In a bold move to address growing concerns about unregulated hemp products, New Jersey Gov. Phil Murphy signed a bill that imposes significant restrictions on the sale of hemp products in the state. This decision comes amid mounting complaints regarding the legal loopholes that have allowed minors to access potentially dangerous hemp-based goods. Despite acknowledging flaws in the bill, Gov. Murphy stated that the urgency of the situation demanded immediate action.
Why the Bill Was Signed
The controversial legislation aims to curb the availability of intoxicating hemp products, particularly to underage consumers. Hemp, which was legalized federally in 2018, contains lower levels of THC than cannabis, but products containing hemp-derived cannabinoids have been found in local stores with little regulation. Some of these products are advertised with high THC content, raising concerns among parents, health professionals, and lawmakers.
In a signing statement, Gov. Murphy admitted that he had reservations about the bill’s wording, but ultimately chose to sign it, noting that the status quo posed “an immediate risk to health and safety” because these products were being sold to minors. Murphy added that while the bill has its imperfections, attempting to revise it would likely delay its implementation, which he believed would prolong the public health risk.
The Impact on Hemp Sales
The new law temporarily halts the sale of hemp products by New Jersey businesses that lack a cannabis license, transferring regulatory oversight to the state’s Cannabis Regulatory Commission (CRC). While cannabis products have long been subject to rigorous control under the CRC, hemp products have largely escaped similar scrutiny — until now.
Under the new regulations, businesses must pull hemp products from their shelves until the CRC creates new rules for their sale. Companies have 30 days to comply. This includes products that contain even trace amounts of THC, the psychoactive component that differentiates hemp from its more potent cousin, marijuana.
Industry Reactions and Concerns
The cannabis and hemp industries have expressed mixed reactions to the law. The bill was amended with last-minute changes that left some definitions, like the distinction between hemp products made in New Jersey versus those made outside of the state, unclear. This ambiguity could either permit the sale of out-of-state products or limit the market exclusively to locally manufactured hemp items — both outcomes presenting their own set of challenges.
Critics have also voiced concerns over the slow pace of regulatory action. Given the CRC’s track record, which includes delays in establishing cannabis consumption lounges, many fear that the process to regulate hemp will drag on, leaving businesses and consumers in limbo. However, advocates of the bill argue that the move will ensure consumer safety and bring much-needed oversight to a currently unregulated industry.
Addressing Minors’ Access to Hemp Products
One of the bill’s primary goals is to protect minors from consuming intoxicating hemp products, which have been easily accessible at gas stations and convenience stores. Lawmakers were especially alarmed by reports that some of these products are marketed with thousands of milligrams of THC, misleading consumers — and posing a potential health risk.
Under the new law, it is now illegal for anyone under the age of 21 to purchase any hemp product containing detectable levels of THC. This brings hemp products in line with cannabis in terms of age restrictions, adding another layer of protection for minors.
The Road Ahead for Businesses
Although the bill is now law, significant hurdles remain. Liquor stores with existing licenses will be allowed to sell hemp beverages once they acquire a cannabis license, but some fear this could lead to potential regulatory oversights. Scott Rudder, president of the New Jersey CannaBusiness Association, warned that the move could have unintended consequences if the CRC does not ensure these stores adhere to the same standards as cannabis dispensaries.
For businesses already struggling with stringent zoning laws, security requirements, and operational costs, these new regulations add another layer of complexity. Two-thirds of municipalities in New Jersey have already banned cannabis businesses, and it remains unclear whether they will permit hemp sales within their borders under the new law.
A Controversial But Necessary Step?
Supporters of the bill, including the New Jersey Cannabis Trade Association, argue that the legislation is a long-overdue step toward protecting consumers. They point out that licensed cannabis businesses in the state have operated under strict guidelines from the beginning and that extending these standards to hemp-derived products is a logical next step.
However, not everyone is convinced that the new law will provide the intended benefits. Beau Huch, a lobbyist representing hemp beverage companies, criticized the law as excessive and unworkable. He suggested that lawmakers missed an opportunity to use tax revenue from hemp sales to support the cannabis industry, which continues to face economic challenges.
In the coming months, as the CRC works to develop rules for hemp sales, it will become clearer whether this controversial bill can achieve its goals without stifling a burgeoning industry. One thing is certain: Gov. Murphy’s decision has sparked a heated debate, and the implications of this new law will be felt across New Jersey’s cannabis and hemp industries for years to come.
