Published on The Asbury Park Press, “It’s doomsday for delta-8, THC seltzers as federal judge tosses part of NJ hemp law”, October 12, 2024.
In a landmark decision that has left the hemp and cannabis industries in New Jersey reeling, a federal judge has struck down parts of the state’s new hemp law. The ruling, issued by Judge Zahid Quraishi, specifically challenges provisions that favored in-state businesses, determining that they violate federal law under the dormant commerce clause. While this decision has caused confusion and frustration for many, the key takeaway is that intoxicating hemp products, like delta-8 and THC-infused seltzers, must now be removed from shelves across the state.
The ruling has sparked widespread uncertainty within the industry. As of October 12, 2024, manufacturers and retailers are required to halt the sale of intoxicating hemp products until new rules are drafted by the New Jersey Cannabis Regulatory Commission. The commission, already overseeing the state’s legal cannabis market, is now tasked with creating testing and labeling standards for intoxicating hemp, a process that could take up to six months.
Joshua S. Bauchner, Chair of the Cannabis, Hemp & Psychedelics Practice Group at Mandelbaum Barrett PC, voiced his concern over the decision’s impact on the hemp industry. Bauchner, who represents numerous cannabis and hemp clients across New Jersey, noted, “What we have now is that the whole hemp industry is going to be subject to the CRC [Cannabis Regulatory Commission].” He emphasized that the regulatory burden could prove overwhelming for the commission, which is already facing challenges managing the state’s burgeoning cannabis sector.
Despite the ruling, Judge Quraishi upheld the law’s provision that bans the sale of intoxicating hemp products to minors. However, much remains in flux, and the industry is left in a “holding pattern” as stakeholders await clarification on the law’s implementation. Entrepreneurs like Philip Petracca, co-founder of THC drink startup Bella Ray Beverage, expressed their frustration, stating that the delay is financially devastating for businesses that have already invested heavily in this growing market.
The ruling has also sparked discussions of a “clean-up” bill to address the technical issues cited by stakeholders, with state lawmakers promising to revisit the legislation and provide clearer guidelines for the industry. For now, New Jersey’s hemp businesses face an uncertain future as they await further legal and regulatory developments.
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