New Jersey's cannabis agency quietly on Friday began enforcing a new state ban on hemp product sales.
The law kicked in Oct. 12, but a federal judge's ruling from two days prior kept the Cannabis Regulatory Commission from enforcing most of it right away. Now, the agency says in a statement on its website that the sale of hemp products or cannabis items that are not derived from "naturally occurring" chemicals is currently enforceable.
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According to the hemp law – passed in response to complaints that children were too easily getting their hands on intoxicating hemp products – people selling those products without a license could face a fine of at least $100 for the first offense, $1,000 for the second offense, and at least $10,000 for each subsequent violation. The commission, which is tasked with issuing those licenses, has another five months to draft rules before licensure even begins.
Beau Huch, a cannabis and hemp attorney with Porzio Governmental Affairs, said he thinks the news means the agency will start targeting products with synthetic cannabinoids like delta-10 and THC-o that the hemp industry agrees are dangerous to consumers, as opposed to products made with naturally occurring cannabinoids like Delta-8 and Delta-9.
"They're testing the waters. They're sending a message, which will obviously have an intended chilling effect on bad actors. It also says they're still paying attention," Huch said.
The governor's office did not return a request for comment. The Cannabis Regulatory Commission declined to comment Friday.
Gov. Phil Murphy signed the hemp law in September despite his concerns that the legislation was flawed by some vague provisions. Under the law, businesses had 30 days to pull all intoxicating hemp products from their shelves.
Hemp businesses sued to stop the law from being enforced. The federal judge overseeing the case sided with the plaintiffs' arguments that parts of the law place an improper burden on interstate commerce but agreed with the state that it had the right to regulate the hemp industry. The ruling upheld most of the law.
Lawmakers say they are working on a bill to resolve any constitutional issues cited by the judge. Huch said he expects the commission to go after the larger hemp industry once that legislation is enacted.
"To start shaking down the bad actors — that seems like a totally prudent thing to do," he said.
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