A federal judge on Thursday this week threw out part of New Jersey’s new law regulating hemp-based intoxicants. The ruling struck down the provision that barred out-of-state companies from selling their products in the state, but it left intact other parts that require those businesses to adhere to the state’s marijuana rules.

The decision follows a lawsuit filed two weeks ago by a coalition of hemp companies, including several from outside New Jersey, who claimed the new law was illegal under the 2018 federal Farm Bill, which legalized hemp nationwide.

U.S. District Judge Zahid Quraishi rejected portions of the new law that exclude otherwise compliant out-of-state hemp and hemp products from the definition of “products of “hemp intoxicants” market, which essentially means that out-of-state hemp companies are free to continue selling in New Jersey as long as they follow other rules established by the state legislature.

In an emailed statement, one of the hemp executive plaintiffs, Adam Terry, CEO of Massachusetts-based Cantrip, hailed the ruling as a “victory for hemp.”

“We are pleased that (the court) upheld the ban on sales to minors, as Cantrip is committed to making these products available only to adults,” Terry said in an emailed statement.

“While we are still waiting to hear from the state on how it plans to move forward and await new legislation on this issue, we are confident that an outright ban on hemp does not is not the way forward and that we need to work together with legislators to develop sensible regulations that keep these products in the hands of adults who want them and out of the hands of children,” Terry said.

However, not all stakeholders were happy with this decision.

State Senate Majority Leader Teresa Ruiz told NJ.com that “without comprehensive regulation, these substances will continue to pose a significant threat to the health and well-being of our communities.” .

“We are committed to working with (Governor Phil Murphy’s) administration and the Assembly to clarify all necessary technical details,” Ruiz said.

On top of that, the new law still requires sellers of hemp intoxicating products to have a state license from the Cannabis Regulatory Commission after this Saturday, attorney Dan McKillop pointed out to NJ.com, this which means that the retail avenues for these products have narrowed significantly. as hemp products were previously available at gas stations, convenience stores, and other common retailers.

The federal decision does not automatically set a legal precedent for similar lawsuits in other parts of the country, but it could soon. Many other states – often with their own legal marijuana markets – have attempted to crack down on hemp intoxicating products but have faced legal pushback from the hemp industry. A hearing was held Thursday in a parallel trial in California, for example.

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