New York cannabis regulators are attempting to oust a licensed operator from the adult-use marketplace whom they’re accusing of “aiding and abetting” in unlicensed processing activity through a reverse licensing scheme.

The state’s Office of Cannabis Management (OCM) filed multiple charges Oct. 20 against Omnium Health Inc. (d/b/a Omnium Canna), a licensed adult-use processor and distributor in Long Island.

The OCM claims that a February 2025 investigation uncovered contracts between Omnium and unlicensed operators whom Omnium charged rent, allowing them to use its facilities and resources to manufacture and package cannabis products that landed on licensed dispensary shelves as part of a “rent-a-license” scheme.

“Omnium’s alleged conduct is a blatant breach of the licensing rules designed to ensure transparency and fairness in the legal market,” OCM Executive Deputy Director Felicia A. B. Reid said in an Oct. 20 press release. “Our state’s cannabis laws are clear: Licenses are not transferable and only licensed operators may produce and distribute cannabis. OCM’s move today ensures that regulated businesses do not exploit loopholes or take advantage to undermine legal operators who play by the rules.”

In filing a notice of pleading, OCM is attempting to revoke Omnium’s licenses and prevent the company from applying for future licensure.

The state’s regulators are also seeking civil penalties related to the projected revenue from the sale or possession of any unregulated cannabis products, as well as the recall and destruction of those unregulated products.

“Omnium’s actions violated core principles of our regulatory framework and placed unvetted operators into the heart of New York’s legal market,” said Stephen Geskey, OCM deputy executive director of labs, compliance and licensing. “This is a textbook example of reverse licensure, and OCM will not tolerate it.”

The possibilities of “reverse licensure” in New York’s adult-use cannabis market are exacerbated by the state’s delay in implementing a third-party seed-to-sale tracking system nearly three years after adult-use dispensary sales launched in December 2022.

The OCM plans to integrate track-and-trace provider Metrc’s software and technology into the state’s adult-use program by Dec. 17 for all licensees. Access to Metrc’s application programming interference (API) and testing endpoints will be available on Oct. 12 for operators to begin the transition.

The majority of state cannabis programs have a third-party provider, like Metrc or BioTrack, to help prevent product diversion or inversion. Without a system in place, former New York Cannabis Control Board Member Jennifer Gilbert-Jenkins called product inversion the state’s “dirty secret” during a December 2024 board meeting.

“How are we validating that the products in stores are actually coming from New York State?” she questioned. “Because the rate of inversion in this market is the dirty secret that everybody is talking about … that the amount of product that’s coming into our legal, authorized dispensaries from out of state is displacing New York product.”

In February 2025, the OCM launched a Trade Practices Bureau dedicated to safeguarding the integrity of the state’s cannabis program through investigating violations, abuse and noncompliance to hold “bad actors” accountable.

In seeking revocation, debarment and monetary penalties against Omnium in this week’s announcement, the OCM also ordered a statewide retail recall of Omnium-linked products. In Monday’s release, the OCM included a photo of a product’s packaging labeled “Omnium d/b/a MFused.” OCM investigators concluded that MFused rented Omnium’s premises and license.

In covering the OCM’s investigation, The New York Times reported that not only is Mfused connected to Omnium, but so too are popular brands Stiiizy and Grön. The article states that Grön continues to rent space in Omnium facilities and draws attention to another article that details Grön’s business partnerships with licensees in other states.

Grön, which has a Type 2 processing license in New York, called the NYT’s article “inaccurate” in a company statement provided to Cannabis Business Times:

“We are disheartened and disappointed with the inaccurate reporting done by the New York Times today in an article that misrepresents our relationships, business practices and general code of conduct in New York. The article, about challenges facing a former partner of ours in New York State, suggests that Grön – a company with an unparalleled reputation in the cannabis industry for transparency and compliance, which are core values of our business – participated in improper licensing and manufacturing in New York State. These claims are entirely false, and we implore the New York Times to review this matter and issue a correction at once.”

An edibles brand from Oregon, Grön contests that it operates in a building completely independent of Omnium under full compliance with the OCM.

“Our relationship with Omnium was short, and during that time, Grön operated in total compliance with OCM’s regulations, which expressly permit out-of-state brands to partner with existing New York processing licensees, proving there is zero merit to any story of questionable material being used,” according to the company statement.

In February, the OCM’s newly launched Trade Practices Bureau (TPB) examined Omnium’s audit and inspection records, reviewed contracts between the company and other businesses, and interviewed several witnesses, according to the OCM.

In Monday’s notice of pleading, the OCM also accused Omnium of material misrepresentation and failing to disclose substantial changes to its business operations.

“Reverse licensing has no place in New York’s market,” TPB Director James Rogers said. “This kind of cheating robs compliant businesses of their right to compete in a fair market. Acting Executive Director Reid set up the bureau to address these kinds of threats to market integrity. The TPB team is grateful to all the individuals who came forward with crucial information and encourage others to do the same. If we work together, we can keep New York’s cannabis market above board.”

The last three months have seen a surge in congressional lobbying from major alcohol companies and associations aiming to influence federal hemp laws, with a focus on THC beverages that many consumers are turning to as beer and liquor alternatives.

According to newly published lobbying disclosures from the 3rd quarter of 2025, a wide range of cannabis and alcohol interests put dollars toward various legislative issues, including marijuana banking, rescheduling, legalization and hemp regulations.

But there was an especially notable amount of lobbying activity around hemp THC beverages as Congress and state legislatures across the country discuss policy options for intoxicating cannabinoid products—with some pushing for an outright ban and others promoting a more rigorous regulatory framework that prioritizes public health and deterring youth access.

While it’s not unusual for alcohol interests to be among those disclosing lobbying around cannabis legislation, this latest quarter saw major brands such as Bacardi North America and Moet Hennessy USA join the action.

The summaries of their lobbying focus disclosed in the reports don’t specify their intent—or the amount of time, money and energy spent on this issue as opposed to others of concern—but the alcohol industry has shown increased interest in being part of the conversation around cannabis laws as they’ve seen more consumers gravitate toward marijuana and hemp instead of booze.

Beyond marijuana and alcohol industry stakeholders, the filings also reveal lobbying spending on cannabis issues from advocacy groups, government entities, non-cannabis corporations, financial institutions are more.

Some of the most notable players weighing in with Congress on cannabis issues last quarter include the office of Colorado Gov. Jared Polis (D), Altria, Molson Coors, PayPal, DoorDash and the American Civil Liberties Union.

Here’s a look at some of the key interests that lobbied on cannabis policy last quarter:

Alcohol industry

• ​Altria Client Services LLC: Discussions related to FDA Tobacco and Cannabis Product Enforcement Policy.
• Anheuser-Busch Companies: Differentiation of beer from cannabis and hemp in tax and regulation; Differentiate beer from hemp
• Bacardi North America: Regulation of hemp-derived THC products generally.
• Beer Institute: Issues related to intoxicating hemp; Issues related to the regulation of Hemp.
• Diaegeo North America: Definition of industrial hemp and legalization contained in 2018 Farm Bill Reauthorization (Pub. L. No. 115-334).
• Distilled Spirits Council: Policies impacting treatment of hemp derived products
• Moet Hennessy USA: beverage regulations pertaining to intoxicating hemp.
• Molson Coors Beverage Company USA LLC: General Education on Regulation of Intoxicating Hemp Beverages
• ​National Beer Wholesalers Association: Issues related to legal banking and effective regulation for cannabis products; Issues related to the legal status and regulation of cannabis, including industrial hemp and its derivative products; Issues related to the U.S. Food and Drug Administration (FDA) and the regulatory oversight of cannabidiol (CBD) products; S. 2113 – the HEMP Act – monitor status of legislation
• Wine and Spirits Wholesalers of America, Inc.: Intoxicating Hemp/ cannabis Policy Issues
• Wine Institute: Cannabis and Hemp Oversight Proposals

Government entities

• Colorado Gov. Jared Polis’s (D) office: cannabis rescheduling
• National Association of State Treasurers: banking issues related to marijuana policies.

Non-cannabis corporations and associations

• PayPal, Inc.: Issues related to cannabis banking, SAFE Banking Act
• DoorDash, Inc: Matters related to general hemp issues
• Convenience Distribution Association: Hemp related issues
• American Civil Liberties Union: H.R. 5068-MORE Act-Issues Lobbied: Marijuana Decriminalization; Cannabis Administration and Opportunity Act and Marijuana Opportunity Reinvestment and Expungement Act – marijuana decriminalization
• National Association of Criminal Defense Lawyers: Marijuana Opportunity Reinvestment and Expungement (MORE) Act (H.R. 5068)
• American Council of Life Insurers: H.R.__/S. __ SAFE Banking Act – This bill would create protections for financial institutions that provide financial services to State-sanctioned marijuana businesses and service providers for such businesses. Issue: Cannabis legislation; S. __ – SAFER Banking Act – This bill would create protections for financial institutions that provide financial services to State-sanctioned marijuana businesses and service providers for such businesses. Issue: Cannabis legislation.
• American Property Casualty Insurance Association: Marijuana Impairment Standard; Marijuana Research
• Associated General Contractors of America: Marijuana use and protections for workplace safety and health
• American Trucking Associations: DEA proposal for the reclassification of marijuana from a Schedule I to Schedule III substance under the Controlled Substance Act.
• Credit Union National Association, Inc.: Issues related to marijuana banking
• ​Community Bankers Association of Illinois: Federal Safe Harbor for Banking Cannabis-Related Businesses; Without taking a position on the legalization of cannabis, CBAI supports a federal safe harbor from sanctions for financial institutions that choose to serve legally compliant cannabis-related businesses (CRBs) and ancillary businesses that have commercial relationships with CBRs, in states where cannabis is legal. Allowing these businesses access to the traditional banking system and its services, versus operating exclusively in cash, is a public safety issue.
• Michigan Credit Union League: While MCUL takes no position on the issue of cannabis legalization, it supports the introduction and passage of legislation that would provide a safe harbor for financial institutions to serve their members needs in states where cannabis use has become legal.
• Real Estate Roundtable: Cannabis Issues, Safe Banking Act (H.R. 1595)
• Wholesale & Specialty Insurance Association: enactment of a safe harbor for insurers of state-legal cannabis businesses; Issues related to establishing a safe harbor for insurance companies to provide services to state-legal cannabis operations

Cannabis companies and associations

• ​Coalition for Cannabis Policy, Education and Regulation (represented by former Rep. Greg Walden (R-OR): Issues pertaining to government-wide federal regulation of cannabis; H.R. 2934 STATES 2.0 Act
• National Cannabis Roundtable: S.2860 – The Secure and Fair Enforcement Regulation Banking Act (SAFER Banking Act).
• US Cannabis Council (represented by former Trump advisor Bryan Lanza): related to cannabis Industry
• American Trade Association for Cannabis and Hemp: Treatment of hemp-derived intoxicants as related to farm bill and appropriations packages.
• Hemp Beverage Alliance: Issues pertaining to the regulation of hemp products; Farm Bill; FY2026 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act (H.R.4121/S.2256).
• U.S. Hemp Roundtable: Issues related to regulation of Hemp products; Issues related to provisions in the annual appropriations process that regulate Hemp.
• Cresco Labs LLC: SAFER Banking, Banking Act, Section 2860, Issues related to cannabis laws and regulations.
• Curaleaf, Inc: Proposals to create protections for depository institutions that provide financial services to cannabis-related legitimate businesses and services for such businesses (SAFE Banking Act); Proposal to amend the Controlled Substances Act regarding marihuana, and other proposals and issues related to the legalization of cannabis; Tax issues relating to cannabis; Inclusion of cannabis employees in job reports.
• Jushi Holdings Inc.: Issues related to closing the 2018 Farm Bill hemp loophole; H.R. 4121 – Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2026;  S. 2256 -Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2026; The include LAW The rescheduling of cannabis from Schedule I to Schedule III of the Controlled Substances Act.
• Trulieve Cannabis Corp.: Cannabis and cannabis related legislation, including SAFER Banking Act; Provide strategic counsel and advocate on issues regarding banking policy and regulation; medical marijuana policy and regulation
• Verano Holdings, LLC: Controlled Substances Act; cannabis rescheduling; SAFE Banking Act; 280E taxation; Provide strategic counsel and advocate on issues related to SAFE Banking Act, other related tax issues, and cannabis rescheduling

Prohibitionists

• Smart Approaches to Marijuana: The federal government’s role in enforcing marijuana laws, the legalization of marijuana; Closing the loophole for hemp Delta-8
• SAM Action, Inc.: Advocating for a prohibition on hemp-derived intoxicants; Advocating against CCP-operating marijuana farms; Lobbying activities related to appropriations items including blocking marijuana rescheduling (CJS), creating an exception to the Rohrabacher-Farr Amendment to allow the Department of Justice to enforce USC 860 (CJS), getting an investigation of the HHS marijuana rescheduling review (Ag/FDA and LHHS), recommending more research on high-potency marijuana (Ag/FDA and LHHS), preventing the advocation of illegal drug use in anti-impaired driving advertisements, encouraging federal action against false therapeutic claims made about marijuana, and prohibiting hemp intoxicants in in the Agriculture Appropriations bill; Lobbying related to support for the No Deductions for Marijuana Businesses Act (S.471/H.R.1447)

Miscellaneous

• University of Mississippi: federal regulation of cannabis research

So far in 2025—despite the lobbying efforts that went into advancing cannabis issues on Capitol Hill—there’s been limited return on investment.

While congressional lawmakers have said they want to see a bipartisan marijuana banking bill pass this year, and President Donald Trump said in late August that a decision on rescheduling was imminent, those reforms have not come to fruition.

As far as hemp is concerned, the House and Senate have taken different approaches in their respective appropriations legislation, with the former advancing a bill that would ban hemp products containing any amount of THC and the latter omitting such language.