New Jersey Hemp Companies File Lawsuit Over Strict Regulations, Arguing Farm Bill Protects Them

Zinger Key Points
  • New Jersey’s new hemp law restricts the sale of intoxicating hemp products to licensed cannabis or alcohol retailers, facing backlash
  • Hemp businesses are suing the state, claiming the law violates the 2018 Farm Bill and could lead to closures, with an October 12 deadline.

Hemp companies in New Jersey have filed a lawsuit challenging the newly signed regulation that limits the sale of hemp derived products like Delta-8 THC.

Arguing that the new regulations effectively criminalize hemp, the plaintiffs say hemp is federally legal under the 2018 Farm Bill, and that New Jersey’s regulations will force many of them out of business.

In the lawsuit, they also argue that vague terms in the law make compliance difficult. They are seeking a federal court's intervention before the October 12 deadline, when all hemp products must be pulled from shelves.

New Jersey's Defense Of The Law

In response, New Jersey's state attorneys have filed a motion to dismiss the lawsuit, defending the law as a necessary public health measure, reported New Jersey Monitor.

The argument by the government says that the 2018 Farm Bill allows for state-level regulations that aim to address the risks posed by psychoactive hemp products.

The state's filing emphasized concerns over the health and safety of minors, citing data that shows 11% of high school seniors had used Delta-8 THC in 2023.

Read Also: NJ Governor Signs Bill Tightening Rules On Hemp: Industry Stakeholders Protest, Big Alcohol Celebrates

New Hemp Law's Restrictions And Impact

In a written statement, Governor Phil Murphy acknowledged the law's vagueness but said public safety concerns were paramount.

Signed into law by Murphy, the new hemp regulation bans the sale of intoxicating hemp products. This is unless the seller holds a cannabis or alcohol license.

  • Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you're serious about the business, you can't afford to miss out.

Overseen by the New Jersey Cannabis Regulatory Commission (CRC), the law aims to curb access to products like THC-infused beverages and Delta-8 THC. However, it also benefits the alcohol industry.

Similar arguments regarding adverse effects on minor have been waved in other states to prevent hemp-derived products from circulating.

In Missouri, Maryland and California, similar regulations as those imposed sin New Jersey have faced or are currently facing legal disputes.

Cover: Photo by Gerome Dominici via Pexels

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.