New Jersey Governor Sparks Outrage with New Law Cracking Down on Hemp and CBD Product Sales

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New Jersey Governor Phil Murphy signed into law a controversial bill on Thursday that imposes strict regulations on the sale of hemp-derived cannabinoid products, such as CBD and Delta-8 THC. The new law, which has already generated significant debate, aims to address concerns over the availability of these products to minors and their potential health risks.

Governor Murphy acknowledged the bill’s imperfections but stressed the urgency of addressing the unregulated sale of intoxicating hemp products, particularly those easily accessible to minors. “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 said in a signing statement. He added that despite the bill’s flaws, delaying its implementation could prolong the dangers posed by these products.

Under the new law, businesses in New Jersey are temporarily banned from selling hemp products without obtaining a cannabis license. The legislation places hemp products, which are federally legal, under the authority of the New Jersey Cannabis Regulatory Commission (CRC). This agency, which oversees the state’s recreational and medicinal marijuana markets, will now regulate hemp-derived products, imposing new rules that could take months to finalize.

The decision to regulate hemp products more stringently has drawn mixed reactions from the cannabis and hemp industries. Scott Rudder, president of the New Jersey CannaBusiness Association, supports the law’s intent but expressed concerns about its implementation. He noted the potential risks of allowing liquor stores to sell hemp beverages without adhering to the rigorous standards required for cannabis sales. “Allowing liquor stores to sell these products could have serious consequences if not done right. We have a vigorous regulatory process for a reason,” Rudder stated.

One of the bill's key provisions makes it illegal to sell any product containing detectable amounts of THC to anyone under 21 years of age. Businesses have 30 days to remove non-compliant hemp products from their shelves until the CRC establishes new guidelines for sales. This provision has particularly alarmed small businesses that rely on the sale of CBD and other hemp products, as they now face uncertainty over when—or if—they will be able to resume sales.

Beau Huch, a lobbyist representing hemp beverage companies, criticized the law as being excessive and unworkable. He argued that while limiting minors' access to these products is essential, the law fails to support the broader cannabis industry in New Jersey. “Instead, this new law is excessive, at times unworkable, and fails to provide any real benefit to the cannabis industry. There are no winners here,” Huch said.

The bill's passage follows years of concerns about legal loopholes that have allowed minors to purchase high-THC hemp products from gas stations and corner stores. These products, although derived from hemp, can have psychoactive effects similar to those of marijuana, leading to increased calls for stricter regulation.

Todd Johnson, executive director of the New Jersey Cannabis Trade Association, applauded the law’s signing, emphasizing the need for consumer protection. “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, ensuring the same consumer protection,” Johnson said.

However, the path forward remains uncertain as businesses await the CRC's new regulations. The commission, known for its slow-moving processes, has yet to comment on how quickly it will implement the required rules. In the meantime, New Jersey's hemp and cannabis industries are left grappling with the implications of this sweeping new legislation.