N.Y. Cannabis Law Section 126
License to be confined to premises licensed

  • premises for which no license shall be granted
  • transporting cannabis

1.

A registration, license, or permit issued to any person, pursuant to this chapter, for any registered, licensed, or permitted premises shall not be transferable to any other person, to any other location or premises, or to any other building or part of the building containing the licensed premises except in the discretion of the office. All privileges granted by any registration, license, or permit shall be available only to the person therein specified, and only for the premises licensed and no other except if authorized by the board. Provided, however, that the provisions of this section shall not be deemed to prohibit the amendment of a registration or license as provided for in this chapter. A violation of this section shall subject the registration, license, or permit to revocation for cause.

2.

Where a registration or license for premises has been revoked, the board in its discretion may refuse to issue a registration, license, or permit under this chapter, for a period of up to five years after such revocation, for such premises or for any part of the building containing such premises and connected therewith.

3.

In determining whether to issue such a proscription against granting any registration, license, or permit for such five-year period, in addition to any other factors deemed relevant to the board, the board shall, in the case of a license revoked due to the sale of cannabis to a person under the age of twenty-one not otherwise authorized by this chapter, determine whether the proposed subsequent licensee has obtained such premises through an arm’s length transaction, and, if such transaction is not found to be an arm’s length transaction, the office shall deny the issuance of such license.

4.

For purposes of this section, “arm’s length transaction” shall mean a sale of a fee of all undivided interests in real property, lease, management agreement, or other agreement giving the applicant control over the cannabis at the premises, or any part thereof, in the open market, between an informed and willing buyer and seller where neither is under any compulsion to participate in the transaction, unaffected by any unusual conditions indicating a reasonable possibility that the sale was made for the purpose of permitting the original licensee to avoid the effect of the revocation. The following sales shall be presumed not to be arm’s length transactions unless adequate documentation is provided demonstrating that the sale, lease, management agreement, or other agreement giving the applicant control over the cannabis at the premises, was not conducted, in whole or in part, for the purpose of permitting the original licensee to avoid the effect of the revocation:

(a)

a sale between relatives;

(b)

a sale between related companies or partners in a business; or

(c)

a sale, lease, management agreement, or other agreement giving the applicant control over the cannabis at the premises, affected by other facts or circumstances that would indicate that the sale, lease, management agreement, or other agreement giving the applicant control over the cannabis at the premises, is entered into for the primary purpose of permitting the original licensee to avoid the effect of the revocation.

5.

No registered organization, licensee or permittee shall transport cannabis products or medical cannabis except in vehicles owned and operated by such registered organization, licensee or permittee, or hired and operated by such registered organization, licensee or permittee from a trucking or transportation company permitted and registered with the board.

6.

No common carrier or person operating a transportation facility in this state, other than the United States government, shall knowingly receive for transportation or delivery within the state any cannabis products or medical cannabis unless the shipment is accompanied by a copy of a bill of lading, or other document, showing the name and address of the consignor, the name and address of the consignee, the date of the shipment, and the quantity and kind of cannabis products or medical cannabis contained therein.

Source: Section 126 — License to be confined to premises licensed; premises for which no license shall be granted; transporting cannabis, https://www.­nysenate.­gov/legislation/laws/CAN/126 (updated Apr. 9, 2021; accessed Oct. 26, 2024).

Accessed:
Oct. 26, 2024

Last modified:
Apr. 9, 2021

§ 126’s source at nysenate​.gov

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