New York Supreme Court Halts Warrantless Raids on Licensed Hemp Retailers

The ruling stems from a lawsuit filed by five licensed hemp retailers who argued that the enforcement activities targeted not only unlicensed cannabis stores but also state-licensed hemp establishments. The court concluded that the manner in which the raids were conducted exceeded the scope of reasonable regulatory inspections. Justice Marcelle emphasized that the presence of armed officers during these inspections was intended to intimidate and compel compliance, which is inconsistent with the purpose of administrative searches.

As a result of the injunction, the court has directed the OCM to remove any violation notices from the affected retailers’ storefronts and to return any seized products, unless there is definitive proof, obtained through proper testing, that the products contain unlawful amounts of intoxicating cannabinoids or contaminants. Furthermore, the court has limited future inspections by the OCM to no more than two unarmed inspectors, unless there is a specific, credible security concern associated with the business.

This decision underscores the necessity for regulatory bodies to adhere to constitutional protections while enforcing cannabis laws. It also highlights the challenges faced by licensed hemp businesses operating within a complex and evolving legal framework. The ruling may prompt a reevaluation of enforcement strategies to ensure that actions against unlicensed cannabis operations do not inadvertently impact compliant hemp retailers.