A federal judge on Wednesday struck down parts of a New Jersey law that aims to put more restrictions on how intoxicating hemp products are sold.
The law, signed by Gov. Phil Murphy last month, banned sales of the products to minors and also put restrictions on how intoxicating hemp products were defined and could be sold throughout the state, including in liquor stores.
Hemp and cannabis are the same species of plant, but hemp is federally legal and non-intoxicating. However, through chemistry hemp can be made intoxicating by processing other chemical parts of the plant known as cannabinoids.
New Jerseyans will still need to be 21 and up to buy intoxicating hemp products under the two-page order handed down by U.S. District Court Judge Zahid N. Quraishi. The judge also kept intact another aspect of the law requiring those who want to sell hemp to apply for licenses through the state’s Cannabis Regulatory Commission, which regulates weed sales.
But the judge went after provisions that banned out-of-state operators from participating in the new market.
“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,” said the bill’s sponsor, Senate Majority Leader M. Teresa Ruiz, D-Essex.
The law passed after legislators were inundated with stories about children getting easy access to the products at local gas stations and corner stores, with some reported instances of minors going to the emergency room, and in some cases ending up lost and missing.
Critics of the law raised concerns that the definitions of hemp products and the way in which out-of-state products would be regulated violated federal law.
A lawsuit filed two weeks ago by a coalition of hemp and beverage companies affected by the law argued that it violated federal interstate commerce law that prohibits states from putting up roadblocks to commerce across state lines. They noted that hemp is a legal product under federal law.
The judge agreed, and struck down provisions of the law that stopped out-of-state hemp operators from being a part of the market.
The rest of the law was kept mostly intact, but still remains controversial.
Farmers who had already been licensed by the state were going to be negatively affected by the law and the agency tasked with enforcing it, the Cannabis Regulatory Commission (CRC), was not getting enough resources for this extra responsibility.
When signing the law last month, Murphy acknowledged there were legal flaws and concerns about it, and urged legislators to do clean-up language.
Complicating matters are provisions of the law that requires businesses to get intoxicating hemp products off of shelves by Saturday, and they won’t be able to sell them again until going through a a licensing process the state has yet to create.
“Sale of (intoxicating hemp products) are going to be illegal Saturday if you don’t have a license and you’re not going to get a license for a while,” said cannabis lawyer Dan McKillop.
Critics worry that the CRC’s ability to approve cannabis licenses could be hurt because it isn’t getting the funds needed for this new responsibility with hemp stores. After the law was signed, the commission heard from opponents at its most recent public meeting.
“They (legislators) told the CRC. Now it’s their responsibility and they didn’t even staff them up,” said cannabis activist Leo Bridgewater in an interview last week.
The ruling heightens the stakes for clean-up legislation, said cannabis lobbyist Beau Huch.
“I don’t think this was ever the intent of the legislature,” he said. “But because of this language — it is what it is.”
Ruiz indicated the legislature was working to clean up language.
“We are committed to working with the (Murphy) administration and the Assembly to clarify any technical details that are necessary,” she said.
Jelani Gibson may be reached at jgibson@njadvancemedia.com. Follow him on X at @jelanigibson1 and on LinkedIn.
Other provisions of the law that were left intact by the federal judge remain controversial. Read More