In another piece of good news for the burgeoning cannabis industry in New York State, Gov. Kathy Hochul announced on Feb. 22 she had signed legislation creating a new Conditional Adult-use Cannabis Cultivator license, which establishes a pathway for existing New York hemp farmers to apply for a conditional license to grow cannabis in the 2022 growing season for the forthcoming adult-use market. 

Under the new law, conditionally licensed cannabis farmers must meet certain requirements, including safe, sustainable and environmentally friendly cultivation practices, participation in a social equity mentorship program, and engagement in a labor peace agreement with a bona fide labor organization.   

“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. “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” 

Cannabis Control Board Chair Tremaine Wright said, “I am thankful to the Governor and Legislature for supporting our efforts to build a safe, accessible and stable New York cannabis industry. This law places New York's farmers first in line to grow cannabis, the timing of which is critical to our efforts to roll out the adult use program. With this bill, we're continuing to put equity and inclusion at the forefront of the new cannabis industry we're building.”  

Member of the NYS Cannabis Control Board and former Senate Agriculture Chair Jen Metzger added, “This legislation aligns the rollout of the adult-use program with the natural growing season so that products made with sun-grown cannabis can be available when dispensaries open their doors. I thank my former colleagues in the Legislature and Governor Hochul for their swift action, and I look forward to working with my board colleagues to develop a conditional licensing program that promotes sustainable farming practices and meaningful social equity mentorship opportunities.”

With a conditional adult-use cannabis cultivation license, farmers can grow outdoors or in a greenhouse for up to two years from the issuance of the license. It also allows 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.   

The OCM 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 Dec. 31, 2021, when the research program ended. 

Holders of the license must also participate in a social equity mentorship program where they provide training in cannabis cultivation and processing for social and economic equity partners, preparing them for potential roles in the industry. Growers will also have to meet sustainability requirements to ensure the cannabis is grown in an environmentally conscientious way.   

The governor's action builds on the work she and the OCM have undertaken to bring the new cannabis industry to life in New York. In January, the governor's executive budget proposed a $200-million program that will use industry licensing fees and revenue to provide support to eligible applicants from communities impacted by the overcriminalization of cannabis during its prohibition. The governor and the legislature also moved quickly to appoint the Cannabis Control Board and OCM leadership within weeks of the start of her administration. Since the Board held its first meeting on Oct. 5, the OCM has:   

• Launched the Cannabinoid Hemp Program, putting in place protections for the public and provisions to help New York's CBD businesses compete;  

• Vastly expanded access to the Medical Cannabis Program, including empowering health care providers to determine if medical cannabis can help their patients, lowering costs by permanently waiving patient fees and allowing the sale of whole flower, and growing the list of providers who can certify patients; and  

• Launched its first wave of community outreach events with 11 regional events, including one in Spanish, that's already engaged more than 5,000 attendees; and  

• Developed a pipeline of talented professionals to join the Office's growing team and built the infrastructure to support the office.       

Assembly Majority Leader Crystal Peoples-Stokes said, " With the passage of this bill, we have the opportunity to create a responsible start to the adult-use cannabis industry by authorizing temporary conditional cultivator and processor licenses to current New York hemp farmers. This authority will help secure enough safe, regulated, and environmentally conscious cannabis products to meet the demand of the adult-use cannabis market when retail dispensaries open. Importantly, this legislation calls for a Social Equity Mentorship Program, which will create a viable and inclusive path for social and economic equity partners interested in cannabis cultivation and processing to gain invaluable knowledge and experience in this emerging industry. The temporary conditional licenses authorized by this bill will ultimately help realize the vision and goals of the MRTA.'' 

Senator Michelle Hinchey said, “Today is an exciting day in New York as our bill to give New York farmers the ability to start the cannabis market is signed into law. The MRTA set the foundation for our state to build a truly circular cannabis economy that puts New York farmers and small business dispensaries at the center of growth and production, and with the signing of this bill, farmers can now put seeds in the ground to ensure we meet the demand of this burgeoning industry. I thank Governor Hochul for her quick action on this bill so that we can get to work building the most forward-thinking and socially-equitable cannabis industry in the country."