§ 70. Adult-use cooperative license. 1. A cooperative license shall\nauthorize the acquisition, possession, cultivation, processing,\ndistribution and sale from the licensed premises of the adult-use\ncooperative by such licensee to duly licensed distributors, on-site\nconsumption sites, registered organization and/or retail dispensaries;\nbut not directly to cannabis consumers.\n 2. To be licensed as an adult-use cooperative, the cooperative must:\n (a) be comprised of residents of the state of New York as a limited\nliability company or limited liability partnership under the laws of the\nstate, or an appropriate business structure as determined and authorized\nby the board;\n (b) subordinate capital, both as regards control over the cooperative\nundertaking, and as regards the ownership of the pecuniary benefits\narising therefrom;\n (c) be democratically controlled by the members themselves on the\nbasis of one vote per member;\n (d) vest in and allocate with priority to and among the members of all\nincreases arising from their cooperative endeavor in proportion to the\nmembers' active participation in the cooperative endeavor; and\n (e) the cooperative must operate according to the seven cooperative\nprinciples published by the International Cooperative Alliance in\nnineteen hundred ninety-five.\n 3. A cooperative member shall be a natural person and shall not be a\nmember of more than one adult-use cooperative licensed pursuant to this\nsection.\n 4. No natural person or member of an adult-use cooperative license may\nhave a direct or indirect financial or controlling interest in any other\nadult-use cannabis license issued pursuant to this chapter.\n 5. No adult-use cannabis cooperative shall have a direct or indirect\ninterest, including by stock ownership, interlocking directors, mortgage\nor lien, personal or real property, or any other means, in any premises\nlicensed as an adult-use cannabis retail dispensary or in any business\nlicensed as an adult-use cannabis retail dispensary pursuant to this\nchapter.\n 6. The board shall promulgate regulations governing cooperative\nlicenses, including, but not limited to, the establishment of canopy\nlimits on the size and scope of cooperative licensees, and other\nmeasures designed to incentivize the use and licensure of cooperatives.\n
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