N.Y. Cannabis Law § 70: Adult-use cooperative license

§ 70. Adult-use cooperative license. 1. A cooperative license shall

authorize the acquisition, possession, cultivation, processing,

distribution and sale from the licensed premises of the adult-use

cooperative by such licensee to duly licensed distributors, on-site

consumption sites, registered organization and/or retail dispensaries;

but not directly to cannabis consumers.

2. To be licensed as an adult-use cooperative, the cooperative must:

(a) be comprised of residents of the state of New York as a limited

liability company or limited liability partnership under the laws of the

state, or an appropriate business structure as determined and authorized

by the board;

(b) subordinate capital, both as regards control over the cooperative

undertaking, and as regards the ownership of the pecuniary benefits

arising therefrom;

(c) be democratically controlled by the members themselves on the

basis of one vote per member;

(d) vest in and allocate with priority to and among the members of all

increases arising from their cooperative endeavor in proportion to the

members' active participation in the cooperative endeavor; and

(e) the cooperative must operate according to the seven cooperative

principles published by the International Cooperative Alliance in

nineteen hundred ninety-five.

3. A cooperative member shall be a natural person and shall not be a

member of more than one adult-use cooperative licensed pursuant to this

section.

4. No natural person or member of an adult-use cooperative license may

have a direct or indirect financial or controlling interest in any other

adult-use cannabis license issued pursuant to this chapter.

5. No adult-use cannabis cooperative shall have a direct or indirect

interest, including by stock ownership, interlocking directors, mortgage

or lien, personal or real property, or any other means, in any premises

licensed as an adult-use cannabis retail dispensary or in any business

licensed as an adult-use cannabis retail dispensary pursuant to this

chapter.

6. The board shall promulgate regulations governing cooperative

licenses, including, but not limited to, the establishment of canopy

limits on the size and scope of cooperative licensees, and other

measures designed to incentivize the use and licensure of cooperatives.