N.Y. Cannabis Law § 77: Adult-use on-site consumption license; provisions governing on-site consumption licenses

§ 77. Adult-use on-site consumption license; provisions governing

on-site consumption licenses. 1. No applicant shall be granted an

adult-use on-site consumption license for any premises, unless the

applicant shall be the owner thereof, or shall be in possession of said

premises under a lease, in writing, for a term not less than the license

period except, however, that such license may thereafter be renewed

without the requirement of a lease as provided in this section. This

subdivision shall not apply to premises leased from government agencies;

provided, however, that the appropriate administrator of such government

agency provides some form of written documentation regarding the terms

of occupancy under which the applicant is leasing said premises from the

government agency for presentation to the office at the time of the

license application. Such documentation shall include the terms of

occupancy between the applicant and the government agency, including,

but not limited to, any short-term leasing agreements or written

occupancy agreements.

2. No person may have a direct or indirect financial or controlling

interest in more than three adult-use on-site consumption licenses

issued pursuant to this chapter.

3. No person holding an adult-use on-site consumption license may also

hold an adult-use retail dispensary, cultivation, processor,

microbusiness, cooperative or distributor license pursuant to this

article or be registered as a registered organization pursuant to

article three of this chapter.

4. No applicant shall be granted an adult-use on-site consumption

license for any premises within five hundred feet of school grounds as

such term is defined in the education law or two hundred feet from a

house of worship.

5. The board may consider any or all of the following in determining

whether public convenience and advantage and the public interest will be

promoted by the granting of an adult-use on-site consumption license at

a particular location:

(a) that it is a privilege, and not a right, to cultivate, process,

distribute, and sell cannabis;

(b) the number, classes, and character of other licenses in proximity

to the location and in the particular municipality or subdivision

thereof;

(c) evidence that all necessary licenses and permits have been

obtained from the state and all other governing bodies;

(d) whether there is a demonstrated need for spaces to consume

cannabis;

(e) effect of the grant of the license on pedestrian or vehicular

traffic, and parking, in proximity to the location;

(f) the existing noise level at the location and any increase in noise

level that would be generated by the proposed premises; and

(g) any other factors specified by law or regulation that are relevant

to determine that granting a license would promote public convenience

and advantage and the public interest of the community.

6. If the board shall disapprove an application for an on-site

consumption license, it shall state and file in its offices the reasons

therefor and shall notify the applicant thereof. Such applicant may

thereupon apply to the board for a review of such action in a manner to

be prescribed by the rules of the board.

7. No adult-use cannabis on-site consumption licensee shall keep upon

the licensed premises any adult-use cannabis products except those

purchased from a licensed adult-use distributor; registered organization

adult-use cultivator processor distributor retail dispenser; registered

organization adult-use cultivator, processor and distributor;

cooperative, or microbusiness authorized to sell adult-use cannabis, and

only in containers approved by the board. Such containers shall have

affixed thereto such labels as may be required by the rules of the

board. No adult-use on-site consumption licensee shall reuse, refill,

tamper with, adulterate, dilute or fortify the contents of any container

of cannabis products as received from the manufacturer or distributor.

8. No adult-use on-site consumption licensee shall sell, deliver or

give away, or cause or permit or procure to be sold, delivered or given

away any cannabis for consumption on the premises where sold in a

container or package containing a quantity or number of servings more

than authorized by the board.

9. No adult-use on-site consumption licensee shall suffer, permit or

promote activities or events on its premises wherein any person shall

use such premises for activities including, but not limited to,

gambling, exposing or simulating, contests, or fireworks that are

prohibited by subdivision six, six-a, six-b, six-c or seven of section

one hundred six of the alcoholic beverage control law or any other

similar activities the board deems to be prohibited.

10. No premises licensed to sell adult-use cannabis for on-site

consumption under this chapter shall be permitted to have any opening or

means of entrance or passageway for persons or things between the

licensed premises and any other room or place in the building containing

the licensed premises, or any adjoining or abutting premises, unless

ingress and egress is restricted by an employee, agent of the licensee,

or other method approved by the board of controlling access to the

facility.

11. Each adult-use on-site consumption licensee shall keep and

maintain upon the licensed premises, adequate records of all

transactions involving the business transacted by such licensee which

shall show the amount of cannabis products, in an applicable metric

measurement, purchased by such licensee together with the names, license

numbers and places of business of the persons from whom the same were

purchased, the amount involved in such purchases, as well as the sales

of cannabis products made by such licensee. The board is hereby

authorized to promulgate rules and regulations permitting an on-site

licensee operating two or more premises separately licensed to sell

cannabis products for on-site consumption to inaugurate or retain in

this state methods or practices of centralized accounting, bookkeeping,

control records, reporting, billing, invoicing or payment respecting

purchases, sales or deliveries of cannabis products, or methods and

practices of centralized receipt or storage of cannabis products within

this state without segregation or earmarking for any such separately

licensed premises, wherever such methods and practices assure the

availability, at such licensee's central or main office in this state,

of data reasonably needed for the enforcement of this chapter. Such

records shall be available for inspection by any authorized

representative of the board.

12. All licensed adult-use on-site consumption premises shall be

subject to inspection by any peace officer, acting pursuant to his or

her special duties, or police officer and by the duly authorized

representatives of the board, during the hours when the said premises

are open for the transaction of business.

13. An adult-use on-site consumption licensee shall not provide

cannabis products to any person under the age of twenty-one. No person

under the age of twenty-one shall be permitted on the premises of a

cannabis on-site consumption facility.

14. The provisions of article thirteen-E of the public health law

restricting the smoking or vaping of cannabis shall not apply to

adult-use on-site consumption premises.