§ 132 — Penalties for violation of this chapter

New York § 132

• Jurisdiction: New York
• Law CAN: Cannabis
• Art. 6: General Provisions

Text

§ 132. Penalties for violation of this chapter. 1.(a) Any person who\ncultivates for sale, offers to sell, or sells cannabis, cannabis\nproducts, medical cannabis, or any product marketed or labeled as such,\nwithout having an appropriate registration, license or permit therefor,\nincluding a person whose registration, license, or permit has been\nrevoked, surrendered or cancelled, where such person is engaging in\nactivity for which a license would be required under this chapter, may\nbe subject to a civil penalty of not more than ten thousand dollars for\neach day during which such violation continues and an additional civil\npenalty in an amount of no more than five times the revenue from such\nprohibited sales or, in an amount of no more than three times the\nprojected revenue for any such product found in the possession of such\nperson based on the retail list price of such products; provided,\nhowever, that any such person who engages in such activity from a\nresidence or other real property not otherwise held out as open to the\npublic or otherwise being utilized in a business or commercial manner or\nany private vehicle on or about same such property, and the quantity of\nsuch product on such premises or vehicle does not exceed the limits of\npersonal use under article two hundred twenty-two of the penal law, may\nbe subject to a civil penalty of no more than five thousand dollars.\n Provided, further, that where such person has been ordered to cease\nsuch conduct pursuant to subdivision one of section one hundred\nthirty-eight-a of this article, such person may be assessed a civil\npenalty of no more than twenty thousand dollars per day for each day\nduring which such violation continues after receiving such order in\naddition to the additional civil penalties set forth above; provided,\nhowever, that any such person who engages in such activity from a\nresidence or other real property not otherwise held out as open to the\npublic or otherwise being utilized in a business or commercial manner or\nany private vehicle on or about same such property, and the quantity of\nsuch product on such premises or vehicle does not exceed the limits of\npersonal use under article two hundred twenty-two of the penal law, may\nbe subject to a civil penalty of no more than ten thousand dollars.\n (b) If a person engaging in the conduct described in paragraph (a) of\nthis subdivision or subdivision one-a of this section refuses to permit\nthe office or the board from performing a regulatory inspection, such\nperson may be assessed a civil penalty of up to eight thousand dollars\nfor a first refusal and up to fifteen thousand dollars for a second or\nsubsequent refusal within three years of a prior refusal. If the office\nor board is not permitted access for a regulatory inspection pursuant to\nsection ten or section eleven of this chapter, as applicable, by such\nperson, the attorney general, upon the request of the office or the\nboard, shall be authorized to apply, without notice to such person, to\nthe supreme court in the county in which the place of business is\nlocated for an order granting the office or board access to such place\nof business. The court may grant such an order if it determines, based\non evidence presented by the attorney general, that there is reasonable\ncause to believe that such place of business is a place of business\nwhich does not possess a valid registration, license, or permit issued\nby the office or board.\n (c) In assessing the civil penalties under this subdivision or\nsubdivision one-a of this section, the board or office shall take into\nconsideration the nature of such violation and shall assess a penalty\nthat is proportionate to the violation; provided, however, that an\naffidavit from a representative of the office, the office of the\nattorney general, or a local government, or a local police officer\nconfirming the presence of conduct described in this subdivision or\nsubdivision one-a of this section following an inspection by the office\nafter the office has ordered such conduct to cease shall be sufficient\nto establish a prima facie case that such conduct had been continuing\nfor each business day between the initial inspection and the last\nobserved or otherwise documented conduct.\n 1-a. Any person engaged in indirect retail sale in violation of\nsubdivision one-a of section one hundred twenty-five of this article,\nshall be subject to a civil penalty in an amount equaling the lesser of\nthree times the revenue for such indirect retail sales or up to two\nthousand five hundred dollars for each such sale, provided, however,\nthat where such conduct also constitutes a violation of subdivision one\nof this section, such person may only be subject to the civil penalties\nunder one such subdivision, and provided, further, that where such\nperson has been ordered to cease such conduct pursuant to subdivision\none of section one hundred thirty-eight-a of this article, such person\nmay be assessed a civil penalty of up to five thousand dollars for each\nday during which such violation continues in addition to any civil\npenalties set forth above.\n 2. Any registered organization or licensee, who has received\nnotification of a registration or license suspension pursuant to the\nprovisions of this chapter, who sells cannabis, cannabis products,\nmedical cannabis or cannabinoid hemp or hemp extract during the\nsuspension period, shall be subject to prosecution as provided in\narticle two hundred twenty-two of the penal law, and upon conviction\nthereof under this section may be subject to a civil penalty of not more\nthan five thousand dollars.\n 3. Any person who shall knowingly make any materially false statement\nin the application for a registration, license or a permit under this\nchapter may be subject to license or registration suspension,\nrevocation, or denial subject to the board, and may be subject to a\ncivil penalty of not more than two thousand dollars.\n 4. Any person under the age of twenty-one found to be in possession of\ncannabis or cannabis products who is not a certified patient pursuant to\narticle three of this chapter shall be in violation of this chapter and\nshall be subject to the following penalty:\n (a) (i) The person shall be subject to a civil penalty of not more\nthan fifty dollars. The civil penalty shall be payable to the office of\ncannabis management.\n (ii) Any identifying information provided by the enforcement agency\nfor the purpose of facilitating payment of the civil penalty shall not\nbe shared or disclosed under any circumstances with any other agency or\nlaw enforcement division.\n (b) The person shall, upon payment of the required civil penalty, be\nprovided with information related to the dangers of underage use of\ncannabis and information related to cannabis use disorder by the office.\n (c) The issuance and subsequent payment of such civil penalty shall in\nno way qualify as a criminal accusation, admission of guilt, or a\ncriminal conviction and shall in no way operate as a disqualification of\nany such person from holding public office, attaining public employment,\nor as a forfeiture of any right or privilege.\n 5. Cannabis recovered from individuals who are found to be in\nviolation of this chapter may after notice and opportunity for a hearing\nbe considered a nuisance and shall be disposed of or destroyed.\n 6. Except as otherwise provided for in this chapter, the board shall\npromulgate rules and regulations providing for notice and opportunity to\nbe heard, prior to the imposition of any civil penalty under this\nsection, except where such civil penalty is being sought in an action or\nproceeding by the attorney general as otherwise authorized in this\nchapter, provided, further, nothing in this section shall prohibit the\nboard from suspending, revoking, or denying a license, permit,\nregistration, or application in addition to the penalties that may be\nassessed under this section.\n 7. The penalties provided for in subdivision one of this section may\nbe recovered by the attorney general on behalf of the board or office in\nan action or proceeding brought pursuant to section one hundred\nthirty-eight-a of this chapter.\n 8. Any person who knowingly and unlawfully sells, gives, or causes to\nbe sold or given, any cannabis or cannabis products for which the sale\nof such products requires a license, permit, or registration under this\nchapter where such person owns and/or is principally responsible for the\noperation of a business where such products were sold, given, or caused\nto be sold or given without having obtained a valid license, permit or\nregistration therefor shall be guilty of a class A misdemeanor. For the\npurposes of this section, "operation of a business" shall mean engaging\nin the sale of, or otherwise offering for sale, goods and services to\nthe general public, including through indirect retail sales.\n