Over the next several weeks, we will take a deeper dive into each license available under New York’s Cannabis Law. Last week we covered the Cannabinoid Hemp Retailer License. This week we turn to another license for which New York is already accepting applications, the Cannabinoid Hemp Processor License.
Rights Granted: Allows the licensee to process cannabinoid hemp and distribute cannabinoid hemp. A person authorized to grow hemp must obtain a Processor License if they wish to process the hemp for human consumption.
Processing includes extraction, preparation, or otherwise manipulating cannabinoid hemp to concentrate or extract its cannabinoids or create product used for human consumption. Processing does not include growing, cultivating, cloning, or other activities permitted by hemp growers.
Cannabinoid hemp includes any hemp, or any product processed or derived from hemp, that has a concentration of THC of no more than 0.3%.
Restrictions: The licensee may sell cannabinoid hemp only in sealed containers based on certain size rules that are yet to be established. This requirement is not yet in effect.
The licensee is responsible for ensuring that the hemp was grown only with certain pesticides and processed in accordance with good manufacturing practices. The board may also restrict the ingredients and methods used in processing hemp or prohibit certain products.
The licensee must also contract with an independent commercial laboratory to test the hemp extract and products.
Replacement of Research Partnership: Any person that currently holds a research partnership agreement authorizing them to process cannabinoid hemp will receive a Processor License if they are actively performing research under that agreement and can show that they are complying with the new law.
Term of License: Two years.
License Fee: Manufacturing only: $2,000 plus a $500 application fee. Extracting and manufacturing: $4,500 plus a $1,000 application fee.
Application: The application is currently available through the New York Business Express online portal.
The application requires information about the applicant (e.g., name, EIN, location), the owners of the applicant, (e.g., address, social security number) and the applicant’s products, processes, and suppliers.
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