Governor Hochul Announces The Office of Cannabis Management Seeding Opportunity Initiative

 

First-In-the-Nation Initiative Positions New York Farmers and Individuals with Prior Cannabis-Related Offenses to Comprise Early Adult-Use Cannabis Supply Chain  

Initiative Furthered by Cannabis Control Board’s Advancing to Public Comment Regulations for the Initiative's Adult-Use Dispensaries  

Initiative Advanced by the Board’s Approval of the Conditional License Applications for Hemp Farmers to Grow Adult-Use Cannabis in Spring 2022, Application Portal Set to Open March 15 

 Governor Kathy Hochul today announced the first-in-the-nation Seeding Opportunity Initiative, which will position individuals with prior cannabis-related criminal offenses to make the first adult-use cannabis sales with products grown by New York farmers. This farm-to-store initiative makes sales in New York possible before the end of 2022, jumpstarts New York’s Cannabis Industry, guarantees support for future equity applicants, and secures an early investment into communities most impacted by the disproportionate enforcement of cannabis prohibition.   

"New York State is making history, launching a first-of-its-kind approach to the cannabis industry that takes a major step forward in righting the wrongs of the past," Governor Hochul said. "The regulations advanced by the Cannabis Control Board today will prioritize local farmers and entrepreneurs, creating jobs and opportunity for communities that have been left out and left behind. I'm proud New York will be a national model for the safe, equitable and inclusive industry we are now building."

The Cannabis Control Board at its meeting today advanced two components of the Seeding Opportunity Initiative.  

First, it advanced to public comment regulations for Conditional Adult-Use Retail Dispensaries. As part of the Seeding Opportunity Initiative, this subset of dispensaries must be owned by equity-entrepreneurs with a prior cannabis-related criminal offense who also have a background owning and operating a small business. They will be the first to open and make sales in New York State, establishing equity-owned businesses at the front-end of New York’s adult-use market.  

Second, the Board approved a license application for hemp farmers seeking to grow adult-use cannabis this spring – called the Adult-Use Conditional Cultivator License. The license was made possible by legislation Governor Hochul signed last month. The Board designated March 15 as the opening date for the application portal.  

Cannabis Control Board Chair Tremaine Wright said, “Our state’s Cannabis Law sets a high goal for creating an equitable industry that puts New Yorkers first. The Seeding Opportunity Initiative puts us on a path for achieving that goal and hopefully models a way forward for reaching those goals while building a stable market. I am thankful for the support of Governor Hochul and the Legislature, which made it possible for us to get this initiative off the ground quickly, establish a supply chain from our farmers to equity, retailers, and generate the resources to help revitalize communities that were harmed by the disproportionate enforcement of cannabis prohibition.”  

Office of Cannabis Management (OCM) Executive Director Chris Alexander said, “With the Seeding Opportunity Initiative, we are now on the path to doing what no state has done before: Put our farmers and equity entrepreneurs, not big, out of state businesses, at the forefront of the launch of our adult-use cannabis market. Thanks to the support of Governor Hochul and the action taken by the Board today, we’ve made a huge advancement in our efforts to prioritize New York’s small farmers, our equity entrepreneurs, and ultimately our goal to generate the resources that will support future equity applicants and drive investments into our communities most impacted by cannabis prohibition. We aren’t stopping here and work is already underway across all license types to open access to capital and develop supporting networks to build an equitable New York Cannabis Industry and setup our small businesses for long-term success.” 

The Seeding Opportunity Initiative is composed of three programs: 

• Equity Owners Lead Program: Provides a Conditional Adult-Use Retail Dispensary License to eligible equity-entrepreneur applicants, putting them at the front-end of the adult-use market. This first-round, equity-licensing opportunity will be supported with renovated or renovation-ready retail locations and wraparound services with dispensaries sited in high-traffic areas.  

Applications for these priority licenses will open in the Summer of 2022. The first licenses are expected to be distributed by late summer or early fall 2022. This positions equity-entrepreneur-owned dispensaries to make the first adult-use cannabis sales in New York State by the end of 2022 while speeding the delivery of investments into communities across the state that were most impacted by the disproportionate enforcement of cannabis prohibition. 

The Board today directed the OCM to post for public comment the proposed regulations for the Conditional Adult-Use Retail Dispensary License. Under the proposed regulations, to be eligible for this initial license, applicants must:  

• Have a cannabis-related offense that occurred prior to the passage of the Marijuana Regulation and Tax Act (MRTA) on March 31, 2021 , or had a parent, guardian, child, spouse, or dependent with a pre-MRTA cannabis offense in the State of New York.  
• Have experience owning and operating a qualifying business in the State of New York.  

Additionally, the regulations include information for what application materials will be needed to apply for a Conditional Adult-Use Retail Dispensary License and sets the parameters for how the Office will review and evaluate applications. A subsequent regulation package will outline the requirements for safely operating a retail dispensary. 

• Farmers First Program:  Provides an Adult-Use Conditional Cultivator License to eligible New York cannabinoid hemp farmers, giving them the first chance to grow cannabis for New York’s adult-use market. Farmers must adhere to quality assurance, health, and safety requirements developed by the OCM. They must also take part in sustainability and equity mentorship programs that will help build the first generation of equity cannabis owners across the entire supply chain. These conditional licenses make it possible for farmers to grow cannabis in the 2022 growing season. 

The Board today approved the application for the Adult-Use Conditional Cultivator License and set the opening of the application portal for March 15. The license was made possible by legislation recently signed by Governor Hochul on February 22. Further information on eligibility requirements and what’s allowed with the license can be found here.  

• The New York Social Equity Cannabis Investment Program: Governor Hochul proposed this $200 million program in her FY 2023 Executive Budget, the nation’s first to make funding available for equity entrepreneurs at the forefront of the adult-use cannabis market. Through the program, industry licensing fees and private equity would support the development of dispensary facilities for equity-entrepreneurs with a Conditional Adult-Use Retail Dispensary License.  Under the proposal, the Dormitory Authority of the State of New York (DASNY) would provide support with its leasing and construction services to site dispensaries at prime locations and renovate them to meet health, safety, and security requirements. The Social Equity Cannabis Investment Program’s funding and accompanying services would reduce barriers to entry and position these equity-entrepreneur owners for long-term success. The proposal remains under discussion with the Legislature.