§ 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.