³ 132. Penalties for violation of this chapter. 1.(a) Any person who
cultivates for sale, offers to sell, or sells cannabis, cannabis
products, medical cannabis, or any product marketed or labeled as such,
without having an appropriate registration, license or permit therefor,
including a person whose registration, license, or permit has been
revoked, surrendered or cancelled, where such person is engaging in
activity for which a license would be required under this chapter, may
be subject to a civil penalty of not more than ten thousand dollars for
each day during which such violation continues and an additional civil
penalty in an amount of no more than five times the revenue from such
prohibited sales or, in an amount of no more than three times the
projected revenue for any such product found in the possession of such
person based on the retail list price of such products; provided,
however, that any such person who engages in such activity from a
residence or other real property not otherwise held out as open to the
public or otherwise being utilized in a business or commercial manner or
any private vehicle on or about same such property, and the quantity of
such product on such premises or vehicle does not exceed the limits of
personal use under article two hundred twenty-two of the penal law, may
be subject to a civil penalty of no more than five thousand dollars.

Provided, further, that where such person has been ordered to cease
such conduct pursuant to subdivision one of section one hundred
thirty-eight-a of this article, such person may be assessed a civil
penalty of no more than twenty thousand dollars per day for each day
during which such violation continues after receiving such order in
addition to the additional civil penalties set forth above; provided,
however, that any such person who engages in such activity from a
residence or other real property not otherwise held out as open to the
public or otherwise being utilized in a business or commercial manner or
any private vehicle on or about same such property, and the quantity of
such product on such premises or vehicle does not exceed the limits of
personal use under article two hundred twenty-two of the penal law, may
be subject to a civil penalty of no more than ten thousand dollars.

(b) If a person engaging in the conduct described in paragraph (a) of
this subdivision or subdivision one-a of this section refuses to permit
the office or the board from performing a regulatory inspection, such
person may be assessed a civil penalty of up to eight thousand dollars
for a first refusal and up to fifteen thousand dollars for a second or
subsequent refusal within three years of a prior refusal. If the office
or board is not permitted access for a regulatory inspection pursuant to
section ten or section eleven of this chapter, as applicable, by such
person, the attorney general, upon the request of the office or the
board, shall be authorized to apply, without notice to such person, to
the supreme court in the county in which the place of business is
located for an order granting the office or board access to such place
of business. The court may grant such an order if it determines, based
on evidence presented by the attorney general, that there is reasonable
cause to believe that such place of business is a place of business
which does not possess a valid registration, license, or permit issued
by the office or board.

(c) In assessing the civil penalties under this subdivision or
subdivision one-a of this section, the board or office shall take into
consideration the nature of such violation and shall assess a penalty
that is proportionate to the violation; provided, however, that an
affidavit from a representative of the office, the office of the
attorney general, or a local government, or a local police officer
confirming the presence of conduct described in this subdivision or
subdivision one-a of this section following an inspection by the office
after the office has ordered such conduct to cease shall be sufficient
to establish a prima facie case that such conduct had been continuing
for each business day between the initial inspection and the last
observed or otherwise documented conduct.

1-a. Any person engaged in indirect retail sale in violation of
subdivision one-a of section one hundred twenty-five of this article,
shall be subject to a civil penalty in an amount equaling the lesser of
three times the revenue for such indirect retail sales or up to two
thousand five hundred dollars for each such sale, provided, however,
that where such conduct also constitutes a violation of subdivision one
of this section, such person may only be subject to the civil penalties
under one such subdivision, and provided, further, that where such
person has been ordered to cease such conduct pursuant to subdivision
one of section one hundred thirty-eight-a of this article, such person
may be assessed a civil penalty of up to five thousand dollars for each
day during which such violation continues in addition to any civil
penalties set forth above.

2. Any registered organization or licensee, who has received
notification of a registration or license suspension pursuant to the
provisions of this chapter, who sells cannabis, cannabis products,
medical cannabis or cannabinoid hemp or hemp extract during the
suspension period, shall be subject to prosecution as provided in
article two hundred twenty-two of the penal law, and upon conviction
thereof under this section may be subject to a civil penalty of not more
than five thousand dollars.

3. Any person who shall knowingly make any materially false statement
in the application for a registration, license or a permit under this
chapter may be subject to license or registration suspension,
revocation, or denial subject to the board, and may be subject to a
civil penalty of not more than two thousand dollars.

4. Any person under the age of twenty-one found to be in possession of
cannabis or cannabis products who is not a certified patient pursuant to
article three of this chapter shall be in violation of this chapter and
shall be subject to the following penalty:

(a) (i) The person shall be subject to a civil penalty of not more
than fifty dollars. The civil penalty shall be payable to the office of
cannabis management.

(ii) Any identifying information provided by the enforcement agency
for the purpose of facilitating payment of the civil penalty shall not
be shared or disclosed under any circumstances with any other agency or
law enforcement division.

(b) The person shall, upon payment of the required civil penalty, be
provided with information related to the dangers of underage use of
cannabis and information related to cannabis use disorder by the office.

(c) The issuance and subsequent payment of such civil penalty shall in
no way qualify as a criminal accusation, admission of guilt, or a
criminal conviction and shall in no way operate as a disqualification of
any such person from holding public office, attaining public employment,
or as a forfeiture of any right or privilege.

5. Cannabis recovered from individuals who are found to be in
violation of this chapter may after notice and opportunity for a hearing
be considered a nuisance and shall be disposed of or destroyed.

6. Except as otherwise provided for in this chapter, the board shall
promulgate rules and regulations providing for notice and opportunity to
be heard, prior to the imposition of any civil penalty under this
section, except where such civil penalty is being sought in an action or
proceeding by the attorney general as otherwise authorized in this
chapter, provided, further, nothing in this section shall prohibit the
board from suspending, revoking, or denying a license, permit,
registration, or application in addition to the penalties that may be
assessed under this section.

7. The penalties provided for in subdivision one of this section may
be recovered by the attorney general on behalf of the board or office in
an action or proceeding brought pursuant to section one hundred
thirty-eight-a of this chapter.

8. Any person who knowingly and unlawfully sells, gives, or causes to
be sold or given, any cannabis or cannabis products for which the sale
of such products requires a license, permit, or registration under this
chapter where such person owns and/or is principally responsible for the
operation of a business where such products were sold, given, or caused
to be sold or given without having obtained a valid license, permit or
registration therefor shall be guilty of a class A misdemeanor. For the
purposes of this section, "operation of a business" shall mean engaging
in the sale of, or otherwise offering for sale, goods and services to
the general public, including through indirect retail sales.