By Simon Malinowski, Attorney at Harris Bricken
Continuing our series on New York’s cannabis rules and regulations, we’re breaking down everything you need to know about New York’s cannabis processor licenses (check out our other posts in the series here, here, here, and here). Because there is so much information packed into the regs, we’re doing this FAQ style.
There are several different processor license types, which can be combined with a cultivation and/or distribution license. The processor license types are:
All processor licensees are authorized to acquire, possess, and sell cannabis from a licensed cultivator to duly licensed processors and distributors. These are the allowable cannabis product types:
The regulations prohibit numerous product types:
Yes! If the products is in an orally ingestible form, the maximum potency is 10 mgs of total THC per serving and 100 mgs total THC per package. Tinctures must comply with the 10 mg THC per serving limit, but can have up to 1,000 mg total THC per package.
Yes, a processor license and one distributor license. A processor or its true parties in interest (TPIs) can also be TPIs of a cultivator, distributor, cooperative, microbusiness, or ROND license.
Non-ownership interests (i.e., landlords, financiers, or goods and services providers) are permitted for processor licensees, but no direct or direct interests are permitted for retail dispensaries, on-site consumption, delivery, ROD, ROS, or cannabis laboratory licensee or permittees.
It depends on the processor license type:
Processors are allowed to process cannabis grown by a licensed cultivator without taking ownership of the cannabis. Branding or white labeling agreements with a licensee’s TPIs or another licensee is allowed, as long as the licensee is not otherwise prohibited by the regulations.
Given the different types of processing licenses, it is important to note that a processor is only permitted to conduct the activities listed on its application (or any amendments) as approved by the OCM.
Conditional processors that remain are in “good standing” with OCM can apply and pay for a full processor license, and the OCM is required to give priority to such applications (including an application to add a distribution license).
In addition to these “general” application and operational rules, the regulations include a slew of manufacturing and real estate requirements, which we will dive into in later posts. As for all of our summaries of the adult-use rules and regulations, this is only a high-level summary. We, as always, strongly advise that anyone who intends to apply for a cannabis processor license consult with a knowledgeable, local cannabis attorney. Stay tuned for the next post in our series on New York’s adult-use cannabis rules and regulations!
Re-published with the permission of Harris Bricken and The Canna Law Blog
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