N.Y. Comp. Codes R. & Regs. tit. 9 § 120.12

Current through Register Vol. 46, No. 36, September 4, 2024

Section 120.12 - License Denial

(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.

(b) In addition to the aforementioned, the Board may specifically deny any renewal application based on additional criteria, including, but not limited to, if:

(1) the applicant fails to maintain a labor peace agreement with a bona-fide labor organization;

(2) the applicant fails to provide documentation of the racial, ethnic, and gender diversity of the applicant's employees and owners;

(3) the applicant fails to submit a renewal application not less than sixty (60) days prior to expiration of license term;

(4) the applicant fails to provide information required for completing their application or licensure; and

(5) any other grounds for denial as determined by the Board.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 120.12

Adopted New York State Register September 27, 2023/Volume XLV, Issue 39, eff. 9/27/2023