New York Waives Cannabis Cultivator Licensing Fees for 2 Years

New York cannabis regulators voted to waive the licensing fees for adult-use conditional cultivators for two years during their regular board meeting March 22. These fees range from $4,500 to $40,000 depending on the license tier and canopy size.

This move comes more than two years after Gov. Kathy Hochul signed legislation into law authorizing the state’s existing hemp farmers to grow cannabis during the 2022 outdoor season to supply New York’s adult-use market that was gearing up to launch sales at the end of that year.

The New York Cannabis Control Board (CCB) approved 146 cultivation licenses for these farmers by May 19, 2022—as the growing season was under way—and continued to approve more in the following months in anticipation for a robust retail market in 2023.

But with fewer than 20 licensed dispensaries operational for the majority of 2023, many New York hemp farmers had limited options for their harvests, and it became known as “the lost year” to some.

Now, the CCB is extending an olive branch of financial relief to some of these farmers who are still in the game at a time when Gov. Kathy Hochul has put pressure on the Office of Cannabis Management (OCM) to identify improvement opportunities with the recent launch of a probe into the organization.

“Farmers are the backbone of our state, and we’re making sure the family farms across New York that are building our cannabis industry have a real chance to succeed,”  Hochul said in a press release March 22. “I have made it clear that New York State needs to issue more dispensary licenses and kickstart cannabis sales in New York, and this two-year promise to Adult-Use Conditional Cultivators will make sure these farmers can reap the benefits of this growing industry.”

Also during Friday’s meeting, board members approved 114 additional adult-use licenses, including for 45 dispensaries and 31 microbusinesses, the latter of which allows a licensee to grow, process, distribute and sell all under one license.

This licensing round comes after the state provided a general application window that closed in December 2023—one that drew roughly 7,000 applications, including roughly 4,300 for dispensary operations. This window allowed for additional entrepreneurs to vie for their market entrances after a social equity-focused rollout went underfunded and was challenged in court.

As of March 22, New York has 76 dispensaries open statewide as well as 11 delivery-only retailers, according to OCM. These licensed operators are overshadowed by an estimated 2,000 unlicensed cannabis shops that continue to supply New Yorkers, according to a recent New York Times report.

As Hochul has taken aim at these unregulated shops, she has also encouraged the OCM to move quickly on licensing operators who will abide by state regulations, including testing standards for products sold to consumers.

The 45 dispensary and 31 microbusiness licenses approved during Friday’s meeting are in addition to the 25 retail and 26 microbusiness permits approved last month.

“Today our market takes one step further in building a market of competition, choice and equity with the issuance of more than a hundred adult-use cannabis licenses,” CCB Chair Tremaine Wright said in the governor’s press release. “The Cannabis Control Board is here to help this market grow and thrive in the ways we all know is possible, and we can’t wait to issue more of these licenses in our coming meetings.”

Applicants approved for the retail and microbusiness licenses have specific locations under their control, and the board plans on issuing additional licenses on a rolling basis at future board meetings, according to the release.

CCB members also voted to renew permits for 17 cannabis testing laboratories during Friday’s meeting.