Empire State Green Standard Alliance Applauds Passage of Landmark Cannabis Inversion Enforcement Bill

The Empire State Green Standard Alliance (ESGSA) today applauded the New York State Legislature for “passing S8951B/A10698B, landmark legislation designed to combat cannabis inversion and provide regulators with powerful new tools to protect consumers and the integrity of New York’s legal cannabis market.”

The legislation originated from ESGSA’s first-ever white paper on cannabis inversion, that documented the growing threat posed by illicit cannabis entering New York’s regulated supply chain and outlined a comprehensive legislative framework to address the problem.

The bill was introduced by Senator Jeremy Cooney and advanced in the Assembly by Assemblyman Landon Dais, who worked to strengthen and refine the legislation as it moved through the legislative process.

“Today is a major victory for cannabis consumers, responsible operators, and anyone who believes the rules should matter,” said Herb Barbot, Chair of the Empire State Green Standard Alliance. “ESGSA identified cannabis inversion as one of the early threats facing New York’s legal cannabis market, developed a policy solution, and worked with legislative leaders to turn that vision into law.”

Cannabis inversion refers to the introduction of illicit cannabis into the regulated marketplace through fraudulent or deceptive means. Such activity undermines consumer trust and confidence, disadvantages compliant licensed businesses, and threatens the long-term stability of New York’s cannabis industry.

The legislation establishes what is believed to be the nation’s first statutory framework specifically targeting cannabis inversion. Among its provisions, the bill:

• Formally defines cannabis inversion in New York law;

• Creates a direct statutory prohibition against cannabis inversion activities;

• Expands regulators’ authority to investigate inversion schemes;

• Prohibits fraudulent testing results, falsified certificates of analysis, manipulated inventory records, and other methods used to disguise illicit cannabis as legal product;

• Authorizes stronger enforcement actions against licensees engaged in inversion;

• Enhances penalties for bad actors who undermine the legal marketplace; and

• Provides regulators with additional authority to suspend licenses, seize illicit products, and protect consumers.

“When ESGSA released its Cannabis Inversion White Paper, many policymakers had never heard the term,” Board Member Mark Wagner said. “Today, New York stands on the verge of becoming the first state in the nation to codify cannabis inversion into law and establish specific penalties to combat it.”

ESGSA praised Senator Jeremy Cooney for recognizing the seriousness of the issue and introducing the legislation in the Senate.

“Senator Cooney understood immediately that protecting consumers and preserving the integrity of the legal market required stronger safeguards,” Board Member Tiffany Walters said. “His leadership transformed an important policy concept into a legislative priority.”

ESGSA also praised Assemblyman Landon Dais for introducing the legislation in the Assembly and helping to strengthen the bill.

“Assemblyman Dais demonstrated tremendous leadership throughout this process,” Board Member Linda Baldwin said. “He recognized that honest cannabis businesses cannot compete fairly when illicit products are allowed to infiltrate the regulated market. His work helped make this legislation stronger.”

With legislative passage now complete, ESGSA is calling on Governor Kathy Hochul to sign the bill into law.

“Governor Hochul has made clear that consumer protection and market integrity are essential to the success of New York’s cannabis industry,” Barbot said. “The Legislature has done its job. We respectfully urge the Governor to sign this bill and make New York the national leader in combating cannabis inversion.”

If signed into law, New York would become a national model for protecting consumers and ensuring that legal cannabis products are safe, tested, traceable, and compliant with state law.