N.Y. Cannabis Law § 132: Penalties for violation of this chapter

§ 132. Penalties for violation of this chapter. 1.(a) Any person who

cultivates for sale, offers to sell, or sells cannabis, cannabis

products, medical cannabis, or any product marketed or labeled as such,

without having an appropriate registration, license or permit therefor,

including a person whose registration, license, or permit has been

revoked, surrendered or cancelled, where such person is engaging in

activity for which a license would be required under this chapter, may

be subject to a civil penalty of not more than ten thousand dollars for

each day during which such violation continues and an additional civil

penalty in an amount of no more than five times the revenue from such

prohibited sales or, in an amount of no more than three times the

projected revenue for any such product found in the possession of such

person based on the retail list price of such products; provided,

however, that any such person who engages in such activity from a

residence or other real property not otherwise held out as open to the

public or otherwise being utilized in a business or commercial manner or

any private vehicle on or about same such property, and the quantity of

such product on such premises or vehicle does not exceed the limits of

personal use under article two hundred twenty-two of the penal law, may

be subject to a civil penalty of no more than five thousand dollars.

Provided, further, that where such person has been ordered to cease

such conduct pursuant to subdivision one of section one hundred

thirty-eight-a of this article, such person may be assessed a civil

penalty of no more than twenty thousand dollars per day for each day

during which such violation continues after receiving such order in

addition to the additional civil penalties set forth above; provided,

however, that any such person who engages in such activity from a

residence or other real property not otherwise held out as open to the

public or otherwise being utilized in a business or commercial manner or

any private vehicle on or about same such property, and the quantity of

such product on such premises or vehicle does not exceed the limits of

personal use under article two hundred twenty-two of the penal law, may

be subject to a civil penalty of no more than ten thousand dollars.

(b) If a person engaging in the conduct described in paragraph (a) of

this subdivision or subdivision one-a of this section refuses to permit

the office or the board from performing a regulatory inspection, such

person may be assessed a civil penalty of up to eight thousand dollars

for a first refusal and up to fifteen thousand dollars for a second or

subsequent refusal within three years of a prior refusal. If the office

or board is not permitted access for a regulatory inspection pursuant to

section ten or section eleven of this chapter, as applicable, by such

person, the attorney general, upon the request of the office or the

board, shall be authorized to apply, without notice to such person, to

the supreme court in the county in which the place of business is

located for an order granting the office or board access to such place

of business. The court may grant such an order if it determines, based

on evidence presented by the attorney general, that there is reasonable

cause to believe that such place of business is a place of business

which does not possess a valid registration, license, or permit issued

by the office or board.

(c) In assessing the civil penalties under this subdivision or

subdivision one-a of this section, the board or office shall take into

consideration the nature of such violation and shall assess a penalty

that is proportionate to the violation; provided, however, that an

affidavit from a representative of the office, the office of the

attorney general, or a local government, or a local police officer

confirming the presence of conduct described in this subdivision or

subdivision one-a of this section following an inspection by the office

after the office has ordered such conduct to cease shall be sufficient

to establish a prima facie case that such conduct had been continuing

for each business day between the initial inspection and the last

observed or otherwise documented conduct.

1-a. Any person engaged in indirect retail sale in violation of

subdivision one-a of section one hundred twenty-five of this article,

shall be subject to a civil penalty in an amount equaling the lesser of

three times the revenue for such indirect retail sales or up to two

thousand five hundred dollars for each such sale, provided, however,

that where such conduct also constitutes a violation of subdivision one

of this section, such person may only be subject to the civil penalties

under one such subdivision, and provided, further, that where such

person has been ordered to cease such conduct pursuant to subdivision

one of section one hundred thirty-eight-a of this article, such person

may be assessed a civil penalty of up to five thousand dollars for each

day during which such violation continues in addition to any civil

penalties set forth above.

2. Any registered organization or licensee, who has received

notification of a registration or license suspension pursuant to the

provisions of this chapter, who sells cannabis, cannabis products,

medical cannabis or cannabinoid hemp or hemp extract during the

suspension period, shall be subject to prosecution as provided in

article two hundred twenty-two of the penal law, and upon conviction

thereof under this section may be subject to a civil penalty of not more

than five thousand dollars.

3. Any person who shall knowingly make any materially false statement

in the application for a registration, license or a permit under this

chapter may be subject to license or registration suspension,

revocation, or denial subject to the board, and may be subject to a

civil penalty of not more than two thousand dollars.

4. Any person under the age of twenty-one found to be in possession of

cannabis or cannabis products who is not a certified patient pursuant to

article three of this chapter shall be in violation of this chapter and

shall be subject to the following penalty:

(a) (i) The person shall be subject to a civil penalty of not more

than fifty dollars. The civil penalty shall be payable to the office of

cannabis management.

(ii) Any identifying information provided by the enforcement agency

for the purpose of facilitating payment of the civil penalty shall not

be shared or disclosed under any circumstances with any other agency or

law enforcement division.

(b) The person shall, upon payment of the required civil penalty, be

provided with information related to the dangers of underage use of

cannabis and information related to cannabis use disorder by the office.

(c) The issuance and subsequent payment of such civil penalty shall in

no way qualify as a criminal accusation, admission of guilt, or a

criminal conviction and shall in no way operate as a disqualification of

any such person from holding public office, attaining public employment,

or as a forfeiture of any right or privilege.

5. Cannabis recovered from individuals who are found to be in

violation of this chapter may after notice and opportunity for a hearing

be considered a nuisance and shall be disposed of or destroyed.

6. Except as otherwise provided for in this chapter, the board shall

promulgate rules and regulations providing for notice and opportunity to

be heard, prior to the imposition of any civil penalty under this

section, except where such civil penalty is being sought in an action or

proceeding by the attorney general as otherwise authorized in this

chapter, provided, further, nothing in this section shall prohibit the

board from suspending, revoking, or denying a license, permit,

registration, or application in addition to the penalties that may be

assessed under this section.

7. The penalties provided for in subdivision one of this section may

be recovered by the attorney general on behalf of the board or office in

an action or proceeding brought pursuant to section one hundred

thirty-eight-a of this chapter.

8. Any person who knowingly and unlawfully sells, gives, or causes to

be sold or given, any cannabis or cannabis products for which the sale

of such products requires a license, permit, or registration under this

chapter where such person owns and/or is principally responsible for the

operation of a business where such products were sold, given, or caused

to be sold or given without having obtained a valid license, permit or

registration therefor shall be guilty of a class A misdemeanor. For the

purposes of this section, "operation of a business" shall mean engaging

in the sale of, or otherwise offering for sale, goods and services to

the general public, including through indirect retail sales.