Summary:

NY judge bans warrantless searches of state-licensed hemp stores.
Five hemp businesses won a lawsuit against the Office of Cannabis Management (OCM) and NYC Sheriff's Office.
The raids involved armed officials, seizures of millions of dollars in products, and alleged Fourth Amendment violations.
Future inspections must be limited to two unarmed inspectors, unless specific security concerns exist.
The ruling highlights the challenges faced by hemp businesses navigating New York's complex legal cannabis landscape.

NY Judge Rules Against Warrantless Searches of Hemp Businesses

A New York judge has issued a temporary restraining order against the Office of Cannabis Management (OCM) and the New York City Sheriff’s Office, prohibiting warrantless searches and seizures of state-licensed hemp stores. The ruling comes after five hemp businesses sued, claiming unjust targeting during a series of raids last year.

The Raids and the Lawsuit

The lawsuits, filed last August, allege that the inspections were akin to “military-like raids,” with armed officials seizing millions of dollars worth of products and assets. One business owner reported being held overnight in jail. The affected businesses—Brecken Gold, Breckenridge Café NYC, 7 Leaf Clover, Super Smoke N Save, and Two Strains—are located across Brooklyn, Manhattan, Saratoga Springs, and Queensbury.

The Judge's Ruling

Albany County Supreme Court Justice Thomas Marcelle sided with the businesses, stating that the OCM and Sheriff’s Office likely violated the businesses' Fourth Amendment rights. The judge's ruling mandates that future inspections be limited to no more than two unarmed inspectors, unless a specific security concern is identified.

Impact on Businesses

Sammy Foda, owner of Two Strains, described the experience as intimidating, recounting how 15 armed officials entered his store without a warrant, unplugged security cameras, and detained him. He highlighted the confusion surrounding conflicting online and in-person regulations, making compliance a significant challenge for small businesses.

Foda emphasized the need for clearer, science-based regulations to ensure fair treatment for hemp businesses. Attorney Joshua S. Bauchner, representing the petitioners, criticized the OCM's approach, stating that the inspections targeted both unlicensed marijuana and licensed hemp stores indiscriminately.

Fourth Amendment Concerns

Justice Marcelle's ruling underscores that even administrative agencies are bound by the Fourth Amendment, which protects against unreasonable searches and seizures. While the OCM denies its inspections were raids, the judge's decision clearly indicates a violation of constitutional rights. The significant amount of hemp products seized—potentially millions of dollars' worth—highlights the impact of these actions on the hemp industry.

The ruling also exposes challenges faced by hemp businesses amid New York's evolving legal cannabis landscape. While the state has cracked down on illegal cannabis operations, the impact on licensed hemp businesses raises concerns about fairness and consistency in enforcement.

Source: Forbes