The New York State Supreme Court has banned police and the state regulator from conducting warrantless searches of licensed hemp retailers.

In the latest legal upset for the state’s turbulent legal cannabis industry, a judge issued the landmark ruling against the New York City Sheriff’s Office and the Office of Cannabis Management (OCM).

The case, Super Smoke N Save LLC et al. v. New York State Cannabis Control Board et al., centered on allegations of unconstitutional enforcement actions against licensed hemp stores, including unannounced inspections, seizures of products, and the placement of “Illicit Cannabis” notices on shopfronts, which caused reputational and financial harm.

The court found these warrantless searches and seizures violated the Fourth Amendment, citing a lack of statutory safeguards and unreasonable enforcement practices. Inspections often involved armed officers and destruction of products without proper testing, which the court deemed excessive and beyond the scope of administrative inspections.

The court also noted that licensed businesses listed in the OCM directory were improperly targeted despite their compliance with state regulations.

Under the ruling, the Sheriff’s Office is prohibited from inspecting licensed hemp businesses without a warrant, and OCM must limit its inspections to reasonable measures, such as using no more than two unarmed inspectors unless credible security threats are documented.

The court ordered the return of seized products unless they are proven illegal and required the removal of notices labelling businesses as illicit operators.

It comes as the state continues its efforts to crack-down on the flourishing illicit cannabis market through the so-called ‘Operation Padlock’.

In a separate ruling in October, Queens County Superior Court Justice Kevin J. Kerrigan ruled that this New York City law used to close these stores, which gave city officials extensive authority to close stores without due process, violated the constitutional rights of the store owners.

Under ‘Operation Padlock,’ hundreds of unlicensed cannabis stores have already been closed down.

One such store is Cloud Corner, which challenged these new rules in court following its closure in September. The Queens-based store was shut down under the orders of New York City Sheriff Anthony Miranda, despite a hearing officer from the Office of Administrative Trials and Hearings (OATH) recommending against it, finding that the store was not open at the time of inspection.

Judge Kerrigan argued that such unchecked power granted to city officials undermined the judicial process and the principle of due process, noting that if hearing officers’ rulings are ignored, it renders administrative hearings ineffective.