New Jersey Hemp Law Faces Setback As Federal Judge Blocks Out-of-State Product Ban

A federal judge has struck down parts of New Jersey’s recently enacted hemp law, ruling that certain provisions unlawfully restrict interstate commerce and conflict with federal regulations. The decision delivers a partial victory to hemp businesses that challenged the law, though key restrictions remain in place.

NJ Hemp Law Violates Commerce Clause

U.S. District Court Judge Zahid N. Quraishi ruled on Wednesday that specific sections of the New Jersey Hemp Act Amendments (NJHAA) violate the dormant Commerce Clause and are preempted by the 2018 Farm Bill, which federally legalized hemp. According to the New Jersey Monitor, the judge agreed with plaintiffs that the law’s definition of THC and its application discriminated against out-of-state hemp producers.

“The New Jersey Legislature cannot blatantly discriminate against out-of-state economic interests,” Judge Quraishi wrote in his decision.

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The NJHAA, signed by Governor Phil Murphy (D) last month, aimed to regulate intoxicating hemp products amid concerns that minors were accessing them easily. The law banned sales of such products to individuals under 21 and required sellers to obtain licenses through the state’s Cannabis Regulatory Commission (CRC), noted NJ.com.

Hemp Industry Celebrates Partial Legal Victory

While the judge upheld provisions banning sales to minors and the licensing requirement, he struck down parts that criminalized the sale or transport of federally compliant hemp products from other states. The decision prevents enforcement of the law’s restrictions on out-of-state hemp, ensuring that products adhering to federal standards can be sold in New Jersey.

Adam Terry, CEO of Cantrip and one of the plaintiffs, expressed satisfaction with the ruling. “We are vindicated in the belief that an outright ban on hemp is not the path forward,” he said, according to Forbes. “We must work together with lawmakers to develop sensible regulations.”

Read Also: US Army Tightens Substance Abuse Regulations, Banning Delta-8 THC, Warns Against Poppy Seeds

Critics, including a coalition of hemp businesses, argued that these restrictions not only stifled competition but also infringed upon federal guidelines that allow for the free movement of hemp products across state lines. They warned the law would harm local businesses and consumers, potentially forcing closures and job losses in the industry. 

Moreover, concerns were also raised about the CRC’s ability to manage additional responsibilities without sufficient resources, as highlighted by NJ.com.

Bill Sponsor Calls For Hemp Law Adjustments

Senate Majority Leader M. Teresa Ruiz (D), a sponsor of the bill, acknowledged the need for legislative adjustments. “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 Ruiz.

The judge’s ruling comes as the deadline for businesses to remove intoxicating hemp products from shelves approaches on October 12. Until the CRC establishes new regulations, these products cannot be sold in the state.

This decision adds to the ongoing national debate over the regulation of psychoactive hemp products like delta-8 THC, which remain in a legal gray area due to a lack of federal oversight.

Read Next:

• California Judge Rules Gov. Newsom’s Hemp Ban Stands Despite Industry Pushback