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THE NEW YORK MARIJUANA REGULATION AND TAXATION ACT (MRTA):  Adult-Use On-Site Consumption Licenses

The MRTA provides for 11 different kinds of licenses to cultivate and distribute marijuana in New York. One of these licenses is for premises where the on-site consumption of marijuana is permitted.

Here are some of the features of this license.

  • A license applicant must demonstrate control of the business premises, either by owning the real estate or by having a written and signed lease. The tenant named in the lease must be identical to the name of license applicant.
  • No person may directly or indirectly control or have an interest in more than three adult use on-site consumption licenses.
  • No person holding an adult use on-site consumption license may also have a license for a retail dispensary, cultivation, processing, microbusiness, cooperative or distributor license, or be engaged in medical marijuana.
  • No on-site consumption premises may be located within 500 feet of school grounds or 200 feet of a house of worship.
  • Activities prohibited in taverns and bars under the Alcoholic Beverage Control Law are also prohibited in on-site consumption premises. These include gambling, fireworks, and fighting contests.
  • No one under the age of 21 is permitted inside the premises.
  • Municipalities may opt out of permitting on-site consumption premises within their territory by adopting a local law no later than December 31, 2021.
    • By doing so, a municipality would lose the 4% sales tax imposed on retail sales within their territory.
    • Also, such a law would be subject to a permissive referendum, meaning that the citizens of the municipality could have the issue put up for a vote.
  • Municipalities may also adopt local laws and regulations governing the time, place and manner of operating on-site consumption premises, but not so as to make such sites unreasonably impracticable.

As with many other sections of MRTA, detailed regulations have yet to be written. Those regulations may add additional obligations to licensing or operating on-site consumption premises. We will continue to monitor developments, so check back with us frequently.

This is not intended to be legal advice.  You should contact an attorney for advice regarding your specific situation.

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Gary M. Schuster is Partner at the firm and practices business, non-profit,  arts and entertainment law marijuana licensing.
He can be reached at  845-764-9656 and by email.

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