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Governor Phil Murphy (D) signed into law the intoxicating hemp Delta 8 THC regulation bill passed by the New Jersey Legislature in June.
The bill had to be signed in 90 days, and the deadline was nearly up.
In 2018, the U.S. Congress passed the Farm Bill, which allowed for the growing and refinement of “hemp.” “Hemp” was defined as being the exact thing as marijuana or cannabis. Except it is supposed to have less than .03 percent Delta 9 THC, the cannabinoid that gets you high. In 2018, that was the only cannabinoid lawmakers knew of. So enterprising scientists found other cannabinoids that get you high, like Delta-8 THC, Delta-10 THC, THCA, THCO, and others.
So many hemp products are being sold that might have a small amount of Delta-9 THC but enough Delta-8 THC to get you high.
The bill S-3235/A-4461, “Regulates production and sale of certain intoxicating hemp products,” was sponsored by Teresa Ruiz (D-29) of Newark in the State Senate. Will Sampson IV (D-31) of Bayonne, Herb Conaway (D-7) of Burlington County, and Codey Miller (D-4) of Gloucester County sponsored it in the legislature.
New Jersey is not the first state to realize this might be a problem. In fact, some might say they are late since other states started cracking down in 2021. In addition, a large range of smoke shops, CBD shops, convenience stores and gas stations have been selling Delta-8 hemp products for a few years now.
“There recently has been a proliferation of products that meet the legal definition of “hemp” due to their low concentration of Delta-9 tetrahydrocannabinol (“THC”). But that are intoxicating because of the presence of other forms of THC, such as Delta-8 and Delta-10. Often at artificially increased levels,” Murphy wrote in a statement to his Chief Counsel, Parimal Garg.
“It will be unlawful to sell or distribute a product intended for human consumption that contains THC in any detectable amount to a person under 21 years of age,” he declared. “In thirty days, it will be at least temporarily unlawful for intoxicating hemp products to be sold or distributed in New Jersey by anyone other than cannabis businesses licensed and overseen by the Cannabis Regulatory Commission (CRC).”
The CRC has yet to comment on the bill if they are up to the task.
“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.
“Late amendments to this bill in the legislature opened the door to the sale and distribution of intoxicating hemp beverages by holders of plenary wholesale licenses and plenary retail distribution licenses for alcoholic beverages (“alcohol
licensees”), in addition to licensed cannabis businesses,” Murphy said.
He noted the CRC now needs to create a new class of license to maintain this loophole for liquor stores. Murphy also noted they probably don’t have the resources to do so. In addition, he didn’t like that liquor stores might not have to comply with the regulations the CRC mandates dispensaries comply with.
So could potentially be allowed to sell intoxicating hemp drinks in towns that do not allow legal cannabis dispensary sales.
“We must ensure that the market is not disrupted by the entry of businesses that are not required to play by the same rules,” Murphy declared.
Many Lingering Implementation Questions Remain
He said industry participants have raised questions about amendments’ introduction of the phrase “in this State.”
“Some read this amendment to mean that products may be sold in New Jersey without violating this bill. Even if they would otherwise qualify as “intoxicating hemp products,” provided that all or some of the cultivation, derivation, and
manufacture of the product occurs outside of New Jersey,” Murphy wrote. “Others read the amended bill to mean that authorized sellers may sell intoxicating hemp products in the newly regulated market only if the product is cultivated, derived, and/or manufactured in New Jersey.”
“The former (1st) reading would largely defeat the purpose of the legislation by creating an enormous loophole contrary to the Legislature’s purpose in passing the bill. The (2nd) latter would implicate concerns related to the United States Constitution’s dormant commerce clause,” he explained. “I and my team have heard from a number of stakeholders with differing views on this issue. As well as a number of legislators who supported the legislation.”
So, Murphy wants to work with the legislature to pass more hemp legislation to address these issues.
“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,” said Ruiz. “We are grateful to Governor Murphy for taking swift action on this bill to get these products off of store shelves and implement responsible regulations.”
“The signing of bill S-3235 into law is one more step we can take to 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. I am glad to see it finally come to fruition,” said Senator Pual Moriarty (D-4) of Gloucester County.
According to a NJ Senate Democratic press release, the CRC must consult the Division of Alcoholic Beverage Control (ABC) to adopt separate rules and regulations regarding the sale of intoxicating hemp beverages by liquor stores.
These regulations include provisions concerning packaging, labeling, product testing, safety standards, permitted THC amounts, and the number of intoxicating hemp beverages that could be sold to a consumer.
The CRC must also consult with the Division of Consumer Affairs and the Business Action Center to develop and implement a public education program to inform businesses.
So, it’s an unfunded mandate.
New Jersey CannaBusiness Association (NJCBA) President Scott Rudder said they were in favor of the overall goal of the legislation.
“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,” he declared.
“We have a vigorous regulatory process for a reason. The New Jersey Cannabis Regulatory Commission must ensure these stores go through the same process,” Rudder added.
NJCBA General Counsel and noted cannabis lobbyist Bill Caruso was happy minors would have trouble buying it now.
“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,” he added.
Many independent dispensary owners and underground legacy operators do not like intoxicating hemp and Delta 8 THC products. They garnered a reputation for being bad, shady products. Often, such products are unlabeled or mislabeled.
Some underground legacy to legal entrepreneurs opened storefront smoke shops and hoped to convert them to open licensed dispensaries. But some opened in towns that would not allow cannabis sales. So, selling Delta 8-THC intoxicating hemp was one way to go legit.
In addition, some of the products were made to quality standards. They have Certificates Of Analysis (COA). So you can scan a QR code and read about the compounds within a product online.
(The Governor’s Office in Trenton is in the building pictured above.)
“}]] Governor Phil Murphy (D) signed into law the intoxicating hemp Delta 8 THC regulation bill passed by the New Jersey Legislature in June. Read More