NY Cannabis § 133 (2021)
2021 New York Laws CAN - Cannabis Article 6 - General Provisions 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.   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.   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.