Hemp Businesses in New York Find Themselves in the

Hemp Businesses in New York Find Themselves in the Crosshairs of Law Enforcement

This past summer, hemp businesses in the state of New York sued the Office of Cannabis Management following confiscation of product worth thousands of dollars by law enforcement.

This comes after roughly $15 million allocated to this office was used to expand the enforcement arm centered on taking down thousands of illegal cannabis stores operating in the state. Local police were also given the authority to padlock these stores shut.

Tyler Lehmann, CEO and President of Breckenridge Hemp, revealed that sheriffs in New York City confiscated product valued at more than $130,000 from his legally licensed hemp store in Manhattan then proceeded to lock the store up indefinitely. In addition to this, law enforcement officers flushed products down the toilet at his other shop in Brooklyn during an inspection. The officers confiscated the products without testing them, as state law permits this.

Since May, the Office of Cannabis Management has carried out over 1,000 inspections focused on enforcing regulations.

In their suit, the retailers argued that they were legally licensed to sell the confiscated products by the state agency. Both cannabis and hemp flower are marijuana products that smell and look identical. Under federal law, the sale of hemp products with a THC level of 0.3% or less is allowed.

However, a variance in state law has given rise to a grey area for state inspectors and police to differentiate illegal cannabis shops from hemp stores, leaving hemp businesses at the mercy of false accusations.

Josh Bauchner, the attorney representing the hemp licensees, explains that the state labels any hemp referred to as cannabis as illegal. Bauchner argues that New York’s enforcement regulations are unconstitutional and do not afford individuals due process once they are accused of selling cannabis illegally and before they’ve had a hearing. He adds that an individual cannot be branded a criminal without due process.

The lawsuit also challenges law enforcement officers and the Office of Cannabis Management for implementing regulations meant for individuals selling cannabis without a license to businesses that possess licenses issued by the state.

Bauchner explains that state and city laws grant the sheriff or the Office of Cannabis Management the authority to enforce laws against non-licensees, noting that these regulations cannot be applied to New Yorkers with state-issued hemp licenses.

The retailers are optimistic that the state Supreme Court, which is expected to give its ruling by the end of this month, will rule in their favor.

If there was a comprehensive federal law regulating the entire hemp and hemp derivative space, some of the issues that the hemp businesses in New York and enterprises like Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are facing wouldn’t be as cumbersome as they currently are at the state level.

NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ

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