Uncertainty Reigns in New Jersey’s Hemp Sector Following Court Ruling
New Jersey’s hemp industry is facing a period of uncertainty following a court decision that upheld a state ban on hemp product sales. Porzio Compliance Services’ cannabis and hemp legal expert, John Williams, expressed concern over the lack of clarity provided by state authorities. He indicated that the lack of guidance has left business owners, hemp cultivators, manufacturers, and retailers unsure of their legal obligations.
The blame for this confusion is placed on a court order by the Cannabis Regulatory Commission, the body with oversight on the hemp sector. The judge’s ruling was a partial win for hemp enterprises that challenged the restrictions, yet the commission is still reviewing the verdict and refrained from further commentary.
The Legal Landscape: Diverse Opinions and Litigation
Governor Phil Murphy signed into law a bill in September responding to anxiety over the unchecked sale of products with high, unregulated THC levels to minors. In response, hemp businesses initiated a legal challenge, arguing that hemp cultivation and sale were federally allowed and the new law effectively re-criminalized hemp industry stakeholders. Under the new regulation, hemp businesses are required to secure a license from the Cannabis Regulatory Commission for selling, manufacturing, or distributing hemp, a process that could extend for an indeterminable period. The law also permits liquor license holders to vend hemp products once they acquire a license from the cannabis commission.
Legal expert Beau Huch, representing hemp-derived beverage enterprises, pointed out the prevailing confusion about the retail scene’s future, causing stores to contemplate the risk involved in selling hemp products. On the other hand, Williams warned that local municipalities might begin enforcement if they spot retailers selling hemp products.
Nonetheless, cannabis attorney at Mandelbaum Barrett, Joshua Bauchner, has a differing viewpoint and is confident that attempts by towns to close local smoke shops would fail in court. The opinion of the Attorney General’s Office and The Cannabis Regulatory Commission have not been stated yet.
Potential Implications for Hemp Cultivators and Future Path
The law proposes challenges for hemp farmers due to its strict THC limits enforced on hemp products. Williams noted this has perturbed the farmers, causing them to question whether cultivation under New Jersey’s stringency is viable.
In light of Judge Quraishi’s ruling, legislators are obligated to rectify the identified constitutional issues with the law. Sen. Teresa Ruiz (D-Essex), who supported the hemp bill, confirmed that legislators aim to “rectify any technical aspects that are required.”
An uphill task lies in store for the Cannabis Regulatory Commission, tasked with overseeing an already strained hemp industry without prospects for additional funding. Sen. Vin Gopal (D-Monmouth) spoke about the possibility of increased funding and resources to address this issue. In the meantime, the business proprietors, cultivators, and manufacturers remain in limbo awaiting clearer guidelines as they traverse this ambiguous terrain.