The latest clash in an ongoing series of feuds between the hemp sector and state policymakers is a federal New Jersey lawsuit, in which six hemp companies argue that a law signed by Gov. Phil Murphy that puts “intoxicating” hemp goods under the jurisdiction of marijuana regulators is illegal under the 2018 Farm Bill.
The suit, filed on Tuesday in U.S. District Court in the District of New Jersey, asserts that the new attempt by lawmakers to crack down on “intoxicating” hemp goods is unconstitutional and illegal, both for redefining hemp products from the 2018 Farm Bill’s definition and also for prohibiting intoxicating hemp goods made outside of the state. The latter provision in the law, the suit claims, is a violation of the U.S. Constitution’s dormant Commerce Clause, due to its discrimination against companies that are not headquartered in New Jersey.
The plaintiffs in the case include New Jersey-based beverage maker Loki Brands and retailer Legal Leaf New Jersey, as well as Seattle-based Cycling Frog, Massachusetts-based Cantrip, Colorado-based Apollo Sciences and North Carolina-based CannaAid.
The bottom line impact of the new hemp law, the suit asserts, is that “many businesses will be forced to close or lay off employees. This will lead to thousands of lost jobs around the state and turn farmers, business owners, and consumers into criminals, despite no change in federal law.”
The suit repeatedly notes that Murphy himself expressly said in a signing statement that he recognized there are “technical issues” with the law that will likely require “clarifying legislation” at some point.
The suit asserts that the new state law flies in the face of the 2018 Farm Bill, which defined hemp as the cannabis plant with 0.3% delta-9 THC or less by dry weight. The new law in New Jersey changes that definition and “depends on the cumulative concentration of all tetrahydrocannabinols, including not only delta-9 THC, but also delta-8 THC, delta 10-THC, and other chemically similar compounds, such as THCA,” the suit claims, arguing that such a preemption of federal law is not allowed by states.
The redefinition of hemp by New Jersey lawmakers, the suit claims, has – perhaps unintentionally -created a new class of hemp products, which it calls “Excluded Hemp,” meaning products that have “a concentration of delta-9 THC that is less than or equal to 0.3% on a dry weight basis, but also has a concentration of Total THC that exceeds 0.3% on a dry weight basis.”
“Under the Amendments, this form of hemp is no longer ‘Hemp’ under New Jersey law,” the suit charges.
The suit requests a preliminary injunction to stop the new law from being enforced, along with a court order declaring all hemp products that comply with the 2018 Farm Bill definition are federally legal, and a declaration that the new law void in its entirety, except for the prohibition on selling “intoxicating” hemp products to customers under the age of 21.
The suit is scheduled for hearings in federal court on Oct. 21 and Nov. 25.
The operators argue that the new rules change the definition of hemp that was laid out in the 2018 Farm Bill. Read More