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

# New Jersey Hemp-Derived Consumable Products Regulation: Summary This bill establishes a comprehensive regulatory framework for hemp-derived consumable products (including hemp-derived beverages) in New Jersey, administered primarily by the Department of Agriculture with some provisions for the New Jersey Division of Alcoholic Beverage Control (ABC). ## Key Provisions ### Licensing Requirements - Businesses must obtain a license from the Department of Agriculture before operating - Existing ABC license holders (10 types including plenary retail consumption, brewery, winery, and wholesale licenses) can sell hemp products by paying an annual fee and maintaining ABC registration - All licensees must undergo inspections, product sampling, and background checks ### Sales Restrictions - Prohibits sales to anyone under 21 years of age - Bans distributing samples in public spaces (streets, sidewalks, parks) - Requires products to be behind a physical counter or barrier (except for licensed hemp-derived beverages) - Limits THC concentration to 0.3% on dry weight basis - Requires proper packaging (exit package) with specific labeling requirements ### Testing & Safety Requirements - Manufacturers must test products before distribution - Distributors must test if they open packages or receive products not in exit packaging - Requires child-resistant packaging - Mandates specific labeling including: - Ingredient list and allergen information - Warnings about pregnancy/breastfeeding - Statements about impaired driving - THC content per serving and total package - Expiration date ### Penalties & Enforcement - Civil penalties for violations (increasing for repeat offenses) - License suspension/revocation for serious violations - Criminal penalties for repeat offenses: - Second violation: disorderly persons offense ($1,000 fine, up to 6 months imprisonment) - Third violation: fourth degree crime ($10,000 fine, up to 18 months imprisonment) - Allows payment-in-lieu of license suspension/revocation ($3,000 for first violation, $8,000 for manufacturing/distribution violations) ### Taxation - 6% tax on retail sales (1% designated for social equity programs) - Revenue split equally between Department of Treasury and Department of Agriculture - Municipalities may impose up to 2% local excise tax ### Additional Provisions - Prohibits sales within 1,000 feet of schools or playgrounds (with exceptions for existing businesses) - Requires schools to adopt policies banning use in school buildings, facilities, and on transportation - Establishes "safe harbor" provisions for products intended for export only - Explicitly states the bill doesn't permit: - Operating vehicles while impaired - Require employers to accommodate workplace use - Legalize controlled substances ### Repeals - Repeals previous legislation (P.L.2024, c.73) related to intoxicating hemp products This bill represents a significant regulatory framework for hemp-derived products, balancing consumer safety with business opportunities while maintaining strict enforcement of age restrictions and product safety standards.