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New Jersey is taking steps to regulate the production and sale of intoxicating hemp products.
Readily available in CBD and vape shops, as well as gas stations, convenience stores and other retailers across the state, items made with hemp-derived cannabinoid delta-8 tetrahydrocannabinol (THC) come in many forms — from beverages to gummies to candies to vape cartridges.
Despite having the same psychoactive effects as cannabis, businesses in the Garden State have been able to sell hemp products that include at least 0.3% THC due to a loophole in federal and state law.
As part of an effort to protect the public – and ensure that kids aren’t getting their hands on the substance – New Jersey is making delta-8 products subject to the same regulatory framework as other legal cannabis products in the state.
Under a bill signed Sept. 12 by Gov. Phil Murphy, sellers of intoxicating hemp products will need to obtain a license from the New Jersey Cannabis Regulatory Commission (CRC) and comply with the body’s regulations regarding licensing, testing, selling and packaging.
Additionally, the CRC will consult with the state Division of Alcoholic Beverage Control (ABC) to adopt separate rules for the sale of intoxicating hemp beverages by liquor stores.
According to the legislation, this will include provisions concerning packaging, labeling, product testing, safety standards, permitted THC amounts and the number of beverages that can be sold to a consumer at any given time.
‘Responsible regulations’
The bill prohibits the sale of any intoxicating hemp products and drinks with any detectable amount of THC to a person under 21 years of age, effective immediately. It also outlaws the sale or distribution of any goods containing synthetic THC – a laboratory-made substance not derived from the natural cannabis plant.
Lastly, the measure directs the CRC to work with the Division of Consumer Affairs and Business Action Center to develop and implement a public education program to inform businesses about the new law.
Ruiz
In a statement, Senate Majority Leader Teresa Ruiz, D-29th District, one of the bill’s sponsors, said, “Today, New Jersey takes a major step to protect our children. The lack of regulation of intoxicating hemp products and beverages has helped fuel a rise in cannabis-related hospitalizations and poses a threat to the well-being of our communities. Public health and safety should always be our top priority.”
She added, “We are grateful to Gov. Murphy for taking swift action on this bill to get these products off of store shelves and implement responsible regulations.”
Moriarty
Co-sponsor Sen. Paul Moriarty, D-4th District, echoed Ruiz. He said the law will “protect our children and grandchildren from a dangerous and unpredictable substance.”
“The regulation of Delta THC is a long-overdue outcome I have been working toward for several years now, and I am glad to see it finally come to fruition,” he said.
An unregulated product
Pitched by companies as an alternative to marijuana that gives users a less intense high, less paranoia and less anxiety, delta-8 THC products have become especially popular in states without legalized recreational cannabis markets, according to the U.S. Food and Drug Administration.
But amid exploding sales across the country, safety concerns are growing about an easily accessible product made with unregulated production processes. As a result, 17 states and counting – including places where recreational cannabis is legal, like New York and Colorado – have banned delta-8 or all unregulated forms of THC.
Federal officials have also warned of the potential dangers of a substance that’s neither evaluated or approved by regulators.
By the numbers:
In 2022, U.S. poison control centers received reports of more than 3,358 cases involving exposure to delta-8 THC, an 82% increase from the prior year.
In 2022, U.S. poison control centers received reports of more than 3,358 cases involving exposure to delta-8 THC, an 82% increase from the prior year. Nearly half of those incidents were described as unintentional exposure.
In a signing statement, Murphy said, “These products are sold outside of the regulated market for cannabis even though they can have similar effects, may contain harmful chemicals and other contaminants, and often are sold without appropriate testing and labeling. Too frequently, these products are readily available to minors. The status quo is untenable and this bill will put an end to it.”
Cause for concern?
The Democratic governor expressed concern over the creation of a new regulatory program for alcohol licensees selling hemp beverages and whether the CRC has the resources necessary to accomplish this.
Murphy also said, “The bill also does not explicitly require alcohol licensees that sell or distribute intoxicating hemp products to comply with the many regulatory requirements that apply to cannabis businesses. These include, among other requirements, mandates that retail employees be trained about the products being sold, that licensees maintain labor peace agreements, and that operations are consistent with municipal ordinances, including municipal ordinances prohibiting the operation of any one or more classes of cannabis establishment, or cannabis distributors or cannabis delivery services.”
“In the interim, the Commission should ensure, to the extent permitted by law, that any regulations it adopts condition approval for alcohol licensees to sell or distribute intoxicating hemp products on compliance with regulations comparable to those that apply to similarly situated cannabis businesses,” he said.
A work in progress
The governor also said that discussions over the past two months with various stakeholders and legislators convinced him “it is very unlikely that revisions to the bill would have the broad support necessary” to move through the Legislature quickly.
“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,” he said.
Orlando
Commenting on the bill signing, Eric Orlando, executive director of the Brewers Guild of New Jersey, said, “First and foremost, the legislation accomplished its most important goal: getting these intoxicating products meant for adult consumption only out of the hands of children immediately.
“As for hemp beverages, the Governor’s statements show that issues around these products are certainly not settled and a work in progress,” he continued. “The state’s craft beer industry looks forward to continuing to be part of the conversation so that New Jersey breweries have an equal opportunity to produce products now endorsed by the law as out-of-state breweries do in their own states.”
Rudder
New Jersey CannaBusiness Association (NJCBA) President Scott Rudder added, “The majority of this new law includes critical components that NJCBA was proud to support. These include key provisions that will keep kids from obtaining non-tested, non-regulated cannabis products. That said, Governor Murphy is right to have hesitations about this law. It makes reference to intoxicating hemp when, in fact, intoxicating hemp is actually called cannabis. Allowing liquor stores to sell these products could have serious consequences if not done right. We have a vigorous regulatory process for a reason. Just like any other business that’s licensed to sell cannabis products, the New Jersey Cannabis Regulatory Commission must ensure these stores go through the same process.”
Caruso
Also commenting on the law, NJCBA General Counsel and Archer & Greiner partner Bill Caruso said, “We’ve long known that allowing access to delta-8, particularly among children, completely undercut efforts to create a safe, regulated market. This law will, thankfully, correct that. Like Governor Murphy, we wish the law had stopped there. We hope the CRC will create regulatory oversight for liquor stores that mirrors the diligent process already in place for businesses seeking to get into the cannabis space.
“}]] For beverages made with delta-8, the state Cannabis Regulatory Commission will consult with ABC to adopt separate rules for sales by liquor stores. Read More