New York Lawmakers Pass Bill to Prevent Inversion of Illicit Cannabis into Legal Market 

A bill seeking to prevent the inversion of illicit cannabis products into New York’s regulated market has been approved by both the House and Senate, moving it on to Gov. Kathy Hochul (D) for final approval.  

The legislation defines “illicit cannabis” as any cannabis product on which taxes have not been paid, or sourced from unlicensed individuals or entities. The bill bans the practice of inversion by licensees and testing facilities and includes protections for whistleblowers. 

In a statement, state Sen. Jeremy Cooney (D), the bill’s sponsor, said the state has made significant strides in building out a successful legal cannabis market…but this market can only continue to grow if New Yorkers can trust the source and safety of their products.” 

“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.” — Cooney in a press release    

The bill would authorize the Office of Cannabis Management 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.