Federal Judge Overturns Part of New Jersey Hemp Law, Sparking Uncertainty for Delta-8 and THC Seltzer Manufacturers
A recent court ruling has sent shockwaves through the hemp industry in New Jersey, leaving many business owners and entrepreneurs uncertain about the future of their products. Federal Judge Zahid Quraishi overturned parts of the state’s new hemp law, which aimed to regulate intoxicating hemp products, including delta-8 and THC-infused seltzers.
The law, signed by Governor Phil Murphy last month, established new regulations for intoxicating hemp products and required manufacturers and retailers to obtain a license from the New Jersey Cannabis Regulatory Commission. However, Judge Quraishi ruled that the law gave an unfair advantage to in-state hemp businesses, violating a 2018 federal law that legalized hemp nationwide.
The ruling has significant implications for the hemp industry in New Jersey. As of October 12, intoxicating hemp products must be pulled off the shelves across the state. The Cannabis Regulatory Commission will now be responsible for drafting rules and regulations for intoxicating hemp products, including testing and labeling standards. However, the commission has six months to draft these rules, leaving manufacturers and retailers in a holding pattern.
Philip Petracca, owner of THC drink startup Bella Ray Beverage, expressed frustration and concern about the impact of the ruling on his business. “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 ruling has also raised questions about the future of the hemp industry in New Jersey. Joshua Bauchner, an attorney representing cannabis and hemp clients, noted that the ruling does not address the unique “total THC” standard, which could potentially group non-intoxicating hemp products with intoxicating products.
The push for the state to address intoxicating hemp products has been ongoing, with stakeholders from the cannabis, hemp, and liquor industries all having a stake in the outcome. The ruling has sparked talk of a clean-up bill to clarify many of the issues cited by hemp stakeholders and Governor Murphy himself.
Senate Majority Leader Teresa Ruiz has committed to working with the administration and the assembly to clarify any technical details necessary to address the concerns raised by the ruling.
