Adult-Use Conditional Processor

On February 22, 2022, Governor Kathy Hochul signed into law S.8084-A/A.9283-A, creating an adult-use conditional processor license. This license will allow businesses who are already licensed to process cannabinoid hemp in the Cannabinoid Hemp Program to apply for a license to process adult-use cannabis products in the Adult-Use Program. This application opportunity is only available to active cannabinoid hemp processor license-holders who applied for their license before January 1, 2022.

Pursuant to the Cannabis Law, adult-use conditional processor licensees will be permitted to process cannabis products containing over 0.3% THC for the Adult-Use Cannabis Program. The license will also be authorized for the distribution of cannabis products to duly licensed adult-use retail dispensaries until June 1, 2023. After June 1, 2023, conditional processors seeking to distribute cannabis products, will be required to apply for a separate distributor license to engage in this activity.

On June 23, 2022, the Cannabis Control Board (Board) approved the application and opening of the application window for Conditional Processors beginning June 28, 2022 through August 31, 2022. Please be aware that the Office of Cannabis Management (Office) is diligently working on the roll-out of additional license opportunities for the broader Adult-Use Program and will be sharing more information soon.

Applicants must also pay a non-refundable $2,000 Application and Licensing Fee to complete their application submission. Applicants are strongly encouraged to read program guidance before applying and submitting payment. Please find Adult-Use Conditional Processor application mock-ups, application Terms and Conditions, and program Guidance at the links below.

Please be advised that the existing conditional license and the authorities granted under that license including processing and/or distribution, will not expire until a final decision has been made on your application for full licensure.

All conditional cultivator or processor licensees who have submitted their adult-use license application and application fee prior to the closing of the application window at 5:00 PM EST on May 3, 2024, may continue operations authorized under the conditional license while your application is being reviewed and processed by the Office, provided the licensee is in good standing with the Office. Nothing in this notice prohibits the Office from taking action against the conditional license pursuant to the Cannabis Law and regulations.

Conditional cultivator or processor licensees who did not submit an application to transition to a general adult-use license along with the full application fee by 5:00 PM EST on May 3, 2024, must cease all cannabis activity by June 30, 2024. The Office will be following up with those conditional licensees who are ceasing operations on further steps to close operations in the future.

Please note that when a conditional licensee transitions to a non-conditional license, a distributor license is required in order to sell cannabis products to a retail dispensary.  All distributor licensees are required to register with the Department of Taxation and Finance after receiving their distributor license. If you have already registered with the Department of Taxation and Finance under your conditional license, you will need to register again under your new distributor license.

Adult-use cannabis tax registration instructions

Thank you and please reach out to [email protected] if you have any questions.

Universal Symbol

Cannabis product packaging must include one of the three universal symbols, provided in the table below. The symbol must be at least 1.25 inches in height for the square symbol, 0.5 inch in width for the vertical symbol, or 0.5 inch in height for the horizontal symbol. The symbol must be made conspicuous by printing the symbol on—or outlining the symbol with—a color which contrasts with the symbol.

DOWNLOAD PACKAGING AND LABELING GUIDANCE