As we noted is our blog post earlier this week, New York recently adopted legislation to allow licensed hemp farmers to grow and process cannabis for the adult use market with the aim to have product available once retail sales are permitted.
While the New York Office of Cannabis Management has yet to release the form of application (and any implementing regulations), that doesn’t mean that potential applicants should sit idly by and wait. In reviewing the legislation, its clear that there is plenty of work that can be done now.
Applicants that want to be well positioned to submit their applicant once the window opens, should among other things, consider the following items which will need to be in place as a part of the license award process:
- Environmental Sustainability Program
- Social Equity Membership Program
- Labor Peace Agreement
- Security Plan (and agreement with security company)
- Operations Plan and Procedures
In addition, potential applicants will need to think through the following issues:
- Correct corporate structure (LLC or corporation),
- Will capital be needed from outside investors or can the applicant self-finance its operations,
- Will the applicant use its existing property or will in need to lease or purchase additional land.
Given the stated desire not to miss the spring planting season, its likely that the application period will be relative short, so we advise potential applicants to start to consider all relevant factors as soon as possible.