(ALBANY, NY) - Today, Senator Jeremy Cooney (D-Rochester) announced the passage of his “Cannabis Supply Chain Integrity and Anti-Inversion Act” (S8951B) to prohibit the presence of illegal cannabis products in New York’s legal supply chain. Cannabis inversion is when legal businesses permitted by the state sell or utilize products from unlicensed entities imported into New York. 

“We’ve made significant strides in building out a successful legal cannabis market in New York, but this market can only continue to grow if New Yorkers can trust the source and safety of their products,” said Senator Cooney. “Illicit products are dangerous and untrustworthy, which is why this bill says enough is enough. It’s time to ensure only legal products are hitting our shelves, to hold bad actors accountable, and to uphold the integrity of our legal market. I want to thank Assemblymember Dais for helping make this a reality!” 

The Senator explained that bad actors have been exploiting weaknesses in the state’s regulatory framework when it comes to testing, tracking, and accountability. This poses a threat to consumer health and safety, deprives the state of tax revenue, and puts licensees that properly follow state rules at a disadvantage. 

Senator Cooney’s bill clearly defines cannabis inversion to strengthen enforcement actions, bans the practice of inversion by licensees and testing facilities, ensures high standards at laboratory testing facilities, protects whistleblowers, and holds individuals responsible. 

The bill would authorize OCM to seek suspension orders against licensees or laboratories suspected of cannabis inversion and creates civil penalties of no more than five times the revenue from the prohibited sale of illicit cannabis. 

The bill passed both the Senate and Assembly and now awaits signature from Governor Hochul. 

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