NJ Hemp Firms Work to Resolve Dispute Over New Law
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Posted On: 02/03/2025 4:39:47 PM
NJ Hemp Firms Work to Resolve Dispute Over New Law
Last year, Governor Phil Murphy of New Jersey signed a controversial measure that would ban businesses in the state from selling hemp products without a marijuana license. This measure made it compulsory for all hemp businesses to apply for licenses through the Cannabis Regulatory Commission to distribute, manufacture, and sell hemp, a process that may take several months to complete. This is in addition to allowing holders of liquor licenses to sell hemp products if they acquired licenses from the commission.
The commission has overseen the state’s medicinal and recreational marijuana markets since medical and recreational sales became legal in 2010 and 2021 respectively.
Murphy explained that minors having access to these unregulated THC products was one of the main reasons legislators approved the measure, adding, however, that it did have some flaws. Soon after the ban went into effect, some hemp businesses appealed it in court, arguing that hemp was federally legal and the bill’s provisions were unconstitutionally vague.
Hemp has been legal at the federal level since the 2018 Farm Bill was approved, unlike marijuana, which is still classified as a Schedule I substance under the Controlled Substances Act.
In their defense, the businesses explained that state law effectively criminalized many hemp retail shop owners, manufacturers, and cultivators. U.S. District Court Judge Zahid N. Quraishi who presided over the case noted in his decision that while he sided with hemp businesses about some provisions infringing on interstate commerce unconstitutionally, he also agreed that the state had the power to regulate hemp.
In November, the commission announced that it couldn’t enforce provisions that dealt with the regulation of intoxicating hemp products. This decision, the commission noted, was based on the judge’s ruling.
However, it added, a ban on the sale of products that weren’t derived from naturally occurring active chemical constituents of hemp to individuals under age 21 was in effect and would be enforced. Under this law, individuals found selling intoxicating products derived from hemp without a license may pay up to $100 in fines for the 1st offense and $1000 for the 2nd offense. Any subsequent violations of this law will see individuals pay at least $10,000 in fines.
Currently, hemp companies are engaged in discussions that could resolve this dispute. Parties involved are required to file status reports every sixty days to the judge presiding over the case concerning potential developments in the bid to settle the case.
Hemp industry actors like Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) in other markets will be pleased that the different parties in New Jersey are opting to have discussions aimed at reaching a common position rather than fighting it out in the courts of law, which is very costly.
NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ
Please see full terms of use and disclaimers on the HempWire website applicable to all content provided by HW, wherever published or re-published: https://www.HempWire.com/Disclaimer
Last year, Governor Phil Murphy of New Jersey signed a controversial measure that would ban businesses in the state from selling hemp products without a marijuana license. This measure made it compulsory for all hemp businesses to apply for licenses through the Cannabis Regulatory Commission to distribute, manufacture, and sell hemp, a process that may take several months to complete. This is in addition to allowing holders of liquor licenses to sell hemp products if they acquired licenses from the commission.
The commission has overseen the state’s medicinal and recreational marijuana markets since medical and recreational sales became legal in 2010 and 2021 respectively.
Murphy explained that minors having access to these unregulated THC products was one of the main reasons legislators approved the measure, adding, however, that it did have some flaws. Soon after the ban went into effect, some hemp businesses appealed it in court, arguing that hemp was federally legal and the bill’s provisions were unconstitutionally vague.
Hemp has been legal at the federal level since the 2018 Farm Bill was approved, unlike marijuana, which is still classified as a Schedule I substance under the Controlled Substances Act.
In their defense, the businesses explained that state law effectively criminalized many hemp retail shop owners, manufacturers, and cultivators. U.S. District Court Judge Zahid N. Quraishi who presided over the case noted in his decision that while he sided with hemp businesses about some provisions infringing on interstate commerce unconstitutionally, he also agreed that the state had the power to regulate hemp.
In November, the commission announced that it couldn’t enforce provisions that dealt with the regulation of intoxicating hemp products. This decision, the commission noted, was based on the judge’s ruling.
However, it added, a ban on the sale of products that weren’t derived from naturally occurring active chemical constituents of hemp to individuals under age 21 was in effect and would be enforced. Under this law, individuals found selling intoxicating products derived from hemp without a license may pay up to $100 in fines for the 1st offense and $1000 for the 2nd offense. Any subsequent violations of this law will see individuals pay at least $10,000 in fines.
Currently, hemp companies are engaged in discussions that could resolve this dispute. Parties involved are required to file status reports every sixty days to the judge presiding over the case concerning potential developments in the bid to settle the case.
Hemp industry actors like Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) in other markets will be pleased that the different parties in New Jersey are opting to have discussions aimed at reaching a common position rather than fighting it out in the courts of law, which is very costly.
NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ
Please see full terms of use and disclaimers on the HempWire website applicable to all content provided by HW, wherever published or re-published: https://www.HempWire.com/Disclaimer
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