A bill that would allow hemp farmers in New York to obtain licenses to grow adult-use cannabis was signed into law on Tuesday by Gov. Kathy Hochul. 

The new law has the potential to expand the number of licensed cannabis growers in the state just as the expected mutli-billion dollar market is about to take off in the state. 

"I am proud to sign this bill, which positions New York's farmers to be the first to grow cannabis and jumpstart the safe, equitable and inclusive new industry we are building," Hochul said. "New York State will continue to lead the way in delivering on our commitment to bring economic opportunity and growth to every New Yorker in every corner of our great state."   

The law will allow hemp growers to obtain conditional cultivation licenses to grow cannabis plants outdoors or in a greenhouse for up to two years. The measure will also allow farmers to manufacture and distribute cannabis flower products without an adult-use processor or distribution license until June 2023. 

The state's Office of Cannabis Management is developing a license application process and will open the program soon, Hochul's office said. The measure's approval comes less than a year after state lawmakers and then-Gov. Andrew Cuomo agreed to the passage of the Marijuana Regulation and Taxation Act, which set up the legal framework for the sale of adult-use marijuana products in New York. 

"This authority will help secure enough safe, regulated, and environmentally conscious cannabis products to meet the demand of the adult-use cannabis market when retail dispensaries open," Assembly Majority Leader Crystal Peoples-Stokes said. "Importantly, this legislation calls for a Social Equity Mentorship Program, which will create a viable and inclusive path for social and economic equity partners interested in cannabis cultivation and processing to gain invaluable knowledge and experience in this emerging industry."