§ 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.