Permits Department of Agriculture to regulate sale and distribution of hemp-derived consumable products under certain circumstances.

# Summary of New Jersey Hemp-Derived Consumable Products Legislation This New Jersey bill (P.L. 2024, c.73) establishes a comprehensive regulatory framework for hemp-derived consumable products, replacing previous legislation on intoxicating hemp products. ## Key Provisions **Licensing:** - Requires businesses to obtain a license from the Department of Agriculture - Existing alcohol beverage license holders (10 specific types including plenary retail consumption, brewery, winery, and wholesale licenses) can sell hemp products by paying an annual fee and maintaining registration with the New Jersey Division of Alcoholic Beverage Control (ABC) - Prohibits businesses from operating within 1,000 feet of schools or playgrounds (with exceptions for existing businesses) **Regulatory Requirements:** - Mandates product testing for compliance with THC limits (max 0.3% delta-9 THC on dry weight basis) - Requires child-resistant packaging meeting 16 C.F.R. standards - Establishes labeling requirements including ingredient lists, allergen warnings, THC content, and expiration dates - Limits product formats: non-liquid ingestibles max 25mg per serving, liquid ingestibles max 10mg per serving, inhalables max 3ml per container **Sales Restrictions:** - Prohibits sales to anyone under 21 - Bans distribution of samples in public spaces - Requires products to be behind physical counter/barrier - Prohibits sale of products without proper certification **Penalties:** - Civil penalties up to $2,000 for violations (increasing for repeat offenses) - License suspension/revocation for serious violations - Criminal penalties for repeat violations (disorderly persons offense for second violation, 4th degree crime for third+) - $3,000 payment-in-lieu of license revocation for some violations - $8,000 payment-in-lieu of license suspension/revocation for others **Taxes:** - 6% retail sales tax (1% designated for social equity programs) - Revenue split 50/50 between Department of Treasury and Department of Agriculture - Municipalities may impose up to 2% local excise tax **Exemptions:** - "Safe harbor" products (manufactured for export but not sale within NJ) and facilities - School policy requiring bans on product use in school buildings, facilities, and on school transportation (with exception for supervised instructional activities) The bill repeals previous sections related to intoxicating hemp products and establishes a regulatory framework that balances consumer safety with industry regulation.