N.Y. Tax Law § 494: Registration and renewal

§ 494. Registration and renewal. (a) (1) Every distributor on whom tax

is imposed under this article and every person who sells adult-use

cannabis products at retail must file with the commissioner a properly

completed application for a certificate of registration and obtain such

certificate before engaging in business, provided, however, this section

shall not apply to a natural person engaged in lawful activity

pertaining to personal use or personal cultivation pursuant to article

two hundred twenty-two of the penal law. An application for a

certificate of registration must be submitted electronically, on a form

prescribed by the commissioner, and must be accompanied by a

non-refundable application fee of six hundred dollars. A certificate of

registration shall not be assignable or transferable and shall be

destroyed immediately upon such person ceasing to do business as

specified in such certificate, or in the event that such business never

commenced.

(2) Provided, however, that the commissioner shall refund or credit an

application fee paid with respect to the registration of an adult-use

cannabis business in this state if, prior to the beginning of the period

with respect to which such registration relates, the certificate of

registration described in paragraph one of this subdivision is returned

to the department or, if such certificate has been destroyed, the

operator of such business satisfactorily accounts to the commissioner

for the missing certificate, but such business may not sell adult-use

cannabis products in this state during such period, unless it is

re-registered. Such refund or credit shall be deemed a refund of tax

paid in error, provided, however, no interest shall be allowed or paid

on any such refund.

(b) (1) The commissioner shall refuse to issue a certificate of

registration to any applicant and shall revoke the certificate of

registration of any such person who does not possess a valid license

from the office of cannabis management.

(2) The commissioner may refuse to issue a certificate of registration

to any applicant where such applicant:

(i) has a past-due liability as that term is defined in section one

hundred seventy-one-v of this chapter;

(ii) has had a certificate of registration under this article, a

license from the office of cannabis management, or any license or

registration provided for in this chapter revoked or suspended where

such revocation or suspension was in effect on the date the application

was filed or ended within one year from the date on which such

application was filed;

(iii) has been convicted of a crime provided for in this chapter

within one year from the date on which such application was filed or the

certificate was issued, as applicable;

(iv) willfully fails to file a report or return required by this

article;

(v) willfully files, causes to be filed, gives or causes to be given a

report, return, certificate or affidavit required by this article which

is false;

(vi) willfully fails to collect or truthfully account for or pay over

any tax imposed by this article;

(vii) has been determined to have possessed illicit cannabis within

one year from the date on which such application was filed;

(viii) is a distributor that has been determined to have knowingly

sold adult-use cannabis products to any person who sells adult-use

cannabis products at retail and who is not registered under this

section, or whose registration has been suspended or revoked; or

(ix) has a place of business at the same premises as that of a

distributor upon whom tax is imposed under this article, or person who

sells adult-use cannabis products at retail, whose registration has been

revoked and where such revocation is still in effect, unless the

applicant provides the commissioner with adequate documentation

demonstrating that such applicant acquired the premises or business

through an arm's length transaction as defined in paragraph (e) of

subdivision one of section four hundred eighty-a of this chapter and

that the sale or lease was not conducted, in whole or in part, for the

purpose of permitting the original registrant to avoid the effect of the

previous revocation for the same premises.

(3) The commissioner may revoke the certificate of registration issued

to any person who:

(i) has had any license or registration provided for in this chapter

revoked or suspended;

(ii) has been convicted of a crime provided for in this chapter where

such conviction occurred not more than one year prior to the date of

revocation;

(iii) willfully fails to file a report or return required by this

article;

(iv) willfully files, causes to be filed, gives or causes to be given

a report, return, certificate or affidavit required by this article

which is false;

(v) willfully fails to collect or truthfully account for or pay over

any tax imposed by this article; or

(vi) is a distributor that has been determined to have knowingly sold

adult-use cannabis products to any person who sells adult-use cannabis

products at retail and who is not registered under this section, or

whose registration has been suspended or revoked.

(4) In addition to the grounds for revocation in this subdivision,

where a person who holds a certificate of registration is determined to

have possessed or sold illicit cannabis:

(1) such registration may be revoked (i) for a period of up to one

year for the first such possession or sale by such person;

(ii) for a period of up to three years for a second such possession or

sale within a period of five years by such person; and

(iii) for a period of up to five years for a third such possession or

sale within a period of five years by such person. A certificate of

registration may be revoked pursuant to this paragraph immediately upon

such person's receipt of written notice of revocation from the

commissioner.

A person who is notified of a revocation of their certificate of

registration pursuant to this paragraph shall have the right to have the

revocation reviewed by the commissioner or their designee by contacting

the department at a telephone number or an address to be disclosed in

the notice of revocation within ten days of such person's receipt of

such notification. Such person may present written evidence or argument

in support of their defense to the revocation or may appear at a

scheduled conference with the commissioner or their designee to present

oral arguments and written and oral evidence in support of such defense.

The commissioner or their designee is authorized to delay the effective

date of the revocation to enable such person to present further evidence

or arguments in connection with the revocation. The commissioner or

their designee shall cancel the revocation of the certificate of

registration if the commissioner or their designee is not satisfied by a

preponderance of the evidence that a basis for revocation pursuant to

this paragraph exists. An order of revocation of a certificate of

registration under this paragraph shall not be reviewable by the

division of tax appeals but may be reviewed pursuant to article

seventy-eight of the civil practice law and rules by a proceeding

commenced in the supreme court within four months of the revocation

petitioning that the order of revocation be enjoined or set aside. Such

proceeding shall be instituted in the county where the commissioner has

their principal office. Upon the filing of such petition the court shall

have jurisdiction to set aside such order of revocation, in whole or in

part, or to dismiss the petition. The jurisdiction of the supreme court

shall be exclusive and its order dismissing the petition or enjoining or

setting aside such order, in whole or in part, shall be final, subject

to review by the appellate division of the supreme court and the court

of appeals in the same manner and form and with the same effect as

provided by law for appeals from a judgment in a special proceeding. All

such proceedings shall be heard and determined by the court and by any

appellate court as expeditiously as possible and with lawful precedence

over other civil matters. All such proceedings for review shall be heard

on the petition, transcript and other papers, and on appeal shall be

heard on the record, without requirement of printing.

(c) Where a person that does not possess a certificate of registration

under this section has been determined to have possessed or sold any

adult-use cannabis product or illicit cannabis:

(1) The commissioner may revoke a certificate of authority issued to

such person pursuant to section eleven hundred thirty-four of this

chapter for a place of business where such person has been determined to

have possessed for sale or to have sold adult-use cannabis product or

illicit cannabis three or more times within a period of five years

without a certificate of registration.

(2) The commissioner may refuse to issue a certificate of authority

under section eleven hundred thirty-four of this chapter to a

distributor upon whom tax is imposed under this article, or a person who

sells adult-use cannabis products at retail, who has a place of business

at the same premises as that of a person whose certificate of authority

has been revoked pursuant to paragraph one of this subdivision and where

such revocation is still in effect, unless the applicant provides the

commissioner with adequate documentation demonstrating that such

applicant acquired the premises or business through an arm's length

transaction as defined in paragraph (e) of subdivision one of section

four hundred eighty-a of this chapter and that the sale or lease was not

conducted, in whole or in part, for the purpose of permitting the

original registrant to avoid the effect of the previous revocation for

the same premises.

(d) A certificate of registration shall be valid for the period

specified thereon, unless earlier suspended or revoked. Upon the

expiration of the term stated on a certificate of registration, such

certificate shall be null and void.

(e) Every holder of a certificate of registration must notify the

commissioner of changes to any of the information stated on the

certificate, or of changes to any information contained in the

application for the certificate of registration. Such notification must

be made on or before the last day of the month in which a change occurs

and must be made electronically on a form prescribed by the

commissioner.

(f) Every holder of a certificate of registration under this article

shall be required to reapply prior to such certificate's expiration,

during a reapplication period established by the commissioner. Such

reapplication period shall not occur more frequently than every two

years. Such reapplication shall be subject to the same requirements and

conditions as an initial application, including grounds for refusal and

the payment of the application fee.

(g) Any person who is required to obtain a certificate of registration

under subdivision (a) of this section who possesses adult-use cannabis

products without such certificate shall be subject to a penalty of up to

seven thousand five hundred dollars for a first violation and up to

fifteen thousand dollars for a second or subsequent violation within

three years following a prior violation. Any such adult-use cannabis

product shall be subject to immediate forfeiture to, and seizure by, the

commissioner or their duly authorized representatives, or the duly

authorized representatives of the office of cannabis management.

(h) No distributor on whom tax is imposed under this article shall

sell any adult-use cannabis product to any person who sells adult-use

cannabis products at retail and who is not registered under this

section, or whose registration has been suspended or revoked.