Curaleaf Pressured Governor to Sign Anti-Inversion Act
The operator urged state approval for a new law that targets illicit cannabis supply chain incursions.
Updated on Sept. 23, 2026 in Advertising
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Curaleaf published a full-page advertisement in the New York Post lobbying Governor Kathy Hochul to sign the Cannabis Supply Chain and Anti-Inversion Act. The legislation aims to curb the influx of untaxed products into the state's expanding legal market.
Why it matters
The proposed law is intended to protect state tax revenue and ensure consumer safety by preventing out-of-state illicit cannabis from entering the regulated supply chain. Operators are navigating a market where licensed sales are projected to reach $1.9 billion in 2026.
Licensed cannabis dispensaries are on track for $1.9 billion in 2026 sales, a significant increase from the $155 million recorded in 2023. The pending legislation establishes a $10,000 civil penalty for each day of verified cannabis inversion.
The players
Curaleaf
A multi-state operator with six cannabis dispensaries in New York.
Kathy Hochul
The Governor of New York tasked with signing or vetoing the pending state legislation.
Office of Cannabis Management
The New York state regulatory body responsible for overseeing the cannabis market and enforcing licensee compliance.
The details
The Cannabis Supply Chain and Anti-Inversion Act defines illicit cannabis as any product lacking required state tax payment. It empowers the Office of Cannabis Management to seek suspension orders against any licensee suspected of involvement in the inversion process. These measures supplement the state's existing track-and-trace system, which was implemented via Metrc in 2026 to monitor the movement of products from seed to sale.
Timeline
December 2022: Adult-use cannabis sales commenced in New York.
January 2024: Curaleaf began adult-use cannabis sales in New York.
June 2026: The New York state legislature passed the Anti-Inversion Act.
September 23, 2026: Curaleaf published the full-page newspaper advertisement.
Market Landscape
The push for the Cannabis Supply Chain and Anti-Inversion Act follows a period of rapid market scaling, with licensed sales growth occurring alongside the implementation of a Metrc-based track-and-trace system. This legislative effort marks a shift toward stricter supply chain enforcement as state officials work to capture tax revenue.
Licensed operators should monitor the Governor's office for the official signing of the Act, which carries a $10,000 daily penalty for non-compliance. Review your current supply chain documentation to ensure all products sold are fully tax-compliant under the new regulatory definition.
The takeaway
The move highlights the intense focus on supply chain integrity as the legal market matures toward a projected $1.9 billion in annual sales. Operators should audit their own inventory procurement processes to confirm compliance with state-mandated tax and track-and-trace requirements.
Further reading
For more on industry marketing and legislative advocacy, visit the Advertising section.
Source note: This article includes information reported by Cannabis Business Times.
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