A federal judge on Thursday this week threw out part of New Jersey’s new law regulating intoxicating hemp goods. The ruling overturned the provision that banned out-of-state companies from selling their goods in the state, but it left intact other portions that require such businesses to adhere to state marijuana rules.
The ruling came after a lawsuit filed two weeks ago by a coalition of hemp companies, including several from outside New Jersey, who argued that the new law was illegal under the federal 2018 Farm Bill, which legalized hemp nationwide.
U.S. District Judge Zahid Quraishi threw out portions of the new law that exclude “otherwise compliant out-of-state hemp and hemp products from the definition of ‘Intoxicating Hemp Products’” from the market, essentially meaning that out-of-state hemp companies are free to continue selling in New Jersey as long as they follow other rules laid down by the state legislature.
In an emailed statement, one of the hemp executive plaintiffs, Massachusetts-based Cantrip CEO Adam Terry, hailed the ruling as a “win for hemp.”
“We are pleased that (the court) maintained the prohibition on selling to minors as Cantrip is committed to making these products only available to adults,” Terry said in an emailed statement.
“While we are still waiting to hear from the state as to how they plan to move forward and we expect further lawmaking on this matter, we are vindicated in the belief that an outright ban on hemp is not the path forward and we must work together with lawmakers to develop sensible regulations that keep these products in the hands of adults that want them and away from the hands of children,” Terry said.
Not all stakeholders were happy with the ruling, however.
State Senate Majority Leader M. Teresa Ruiz told NJ.com that “without comprehensive regulation, these substances will continue to present a significant threat to the health and well-being of our communities.”
“We are committed to working with the (Gov. Phil Murphy) administration and the Assembly to clarify any technical details that are necessary,” Ruiz said.
On top of that, the new law still requires sellers of intoxicating hemp goods to have a state permit from the Cannabis Regulatory Commission after this Saturday, attorney Dan McKillop pointed out to NJ.com, meaning the retail avenues for such goods have narrowed immensely, given that hemp products had previously been available at gas stations, convenience stores and other common retailers.
The federal ruling doesn’t automatically establish a legal precedent for similar lawsuits playing out in other parts of the country, but it could become one soon. Many other states – often with legal marijuana markets of their own – have tried to crack down on intoxicating hemp products but faced legal pushback from the hemp industry. A hearing was held Thursday in a parallel lawsuit in California, for instance.
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A judge overturned the clause that banned the sale of out-of-state hemp and hemp products. Read More