2023 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. 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.