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Cannabis Brands Beware – Branding/White Labeling in NY Requires Application Submittal By Dec. 18

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New York, like many other states, have different processing licenses for different segments of the processing supply chain. New York has a tiered approach, with three (3)different types of processing licenses. Type 3 Processors are for those seeking to package, label, and/or engage in branding, including those simply entering into white labeling agreements only.

Type 2 Processors are those looking to infuse and blend, in addition to those activities permitted under Type 3. And Type 1 Processors are those looking to do extracting, in addition to Types 2 and 3. 

One area of ambiguity was both whether brands would be required to submit applications for Type 3 Processing Licenses, and how. Indeed, one of the threshold requirements of applicants for any processing license was site control, with OCM previously making plain in guidance that all such applicants were required to have site control designated in the application, suggesting that only operating companies within the State were required to apply. 

However, OCM has subsequently clarified through updated guidance and public statements that no formal site control is required for brands and that they are, in fact, required to apply for a Type 3 Processing License simply to brand and/or white label within the New York market. 


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