New York Codes, Rules and Regulations
Title 9 - EXECUTIVE DEPARTMENT
Subtitle B - Division of Alcoholic Beverage Control
Chapter II - Rules of the Office of Cannabis Management
Part 120 - Application and Licensure
Section 120.3 - License Specific Tiers and Options
Universal Citation: 9 NY Comp Codes Rules and Regs ยง 120.3
Current through Register Vol. 46, No. 39, September 25, 2024
(a) Nursery License:
(1) All nursery applicants shall obtain a
Nursery Grower Certificate of Registration from the New York State Department
of Agriculture and Markets Division of Plant Industry prior to licensure by the
Board.
(2) An applicant for a
nursery license shall indicate the type of nursery license it seeks to operate
based on the size and type of nursery area as set forth below:
(i) Nursery Outdoor: for an outdoor nursery
area with a maximum area of 100,000 square feet;
(ii) Nursery Mixed-Light: for a mixed light
nursery area with a maximum area of 10,000 square feet; or
(iii) Nursery Indoor: for an indoor nursery
area with a maximum area of 10,000 square feet.
(b) Cultivator License. An applicant for a cultivator license shall indicate the license tier in which it seeks to operate based on the size of the cultivation canopy and the type of cultivation as set forth below.
(1) A cultivator may only have
one (1) cultivator license which will authorize the cultivator only one (1)
type of cultivation and canopy tier as approved on the cultivator's
application. A cultivator license may choose from the following four (4)
different types of cultivation:
(i)
indoor,
(ii) mixed light,
(iii) combination of outdoor with mixed
light, or
(iv) outdoor.
(2) Indoor, Mixed-light, or
Outdoor Cultivator Cultivation Tiers: A cultivator that is authorized to
cultivate indoor, mixed-light, or outdoors is authorized to cultivate cannabis
in one (1) of the following canopy tiers as authorized on the licensee's
application:
(i) Tier 5. Greater than 50,000
square feet and up to but not exceeding 100,000 square feet.
(ii) Tier 4. Greater than 25,000 square feet
and up to but not exceeding 50,000 square feet;
(iii) Tier 3. Greater than 12,500 square feet
and up to but not exceeding 25,000 square feet;
(iv) Tier 2. Greater than 5,000 square feet
and up to but not exceeding 12,500 square feet; or
(v) Tier 1. Up to, but not exceeding 5,000
square feet;
(3)
Combination Cultivator Cultivation Tiers. A cultivator is authorized to
cultivate outdoors with mixed light in one (1) of the following canopy tiers:
(i) Tier 5 Combination Cultivator. Greater
than 50,000 square feet and up to but not exceeding 100,000 square feet of
outdoor; and greater than 15,000 square feet and up to but not exceeding 30,000
square feet of mixed light.
(ii)
Tier 4 Combination Cultivator. Greater than 25,000 square feet and up to but
not exceeding 50,000 square feet of outdoor; and greater than 12,500 square
feet and up to but not exceeding 15,000 square feet of mixed light;
(iii) Tier 3 Combination Cultivator. Greater
than 12,500 square feet and up to but not exceeding 25,000 square feet of
outdoor; and greater than 6,250 square feet and up to but not exceeding 12,500
square feet of mixed light;
(iv)
Tier 2 Combination Cultivator. Greater than 5,000 square feet, and up to but
not exceeding 12,500 square feet of outdoor; and greater than 2,500 square feet
and up to but not exceeding 6,250 square feet of mixed light; or
(v) Tier 1 Combination Cultivator. Up to but
not exceeding 5,000 square feet of outdoor; and up to but not exceeding 2,500
square feet of mixed light;
(4) A cultivator shall not expand or reduce
its cultivation canopy beyond its licensed cultivation tier unless it has
applied to the Office and received prior written approval from the Office. A
cultivator license pursuant to subparagraph (iv) of paragraph (1) of
subdivision (f) of this section shall only be eligible to expand into a Tier 3
Mixed Light license.
(5) At the
time of license renewal, cultivators shall provide inventory and production
records requested by the Office during the six (6) months prior to the
application for renewal. As part of the license renewal process, the Office may
recommend that the Board excerise its discretion to reduce the licensee's
maximum cultivation canopy based on the same criteria pursuant to subdivison
(g) of this section. Upon such recommendation and prior to the Board making a
determination, the licensee shall be given notice and reasonable time to appeal
the Office's recommendation before the Board.
(c) Microbusiness License. An applicant for a microbusiness license shall indicate on the application for licensure the activities in which the applicant intends to engage, including:
(1) The license tier, which shall be limited
to one, in which it seeks to operate based on the size of the cultivation
canopy and the type of cultivation as set forth below:
(i) Indoor canopy not to exceed 3,500 square
feet;
(ii) Mixed light canopy not
to exceed 5,000 square feet; or
(iii) Outdoor canopy not to exceed 10,000
square feet.
(iv) Combination
canopy not to exceed outdoor canopy of 5,000 square feet and mixed-light canopy
of 2,500 square feet.
(2) The processing activities in which the
applicant intends to engage, including:
(i)
extracting;
(ii) blending and
infusing;
(iii) packaging and
labeling; or
(iv) branding,
including for the exclusive performance of white labeling agreements.
(3) In determining whether to
approve a microbusiness licensee to transition to a cultivator license, the
Board may consider the factors set forth subdivision (g) of this
section.
(4) Microbusiness
licensees shall be authorized to expand their cultivation canopy subject to the
same operational requirements as set forth for cultivator licenses in section
123.4 of this Title, however upon
expanding canopy size, a microbusiness shall only be eligible to transfer to a
cultivation-only license tier, pursuant to subdivision (b) of this
section.
(d) Processor License. An applicant for a processor license shall indicate on the application for licensure the processing activities in which the applicant intends to engage in, including:
(1)
extracting;
(2) blending and
infusing;
(3) packaging and
labeling; or
(4) branding,
including for the exclusive performance of white labeling agreements.
(e) Cooperative and Collective License. An applicant seeking to qualify for a license under section 70 of Cannabis Law shall:
(1) be formed as an entity under one
(1) of the following:
(i) the New York State
Cooperative Corporations Law;
(ii)
subdivision (h) or (i) of section
123.13 of this Title; or
(iii) as otherwise approved by the
Office.
(2) at minimum,
meet the business authorizations and prohibitions set out in section
123.13 of this Title; and
(3) indicate on the application for licensure
the number of members in the cooperative or collective, the facility type, the
size of the cultivation canopy, and the type of cultivation as set forth below:
Cooperative or Collective Tiers
|
Cooperative or Collective Tiers |
Indoor |
Mixed-Light |
Outdoor |
Combo (Mixed-Light + Outdoor) |
|
Tier 1 |
25,000 |
25,000 |
25,000 |
25,000 |
|
Tier 2 |
50,000 |
50,000 |
50,000 |
50,000 |
|
Tier 3 |
100,000 |
100,000 |
100,000 |
100,000 |
|
Tier 4 |
150,000 |
150,000 |
150,000 |
|
Sq ft (000's) per Number of Members in the Cooperative |
||||||||||||
|
Facility Type |
Number of Members |
|||||||||||
|
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
>15 |
|
|
Indoor |
25 |
37.5 |
50 |
62.5 |
75 |
87.5 |
100 |
100 |
100 |
100 |
100 |
100 |
|
Mixed-Light |
25 |
37.5 |
50 |
62.5 |
75 |
87.5 |
100 |
112.5 |
125 |
125 |
125 |
125 |
|
Combination Mixed-Light & Outdoor |
25 |
37.5 |
50 |
62.5 |
75 |
87.5 |
100 |
112.5 |
125 |
125 |
125 |
125 |
|
Outdoor |
25 |
37.5 |
50 |
62.5 |
75 |
87.5 |
100 |
112.5 |
125 |
137.5 |
150 |
150 |
(4) The applicant shall indicate the types of
processing activities that the applicant intends to engage in, pursuant to
subdivision (d) of this section.
(5) Cooperative or Collective License
Renewal. The cooperative or collective licensee shall provide records requested
by the Office during the six (6) months prior to when the cooperative or
collective licensee applies for renewal of their cooperative or collective
license. The Office may recommend that the Board exercise its discretion to
reduce the cooperative or collective licensee's maximum cultivation canopy
based on cultivation canopy utilization rates and harvested product sale
history over a minimum period of the previous twelve (12) months. Upon such
recommendation and prior to the Board making a determination, the licensee
shall be given notice and an opportunity to appeal the Office's recommendation
before the Board.
(f) Conditional Cultivator License. The Office shall approve the transition of a conditional cultivator, determined to be in good standing by the Office.
(1) The conditional cultivator licensee must
complete any required forms, submit any necessary information, and pay the
corresponding fee, required by the Office, to one (1) of the following license
types they chose to transition into:
(i) a
Tier 1 through 4 outdoor cultivator licenses as provided in subdivision (b) of
this section;
(ii) a Tier 1 or 2
mixed-light cultivator license as provided in subdivision (b) of this
section;
(iii) a Tier 1 or 2
combination cultivator license as provided in subdivision (b) of this
section;
(iv) an adult-use
cultivator license authorized for up to 25,000 square feet of mixed light
cultivation canopy with no more than 20 lights, provided however, neither the
Office nor the Board shall authorize an increase in the number of lights for
this license type without the issuance of regulations;
(v) a microbusiness license; or
(vi) an outdoor or mixed light cooperative or
collective license, provided the cooperative or collective license includes at
least five (5) adult-use conditional cultivators that are transitioning to
adult-use cultivators and meet all other requirements to obtain a cooperative
or collective license.
(2) The Office shall prioritize review of
conditional cultivator applications for a cultivator, processor, or distributor
license pursuant to this Title.
(g) The following factors may be considered in determining whether to approve a cultivator, cooperative or collective, ROND, or ROD to change its canopy tier, canopy type, or maximum cultivation canopy, including, but not limited to, the licensee's:
(1) cultivation canopy utilization rates and
harvested product sale history over a minimum period of the previous twelve
(12) months;
(2) whether the
licensee's plants or inventory suffered a catastrophic event during the
licensing period;
(3) cannabis
transfers and sales history;
(4)
existing inventory and a licensee's inventory history;
(5) adherence to any plan required pursuant
to this Title, including, but not limited to, the licensee's operating plan,
energy and environmental plan, and community impact plan;
(6) the criteria set forth in subdivision (b)
of section 120.7 of this Part; and
(7) any other factors determined by the
Board.
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