SENATE, No. 4509
STATE OF NEW JERSEY
221st LEGISLATURE
INTRODUCED MAY 22, 2025
Sponsored by:
Senator M. TERESA RUIZ
District 29 (Essex and Hudson)
Senator NICHOLAS P. SCUTARI
District 22 (Somerset and Union)
SYNOPSIS
Provides additional licensing eligibility for activities involving intoxicating hemp products.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning intoxicating hemp products, and amending various sections of statutory law, and supplementing P.L.2024, c.73.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.2C:35-2 is amended to read as follows:
2C:35-2. As used in this chapter:
"Administer" means the direct application of a controlled dangerous substance or controlled substance analog, whether by injection, inhalation, ingestion, or any other means, to the body of a patient or research subject by: (1) a practitioner, or, in the practitioner's presence, by the practitioner's lawfully authorized agent, or (2) the patient or research subject at the lawful direction and in the presence of the practitioner.
"Agent" means an authorized person who acts on behalf of or at the direction of a manufacturer, distributor, or dispenser but does not include a common or contract carrier, public warehouseman, or employee thereof.
"Controlled dangerous substance" means a drug, substance, or immediate precursor in Schedules I through V, marijuana and hashish as defined in this section, any substance the distribution of which is specifically prohibited in N.J.S.2C:35-3, in section 3 of P.L.1997, c.194 (C.2C:35-5.2), in section 5 of P.L.1997, c.194 (C.2C:35-5.3), in section 2 of P.L.2011, c.120 (C.2C:35-5.3a), or in section 2 of P.L.2013, c.35 (C.2C:35-5.3b), and any drug or substance which, when ingested, is metabolized or otherwise becomes a controlled dangerous substance in the human body. When any statute refers to controlled dangerous substances, or to a specific controlled dangerous substance, it shall also be deemed to refer to any drug or substance which, when ingested, is metabolized or otherwise becomes a controlled dangerous substance or the specific controlled dangerous substance, and to any substance that is an immediate precursor of a controlled dangerous substance or the specific controlled dangerous substance. The term shall not include distilled spirits, wine, malt beverages, as those terms are defined or used in R.S.33:1-1 et seq., tobacco and tobacco products, or cannabis and cannabis as defined in section 3 of P.L.2021, c.16 (C.24:6I-33). The term, wherever it appears in any law or administrative regulation of this State, shall include controlled substance analogs.
"Controlled substance analog" means a substance that has a chemical structure substantially similar to that of a controlled dangerous substance and that was specifically designed to produce an effect substantially similar to that of a controlled dangerous substance. The term shall not include a substance manufactured or distributed in conformance with the provisions of an approved new drug application or an exemption for investigational use within the meaning of section 505 of the "Federal Food, Drug and Cosmetic Act," 52 Stat. 1052 (21 U.S.C. s.355).
"Counterfeit substance" means a controlled dangerous substance or controlled substance analog which, or the container or labeling of which, without authorization, bears the trademark, trade name, or other identifying mark, imprint, number, or device, or any likeness thereof, of a manufacturer, distributor, or dispenser other than the person or persons who in fact manufactured, distributed, or dispensed the substance and which thereby falsely purports or is represented to be the product of, or to have been distributed by, such other manufacturer, distributor, or dispenser.
"Deliver" or "delivery" means the actual, constructive, or attempted transfer from one person to another of a controlled dangerous substance or controlled substance analog, whether or not there is an agency relationship.
"Dispense" means to deliver a controlled dangerous substance or controlled substance analog to an ultimate user or research subject by or pursuant to the lawful order of a practitioner, including the prescribing, administering, packaging, labeling, or compounding necessary to prepare the substance for that delivery. "Dispenser" means a practitioner who dispenses.
"Distribute" means to deliver other than by administering or dispensing a controlled dangerous substance or controlled substance analog. "Distributor" means a person who distributes.
"Drugs" means (1) substances recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement to any of them; and (2) substances intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; and (3) substances, other than food, intended to affect the structure or any function of the body of man or other animals; and (4) substances intended for use as a component of any substance specified in (1), (2), and (3) of this definition; but does not include devices or their components, parts, or accessories. The term "drug" also does not include: hemp and hemp products cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.); cannabis as defined in section 3 of P.L.2021, c.16 (C.24:6I-31 et al.) which is cultivated and produced for use in a cannabis item, as defined in that section, in accordance with the "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (C.24:6I-31 et al.); [and] cannabis resin as defined in that section 3 (C.24:6I-33) which is extracted for use in a cannabis item, as defined in that section, in accordance with that act, and an intoxicating hemp product as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33), that is produced, manufactured, or sold in accordance with P.L.2024, c.73 (C.24:6I-48.1) and P.L. , c. (C. ) (pending before the Legislature as this bill).
"Hashish" means the resin extracted from any part of the plant Cannabis sativa L. and any compound, manufacture, salt, derivative, mixture, or preparation of such resin. "Hashish" shall not mean: hemp and hemp products cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.); or cannabis resin as defined in section 3 of P.L.2021, c.16 (C.24:6I-33) which is extracted for use in a cannabis item, as defined in that section, in accordance with the "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (C.24:6I-31 et al.); or an intoxicating hemp product as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33), that is produced, manufactured, or sold in accordance with P.L.2024, c.73 (C.24:6I-48.1) and P.L. , c. (C. ) (pending before the Legislature as this bill).
"Immediate precursor" means a substance which the Division of Consumer Affairs in the Department of Law and Public Safety has found to be and by regulation designates as being the principal compound commonly used or produced primarily for use, and which is an immediate chemical intermediary used or likely to be used in the manufacture of a controlled dangerous substance or controlled substance analog, the control of which is necessary to prevent, curtail, or limit such manufacture.
"Manufacture" means the production, preparation, propagation, compounding, conversion, or processing of a controlled dangerous substance or controlled substance analog, either directly or by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container, except that this term does not include the preparation or compounding of a controlled dangerous substance or controlled substance analog by an individual for the individual's own use or the preparation, compounding, packaging, or labeling of a controlled dangerous substance: (1) by a practitioner as an incident to the practitioner administering or dispensing a controlled dangerous substance or controlled substance analog in the course of the practitioner's professional practice, or (2) by a practitioner, or under the practitioner's supervision, for the purpose of, or as an incident to, research, teaching, or chemical analysis and not for sale.
"Marijuana" means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds, except those containing resin extracted from the plant. "Marijuana" shall not mean: hemp and hemp products cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.); [or] cannabis as defined in section 3 of P.L.2021, c.16 (C.24:6I-33) which is cultivated and produced for use in a cannabis item, as defined in that section, in accordance with the "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (C.24:6I-31 et al.); or an intoxicating hemp product as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33), that is produced, manufactured, or sold in accordance with P.L.2024, c.73 (C.24:6I-48.1) and P.L. , c. (C. ) (pending before the Legislature as this bill).
"Narcotic drug" means any of the following, whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis:
(1) Opium, coca leaves, and opiates;
(2) A compound, manufacture, salt, derivative, or preparation of opium, coca leaves, or opiates;
(3) A substance, and any compound, manufacture, salt, derivative, or preparation thereof, which is chemically identical with any of the substances referred to in (1) and (3) of this definition, except that the words "narcotic drug" as used in this act shall not include decocainized coca leaves or extracts of coca leaves, which extracts do not contain cocaine or [ecogine] ecgonine.
"Opiate" means any dangerous substance having substance use disorder-forming or substance use disorder-sustaining liability similar to morphine or being capable of conversion into a drug having such substance use disorder-forming or substance use disorder-sustaining liability. "Opiate" does not include, unless specifically designated as controlled pursuant to the provisions of section 3 of P.L.1970, c.226 (C.24:21-3), the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and its salts (dextromethorphan "Opiate" includes its racemic and levorotatory forms.
"Opium poppy" means the plant of the species Papaver somniferum L., except the seeds thereof.
"Person" means any corporation, association, partnership, trust, other institution or entity, or one or more individuals.
"Person with a substance use disorder" means a person who as a result of using a controlled dangerous substance or controlled substance analog or alcohol has been in a state of psychic or physical dependence, or both, arising from the use of that controlled dangerous substance or controlled substance analog or alcohol on a continuous or repetitive basis. Substance use disorder is characterized by behavioral and other responses, including, but not limited to, a strong compulsion to take the substance on a recurring basis in order to experience its psychic effects, or to avoid the discomfort of its absence.
"Plant" means an organism having leaves and a readily observable root formation, including, but not limited to, a cutting having roots, a rootball or root hairs.
"Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing.
"Practitioner" means a physician, dentist, veterinarian, scientific investigator, laboratory, pharmacy, hospital, or other person licensed, registered, or otherwise permitted to distribute, dispense, conduct research with respect to, or administer a controlled dangerous substance or controlled substance analog in the course of professional practice or research in this State. As used in this definition:
(1) "Physician" means a physician authorized by law to practice medicine in this or any other state and any other person authorized by law to treat sick and injured human beings in this or any other state.
(2) "Veterinarian" means a veterinarian authorized by law to practice veterinary medicine in this State.
(3) "Dentist" means a dentist authorized by law to practice dentistry in this State.
(4) "Hospital" means any federal institution, or any institution for the care and treatment of the sick and injured, operated or approved by the appropriate State department as proper to be entrusted with the custody and professional use of controlled dangerous substances or controlled substance analogs.
(5) "Laboratory" means a laboratory to be entrusted with the custody of narcotic drugs and the use of controlled dangerous substances or controlled substance analogs for scientific, experimental, and medical purposes and for purposes of instruction approved by the Department of Health.
"Prescription legend drug" means any drug which under federal or State law requires dispensing by prescription or order of a licensed physician, veterinarian, or dentist and is required to bear the statement "Rx only" or similar wording indicating that such drug may be sold or dispensed only upon the prescription of a licensed medical practitioner and is not a controlled dangerous substance or stramonium preparation.
"Production" includes the manufacture, planting, cultivation, growing, or harvesting of a controlled dangerous substance or controlled substance analog.
"Residential treatment facility" means any facility licensed and approved by the Department of Human Services and which is approved by any county probation department for the inpatient treatment and rehabilitation of persons with a substance use disorder.
"Schedules I, II, III, IV, and V" are the schedules set forth in sections 5 through 8 of P.L.1970, c.226 (C.24:21-5 through 24:21-8) and in section 4 of P.L.1971, c.3 (C.24:21-8.1) and as modified by any regulations issued by the Director of the Division of Consumer Affairs in the Department of Law and Public Safety pursuant to the director's authority as provided in section 3 of P.L.1970, c.226 (C.24:21-3).
"State" means the State of New Jersey.
"Stramonium preparation" means a substance prepared from any part of the stramonium plant in the form of a powder, pipe mixture, cigarette, or any other form with or without other ingredients.
"Stramonium plant" means the plant Datura Stramonium Linne, including Datura Tatula Linne.
"Ultimate user" means a person who lawfully possesses a controlled dangerous substance or controlled substance analog for the person's own use or for the use of a member of the person's household or for administration to an animal owned by the person or by a member of the person's household.
(cf: P.L.2023, c.177, s.6)
2. Section 3 of P.L.2019, c.238 (C.4:28-8) is amended to read as follows:
3. As used in sections 1 through 9 of P.L.2019, c.238 (C.4:28-6 et al.), unless the context otherwise requires:
"Agent" means an employee or contractor of a hemp producer.
"Applicant" means a person, or for a business entity, any person authorized to act on behalf of the business entity, who applies to the department to be a hemp producer in the State.
"Commercial sale" means the sale of a product in the stream of commerce at retail, at wholesale, or on the Internet.
"Cultivate" means to plant, water, grow, or harvest a plant or crop.
"Department" means the New Jersey Department of Agriculture.
"Federally defined THC level for hemp" means a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis for hemp or in a hemp product.
"Handle" means to possess or store a hemp plant on premises owned, operated, or controlled by a hemp producer for any period of time or in a vehicle for any period of time other than during the actual transport of the plant between premises owned, operated, or controlled by hemp producers or persons or entities authorized to produce hemp pursuant to 7 U.S.C. s.1639o et seq. and any state law or rule or regulation adopted pursuant thereto. "Handle" does not mean possession or storage of finished hemp products.
"Hemp" means the plant Cannabis sativa L. and any part of that plant, including the seeds of the plant and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a total [tetrahydrocannabinol] THC concentration of not more than 0.3 percent on a dry weight basis. Hemp and hemp-derived cannabinoids, including cannabidiol, shall be considered an agricultural commodity and not a controlled substance due to the presence of hemp or hemp-derived cannabinoids.
"Hemp producer" means a person or business entity authorized by the department to cultivate, handle, or process hemp in the State.
"Hemp product" means a finished product with a non-intoxicating total [tetrahydrocannabinol] THC concentration [of not more than 0.3 percent, and not more than 0.5 milligrams of total THC per serving and 2.5 milligrams of total THC per package, that] which is derived from or made by processing a hemp plant or plant part and prepared in a form available for commercial sale. The term includes cosmetics, personal care products, food intended for human or animal consumption, cloth, cordage, fiber, fuel, paint, paper, particleboard, plastics, and any product containing one or more hemp-derived cannabinoids such as cannabidiol. Hemp products shall not be considered controlled substances due to the presence of hemp or hemp-derived cannabinoids. "Hemp product" shall not mean: (1) a [cannabinoid] product that [is not derived from naturally occurring biologically active chemical constituents and shall not mean] contains artificially or synthetically produced cannabinoids of any kind; (2) a cannabinoid produced using chemical synthesis, chemical modification, chemical conversion process, isomerization, or any other synthesis methodology as may be identified by the Cannabis Regulatory Commission; or (3) an intoxicating hemp product as defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Non-intoxicating total THC concentration" means: (1) a total THC concentration of not more than 0.3 percent, and not more than 0.5 milligrams of total THC concentration per serving and 2.5 milligrams of total THC concentration per package; or (2) a total THC concentration of not more than 10 milligrams per package if the product contains at least a 20:1 ratio of cannabidiol to THC with a total THC concentration of not more than 0.5 milligrams of total THC concentration per serving, or, for a tincture, a total THC concentration of not more than 25 milligrams per package if the product contains at least a 20:1 ratio of cannabidiol to THC.
"Process" means to convert hemp into a marketable form.
"Secretary" means the Secretary of the New Jersey Department of Agriculture.
"Transport" means the movement or shipment of hemp by a hemp producer, a person or entity authorized to produce hemp pursuant to 7 U.S.C. s.1639o et seq. and any state law or rule or regulation adopted pursuant thereto, or a hemp producer's or authorized entity's third-party carrier or agent. "Transport" shall not mean the movement or shipment of hemp products.
"THC" means tetrahydrocannabinol, including delta-8, delta-9, delta-10, tetrahydrocannabinolic acid, and any other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol, regardless of how derived or manufactured.
"Tincture" means a solution of extract derived directly from hemp or a hemp product, which is dissolved in alcohol, glycerin, or vegetable oils.
"Total THC concentration" means the total concentration of all tetrahydrocannabinols in cannabis, hemp, [or] a hemp product, or an intoxicating hemp product, including delta-8, delta-9, delta-10, tetrahydrocannabinolic acid and any other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol, regardless of how derived or manufactured[, and any other cannabinoid, other than cannabidiol, identified by the Cannabis Regulatory Commission, in consultation with the Department of Agriculture and the Attorney General, as causing intoxication].
(cf: P.L.2024, c.73, s.1)
3. Section 3 of P.L.2021, c.16 (C.24:6I-33) is amended to read as follows:
3. Definitions.
As used in P.L.2021, c.16 (C.24:6I-31 et al.) regarding the personal use of cannabis, unless the context otherwise requires:
"Alternative treatment center" means an organization issued a permit pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) to operate as a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant, as well as any alternative treatment center deemed pursuant to section 7 of that act (C.24:6I-7) to concurrently hold a medical cannabis cultivator permit, a medical cannabis manufacturer permit, and a medical cannabis dispensary permit.
"Cannabis" means all parts of the plant Cannabis sativa L., whether growing or not, the seeds thereof, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds, except those containing resin extracted from the plant, which are cultivated and, when applicable, manufactured in accordance with P.L.2021, c.16 (C.24:6I-31 et al.) for use in cannabis products as set forth in this act, but shall not include the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink, or other product. "Cannabis" does not include: medical cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.); marijuana as defined in N.J.S.2C:35-2 and applied to any offense set forth in chapters 35, 35A, and 36 of Title 2C of the New Jersey Statutes, or P.L.2001, c.114 (C.2C:35B-1 et seq.), or [marihuana] marijuana as defined in section 2 of P.L.1970, c.226 (C.24:21-2) and applied to any offense set forth in the "New Jersey Controlled Dangerous Substances Act," P.L.1970, c.226 (C.24:21-1 et al.); or hemp or a hemp product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.), or an intoxicating hemp product.
"Cannabis consumption area" means, as further described in section 28 of P.L.2019, c.153 (C.24:6I-21), a designated location operated by a licensed cannabis retailer or permit holder for dispensing medical cannabis, for which both a State and local endorsement has been obtained, that is either: (1) an indoor, structurally enclosed area of the cannabis retailer or permit holder that is separate from the area in which retail sales of cannabis items or the dispensing of medical cannabis occurs; or (2) an exterior structure on the same premises as the cannabis retailer or permit holder, either separate from or connected to the cannabis retailer or permit holder, at which cannabis items or medical cannabis either obtained from the retailer or permit holder, or brought by a person to the consumption area, may be consumed.
"Cannabis cultivator" means any licensed person or entity that grows, cultivates, or produces cannabis in this State, and sells, and may transport, this cannabis to other cannabis cultivators, or usable cannabis to cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 1 Cannabis Cultivator license.
"Cannabis delivery service" means any licensed person or entity that provides courier services for consumer purchases of cannabis items, intoxicating hemp products, and related supplies fulfilled by a cannabis retailer in order to make deliveries of the cannabis items and related supplies to that consumer, and which services include the ability of a consumer to purchase the cannabis items or intoxicating hemp products directly through the cannabis delivery service, which after presenting the purchase order to the cannabis retailer for fulfillment, is delivered to that consumer. This person or entity shall hold a Class 6 Cannabis Delivery license.
"Cannabis distributor" means any licensed person or entity that transports cannabis in bulk intrastate from one licensed cannabis cultivator to another licensed cannabis cultivator, or transports cannabis items in bulk intrastate from any one class of licensed cannabis establishment to another class of licensed cannabis establishment, and may engage in the temporary storage of cannabis or cannabis items as necessary to carry out transportation activities. This person or entity shall hold a Class 4 Cannabis Distributor license.
"Cannabis establishment" means a cannabis cultivator, a cannabis manufacturer, a cannabis wholesaler, or a cannabis retailer.
"Cannabis extract" means a substance obtained by separating resins from cannabis by: (1) a chemical extraction process using a hydrocarbon-based solvent, such as butane, hexane, or propane; (2) a chemical extraction process using the hydrocarbon-based solvent carbon dioxide, if the process uses high heat or pressure; or (3) any other process identified by the Cannabis Regulatory Commission by rule or regulation.
"Cannabis flower" means the flower of the plant Cannabis sativa L. within the plant family Cannabaceae.
"Cannabis item" means any usable cannabis, cannabis product, cannabis extract, [intoxicating hemp product,] and any other cannabis resin. "Cannabis item" does not include: any form of medical cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.) [or] ; hemp or a hemp product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.); or any intoxicating hemp product.
"Cannabis leaf" means the leaf of the plant Cannabis sativa L. within the plant family Cannabaceae.
"Cannabis manufacturer" means any licensed person or entity that processes cannabis items in this State by purchasing or otherwise obtaining usable cannabis, manufacturing, preparing, and packaging cannabis items, and selling, and optionally transporting, these items to other cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 2 Cannabis Manufacturer license."
"Cannabis paraphernalia" means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing a cannabis item into the human body. "Cannabis paraphernalia" does not include drug paraphernalia as defined in N.J.S.2C:36-1 and which is used or intended for use to commit a violation of chapter 35 or 36 of Title 2C of the New Jersey Statutes.
"Cannabis product" means a product containing usable cannabis, cannabis extract, or any other cannabis resin and other ingredients intended for human consumption or use, including a product intended to be applied to the skin or hair, edible cannabis products, ointments, and tinctures. "Cannabis product" does not include: (1) usable cannabis by itself; or (2) cannabis extract by itself; or (3) any other cannabis resin by itself.
"Cannabis resin" means the resin extracted from any part of the plant Cannabis sativa L., including cannabis extract and resin extracted using non-chemical processes, processed and used in accordance with P.L.2021, c.16 (C.24:6I-31 et al.). "Cannabis resin" does not include: any form of medical cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.); hashish as defined in N.J.S.2C:35-2 and applied to any offense set forth in chapters 35, 35A, and 36 of Title 2C of the New Jersey Statutes, or P.L.2001, c.114 (C.2C:35B-1 et seq.), or as defined in section 2 of P.L.1970, c.226 (C.24:21-2) and applied to any offense of the "New Jersey Controlled Dangerous Substances Act," P.L.1970, c.226 (C.24:21-1 et al.); [or] hemp or a hemp product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.); or any intoxicating hemp product.
"Cannabis retailer" means any licensed person or entity that purchases or otherwise obtains usable cannabis from cannabis cultivators and cannabis items from cannabis manufacturers or cannabis wholesalers, and sells these to consumers from a retail store, and may use a cannabis delivery service or a certified cannabis handler for the off-premises delivery of cannabis items and related supplies to consumers. A cannabis retailer shall also accept consumer purchases to be fulfilled from its retail store that are presented by a cannabis delivery service which will be delivered by the cannabis delivery service to that consumer. This person or entity shall hold a Class 5 Cannabis Retailer license.
"Cannabis testing facility" means an independent, third-party entity meeting accreditation requirements established by the Cannabis Regulatory Commission that is licensed to analyze and certify cannabis items and medical cannabis for compliance with applicable health, safety, and potency standards.
"Cannabis wholesaler" means any licensed person or entity that purchases or otherwise obtains, stores, sells or otherwise transfers, and may transport, cannabis items for the purpose of resale or other transfer to either another cannabis wholesaler or to a cannabis retailer, but not to consumers. This person or entity shall hold a Class 3 Cannabis Wholesaler license.
"Commission" means the Cannabis Regulatory Commission established pursuant to section 31 of P.L.2019, c.153 (C.24:6I-24).
"Conditional license" means a temporary license designated as either a Class 1 Cannabis Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis Retailer license, or a Class 6 Cannabis Delivery license that allows the holder to lawfully act as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service as the case may be, which is issued pursuant to an abbreviated application process, after which the conditional license holder shall have a limited period of time in which to become fully licensed by satisfying all of the remaining conditions for licensure which were not required for the issuance of the conditional license.
"Consumer" means a person 21 years of age or older who purchases, directly or through a cannabis delivery service, acquires, owns, holds, or uses cannabis items or intoxicating hemp products for personal use by a person 21 years of age or older, but not for resale to others.
"Consumption" means the act of ingesting, inhaling, or otherwise introducing cannabis items or intoxicating hemp products into the human body.
"Delivery" means the transportation of cannabis items or intoxicating hemp products and related supplies to a consumer. "Delivery" also includes the use by a licensed [cannabis] retailer of any third party technology platform to receive, process, and fulfill orders by consumers, which third party shall not be required to be a licensed cannabis establishment, distributor, or delivery service, provided that any physical acts in connection with fulfilling the order and delivery shall be accomplished by a certified cannabis or intoxicating hemp product handler performing work for or on behalf of the licensed [cannabis] retailer, which includes a certified cannabis or intoxicating hemp product handler employed or otherwise working on behalf of a cannabis delivery service making off-premises deliveries of consumer purchases fulfilled by that [cannabis] retailer.
"Department" means the Department of Health.
"Director" means the Director of the Office of Minority, Disabled Veterans, and Women Cannabis Business Development in the Cannabis Regulatory Commission.
"Executive director" means the executive director of the Cannabis Regulatory Commission.
"Financial consideration" means value that is given or received either directly or indirectly through sales, barter, trade, fees, charges, dues, contributions, or donations.
"Immature cannabis plant" means a cannabis plant that is not flowering.
"Impact zone" means any municipality, based on past criminal marijuana enterprises contributing to higher concentrations of law enforcement activity, unemployment, and poverty, or any combination thereof, within parts of or throughout the municipality, that:
(1) has a population of 120,000 or more according to the most recently compiled federal decennial census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.);
(2) based upon data for calendar year 2019, ranks in the top 40 percent of municipalities in the State for marijuana- or hashish-related arrests for violation of paragraph (4) of subsection a. of N.J.S.2C:35-10; has a crime index total of 825 or higher based upon the indexes listed in the annual Uniform Crime Report by the Division of State Police; and has a local average annual unemployment rate that ranks in the top 15 percent of all municipalities, based upon average annual unemployment rates estimated for the relevant calendar year by the Office of Research and Information in the Department of Labor and Workforce Development;
(3) is a municipality located in a county of the third class, based upon the county's population according to the most recently compiled federal decennial census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.), that meets all of the criteria set forth in paragraph (2) other than having a crime index total of 825 or higher; or
(4) is a municipality located in a county of the second class, based upon the county's population according to the most recently compiled federal decennial census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.):
(a) with a population of less than 60,000 according to the most recently compiled federal decennial census, that for calendar year 2019 ranks in the top 40 percent of municipalities in the State for marijuana- or hashish-related arrests for violation of paragraph (4) of subsection a. of N.J.S.2C:35-10; has a crime index total of 1,000 or higher based upon the indexes listed in the 2019 annual Uniform Crime Report by the Division of State Police; but for calendar year 2019 does not have a local average annual unemployment rate that ranks in the top 15 percent of all municipalities, based upon average annual unemployment rates estimated for the relevant calendar year by the Office of Research and Information in the Department of Labor and Workforce Development; or
(b) with a population of not less than 60,000 or more than 80,000 according to the most recently compiled federal decennial census; has a crime index total of 650 or higher based upon the indexes listed in the 2019 annual Uniform Crime Report; and for calendar year 2019 has a local average annual unemployment rate of 3.0 percent or higher using the same estimated annual unemployment rates.
"Intoxicating hemp beverage" means a beverage that is an intoxicating hemp product.
"Intoxicating hemp product" means any product cultivated, derived, or manufactured [in this State] from hemp regulated pursuant to the "Agricultural Improvement Act of 2018," Pub.L.115-334 or any product cultivated, derived, or manufactured in this State from hemp regulated pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.) that is sold in this State [that] and has [a] an intoxicating total THC concentration [of total THC greater than 0.5 milligrams per serving or 2.5 milligrams per package]. "Intoxicating hemp product" shall not include: (1) a [cannabinoid] product that [is not derived from naturally occurring biologically active chemical constituents and shall not include hemp products] contains artificially or synthetically produced cannabinoids of any kind; (2) a cannabinoid produced using chemical synthesis, chemical modification, chemical conversion process, isomerization, or any other synthesis methodology as may be identified by the commission; or (3) a hemp product as defined in section 3 of P.L.2019, c.238 (C.4:28-8).
"Intoxicating hemp product establishment" means an establishment at which a licensee conducts activities related to the manufacture or sale of intoxicating hemp products.
"Intoxicating total THC concentration" means: (1) a total THC concentration of more than 0.3 percent, or more than 0.5 milligrams of total THC per serving and 2.5 milligrams of total THC per package; and (2) a total THC concentration of more than 10 milligrams per package if the product contains at least a 20:1 ratio of cannabidiol to THC with a total THC concentration of more than 0.5 milligrams of THC per serving or more than 10 milligrams total THC per package or, for a tincture, a total THC concentration of more than 25 milligrams per package if the product contains at least a 20:1 ratio of cannabidiol to THC. "Intoxicating total THC concentration" also means any total THC concentration identified by the Cannabis Regulatory Commission, in consultation with the Department of Agriculture and the Attorney General, as causing intoxication.
"License" means a license issued under P.L.2021, c.16 (C.24:6I-31 et al.), including a license that is designated as either a Class 1 Cannabis Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis Retailer license, or a Class 6 Cannabis Delivery license. The term includes a conditional license for a designated class, except when the context of the provisions of P.L.2021, c.16 (C.24:6I-31 et al.) otherwise intend to only apply to a license and not a conditional license. Where the context indicates, "license" shall also mean a license issued by the commission pursuant to P.L.2024, c.73 (C.24:6I-48.1 et al.) or P.L. , c. (C. ) (pending before the Legislature as this bill) to conduct activities related to the manufacture, distribution, or sale of intoxicating hemp products, or a license approving the holder of any valid and unrevoked plenary wholesale license or plenary retail distribution license, as those terms are defined pursuant to R.S.33:1-11 and R.S.33:1-12, to sell intoxicating hemp beverages in accordance with section 5 of P.L.2024, c.73 (C.24:6I-48.2).
"Licensee" means a person or entity that holds a license issued under P.L.2021, c.16 (C.24:6I-31 et al.), including a license that is designated as either a Class 1 Cannabis Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis Retailer license, or a Class 6 Cannabis Delivery license, and includes a person or entity that holds a conditional license for a designated class, except when the context of the provisions of P.L.2021, c.16 (C.24:6I-31 et al.) otherwise intend to only apply to a person or entity that holds a license and not a conditional license. Where the context indicates, "licensee" shall also mean a person or entity that holds a license issued by the commission pursuant P.L.2024, c.73 (C.24:6I-48.1 et al.) or P.L. , c. (C. ) (pending before the Legislature as this bill) to conduct activities related to the manufacture, distribution, or sale of intoxicating hemp products, or the holder of any valid and unrevoked plenary wholesale license or plenary retail distribution license, as those terms are defined pursuant to R.S.33:1-11 and R.S.33:1-12, who has been approved by the commission to sell intoxicating hemp beverages in accordance with section 5 of P.L.2024, c.73 (C.24:6I-48.2).
"Licensee representative" means an owner, director, officer, manager, employee, agent, or other representative of a licensee, to the extent that the person acts in a representative capacity.
"Manufacture" means the drying, processing, compounding, or conversion of usable cannabis into cannabis products or cannabis resins or hemp into intoxicating hemp products. "Manufacture" does not include packaging or labeling.
"Mature cannabis plant" means a cannabis plant that is not an immature cannabis plant.
"Medical cannabis" means cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.). "Medical cannabis" does not include any cannabis or cannabis item which is cultivated, produced, processed, and consumed in accordance with P.L.2021, c.16 (C.24:6I-31 et al.).
"Microbusiness" means a person or entity licensed under P.L.2021, c.16 (C.24:6I-31 et al.) as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service that may only, with respect to its business operations, and capacity and quantity of product: (1) employ no more than 10 employees; (2) operate a cannabis establishment occupying an area of no more than 2,500 square feet, and in the case of a cannabis cultivator, grow cannabis on an area no more than 2,500 square feet measured on a horizontal plane and grow above that plane not higher than 24 feet; (3) possess no more than 1,000 cannabis plants each month, except that a cannabis distributor's possession of cannabis plants for transportation shall not be subject to this limit; (4) acquire each month, in the case of a cannabis manufacturer, no more than 1,000 pounds of usable cannabis; (5) acquire for resale each month, in the case of a cannabis wholesaler, no more than 1,000 pounds of usable cannabis, or the equivalent amount in any form of manufactured cannabis product or cannabis resin, or any combination thereof; and (6) acquire for retail sale each month, in the case of a cannabis retailer, no more than 1,000 pounds of usable cannabis, or the equivalent amount in any form of manufactured cannabis product or cannabis resin, or any combination thereof.
"Noncommercial" means not dependent or conditioned upon the provision or receipt of financial consideration.
"Non-intoxicating total THC concentration" means: (1) a total THC concentration of not more than 0.3 percent, and not more than 0.5 milligrams of total THC concentration per serving and 2.5 milligrams of total THC concentration per package; or (2) a total THC concentration of not more than 10 milligrams per package if the product contains at least a 20:1 ratio of cannabidiol to THC with a total THC concentration of not more than 0.5 milligrams of total THC concentration per serving, or, for a tincture, a total THC concentration of not more than 25 milligrams per package if the product contains at least a 20:1 ratio of cannabidiol to THC.
"Premises" or "licensed premises" includes the following areas of a location licensed under P.L.2021, c.16 (C.24:6I-31 et al.): all public and private enclosed areas at the location that are used in the business operated at the location, including offices, kitchens, rest rooms, and storerooms; all areas outside a building that the Cannabis Regulatory Commission has specifically licensed for the production, manufacturing, wholesaling, distributing, retail sale, or delivery of cannabis items or intoxicating hemp products; and, for a location that the commission has specifically licensed for the production of cannabis or intoxicating hemp products outside a building, the entire lot or parcel that the licensee owns, leases, or has a right to occupy.
"Produce" means the planting, cultivation, growing or harvesting of cannabis or hemp for intoxicating hemp products. "Produce" does not include the drying of cannabis by a cannabis manufacturer, if the cannabis manufacturer is not otherwise manufacturing cannabis.
"Public place" means any place to which the public has access that is not privately owned; or any place to which the public has access where alcohol consumption is not allowed, including, but not limited to, a public street, road, thoroughfare, sidewalk, bridge, alley, plaza, park, playground, swimming pool, shopping area, public transportation facility, vehicle used for public transportation, parking lot, public library, or any other public building, structure, or area.
"Radio" means a system for transmitting sound without visual images, and includes broadcast, cable, on-demand, satellite, or Internet programming. "Radio" includes any audio programming downloaded or streamed via the Internet.
"Significantly involved person" means a person or entity who holds at least a five percent investment interest in a proposed or licensed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service, or who is a decision making member of a group that holds at least a 20 percent investment interest in a proposed or licensed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service, in which no member of that group holds more than a five percent interest in the total group investment interest, and the person or entity makes controlling decisions regarding the proposed or licensed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service operations.
"Television" means a system for transmitting visual images and sound that are reproduced on screens, and includes broadcast, cable, on-demand, satellite, or Internet programming. "Television" includes any video programming downloaded or streamed via the Internet.
"THC" means [delta-9-tetrahydrocannabinol and its precursor,] tetrahydrocannabinol, including delta-8, delta-9, delta-10, tetrahydrocannabinolic acid, [the main psychoactive chemicals contained in the cannabis plant] and any other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol, regardless of how derived or manufactured.
"Tincture" means a solution of extract derived directly from hemp or a hemp product, which is dissolved in alcohol, glycerin, or vegetable oils.
"Total THC concentration" means the total concentration of all tetrahydrocannabinols in cannabis, hemp, [or] a hemp product, or an intoxicating hemp product, including delta-8, delta-9, delta-10, tetrahydrocannabinolic acid and any other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol, regardless of how derived or manufactured[, and any other cannabinoid, other than cannabidiol, identified by the Cannabis Regulatory Commission, in consultation with the Department of Agriculture and the Attorney General, as causing intoxication].
"Usable cannabis" means the dried leaves and flowers of the female plant Cannabis sativa L., and does not include the seedlings, seeds, stems, stalks, or roots of the plant.
(cf: P.L.2024, c.73, s.2)
4. Section 4 of P.L.2024, c.73 (C.24:6I-48.1) is amended to read as follows:
4. a. A person or entity shall not sell or distribute any intoxicating hemp product unless:
(1) the person or entity is licensed by the Cannabis Regulatory Commission in accordance with [P.L.2021, c.16 (C.24:6I-31 et al.)] P.L.2024, c.73 (C.24:6I-48.1 et al.) and P.L. , c. (C. ) (pending before the Legislature as this bill), and any applicable regulations promulgated by the Cannabis Regulatory Commission; or
(2) (a) the person or entity is a holder of any valid and unrevoked plenary wholesale license or plenary retail distribution license, as those terms are defined in R.S.33:1-11 and R.S.33:1-12, and is approved by the commission to sell intoxicating hemp beverages in accordance with section 5 of P.L.2024, c.73 (C.24:6I-48.2) and any applicable regulations promulgated by the Cannabis Regulatory Commission;
(b) Notwithstanding subparagraph (a) of this paragraph, the holder of any valid and unrevoked plenary wholesale license or plenary retail distribution license may continue to sell or distribute intoxicating hemp beverages until such time that the Cannabis Regulatory Commission adopts rules and regulations in accordance with subsection d. of this section. Within 120 days following the adoption of rules and regulations by the commission in accordance with paragraph (1) of subsection d. of this section, the holder of any valid and unrevoked plenary wholesale license or plenary retail distribution license shall stop the sale or distribution of any intoxicating hemp beverages and may continue the sale or distribution of any intoxicating hemp beverages only upon approval by the commission in accordance with section 5 of P.L.2024, c.73 (C.24:6I-48.2) and any applicable regulations promulgated by the Cannabis Regulatory Commission; and
(3) the product complies with the provisions of [P.L.2021, c.16 (C.24:6I-31 et al.)] P.L.2024, c.73 (C.24:6I-48.1 et al.), P.L. , c. (C. ) (pending before the Legislature as this bill), and any rules or regulations adopted pursuant thereto.
b. (1) It shall be unlawful to sell or distribute a [hemp product or cannabis item that is not derived from naturally occurring biologically active chemical constituents] product that either contains or is an artificially or synthetically produced cannabinoid of any kind, or contains a cannabinoid produced using chemical synthesis, chemical modification, chemical conversion process, isomerization, or any other synthesis methodology as may be identified by the commission.
(2) Except as otherwise provided by law, it shall be unlawful to sell or distribute a product intended for human consumption that contains [tetrahydrocannabinol] THC in any detectable amount to a person under 21 years of age.
(3) With the exception of licensed deliveries, it shall be unlawful to sell or distribute a product or a sample of a product anywhere outside of a licensed facility.
(4) Except as otherwise provided in P.L.2024, c.73 (C.24:6I-48.1 et seq.) or P.L. , c. (C. ) (pending before the Legislature as this bill), no person or entity shall knowingly sell an intoxicating hemp product that is not accompanied by a certificate of analysis issued within the previous six-month period by a laboratory in compliance with testing standards as established by the commission.
(5) No person or entity shall dispense, distribute, sell, or offer for sale an intoxicating hemp product, including an intoxicating hemp beverage, from a vending machine.
(6) No person or entity shall distribute any intoxicating hemp products, including intoxicating hemp beverages, without remuneration if done for promotional business purposes.
c. In addition to any other penalty provided by law, any person or entity licensed by the commission, or any person approved by the commission to sell intoxicating hemp beverages pursuant to section 5 of P.L.2024, c.73 (C.24:6I-48.2), who violates subsection a. or b. of this section shall be subject to any civil penalties or fines adopted by the commission in accordance with P.L.2021, c.16 (C.24:6I-31 et al.).
d. (1) Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), or subsection d. of section 5 of P.L.2024, c.73 (C.24:6I-48.2) to the contrary, and in accordance with the authority established pursuant to section 18 of P.L.2021, c.16 (C.24:6I-35), P.L.2024, c.73 (C.24:6I-48.1), and P.L. , c. (C. ) (pending before the Legislature as this bill), the commission, in consultation with the Department of Agriculture and the Attorney General, and within 180 days of the effective date of [P.L.2024, c.73 (C.24:6I-48.1 et al.)] P.L. , c. (C. ) (pending before the Legislature as this bill), is authorized to adopt immediately upon filing with the Office of Administrative Law rules and regulations necessary to implement [this act] P.L.2024, c.73 (C.24:6I-48.1 et al) and P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) Following any rules or regulations established by the commission in accordance with subparagraph (1) of this subsection, the commission shall, in consultation the Department of Agriculture and the Attorney General, and in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement the provisions of P.L.2024, c.73 (C.24:6I-48.1 et al.) and P.L. , c. (C. ) (pending before the Legislature as this bill).
(3) The commission is authorized to promulgate:
(a) such rules and regulations governing the establishment of any license type related to manufacture, distribution, and sale of intoxicating hemp products; and
(b) any requirements for licensure for manufacture, distribution, and sale of intoxicating hemp products that the commission deems necessary and appropriate to maximize the effectiveness and safety of intoxicating hemp products.
(4) The commission is authorized to promulgate rules and regulations pursuant to this subsection that shall provide for a streamlined applicationand approval process for persons or entities that hold an active and valid license issued by the commission pursuant to P.L.2021, c.16 (C.24:6I-31 et al.) or a valid and unrevoked plenary wholesale license or plenary retail distribution license, as those terms are defined in R.S.33:1-11 and R.S.33:1-12.
(5) The rules and regulations promulgated by the commission pursuant to this subsection may permit out-of-state persons or entities to obtain a license in accordance with P.L.2024, c.73 (C.24:6I-48.1 et al.) and P.L. , c. (C. ) (pending before the Legislature as this bill) if the out-of-state person or entity complies with the rules or regulations adopted pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), or meets product and safety standards that the commission deems substantially similar to the standards adopted by the commission.
e. (1) Nothing in P.L.2024, c.73 (C.24:6I-48.1 et al.) or P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed or interpreted to limit the enforceability or applicability of the "Agriculture Improvement Act of 2018," Pub.L.115-334 or the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.).
(2) The requirements of this section and section 5 of P.L.2024, c.73 (C.24:6I-48.2) shall apply to any online retail sale of an intoxicating hemp product sold in this State.
(3) The imposition of any fine or other remedy under this act shall not preclude prosecution for a violation of the criminal laws of this State.
(cf: P.L.2024, c.73, s.4)
5. Section 5 of P.L.2024, c.73 (C.24:6I-48.2) is amended to read as follows:
5. a. (1) Notwithstanding P.L.2021, c.16 (C.24:6I-31 et al.), or any rule or regulation adopted pursuant thereto, the holder of any valid and unrevoked plenary wholesale license or plenary retail distribution license, as those terms are defined in R.S.33:1-11 and R.S.33:1-12, may sell or distribute intoxicating hemp beverages in accordance with this section and section 4 of P.L.2024, c.73 (C.24:6I-48.1) and the rules and regulations adopted by the Cannabis Regulatory Commission pursuant to subsection d. of this section.
(2) Any intoxicating hemp beverage, distributed, sold, or offered for sale pursuant to paragraph (1) of this section shall not be distributed or sold to any person under the age of 21, and shall be stored or displayed in a place that is not accessible to customers without the assistance of an employee of the establishment.
b. (1) Upon the effective date of P.L.2024, c.73 (C.24:6I-48.1 et al.) the holder of any valid and unrevoked plenary wholesale license or plenary retail distribution license shall not sell any intoxicating hemp beverages.
(2) Upon the adoption of rules and regulations by the commission pursuant to subsection d. of this section, any holder of a valid and unrevoked plenary wholesale license or plenary retail distribution license may submit an application to the commission, in a form and manner as determined by the commission, for approval to sell intoxicating hemp beverages. The commission may approve a valid holder of a plenary wholesale license or plenary retail distribution license to sell intoxicating hemp beverages in accordance with P.L.2024, c.73 (C.24:6I-48.1 et al.) and the rules and regulations adopted by the commission.
c. [Any sale of an intoxicating hemp beverage by a holder of any valid and unrevoked plenary wholesale license or plenary retail distribution license shall be subject to:
(1) the sales tax imposed on cannabis in accordance with the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.); and
(2) the same local cannabis transfer and user tax imposed on cannabis by a municipality pursuant to section 40 of P.L.2021, c.16 (C.40:48I-1).
All taxes, fees, penalties, and revenues collected pursuant to this section shall be deposited in accordance with section 41 of P.L.2021, c.16 (C.24:6I-50).] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)
d. (1) [Notwithstanding] In addition to the rules and regulations adopted pursuant to subsection d. of section 4 of P.L.2024, c.73 (C.24:6I-48.1), no later than 12 months after the effective date of this section, the commission, in consultation with the Division of Alcoholic Beverage Control shall adopt, immediately upon filing with the Office of Administrative Law, rules and regulations necessary to implement this section. The rules and regulations adopted pursuant to this section shall be effective for a period not to exceed 18 months following the date of filing and may thereafter be amended, adopted, or readopted by the commission in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
(2) The rules and regulations adopted pursuant to this section shall include, but not be limited to, provisions concerning:
(a) packaging;
(b) labeling;
(c) product testing and safety standards;
(d) [tetrahydrocannabinol amounts] a total THC concentration permitted in intoxicating hemp beverages;
(e) the number of intoxicating hemp beverages that may be sold to a customer at any given time; and
(f) a fee to be charged by the commission to cover the reasonable costs of administering this section.
[For the purposes of this section, "intoxicating hemp beverage" means a beverage that is an intoxicating hemp product as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).]
e. Any employee of a store that holds a plenary retail distribution license and is approved to sell intoxicating hemp beverages shall participate in the education program developed and implemented in accordance with section 11 of P.L.2024, c.73 (C.24:6I-48.4).
(cf: P.L.2024, c.73, s.5)
6. Section 8 of P.L.2024, c.73 (C.24:6I-48.3) is amended to read as follows:
8. a. A person or entity who sells, offers for sale, or distributes any intoxicating hemp product or a [hemp] product [or cannabis item] that [is not derived from naturally occurring biologically active chemical constituents] either contains artificially or synthetically produced cannabinoids of any kind, or is or contains a cannabinoid produced using chemical synthesis, chemical modification, chemical conversion process, isomerization, or any other synthesis methodology as may be identified by the commission, in violation of section 4 of P.L.2024, c.73 (C.24:6I-48.1), shall be liable to a civil penalty of not less than $100 for the first violation, not less than $1,000 for the second violation, and not less than $10,000 for the third and each subsequent violation. The penalty prescribed by this section shall be collected and enforced by summary proceedings under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
b. An official authorized by statute or ordinance to enforce this act, the State or local health codes, or consumer protection laws, or a law enforcement officer having enforcement authority in that municipality may issue a summons for a violation of the provisions of section 4 of P.L.2024, c.73 (C.24:6I-48.1), and may serve and execute all process with respect to the enforcement of this section consistent with the Rules of Court.
c. A penalty recovered under the provisions of this section shall be recovered by and in the name of the State by the State or local health [or] code enforcement, consumer protection agency, or other authorized government entity, including, but not limited to, the Division of Consumer Affairs in the Department of Law and Public Safety and the Cannabis Regulatory Commission established pursuant to section 31 of P.L.2019, c.153 (C.24:6I-24). With respect to an enforcement action brought by a municipal official, half of any monetary penalty shall be paid into the treasury of the municipality in which the violation occurred for the general uses of the municipality, and half shall be deposited in the special nonlapsing fund known as the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund," established pursuant to section 41 of P.L.2021, c.16 (C.24:6I-50). With respect to an enforcement action brought by any other government entity, any monetary penalty collected pursuant to P.L.2024, c.73 (C.24:6I-48.1 et al.) shall be deposited in the special nonlapsing fund known as the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund," established pursuant to section 41 of P.L.2021, c.16 (C.24:6I-50).
d. A law enforcement officer, local health official, or other government official from an agency authorized to enforce this section may confiscate any intoxicating hemp product[, hemp product, or cannabis item] that is sold, offered for sale, or distributed in violation of section 4 of P.L.2024, c.73 (C.24:6I-48.1).
e. In addition to the civil penalty authorized under subsection a. of this section, a business found to have committed more than two violations of section 4 of P.L.2024, c.73 (C.24:6I-48.1) or found to have committed a third or subsequent violation at any individual location within one year shall be deemed a public nuisance. Notwithstanding any other provision of law, a municipality shall have the power to impose restrictions on the operation, including closure, of any business determined to constitute a public nuisance pursuant to this subsection.
f. The provisions of P.L.2024, c.73 (C.24:6I-48.1 et al.) shall not be construed to impose liability on news media that accept or publish, or both, advertising for products or services that fall within the scope of P.L.2024, c.73 (C.24:6I-48.1 et al.).
(cf: P.L.2024, c.73, s.8)
7. Section 41 of P.L.2021, c.16 (C.24:6I-50) is amended to read as follows:
41. Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund.
a. All fees and penalties collected by the commission, all tax revenues on retail sales of cannabis items, all tax revenues collected pursuant to the provisions of the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.), except for amounts credited to the Property Tax Reform Account in the Property Tax Relief Fund pursuant to paragraph 7 of Section I of Article VIII of the New Jersey Constitution, all revenues, if any, collected for the Social Equity Excise Fee pursuant to section 39 of P.L.2021, c.16 (C.54:47F-1), all tax revenues on the retail sale of intoxicating hemp products, except for amounts credited to the Property Tax Reform Account in the Property Tax Relief Fund pursuant to paragraph 7 of Section I of Article VIII of the New Jersey Constitution and except as otherwise provided in section 16 of P.L. , c. (C. ) (pending before the Legislature as this bill), and all tax revenues on the retail sale of intoxicating hemp beverages by any plenary retail distribution license holder, as well as any fees associated with the approval provided to any plenary wholesale license holder to sell intoxicating hemp beverages, as defined pursuant to section 5 of P.L.2024, c.73 (C.24:6I-48.2), shall be deposited in a special nonlapsing fund which shall be known as the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund," with 15 percent of the monies deposited being placed into an account within the fund to be known as the "Underage Deterrence and Prevention Account."
b. Monies in the fund, other than any monies derived from the Social Equity Excise Fee to be appropriated annually in accordance with subsection d. of this section and the monies placed into the "Underage Deterrence and Prevention Account" within the fund for the commission to fund programs and services in accordance with subsection e. of this section, shall be appropriated annually as follows:
(1) at least 70 percent of all tax revenues on retail sales of cannabis items shall be appropriated for investments, including through grants, loans, reimbursements of expenses, and other financial assistance, in municipalities defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33), as well as provide direct financial assistance to qualifying persons residing therein as recommended by the commission; and (2) the remainder of the monies in the fund shall be appropriated by the Legislature to include the following:
(a) to oversee the development, regulation, and enforcement of activities associated with the personal use of cannabis pursuant to P.L.2021, c.16 (C.24:6I-31 et al.), and assist with assuming responsibility from the Department of Health for the further development and expansion, regulation, and enforcement of activities associated with the medical use of cannabis pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.);
(b) to reimburse the expenses incurred by any county or municipality for the training costs associated with the attendance and participation of a police officer from its law enforcement unit, as those terms are defined in section 2 of P.L.1961, c.56 (C.52:17B-67), in a program provided by an approved school, also defined in that section, which trains and certifies the police officer, including a police officer with a working dog as that term is defined in section 1 of P.L.2006, c.88 (C.10:5-29.7), as a Drug Recognition Expert for detecting, identifying, and apprehending drug-impaired motor vehicle operators, and pay for the same training costs incurred by the Division of State Police in the Department of Law and Public Safety for the training of a State police officer or trooper, including an officer or trooper with a working dog, as a Drug Recognition Expert, as well as its costs in furnishing additional program instructors to provide Drug Recognition Expert training to police officers, troopers, and working dogs. A municipality or county seeking reimbursement shall apply to the commission, itemizing the costs, with appropriate proofs, for which reimbursement is requested and provide a copy of the certificate issued to the police officer to indicate the successful completion of the program by the police officer, and that officer's working dog, if applicable; and
(c) for further investments, including through grants, loans, reimbursements of expenses, and other financial assistance, in municipalities defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33), as well as provide direct financial assistance to qualifying persons residing therein as recommended by the commission.
The monies appropriated pursuant to paragraph (1) of this subsection shall be offset by any revenue constitutionally dedicated to municipalities defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33).
c. Any remaining available monies, after the appropriation of those monies in the fund in accordance with subsection b. of this section, shall be deposited in the State's General Fund.
d. (1) (a) Not less than 60 days prior to the first day of each State fiscal year, the commission shall consult and make recommendations to the Governor and Legislature for making social equity appropriations based upon the amount of any revenues collected during the current fiscal year for the Social Equity Excise Fee pursuant to section 39 of P.L.2021, c.16 (C.54:47F-1), or, if the commission has not imposed or adjusted the excise fee in the current fiscal year pursuant to that section, then appropriations to be made from the General Fund in an amount equal to the revenues that would have been collected had it imposed or adjusted the fee, in order to invest, through grants, loans, reimbursements of expenses, and other financial assistance, in private for-profit and non-profit organizations, public entities, including any municipality defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33) as well as provide direct financial assistance to qualifying persons as determined by the commission, in order to create, expand, or promote educational and economic opportunities and activities, and the health and well-being of both communities and individuals.
(b) Not less than 30 days prior to submitting its recommendations to the Governor and Legislature pursuant to subparagraph (a) of this paragraph, the commission shall hold at least three regional public hearings throughout the State, with at least one hearing in the northern, central, and southern regions of the State, to solicit the public input on the social equity investments to be made as described in this section.
(2) The commission's recommendations to the Governor and Legislature may include, but are not limited to, recommending investments in the following categories of social equity programs:
(a) educational support, including literacy programs, extended learning time programs that endeavor to close the achievement gap and provide services for enrolled students after the traditional school day, GED application and preparedness assistance, tutoring programs, vocational programming, and financial literacy;
(b) economic development, including the encouragement and support of community activities so as to stimulate economic activity or increase or preserve residential amenities, and business marketing, and job skills and readiness training, specific employment training, and apprenticeships;
(c) social support services, including food assistance, mental health services, substance use disorders treatment and recovery, youth recreation and mentoring services, life skills support services, and reentry and other rehabilitative services for adults and juveniles being released from incarceration; and
(d) legal aid for civil and criminal cases, regardless of a party's citizenship or immigration status.
(3) The commission may also, subject to the annual appropriations act, recommend that it retain a portion of the Social Equity Excise Fee to administer startup grants, low-interest loans, application fee assistance, and job training programs through the commission's Office of Minority, Disabled Veterans and Women Cannabis Business Development established by section 32 of P.L.2019, c.153 (24:6I-25).
(4) Prior to the first day of each fiscal year, the Legislature shall provide to the commission a statement which lists the investments, including the investment recipients and investment amount, to be made by appropriations as set forth in paragraph (1) of this subsection based upon recommendations presented to the Governor and Legislature pursuant to paragraphs (1) through (3) of this subsection, and how the investment is intended to support and advance social equity as described in this subsection.
e. The monies deposited in the "Underage Deterrence and Prevention Account" within the fund shall be used by the commission, based on the acceptance of applications submitted on a form and through an approval or denial process promulgated by the commission, to fund private for-profit and non-profit organizations, and county and municipal programs and services that offer social services, educational, recreational, and employment opportunities, and local economic development designed to encourage, improve, and support youthful community activities to divert and prevent persons under 18 years of age from activities associated with the consumption of cannabis items, intoxicating hemp products, or marijuana or hashish.
(cf: P.L.2024, c.73, s.7)
8. Section 2 of P.L.1970, c.226 (C.24:21-2) is amended to read as follows:
2. As used in P.L.1970, c.226 (C.24:21-1 et seq.):
"Administer" means the direct application of a controlled dangerous substance, whether by injection, inhalation, ingestion, or any other means, to the body of a patient or research subject by: (1) a practitioner or, in the practitioner's presence, by the practitioner's lawfully authorized agent, or (2) the patient or research subject at the lawful direction and in the presence of the practitioner.
"Agent" means an authorized person who acts on behalf of or at the direction of a manufacturer, distributor, or dispenser but does not include a common or contract carrier, public warehouseman, or employee thereof.
"Commissioner" means the Commissioner of Health.
"Controlled dangerous substance" means a drug, substance, or immediate precursor in Schedules I through V of article 2 of P.L.1970, c.226 (C.24:21-1 et seq.), marijuana, and hashish as defined in this section. The term shall not include distilled spirits, wine, malt beverages, as those terms are defined or used in R.S.33:1-1 et seq., tobacco and tobacco products, and cannabis and cannabis items as those terms are defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Counterfeit substance" means a controlled dangerous substance which, or the container or labeling of which, without authorization, bears the trademark, trade name, or other identifying mark, imprint, number or device, or any likeness thereof, of a manufacturer, distributor, or dispenser other than the person or persons who in fact manufactured, distributed, or dispensed such substance and which thereby falsely purports or is represented to be the product of, or to have been distributed by, such other manufacturer, distributor, or dispenser.
"Deliver" or "delivery" means the actual, constructive, or attempted transfer from one person to another of a controlled dangerous substance, whether or not there is an agency relationship.
"Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.
"Dispense" means to deliver a controlled dangerous substance to an ultimate user or research subject by or pursuant to the lawful order of a practitioner, including the prescribing, administering, packaging, labeling, or compounding necessary to prepare the substance for that delivery.
"Dispenser" means a practitioner who dispenses.
"Distribute" means to deliver other than by administering or dispensing a controlled dangerous substance.
"Distributor" means a person who distributes.
"Division" means the Division of Consumer Affairs in the Department of Law and Public Safety.
"Drug Enforcement Administration" means the Drug Enforcement Administration in the United States Department of Justice.
"Drugs" means (1) substances recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement to any of them; and (2) substances intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; and (3) substances, other than food, intended to affect the structure or any function of the body of man or other animals; and (4) substances intended for use as a component of any article specified in (1), (2), and (3) of this definition; but does not include devices or their components, parts or accessories. "Drugs" shall not mean: hemp and hemp products cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.); cannabis as defined in section 3 of P.L.2021, c.16 (C.24:6I-33) which is cultivated and produced for use in a cannabis item, as defined in that section, in accordance with the "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (C.24:6I-31 et al.); [and] cannabis resin as defined in that section 3 (C.24:6I-33) which is extracted for use in a cannabis item, as defined in that section, in accordance with that act, and intoxicating hemp products as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33), that are produced, manufactured, or sold in accordance with P.L.2024, c.73 (C.24:6I-48.1 et al.) and P.L. , c. (C. ) (pending before the Legislature as this bill).
"Hashish" means the resin extracted from any part of the plant Cannabis sativa L. and any compound, manufacture, salt, derivative, mixture, or preparation of such resin. "Hashish" shall not mean: hemp and hemp products cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.); [and] cannabis resin as defined in section 3 of P.L.2021, c.16 (C.24:6I-33) which is extracted for use in a cannabis item, as defined in that section, in accordance with the "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (C.24:6I-31 et al.); and intoxicating hemp products as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33), that are produced, manufactured, or sold in accordance with P.L.2024, c.73 (C.24:6I-48.1 et al.) and P.L. , c. (C. ) (pending before the Legislature as this bill).
["Marihuana"] "Marijuana" means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds, except those containing resin extracted from the plant. ["Marihuana"] "Marijuana" shall not mean: hemp and hemp products cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.); [and] cannabis as defined in section 3 of P.L.2021, c.16 (C.24:6I-33) which is cultivated and produced for use in a cannabis item, as defined in that section, in accordance with the "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (C.24:6I-31 et al.); and intoxicating hemp products as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33), that are produced, manufactured, or sold in accordance with P.L.2024, c.73 (C.24:6I-48.1 et al) and P.L. , c. (C. ) (pending before the Legislature as this bill).
"Manufacture" means the production, preparation, propagation, compounding, conversion, or processing of a controlled dangerous substance, either directly or by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container, except that this term does not include the preparation or compounding of a controlled dangerous substance by an individual for the individual's own use or the preparation, compounding, packaging, or labeling of a controlled dangerous substance: (1) by a practitioner as an incident to the practitioner's administering or dispensing of a controlled dangerous substance in the course of the practitioner's professional practice, or (2) by a practitioner, or under the practitioner's supervision, for the purpose of, or as an incident to, research, teaching, or chemical analysis and not for sale.
"Narcotic drug" means any of the following, whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis:
(1) Opium, coca leaves, and opiates;
(2) A compound, manufacture, salt, derivative, or preparation of opium, coca leaves, or opiates;
(3) A substance, and any compound, manufacture, salt, derivative, or preparation thereof, which is chemically identical with any of the substances referred to in (1) and (2) of this definition, except that the words "narcotic drug" as used in P.L.1970, c.226 (C.24:21-1 et seq.) shall not include decocainized coca leaves or extracts of coca leaves, which extracts do not contain cocaine or ecgonine.
"Official written order" means an order written on a form provided for that purpose by the Attorney General of the United States or his delegate, under any laws of the United States making provisions therefor, if such order forms are authorized and required by the federal law, and if no such form is provided, then on an official form provided for that purpose by the division. If authorized by the Attorney General of the United States or the division, the term shall also include an order transmitted by electronic means.
"Opiate" means any dangerous substance having an addiction-forming or addiction-sustaining liability similar to morphine or being capable of conversion into a drug having such addiction-forming or addiction-sustaining liability. It does not include, unless specifically designated as controlled under section 3 of P.L.1970, c.226 (C.24:21-1 et seq.), the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and its salts (dextromethorphan). It does include its racemic and levorotatory forms.
"Opium poppy" means the plant of the species Papaver somniferum L., except the seeds thereof.
"Person" means any corporation, association, partnership, trust, other institution or entity, or one or more individuals.
"Pharmacist" means a registered pharmacist of this State.
"Pharmacy owner" means the owner of a store or other place of business where controlled dangerous substances are compounded or dispensed by a registered pharmacist; but nothing in this chapter contained shall be construed as conferring on a person who is not registered or licensed as a pharmacist any authority, right, or privilege that is not granted to the person by the pharmacy laws of this State.
"Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing.
"Practitioner" means a physician, dentist, veterinarian, scientific investigator, laboratory, pharmacy, hospital, or other person licensed, registered, or otherwise permitted to distribute, dispense, conduct research with respect to, or administer a controlled dangerous substance in the course of professional practice or research in this State. As referred to in this definition: (1) "Physician" means a physician authorized by law to practice medicine in this or any other state.
(2) "Veterinarian" means a veterinarian authorized by law to practice veterinary medicine in this State.
(3) "Dentist" means a dentist authorized by law to practice dentistry in this State.
(4) "Hospital" means any federal institution, or any institution for the care and treatment of the sick and injured, operated or approved by the appropriate State department as proper to be entrusted with the custody and professional use of controlled dangerous substances.
(5) "Laboratory" means a laboratory to be entrusted with the custody of narcotic drugs and the use of controlled dangerous substances for scientific, experimental, and medical purposes and for purposes of instruction approved by the Department of Health.
"Production" includes the manufacture, planting, cultivation, growing, or harvesting of a controlled dangerous substance.
"Immediate precursor" means a substance which the division has found to be and by regulation designates as being the principal compound commonly used or produced primarily for use, and which is an immediate chemical intermediary used or likely to be used in the manufacture of a controlled dangerous substance, the control of which is necessary to prevent, curtail, or limit such manufacture.
"Substance use disorder involving drugs" means taking or using a drug or controlled dangerous substance, as defined in this chapter, in association with a state of psychic or physical dependence, or both, arising from the use of that drug or controlled dangerous substance on a continuous basis. A substance use disorder is characterized by behavioral and other responses, including, but not limited to, a strong compulsion to take the substance on a recurring basis in order to experience its psychic effects, or to avoid the discomfort of its absence.
"Ultimate user" means a person who lawfully possesses a controlled dangerous substance for the person's own use or for the use of a member of the person's household or for administration to an animal owned by the person or by a member of the person's household.
(cf: P.L.2021, c.16, s.43)
9. Section 5 of P.L.1970, c.226 (C.24:21-5) is amended to read as follows:
5. a. Tests. The director shall place a substance in Schedule I if he finds that the substance: (1) has high potential for abuse; and (2) has no accepted medical use in treatment in the United States; or lacks accepted safety for use in treatment under medical supervision.
b. The controlled dangerous substances listed in this section are included in Schedule I, subject to any revision and republishing by the director pursuant to subsection d. of section 3 of P.L.1970, c.226 (C.24:21-3), and except to the extent provided in any other schedule.
c. Any of the following opiates, including their isomers, esters, and ethers, unless specifically excepted, whenever the existence of such isomers, esters, ethers and salts is possible within the specific chemical designation:
(1) Acetylmethadol
(2) Allylprodine
(3) Alphacetylmethadol
(4) Alphameprodine
(5) Alphamethadol
(6) Benzethidine
(7) Betacetylmethadol
(8) Betameprodine
(9) Betamethadol
(10) Betaprodine
(11) Clonitazene
(12) Dextromoramide
(13) Dextrorphan
(14) Diampromide
(15) Diethylthiambutene
(16) Dimenoxadol
(17) Dimepheptanol
(18) Dimethylthiambutene
(19) Dioxaphetyl butyrate
(20) Dipipanone
(21) Ethylmethylthiambutene
(22) Etonitazene
(23) Etoxeridine
(24) Furethidine
(25) Hydroxypethidine
(26) Ketobemidone
(27) Levomoramide
(28) Levophenacylmorphan
(29) Morpheridine
(30) Noracymethadol
(31) Norlevorphanol
(32) Normethadone
(33) Norpipanone
(34) Phenadoxone
(35) Phenampromide
(36) Phenomorphan
(37) Phenoperidine
(38) Piritramide
(39) Proheptazine
(40) Properidine
(41) Racemoramide
(42) Trimeperidine.
d. Any of the following narcotic substances, their salts, isomers and salts of isomers, unless specifically excepted, whenever the existence of such salts, isomers and salts of isomers is possible within the specific chemical designation:
(1) Acetorphine
(2) Acetylcodone
(3) Acetyldihydrocodeine
(4) Benzylmorphine
(5) Codeine methylbromide
(6) Codeine-N-Oxide
(7) Cyprenorphine
(8) Desomorphine
(9) Dihydromorphine
(10) Etorphine
(11) Heroin
(12) Hydromorphinol
(13) Methyldesorphine
(14) Methylhydromorphine
(15) Morphine methylbromide
(16) Morphine methylsulfonate
(17) Morphine-N-Oxide
(18) Myrophine
(19) Nicocodeine
(20) Nicomorphine
(21) Normorphine
(22) Phoclodine
(23) Thebacon.
e. Any material, compound, mixture or preparation which contains any quantity of the following hallucinogenic substances, their salts, isomers and salts of isomers, unless specifically excepted, whenever the existence of such salts, isomers, and salts of isomers is possible within the specific chemical designation:
(1) 3,4-methylenedioxy amphetamine
(2) 5-methoxy-3,4-methylenedioxy amphetamine
(3) 3,4,5-trimethoxy amphetamine
(4) Bufotenine
(5) Diethyltryptamine
(6) Dimethyltryptamine
(7) 4-methyl-2,5-dimethoxylamphetamine
(8) Ibogaine
(9) Lysergic acid diethylamide
(10) Marijuana; except that on and after the effective date of the "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (C.24:6I-31 et al.), marijuana shall no longer be included in Schedule I and shall not be designated or rescheduled and included in any other schedule by the director pursuant to the director's designation and rescheduling authority set forth in section 3 of P.L.1970, c.226 (C.24:21-3).
(11) Mescaline
(12) Peyote
(13) N-ethyl-3-piperidyl benzilate
(14) N-methyl-3-piperidyl benzilate
(15) Psilocybin
(16) Psilocyn
(17) Tetrahydrocannabinols, including those produced by way of manufacture, except when found in hemp or a hemp product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.), or cannabis or a cannabis item, as those terms are defined in section 3 of P.L.2021, c.16 (C.24:6I-33), that is grown, cultivated, produced, manufactured, or sold in accordance with the "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (C.24:6I-31 et al.), or an intoxicating hemp product as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33), that is produced, manufactured, or sold in accordance with P.L.2024, c.73 (C.24:6I-48.1) and P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: P.L.2024, c.73, s.3)
10. Section 40 of P.L.2021, c.16 (C.40:48I-1) is amended to read as follows:
40. Optional Local Cannabis and Intoxicating Hemp Product Transfer Tax and User Tax.
a. (1) A municipality may adopt an ordinance imposing a transfer tax on the sale of cannabis [or], cannabis items, or intoxicating hemp products by a [cannabis] licensed establishment or a holder of a plenary wholesale license or plenary retail distribution license selling an intoxicating hemp beverage in accordance with section 5 of P.L.2024, c.73 (C.24:6I-48.2) that is located in the municipality. At the discretion of the municipality, the tax may be imposed on: receipts from the sale of cannabis by a cannabis cultivator to another cannabis cultivator; receipts from the sale of cannabis items or intoxicating hemp products from one [cannabis] licensed establishment to another [cannabis] licensed establishment; receipts from the retail sales of cannabis items, intoxicating hemp products, or intoxicating hemp beverages by a cannabis retailer, intoxicating hemp product licensee, or a holder of a plenary wholesale license or plenary retail distribution license to retail consumers who are 21 years of age or older; or any combination thereof. Each municipality shall set its own rate or rates, but in no case shall a rate exceed: two percent of the receipts from each sale by a cannabis cultivator; two percent of the receipts from each sale by a cannabis or intoxicating hemp product manufacturer; one percent of the receipts from each sale by a cannabis or intoxicating hemp product wholesaler; and two percent of the receipts from each sale by a cannabis or intoxicating hemp product retailer or holder of a plenary wholesale license or plenary retail distribution license.
(2) A local tax ordinance adopted pursuant to paragraph (1) of this subsection shall also include provisions for imposing a user tax, at the equivalent transfer tax rates, on any concurrent license holder, as permitted by section 33 of P.L.2021, c.16 (C.24:6I-46), operating more than one [cannabis] licensed establishment, or on any concurrent holder of plenary wholesale licenses or plenary retail distribution licenses. The user tax shall be imposed on the value of each transfer or use of cannabis [or], cannabis items, or intoxicating hemp products not otherwise subject to the transfer tax imposed pursuant to paragraph (1) of this subsection, from the license holder's establishment that is located in the municipality to any of the other license holder's establishments, whether located in the municipality or another municipality.
b. (1) A transfer tax or user tax imposed pursuant to this section shall be in addition to any other tax imposed by law. Any transaction for which the transfer tax or user tax is imposed, or could be imposed, pursuant to this section, other than those which generate receipts from the retail sales by cannabis retailers, intoxicating hemp product licensees, or a holder of a plenary wholesale license or plenary retail distribution license, shall be exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). The transfer tax or user tax shall be collected or paid, and remitted to the municipality by the [cannabis] licensed establishment or the holder of the plenary wholesale license or plenary retail distributor license from the [cannabis] licensed establishment, plenary wholesale license holder, or plenary retail distributor purchasing or receiving the cannabis [or] , cannabis item, or intoxicating hemp product, or from the consumer at the point of sale, on behalf of the municipality by the cannabis retailer, plenary wholesale license holder, intoxicating hemp product licensee, or plenary retail distributor selling the cannabis, cannabis item, or intoxicating hemp product to that consumer. The transfer tax or user tax shall be stated, charged, and shown separately on any sales slip, invoice, receipt, or other statement or memorandum of the price paid or payable, or equivalent value of the transfer, for the cannabis [or], cannabis item, or intoxicating hemp product.
(2) Every [cannabis] licensed establishment, plenary wholesale license holder, or plenary retail distributor required to collect a transfer tax or user tax imposed by ordinance pursuant to this section shall be personally liable for the transfer tax or user tax imposed, collected, or required to be collected under this section. Any [cannabis] licensed establishment, plenary wholesale license holder, or plenary retail distributor shall have the same right with respect to collecting the transfer tax or user tax from another [cannabis] licensed establishment, plenary retail distributor, plenary whole license holder, or the consumer as if the transfer tax or user tax was a part of the sale and payable at the same time, or with respect to non-payment of the transfer tax or user tax by the [cannabis] licensed establishment, plenary retail distributor, plenary whole license holder, or consumer, as if the transfer tax or user tax was a part of the purchase price of the cannabis [or] , cannabis item, or intoxicating hemp product, or equivalent value of the transfer of the cannabis [or] , cannabis item, or intoxicating hemp product, and payable at the same time, provided, however, that the chief fiscal officer of the municipality which imposes the transfer tax or user tax shall be joined as a party in any action or proceeding brought to collect the transfer tax or user tax.
(3) No [cannabis] licensed establishment, plenary wholesale license holder, or plenary retail distributor required to collect a transfer tax or user tax imposed by ordinance pursuant to this section shall advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the transfer tax or user tax will not be separately charged and stated to another [cannabis] licensed establishment, plenary retail distributor, plenary whole license holder, or the consumer, or that the transfer tax or user tax will be refunded to the [cannabis] licensed establishment, plenary retail distributor, plenary whole license holder, or the consumer.
c. (1) All revenues collected from a transfer tax or user tax imposed by ordinance pursuant to this section shall be remitted to the chief financial officer of the municipality in a manner prescribed by the municipality. The chief financial officer shall collect and administer any transfer tax or user tax imposed by ordinance pursuant to this section. The municipality shall enforce the payment of delinquent taxes or transfer fees imposed by ordinance pursuant to this section in the same manner as provided for municipal real property taxes.
(2) (a) In the event that the transfer tax or user tax imposed by ordinance pursuant to this section is not paid as and when due by a [cannabis] licensed establishment, plenary wholesale license holder, or plenary retail distributor, the unpaid balance, and any interest accruing thereon, shall be a lien on the parcel of real property comprising the [cannabis] licensed establishment's, plenary wholesale license holder's, or plenary retail distributor's premises in the same manner as all other unpaid municipal taxes, fees, or other charges. The lien shall be superior and paramount to the interest in the parcel of any owner, lessee, tenant, mortgagee, or other person, except the lien of municipal taxes, and shall be on a parity with and deemed equal to the municipal lien on the parcel for unpaid property taxes due and owing in the same year.
(b) A municipality shall file in the office of its tax collector a statement showing the amount and due date of the unpaid balance and identifying the lot and block number of the parcel of real property that comprises the delinquent [cannabis] licensed establishment's, plenary wholesale license holder's, or plenary retail distributor's premises. The lien shall be enforced as a municipal lien in the same manner as all other municipal liens are enforced.
d. As used in this section:
"Cannabis" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Cannabis cultivator" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
["Cannabis establishment" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).]
"Cannabis items" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Cannabis manufacturer" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Cannabis retailer" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Cannabis wholesaler" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Consumer" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Licensed establishment" means the holder of a license issued by the Cannabis Regulatory Commission pursuant to P.L.2021, c.16 (C.24:6I-31 et al.), P.L.2024, c.73 (C.24:6I-48.1 et al.), or P.L. , c. (C. ) (pending before the Legislature as this bill).
"Premises" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
(cf: P.L.2024, c.73, s.9)
11. (New section) Nothing in P.L.2024, c.73 (C.24:6I-48.1 et al.) or P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to prohibit the transportation or shipment of hemp or hemp products in this State as authorized pursuant to subtitle G of the Agricultural Marketing Act of 1946, in accordance with 7 U.S.C. s.1639o et seq.
12. (New section) Criminal history background checks on applicants for intoxicating hemp product licensure or approval.
a. The commission shall be authorized to require any person who applies for licensure or approval by the commission pursuant to P.L.2024, c.73 (C.24:6I-48.1) and P.L. , c. (C. ) (pending before the Legislature as this bill) to conduct activities related to the manufacture, distribution, or sale of intoxicating hemp products and who is involved in the intoxicating hemp product licensee's operation, including any owner, director, officer, or employee, to undergo a criminal history background check.
b. Pursuant to subsection a. of this section, the commission is authorized to exchange fingerprint data with and receive criminal history record background information from the Division of State Police and Federal Bureau of Investigation consistent with the provisions of applicable State and federal laws, rules, and regulations. The Division of State Police shall forward criminal history record background information to the commission in a timely manner when requested pursuant to this section.
c. (1) Each person required by the commission to undergo a criminal history record background check shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations.
(2) (a) No check of criminal history record background information shall be performed pursuant to this section unless a person has furnished his written consent to such check.
(b) Any person who refuses to consent to, or cooperate in, the securing of a check of criminal history record background information shall not be considered for licensure to conduct activities related to the manufacture, distribution, or sale of intoxicating hemp products.
(c) Each person shall bear the cost for the criminal history record background check, including all costs of administering and processing the check.
d. (1) (a) With respect to determining whether any conviction of a person contained in the criminal history record background check should disqualify an applicant for licensure or approval to conduct activities related to the manufacture, distribution, or sale of intoxicating hemp products, the commission shall not take into consideration any conviction for a crime or offense that occurred prior to the effective date of P.L.2021, c.16 (C.24:6I-31 et al.) involving a controlled dangerous substance or controlled substance analog as set forth in paragraph (11) or (12) of subsection b., or subparagraph (b) of paragraph (10) of subsection b. of N.J.S.2C:35-5, or paragraph (3) or (4) of subsection a. of N.J.S.2C:35-10, or any similar indictable offense under federal law, this State's law, or any other state's law, or for any conviction under federal law for conduct involving cannabis or a cannabis item that is authorized by P.L.2021, c.16 (C.24:6I-31 et al.).
(b) Additionally, the commission shall not take into consideration any other prior conviction, unless that conviction is for an indictable offense under federal law, other than a conviction for conduct involving cannabis or a cannabis item that is authorized by P.L.2021, c.16 (C.24:6I-31 et al.), or under this State's law, or any other state's law, that is substantially related to the qualifications, functions, or duties for which the license is required, and not more than five years have passed since the date of that conviction, satisfactory completion of probation or parole, or release from incarceration, whichever is later.
(c) In determining which indictable offenses are substantially related to the qualifications, functions, or duties for which the license or approval is required, the commission shall at least consider any conviction involving fraud, deceit, or embezzlement, and any conviction for N.J.S.2C:35-6, employing a minor in a drug distribution scheme, or similar indictable offense in this or another jurisdiction involving the use of a minor to dispense or distribute a controlled dangerous substance or controlled substance analog.
(2) The commission may approve an applicant for licensure or approval to conduct activities related to the manufacture, distribution, or sale of intoxicating hemp products after conducting a thorough review of any previous conviction of a person that substantially related to the qualifications, functions, or duties for which the license or approval is required that is contained in the criminal history record background information, and this review shall include examining the nature of the indictable offense, the circumstances at the time of committing the offense, and evidence of rehabilitation since conviction. If the commission determines that the reviewed conviction should not disqualify the applicant, the applicant may be licensed or approved so long as the applicant is otherwise qualified to be issued the license.
e. (1) Upon receipt and review of the criminal history record background information from the Division of State Police and the Federal Bureau of Investigation, the commission shall provide written notification to the applicant of the qualification or disqualification for licensure or approval to conduct activities related to the manufacture, distribution, or sale of intoxicating hemp products.
(2) If the applicant is disqualified because the commission determined that a person has a disqualifying conviction pursuant to the provisions of this section, the conviction that constitutes the basis for the disqualification shall be identified in the written notice.
f. The Division of State Police shall promptly notify the commission in the event that an individual who was the subject of a criminal history record background check conducted pursuant to this section is convicted of a crime or offense in this State after the date the background check was performed. Upon receipt of that notification, the commission shall make a determination regarding the continued eligibility for the applicant, or following application, for the licensee or approved person or entity, to hold a license or approval to conduct activities related to the manufacture, distribution, or sale of intoxicating hemp products.
13. (New section) a. The receipts from the retail sale of intoxicating hemp products, including intoxicating hemp beverages, as defined in section 3 of P.L.2021, c.16 (C.24:6I-33), shall be subject to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
b. During the fiscal year next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and each year thereafter, an amount equivalent to all revenues derived from the collection of the tax imposed on intoxicating hemp products pursuant to this section shall be deposited, as follows:
(1) 50 percent of the amount equivalent to the sum of all revenue generated from such tax shall be deposited into the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund," established pursuant to Section 41 of P.L.2021, c.16 (C.24:6I-50); and
(2) 50 percent of the amount equivalent to the sum of all revenue generated from such tax shall be deposited into a special nonlapsing account in the State General Fund.
14. (New section) Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill)
a. shall require an employer to amend or repeal, or affect, restrict, or preempt, the rights and obligations of employers to maintain a drug- and alcohol-free workplace or require an employer to permit or accommodate the use, consumption, being under the influence, possession, transfer, display, transportation, or sale of intoxicating hemp products, including intoxicating hemp beverages in the workplace, or to affect the ability of the employers to have policies prohibiting the use of intoxicating hemp products or intoxication by employees during work hours;
b. is intended to allow driving under the influence of intoxicating hemp products or driving while impaired by intoxicating hemp products or to supersede laws related to driving under the influence of intoxicating hemp products or driving while impaired by intoxicating hemp products; or
c. is intended to permit the transfer of intoxicating hemp products, with or without remuneration, to a person under 21 years of age or to allow a person under 21 years of age to purchase, possess, use, transport, or consume intoxicating hemp products; provided, however, a person who is under 21 years of age, but at least 18 years of age, and an employee of an intoxicating hemp product manufacturer or distributor, or delivery service acting in the person's employment capacity may possess or transport intoxicating hemp products.
15. (New section) An intoxicating hemp beverage manufacturer that produces less than 50,000 barrels of 31 fluid gallons capacity per year may distribute its product through a person or entity licensed by the Cannabis Regulatory Commission in accordance with P.L.2024, c.73 (C.24:6I-48.1 et al.) and P.L. , c. (C. ) (pending before the Legislature as this bill) or approved by the commission to distribute or sell intoxicating hemp beverages in accordance with section 5 of P.L.2024, c.73 (C.24:6I-48.2), and shall not be required to distribute its product through the holder of a wholesale license.
16. (New section) a. (1) The sale or transfer of any intoxicating hemp product, other than an intoxicating hemp beverage, from a manufacturer of any intoxicating hemp product to a licensed retailer or upon any delivery of any intoxicating hemp product, other than an intoxicating hemp beverage, made within or into this State shall be subject to an excise fee in the amount of $30 per ounce of intoxicating hemp product sold or transferred, and any fractional portion of an ounce sold or transferred. Any intoxicating hemp product delivered into this State as an ingestible, edible, or oil, whether in solid, liquid, or concentrate form, shall be subject to this fee based on the intoxicating total THC concentration of such ingestible, edible, oil, or beverage based on its equivalency to one ounce of intoxicating hemp product as determined by the commission.
(2) The revenue generated from the fees imposed in accordance with this subsection shall be set aside for social equity programs including, but not limited to, legal services, apprenticeships, financial assistance, and workforce development, and shall be maintained in the same manner as the Social Equity Excise Fee established pursuant to section 39 of P.L.2021, c.16 (C:54:47F-1).
(3) The importation into this State of an intoxicating hemp product which is not intended for sale or delivery herein and which passes through this State in continuous transportation and is delivered to a point outside of this State shall be exempt from the tax imposed by this subsection.
b. (1) There is hereby levied and imposed an excise tax in the amount of $5.50 per gallon upon the sale of any intoxicating hemp beverage made within this State or upon any delivery of intoxicating hemp beverages made within or into this State.
(2) The revenue generated from the fees imposed in accordance with this subsection shall be set aside for social equity programs including, but not limited to, legal services, apprenticeships, financial assistance, and workforce development, and shall be maintained in the same manner as the Social Equity Excise Fee established pursuant to section 39 of P.L.2021, c.16 (C:54:47F-1).
(3) The importation into this State of an intoxicating hemp beverage which is not intended for sale or delivery herein and which passes through this State in continuous transportation and is delivered to a point outside of this State shall be exempt from the tax imposed by this subsection.
17. Section 12 of P.L.2024, c.73 is amended to read as follows:
12. This act shall take effect as follows:
a. Paragraph (2) of subsection b. of section 4 shall take effect immediately;
b. Subsection a. of section 4 and paragraph (1) of subsection a. of section 5 shall take effect 120 days after the Cannabis Regulatory Commission adopts rules and regulations pursuant to P.L.2024, c.73 (C.24:6I-48.1 et al.) and P.L. , c. (C. ) (pending before the Legislature as this bill);
[b.] c. The remainder of this act shall take effect 30 days after enactment, except that the Cannabis Regulatory Commission may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
18. This act shall take effect as follows:
a. Sections 1 through 15 shall take effect immediately but shall remain inoperative until 30 days after enactment, but the Cannabis Regulatory Commission and the Division of Alcoholic Beverage Control may take such anticipatory action as is necessary to effectuate the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill);
b. Section 16 shall take effect immediately and the excise fees imposed pursuant to section 16 of this act shall apply to sales and transfers made on or after October 1, 2025 of intoxicating hemp products, including intoxicating hemp beverages; and
c. Section 17 shall take effect in accordance with the provisions of that section.
STATEMENT
This bill makes various updates to P.L.2024, c.73 (Intoxicating Hemp Act) related to intoxicating hemp products sold in New Jersey.
Several provisions in this bill address issues raised in the October 2024 holding by the U.S. District Court for the District of New Jersey in Loki Brands, LLC et al. v. Matthew Platkin et al., which held that provisions of P.L.2024, c.73, which regulates the production and sale of intoxicating hemp products, violate the Dormant Commerce Clause of the United States Constitution and are federally preempted. The court held that the enactment is thus unenforceable due to the variable treatment of out-of-state hemp producers and sellers versus in-State hemp producers and sellers.
Definitions
This bill amends various definitions in the "New Jersey Hemp Farming Act," P.L.2019, c.238 and the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (CREAMMA).
Specifically, the bill updates the New Jersey Hemp Farming Act to add the definition of "non-intoxicating total THC concentration" and "THC." Further, the bill clarifies in the New Jersey Hemp Farming Act, that "hemp product" does not mean: (1) a product that contains artificially or synthetically produced cannabinoids of any kind; (2) a cannabinoid produced using chemical synthesis, chemical modification, chemical conversion process, isomerization, or any other synthesis methodology as may be identified by the Cannabis Regulatory Commission (commission); or (3) an intoxicating hemp product.
This bill also makes changes to the definitions in CREAMMA. Specifically, the bill clarifies that "intoxicating hemp product" is separate and distinct from a "cannabis item." Moreover, the bill adds the definition of "intoxicating hemp product establishment" and "intoxicating total THC concentration" to CREAMMA.
The bill clarifies that a "license" and "licensee" also include a license issued by the commission or a license holder holding a valid license pursuant to the Intoxicating Hemp Act.
The bill clarifies that under N.J.S.A.24:21-2, "drugs," "hashish," and "marijuana" do not include intoxicating hemp products, as that term is defined in the Intoxicating Hemp Act, that are produced, manufactured, or sold in accordance with the Intoxicating Hemp Act.
Relatedly, the bill amends N.J.S.A.2C:35-2, the definitions section of the "Comprehensive Drug Reform Act of 1987," P.L.1987, c.106, to clarify that terms "drugs," "hashish," and "marijuana" also do not include intoxicating hemp products, as that term is defined in the Intoxicating Hemp Act, that are produced, manufactured, or sold in accordance with the Intoxicating Hemp Act.
The bill also amends N.J.S.A.40:48I-1 to apply to licensed establishments, and removes reference to cannabis establishments. The bill defines "licensed establishment" as the holder of a license issued by the commission pursuant to CREAMMA or the Intoxicating Hemp Act.
Licensing Intoxicating Hemp Product Establishments
In addition to the licensing rules under the Intoxicating Hemp Act, this bill permits the commission to promulgate rules and regulations that: (1) establish a new license type related to intoxicating hemp products; (2) ensure that the intoxicating hemp product market in New Jersey is safe and effective; (3) streamline the application process for any person currently licensed under CREAMMA; and (4) permit out-of-state hemp entities to apply for licensure in this State, provided that standards for licensure in the out-of-state applicant's home state are substantially similar to those of New Jersey.
The bill provides that any holder of a plenary wholesale or plenary retail distribution license issued by the Division of Alcoholic Beverage Control (ABC) that currently sells intoxicating hemp beverages may continue to do so until the Cannabis Regulatory Commission adopts rules and regulations related to such products. The bill further provides that such ABC licensees must be approved by the commission in accordance with the Intoxicating Hemp Act and this bill within 120 days of the adoption of the rules and regulations in order to continue to sell intoxicating hemp beverages.
Prohibitions
The bill also prohibits a retailer of an intoxicating hemp product, including an intoxicating hemp beverage, from dispensing or offering for sale a product from a vending machine. Moreover, the bill prohibits direct to consumer sales, including online sales, of intoxicating hemp products. Sales of such products are required to be conducted at the physical location of the licensed premises.
Further, the bill prohibits selling or distributing products or samples of products in public spaces, such as sidewalks, public streets, or parks.
The bill prohibits the knowing sale of an intoxicating hemp product that is not accompanied by a certificate of analysis issued within the previous six-month period by a laboratory in compliance with testing standards as established by the commission.
Finally, the bill prohibits the holder of any valid and unrevoked plenary wholesale license or plenary distribution license from selling or distributing any product besides intoxicating hemp beverages. Any employees of such licensees are also required to participate in the education program developed and implemented by the Cannabis Regulatory Commission.
Federal Law
The bill provides that nothing in this bill, nor the Intoxicating Hemp Act, prohibit the transportation or shipment of hemp or hemp products through the State which is authorized by subtitle G of the Agricultural Marketing Act of 1945, in accordance with 7 U.S.C. s.1639o et seq.
Taxes and Excise Fee
The bill subjects the sale of intoxicating hemp products to the Sales and Use Tax in the State. The bill directs that tax revenue will be split evenly:
(1) 50 percent of the all revenue generated from such tax is deposited into the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund," established under N.J.S.A.24:6I-50; and
(2) 50 percent of the revenue generated from such tax is deposited into a special nonlapsing account in the State General Fund.
The bill, based upon the definitional changes to the New Jersey Hemp Farming Act and CREAMMA, amends N.J.S.A.40:48I-1 to clarify that a municipality may adopt an ordinance imposing a transfer tax on the sale of cannabis, cannabis items, or intoxicating hemp products.
The bill imposes a $30 excise fee on the transfer of intoxicating hemp products, not including intoxicating hemp beverages, from a manufacturer to a retailer of such products.
The bill imposes an excise tax in the amount of $5.50 per gallon on the sale of intoxicating hemp beverages. Such tax is levied and imposed on the sale of any intoxicating hemp beverage made within this State or upon any delivery of intoxicating hemp beverages made within or into this State.
The per-gallon tax and $30
excise fee imposed on intoxicating hemp products is intended to fund social
equity programs.
Background Checks
The bill permits the commission to require any person who seeks a license under the Intoxicating Hemp Act to undergo a background check. This includes any person involved in the intoxicating hemp product establishment's operations, including any owner, director, officer, or employee.
Prior to conducting a criminal history background check, an individual must consent to such check being conducted. If a person refuses to consent to, or cooperate in, the securing of a background check, the commission is prohibited from considering such person for licensure to conduct activities related to the manufacture, distribution, or sale of intoxicating hemp products.
The commission is prohibited from disqualifying an applicant for licensure based on certain past convictions, including for those cannabis-related or controlled dangerous substance offenses set forth under CREAMMA. However, convictions for indictable offenses involving fraud, deceit, or embezzlement, or the use of minors in a drug scheme may be deemed to be disqualifying, if the offense occurred within the last five years.
The commission is required to provide written notification to an applicant if the licensure to conduct intoxicating hemp activities is denied. If the denial is based on a prior conviction, the commission is required to provide written notification to the applicant indicating the conviction.
The bill requires the Division of State Police to notify the commission if any person who was subject to a criminal history background check commits an offense subsequent to the time that the background check for application for licensure was completed.
Employer Rights
The bill clarifies that nothing in the bill:
(1) requires an employer to amend or repeal, or affect, restrict, or preempt, the rights and obligations of employers to maintain a drug- and alcohol-free workplace or require an employer to permit or accommodate the use, consumption, being under the influence, possession, transfer, display, transportation, or sale of intoxicating hemp products, including intoxicating hemp beverages in the workplace, or to affect the ability of the employers to have policies prohibiting the use of intoxicating hemp products or intoxication by employees during work hours.
(2) is intended to allow driving under the influence of intoxicating hemp products, or driving while impaired by intoxicating hemp products or to supersede laws related to driving under the influence of intoxicating hemp products or driving while impaired by intoxicating hemp products; or
(3) is intended to permit the transfer of intoxicating hemp products, with or without remuneration, to a person under 21 years of age or to allow a person under 21 years of age to purchase, possess, use, transport, or consume intoxicating hemp products; provided, however, that a person who is under 21 years of age, but at least 18 years of age, and an employee of intoxicating hemp product manufacturer or distributor, or delivery service acting in the person's employment capacity, may possess or transport intoxicating hemp products.
Effective Date
This bill amends the Intoxicating Hemp Act effective date to delay certain provisions of the Intoxicating Hemp Act to not take effect until 120 days after the commission adopts rules and regulations pursuant to the Intoxicating Hemp Act and this bill.