2023 New York Laws › CAN - Cannabis › Article 6 - General Provisions › 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including  a  person  whose  registration,  license,  or permit has been
revoked, surrendered or cancelled, where  such  person  is  engaging  in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.