BILL NUMBER: S8951
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the cannabis law, in relation to prohibiting cannabis
inversion and establishing penalties and whistleblower protections
 
PURPOSE:
The purpose of this bill is to protect the integrity of New York's regu-
lated cannabis market by explicitly prohibiting cannabis inversion.
 
SUMMARY OF PROVISIONS:
Section 1: Establish the title "cannabis supply chain integrity and
anti-inversion act".
Section 2: Provides the legislative findings and intent.
Section 3: Amends Section 136 of the cannabis law by expanding the defi-
nition of "illicit cannabis" to include inverted cannabis and cannabis
products, i.e. sourced from unlicensed entities or misrepresented as to
origin, cultivation site, manufacturing process, chain of custody, or
testing results.
Section 4: Adds new section 125a to the cannabis law defining "cannabis
inversion", prohibits the use of inverted cannabis, establishes enforce-
ment and penalties.
Section 5: Adds new section 140 to the cannabis law establishing whist-
leblower protections prohibiting retaliation against employees or
contractors who, in good faith, report suspected cannabis inversion to
regulators or law enforcement.
Section 6: Severability Clause
Section 7: Establishes the effective date.
 
JUSTIFICATION:
The success of New York's regulated cannabis market depends on transpar-
ency, traceability, and lawful sourcing. Cannabis inversion the intro-
duction of illicit or misrepresented cannabis into the legal supply
chain, poses a serious threat to consumer health and safety, undermines
public confidence in legalization, deprives the state of tax revenue,
and unfairly puts compliant licensees who adhere to the law at a disad-
vantage.
While New York has established a comprehensive regulatory framework for
cannabis, gaps remain that allow bad actors to exploit weaknesses in
testing, tracking, and accountability. This bill directly addresses
those gaps by clearly defining cannabis inversion, strengthening
enforcement authority, holding responsible individuals accountable, and
ensuring that laboratory testing facilities meet the highest standards
of integrity.
By deterring illicit conduct and protecting whistleblowers, this legis-
lation reinforces New York's commitment to a fair, transparent, and
well-regulated cannabis market that prioritizes public health, consumer
protection, and economic fairness.
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
This bill will have an undetermined fiscal impact. Any enforcement costs
are expected to be absorbed within existing resources. There is the
possibility for civil penalties that may generate additional revenue.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred and eightieth day after it
becomes law.

Statutes affected:
S8951: 136 cannabis law