New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle B - Division of Alcoholic Beverage Control › Chapter II - Rules of the Office of Cannabis Management › Part 120 - Application and Licensure › Section 120.12 - License Denial

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The Board
				  may deny an application for a license, including renewal applications, if:
(1) the application does not meet the
				  applicable eligibility requirements in section
				  120.7 of this Part;
(2) the applicant or their true parties of
				  interest, have a history of violations relating to its operation of owning or
				  operating a business;
(3) the
				  source of funds identified by the applicant to be used for the acquisition,
				  startup, or operation of the business is determined by the Office to be a
				  violation of true parties of interest restrictions or is questionable,
				  unverifiable, or gained in a manner which is in violation of applicable
				  federal, state and local law or regulations.
(4) the applicant fails to submit information
				  or documentation requested by the Office during the application and evaluation
				  process, including any supplemental documentation, subject to the applicable
				  cure period pursuant to section
				  120.20 of this Part;
(5) the applicant makes false representation
				  or fails to disclose a material fact to the Office, and therefore may be
				  subject to prosecution pursuant to section 190.25  of the Penal Law, during the
				  application process;
(6) the
				  applicant, or any true party of interest of the applicant, is prohibited from
				  trafficking cannabis pursuant to section 137  of the Cannabis Law;
(7) the applicant, or any true party of
				  interest of the applicant, is a person determined to be not of good moral
				  character;
(8) the applicant, or
				  any true party of interest of the applicant, has outstanding violations, fines,
				  fees, payments or other indebtedness assessed against them by state, or federal
				  regulatory authorities or any local municipalities;
(9) the applicant, or any true party of
				  interest of the applicant, has a history of giving away or selling cannabis or
				  cannabis products in an unlicensed and unauthorized manner after March 31,
				  2021, through a store located on a public thoroughfare, vehicle, or 'membership
				  club' that sells cannabis or cannabis products or charges retail customers a
				  membership or admittance fee, or otherwise poses as an authorized cannabis
				  licensed business;
(10) the
				  applicant, or any true party of interest of the applicant, has or previously
				  had an unapproved interest in a license issued by the Board, other than an
				  interest exempt from disclosure pursuant to this Title.
(11) the proposed licensed premises is in a
				  location prohibited by Cannabis Law or state laws or regulations, except with
				  respect to licensed premises previously approved;
(12) the applicant fails a pre-licensure
				  inspection of the premises, which shall take place at the request of the
				  Office;
(13) the applicant
				  demonstrates a pattern of deficiencies, including, but not limited to:
(i) refusal or inability to produce records,
				  disclosures, or reports as requested by the Office;
(ii) failure to correct deficiencies or
				  violations in accordance with an approved corrective action plan;
(iii) deviation from regulations or standard
				  operating procedures so as to jeopardize the quality of cannabis or cannabis
				  products and public safety; and
(iv) refusal to provide Office employees with
				  access to the licensed premises;
(14) knowledge of sale of illicit cannabis as
				  defined in section 136  of the Cannabis Law or cannabis or cannabis products not
				  meeting the requirements of this Title
(15) general failure to comply with the
				  requirements of this Title;
(16)
				  the applicant's true parties of interest are also true parties of interest in a
				  number of pending cannabis license applications that, if licensed, would exceed
				  the limit on the number of licenses such true party of interest could be a true
				  party of interest in at any one (1) time, in accordance with the limitations in
				  this section, notwithstanding passive investors; and
(17) any other grounds for denial as
				  determined by the Board.