Federal Judge Throws Out Part of New Jersey’s Hemp Law, Impacting Delta-8 and THC Seltzers
A recent court ruling has sent shockwaves through New Jersey’s hemp industry, leaving many businesses and entrepreneurs in a state of uncertainty. On Thursday, 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 these products, requiring manufacturers and retailers to obtain a license from the New Jersey Cannabis Regulatory Commission. However, Quraishi ruled that the law gave an unfair advantage to in-state hemp businesses, violating a 2018 federal law that legalized hemp nationwide.
As a result, intoxicating hemp products must be pulled off the shelves across the state, effective immediately. The commission will now be responsible for drafting rules and regulations for these products, including testing and labeling standards. However, this process is expected to take six months, leaving many businesses in a holding pattern.
Philip Petracca, owner of THC drink startup Bella Ray Beverage, expressed concerns about the financial impact of the ruling. “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, believes that the law will ultimately harm the industry. “What we have now is that the whole hemp industry is going to be subject to the CRC,” he said.
In response to the ruling, Senate Majority Leader Teresa Ruiz has pledged to work with the administration and assembly to clarify any technical issues with the law. “While I am pleased that the court order upheld the ban on selling intoxicating hemp products to minors, we must recognize that, without comprehensive regulation, these substances will continue to present a significant threat to the health and well-being of our communities.”
The ruling has left many stakeholders in the cannabis and hemp industries scratching their heads, with some calling for a clean-up bill to address the issues raised by the court. As the situation continues to unfold, one thing is clear: the future of New Jersey’s hemp industry is uncertain, and many businesses are left wondering what’s next.
