2023 New York Laws › TAX - Tax › Article 20-C - Tax on Adult-Use Cannabis Products › 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.