Hemp businesses sue to stop New Jersey law that restricts hemp sales

A group of hemp businesses is arguing a new state law banning the sale of hemp products in New Jersey stores without a license from the state’s cannabis agency will turn “farmers, business owners and consumers into criminals.”

Under the law, the groups argue, hemp will be effectively recriminalized, despite federal statutes allowing some hemp products — which are derived from cannabis and have less than 0.3% delta-9 THC — to be sold in stores.

The groups are asking a federal judge for a preliminary injunction to stop most of the law from going into effect. Attorney General Matt Platkin, Cannabis Regulatory Commission Chair Dianna Houenou, and state Agriculture Secretary Edward D. Wengryn are named as defendants.

Their suit comes roughly two weeks after Gov. Phil Murphy signed the controversial bill, crafted after lawmakers heard concerns from parents and others that minors could easily get their hands on hemp products.

Murphy expressed reservations about the bill, saying it could lead to uncertainty in the hemp industry. He noted one provision is so vaguely worded it could be interpreted as allowing the sale of hemp made out of the state.

But Murphy signed the bill anyway, saying it was important to ensure harmful chemicals and unregulated products stay out of the hands of children.

Now, businesses have until Oct. 12 — 30 days after the bill signing — to pull from their shelves all items containing hemp, like CBD lotions, hemp drinks, and delta-8 gummies. Under the new law, the state Cannabis Regulatory Commission will have about six months to establish new rules and guidelines on issuing licenses to retailers, though that doesn’t mean sales of hemp products will necessarily resume in six months.

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