Following Surprise Deal, New York Delays Cannabis Track-and-Trace Until 2026
New York Market Faces Another Delay
New York’s $1.5 billion cannabis industry will remain without a functioning seed-to-sale tracking system until early 2026, state regulators confirmed.
The announcement marks the third delay in implementing track-and-trace, a standard feature in most legal cannabis markets. The system is intended to monitor cannabis from cultivation through retail sale, curbing illegal diversion and ensuring compliance.
Since legal sales began in December 2022, New York has operated without such oversight, fueling ongoing concerns about “inversion” and “diversion”—where illicit products enter licensed supply chains and regulated cannabis makes its way into unlicensed stores.
Missed Timeline and Vendor Shake-Up
Earlier this summer, the Office of Cannabis Management (OCM) laid out a staggered rollout that was supposed to begin Aug. 1. Cultivators were expected to comply first, followed by distributors, manufacturers, and retailers over subsequent months.
That plan collapsed in August after an industry shake-up involving BioTrack, the state’s chosen vendor, and Metrc, the country’s dominant cannabis compliance software provider.
New York had awarded BioTrack a five-year, $1.2 million contract in 2022. But on Aug. 5, BioTrack announced a strategic partnership with Metrc in which it relinquished its government-facing operations. As a result, New York regulators pivoted, announcing that all license holders will now use Metrc’s platform instead of BioTrack.
New Timeline Still Uncertain
The OCM said it is “actively working with Metrc to develop a project timeline, with a targeted integration go-live in early 2026.” The agency has not provided a specific launch date.
Metrc, based in Lakeland, Florida, already operates compliance systems in 29 states. With New York added, the company will control track-and-trace in 30 markets.
The change leaves licensees in limbo. Ahead of the originally planned rollout, many New York cannabis operators had already raised concerns over confusing requirements, including a controversial mandate to purchase BioTrack ID tags for nearly every product. It is unclear whether those costs will carry over under Metrc’s system.
Cost Comparisons Highlight Stakes
The financial scale of the New York contract also highlights how unusual the shift has been. BioTrack’s $1.2 million agreement was far smaller than Metrc’s typical state deals.
For example, Metrc’s four-year contract with California, which began July 2024, is worth $113 million. The terms of the Metrc–BioTrack partnership have not been disclosed.
Observers say the abrupt vendor change reflects both the rapid consolidation of compliance technology providers and the regulatory challenges facing New York as it tries to stabilize its cannabis program.
A Market Waiting for Oversight
Until the new system is online, New York’s cannabis market—already the largest on the East Coast—remains one of the few operating without seed-to-sale tracking.
For regulators, the absence of oversight hampers enforcement against illicit operators, who continue to thrive alongside licensed businesses. For companies, the delay prolongs uncertainty and complicates compliance planning.
As OCM works with Metrc on an implementation schedule, industry stakeholders are watching closely for clarity on costs, compliance deadlines, and whether this latest timeline will finally stick.
