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This entry was published on 2022-04-08
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SECTION 494
Registration and renewal
Tax (TAX) CHAPTER 60, ARTICLE 20-C
§ 494. Registration and renewal. (a) (i) 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 before engaging
in business. 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.

(ii) 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 subparagraph (i) of this paragraph 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. 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; or

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

(2) In addition to the grounds for revocation in paragraph (1) of 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 for a period of up to one year for the first
such possession or sale; (2) for a second such possession or sale within
a period of five years by such person, the registration of such person
may be revoked for a period of up to three years; (3) for a third such
possession or sale within a period of up to five years by such person,
the registration of such person may be revoked for a period of five
years. 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.

(c) 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.

(d) 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.

(e) 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.

(f) 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 five
hundred dollars for each month or part thereof during which adult-use
cannabis products are possessed without such certificate, not to exceed
ten thousand dollars in the aggregate.