New York’s cannabis industry is demanding stronger enforcement and a clearer N.Y. Law to stop the flow of trafficked cannabis from other states into the regulated market. Industry advocates say the infiltration of illegal, untested products — known as “inversion” — threatens both consumer safety and the stability of the legal system.
This week, the state Office of Cannabis Management (OCM) took decisive action by issuing its first charges under existing N.Y. Law against Omnium Health. The company faces a $1 million fine and license revocation after being accused of distributing trafficked cannabis through reverse licensing and other illicit practices. The OCM also issued a recall order, giving Omnium 24 hours to provide details distinguishing legal products from trafficked cannabis.
Joe Rossi, chief strategist of the Empire State Green Standard Alliance, said it was “the worst-kept secret in New York cannabis” that trafficked cannabis has been circulating widely. Rossi and others argue that a stronger N.Y. Law is essential to prevent this illegal activity from undermining the state’s legitimate cannabis businesses.
Advocates are urging lawmakers to codify penalties for inversion, which funnels trafficked cannabis from out-of-state markets into New York’s regulated supply chain. Mack Hueber, president of the Empire Cannabis Manufacturers Alliance, said that clear consequences under N.Y. Law would send a message that such behavior will not be tolerated.
According to OCM officials, the upcoming Seed to Sale tracking system will help enforce N.Y. Law by monitoring every step of the cannabis supply chain from cultivation to consumer. The system aims to make it nearly impossible for trafficked cannabis to enter the regulated market. Director of Regulatory Operations Patrick McKeage noted that the system will improve compliance, facilitate recalls, and prevent the circulation of trafficked cannabis disguised as legal products.
Lawmakers, including Assembly Majority Leader Crystal Peoples-Stokes and Senate Cannabis Subcommittee Chair Jeremy Cooney, say they plan to revisit N.Y. Law during the next legislative session. They believe codifying stronger rules against trafficked cannabis is critical to maintaining the integrity of the legal cannabis market.
For now, OCM’s enforcement against Omnium Health stands as a warning to others. Until a stronger N.Y. Law is in place, advocates fear that trafficked cannabis will continue to erode trust in the state’s legitimate cannabis industry. Ensuring that consumers can buy safe, regulated products free from trafficked cannabis remains a top priority for New York regulators.
