§ 494. Registration and renewal. (a) (1) Every distributor on whom tax
is imposed under this article and every person who sells adult-use
cannabis products at retail must file with the commissioner a properly
completed application for a certificate of registration and obtain such
certificate before engaging in business, provided, however, this section
shall not apply to a natural person engaged in lawful activity
pertaining to personal use or personal cultivation pursuant to article
two hundred twenty-two of the penal law. An application for a
certificate of registration must be submitted electronically, on a form
prescribed by the commissioner, and must be accompanied by a
non-refundable application fee of six hundred dollars. A certificate of
registration shall not be assignable or transferable and shall be
destroyed immediately upon such person ceasing to do business as
specified in such certificate, or in the event that such business never
commenced.

(2) Provided, however, that the commissioner shall refund or credit an
application fee paid with respect to the registration of an adult-use
cannabis business in this state if, prior to the beginning of the period
with respect to which such registration relates, the certificate of
registration described in paragraph one of this subdivision is returned
to the department or, if such certificate has been destroyed, the
operator of such business satisfactorily accounts to the commissioner
for the missing certificate, but such business may not sell adult-use
cannabis products in this state during such period, unless it is
re-registered. Such refund or credit shall be deemed a refund of tax
paid in error, provided, however, no interest shall be allowed or paid
on any such refund.

(b) (1) The commissioner shall refuse to issue a certificate of
registration to any applicant and shall revoke the certificate of
registration of any such person who does not possess a valid license
from the office of cannabis management.

(2) The commissioner may refuse to issue a certificate of registration
to any applicant where such applicant:

(i) has a past-due liability as that term is defined in section one
hundred seventy-one-v of this chapter;

(ii) has had a certificate of registration under this article, a
license from the office of cannabis management, or any license or
registration provided for in this chapter revoked or suspended where
such revocation or suspension was in effect on the date the application
was filed or ended within one year from the date on which such
application was filed;

(iii) has been convicted of a crime provided for in this chapter
within one year from the date on which such application was filed or the
certificate was issued, as applicable;

(iv) willfully fails to file a report or return required by this
article;

(v) willfully files, causes to be filed, gives or causes to be given a
report, return, certificate or affidavit required by this article which
is false;

(vi) willfully fails to collect or truthfully account for or pay over
any tax imposed by this article;

(vii) has been determined to have possessed illicit cannabis within
one year from the date on which such application was filed;

(viii) is a distributor that has been determined to have knowingly
sold adult-use cannabis products to any person who sells adult-use
cannabis products at retail and who is not registered under this
section, or whose registration has been suspended or revoked; or

(ix) has a place of business at the same premises as that of a
distributor upon whom tax is imposed under this article, or person who
sells adult-use cannabis products at retail, whose registration has been
revoked and where such revocation is still in effect, unless the
applicant provides the commissioner with adequate documentation
demonstrating that such applicant acquired the premises or business
through an arm's length transaction as defined in paragraph (e) of
subdivision one of section four hundred eighty-a of this chapter and
that the sale or lease was not conducted, in whole or in part, for the
purpose of permitting the original registrant to avoid the effect of the
previous revocation for the same premises.

(3) The commissioner may revoke the certificate of registration issued
to any person who:

(i) has had any license or registration provided for in this chapter
revoked or suspended;

(ii) has been convicted of a crime provided for in this chapter where
such conviction occurred not more than one year prior to the date of
revocation;

(iii) willfully fails to file a report or return required by this
article;

(iv) willfully files, causes to be filed, gives or causes to be given
a report, return, certificate or affidavit required by this article
which is false;

(v) willfully fails to collect or truthfully account for or pay over
any tax imposed by this article; or

(vi) is a distributor that has been determined to have knowingly sold
adult-use cannabis products to any person who sells adult-use cannabis
products at retail and who is not registered under this section, or
whose registration has been suspended or revoked.

(4) In addition to the grounds for revocation in this subdivision,
where a person who holds a certificate of registration is determined to
have possessed or sold illicit cannabis:

(1) such registration may be revoked (i) for a period of up to one
year for the first such possession or sale by such person;

(ii) for a period of up to three years for a second such possession or
sale within a period of five years by such person; and

(iii) for a period of up to five years for a third such possession or
sale within a period of five years by such person. A certificate of
registration may be revoked pursuant to this paragraph immediately upon
such person's receipt of written notice of revocation from the
commissioner.

A person who is notified of a revocation of their certificate of
registration pursuant to this paragraph shall have the right to have the
revocation reviewed by the commissioner or their designee by contacting
the department at a telephone number or an address to be disclosed in
the notice of revocation within ten days of such person's receipt of
such notification. Such person may present written evidence or argument
in support of their defense to the revocation or may appear at a
scheduled conference with the commissioner or their designee to present
oral arguments and written and oral evidence in support of such defense.
The commissioner or their designee is authorized to delay the effective
date of the revocation to enable such person to present further evidence
or arguments in connection with the revocation. The commissioner or
their designee shall cancel the revocation of the certificate of
registration if the commissioner or their designee is not satisfied by a
preponderance of the evidence that a basis for revocation pursuant to
this paragraph exists. An order of revocation of a certificate of
registration under this paragraph shall not be reviewable by the
division of tax appeals but may be reviewed pursuant to article
seventy-eight of the civil practice law and rules by a proceeding
commenced in the supreme court within four months of the revocation
petitioning that the order of revocation be enjoined or set aside. Such
proceeding shall be instituted in the county where the commissioner has
their principal office. Upon the filing of such petition the court shall
have jurisdiction to set aside such order of revocation, in whole or in
part, or to dismiss the petition. The jurisdiction of the supreme court
shall be exclusive and its order dismissing the petition or enjoining or
setting aside such order, in whole or in part, shall be final, subject
to review by the appellate division of the supreme court and the court
of appeals in the same manner and form and with the same effect as
provided by law for appeals from a judgment in a special proceeding. All
such proceedings shall be heard and determined by the court and by any
appellate court as expeditiously as possible and with lawful precedence
over other civil matters. All such proceedings for review shall be heard
on the petition, transcript and other papers, and on appeal shall be
heard on the record, without requirement of printing.

(c) Where a person that does not possess a certificate of registration
under this section has been determined to have possessed or sold any
adult-use cannabis product or illicit cannabis:

(1) The commissioner may revoke a certificate of authority issued to
such person pursuant to section eleven hundred thirty-four of this
chapter for a place of business where such person has been determined to
have possessed for sale or to have sold adult-use cannabis product or
illicit cannabis three or more times within a period of five years
without a certificate of registration.

(2) The commissioner may refuse to issue a certificate of authority
under section eleven hundred thirty-four of this chapter to a
distributor upon whom tax is imposed under this article, or a person who
sells adult-use cannabis products at retail, who has a place of business
at the same premises as that of a person whose certificate of authority
has been revoked pursuant to paragraph one of this subdivision and where
such revocation is still in effect, unless the applicant provides the
commissioner with adequate documentation demonstrating that such
applicant acquired the premises or business through an arm's length
transaction as defined in paragraph (e) of subdivision one of section
four hundred eighty-a of this chapter and that the sale or lease was not
conducted, in whole or in part, for the purpose of permitting the
original registrant to avoid the effect of the previous revocation for
the same premises.

(d) A certificate of registration shall be valid for the period
specified thereon, unless earlier suspended or revoked. Upon the
expiration of the term stated on a certificate of registration, such
certificate shall be null and void.

(e) Every holder of a certificate of registration must notify the
commissioner of changes to any of the information stated on the
certificate, or of changes to any information contained in the
application for the certificate of registration. Such notification must
be made on or before the last day of the month in which a change occurs
and must be made electronically on a form prescribed by the
commissioner.

(f) Every holder of a certificate of registration under this article
shall be required to reapply prior to such certificate's expiration,
during a reapplication period established by the commissioner. Such
reapplication period shall not occur more frequently than every two
years. Such reapplication shall be subject to the same requirements and
conditions as an initial application, including grounds for refusal and
the payment of the application fee.

(g) Any person who is required to obtain a certificate of registration
under subdivision (a) of this section who possesses adult-use cannabis
products without such certificate shall be subject to a penalty of up to
seven thousand five hundred dollars for a first violation and up to
fifteen thousand dollars for a second or subsequent violation within
three years following a prior violation. Any such adult-use cannabis
product shall be subject to immediate forfeiture to, and seizure by, the
commissioner or their duly authorized representatives, or the duly
authorized representatives of the office of cannabis management.

(h) No distributor on whom tax is imposed under this article shall
sell any adult-use cannabis product to any person who sells adult-use
cannabis products at retail and who is not registered under this
section, or whose registration has been suspended or revoked.