Bill > S08951

This bill, known as the "cannabis supply chain integrity and anti-inversion act," aims to protect New York's regulated cannabis market by defining and prohibiting "cannabis inversion," which is any action or inaction involving illicit cannabis. Illicit cannabis is expanded to include products with unpaid taxes, those sourced from unlicensed entities, or those with misrepresented origin, cultivation, manufacturing, or chain of custody. The act establishes significant penalties for cannabis inversion, including substantial civil fines (at least three times the retail value of the illicit product or $250,000, whichever is greater), seizure and forfeiture of illegal products and proceeds, and potential license revocation. It also holds "responsible persons," defined as individuals with operational or managerial control, jointly and severally liable for penalties if they knew or should have known about cannabis inversion and failed to act. Furthermore, the bill introduces whistleblower protections, making it illegal for any cannabis business or contractor to retaliate against employees or contractors who, in good faith, report or attempt to report suspected violations to the authorities, with retaliation itself being a punishable offense.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S8951