Judge Shakes Up NJ Hemp Law: Key Restrictions Blocked

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A federal judge just threw a wrench into New Jersey’s hemp law, delivering a split decision that leaves some rules intact while axing others. The ruling primarily revolved around New Jersey’s attempt to crack down on intoxicating hemp products—think Delta-8 and other psychoactive compounds derived from hemp. New Jersey’s law had strict provisions banning sales to those under 21, but it also tried to go after out-of-state producers by limiting the sale and transport of their products within the state.

That’s where the judge drew the line. U.S. District Judge Zahid N. Quraishi ruled that the parts of the law restricting interstate commerce didn’t hold up under the Commerce Clause of the U.S. Constitution and the 2018 Farm Bill. The Farm Bill federally legalized hemp, which means states like New Jersey can’t start discriminating against out-of-state products that meet federal standards. In short, the state can’t shut out hemp products from other places just to protect its local market. So, if you’re producing federally compliant hemp in another state, your products can still hit New Jersey shelves without added roadblocks.

But not everything went in favor of hemp advocates. The judge upheld key parts of the law that ban sales to minors and force sellers to get licensed by New Jersey’s Cannabis Regulatory Commission. So while out-of-state products can flow freely, local sellers still have some hoops to jump through.

This ruling doesn’t just affect New Jersey. It’s got the potential to set a precedent for other states playing fast and loose with their own hemp restrictions. States that try to shield local businesses by restricting out-of-state competition could find themselves in a similar legal mess. The 2018 Farm Bill holds serious weight, and the federal government still calls the shots when it comes to hemp.

New Jersey businesses are mixed on this decision. Adam Terry, the CEO of Cantrip and one of the plaintiffs, saw it as a win for the industry, saying the outright ban wasn’t the way forward. But businesses are still on the hook for licensing and staying within state guidelines when it comes to who they sell to and how.

Gov. Phil Murphy’s administration is expected to refine the legislation, but don’t expect the fight to end here. With intoxicating hemp products like Delta-8 surging in popularity, New Jersey—and other states—are still figuring out how to balance federal law with their own priorities on public safety.

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