S T A T E O F N E W Y O R K
________________________________________________________________________
8084--A
I N S E N A T E
January 25, 2022
___________
Introduced by Sens. HINCHEY, KRUEGER, RAMOS -- read twice and ordered
printed, and when printed to be committed to the Committee on Agricul-
ture -- reported favorably from said committee and committed to the
Committee on Rules -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the agriculture and markets law and the cannabis law, in
relation to providing a conditional adult-use cultivator license and a
conditional adult-use processor license
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 520 of the agriculture and markets law is amended
by adding a new subdivision 3 to read as follows:
3. THE DEPARTMENT SHALL, TO THE EXTENT PRACTICABLE, SHARE DATA AND
DOCUMENTATION RELATED TO AN AGRICULTURAL RESEARCH PILOT PROGRAM WITH THE
OFFICE OF CANNABIS MANAGEMENT.
§ 2. The cannabis law is amended by adding a new section 68-c to read
as follows:
§ 68-C. CONDITIONAL ADULT-USE CULTIVATOR LICENSE. 1. A CONDITIONAL
ADULT-USE CULTIVATOR LICENSE SHALL BE SUBJECT TO THE SAME AUTHORI-
ZATIONS, RESTRICTIONS AND REQUIREMENTS APPLIED TO ANY ADULT-USE CULTIVA-
TOR PURSUANT TO SECTION SIXTY-EIGHT OF THIS ARTICLE FOR THE DURATION OF
THE CONDITIONAL PERIOD OF THE LICENSE, AS WELL AS TO ANY NEW TERMS AND
CONDITIONS IMPOSED BY THE BOARD AND OFFICE.
2. TO BE ELIGIBLE TO APPLY FOR A CONDITIONAL ADULT-USE CULTIVATOR
LICENSE, A CULTIVATOR MUST:
(A) HAVE HELD A VALID INDUSTRIAL HEMP GROWER AUTHORIZATION FROM THE
DEPARTMENT OF AGRICULTURE AND MARKETS, AS OF DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-ONE, WHICH AUTHORIZED THE GROWING OF CANNABINOID HEMP,
AND IS IN GOOD STANDING WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS;
(B) HAVE GROWN AND HARVESTED HEMP FOR AT LEAST TWO OF THE PAST FOUR
YEARS PURSUANT TO THAT LICENSE AND BE ABLE TO PROVIDE PROOF, AS DEFINED
BY THE OFFICE, OF THE AMOUNT OF HEMP PLANTED BY THE APPLICANT DURING
EACH OF THE TWO YEARS THAT HEMP WAS GROWN; AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14348-09-2
S. 8084--A 2
(C) AS AN INDIVIDUAL APPLICANT HAVE AN OWNERSHIP INTEREST OF FIFTY-ONE
PERCENT OR MORE, OR AS ANY OTHER APPLICANT HAVE AN OWNERSHIP INTEREST OF
FIFTY-ONE PERCENT OR MORE OF THE ENTITY THAT IS THE LICENSEE.
3. A CONDITIONAL ADULT-USE CULTIVATOR LICENSE SHALL AUTHORIZE THE
CULTIVATION OF CANNABIS OUTDOORS OR IN A GREENHOUSE WITH NO MORE THAN
TWENTY ARTIFICIAL LIGHTS UNLESS OTHERWISE AUTHORIZED BY THE OFFICE. A
CONDITIONAL ADULT-USE CULTIVATOR LICENSEE MAY CULTIVATE UP TO FORTY-
THREE THOUSAND FIVE HUNDRED SIXTY SQUARE FEET OF FLOWERING CANOPY
OUTDOORS OR TWENTY-FIVE THOUSAND SQUARE FEET OF FLOWERING CANOPY IN A
GREENHOUSE. A CULTIVATOR MAY CULTIVATE BOTH OUTDOORS AND IN A GREEN-
HOUSE PROVIDED THE FLOWERING CANOPY IN A GREENHOUSE IS LESS THAN TWEN-
TY-THOUSAND SQUARE FEET AND THE TOTAL FLOWERING CANOPY IS EQUAL TO OR
LESS THAN THIRTY-THOUSAND SQUARE FEET.
4. A CONDITIONAL ADULT-USE CULTIVATOR LICENSEE MUST COMPLY WITH ANY
ENVIRONMENTAL STANDARDS AND REQUIREMENTS MANDATED BY THE OFFICE.
5. THE CULTIVATION OF CANNABIS SHALL ONLY BE PERMITTED WITHIN THE SAME
OR AN ADJACENT COUNTY IN WHICH THE CONDITIONAL ADULT-USE CULTIVATOR
LICENSEE HAD PREVIOUSLY BEEN AUTHORIZED BY THE DEPARTMENT OF AGRICULTURE
AND MARKETS TO GROW HEMP.
6. A CONDITIONAL ADULT-USE CULTIVATOR LICENSEE SHALL HAVE THE TEMPO-
RARY AUTHORITY TO MINIMALLY PROCESS AND DISTRIBUTE CANNABIS PRODUCTS,
PROVIDED THAT SUCH FINAL PRODUCTS SHALL BE IN THE FORM OF CANNABIS FLOW-
ER, WITHOUT HOLDING AN ADULT-USE PROCESSOR OR DISTRIBUTOR LICENSE ESTAB-
LISHED PURSUANT TO SECTIONS SIXTY-NINE AND SEVENTY-ONE OF THIS ARTICLE;
PROVIDED THAT THE LICENSEE COMPLIES WITH ALL REQUIREMENTS FOR THE PROC-
ESSING AND DISTRIBUTION OF CANNABIS PRODUCTS AS SET OUT BY THE BOARD IN
REGULATIONS OR IN THE TERMS AND CONDITIONS OF THE CONDITIONAL LICENSE.
SUCH AUTHORITY TO MINIMALLY PROCESS AND DISTRIBUTE CANNABIS PRODUCTS
EXPIRES ON JUNE FIRST, TWO THOUSAND TWENTY-THREE. AFTER JUNE FIRST, TWO
THOUSAND TWENTY-THREE, ANY CONDITIONAL ADULT-USE CULTIVATOR SEEKING TO
PROCESS AND DISTRIBUTE CANNABIS PRODUCTS SHALL BE REQUIRED TO APPLY FOR
AND RECEIVE A PROCESSOR AND DISTRIBUTOR LICENSE TO CONDUCT THIS ACTIV-
ITY.
7. FOR THE DURATION OF THE CONDITIONAL PERIOD OF THE CONDITIONAL
ADULT-USE CULTIVATOR LICENSE, THE OWNERSHIP OR ORGANIZATIONAL STRUCTURE
OF THE ENTITY THAT IS THE LICENSEE SHALL NOT BE AMENDED, EXCEPT PURSUANT
TO THE PROVISIONS OF SUBDIVISIONS TWO, THREE AND FOUR OF SECTION SIXTY-
SEVEN OF THIS ARTICLE.
8. THE OFFICE SHALL SET OUT SPECIFIC TERMS AND CONDITIONS SETTING OUT
REQUIREMENTS NECESSARY TO BE AWARDED AND MAINTAIN A CONDITIONAL ADULT-
USE CULTIVATOR LICENSE, INCLUDING BUT NOT LIMITED TO THE REQUIREMENT
THAT A LICENSEE AGREES TO PARTICIPATE IN AN ENVIRONMENTAL SUSTAINABILITY
PROGRAM AND A SOCIAL EQUITY MENTORSHIP PROGRAM. SUCH MENTORSHIP PROGRAM
SHALL BE DIRECTED TO TRAIN INDIVIDUALS INTERESTED IN BECOMING LICENSED
CULTIVATORS AND SHALL LEVERAGE REMOTE AND IN-PERSON MENTEES WITH EXPERI-
ENCE IN AGRICULTURE BUSINESS MANAGEMENT, SUSTAINABLE CANNABIS CULTI-
VATION, AND BEST PRACTICES. CANDIDATES FOR THE MENTORSHIP PROGRAM MUST
BE AT LEAST EIGHTEEN YEARS OF AGE, MUST BE A NEW YORK STATE RESIDENT,
AND MUST BE INDIVIDUALS THAT WOULD BE CONSIDERED SOCIAL EQUITY APPLI-
CANTS AS DEFINED BY SECTION EIGHTY-SEVEN OF THIS ARTICLE. THE LICENSE
TERMS AND CONDITIONS SET OUT BY THE OFFICE SHALL INCLUDE REQUIREMENTS
THAT A LICENSEE ENTER INTO A LABOR PEACE AGREEMENT WITH A BONA-FIDE
LABOR ORGANIZATION THAT IS ACTIVELY ENGAGED IN REPRESENTING OR ATTEMPT-
ING TO REPRESENT THE APPLICANT'S EMPLOYEES WITHIN SIX MONTHS OF LICEN-
SURE, THAT THE MAINTENANCE OF SUCH LABOR PEACE AGREEMENT SHALL BE AN
S. 8084--A 3
ONGOING MATERIAL CONDITION OF LICENSURE, AND THAT LICENSEES SHALL MEET
ANY OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE OFFICE.
9. THE BOARD SHALL ESTABLISH A NON-REFUNDABLE APPLICATION AND LICENSE
FEE, IN A MANNER CONSISTENT WITH SECTION SIXTY-THREE OF THIS ARTICLE,
FOR THE CONDITIONAL ADULT-USE CULTIVATOR LICENSE. NO SUCH LICENSE SHALL
BE ISSUED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO AND SUCH
LICENSE SHALL ONLY BE VALID THROUGH JUNE THIRTIETH, TWO THOUSAND TWEN-
TY-FOUR.
10. A CONDITIONAL ADULT-USE CULTIVATOR LICENSE SHALL BE DEEMED TO HAVE
BEEN SURRENDERED TO THE BOARD AND A CONDITIONAL ADULT-USE CULTIVATOR
LICENSEE SHALL BE DEEMED NOT TO BE IN GOOD STANDING, AS DETERMINED IN
THE DISCRETION OF THE EXECUTIVE DIRECTOR IN A WRITTEN NOTICE, EFFECTIVE
UPON DELIVERY TO THE LICENSEE AT THE LICENSEE'S LAST KNOWN ADDRESS ON
FILE WITH THE OFFICE, FOR REASONS INCLUDING BUT NOT LIMITED TO:
(A) FAILURE TO ABIDE BY ALL THE TERMS AND CONDITIONS OF THE CONDI-
TIONAL ADULT-USE CULTIVATOR LICENSE;
(B) FAILURE TO ADHERE TO ALL REQUIREMENTS SET OUT IN REGULATIONS AND
GUIDANCE, INCLUDING THOSE PROMULGATED AFTER RECEIVING THE CONDITIONAL
ADULT-USE CULTIVATOR LICENSE;
(C) FAILURE TO SUBMIT INFORMATION, RECORDS, OR REPORTS;
(D) FAILURE TO CORRECT DEFICIENCIES IN ACCORDANCE WITH AN APPROVED
CORRECTIVE ACTION PLAN;
(E) DEVIATION FROM REGULATIONS, LICENSING TERMS, OR STANDARD OPERATING
PROCEDURES IN A MANNER THAT THE OFFICE DETERMINES MAY JEOPARDIZE HEALTH
OR SAFETY OF THE PUBLIC, OR THE QUALITY OF PRODUCTS GROWN OR PRODUCED;
(F) FAILURE TO PROVIDE OFFICE EMPLOYEES WITH ACCESS TO THE PREMISES;
AND
(G) FAILURE TO BEGIN OPERATIONS WITHIN SIX MONTHS OF THE DATE OF THE
ISSUANCE OF THE LICENSE.
11. A LICENSEE WHOSE CONDITIONAL ADULT-USE CULTIVATOR LICENSE HAS BEEN
DEEMED SURRENDERED MAY WITHIN TEN DAYS OF THE DELIVERY DATE OF SUCH
NOTICE APPEAL THE DETERMINATION OF THE EXECUTIVE DIRECTOR TO THE BOARD
PURSUANT TO SUBDIVISION EIGHTEEN OF SECTION TEN OF THIS CHAPTER. THE
BOARD SHALL HAVE SOLE DISCRETION TO DETERMINE THE CONDUCT OF THE APPEAL,
WHICH SHALL INCLUDE NOTICE AND AN OPPORTUNITY TO BE HEARD. UPON REVIEW
BY THE BOARD, THE BOARD SHALL ISSUE A FINAL WRITTEN DETERMINATION WHICH
MAY THEN BE REVIEWED PURSUANT TO SECTION ONE HUNDRED THIRTY-FIVE OF THIS
CHAPTER AND ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
12. IN THE EVENT THAT A CONDITIONAL ADULT-USE CULTIVATOR LICENSEE
ELECTS TO CEASE OPERATION OF ALL PERMITTED ACTIVITIES OR TO SURRENDER
ITS LICENSE, THE FOLLOWING PROVISIONS SHALL APPLY:
(A) THE CONDITIONAL ADULT-USE CULTIVATOR LICENSEE SHALL NOTIFY THE
OFFICE IN WRITING AT LEAST THIRTY DAYS PRIOR TO THE ANTICIPATED DATE OF
CLOSURE;
(B) SUCH WRITTEN NOTICE SHALL INCLUDE A PROPOSED PLAN FOR CLOSURE. THE
PLAN SHALL BE SUBJECT TO OFFICE APPROVAL AND SHALL INCLUDE TIMETABLES
AND DESCRIBE THE PROCEDURES AND ACTIONS THE LICENSEE SHALL TAKE TO PROP-
ERLY DESTROY OR OTHERWISE DISPOSE OF ALL THE LICENSEE'S SUPPLY OF CANNA-
BIS AND/OR CANNABIS PRODUCTS; AND
(C) THE LICENSEE OR FORMER LICENSEE MUST MAINTAIN AND MAKE AVAILABLE
TO THE OFFICE ALL RECORDS RELATED TO THE CULTIVATION OF CANNABIS FOR A
PERIOD OF THREE YEARS.
13. NO LATER THAN NINETY DAYS BEFORE THE EXPIRATION OF A CONDITIONAL
ADULT-USE CULTIVATOR LICENSE, THE OFFICE SHALL, PURSUANT TO A REQUEST BY
THE LICENSEE, REVIEW THE CONDITIONAL ADULT-USE CULTIVATOR LICENSEE TO
DETERMINE WHETHER THEY ARE IN GOOD STANDING WITH THE OFFICE. GOOD STAND-
S. 8084--A 4
ING SHALL INCLUDE, BUT NOT BE LIMITED TO, COMPLIANCE WITH SUBDIVISION
SEVEN OF THIS SECTION. ANY LICENSEE FOUND TO BE IN GOOD STANDING SHALL
BE ELIGIBLE TO APPLY FOR AND RECEIVE AN ADULT-USE CULTIVATION LICENSE,
PROVIDED THE LICENSEE CAN MEET ALL REQUIREMENTS OF THE NEW LICENSE. SUCH
A LICENSEE WILL RECEIVE, AT MINIMUM, AN ADULT-USE CULTIVATOR LICENSE FOR
THE SIZE OF FLOWERING CANOPY THAT THEY WERE LICENSED TO GROW PURSUANT TO
THEIR CONDITIONAL ADULT-USE CULTIVATOR LICENSE OR A LARGER SIZE FLOWER-
ING CANOPY AND AUTHORIZATION TO USE ARTIFICIAL LIGHT AS MAY BE SET OUT
BY THE BOARD IN REGULATION. A LICENSEE MAY NOT SEPARATELY APPLY FOR ANY
LICENSE TYPE UNDER THIS ARTICLE PERMITTING THE CULTIVATION OF ADULT-USE
CANNABIS WHILE HOLDING A CONDITIONAL ADULT-USE CULTIVATOR LICENSE.
14. FOR THE PURPOSES OF THIS SECTION, THE OFFICE HAS THE AUTHORITY TO
DEFINE TERMS INCLUDING BUT NOT LIMITED TO "GREENHOUSE", "IMMATURE
PLANT", "FLOWERING CANOPY" AS PART OF THE TERMS AND CONDITIONS OF THE
CONDITIONAL ADULT-USE CULTIVATOR LICENSE.
15. NOTHING HEREIN SHALL LIMIT THE AUTHORITY, POWER, OR OTHER RIGHTS
OR REMEDIES OF THE BOARD OR OFFICE.
§ 3. Section 69 of the cannabis law is amended to read as follows:
§ 69. Adult-use processor license. 1. A processor's license shall
authorize the acquisition, possession, processing and sale of cannabis
from the licensed premises of the adult-use cultivator by such licensee
to duly licensed processors or distributors. A person holding an adult-
use processor's license may apply for, and obtain, one distributor's
license solely for the distribution of their own products.
2. For purposes of this section, processing shall include, but not be
limited to, blending, extracting, infusing, packaging, labeling, brand-
ing and otherwise making or preparing cannabis products. Processing
shall not include the cultivation of cannabis.
3. No processor shall be engaged in any other business on the premises
to be licensed; except that a person issued an adult-use cannabis culti-
vator, processor, and/or distributor license OR A PROCESSOR WHO HAS ALSO
BEEN ISSUED A HEMP GROWER LICENSE BY THE DEPARTMENT OF AGRICULTURE AND
MARKETS OR A CANNABINOID HEMP PROCESSOR LICENSE UNDER THIS CHAPTER may
hold and operate all issued licenses on the same premises.
4. No cannabis processor licensee may hold more than one cannabis
processor license provided a single license may authorize processor
activities at multiple locations, as set out in regulations by the
board.
5. No adult-use cannabis processor shall have a direct or indirect
interest, including by stock ownership, interlocking directors, mortgage
or lien, personal or real property, management agreement, share parent
companies or affiliated organizations or any other means, in any prem-
ises licensed as an adult-use cannabis retail dispensary or in any busi-
ness licensed as an adult-use cannabis retail dispensary or in any
registered organization registered pursuant to article three of this
chapter.
6. Adult-use processor licensees are subject to minimum operating
requirements as determined by the board in regulation.
§ 4. The cannabis law is amended by adding a new section 69-a to read
as follows:
§ 69-A. CONDITIONAL ADULT-USE PROCESSOR LICENSE. 1. A CONDITIONAL
ADULT-USE PROCESSOR LICENSE SHALL BE SUBJECT TO THE SAME AUTHORIZATIONS,
RESTRICTIONS AND REQUIREMENTS APPLIED TO ANY ADULT-USE PROCESSOR PURSU-
ANT TO SECTION SIXTY-NINE OF THIS ARTICLE FOR THE DURATION OF THE CONDI-
TIONAL PERIOD OF THE LICENSE, AS WELL AS TO ANY NEW TERMS AND CONDITIONS
IMPOSED BY THE BOARD AND OFFICE.
S. 8084--A 5
2. TO BE ELIGIBLE TO APPLY FOR A CONDITIONAL ADULT-USE PROCESSOR
LICENSE, A PROCESSOR MUST:
(A) HAVE APPLIED FOR A CANNABINOID HEMP PROCESSOR LICENSE PURSUANT TO
SECTION NINETY-TWO OF THIS CHAPTER BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-TWO;
(B) HOLD AN ACTIVE CANNABINOID HEMP PROCESSOR LICENSE ISSUED BY THE
OFFICE; AND
(C) AS AN INDIVIDUAL APPLICANT HAVE AN OWNERSHIP INTEREST OF FIFTY-ONE
PERCENT OR MORE, OR AS ANY OTHER APPLICANT HAVE AN OWNERSHIP INTEREST OF
FIFTY-ONE PERCENT OR MORE OF THE ENTITY THAT IS THE LICENSEE.
3. A CONDITIONAL ADULT-USE PROCESSOR LICENSE SHALL AUTHORIZE THE PROC-
ESSING AND MANUFACTURING OF CANNABIS PRODUCTS PROVIDED THE LICENSEE
COMPLIES WITH ALL REQUIREMENTS FOR THE PROCESSING AND MANUFACTURE OF
CANNABIS PRODUCTS AS SET OUT BY THE BOARD. A CONDITIONAL ADULT-USE
PROCESSOR LICENSEE SHALL ONLY PERFORM EXTRACTION ACTIVITIES IF AUTHOR-
IZED TO UNDER THE LICENSEE'S CANNABINOID HEMP PROCESSOR LICENSE AND ALL
EXTRACTION METHODS ARE SUBJECT TO OFFICE APPROVAL.
4. A CONDITIONAL ADULT-USE PROCESSOR LICENSEE MUST COMPLY WITH ANY
ENVIRONMENTAL STANDARDS AND REQUIREMENTS AS MANDATED BY THE OFFICE.
5. THE PROCESSING OF CANNABIS SHALL ONLY BE PERMITTED AT THE SAME
LOCATION IN WHICH THE CONDITIONAL ADULT-USE PROCESSOR LICENSEE IS
AUTHORIZED TO PROCESS HEMP, UNLESS EXPRESSLY AUTHORIZED BY THE OFFICE.
6. A CONDITIONAL ADULT-USE PROCESSOR LICENSEE SHALL HAVE THE AUTHORITY
TO DISTRIBUTE CANNABIS PRODUCTS WITHOUT HOLDING AN ADULT-USE DISTRIBUTOR
LICENSE ESTABLISHED PURSUANT TO SECTION SEVENTY-ONE OF THIS ARTICLE
UNTIL JUNE FIRST, TWO THOUSAND TWENTY-THREE, PROVIDED THAT THE LICENSEE
COMPLIES WITH ALL REQUIREMENTS FOR THE DISTRIBUTION OF CANNABIS PRODUCTS
AS SET OUT BY THE OFFICE. AFTER JUNE FIRST, TWO THOUSAND TWENTY-THREE,
ANY CONDITIONAL PROCESSOR SEEKING TO DISTRIBUTE CANNABIS PRODUCTS SHALL
BE REQUIRED TO APPLY FOR AND RECEIVE A DISTRIBUTOR LICENSE TO CONDUCT
THIS ACTIVITY.
7. FOR THE DURATION OF THE CONDITIONAL PERIOD OF THE CONDITIONAL
ADULT-USE PROCESSOR LICENSE, THE OWNERSHIP OR ORGANIZATIONAL STRUCTURE
OF THE ENTITY THAT IS THE LICENSEE SHALL NOT BE AMENDED, EXCEPT PURSUANT
TO THE PROVISIONS OF SUBDIVISIONS TWO, THREE AND FOUR OF SECTION SIXTY-
SEVEN OF THIS ARTICLE.
8. THE OFFICE SHALL SET OUT SPECIFIC TERMS AND CONDITIONS SETTING OUT
REQUIREMENTS NECESSARY TO BE AWARDED AND MAINTAIN A CONDITIONAL ADULT-
USE PROCESSOR LICENSE, INCLUDING BUT NOT LIMITED TO THE REQUIREMENT THAT
A LICENSEE AGREES TO PARTICIPATE IN AN ENVIRONMENTAL SUSTAINABILITY
PROGRAM AND A SOCIAL EQUITY MENTORSHIP PROGRAM. SUCH PROGRAM SHALL BE
DIRECTED TO TRAIN INDIVIDUALS INTERESTED IN BECOMING LICENSED PROCESSORS
AND SHALL LEVERAGE REMOTE AND IN-PERSON ENGAGEMENT TO PROVIDE MENTEES
WITH EXPERIENCE IN PROCESSING TECHNIQUES AND GOOD MANUFACTURING PRAC-
TICES. CANDIDATES FOR THE MENTORSHIP PROGRAM MUST BE AT LEAST EIGHTEEN
YEARS OF AGE, MUST BE A NEW YORK STATE RESIDENT, AND MUST BE INDIVIDUALS
THAT WOULD BE CONSIDERED SOCIAL EQUITY APPLICANTS AS DEFINED BY SECTION
EIGHTY-SEVEN OF THIS ARTICLE. THE LICENSE TERMS AND CONDITIONS SET OUT
BY THE OFFICE SHALL INCLUDE REQUIREMENTS THAT A LICENSEE ENTER INTO A
LABOR PEACE AGREEMENT WITH A BONA-FIDE LABOR ORGANIZATION THAT IS
ACTIVELY ENGAGED IN REPRESENTING OR ATTEMPTING TO REPRESENT THE APPLI-
CANT'S EMPLOYEES WITHIN SIX MONTHS OF LICENSURE, THAT THE MAINTENANCE OF
SUCH LABOR PEACE AGREEMENT SHALL BE AN ONGOING MATERIAL CONDITION OF
LICENSURE, AND THAT LICENSEES SHALL MEET ANY OTHER ELIGIBILITY REQUIRE-
MENTS ESTABLISHED BY THE OFFICE.
S. 8084--A 6
9. THE BOARD SHALL ESTABLISH A NON-REFUNDABLE APPLICATION AND LICENSE
FEE, IN A MANNER CONSISTENT WITH SECTION SIXTY-THREE OF THIS ARTICLE,
FOR THE CONDITIONAL ADULT-USE PROCESSOR LICENSE. NO SUCH LICENSE SHALL
BE ISSUED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO AND SUCH
LICENSE SHALL ONLY BE VALID THROUGH JUNE THIRTIETH, TWO THOUSAND TWEN-
TY-FOUR.
10. A CONDITIONAL ADULT-USE PROCESSOR LICENSE SHALL BE DEEMED TO HAVE
BEEN SURRENDERED TO THE BOARD AND A CONDITIONAL ADULT-USE PROCESSOR
LICENSEE SHALL BE DEEMED NOT TO BE IN GOOD STANDING, AS DETERMINED IN
THE DISCRETION OF THE EXECUTIVE DIRECTOR IN A WRITTEN NOTICE, EFFECTIVE
UPON DELIVERY TO THE LICENSEE AT THE LICENSEE'S LAST KNOWN ADDRESS ON
FILE WITH THE OFFICE, FOR REASONS INCLUDING BUT NOT LIMITED TO:
(A) FAILURE TO ABIDE BY ALL THE TERMS AND CONDITIONS OF THE CONDI-
TIONAL ADULT-USE PROCESSOR LICENSE;
(B) FAILURE TO ADHERE TO ALL REQUIREMENTS SET OUT IN REGULATIONS AND
GUIDANCE, INCLUDING THOSE PROMULGATED AFTER RECEIVING THE CONDITIONAL
ADULT-USE PROCESSOR LICENSE;
(C) FAILURE TO SUBMIT INFORMATION, RECORDS, OR REPORTS;
(D) FAILURE TO CORRECT DEFICIENCIES IN ACCORDANCE WITH AN APPROVED
CORRECTIVE ACTION PLAN;
(E) DEVIATION FROM REGULATIONS, LICENSING TERMS, OR STANDARD OPERATING
PROCEDURES IN A MANNER THE OFFICE DETERMINES MAY JEOPARDIZE HEALTH OR
SAFETY OF THE PUBLIC, OR THE QUALITY OF PRODUCTS PRODUCED;
(F) FAILURE TO PROVIDE OFFICE EMPLOYEES WITH ACCESS TO THE PREMISES;
AND
(G) FAILURE TO BEGIN OPERATIONS WITHIN SIX MONTHS OF THE DATE OF THE
ISSUANCE OF THE LICENSE.
11. A LICENSEE WHOSE CONDITIONAL ADULT-USE PROCESSOR LICENSE HAS BEEN
DEEMED SURRENDERED MAY WITHIN TEN DAYS OF THE DELIVERY DATE OF SUCH
NOTICE APPEAL THE DETERMINATION OF THE EXECUTIVE DIRECTOR TO THE BOARD
PURSUANT TO SUBDIVISION EIGHTEEN OF SECTION TEN OF THIS CHAPTER. THE
BOARD SHALL HAVE SOLE DISCRETION TO DETERMINE THE CONDUCT OF THE APPEAL,
WHICH SHALL INCLUDE NOTICE AND AN OPPORTUNITY TO BE HEARD. UPON REVIEW
BY THE BOARD, THE BOARD SHALL ISSUE A FINAL WRITTEN DETERMINATION WHICH
MAY THEN BE REVIEWED PURSUANT TO SECTION ONE HUNDRED THIRTY-FIVE OF THIS
CHAPTER AND ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
12. IN THE EVENT THAT A CONDITIONAL ADULT-USE PROCESSOR LICENSEE
ELECTS TO CEASE OPERATION OF ALL PERMITTED ACTIVITIES OR TO SURRENDER
ITS LICENSE, THE FOLLOWING PROVISIONS SHALL APPLY:
(A) THE CONDITIONAL ADULT-USE PROCESSOR LICENSEE SHALL NOTIFY THE
OFFICE IN WRITING AT LEAST THIRTY DAYS PRIOR TO THE ANTICIPATED DATE OF
CLOSURE;
(B) SUCH WRITTEN NOTICE SHALL INCLUDE A PROPOSED PLAN FOR CLOSURE. THE
PLAN SHALL BE SUBJECT TO OFFICE APPROVAL AND SHALL INCLUDE TIMETABLES
AND DESCRIBE THE PROCEDURES AND ACTIONS THE LICENSEE SHALL TAKE TO PROP-
ERLY DESTROY OR OTHERWISE DISPOSE OF ALL THE LICENSEE'S SUPPLY OF CANNA-
BIS AND/OR CANNABIS PRODUCTS; AND
(C) THE LICENSEE OR FORMER LICENSEE MUST MAINTAIN AND MAKE AVAILABLE
TO THE OFFICE ALL RECORDS RELATED TO THE CULTIVATION OF CANNABIS FOR A
PERIOD OF THREE YEARS.
13. NO LATER THAN NINETY DAYS BEFORE THE EXPIRATION OF A CONDITIONAL
ADULT-USE PROCESSOR LICENSE, THE OFFICE SHALL, PURSUANT TO A REQUEST BY
THE LICENSEE, REVIEW THE CONDITIONAL ADULT-USE PROCESSOR LICENSEE TO
DETERMINE WHETHER THEY ARE IN GOOD STANDING WITH THE OFFICE. GOOD STAND-
ING SHALL INCLUDE, BUT NOT BE LIMITED TO, COMPLIANCE WITH SUBDIVISION
SEVEN OF THIS SECTION. ANY LICENSEE FOUND TO BE IN GOOD STANDING SHALL
S. 8084--A 7
BE ELIGIBLE TO APPLY FOR AND RECEIVE AN ADULT-USE PROCESSOR LICENSE,
PROVIDED THE LICENSEE CAN MEET ALL REQUIREMENTS OF THE NEW LICENSE.
14. FOR THE PURPOSES OF THIS SECTION, THE OFFICE HAS THE AUTHORITY TO
DEFINE TERMS INCLUDING BUT NOT LIMITED TO "EXTRACTION" AS PART OF THE
TERMS AND CONDITIONS OF THE CONDITIONAL ADULT-USE PROCESSOR LICENSE.
15. NOTHING IN THIS SECTION SHALL LIMIT THE AUTHORITY, POWER, OR OTHER
RIGHTS OR REMEDIES OF THE BOARD OR OFFICE.
§ 5. The cannabis control board shall provide a report on the condi-
tional cultivator and processor licenses as provided for by this act.
Such report shall include, but not be limited to: the number of condi-
tional licenses applied for by geographic region and approved by the
board; the revenue received from such conditional licenses from fees and
taxation related to cultivation, distribution, and eventual sale of
adult-use cannabis; the number of individuals, if any, that transition
from a conditional license to other licenses issued by the board and the
types of licenses awarded; the number of applicants determined to be
social equity applicants that applied for and received a conditional
cultivator and processor license; the effectiveness and participation
data related to the social equity mentoring program; and other such data
and information that the board deems necessary and appropriate. Such
report shall be published on the office's website and presented to the
governor, the majority leader of the senate and the speaker of the
assembly, no later than January 1, 2023 and again on January 1, 2024.
Nothing shall preclude the office from providing such reporting as part
of the annual report required by the board pursuant to section ten of
the cannabis law, provided, however, that the information required by
this act shall be clearly separate from other reporting.
§ 6. This act shall take effect immediately, provided however, that
the provisions of sections two and four of this act shall expire on June
30, 2024 when upon such date the provisions of such sections shall be
deemed repealed.
