On September 12, 2024, New Jersey Governor Phil Murphy signed Senate Bill 3235 into law, igniting controversy across the state’s hemp industry. The new legislation restricts businesses from selling hemp products unless they possess a cannabis retail license, a move that prompted hemp businesses to file a lawsuit challenging the law’s restrictions on their ability to operate freely and arguing that it unfairly limits access to the market.
The aim of the new law is to curb the sale of hemp products containing delta-8 THC to minors. Delta-8 THC is a milder cousin of delta-9 THC, the active ingredient in cannabis. While hemp products became federally legal in 2018 under The Agriculture Improvement Act, state-level restrictions are becoming more common as concerns grow over the accessibility of THC-containing products to children.
Governor Murphy acknowledged the bill’s flaws but defended its immediate necessity. “Unlike many issues, the status quo poses an immediate risk to health and safety, as these unregulated intoxicating hemp products are widely available to minors,” he stated. Murphy further committed to working with the Legislature to address technical issues and other challenges through future legislation.
However, just days after the bill’s passage, a group of New Jersey hemp businesses filed a lawsuit challenging the new legislation. The suit, filed on September 24, 2024, names key state officials, including Matthew Platkin, the Attorney General of New Jersey; Dianna Houenou, Chair of the New Jersey Cannabis Regulatory Commission; and Edward Wengryn, Secretary of Agriculture.
The lawsuit argues that the law unfairly criminalizes farmers, business owners, and consumers without any change in federal law or acknowledgment of the protections afforded to hemp under federal law. “This will lead to thousands of lost jobs around the state and turn farmers, business owners, and consumers into criminals, despite no change in federal law and despite the protections Congress has afforded them,” the lawsuit states.
Businesses have been given a deadline of October 12, 2024—30 days after the bill was signed—to remove all hemp-containing products from their shelves. The rush to comply has created a scramble among retailers and significant uncertainty within the hemp industry. As the legal battle unfolds, it remains to be seen how the state will balance its commitment to protecting minors with the rights of businesses operating under federal hemp laws.
This case highlights the ongoing conflict between state and federal regulations in the rapidly evolving cannabis and hemp industries. As the legal challenges progress, the outcome could set a precedent that affects hemp businesses not only in New Jersey but across the country.
[View source.]
