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

Current through Register Vol. 46, No. 43, October 23, 2024

Section 133.7 - [Effective until 1/7/2025] Grounds for Suspension, Cancellation, Revocation, or Debarment of a License, Registration, or Permit, and Denial of Renewal, Change, or Amendment of Licenses, Registrations, or Permits

(a) The office may suspend, cancel, or revoke any cannabis or cannabinoid hemp license, registration, or permit, debar a person from licensure or obtaining a registration or permit, and deny the renewal of a license, registration, or permit, change, or amendment of license, registration, or permit 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, registration, or permit 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, registered, or permitted premises has been noncompliant, as shown by, but not limited to, one or more of the following:

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

(ii) sales of cannabis products to individuals younger than 21 years old; or

(iii) engaging in cannabis-related or cannabinoid-hemp related activities, including but not limited to sales, cultivation, processing or on-site consumption, that is beyond the scope of their active and valid license; or

(iv) 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 demonstrates 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 or inversion 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)

Adopted New York State Register September 25, 2024/Volume XLVI, Issue 39, eff. 9/10/2024, exp. 1/7/2025 (Emergency)