Gov. Murphy Signs Bill Limiting Hemp Product Sales in New Jersey

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New Jersey businesses are now temporarily barred from selling hemp products without a cannabis license, following the signing of a controversial bill by Governor Phil Murphy on Thursday. This legislative move aims to close loopholes that have allowed unregulated hemp products to be sold widely, including to minors, often in local corner stores and gas stations.

The new law places hemp products, which are federally legal, under the regulatory oversight of the New Jersey Cannabis Regulatory Commission (CRC). This agency already governs the state's recreational and medicinal marijuana markets. The bill's passage comes after increasing concerns over intoxicating hemp products, particularly those containing Delta-8 THC, being easily accessible to children.

In his signing statement, Governor Murphy acknowledged the bill's flaws but emphasized the urgency of the situation. "Unlike many issues, the status quo poses an immediate risk to health and safety, as these unregulated intoxicating hemp products are widely available to minors," Murphy stated. He also noted that despite holding discussions with both supporters and critics of the bill, it was "very unlikely that revisions to the bill would have the broad support necessary to move through the Legislature quickly."

The legislation addresses the sale of hemp products with any detectable amount of THC, making it illegal to sell them to individuals under 21 years of age. Within the next 30 days, businesses must remove all hemp products from their shelves until the CRC establishes new sales regulations.

The bill's language has sparked confusion, particularly concerning the definition of a "hemp product" and whether it applies to products made outside New Jersey. Murphy pointed out that this could either create a significant loophole or violate constitutional commerce laws.

Despite the concerns, supporters of the bill, including Todd Johnson, Executive Director of the New Jersey Cannabis Trade Association, praised its signing. "Licensed cannabis businesses in New Jersey have responsibly overseen the legal marketplace since its inception. We applaud the Legislature for extending these rigorous standards to hemp-derived products," Johnson said.

However, critics are wary of the CRC's ability to efficiently implement the new regulations. Beau Huch, a lobbyist for hemp beverage companies, criticized the law as "excessive" and "unworkable," arguing that it fails to provide tangible benefits to the cannabis industry. He expressed disappointment that lawmakers missed an opportunity to use hemp tax revenue to support cannabis programs.

Scott Rudder, President of the New Jersey CannaBusiness Association, supported the bill's intent but shared the governor's hesitations. He expressed concerns about allowing liquor stores to sell hemp beverages under less stringent regulations than cannabis shops, potentially leading to serious consequences.

The law's impact will be felt across New Jersey, where two-thirds of municipalities have banned cannabis businesses. It remains uncertain whether these towns will permit the sale of intoxicating hemp products under the new law.