
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: March 24, 2022
Partner
201-896-7115 dmckillop@sh-law.comEager to get its adult-use cannabis industry up and running and keep pace with neighboring New Jersey, New York is giving hemp farmers the green light to grow cannabis for the adult-use cannabis market. Under legislation signed into law by Gov. Kathy Hochul, hemp farmers may apply for a new Conditional Adult-use Cannabis Cultivator license to grow cannabis in the 2022 growing season.
“I am proud to sign this bill, which positions New York’s farmers to be the first to grow cannabis and jumpstart the safe, equitable and inclusive new industry we are building,” Gov. Hochul said in a press statement. “New York State will continue to lead the way in delivering on our commitment to bring economic opportunity and growth to every New Yorker in every corner of our great state.”
In March 2021, New York State passed the Marijuana Regulation and Taxation Act (MRTA), which legalized the adult use of marijuana. Under the MRTA, the Office of Cannabis Management (OCM) is tasked with establishing the regulatory framework for the legal cannabis industry. To date, licensing regulations have not been finalized.
To help ensure that cannabis products will be available to meet the demand of the adult-use cannabis market when retail dispensaries do open, New York is allowing existing hemp farmers to begin production. With an Adult-use Cannabis Conditional Cultivator License, farmers can grow outdoors or in a greenhouse for up to two years from the issuance of the license. The new law also authorizes them to manufacture and distribute cannabis flower products without holding an adult-use processor or distributor license, until June 1, 2023.
Cultivators are limited to one acre (43,560 square feet) of flowering canopy outdoors or 25,000 square feet in a greenhouse and can use up to 20 artificial lights. They can also split between outdoor and greenhouse grows with a maximum total canopy of 30,000 square feet as long as greenhouse flowering canopy remains under 20,000 square feet.
According to the OCM, it will be developing a license application process and opening the program as soon as possible. To qualify for an Adult-use Cannabis Conditional Cultivator License, an applicant must have been an authorized industrial hemp research partner for the Department of Agriculture and Markets, cultivating hemp for its non-intoxicating cannabinoid content for at least two of the past four years and in good standing as of December 31, 2021, when the research program ended.
Licensees must also participate in a social equity mentorship program where they provide training in cannabis cultivation and processing for social and economic equity partners. Growers will also have to meet sustainability requirements to ensure the cannabis is grown in an environmentally conscientious way.
No later than ninety days before the expiration of a conditional adult-use cultivator license, the OCM must, pursuant to a request by the licensee, review the conditional adult-use cultivator licensee to determine whether they are in good standing. Any licensee found to be in good standing will be eligible to apply for and receive an adult-use cultivation license, provided the licensee can meet all requirements of the new license. Licensees will receive, at minimum, an adult-use cultivator license for the size of flowering canopy that they were licensed to grow pursuant to their conditional adult-use cultivator license or a larger size flowering canopy and authorization to use artificial light as may be set out by the board in regulation. A licensee may not separately apply for any license type permitting the cultivation of adult-use cannabis while holding a conditional adult-use cultivator license.
Both New Jersey and New York are working to get their cannabis industries off the ground and legal developments are expected to pick up speed in the coming weeks. For businesses looking to enter either market, it is important to be prepared, and we encourage you to contact a member of the Scarinci Hollenbeck Cannabis Law Practice Group.
If you have any questions or if you would like to discuss the matter further, please contact Dan McKillop, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
This article is a part of a series pertaining to cannabis legalization in New Jersey and the United States at large. Prior articles in this series are below:
Disclaimer: Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy. Legal advice provided by Scarinci Hollenbeck, LLC is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Scarinci Hollenbeck, LLC will not provide assistance in circumventing Federal or state cannabis law or policy, and advice provided by our office should not be construed as such.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!