help the Office understand your plans:
- Where you will obtain cannabis or cannabis extract?
- What extraction or manufacturing process will you use?
- What types of products you intend to make? For example, will you make intermediary products or a finished cannabis product ready for retail sale?
- Will you white-label or co-pack products for other cannabis cultivators or processors? And/or will you use another adult-use processor to white-label or co-pack your products?
- Do you intend to distribute cannabis products to licensed Adult-Use Retail Dispensaries?
Next, we’ll discuss the importance of team-building for your adult-use processor entity.
Step 6: Build a team
First of all, the quality of your team is crucial to the success of your application. The team that you list on your conditional adult-use processor application has a significant impact on whether you will receive a license or not.
New York wants to see that your team has experience in business management, the cannabis industry itself, and related expertise relevant to the operation of processing marijuana into products for human use and consumption.
Also, our New York cannabis business consulting firm offers talent acquisition services. We can help you build a dream cannabis team for your adult-use processing business in New York.
Next, let’s discuss the necessity of raising capital, and showing proof of capital.
Step 7: Raise capital
First of all, transitioning your licensed hemp production business to adult-use production requires time, energy, and experienced business acumen. It also requires a lot of money.
To this end, work with our New York cannabis license experts. We’ll help you pitch your business to cannabis industry investors. Then you can raise the capital necessary for a successful cannabis business.
In your application, you will need to supply the following documents:
- Applicant Ownership and Financial Disclosure Information
- Organizational Structure Documents
- Organizational Charts
- Capitalization Tables and Ownership Structures
- Disclosures of any current sources, OR, proposed sources of capital.
Next, we’ll discuss choosing a location. In fact, this is one of the most critical aspects to a successful cannabis license application.
Step 8: Choose a location
In this paragraph, we’ll discuss the importance of facility location.
First, you must identify a location for your proposed cannabis business. 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 processor activities.
Secondly, your facility must comply with state laws and local ordinances, including appropriate zoning.
Also, keep in mind that New York gives extra consideration to processors located in Disproportionately Impacted Areas. You can find a map showing these locations in the Appendix produced by our New York Cannabis License Consulting firm.
Lastly, we can help you choose a location that is compliant and will help you achieve the highest scores on your application. Please reach out to us if you’d like to speak with our cannabis license application writers.
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 processor 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 for New York processor licensing.
In addition to the proofs of eligibility noted in Step 2 above, you will need to produce the following documents to complete your processor application:
- Applicant Primary Contact Information.
- Applicant Business Location.
- Description of The Applicant’s Business Plan Including Proposed Cannabis Product Type(s).
- If the Applicant Is Permitted to Conduct Extraction Activities, the Proposed Extraction Method.
- Workers Compensation Verification.
- Proof of Disability and Paid Family Leave Benefits Insurance.
- Certificate of Occupancy.
- Good Manufacturing Practices (GMP) Audit proof.
- Applicant Ownership and Financial Disclosure Information, including submission of Organizational Structure Documents, Organizational Charts, Capitalization Tables and Ownerships Structures, and Disclosure of Any Sources, or Proposed Sources of Capital.
- Documentation Proving the Applicant is Licensed to Process Cannabinoid Or “CBD” Hemp By the Office Of Cannabis Management and Applied For Such License Before January 1, 2022.
- Applicant Attestation and Agreement of the Application Terms and Conditions.
- Submission of a Non-Refundable License And Application Fee Of $2,000.
As you can see, the documentation required is extensive, but we can help you write and assemble your New York processor application from start to finish. With an experienced team by your side, you can significantly improve your odds of winning a license.
Conclusions on New York processor licensing
It takes time, capital, and energy to start a transform your CBD hemp processing business into an adult-use processor business. in New York. Applying for and winning a license is half the battle. With a team of experienced cannabis consultants on your side, you can significantly improve your odds of winning a license.
Schedule a call today to help us learn more about your plans. Let our New York cannabis license writers help you transition your lower THC hemp business to win one of the licenses for adult-use THC processing. We can save you time and money.
Additional Information related to New York processor licenses
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).
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 hemp processor.
Any proposed change in ownership or organizational structure of the Applicant after the issuance of an adult-use conditional processor license must be submitted to the Board for review and must receive the prior written approval before becoming effective.
Transferring Ownership:
- First, no Applicant or owner of an Applicant may transfer all or a majority of its interest in an adult-use conditional processor license unless approved by the Board.
- In addition, an adult-use conditional processor license shall not be leased, assigned, subcontracted, or otherwise alienated, encumbered, or availed, in whole or in part.
Additional resources on cannabis processor licenses:
- H.R. 2: Federal Agriculture Improvement Act of 2018 (“Federal Farm Bill of 2018”)
- New York State 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 Office”)
- The New York Cannabis Law
