N.Y. Comp. Codes R. & Regs. tit. 9 § 133.7

Current through Register Vol. 46, No. 25, June 18, 2024

Section 133.7 - [Effective until 4/2/2024] Grounds for Suspension, Cancellation, Revocation, or Debarment of a License, and Denial of Renewal, Change, or Amendment of Licenses

(a) The office may suspend, cancel, or revoke a license, debar a person from licensure, and deny the renewal of a license, change, or amendment of license where:

(1) information provided by the licensee was deceptive, misleading, false or fraudulent, or tends to deceive or create a misleading impression, whether directly, or by omission, including lack of disclosure or insufficient disclosure;

(2) a licensee has failed to substantially comply with any requirement of the Cannabis Law and related regulations;

(3) a licensee has failed to submit, obtain approval, or implement a corrective action plan to the satisfaction of the office, as submitted;

(4) a licensee has assigned or attempted to change ownership or assign its license to another entity without prior approval of the office under the Cannabis Law and related regulations;

(5) a licensee or its true parties of interest did not comply with direct or indirect ownership or interest rules, or regulations;

(6) operation of the licensed premises has been noncompliant, as shown by, but not limited to, one or more of the following:

(i) failure to maintain the licensed premises in a clean, orderly, and sanitary fashion;

(ii) repeated sales of cannabis products to individuals younger than 21 years old, unless, in each instance, the licensee reasonably relied on government validly issued identification card in compliance with the Cannabis Law and related regulations; or

(iii) repeated failure to comply with the Cannabis Law or its related rules, regulations.

(7) other incompetent or negligent operation, including, but not limited to:

(i) the financial management of the licensee, including the financial solvency status of the licensee; and

(ii) a licensee maintaining a substandard level of compliance with the statutory and regulatory requirements for the operation of licensed premises in another jurisdiction including, but not limited to, a failure to correct deficiencies, a limitation on, or a suspension, revocation or refusal to grant or renew a license to operate.

(8) the conduct or practices of the licensee demonstrate a lack of qualification as specified in the Cannabis Law and regulations;

(9) a licensee has any criminal conduct as evidenced by any criminal proceedings that resulted in a conviction, guilty plea, plea of nolo contendere, or admission to sufficient facts in New York State or other jurisdiction;

(10) a licensee has committed, permitted, aided or abetted, or conspired to commit any practice in the operation of any licensed premises unauthorized by Cannabis Law, including, but not limited to, engaging in the diversion of cannabis or cannabis products;

(11) the conduct or practices of the licensee have been detrimental to the safety, health, or welfare of the public;

(12) a person cultivates, manufactures, processes, tests, distributes, packages, sells, or dispenses cannabis products without a license after March thirty first two thousand twenty-one; or

(13) a licensee engages in conduct that would constitute a category one violation or other egregious act or action.

(b) Any licensee is prohibited from contracting or otherwise engaging in any business relationship with a debarred person.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 133.7

Adopted New York State Register April 26, 2023/Volume XLV, Issue 17, eff. 4/6/2023 (Emergency)

Amended New York State Register August 16, 2023/Volume XLV, Issue 33, eff. 8/4/2023, exp. 12/4/2023 (Emergency)

Adopted New York State Register December 20, 2023/Volume XLV, Issue 51, eff. 12/4/2023, exp. 4/2/2024 (Emergency)