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New Bill Will Change Hemp Sales to Be Regulated Like Cannabis in NJ

by Hoboken Girl Team
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A bill recently signed by New Jersey Governor Phil Murphy will see intoxicating hemp-based products placed under the same regulatory controls as cannabis or alcohol products. The sale of intoxicating hemp-based products is now prohibited to customers under the age of 21. Even as Governor Murphy conceded some of the bill’s flaws, the danger of underage consumers accessing these products outweighed any concerns. Read on for more about the latest in New Jersey’s cannabis culture wars.

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What This Means

The new law means that ‘intoxicating hemp’ products will now come under the purview of the state’s Cannabis Regulatory Commission and can only be sold by licensed dispensaries or at liquor stores. This change comes as many criticized the widespread availability of hemp products with no regulation. Hemp products are currently found in many convenience stores, grocery stores, and other retail locations that are not age-restricted.

“The main intent I think we would all agree to is that there is a phenomenal amount of unregulated, unlicensed, untested cannabis products on gas station shelves, convenience store shelves, and they don’t go through any regulated process. Teens have access to this, and this bill attempts to capture that to prevent that,” said Scott Rudder of the New Jersey CannaBusiness Association in a statement.

Read More: New Dispensary, Village Hoboken, Opening This Month on Washington Street

The threshold for regulating products per the new bill is “total THC greater than 0.5 milligrams per serving 4 or 2.5 milligrams per package.” Critics say that that limit is so low that for a user to experience ‘intoxicating effects’ would require them to ingest large quantities of the product.

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The bill was signed on September 12th, and immediately took effect, banning the sale of intoxicating hemp products to people under the age of 21. On October 12th, it will be temporarily unlawful to sell intoxicating hemp products anywhere but a cannabis business licensed by the Cannabis Regulatory Board.

 

 

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Unanswered Questions

New Jersey has been a leader in hemp production since 2019 when the state enacted the New Jersey Hemp Farming Act. New Jersey’s hemp growing program was one of three states with similar programs to be approved by the US Department of Agriculture.

Both hemp and marijuana are grown from cannabis plants. The only difference is that hemp has 0.3% or less THC content, while marijuana has anything above that. Tetrahydrocannabinol (THC) is the intoxicating chemical or chemicals in the cannabis plant.

Hemp can be used to produce things like textiles, animal feed, and paper, and the plant itself is a source of nutrition. Hemp seeds are considered a superfood because they are high in fatty acids, vitamins, and minerals.

In addition to a murky future for the agricultural aspect of hemp production, many are concerned about how this law will be enforced. While the law specifies what products will be regulated and by what entity, no additional resources have been allocated to that effort. In his remarks upon signing the bill, Governor Murphy highlighted this discrepancy. “I am concerned that the bill requires the New Jersey Cannabis Regulatory Commission (the “Commission”) to establish a new regulatory program for alcohol licensees selling intoxicating hemp beverages but does not provide the Commission with the resources necessary to establish the program. This omission raises questions about the Commission’s ability to stand up a program that would expand intoxicating hemp beverage sales and distribution to alcohol licensees, let alone to do so within the timelines envisioned by the bill.”

Governor Murphy called out other flaws in the bill, citing the rush of late amendments for the confusion about the bill’s specifics. In addition to the increased regulatory efforts required, two other points of confusion exist. First, whether the law will apply to all hemp-based products or merely those produced within New Jersey. Second, a lack of clarity in terms of what role licensed alcohol retailers will play in the new schema.  Liquor license holders can sell the products but they would also have to register with the Cannabis Regulatory Commission. But again, no additional resources have been designated to train and manage new entrants.

Despite these criticisms, Governor Murphy said that he felt it would be better to sign the bill into law and work out the details to put a stop to the sale of unregulated products 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. Because the bill would address this present danger, I have concluded that the wiser course is to sign the bill now and commit to working with the Legislature to address the technical issues and other challenges in separate legislation.”

See More: An Architect’s Thoughts on Cannabis Businesses in the Community

Another layer to the confusion in all of this is that not every city in New Jersey permits the sale of cannabis. Companies that sell intoxicating hemp-based products in New Jersey will now have to reimagine their retail plans in the state.

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