Date: August 28, 2024Attorney: Joshua S. Bauchner

Joshua S. Bauchner, Partner and Chair of the Cannabis, Hemp and Psychedelics Practice Group at Mandelbaum Barrett PC, was highlighted in the Times Union article titled “Lawsuit says NY pot regulators are trampling on hemp stores’ rights” where it explains how hemp retailers are challenging the state’s aggressive regulatory actions.

You can read the full Times Union article here.

A lawsuit was filed late Monday in Albany, challenging New York’s ongoing regulatory actions against licensed hemp stores. The suit, brought against the state Office of Cannabis Management, claims the agency and its oversight board have violated the constitutional rights of hemp retailers through aggressive enforcement measures.

The case, filed in the state Supreme Court in Albany, represents three licensed hemp stores: Smoke N Save in Saratoga Springs, Two Strains in Queensbury, and Breckenridge in Manhattan. The New York City Sheriff’s Office, also named as a defendant, is accused of leading these aggressive inspections, which store owners and their attorneys describe as “military-style raids.”

According to the Times Union, state regulators and police have raided hundreds of licensed hemp stores across New York in recent months, seizing millions of dollars worth of cannabinoid products. These actions have targeted goods that retailers have legally sold for the past six years under state and federal laws that expanded hemp legalization.

The raids follow the implementation of new regulations by the state Cannabis Control Board in December. These rules, introduced without public input or legislative involvement, have tightened controls on hemp products, effectively banning many items that have been legally sold by licensed hemp retailers since the legalization of marijuana in New York in 2021.

The lawsuit, similar to one filed two weeks ago in U.S. District Court in Manhattan, argues that state regulators are unjustly treating licensed hemp stores as if they were illegal marijuana shops. The civil action seeks a temporary restraining order to prevent the New York City Sheriff’s Office and Office of Cannabis Management from conducting further seizures without a formal hearing.

Hemp store owners report that these inspections are often carried out by large contingents of heavily armed police, who allegedly disable security cameras, refuse to provide identification, and threaten to forcibly open locked areas if employees do not comply. The lawsuit claims that these tactics are unlawful and that the authorities are enforcing the wrong regulations, as the rules governing marijuana do not apply to licensed hemp retailers.

The enforcement actions have severely impacted the hemp industry, with many store owners claiming the new regulations have crippled their businesses. The Office of Cannabis Management has not responded to inquiries about the number of stores inspected, products seized, or the outcomes of these actions. Many hemp retailers were unaware that their products had become illegal until they were seized in recent months.

Joshua S. Bauchner, Partner and Chair of the Cannabis, Hemp, and Psychedelics Practice Group at Mandelbaum Barrett PC, is handling both the Albany lawsuit and the one filed in federal court. Joshua and other attorneys criticize the state for failing to adequately inform hemp retailers of the new regulations.

The Office of Cannabis Management has declined to comment on the pending litigation.

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