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Learn about New York Cannabis Laws

New York is one of the most dynamic and culturally rich states in the U.S., often recognized as the epicenter of finance, arts, and global influence. Home to over 20 million residents, it is the fourth most populous state in the nation. The state capital, Albany, anchors New York’s governmental operations, while New York City, the largest city in the U.S., serves as a global hub for commerce, culture, and innovation. Known as “The Empire State,” New York boasts a diverse economy encompassing industries such as finance, technology, entertainment, and agriculture. Landmarks like the Statue of Liberty, Niagara Falls, and Times Square make it a magnet for tourists from around the world.

Demographically, New York reflects a vibrant melting pot with residents from every corner of the globe. This diversity drives its rich cultural tapestry, evident in its cuisine, festivals, and neighborhoods. The state also offers a wealth of outdoor recreation, from the Adirondack Mountains to the Finger Lakes. A pioneer in social progress, New York is often at the forefront of major policy changes, including cannabis reform.

Legal Status of Cannabis in New York

New York legalized recreational cannabis on March 31, 2021, through the Marihuana Regulation and Taxation Act (MRTA). Adults aged 21 and older can legally possess up to three ounces of cannabis flower or 24 grams of concentrate for personal use. Home cultivation of up to six plants per residence is allowed. The Office of Cannabis Management (OCM) regulates the industry, overseeing licensing, compliance, and equity programs.

Medical cannabis has been legal in New York since 2014, initially for a limited range of conditions. Recent reforms expanded access, reducing barriers for patients and allowing smokable flower. The state emphasizes social equity, allocating licenses and funding to communities disproportionately impacted by past cannabis enforcement. The adult-use market is expected to be a significant economic driver, with tax revenues supporting public schools, drug treatment programs, and community reinvestment.

In February 2025, The New York State Office of Cannabis Management (OCM) announced the release of the Cannabis Banking Directory. The Directory was developed by the Social and Economic Equity (SEE) Team to connect licensed cannabis businesses and cannabis-related businesses with financial institutions.

Catalyst BC, in alignment with the state’s efforts, provides New York hemp and cannabis cultivators, farmers, businesses, and suppliers extensive seed-to-sale consulting support including New York cannabis licensing and applications, business strategy, financial planning, start-up support and more.

Legal Status of Hemp Farming in New York

Hemp farming is fully legal in New York under the state’s Industrial Hemp Agricultural Research Pilot Program, established in compliance with the federal 2018 Farm Bill. Administered by the New York State Department of Agriculture and Markets, the program requires farmers to obtain a license to cultivate hemp. Strict THC limits of 0.3% are enforced to distinguish hemp from marijuana, and growers must comply with detailed testing and reporting requirements to ensure product integrity. The program supports research and market development for industrial hemp as a renewable resource.

New York’s hemp industry encompasses a variety of applications, including textiles, food, and CBD products. The state has established comprehensive guidelines for processing, packaging, and labeling to protect consumers and uphold quality standards. To foster growth in the industry, Catalyst BC provides consulting resources to hemp farmers and businesses, helping New York in positioning itself as a leader in the development of sustainable and innovative hemp-based products.

Navigating the Complexities of Operating a Cannabis or Hemp Business in New York

Launching and operating a cannabis business in New York is a competitive and highly regulated process requiring expert guidance to navigate state laws and regulations effectively.

With a proven track record of success, Catalyst BC supports New York based businesses at every stage including Business Strategy, Financial Planning, New York Cannabis Licensing & Applications, Facility Design, Startup Support, Operational Optimization, Genetic Development, and Cannabis Business Turnaround. Book a complimentary cannabis consultation today.

New York Cannabis Application Guide

New York Cannabis Laws and Regulations

To start your journey in the cannabis industry, it’s imperative to familiarize yourself with New York’s Marijuana Regulation & Taxation Act.

Additionally, consider bookmarking the pages below and refer to them often to stay up to date with the most recent updates and changes.

Key resources include:

New York State Office of Cannabis Management

The Office of Cannabis Management’s (OCM) adult-use cannabis market was established upon the passage of the Cannabis Law in March 2021. The Cannabis Law legalized cannabis for adults 21 years of age or older, but cannabis legalization represents more than a shift in New York’s drug policies — it introduces a path forward for New York, to bring economic opportunities to every corner of the State, to build an equitable cannabis industry, and to set a new example of how this market can be used as a tool to improve our communities when entrepreneurs are equipped with adequate resources and education.

OCM is charged with overseeing the adult-use, medical, and cannabinoid hemp industries in New York, as well as establishing the regulations governing how and when a person or business may apply for and receive a license. With a goal of awarding 50% of all licenses to Social and Economic Equity (SEE) applicants, OCM actively promotes the participation of individuals from communities disproportionately impacted by cannabis prohibition policies, minority and women-owned businesses, distressed farmers, and service-disabled veterans.

Types of Adult-Use Cannabis Licenses in New York

All New York Cannabis license types, including consumption lounges, events licensing, and distribution, are listed below. Each of these different license types requires different sets of documents with an addition of what is also required by the state of New York’s Office of Cannabis Management and Adult Use License Types.

Adult-use Cultivator
Adult-use Nursery
Adult-use Processor
Adult-use Distributor
Adult-use Cooperative
Adult-use Micro Business
Adult-use Retail Dispensary
Adult-use On-site Consumption
Adult-use Delivery
Registered Organization Adult-use Cultivator Processor Distributor Retail Dispensary
Registered Organization Adult-use Cultivator Processor Distributor

Additionally, there are Adult-use Type 3 branding licenses that authorize licensees to enter into white-labeling agreements without having to become a true party of interest in a New York State licensed adult-use processor or having to establish a processing facility in New York State.

Fees for New York Cannabis Licenses

Application Fees. An application for a license (except a ROD or ROND license) must be accompanied by a non- refundable application fee of $1,000. Applications for an ROD and ROND license must be accompanied by a non- refundable application fee of $10,000.
A qualified social and economic equity (SEE) applicant shall receive a 50% reduction in all application fees and license fees.

Please note that the application fee and licensing fee are two separate payments. Application fees are collected at the time of submitting an application for a license. Licensing fees are collected after the approval of the application for licensure by the Cannabis Control Board. Licensing fees are detailed below by license type and amount.

Adult-Use Application and Licensing Fee Schedules
Effective 3/19/2024:

Licensing Fees. Prior to final issuance of a license, an applicant shall pay a licensing fee for the specific license type as follows:

Adult-Use (AU) Nursery License
Maximum outdoor area of 100,000 sq. ft. $750
Maximum mixed light area of 10,000 sq. ft. $1,000
Maximum area of 10,000 sq. ft. $2,000

AU Cultivator License: Outdoor
Outdoor Tier 1 $1,000+$150 per 500 sq. ft. of cultivation canopy
Outdoor Tier 2 $2,500+$250 per 500 sq. ft. of cultivation canopy over 5,000 sq. ft.
Outdoor Tier 3 $6,250+$350 per 500 sq. ft. of cultivation canopy over 12,500 sq. ft.
Outdoor Tier 4 $15,000+$500 per 500 sq. ft. of cultivation canopy over 25,000 sq. ft.
Outdoor Tier 5 $40,000+$800 per 500 sq. ft. of cultivation canopy over 50,000 sq. ft.

AU Cultivator License: Mixed Light
Mixed Light Tier 1 – $1,500+$290 per 500 sq. ft. of cultivation canopy
Mixed Light Tier 2 – $4,380+$440 per 500 sq. ft. of cultivation canopy over 5,000 sq. ft.
Mixed Light Tier 3 – $10,940+$615 per 500 sq. ft. of cultivation canopy over 12,500 sq. ft.
Mixed Light Tier 4 – $26,250+$875 per 500 sq. ft. of cultivation canopy over 25,000 sq. ft.

AU Cultivator License: Indoor
Indoor Tier 1 $1,750+$450 per 500 sq. ft. of cultivation canopy
Indoor Tier 2 $6,250+$625 per 500 sq. ft. of cultivation canopy over 5,000 sq. ft.
Indoor Tier 3 $15,630+$880 per 500 sq. ft. of cultivation canopy over 12,500 sq. ft.
Indoor Tier 4 $37,500+$1,250 per 500 sq. ft. of cultivation canopy over 25,500 sq. ft.
Indoor Tier 5 $100,000+$2,000 per 500 sq. ft. of cultivation canopy over 50,000 sq. ft.

AU Cultivator License: Combination
Combination Tier 1 – $1,250+$150 per 500 sq. ft. of cultivation canopy
Combination Tier 2 – $3,500+$235 per 500 sq. ft. of cultivation canopy over 7,500 sq. ft.
Combination Tier 3 – $8,750+$375 per 500 sq. ft. of cultivation canopy over 18,750 sq. ft.
Combination Tier 4 – $21,000+$585 per 500 sq. ft. of cultivation canopy over 37,500 sq. ft.
Combination Tier 5 – $56,000+$860 per 500 sq. ft. of cultivation canopy over 65,000 sq. ft.

AU Cultivator (AU Conditional Cultivators only)
25,000 sq. ft. Mixed Light with max. 20 lights – $19,000

AU Cooperative or Collective License: Outdoor
Outdoor Tier 1 – $15,000+$0.25 per sq. ft. of cultivation canopy up to 25,000 sq. ft.
Outdoor Tier 2 – $20,000+$0.25 per sq. ft. of cultivation canopy over 25,000 and less than 50,000 sq. ft.
Outdoor Tier 3 – $25,000+$0.25 per sq. ft. of cultivation canopy over 50,000 sq. ft. and less than 100,000 sq. ft.
Outdoor Tier 4 – $30,000+$0.25 per sq. ft. of cultivation canopy greater than 100,000 sq. ft.

AU Cooperative or Collective License: Mixed Light
Mixed Light Tier 1 – $20,000+$0.25 per sq. ft. of cultivation canopy up to 25,000 sq. ft.
Mixed Light Tier 2 – $25,000+$0.25 per sq. ft. of cultivation canopy over 25,000 and less than 50,000 sq. ft.
Mixed Light Tier 3 – $30,000+$0.50 per sq. ft. of cultivation canopy over 50,000 sq. ft. and less than 100,000 sq. ft.
Mixed Light Tier 4 – $35,000+$0.50 per sq. ft. of cultivation canopy over 100,000 sq. ft.

AU Cooperative or Collective License: Indoor
Indoor Tier 1 $30,000+$0.75 per sq. ft. of cultivation canopy up to 25,000 sq. ft.
Indoor Tier 2 $35,000+$0.75 per sq. ft. of cultivation canopy over 25,000 and less than 50,000 sq. ft.
Indoor Tier 3 $50,000+$0.75 per sq. ft. of cultivation canopy over 50,000 sq. ft. and less than 100,000 sq. ft.

AU Cooperative or Collective License: Combination
Combination Tier 1 – $20,000+$0.25 per sq. ft. of cultivation canopy up to 25,000 sq. ft.
Combination Tier 2 – $25,000+$0.25 per sq. ft. of cultivation canopy over 25,000 and less than 50,000 sq. ft.
Combination Tier 3 – $30,000+$0.25 per sq. ft. of cultivation canopy over 50,000 sq. ft. and less than 100,000 sq. ft.
Combination Tier 4 – $35,000+$0.25 per sq. ft. of cultivation canopy over 100,000 sq. ft.

AU Processor License
Extraction, infusing and blending, and packaging, labeling and branding $7,000*
Infusing and blending, and packaging, labeling and branding $2,000 *
Packaging, labeling and branding, including for the performance of white labeling agreements $2,000**

*per processing premises
**per processing premises, provided however, for a Tier 1 or Tier 2 Cultivator License, the processor license fee shall be $500 per premises

AU Distributor License*
$7,000 per operating premises
*$2,500 for processor licensees

AU Retail Dispensary License $7,000 per operating premises
Limited Retail Consumption Facility Fee $3,000

*$3,000 fee is waived if the limited retail consumption facility is within 200 ft. of a public housing facility

AU Microbusiness License $4,500

ROND Licensing Fee
Cultivation Tier 5 AU Cultivator fee, based on canopy type
Processing AU Processor fee, based on type
Distribution AU Distributor fee

ROD Licensing Fee
A ROD shall pay:
– $175,000;
– the Tier 5 AU Cultivator fee, based on canopy type;
– and a $20 million special fee, as set forth in Cannabis Law and regulation that is paid over time.

AU Cooperative Processor Fee – $5,000 per processing premises
AU Cooperative Distributor Fee – $3,500 per operating premises
AU Delivery License – $4,500
AU On-Site Consumption License – Additional information related to the on-site consumption license will be made available at a later date.

What Are the Components of the New York Cannabis License Applications?

The cannabis license applications contain general questions about your business, ownership, participation in workforce or training programs offered by the Office, premises, and operating activities.

If you are applying as a Social and Economic Equity (SEE) applicant, you will have additional questions and documentation to upload. The SEE application section collects information from applicants seeking to determine whether the applicant is SEE-qualified. More information about the SEE program is available on the Office’s website.

Information about your True Parties of Interest (TPI) will be collected via your applicant entity disclosure in the TPI Portal. This is a separate process that can only be completed once your cannabis license application has been submitted. After submitting your application, you will receive an email with a link to the TPI Portal to complete this step.

All applicants must submit proof of control over a proposed premises to complete the application and be considered for a final license, except applicants for retail dispensary and microbusiness licenses.

If more time is needed to secure a premises, an applicant for a retail dispensary or microbusiness license can apply without premises details. If deemed eligible and selected for a license, they will become provisionally approved and have twelve (12) months to secure a premises and submit documentation before being licensed on a final basis and operational.

Can I Apply For a New York Cannabis License if I Do Not Have A Premises for My Business?

All applicants, except those seeking retail dispensary and microbusiness licenses, must submit proof of control of their proposed premises to complete an application.

PLEASE NOTE: Do not apply for a cultivator, processor, or distributor license if you do not have control over the proposed licensed property. The application system may allow cultivators, processors, and distributors to apply without premises information, however, only applications submitted with proof of premises will be considered as eligible for a license. Be aware the application fee is non-refundable.

How Do I Prove That I Have Control Over a Premises?

You can prove that you have control over a premises by uploading an executed deed if you own the property, or by uploading an executed lease agreement if you are leasing the property. These documents must outline all common terms associated with a lease agreement and must show that the applicant possesses or has the right to use sufficient land, buildings, and other premises as specified in the application to properly carry out the activities for which a license is sought.

How is the Premises Requirement Different For Retail Dispensary and Microbusiness (With Retail Authorization) Applicants?

There are two paths for retail dispensaries and microbusinesses (with retail authorization) to complete the application:

a) Provisional License: If you do not have control over a premises at the time of application, you may submit the application without these details and obtain a provisional license. After receiving a provisional license, you may take up to twelve (12) months to submit proof of control over a premises. Once the Office reviews the additional information, a final license may be issued. Only after a final license is issued with a license certificate can adult-use cannabis operations begin.

b) Final License: If you already have control over the premises at the time of your application, whether by lease agreement, or ownership (as shown through a deed), you may identify the premises on your application and submit a complete application for the Office’s review. A premises cannot be used for licensed cannabis activities without prior Office approval.

What is a Provisional License?

Provisional licenses are for retail dispensary and microbusiness applicants without control over a premises. A provisional license does not authorize operating activities under the Cannabis Law, but it provides assurances to stakeholders, like investors, landlords, and lenders, that the application satisfies certain conditions necessary and relevant to the license type sought, subject to completion of outstanding items required to obtain a final license. In this way, the provisional license may help applicants secure a premises or funding for their cannabis operation before a final license is issued.

Provisional licensees have twelve (12) months from the date of provisional license to complete their licensing application by providing updated information on their TPI and premises details in order to obtain a final license.

Can I Apply For Two Licenses At the Same Time?

Yes, you may submit applications for several license types. However, pursuant to regulations, you may not apply for more licenses than those for which you are authorized as a True Party of Interest (TPI). For example, an individual cannot be a TPI (own and control) more than three adult-use retail dispensary licenses. Further, final licensing by the Cannabis Control Board must comply with TPI regulations. More information is available at the TPI Guidance.

Additionally, you will have to pay the non-refundable application fee for each application submitted and must pay the associated license-specific fees upon final licensure.

What Does An Adult-use Processor License Authorize?

Based on the authorizations requested during the application process, the adult-use processor license will allow the processor to conduct some, or all, of the following activities:

• Type 1: Extracting, plus activities under Type 2 and 3;
• Type 2: Infusing and blending, plus activities under Type 3; and
• Type 3: Packaging, labeling, and branding, including entering into white labeling agreements only.

Please note that applicants that can demonstrate that they operate an existing processing facility, at which they plan to process cannabis product, including demonstrating existing full GMP certification, may be pooled and queued separately from other applicants for a select number of available processor license types at the discretion of the Board, in accordance with SEE prioritization.

Applicants applying for a Type 3 Processor licensing for branding purposes only may enter their entity address as their “facility location address” in the application. All other Type 3 Processor applicants (for any and all packaging and labeling) must apply with a suitable facility location.

What Financial Services Are Available to Cannabis Licensees in New York?

On February 7, 2025, the New York State Office of Cannabis Management (OCM) announced the release of the Cannabis Banking Directory. The Directory was developed by the Social and Economic Equity (SEE) Team to connect licensed cannabis businesses and cannabis-related businesses with financial institutions. It will assist operators in supporting “transparency, meet financial regulations, and operate within a secure, legal framework,” and foster competition in cannabis financial services.

Who Can I Contact For Information Regarding Facility Design?

Facility design is a critical and complex phase when starting a cannabis business, whether it’s a cultivation facility, dispensary, or extraction lab. The process is costly, time-consuming, and requires attention to hundreds of variables that impact operational efficiency, profitability, and overall success.

Our design-assist services collaborate with architects and engineers to ensure your facility incorporates proven methods, systems, and equipment from world-class facilities. Contact our New York consulting team for a complimentary consultation.

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