Federal Court Enjoins Enforcement of NJ "Intoxicating Hemp Law"

On October 10, 2024, a New Jersey Federal District Court entered an order largely granting a request to invalidate New Jersey’s recent amendments to its hemp laws, which were designed to prevent the sale of “intoxicating hemp products” to people under the age of 21 and to subject “intoxicating hemp products” to the same regulatory controls currently in place for marijuana products.

The amendments were intended to try to control the sale of hemp derived products that are widely available in convenient stores, gas stations, and smoke shops that contain intoxicating ingredients, including Delta-8 and Delta-10.  The state argued persuasively that there is a current public health crisis with minors purchasing such products in an unregulated market.

When Governor Murphy signed the amendment into law he noted that there were problems with how it was drafted, but that protecting minors in this state was more important than having a perfect law.

The Court today essentially agreed with Governor Murphy, and only upheld that portion of the law that prohibits the sale of intoxicating hemp products to minors.

The Court found that the remaining provisions of the amendments violated Federal laws because they criminalized intoxicating hemp products that are produced outside of New Jersey, while allowing intoxicating hemp products made within New Jersey to be sold through a newly regulated process under the control of the New Jersey Cannabis Regulatory Commission.  That type of discrimination, the Court found, violates both the “Dormant Commerce Clause” under the US Constitution and a provision of the Federal Farm Act that prohibits states from preventing the shipment of hemp products through any state.

While the federal court enjoined enforcement of the amendments as drafted, it made clear that New Jersey has the right to regulate and control the sale of intoxicating hemp products within New Jersey.  However, it concluded that it is up to the Legislature, not the court, to correct the language in the amendments to comply with federal laws.  As a result, this is likely not the end of New Jersey’s attempt to regulate the sale of intoxicating hemp products.