Bill > S1699

Introduced Session

Pursuant to P.L.2019, c.238, known as the "New Jersey Hemp Farming Act," the New Jersey Department of Agriculture is designated as the primary regulatory authority over the production of hemp in the State. The department is responsible for promulgating regulation plans under which the State monitors and regulates hemp production, an agricultural crop which the State actively promotes, and which permits farmers and businesses to cultivate, handle and process hemp, and to sell hemp products for commercial purposes (and which is excluded from the definition of a controlled substance due to the presence of hemp or hemp-derived cannabinoids). Hemp-derived products manufactured outside the regulatory structure, while not illegal in New Jersey, remain unregulated, although chemical conversion processes can make hemp derived cannabinoid products, such as Delta 8, have psychoactive properties similar to the THC in legalized cannabis, and contain unknown but harmful byproducts of the conversion process. This bill establishes the Cannabis Regulatory Commission as the regulatory body for hemp-derived cannabinoids for purposes of registration and sale of hemp-derived cannabinoid products. The bill further provides for existing laboratories to test hemp-derived cannabinoid products. Section 1. This section contains legislative findings and declarations including the following: hemp-derived cannabinoid products can contain more psychoactive cannabis than is lawfully permitted to be sold in unregulated form, and yet, such products are being sold in New Jersey outside the regulatory structure for cannabis and hemp. The Cannabis Regulatory Commission is uniquely positioned to implement a regulatory structure, including, tracking through establishing a registration requirement for hemp-derived cannabinoid products manufactured outside the New Jersey regulatory structure, and other health, safety and testing requirements. Section 2. This section defines key terms which aid in distinguishing cannabinoid products with psychoactive properties from those with non-psychoactive properties. A key term, "cannabinoid" means the naturally occurring chemical compound found in cannabis. The main cannabinoids found in cannabis plants are tetrahydrocannabinol (THC), which, in simplified terms, is psychoactive, and cannabidiol (CBD) which is non-psychoactive. Through a conversion process, known as isomerization, legal CBD products, such as Delta-8, have been found to contain psychoactive properties, and potentially harmful byproduct from the conversion process. Since many products are sold in convenience stores and gas stations, the bill targets retail merchants, defined in the bill as "hemp-derived cannabinoid retailers," to register products sold through their locations. Section 3. This section amends N.J.S.A. 24:6I-34, concerned with commission activities associated with the personal use of cannabis, to grant powers which enable the commission to perform duties prescribed in the bill. Jurisdiction, supervision, duties, functions, and powers are extended to hemp-derived cannabinoid products manufactured outside the New Jersey regulatory structure. The commission is empowered to regulate the purchase, sale, transportation, and delivery of hemp-derived cannabinoid products in accordance with the provision of this bill, and to adopt, amend, or repeal regulations as necessary. Subsection d. of this section adds the Commissioner of Agriculture as a consultant agency for the adoption of regulations by the commission. Section 4. This section establishes specific areas for regulation of hemp-derived cannabinoid products, including registration requirements, permit requirements for hemp-derived cannabinoid retailers, security requirements, age requirements to prevent the sale of hemp-derived cannabinoid products with detectable THC to persons under 21 years of age, labeling and packaging requirements, unannounced visits, and civil penalties for failure to comply with regulations adopted pursuant to the provisions of the bill. Section 5. This section amends N.J.S.A. 24:6I-17, concerned with the testing of cannabis, to require that samples of cannabinoid product manufactured outside the New Jersey regulatory structure be tested by a laboratory licensed pursuant to N.J.S.A.24:6I-18 (testing laboratories) or pursuant to N.J.S.A.24:6I-35 (cannabis testing laboratories). Section 6. This section authorizes the testing of hemp-derived cannabinoid products at testing laboratories currently licensed to test medical cannabis and medical cannabis products, usable cannabis, cannabis products, cannabis extracts, and other cannabis resins. Section 7. This section provides that a retail establishment that offers for sale hemp-derived cannabinoid products prior to the passage of this bill shall have a period of one year from passage to comply with the provisions of the bill. It is not the intention of the sponsor to ban hemp-derived cannabinoids, such as Delta-8, but to require registration of such products, and to impose health and safety requirements through a regulatory structure.

Committee Categories

Declan O'Scanlon (R)*,  Teresa Ruiz (D)*,  Patrick Diegnan (D), 

Introduced in the Senate, Referred to Senate Judiciary Committee (on 01/09/2024)

Official Document