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A new law aimed at getting intoxicating hemp products off the shelves of gas stations and other places in New Jersey has been challenged in court by a coalition of hemp and beverage companies who contend it violates federal law.
The law, signed by Gov. Phil Murphy just a few weeks ago, requires stores selling intoxicating hemp to get a cannabis license from the state and adds a stricter definition of intoxicating hemp that is separate from federal law, which says hemp is legal.
A lawsuit filed in U.S. District Court of New Jersey does not go after the part of the law that prevents stores from selling intoxicating hemp products such as Delta 9 THC to minors, which prompted lawmakers to act. But it disputes the way the state is regulating sales to adults, which critics contend could abolish the hemp industry in New Jersey.
The lawsuit argues that banning hemp violates federal interstate commerce law that prohibits states from putting up roadblocks to commerce across state lines.
“In a statement accompanying the bill signing, Governor Murphy recognized that the Amendments (in the law) have ‘technical issues and other challenges’ and warned that (they) implicate Commerce Clause concerns and are already causing significant confusion,” the lawsuit read.
Michael Carucci, the lawyer for the coalition of hemp and beverage companies affected by the law, did not comment, saying their case is spelled out in the lawsuit.
Murphy said two weeks ago that he needed to sign the bill to prevent the sale of intoxicating hemp products to minors but expressed concern about amendments detailing how it will be regulated. He said lawmakers should work with his office on “clarifying legislation.”
“I would have preferred to sign a bill that stopped there,” Murphy said in a signing statement.
He noted at the time that the law could be interpreted two ways: one that could create “an enormous loophole” that would defeat the purpose of the legislation, and another that could violate the federal clause on interstate commerce.
The governor’s office did not return a call for comment on Wednesday.
Senate Majority Leader M. Teresa Ruiz, D-Essex, one of the law’s primary sponsors, sharply criticized the lawsuit.
“The responsible course of action is to remove intoxicating hemp products from store shelves until the Cannabis Regulatory Commission implements proper regulations,” she said. “Our top priority must be the safety of our communities and children. With that said, we are committed to working with the administration and the Assembly to clarify any technical details and ensure the bill’s intent is unmistakably clear.”
Hemp is a less psychoactive cannabis plant that contains lower amounts of intoxicating substances known as Delta 9 THC, and is federally legal.
Weed is is illegal under federal law, which allows each state to come up with its own rules without violating commerce clauses.
The hemp industry has said the law’s edict to have it regulated the same as cannabis would severely limit where it could be sold. Hemp stores and liquor stores will have to go through the cannabis regulation process to get a license. In addition, most towns have essentially banned weed under the cannabis law, which allows them to opt out.
The law Murphy signed had some similarities to a move made by his ally, Gov. Gavin Newsom, who also faced a lawsuit this week for similar reasons.
The lawsuit comes as no surprise, said cannabis lawyer Dan McKillop.
“In Governor Murphy’s signing statement he goes through a litany of troublesome provisions in the law — areas in which he himself foresees difficulty understanding it and I think the complaint that was filed seizes on that,” McKillop said.
Jelani Gibson may be reached at jgibson@njadvancemedia.com. Follow him on X at @jelanigibson1 and on LinkedIn.