N.Y. Cannabis Law § 133: Revocation of registrations, licenses and permits for cause; procedure for revocation or cancellation

§ 133. Revocation of registrations, licenses and permits for cause;

procedure for revocation or cancellation. 1. Any registration, license

or permit issued pursuant to this chapter may be revoked, cancelled,

suspended and/or subjected to the imposition of a civil penalty for

cause.

2. There shall be a rebuttable presumption of revocation for the

following causes:

(a) conviction of the registered organization, licensee, permittee or

his or her agent or employee for selling any illicit cannabis on the

premises registered, licensed or permitted; or

(b) for transferring, assigning or hypothecating a registration,

license or permit without prior written approval of the office.

3. Notwithstanding the issuance of a registration, license or permit

by way of renewal, the board may revoke, cancel or suspend such

registration, license or permit and/or may impose a civil penalty

against any holder of such registration, license or permit, as

prescribed by this section, for causes or violations occurring during

the license period immediately preceding the issuance of such

registration, license or permit.

4. (a) As used in this section, the term "for cause" shall also

include the existence of a sustained and continuing pattern of

misconduct, failure to adequately prevent diversion or disorder on or

about the registered, licensed or permitted premises, or in the area in

front of or adjacent to the registered or licensed premises, or in any

parking lot provided by the registered organization or licensee for use

by registered organization or licensee's patrons, which significantly

adversely affects or tends to significantly adversely affect the

protection, health, welfare, safety, or repose of the inhabitants of the

area in which the registered or licensed premises is located.

(b) (i) As used in this section, the term "for cause" shall also

include deliberately misleading the board or office of cannabis

management:

(A) as to the nature and character of the business to be operated by

the registered organization, licensee or permittee; or

(B) by substantially altering the nature or character of such business

during the registration or licensing period without seeking appropriate

approvals from the board.

(ii) As used in this subdivision, the term "substantially altering the

nature or character" of such business shall mean any significant and

material alteration in the scope of business activities conducted by a

registered organization, licensee or permittee that would require

obtaining an alternate form of registration, license or permit.

5. As used in this chapter, the existence of a sustained and

continuing pattern of misconduct or disorder on or about the premises

may be presumed upon the sixth incident reported to the board by a law

enforcement agency, or discovered by the board during the course of any

investigation, of misconduct or disorder on or about the premises or

related to the operation of the premises, absent clear and convincing

evidence of either fraudulent intent on the part of any complainant or a

factual error with respect to the content of any report concerning such

complaint relied upon by the board.

6. Any registration, license or permit issued by the board pursuant to

this chapter may be revoked, cancelled or suspended and/or be subjected

to the imposition of a monetary penalty set forth in this chapter in the

manner prescribed by this section. In addition to the grounds set forth

in this section, the board may also revoke, cancel, or suspend any

registration, license, or permit where such person holding such

registration, license, or permit has been found to have refused to

permit a regulatory inspection by the board.

7. The board may on its own initiative, or on complaint of any person,

institute proceedings to revoke, cancel or suspend any adult-use

cannabis retail dispensary license or adult-use cannabis on-site

consumption license and may impose a civil penalty against the licensee

after a hearing at which the licensee shall be given an opportunity to

be heard. Such hearing shall be held in such manner and upon such notice

as may be prescribed in regulation by the board.

8. All other registrations, licenses or permits issued under this

chapter may be revoked, cancelled, suspended and/or made subject to the

imposition of a civil penalty by the office after a hearing to be held

in such manner and upon such notice as may be prescribed in regulation

by the board. In addition to the grounds set forth in this section, the

office may also revoke, cancel, or suspend any registration, license, or

permit where such person holding such registration, license, or permit

has been found to have refused to permit a regulatory inspection by the

office.

9. Where a licensee or permittee is convicted of two or more

qualifying offenses within a five-year period, the office, upon receipt

of notification of such second or subsequent conviction, shall, in

addition to any other sanction or civil or criminal penalty imposed

pursuant to this chapter, impose on such licensee a civil penalty not to

exceed ten thousand dollars. For purposes of this subdivision, a

qualifying offense shall mean the sale of cannabis to a person under the

age of twenty-one not otherwise authorized by this chapter. For purposes

of this subdivision only, a conviction of a licensee or an employee or

agent of such licensee shall constitute a conviction of such licensee.

10. The board may adopt rules and regulations based on federal

guidance, provided those rules and regulations are designed to comply

with federal guidance and mitigate federal enforcement against the

registrations, licenses, or permits issued under this chapter, or the

cannabis industry as a whole. This may include regulations which permit

the sharing of licensee, registrant, or permit holder information with

designated banking or financial institutions, provided these regulations

are designed to aid cannabis industry participants' access to banking

and financial services.