The New York Marijuana Cultivation License is one of the ten types of licenses included in the newest proposed legislation.

This may be the year for New York’s marijuana legalization. On January 6, Bill S854 was presented to the New York State Senate. This bill seeks to enact the “Marihuana Regulation and Taxation Act”, which would set regulations -among other things- on how to obtain a marijuana business license.

Even though the act is still in the senate committee, some people, including Gov. Andrew Cuomo, appear very optimistic that the legalization of adult-use cannabis is going to be a reality soon enough. In this sense, it’s important for people that want to get into the cannabis industry in New York to start preparing themselves.

The “Marihuana Regulation and Taxation Act” contains provisions for 10 different adult-use licenses. If you want to read about how to apply for one of these licenses, you should check out our “New York Cannabis License Application” post about it. 

In this post, we’ll be focusing on the Adult-use cultivator license which will allow cultivating marijuana in the state of New York under the regulations established by the Act.

What’s New York’s marijuana cultivation license?

The adult-use cultivator license is a legal document that authorizes the acquisition, possession, distribution, and sale of cannabis from the licensed premises of the adult-use cultivator by such licensee to duly licensed processors in the state of New York.

However, according to the Marihuana Regulation and Taxation Act, the New York State Cannabis Control Board may establish regulations allowing the holders of a marijuana cultivation license to perform certain types of minimal processing without the need for an adult-use processor license.

The marijuana cultivation license holder would be permitted but is not limited to the agricultural production practices of:

• Planting
• Growing
• Cloning
• Harvesting
• Drying
• Curing
• Grading
• Trimming

Pursuant to the Act, a person holding a marijuana cultivation license may apply for one processor’s license but will be unable to opt for a retail dispensary license. 

Further, no holder of a marijuana cultivation license shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, or any other means, in any premises licensed as an adult-use cannabis retail dispensary or in any business licensed as an adult-use cannabis retail dispensary or in any registered organization registered pursuant to article three, § 34 of the Act.

Also, a person that holds a marijuana cultivation license can’t hold a license to distribute cannabis nor have a direct or indirect financial or controlling interest in more than one adult-use cultivator license.

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Other types of New York’s cultivation licenses 

Registered organization adult-use cultivator processor distributor retail dispensary license

The Act also establishes another type of license, named the “Registered organization adult-use cultivator processor distributor retail dispensary license”. The owner of one of these licenses shall have the same authorization and conditions as the adult-use cultivator, adult-use processor, adult-use distributor, and adult-use retail dispensary licenses issued pursuant to the Act.

However, the sales of adult-use cannabis and cannabis products cultivated, processed, or distributed by such organizations must be limited to the organization’s adult-use retail dispensaries and the location of such adult-use dispensaries shall be limited to the organization’s medical dispensaries premises and facilities authorized pursuant to article three of the Act.

Further, these organizations must maintain their medical cannabis license and continue offering medical cannabis to a degree established by regulation of the board.

Registered organization adult-use cultivator license

Lastly, the Act establishes the “Registered organization cultivator license”, which would give the same authorization and conditions as an adult-use cultivator license, provided that sales of adult-use cannabis and cannabis products by such organizations shall be limited to licensed adult-use processors and such license does not qualify such organization for any other adult-use license.  

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