New York is about to open an application window for adult-use cannabis nursery licenses, and it will not stay open long. Under proposed Resolution No. 2026-76, on the agenda for the Cannabis Control Board’s (CCB) October 1, 2026 meeting, the window would open on November 5, 2026 and close as soon as 50 applications have been submitted.
The resolution would also approve the application forms themselves, which the Office of Cannabis Management (OCM) will host on the New York Business Express (NYBE) portal. We reviewed screenshots of the draft NYBE nursery application. Below are the highlights a company should know before November 5.
How the window works: first 50 in
The window is effectively a race. As drafted, the resolution provides that:
- The application period opens November 5, 2026 and closes upon the 50th submission into OCM’s portal.
- Any application received after the first 50 “will not be considered to be filed with the Office.”
- Applicants who submit after the cap is hit get their application fees back.
Three details matter for planning. First, the resolution counts application submissions—not applications that have completed substantive review or been approved. It does not say what completeness or validation checks the NYBE portal will impose before an application can be submitted, so applicants should not assume there will be an opportunity to cure a rushed filing after securing one of the 50 slots. Second, the resolution sets one pool of 50; it does not split slots by license tier, region, or Social and Economic Equity (SEE) status, and it does not say how the Cannabis Law’s SEE priority will interact with a first-come cap. Third, the resolution is still a proposal until the Board votes, so the date and cap could change on October 1.
Who can apply
A nursery license authorizes the production and distribution of cannabis propagation materials—including clones, seedlings, immature plants, cloned propagation material, tissue culture and seeds—to other authorized cannabis licensees. Cannabis Law § 75 specifically identifies cultivators, cooperatives, microbusinesses and registered organizations, while the regulations also address sales and distributions to other nurseries and certain registered-organization license types. An existing adult-use cultivator may hold one (Cannabis Law § 75). The application opens with a series of yes/no eligibility screens, several of which flag threshold eligibility or cross-tier interest issues that should be resolved before filing:
- Retail-side licenses and cross-tier interests. The form asks whether the applicant holds a retail dispensary, on-site consumption, or delivery license. It then asks whether the applicant has any direct or indirect interest in, or is a true party of interest, passive investor, landlord, financier, or management services provider to, a retail dispensary, on-site consumption, delivery, registered organization, or cannabis laboratory licensee or permittee. Not every landlord or financing relationship necessarily creates a prohibited interest, but the breadth of the question means applicants should review those relationships carefully under Parts 123 and 124 before filing.
- One nursery license. The form asks whether the applicant already holds another adult-use nursery license. The regulations permit a nursery licensee to conduct licensed nursery activities at multiple premises, but a nursery may hold only one nursery license.
- Agriculture and Markets registration. The form asks whether the applicant holds a Nursery Grower Certificate of Registration from the Department of Agriculture and Markets. The regulations require one before Board licensure, not before the OCM application is filed. That is fortunate, because Agriculture and Markets says it will not accept cannabis nursery grower registrations until OCM nursery licenses are available, and it inspects the operation before issuing a certificate.
- Standard adult-use screens. Every owner must be at least 21, and the form asks about felony convictions in the past five years involving fraud, money laundering, forgery or other unlawful conduct related to owning or operating a business, as well as certain controlled-substance activity involving minors.
- Training. The form asks whether the applicant has completed any OCM workforce or training program, without saying how the answer will be used.
License types and fees
Applicants choose one of three nursery types, which track the tiers in 9 NYCRR § 120.3. Outdoor offers ten times the area of the other two at the lowest fee.
| Nursery type | Maximum nursery area (sq ft) | Fee shown on the form |
|---|---|---|
| Outdoor | 100,000 | $750 |
| Mixed-Light | 10,000 | $1,000 |
| Indoor | 10,000 | $2,000 |
The tier you pick carries through the rest of the application: the matching cultivation activity is pre-checked on the location page, and you must enter your planned canopy square footage under OCM’s canopy guidance.
The amounts shown above are license fees, not the application fee. Under OCM’s current fee schedule, an adult-use application generally carries a separate $1,000 application fee, while the nursery license fee is paid later, prior to final issuance of the license. Qualified SEE applicants receive a 50% reduction in application and license fees. Resolution 2026-76’s reference to refunding “application fees” therefore appears to refer to the fee paid with a submission that arrives after the 50-application cap has already been reached.
Application highlights
Much of the form follows the structure of OCM’s other adult-use applications. The items below are the ones most likely to slow an applicant down on November 5.
Ownership and true parties of interest
- A responsible party drives the TPI process. A principal officer, partner, or owner must be designated to complete the applicant’s entity history disclosure. Each true party of interest (TPI) listed there is then prompted to submit its own disclosure, so every TPI needs to be ready to respond.
- The TPI definition is broad. Beyond owners and officers, it reaches every level of a multilevel ownership structure, anyone who guarantees the applicant’s debts, spouses of certain individuals, and anyone whose annual payments under a risk-sharing or goods and services agreement exceed the greater of 10% of gross revenue, 50% of net profit, or $250,000.
- Passive investor thresholds. For a nursery applicant, a non-controlling investor holding no more than 20% of a privately held applicant, or 5% of a publicly traded applicant, may qualify as a passive investor, assuming the investor does not otherwise exercise control. Passive investors above 10% (private) or 5% (public), or who contribute to SEE status, must still be disclosed. Ownership is measured proportionally through intermediate entities and aggregated across family members and control persons.
- Cap table and history. Applicants must upload a capitalization table tracing every owner above 10% through all parent and holding entities to individuals, including anyone with vested future rights to ownership or revenue, and describe every ownership change since formation.
- Continuity plan. The form asks whether the applicant has a plan for owner departures or an inability to operate. It must be disclosed before final licensure.
Location and site control
- Having a site is asked, not assumed. The form asks whether the applicant currently has a proposed location. The screenshots show only the path for applicants that do, so it is not yet clear how a no-location filing will be treated.
- Proof of control. Applicants with a site give GPS coordinates for the center of the field or building and upload an executed deed or lease. If neither exists, an option to purchase or lease is accepted, which may be the most practical way to lock up a site before November 5.
- Other interests in the premises. The form asks about any partner, investor, lender, mortgage holder, or guarantor with an interest in the site, plus other businesses, licenses, or licensees at the same location.
- Can come later. A certificate of occupancy is not needed to file but must be provided before operations. A labor peace agreement is also required before OCM will issue the license.
Operations and other items
- Inventory-tracking vendor commitment up front. The applicant must name its point-of-sale or inventory-tracking system and upload a vendor contract or purchase order. This is a required field, so budget for the commitment before filing.
- Planned activities. Applicants check the activities they intend to conduct, including clones, seedlings, immature plants, tissue culture, and seeds.
- Signatures and ID. The application must be submitted by the individual applicant, an LLC’s managing member, a corporate officer, or all partners, with the front and back of a government photo ID whose name matches exactly.
- Advisers. The form asks whether any law firm, counsel, or consultant assisted with the application.
Getting ready for November 5
With only 50 slots, the applicants who get in will be the ones who can file submission-ready applications as soon as the window opens. Before the window opens:
- Form the applicant entity and make sure it is structured properly from the outset, including ownership, management, governance and any investor arrangements.
- Set up the NYBE business profile with every owner and principal entered, since the ownership pages pull from it.
- Review every owner, investor, lender, landlord and service-provider relationship for cross-tier and TPI issues, particularly any connection to retail dispensaries, on-site consumption, delivery, registered organizations or cannabis laboratories.
- Secure a site by deed, lease, or option, and gather its GPS coordinates and a list of anyone else with an interest in it.
- Identify an inventory-tracking system and be prepared to upload the required vendor contract or purchase order.
- Build the cap table and ownership history, designate the TPI responsible party, and line up every TPI’s disclosure.
- Commence the process of obtaining a labor peace agreement and plan for the Agriculture and Markets registration and inspection.
- Have ID images, SEE documentation, and any trade secret designations ready to upload.
Kaufman McGowan can assist prospective nursery applicants with each of these steps, including entity formation and structuring, ownership and TPI analysis, site-control documents, financing and investment arrangements, application preparation and related regulatory compliance. Given the 50-application cap, applicants considering this license should begin preparing well before the November 5 opening.
This post is based on a proposed resolution and draft application screens, both of which could change before November 5. We will be watching the October 1 vote and will share updates.
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About Neil M. Kaufman
Neil M. Kaufman is the managing member of Kaufman McGowan PLLC, Long Island’s Corporate & Securities Law Firm ™ and Corporate & Securities Counsel to the Cannabis Industry™. He is one of the leading corporate cannabis lawyers in New York and the USA and a fixture of the New York and Long Island corporate and securities legal community. He has been named one of the top cannabis lawyers in the world by Cannabis Law Report, a Cannabis Industry Power Player and was selected as a SuperLawyer 2015-2026. Learn more here!
About Sean J. McGowan
Sean J. McGowan is a partner in Kaufman McGowan PLLC, Long Island’s Corporate & Securities Law Firm ™ and Corporate & Securities Counsel to the Cannabis Industry™. He has been named one of the top cannabis lawyers in the world by Cannabis Law Report, a 40 under 40 recipient by Long Island Business News and was selected as NY Metro Rising Star 2020-2026. Learn more here!
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