The Courts Rule: Good News in New Jersey; Bad News in California

Last week, two courts at opposite coasts took a look at the interplay of federal and state law on the subject of banning hemp products, and came to opposite decisions.  While neither litigation is close to being completed, New Jersey offered hemp farmers, businesses and consumers good preliminary news, with California providing a bad opening salvo.

 
In New Jersey, a law passed by the legislature and signed by the Governor would have banned the retail sale of the vast majority of hemp products.  Hemp interests sued, and the court provided a mixed decision – explicitly blocking parts of the law that intended to have intoxicating hemp only made and manufactured in New Jersey, as a violation of the U.S. Constitution’s Dormant Commerce clause.  While some interpreted the ruling as allowing much of the new law to stay intact, the New Jersey Cannabis Regulatory Commission said that the state was “unable to begin enforcement” of any part of the law, except for a ban on the purchase of products by minors (which the hemp industry strongly supports).  Michael Carucci, an attorney for the hemp plaintiffs told POLITICO, “The federal court’s blocking of a substantial part of the law effectively renders the remaining provisions unworkable.  This pause will give lawmakers and stakeholders the time they need to craft better legislation.”

In the California lawsuit brought by the US Hemp Roundtable and other hemp farmers and business against Governor Gavin Newsom’s hemp-killing emergency regulations, the judge looked at the same federal laws and came to the opposite conclusion:  Contrary to New Jersey and several nearly every other federal or state court that has looked at the issue, the court ruled that federal law did not block a ban that would disrupt interstate commerce in hemp products.  He also ruled that there was no proof of “irreparable harm,” despite the clear evidence of manufacturers and stores needing to shut down, and seniors and veterans losing access to hemp products – meaning non-intoxicating – they’ve relied upon for their health and wellness. Jonathan Miller, General Counsel for the US Hemp Roundtable, stated: “While we are disappointed with the court’s decision, this is only the first step in what could be a lengthy process.  We are currently reviewing all of our options for proceeding.  We still hold out hope that Governor Newsom will come to the table and work with industry to achieve our mutual goal – to robustly regulate hemp products and keep them out of the hands of children – without devastating hemp farmers, business and consumers as does his emergency regulation.”