New York’s Adult-Use Processor License

The adult-use cannabis processor license is one of the several licenses added in the proposed new cannabis legislation coming to New York. 

The proposed “Marihuana Regulation and Taxation Act” contains provisions for several 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.

This post will be focused on the adult-use processor license which will allow processing cannabis in the state of New York under the regulations established by the Act. 

What’s the adult-use processor license

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

According to the Act, processing includes but is not limited to the following practices: 

• Blending
• Extracting
• Infusing
• Packaging
• Labeling
• Branding
• Making or preparing cannabis products in any way

The Act expressly excludes the cultivation of cannabis as part of the definition of “processing”.

Pursuant to section 69.3 of the Act, no processor shall be engaged in any other business on the premises to be licensed; except that nothing contained in this chapter shall prevent a cannabis cultivator and cannabis processor, from operating on the same premises and from a person holding both licenses.

No cannabis processor licensee may hold more than three cannabis processor licenses.  Further, a person holding an adult-use processor’s license may not hold a license to distribute cannabis under the Act. 

As well as in the adult-use cultivator license, the adult-use processor’s licensee can’t 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.

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