N.Y. Comp. Codes R. & Regs. tit. 9 § 124.7

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

Section 124.7 - Receivership

(a) An individual may be appointed as receiver, representative, executor, administrator, guardian, conservator, trustee, or assignee, to temporarily operate the licensed business on the licensed premises for a period of time determined by the Office in cases of death, disability, bankruptcy, insolvency, receivership, assignment for the benefit of creditors, shareholder or LLC member disputes, or other exceptional circumstances rendering one or more owners incapable of performing the duties of a licensee. Such appointee shall be at least twenty-one (21) years of age.

(b) Such appointee shall not be permitted to conduct licensed activities without the express authorization by the Office, which may be granted upon submission and approval of a written request for the authority to temporarily conduct licensed activities. Such written request shall include information or disclosures required by the Office, including, but not limited to: name, valid ID, phone number, mailing address, email address, social security number, the name of the person on whose behalf the appointee is appointed, proof that such appointee is the legal receiver, representative, executor, administrator, guardian, conservator, trustee, or assignee, and any direct or indirect interests held by that appointee in a cannabis license, registration or permit.

(c) Authorization to conduct licensed activities by such appointee is conditioned on compliance with these regulations, including, but not limited to, restrictions on ownership and other interests, approval by the Office, and such authorization shall not constitute a guarantee of license issuance or renewal by the Board.

(d) Any licensee or person who files, or against whom is filed, any action or proceeding, or who seeks an appointment, as set forth in subdivision (a) of this section is required to serve the Office with original notice of the action or proceeding and provide the Office with opportunity to be heard regarding the appointment. Such notice shall be provided to employees upon commencement of such proceeding for a receivership. A licensee surrendering its license shall provide its employees any lawfully required warnings of closures and layoffs.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 124.7

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