Federal Judge Strikes Down Part of New Jersey’s Hemp Law, Ruling It Favors In-State Businesses
A recent court decision has sent shockwaves through New Jersey’s hemp industry, as a federal judge ruled that parts of the state’s new hemp law are unconstitutional. The law, which was signed by Governor Phil Murphy in September, aimed to regulate the sale of intoxicating hemp products, such as delta-8 and THC-infused seltzers. However, the judge’s ruling has left many in the industry wondering what the future holds.
According to the ruling, the law gives an unfair advantage to in-state hemp businesses, which is in violation of a 2018 federal law that legalized hemp nationwide. The judge also ruled that the law’s regulatory language is valid, but the commission has six months to draft rules and regulations for intoxicating hemp products, such as testing and labeling standards.
The ruling has left many hemp businesses in a state of uncertainty, as they are unsure of how to proceed. “Everybody’s kind of in this holding pattern, trying to figure everything out and understand what the intent is,” said Philip Petracca, owner of THC drink startup Bella Ray Beverage. “Financially, it’s devastating. We’re $1.5 million into this thing and now everything’s on hold. You have 33 farmers, 1,500 mom-and-pop businesses through the state and we’re losing our businesses, we’re losing our livelihoods.”
The New Jersey Cannabis Regulatory Commission has announced that it will only enforce the age restriction provision of the law, and will not enforce the temporary halt on sales and manufacture of intoxicating hemp products. The commission has six months to draft rules and regulations for intoxicating hemp products, and until then, any manufacturer or retailer making or selling such products would be in violation of state law.
The ruling has also raised concerns about the potential impact on the state’s liquor industry, as well as the hemp industry. “I don’t think this did any favors for the hemp industry,” said Joshua Bauchner, an attorney representing cannabis and hemp clients across New Jersey. “What we have now is that the whole hemp industry is going to be subject to the CRC.”
The push for the state to address intoxicating hemp products has been ongoing, with many stakeholders calling for a comprehensive regulatory framework. The court’s ruling has accelerated the need for a clean-up bill to clarify many of the issues cited by hemp stakeholders and Governor Murphy.
