New Jersey’s hemp industry has been left in limbo as the state cannabis regulator announced it would enforce some, but not all, of the new measures to ban the sale of intoxicating hemp products.
In September 2024, Governor Phil Murphy signed new legislation into law aimed at regulating intoxicating hemp substances.
The law placed hemp products under the jurisdiction of the New Jersey Cannabis Regulatory Commission (CRC), which also oversees the state’s cannabis market.
The law prohibited the sale of any intoxicating hemp products to individuals under 21 and required businesses to remove such products from shelves within 30 days until new regulations are established.
Days after this measure came into force, the CRC announced that it would only enforce the prohibition of sales to under 21s.
It followed a ruling by District Court Judge Zahid N. Quraish in a case brought by numerous hemp businesses against the legislation.
Judge Quarish ruled that parts of the law violated federal commerce laws, and the state has stepped back from full enforcement of the law. However, he said that he would not grant the full dismissal of the law, as requested by the plaintiffs
In an announcement on October 12, the CRC stated it would adhere to the judges ruling, and only enforce parts of the new law, leaving the future of these products and hemp businesses in an unclear and precarious position.
Businesses are now subject to CRC regulation, but with no clear timeline for licensing or enforcement, many are left questioning how to proceed.
John Williams, a cannabis attorney, told New Jersey Monitor: “The state’s failure to provide clear guidance has left business owners in a state of confusion. Some retailers have pulled products off shelves, while others are cautiously continuing to sell them.”
The law’s impact stretches across multiple industries, creating tension between cannabis, hemp, and liquor stakeholders. Cannabis businesses argue that hemp retailers should be subject to the same stringent regulations imposed by the CRC, while liquor stores have embraced THC seltzers as a significant new revenue stream. The hemp industry, caught in the middle, feels penalized for the actions of less scrupulous operators.
With mounting pressure to clarify the law, state legislators, including Senate Majority Leader Teresa Ruiz, have committed to working on clean-up legislation.
