Bill Text: NJ A5068 | 2024-2025 | Regular Session | Introduced
Bill Title: Permits Department of Agriculture to regulate sale and distribution of hemp-derived consumable products under certain circumstances.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-12-09 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A5068 Detail]
Download: New_Jersey-2024-A5068-Introduced.html
Sponsored by:
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
SYNOPSIS
Permits Department of Agriculture to regulate sale and distribution of hemp-derived consumable products under certain circumstances.
CURRENT VERSION OF TEXT
As introduced.
An Act to regulate the sale and distribution of hemp-derived consumable products under certain circumstances, amending various sections of statutory law, supplementing Title 4 of the Revised Statutes, and repealing various sections of statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2019, c.238 (C.4:28-8) is amended to read as follows:
3. As used in sections 1 through 9 of P.L.2019, c.238 (C.4:28-6 et al.), unless the context otherwise requires:
"Agent" means an employee or contractor of a hemp producer.
"Applicant" means a person, or for a business entity, any person authorized to act on behalf of the business entity, who applies to the department to be a hemp producer in the State.
"Batch" means the hemp-derived consumable product produced during a period of time under similar conditions and identified by a specific code that allows the product to be traced.
"Commercial sale" means the sale of a product in the stream of commerce at retail, at wholesale, or on the Internet.
"Cultivate" means to plant, water, grow, or harvest a plant or crop.
"Department" means the New Jersey Department of Agriculture.
"Distributor" means a person or entity that delivers or sells hemp-derived consumable products for the purpose of distribution in commerce.
"Exit package" means an opaque bag or other similar opaque covering provided at the point of sale that satisfies the child resistant effectiveness standards under 16 C.F.R. s.1700.15(b)(1) when tested in accordance with the requirements of 16 C.F.R. s.1700.20.
"Federally defined THC level for hemp" means a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis for hemp or in a hemp product.
"Handle" means to possess or store a hemp plant on premises owned, operated, or controlled by a hemp producer for any period of time or in a vehicle for any period of time other than during the actual transport of the plant between premises owned, operated, or controlled by hemp producers or persons or entities authorized to produce hemp pursuant to 7 U.S.C. s.1639o et seq. and any state law or rule or regulation adopted pursuant thereto. "Handle" does not mean possession or storage of finished hemp products.
"Hemp" means the plant Cannabis sativa L. and any part of that plant, including the seeds of the plant and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a [total] delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis. Hemp and hemp-derived cannabinoids, including cannabidiol, shall be considered an agricultural commodity and not a controlled substance due to the presence of hemp or hemp-derived cannabinoids.
"Hemp-derived beverage" means a hemp-derived consumable product that is a beverage intended for human ingestion.
"Hemp-derived cannabinoid" means any phytocannabinoid found in hemp, including delta-9 tetrahydrocannabinol (delta-9 THC), tetrahydrocannabinolic acid (THCA), cannabidiol (CBD), cannabidiolic acid (CBDA), cannabinol (CBN), cannabigerol (CBG), cannabichromene (CBC), cannabicyclol (CBL), cannabivarin (CBV), tetrahydrocannabivarin (THCV), cannabidivarin (CBDV), cannabicitran (CBT), delta-7 tetrahydrocannabinol (delta-7 THC), delta-8 tetrahydrocannabinol (delta-8 THC), or delta-10 tetrahydrocannabinol (delta-10 THC). "Hemp-derived cannabinoid" shall include any naturally occurring cannabinoid derived from hemp and contained in a hemp-derived consumable product, except "synthetic cannabinoid" as defined in section 2 of P.L.2013, c.35 (C.2C:35-5.3b). "Hemp-derived cannabinoid" shall not include hemp products intended for topical applications, or seeds or seed-derived ingredients that are recognized as safe by the United States Food and Drug Administration.
"Hemp-derived consumable product" means a hemp product that is a good intended for human ingestion or inhalation that contains a delta-9 THC concentration of not more than three-tenths of one percent, 0.3%, on a dry weight basis, but may contain concentrations of other hemp-derived cannabinoids in excess of that amount. "Hemp-derived consumable product" includes a hemp-derived beverage.
"Hemp producer" means a person or business entity authorized by the department to cultivate, handle, or process hemp in the State.
"Hemp product" means a finished product with a [total] delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent [, and not more than 0.5 milligrams of total THC per serving and 2.5 milligrams of total THC per package,] that is derived from or made by processing a hemp plant or plant part and prepared in a form available for commercial sale. The term includes cosmetics, personal care products, food intended for human or animal consumption, cloth, cordage, fiber, fuel, paint, paper, particleboard, plastics, and any product containing one or more hemp-derived cannabinoids such as cannabidiol. Hemp products shall not be considered controlled substances due to the presence of hemp or hemp-derived cannabinoids. ["Hemp product" shall not mean a cannabinoid product that is not derived from naturally occurring biologically active chemical constituents and shall not mean an intoxicating hemp product as defined in section 3 of P.L.2021, c.16 (C.24:6I-33).]
"Independent testing laboratory" means a laboratory that meets the following conditions:
(1) holds an ISO 17025 accreditation or is registered with the Drug Enforcement Administration in accordance with 21 C.F.R. s.1301.13;
(2) does not have a direct or indirect interest in the entity whose product is being tested;
(3) does not have a direct or indirect interest in a facility that cultivates, processes, distributes, dispenses, or sells hemp-derived consumable products in this State or any other jurisdiction;
(4) has entered into a compliance agreement with the New Jersey Division of Alcoholic Beverage Control in the Department of Law and Public Safety to conduct tetrahydrocannabinol concentration sampling and testing using the high-performance chromatography testing method.
"Ingestion" means the process of consuming hemp through the mouth, by swallowing into the gastrointestinal system, or through tissue absorption.
"Inhalation" means the process of consuming hemp into the respiratory system through the mouth or nasal passages.
"License" means a license issued in accordance with P.L. , c. (C. ) (pending before the Legislature as this bill).
"Manufacture" means to compound, blend, extract, infuse, cook, or otherwise manipulate hemp or a hemp-derived cannabinoid to make, prepare, or package hemp-derived consumable products.
"Manufacturer" means any person or entity that engages in the process of manufacturing, preparing, or packaging of hemp-derived consumable products.
"Process" means to convert hemp into a marketable form.
"Producer" means any person or entity that engages in the process of farming and harvesting hemp that is intended to be used in the manufacture of a hemp-derived consumable product.
"Retailer" means a person or entity that sells products containing a hemp-derived cannabinoid or a hemp-derived consumable product for consumption and not for resale. "Retailer" shall not mean a person or entity that sells products online.
"Secretary" means the Secretary of the New Jersey Department of Agriculture.
"Seller" means any person who sells a hemp-derived consumable product to a consumer, including an online retailer.
"Serving" means a quantity of hemp-derived cannabinoid product as determined by the Department.
"Supplier" means a person or entity that manufactures hemp-derived cannabinoids or sells products containing hemp-derived cannabinoids to retailers.
"State" means the State of New Jersey.
"Transport" means the movement or shipment of hemp by a hemp producer, a person or entity authorized to produce hemp pursuant to 7 U.S.C. s.1639o et seq. and any state law or rule or regulation adopted pursuant thereto, or a hemp producer's or authorized entity's third-party carrier or agent. "Transport" shall not mean the movement or shipment of hemp products.
["Total THC" means the total concentration of all tetrahydrocannabinols in hemp or a hemp product, including delta-8, delta-9, delta-10, tetrahydrocannabinolic acid and any other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol, regardless of how derived or manufactured, and any other cannabinoid, other than cannabidiol, identified by the Cannabis Regulatory Commission, in consultation with the Department of Agriculture and the Attorney General, as causing intoxication.]
(cf: P.L.2024, c.73, s.1)
2. Section 3 of P.L.2021, c.16 (C.24:6I-33) is amended to read as follows:
3. Definitions.
As used in P.L.2021, c.16 (C.24:6I-31 et al.) regarding the personal use of cannabis, unless the context otherwise requires:
"Alternative treatment center" means an organization issued a permit pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) to operate as a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant, as well as any alternative treatment center deemed pursuant to section 7 of that act (C.24:6I-7) to concurrently hold a medical cannabis cultivator permit, a medical cannabis manufacturer permit, and a medical cannabis dispensary permit.
"Cannabis" means all parts of the plant Cannabis sativa L., whether growing or not, the seeds thereof, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds, except those containing resin extracted from the plant, which are cultivated and, when applicable, manufactured in accordance with P.L.2021, c.16 (C.24:6I-31 et al.) for use in cannabis products as set forth in this act, but shall not include the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink, or other product. "Cannabis" does not include: medical cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.); marijuana as defined in N.J.S.2C:35-2 and applied to any offense set forth in chapters 35, 35A, and 36 of Title 2C of the New Jersey Statutes, or P.L.2001, c.114 (C.2C:35B-1 et seq.), or marihuana as defined in section 2 of P.L.1970, c.226 (C.24:21-2) and applied to any offense set forth in the "New Jersey Controlled Dangerous Substances Act," P.L.1970, c.226 (C.24:21-1 et al.); or hemp or a hemp product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.).
"Cannabis consumption area" means, as further described in section 28 of P.L.2019, c.153 (C.24:6I-21), a designated location operated by a licensed cannabis retailer or permit holder for dispensing medical cannabis, for which both a State and local endorsement has been obtained, that is either: (1) an indoor, structurally enclosed area of the cannabis retailer or permit holder that is separate from the area in which retail sales of cannabis items or the dispensing of medical cannabis occurs; or (2) an exterior structure on the same premises as the cannabis retailer or permit holder, either separate from or connected to the cannabis retailer or permit holder, at which cannabis items or medical cannabis either obtained from the retailer or permit holder, or brought by a person to the consumption area, may be consumed.
"Cannabis cultivator" means any licensed person or entity that grows, cultivates, or produces cannabis in this State, and sells, and may transport, this cannabis to other cannabis cultivators, or usable cannabis to cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 1 Cannabis Cultivator license.
"Cannabis delivery service" means any licensed person or entity that provides courier services for consumer purchases of cannabis items and related supplies fulfilled by a cannabis retailer in order to make deliveries of the cannabis items and related supplies to that consumer, and which services include the ability of a consumer to purchase the cannabis items directly through the cannabis delivery service, which after presenting the purchase order to the cannabis retailer for fulfillment, is delivered to that consumer. This person or entity shall hold a Class 6 Cannabis Delivery license.
"Cannabis distributor" means any licensed person or entity that transports cannabis in bulk intrastate from one licensed cannabis cultivator to another licensed cannabis cultivator, or transports cannabis items in bulk intrastate from any one class of licensed cannabis establishment to another class of licensed cannabis establishment, and may engage in the temporary storage of cannabis or cannabis items as necessary to carry out transportation activities. This person or entity shall hold a Class 4 Cannabis Distributor license.
"Cannabis establishment" means a cannabis cultivator, a cannabis manufacturer, a cannabis wholesaler, or a cannabis retailer.
"Cannabis extract" means a substance obtained by separating resins from cannabis by: (1) a chemical extraction process using a hydrocarbon-based solvent, such as butane, hexane, or propane; (2) a chemical extraction process using the hydrocarbon-based solvent carbon dioxide, if the process uses high heat or pressure; or (3) any other process identified by the Cannabis Regulatory Commission by rule or regulation.
"Cannabis flower" means the flower of the plant Cannabis sativa L. within the plant family Cannabaceae.
"Cannabis item" means any usable cannabis, cannabis product, cannabis extract, [intoxicating hemp product,] and any other cannabis resin. "Cannabis item" does not include: any form of medical cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.); or hemp or a hemp product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.).
"Cannabis leaf" means the leaf of the plant Cannabis sativa L. within the plant family Cannabaceae.
"Cannabis manufacturer" means any licensed person or entity that processes cannabis items in this State by purchasing or otherwise obtaining usable cannabis, manufacturing, preparing, and packaging cannabis items, and selling, and optionally transporting, these items to other cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 2 Cannabis Manufacturer license."
"Cannabis paraphernalia" means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing a cannabis item into the human body. "Cannabis paraphernalia" does not include drug paraphernalia as defined in N.J.S.2C:36-1 and which is used or intended for use to commit a violation of chapter 35 or 36 of Title 2C of the New Jersey Statutes.
"Cannabis product" means a product containing usable cannabis, cannabis extract, or any other cannabis resin and other ingredients intended for human consumption or use, including a product intended to be applied to the skin or hair, edible cannabis products, ointments, and tinctures. "Cannabis product" does not include: (1) usable cannabis by itself; or (2) cannabis extract by itself; or (3) any other cannabis resin by itself.
"Cannabis resin" means the resin extracted from any part of the plant Cannabis sativa L., including cannabis extract and resin extracted using non-chemical processes, processed and used in accordance with P.L.2021, c.16 (C.24:6I-31 et al.). "Cannabis resin" does not include: any form of medical cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.); hashish as defined in N.J.S.2C:35-2 and applied to any offense set forth in chapters 35, 35A, and 36 of Title 2C of the New Jersey Statutes, or P.L.2001, c.114 (C.2C:35B-1 et seq.), or as defined in section 2 of P.L.1970, c.226 (C.24:21-2) and applied to any offense of the "New Jersey Controlled Dangerous Substances Act," P.L.1970, c.226 (C.24:21-1 et al.); or hemp or a hemp product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.).
"Cannabis retailer" means any licensed person or entity that purchases or otherwise obtains usable cannabis from cannabis cultivators and cannabis items from cannabis manufacturers or cannabis wholesalers, and sells these to consumers from a retail store, and may use a cannabis delivery service or a certified cannabis handler for the off-premises delivery of cannabis items and related supplies to consumers. A cannabis retailer shall also accept consumer purchases to be fulfilled from its retail store that are presented by a cannabis delivery service which will be delivered by the cannabis delivery service to that consumer. This person or entity shall hold a Class 5 Cannabis Retailer license.
"Cannabis testing facility" means an independent, third-party entity meeting accreditation requirements established by the Cannabis Regulatory Commission that is licensed to analyze and certify cannabis items and medical cannabis for compliance with applicable health, safety, and potency standards.
"Cannabis wholesaler" means any licensed person or entity that purchases or otherwise obtains, stores, sells or otherwise transfers, and may transport, cannabis items for the purpose of resale or other transfer to either another cannabis wholesaler or to a cannabis retailer, but not to consumers. This person or entity shall hold a Class 3 Cannabis Wholesaler license.
"Commission" means the Cannabis Regulatory Commission established pursuant to section 31 of P.L.2019, c.153 (C.24:6I-24).
"Conditional license" means a temporary license designated as either a Class 1 Cannabis Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis Retailer license, or a Class 6 Cannabis Delivery license that allows the holder to lawfully act as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service as the case may be, which is issued pursuant to an abbreviated application process, after which the conditional license holder shall have a limited period of time in which to become fully licensed by satisfying all of the remaining conditions for licensure which were not required for the issuance of the conditional license.
"Consumer" means a person 21 years of age or older who purchases, directly or through a cannabis delivery service, acquires, owns, holds, or uses cannabis items for personal use by a person 21 years of age or older, but not for resale to others.
"Consumption" means the act of ingesting, inhaling, or otherwise introducing cannabis items into the human body.
"Delivery" means the transportation of cannabis items and related supplies to a consumer. "Delivery" also includes the use by a licensed cannabis retailer of any third party technology platform to receive, process, and fulfill orders by consumers, which third party shall not be required to be a licensed cannabis establishment, distributor, or delivery service, provided that any physical acts in connection with fulfilling the order and delivery shall be accomplished by a certified cannabis handler performing work for or on behalf of the licensed cannabis retailer, which includes a certified cannabis handler employed or otherwise working on behalf of a cannabis delivery service making off-premises deliveries of consumer purchases fulfilled by that cannabis retailer.
"Department" means the Department of Health.
"Director" means the Director of the Office of Minority, Disabled Veterans, and Women Cannabis Business Development in the Cannabis Regulatory Commission.
"Executive director" means the executive director of the Cannabis Regulatory Commission.
"Financial consideration" means value that is given or received either directly or indirectly through sales, barter, trade, fees, charges, dues, contributions, or donations.
"Immature cannabis plant" means a cannabis plant that is not flowering.
"Impact zone" means any municipality, based on past criminal marijuana enterprises contributing to higher concentrations of law enforcement activity, unemployment, and poverty, or any combination thereof, within parts of or throughout the municipality, that:
(1) has a population of 120,000 or more according to the most recently compiled federal decennial census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.);
(2) based upon data for calendar year 2019, ranks in the top 40 percent of municipalities in the State for marijuana- or hashish-related arrests for violation of paragraph (4) of subsection a. of N.J.S.2C:35-10; has a crime index total of 825 or higher based upon the indexes listed in the annual Uniform Crime Report by the Division of State Police; and has a local average annual unemployment rate that ranks in the top 15 percent of all municipalities, based upon average annual unemployment rates estimated for the relevant calendar year by the Office of Research and Information in the Department of Labor and Workforce Development;
(3) is a municipality located in a county of the third class, based upon the county's population according to the most recently compiled federal decennial census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.), that meets all of the criteria set forth in paragraph (2) other than having a crime index total of 825 or higher; or
(4) is a municipality located in a county of the second class, based upon the county's population according to the most recently compiled federal decennial census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.):
(a) with a population of less than 60,000 according to the most recently compiled federal decennial census, that for calendar year 2019 ranks in the top 40 percent of municipalities in the State for marijuana- or hashish-related arrests for violation of paragraph (4) of subsection a. of N.J.S.2C:35-10; has a crime index total of 1,000 or higher based upon the indexes listed in the 2019 annual Uniform Crime Report by the Division of State Police; but for calendar year 2019 does not have a local average annual unemployment rate that ranks in the top 15 percent of all municipalities, based upon average annual unemployment rates estimated for the relevant calendar year by the Office of Research and Information in the Department of Labor and Workforce Development; or
(b) with a population of not less than 60,000 or more than 80,000 according to the most recently compiled federal decennial census; has a crime index total of 650 or higher based upon the indexes listed in the 2019 annual Uniform Crime Report; and for calendar year 2019 has a local average annual unemployment rate of 3.0 percent or higher using the same estimated annual unemployment rates.
["Intoxicating hemp product" means any product cultivated, derived, or manufactured in this State from hemp regulated pursuant to the "Agricultural Improvement Act of 2018," Pub.L.115-334 or the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.) that is sold in this State that has a concentration of total THC greater than 0.5 milligrams per serving or 2.5 milligrams per package. "Intoxicating hemp product" shall not include a cannabinoid product that is not derived from naturally occurring biologically active chemical constituents and shall not include hemp products as defined in section 3 of P.L.2019, c.238 (C.4:28-8).]
"License" means a license issued under P.L.2021, c.16 (C.24:6I-31 et al.), including a license that is designated as either a Class 1 Cannabis Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis Retailer license, or a Class 6 Cannabis Delivery license. The term includes a conditional license for a designated class, except when the context of the provisions of P.L.2021, c.16 (C.24:6I-31 et al.) otherwise intend to only apply to a license and not a conditional license.
"Licensee" means a person or entity that holds a license issued under P.L.2021, c.16 (C.24:6I-31 et al.), including a license that is designated as either a Class 1 Cannabis Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis Retailer license, or a Class 6 Cannabis Delivery license, and includes a person or entity that holds a conditional license for a designated class, except when the context of the provisions of P.L.2021, c.16 (C.24:6I-31 et al.) otherwise intend to only apply to a person or entity that holds a license and not a conditional license.
"Licensee representative" means an owner, director, officer, manager, employee, agent, or other representative of a licensee, to the extent that the person acts in a representative capacity.
"Manufacture" means the drying, processing, compounding, or conversion of usable cannabis into cannabis products or cannabis resins. "Manufacture" does not include packaging or labeling.
"Mature cannabis plant" means a cannabis plant that is not an immature cannabis plant.
"Medical cannabis" means cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.). "Medical cannabis" does not include any cannabis or cannabis item which is cultivated, produced, processed, and consumed in accordance with P.L.2021, c.16 (C.24:6I-31 et al.).
"Microbusiness" means a person or entity licensed under P.L.2021, c.16 (C.24:6I-31 et al.) as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service that may only, with respect to its business operations, and capacity and quantity of product: (1) employ no more than 10 employees; (2) operate a cannabis establishment occupying an area of no more than 2,500 square feet, and in the case of a cannabis cultivator, grow cannabis on an area no more than 2,500 square feet measured on a horizontal plane and grow above that plane not higher than 24 feet; (3) possess no more than 1,000 cannabis plants each month, except that a cannabis distributor's possession of cannabis plants for transportation shall not be subject to this limit; (4) acquire each month, in the case of a cannabis manufacturer, no more than 1,000 pounds of usable cannabis; (5) acquire for resale each month, in the case of a cannabis wholesaler, no more than 1,000 pounds of usable cannabis, or the equivalent amount in any form of manufactured cannabis product or cannabis resin, or any combination thereof; and (6) acquire for retail sale each month, in the case of a cannabis retailer, no more than 1,000 pounds of usable cannabis, or the equivalent amount in any form of manufactured cannabis product or cannabis resin, or any combination thereof.
"Noncommercial" means not dependent or conditioned upon the provision or receipt of financial consideration.
"Premises" or "licensed premises" includes the following areas of a location licensed under P.L.2021, c.16 (C.24:6I-31 et al.): all public and private enclosed areas at the location that are used in the business operated at the location, including offices, kitchens, rest rooms, and storerooms; all areas outside a building that the Cannabis Regulatory Commission has specifically licensed for the production, manufacturing, wholesaling, distributing, retail sale, or delivery of cannabis items; and, for a location that the commission has specifically licensed for the production of cannabis outside a building, the entire lot or parcel that the licensee owns, leases, or has a right to occupy.
"Produce" means the planting, cultivation, growing or harvesting of cannabis. "Produce" does not include the drying of cannabis by a cannabis manufacturer, if the cannabis manufacturer is not otherwise manufacturing cannabis.
"Public place" means any place to which the public has access that is not privately owned; or any place to which the public has access where alcohol consumption is not allowed, including, but not limited to, a public street, road, thoroughfare, sidewalk, bridge, alley, plaza, park, playground, swimming pool, shopping area, public transportation facility, vehicle used for public transportation, parking lot, public library, or any other public building, structure, or area.
"Radio" means a system for transmitting sound without visual images, and includes broadcast, cable, on-demand, satellite, or Internet programming. "Radio" includes any audio programming downloaded or streamed via the Internet.
"Significantly involved person" means a person or entity who holds at least a five percent investment interest in a proposed or licensed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service, or who is a decision making member of a group that holds at least a 20 percent investment interest in a proposed or licensed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service, in which no member of that group holds more than a five percent interest in the total group investment interest, and the person or entity makes controlling decisions regarding the proposed or licensed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service operations.
"Television" means a system for transmitting visual images and sound that are reproduced on screens, and includes broadcast, cable, on-demand, satellite, or Internet programming. "Television" includes any video programming downloaded or streamed via the Internet.
"THC" means delta-9-tetrahydrocannabinol and its precursor, tetrahydrocannabinolic acid, the main psychoactive chemicals contained in the cannabis plant.
["Total THC" means the total concentration of all tetrahydrocannabinols in hemp or a hemp product, including delta-8, delta-9, delta-10, tetrahydrocannabinolic acid and any other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol, regardless of how derived or manufactured, and any other cannabinoid, other than cannabidiol, identified by the Cannabis Regulatory Commission, in consultation with the Department of Agriculture and the Attorney General, as causing intoxication.]
"Usable cannabis" means the dried leaves and flowers of the female plant Cannabis sativa L., and does not include the seedlings, seeds, stems, stalks, or roots of the plant.
(cf: P.L.2024, c.73, s.2)
3. Section 5 of P.L.1970, c.226 (C.24:21-5) is amended to read as follows:
5. a. Tests. The director shall place a substance in Schedule I if he finds that the substance: (1) has high potential for abuse; and (2) has no accepted medical use in treatment in the United States; or lacks accepted safety for use in treatment under medical supervision.
b. The controlled dangerous substances listed in this section are included in Schedule I, subject to any revision and republishing by the director pursuant to subsection d. of section 3 of P.L.1970, c.226 (C.24:21-3), and except to the extent provided in any other schedule.
c. Any of the following opiates, including their isomers, esters, and ethers, unless specifically excepted, whenever the existence of such isomers, esters, ethers and salts is possible within the specific chemical designation:
(1) Acetylmethadol
(2) Allylprodine
(3) Alphacetylmethadol
(4) Alphameprodine
(5) Alphamethadol
(6) Benzethidine
(7) Betacetylmethadol
(8) Betameprodine
(9) Betamethadol
(10) Betaprodine
(11) Clonitazene
(12) Dextromoramide
(13) Dextrorphan
(14) Diampromide
(15) Diethylthiambutene
(16) Dimenoxadol
(17) Dimepheptanol
(18) Dimethylthiambutene
(19) Dioxaphetyl butyrate
(20) Dipipanone
(21) Ethylmethylthiambutene
(22) Etonitazene
(23) Etoxeridine
(24) Furethidine
(25) Hydroxypethidine
(26) Ketobemidone
(27) Levomoramide
(28) Levophenacylmorphan
(29) Morpheridine
(30) Noracymethadol
(31) Norlevorphanol
(32) Normethadone
(33) Norpipanone
(34) Phenadoxone
(35) Phenampromide
(36) Phenomorphan
(37) Phenoperidine
(38) Piritramide
(39) Proheptazine
(40) Properidine
(41) Racemoramide
(42) Trimeperidine.
d. Any of the following narcotic substances, their salts, isomers and salts of isomers, unless specifically excepted, whenever the existence of such salts, isomers and salts of isomers is possible within the specific chemical designation:
(1) Acetorphine
(2) Acetylcodone
(3) Acetyldihydrocodeine
(4) Benzylmorphine
(5) Codeine methylbromide
(6) Codeine-N-Oxide
(7) Cyprenorphine
(8) Desomorphine
(9) Dihydromorphine
(10) Etorphine
(11) Heroin
(12) Hydromorphinol
(13) Methyldesorphine
(14) Methylhydromorphine
(15) Morphine methylbromide
(16) Morphine methylsulfonate
(17) Morphine-N-Oxide
(18) Myrophine
(19) Nicocodeine
(20) Nicomorphine
(21) Normorphine
(22) Phoclodine
(23) Thebacon.
e. Any material, compound, mixture or preparation which contains any quantity of the following hallucinogenic substances, their salts, isomers and salts of isomers, unless specifically excepted, whenever the existence of such salts, isomers, and salts of isomers is possible within the specific chemical designation:
(1) 3,4-methylenedioxy amphetamine
(2) 5-methoxy-3,4-methylenedioxy amphetamine
(3) 3,4,5-trimethoxy amphetamine
(4) Bufotenine
(5) Diethyltryptamine
(6) Dimethyltryptamine
(7) 4-methyl-2,5-dimethoxylamphetamine
(8) Ibogaine
(9) Lysergic acid diethylamide
(10) Marijuana; except that on and after the effective date of the "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (C.24:6I-31 et al.), marijuana shall no longer be included in Schedule I, and shall not be designated or rescheduled and included in any other schedule by the director pursuant to the director's designation and rescheduling authority set forth in section 3 of P.L.1970, c.226 (C.24:21-3).
(11) Mescaline
(12) Peyote
(13) N-ethyl-3-piperidyl benzilate
(14) N-methyl-3-piperidyl benzilate
(15) Psilocybin
(16) Psilocyn
(17) Tetrahydrocannabinols, [including those produced by way of manufacture,] except when found in hemp [or] , a hemp product, or a hemp-derived consumable product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.) or P.L. , c. (C. ) (pending before the Legislature as this bill), or cannabis or a cannabis item, as those terms are defined in section 3 of P.L.2021, c.16 (C.24:6I-33), that is grown, cultivated, produced, or manufactured[, or sold] in accordance with the "New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act," P.L.2021, c.16 (C.24:6I-31 et al.).
(cf: P.L.2024, c.73, s.3)
4. R.S.33:1-12 is amended to read as follows:
33:1-12. Class C licenses shall be subdivided and classified as follows:
Plenary retail consumption license. 1. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages or hemp-derived beverages in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) for consumption on the licensed premises by the glass or other open receptacle, and also to sell any alcoholic beverages or hemp-derived beverages in original containers for consumption off the licensed premises; but this license shall not be issued to permit the sale of alcoholic beverages or hemp-derived beverages in or upon any premises in which a grocery, delicatessen, drug store or other mercantile business is carried on, except as hereinafter provided. The holder of this license shall be permitted to conduct consumer wine, beer, [and] spirits, and hemp-derived beverages tasting events and samplings for a fee or on a complimentary basis pursuant to conditions established by rules and regulations of the Division of Alcoholic Beverage Control, provided however, that the holder of this license complies with the terms and conditions set forth in section 3 of P.L.2009, c.216 (C.33:1-12d). Subject to such rules and regulations established from time to time by the director, the holder of this license shall be permitted to sell alcoholic beverages or hemp-derived beverages in or upon the premises in which any of the following is carried on: the keeping of a hotel or restaurant including the sale of mercantile items incidental thereto as an accommodation to patrons; the sale, at an entertainment facility as defined in R.S.33:1-1, having a seating capacity for no less than 4,000 patrons, of mercantile items traditionally associated with the type of event or program held at the site; the sale of distillers', brewers' and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this section; the sale of cigars, cigarettes, packaged crackers, chips, nuts and similar snacks and ice at retail as an accommodation to patrons, or the retail sale of nonalcoholic beverages as accessory beverages to alcoholic beverages; or, in commercial bowling establishments, the retail sale or rental of bowling accessories and the retail sale from vending machines of candy, ice cream and nonalcoholic beverages. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $250 and not more than $2,500. No ordinance shall be enacted which shall raise or lower the fee to be charged for this license by more than 20% from that charged in the preceding license year or $500.00, whichever is the lesser. The governing board or body of each municipality may, by ordinance, enact that no plenary retail consumption license shall be granted within its respective municipality.
The holder of this license shall be permitted to obtain a restricted brewery license issued pursuant to subsection 1c. of R.S.33:1-10 and to operate a restricted brewery immediately adjoining the licensed premises in accordance with the restrictions set forth in that subsection. All fees related to the issuance of both licenses shall be paid in accordance with statutory law.
Seasonal retail consumption license. 2. (1) The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages or hemp-derived beverages for consumption on the licensed premises by the glass or other open receptacle, and also to sell any alcoholic beverages or hemp-derived beverages in original containers for consumption off the licensed premises, during the summer season from May 1 until November 14, inclusive, or during the winter season from November 15 until April 30, inclusive.
(2) In addition, the director shall issue to the holder of this license, upon request by the licensee, one-day permits that shall entitle the license holder to sell alcoholic beverages for consumption on the licensed premises during the season when the license holder is not authorized to sell alcoholic beverages pursuant to subparagraph (1) of this subsection. The number of one-day permits issued to a licensee pursuant to this subsection shall not exceed an aggregate of 14 permits in one calendar year. A one-day permit issued pursuant to this subsection shall be valid for 24 consecutive hours. The fee for each one-day permit shall be $500.
The governing body of the municipality in which the licensed premises is situated may place reasonable conditions upon a one-day permit for the purpose of maintaining public safety on the licensed premises and immediately surrounding area. The costs associated with the reasonable conditions placed on the one-day permit shall be assumed by the holder of this license.
(3) This license shall not be issued to permit the sale of alcoholic beverages or hemp-derived beverages in or upon any premises in which a grocery, delicatessen, drug store or other mercantile business is carried on, except as hereinafter provided. Subject to such rules and regulations established from time to time by the director, the holder of this license shall be permitted to sell alcoholic beverages or hemp-derived beverages in or upon the premises in which any of the following is carried on: the keeping of a hotel or restaurant including the sale of mercantile items incidental thereto as an accommodation to patrons; the sale of distillers', brewers' and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this section; the sale of cigars, cigarettes, packaged crackers, chips, nuts and similar snacks and ice at retail as an accommodation to patrons; or the retail sale of nonalcoholic beverages as accessory beverages to alcoholic beverages. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at 75% of the fee fixed by said board or body for plenary retail consumption licenses. The governing board or body of each municipality may, by ordinance, enact that no seasonal retail consumption license shall be granted within its respective municipality.
Plenary retail distribution license. 3. a. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages [or intoxicating hemp beverages pursuant to section 5 of P.L.2024, c.73 (C.24:6I-48.2),] or hemp-derived beverages in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill), for consumption off the licensed premises, but only in original containers; except that licensees shall be permitted to conduct consumer wine, beer, [and] spirits, and hemp-derived beverages tasting events and samplings on a complimentary basis pursuant to conditions established by rules and regulations of the Division of Alcoholic Beverage Control, provided however, that the holder of this license complies with the terms and conditions set forth in section 3 of P.L.2009, c.216 (C.33:1-12d).
The governing board or body of each municipality may, by ordinance, enact that this license shall not be issued to permit the sale of alcoholic beverages or hemp-derived beverages in or upon any premises in which any other mercantile business is carried on, except that any such ordinance, heretofore or hereafter adopted, shall not prohibit the retail sale of distillers', brewers' and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this act; cigars, cigarettes, packaged crackers, chips, nuts and similar snacks, ice, and nonalcoholic beverages as accessory beverages to alcoholic beverages. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $125 and not more than $2,500. No ordinance shall be enacted which shall raise or lower the fee to be charged for this license by more than 20% from that charged in the preceding license year or $500.00, whichever is the lesser. The governing board or body of each municipality may, by ordinance, enact that no plenary retail distribution license shall be granted within its respective municipality.
Limited retail distribution license. 3. b. The holder of this license shall be entitled, subject to rules and regulations, to sell any unchilled, brewed, malt alcoholic beverages in quantities of not less than 72 fluid ounces for consumption off the licensed premises, but only in original containers; provided, however, that this license shall be issued only for premises operated and conducted by the licensee as a bona fide grocery store, meat market, meat and grocery store, delicatessen, or other type of bona fide food store at which groceries or other foodstuffs are sold at retail; and provided further that this license shall not be issued except for premises at which the sale of groceries or other foodstuffs is the primary and principal business and at which the sale of alcoholic beverages is merely incidental and subordinate thereto. The fee for this license shall be fixed by the governing body or board of the municipality in which the licensed premises are situated, by ordinance, at not less than $31 and not more than $63. The governing board or body of each municipality may, by ordinance, enact that no limited retail distribution license shall be granted within its respective municipality.
Plenary retail transit license. 4. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages or hemp-derived beverages, for consumption only, on railroad trains, airplanes, limousines and boats, while in transit. The fee for this license for use by a railroad or air transport company shall be $375, for use by the owners of limousines shall be $31 per vehicle, and for use on a boat shall be $63 on a boat 65 feet or less in length, $125 on a boat more than 65 feet in length but not more than 110 feet in length, and $375 on a boat more than 110 feet in length; such boat lengths shall be determined in the manner prescribed by the Bureau of Customs of the United States Government or any federal agency successor thereto for boat measurement in connection with issuance of marine documents. A license issued under this provision to a railroad or air transport company shall cover all railroad cars and planes operated by any such company within the State of New Jersey. A license for a boat or limousine issued under this provision shall apply only to the particular boat or limousine for which issued, and shall permit the purchase of alcoholic beverages or hemp-derived beverages for sale or service in a boat or limousine to be made from any Class A and B licensee or from any Class C licensee whose license privilege permits the sale of alcoholic beverages or hemp-derived beverages in original containers for off-premises consumption. An interest in a plenary retail transit license issued in accordance with this section shall be excluded in determining the maximum number of retail licenses permitted under P.L.1962, c.152 (C.33:1-12.31 et seq.).
Club license. 5. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages or hemp-derived beverages but only for immediate consumption on the licensed premises and only to bona fide club members and their guests. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $63 and not more than $188. The governing board or body of each municipality may, by ordinance, enact that no club licenses shall be granted within its respective municipality. Club licenses may be issued only to such corporations, associations and organizations as are operated for benevolent, charitable, fraternal, social, religious, recreational, athletic, or similar purposes, and not for private gain, and which comply with all conditions which may be imposed by the Director of the Division of Alcoholic Beverage Control by rules and regulations.
The provisions of section 23 of P.L.2003, c.117 amendatory of this section shall apply to licenses issued or transferred on or after July 1, 2003, and to license renewals commencing on or after July 1, 2003.
Sporting facility license. 6. The holder of this license shall be entitled, subject to rules and regulations, to sell at retail or to serve any alcoholic beverages or hemp-derived beverages as the owner, operator, lessee, or concessionaire of a sporting facility by the glass or other receptacle or in original containers only on the premises of the sporting facility.
Notwithstanding any other provision of Title 33 of the Revised Statutes and subject to conditions established by the director, the holder of this license may share direction and control of the premises to be licensed and share proceeds and profits from the sale of alcoholic beverages or hemp-derived beverages with the owner, operator, concessionaire, or lessee of the facility. The holder of this license shall be permitted to conduct consumer wine, beer, [and] spirits, and hemp-derived beverages tasting events and samplings for a fee or on a complimentary basis provided, however, the license holder complies with the provisions of section 3 of P.L.2009, c.216 (C.33:1-12d) and rules and regulations promulgated thereto. Notwithstanding any law, rule or regulation to the contrary, the holder of this license shall be entitled to establish an all-inclusive area within the licensed sporting facility, provided the all-inclusive area is limited to one area within the sporting facility for each game or event and the capacity of the all-inclusive area does not exceed 500 persons.
The fee for this license shall be $2,500 for venues with a capacity of less than 7,500 persons; $5,000 for venues with a capacity of not less than 7,500 persons but not more than 14,999 persons; $7,500 for venues with a capacity of not less than 15,000 persons but not more than 22,499 persons; and $10,000 for venues with a capacity of 22,500 persons or more.
For the purposes of this subsection:
"Sporting facility" means a stadium, arena, team training facility, or similar venue located on public property where alcoholic beverages are served or sold at retail for consumption on the premises by the glass or other open receptacle or in original containers.
"Team training facility" shall include team offices and team headquarters.
(cf: P.L.2024, c.73, s.6)
5. Section 41 of P.L.2021, c.16 (C.24:6I-50) is amended to read as follows:
41. Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund.
a. All fees and penalties collected by the commission, and all tax revenues on retail sales of cannabis items, and all tax revenues collected pursuant to the provisions of the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.), except for amounts credited to the Property Tax Reform Account in the Property Tax Relief Fund pursuant to paragraph 7 of Section I of Article VIII of the New Jersey Constitution, all revenues, if any, collected for the Social Equity Excise Fee pursuant to section 39 of P.L.2021, c.16 (C.54:47F-1), [all tax revenues on the retail sale of intoxicating hemp beverages by any plenary retail distribution license holder , as well as any fees associated with the approval provided to any plenary wholesale license holder to sell intoxicating hemp beverages , as defined pursuant to section 5 of P.L.2024, c.73 (C.C:24:6I-48.2),] shall be deposited in a special nonlapsing fund which shall be known as the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund," with 15 percent of the monies deposited being placed into an account within the fund to be known as the "Underage Deterrence and Prevention Account."
b. Monies in the fund, other than any monies derived from the Social Equity Excise Fee to be appropriated annually in accordance with subsection d. of this section and the monies placed into the "Underage Deterrence and Prevention Account" within the fund for the commission to fund programs and services in accordance with subsection e. of this section, shall be appropriated annually as follows:
(1) at least 70 percent of all tax revenues on retail sales of cannabis items shall be appropriated for investments, including through grants, loans, reimbursements of expenses, and other financial assistance, in municipalities defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33), as well as provide direct financial assistance to qualifying persons residing therein as recommended by the commission; and (2) the remainder of the monies in the fund shall be appropriated by the Legislature to include the following:
(a) to oversee the development, regulation, and enforcement of activities associated with the personal use of cannabis pursuant to P.L.2021, c.16 (C.24:6I-31 et al.), and assist with assuming responsibility from the Department of Health for the further development and expansion, regulation, and enforcement of activities associated with the medical use of cannabis pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.);
(b) to reimburse the expenses incurred by any county or municipality for the training costs associated with the attendance and participation of a police officer from its law enforcement unit, as those terms are defined in section 2 of P.L.1961, c.56 (C.52:17B-67), in a program provided by an approved school, also defined in that section, which trains and certifies the police officer, including a police officer with a working dog as that term is defined in section 1 of P.L.2006, c.88 (C.10:5-29.7), as a Drug Recognition Expert for detecting, identifying, and apprehending drug-impaired motor vehicle operators, and pay for the same training costs incurred by the Division of State Police in the Department of Law and Public Safety for the training of a State police officer or trooper, including an officer or trooper with a working dog, as a Drug Recognition Expert, as well as its costs in furnishing additional program instructors to provide Drug Recognition Expert training to police officers, troopers, and working dogs. A municipality or county seeking reimbursement shall apply to the commission, itemizing the costs, with appropriate proofs, for which reimbursement is requested and provide a copy of the certificate issued to the police officer to indicate the successful completion of the program by the police officer, and that officer's working dog, if applicable; and
(c) for further investments, including through grants, loans, reimbursements of expenses, and other financial assistance, in municipalities defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33), as well as provide direct financial assistance to qualifying persons residing therein as recommended by the commission.
The monies appropriated pursuant to paragraph (1) of this subsection shall be offset by any revenue constitutionally dedicated to municipalities defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33).
c. Any remaining available monies, after the appropriation of those monies in the fund in accordance with subsection b. of this section, shall be deposited in the State's General Fund.
d. (1) (a) Not less than 60 days prior to the first day of each State fiscal year, the commission shall consult and make recommendations to the Governor and Legislature for making social equity appropriations based upon the amount of any revenues collected during the current fiscal year for the Social Equity Excise Fee pursuant to section 39 of P.L.2021, c.16 (C.54:47F-1), or, if the commission has not imposed or adjusted the excise fee in the current fiscal year pursuant to that section, then appropriations to be made from the General Fund in an amount equal to the revenues that would have been collected had it imposed or adjusted the fee, in order to invest, through grants, loans, reimbursements of expenses, and other financial assistance, in private for-profit and non-profit organizations, public entities, including any municipality defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33) as well as provide direct financial assistance to qualifying persons as determined by the commission, in order to create, expand, or promote educational and economic opportunities and activities, and the health and well-being of both communities and individuals.
(b) Not less than 30 days prior to submitting its recommendations to the Governor and Legislature pursuant to subparagraph (a) of this paragraph, the commission shall hold at least three regional public hearings throughout the State, with at least one hearing in the northern, central, and southern regions of the State, to solicit the public input on the social equity investments to be made as described in this section.
(2) The commission's recommendations to the Governor and Legislature may include, but are not limited to, recommending investments in the following categories of social equity programs:
(a) educational support, including literacy programs, extended learning time programs that endeavor to close the achievement gap and provide services for enrolled students after the traditional school day, GED application and preparedness assistance, tutoring programs, vocational programming, and financial literacy;
(b) economic development, including the encouragement and support of community activities so as to stimulate economic activity or increase or preserve residential amenities, and business marketing, and job skills and readiness training, specific employment training, and apprenticeships;
(c) social support services, including food assistance, mental health services, substance use disorders treatment and recovery, youth recreation and mentoring services, life skills support services, and reentry and other rehabilitative services for adults and juveniles being released from incarceration; and
(d) legal aid for civil and criminal cases, regardless of a party's citizenship or immigration status.
(3) The commission may also, subject to the annual appropriations act, recommend that it retain a portion of the Social Equity Excise Fee to administer startup grants, low-interest loans, application fee assistance, and job training programs through the commission's Office of Minority, Disabled Veterans and Women Cannabis Business Development established by section 32 of P.L.2019, c.153 (24:6I-25).
(4) Prior to the first day of each fiscal year, the Legislature shall provide to the commission a statement which lists the investments, including the investment recipients and investment amount, to be made by appropriations as set forth in paragraph (1) of this subsection based upon recommendations presented to the Governor and Legislature pursuant to paragraphs (1) through (3) of this subsection, and how the investment is intended to support and advance social equity as described in this subsection.
e. The monies deposited in the "Underage Deterrence and Prevention Account" within the fund shall be used by the commission, based on the acceptance of applications submitted on a form and through an approval or denial process promulgated by the commission, to fund private for-profit and non-profit organizations, and county and municipal programs and services that offer social services, educational, recreational, and employment opportunities, and local economic development designed to encourage, improve, and support youthful community activities to divert and prevent persons under 18 years of age from activities associated with the consumption of cannabis items, or marijuana or hashish.
(cf: P.L.2024, c.73, s.7)
6. Section 40 of P.L.2021, c.16 (C.40:48I-1) is amended to read as follows:
40. Optional Local Cannabis Transfer Tax and User Tax.
a. (1) A municipality may adopt an ordinance imposing a transfer tax on the sale of cannabis or cannabis items by a cannabis establishment [or a holder of a plenary wholesale license or plenary retail distribution license selling an intoxicating hemp beverage in accordance with section 5 of P.L.2024, c.73 (C.24:6I-48.2)] that is located in the municipality. At the discretion of the municipality, the tax may be imposed on: receipts from the sale of cannabis by a cannabis cultivator to another cannabis cultivator; receipts from the sale of cannabis items from one cannabis establishment to another cannabis establishment; receipts from the retail sales of cannabis items [or intoxicating hemp beverages] by a cannabis retailer [or a holder of a plenary wholesale license or plenary retail distribution license] to retail consumers who are 21 years of age or older; or any combination thereof. Each municipality shall set its own rate or rates, but in no case shall a rate exceed: two percent of the receipts from each sale by a cannabis cultivator; two percent of the receipts from each sale by a cannabis manufacturer; one percent of the receipts from each sale by a cannabis wholesaler; and two percent of the receipts from each sale by a cannabis retailer [or holder of a plenary wholesale license or plenary retail distribution license].
(2) A local tax ordinance adopted pursuant to paragraph (1) of this subsection shall also include provisions for imposing a user tax, at the equivalent transfer tax rates, on any concurrent license holder, as permitted by section 33 of P.L.2021, c.16 (C.24:6I-46), operating more than one cannabis establishment [, or on any concurrent holder of plenary wholesale licenses or plenary retail distribution licenses]. The user tax shall be imposed on the value of each transfer or use of cannabis or cannabis items not otherwise subject to the transfer tax imposed pursuant to paragraph (1) of this subsection, from the license holder's establishment that is located in the municipality to any of the other license holder's establishments, whether located in the municipality or another municipality.
b. (1) A transfer tax or user tax imposed pursuant to this section shall be in addition to any other tax imposed by law. Any transaction for which the transfer tax or user tax is imposed, or could be imposed, pursuant to this section, other than those which generate receipts from the retail sales by cannabis retailers [or a holder of a plenary wholesale license or plenary retail distribution license], shall be exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). The transfer tax or user tax shall be collected or paid, and remitted to the municipality by the cannabis establishment [or the holder of the plenary wholesale license or plenary retail distributor license] from the cannabis establishment [, plenary wholesale license holder, or plenary retail distributor] purchasing or receiving the cannabis or cannabis item, or from the consumer at the point of sale, on behalf of the municipality by the cannabis retailer [, plenary wholesale license holder, or plenary retail distributor] selling the cannabis item to that consumer. The transfer tax or user tax shall be stated, charged, and shown separately on any sales slip, invoice, receipt, or other statement or memorandum of the price paid or payable, or equivalent value of the transfer, for the cannabis or cannabis item.
(2) Every cannabis establishment [, plenary wholesale license holder, or plenary retail distributor] required to collect a transfer tax or user tax imposed by ordinance pursuant to this section shall be personally liable for the transfer tax or user tax imposed, collected, or required to be collected under this section. Any cannabis establishment [, plenary wholesale license holder, or plenary retail distributor] shall have the same right with respect to collecting the transfer tax or user tax from another cannabis establishment [, plenary retail distributor, plenary whole license holder,] or the consumer as if the transfer tax or user tax was a part of the sale and payable at the same time, or with respect to non-payment of the transfer tax or user tax by the cannabis establishment[, plenary retail distributor, plenary whole license holder,] or consumer, as if the transfer tax or user tax was a part of the purchase price of the cannabis or cannabis item, or equivalent value of the transfer of the cannabis or cannabis item, and payable at the same time; provided, however, that the chief fiscal officer of the municipality which imposes the transfer tax or user tax shall be joined as a party in any action or proceeding brought to collect the transfer tax or user tax.
(3) No cannabis establishment [, plenary wholesale license holder, or plenary retail distributor] required to collect a transfer tax or user tax imposed by ordinance pursuant to this section shall advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the transfer tax or user tax will not be separately charged and stated to another cannabis establishment[, plenary retail distributor, plenary whole license holder,] or the consumer, or that the transfer tax or user tax will be refunded to the cannabis establishment[, plenary retail distributor, plenary whole license holder,] or the consumer.
c. (1) All revenues collected from a transfer tax or user tax imposed by ordinance pursuant to this section shall be remitted to the chief financial officer of the municipality in a manner prescribed by the municipality. The chief financial officer shall collect and administer any transfer tax or user tax imposed by ordinance pursuant to this section. The municipality shall enforce the payment of delinquent taxes or transfer fees imposed by ordinance pursuant to this section in the same manner as provided for municipal real property taxes.
(2) (a) In the event that the transfer tax or user tax imposed by ordinance pursuant to this section is not paid as and when due by a cannabis establishment [, plenary wholesale license holder, or plenary retail distributor], the unpaid balance, and any interest accruing thereon, shall be a lien on the parcel of real property comprising the cannabis establishment's [, plenary wholesale license holder, or plenary retail distributor] premises in the same manner as all other unpaid municipal taxes, fees, or other charges. The lien shall be superior and paramount to the interest in the parcel of any owner, lessee, tenant, mortgagee, or other person, except the lien of municipal taxes, and shall be on a parity with and deemed equal to the municipal lien on the parcel for unpaid property taxes due and owing in the same year.
(b) A municipality shall file in the office of its tax collector a statement showing the amount and due date of the unpaid balance and identifying the lot and block number of the parcel of real property that comprises the delinquent cannabis establishment's [, plenary wholesale license holder, or plenary retail distributor] premises. The lien shall be enforced as a municipal lien in the same manner as all other municipal liens are enforced.
d. As used in this section:
"Cannabis" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Cannabis cultivator" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Cannabis establishment" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Cannabis items" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Cannabis manufacturer" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Cannabis retailer" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Cannabis wholesaler" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Consumer" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
"Premises" means the same as that term is defined in section 3 of P.L.2021, c.16 (C.24:6I-33).
(cf: P.L.2024, c.73, s.9)
7. R.S.33:1-11 is amended to read as follows:
33:1-11. Class B licenses shall be subdivided and classified as follows:
Plenary wholesale license. 1. The holder of this license shall be entitled, subject to rules and regulations, to sell and distribute alcoholic beverages [or intoxicating hemp beverages, in accordance with section 5 of P.L.2024, c.73 (C.24:6I-48.2),] or hemp-derived beverages in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill), to retailers and wholesalers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse and salesroom; provided, however, that the delivery of such alcoholic beverages by the holder of this license to retailers licensed under this Title shall be from inventory in a warehouse located in New Jersey which is operated under a plenary wholesale license. The fee for this license shall be $8,750.
Limited wholesale license. 2a. The holder of this license shall be entitled, subject to rules and regulations, to sell and distribute brewed malt alcoholic beverages and naturally fermented wines to retailers and wholesalers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse and salesroom. The fee for this license shall be $1,875.
Wine wholesale license. 2b. The holder of this license shall be entitled, subject to rules and regulations, to sell and distribute any naturally fermented, treated, blended, fortified and sparkling wines to retailers and wholesalers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse and salesroom; provided, however, that the delivery of such wines by the holder of this license to retailers licensed under this Title shall be from inventory in a warehouse located in New Jersey which is operated under a wine wholesale license. The fee for this license shall be $3,750.
State beverage distributor's license. 2c.(1) The holder of this license shall be entitled, subject to rules and regulations, to sell and distribute unchilled, brewed, malt alcoholic beverages in original containers only, in quantities of not less than 144 fluid ounces and chilled draught malt alcoholic beverages in kegs, barrels or other similar containers of at least one fluid gallon in capacity, to retailers licensed in accordance with this chapter, and to sell and distribute without this State to any person pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse and salesroom. The holder of this license may sell unchilled, brewed, malt alcoholic beverages in original containers only, in quantities of not less than 144 fluid ounces and chilled draught malt alcoholic beverages in kegs, barrels or other similar containers of at least 7.75 fluid gallons in capacity, at retail; provided, however, that such sales shall be made only for consumption off the licensed premises. This license shall not be issued to any person holding a plenary or limited brewery license, nor shall it be issued to any person directly or indirectly interested in any brewery within or without this State. This license shall not be issued for premises in or upon which any retail business, except the sale of malt alcoholic beverages and nonalcoholic beverages, is carried on. The fee for this license shall be $1,031.
(2) After the effective date of P.L.1995, c. 309 any license issued or transferred pursuant to this subsection for a premises located in a municipality in a county of the fifth or sixth class shall be limited to prohibit retail sales.
(3) The holder of a license issued pursuant to this subsection shall not be entitled to sell malt alcoholic beverages at retail as provided in paragraph (1) of this subsection, at hours of the day or on days of the week during which sales by holders of plenary retail distributors licenses are prohibited in the municipality in which the licensed premises is located or in a municipality which, in accordance with the provisions of this title, prohibits all retail sales of wine and malt alcoholic beverages in original bottle or can containers.
The provisions of section 22 of P.L.2003 , c.117 amendatory of this section shall apply to licenses issued or transferred on or after July 1, 2003, and to license renewals commencing on or after July 1, 2003.
(cf: P.L.2024, c.73, s.10)
8. (New section) Licensing of Hemp-Derived Consumable Products. a. (1) A person or entity that is in the business of manufacturing or selling a hemp-derived consumable product in this State, including a distributor, manufacturer, producer, supplier, seller, or retailer, shall obtain a license from the department authorizing the person or entity to engage in such business prior to the commencement of business or within 30 days from when the department adopts procedures and regulations for the application of a license, whichever is later. Such license shall be valid for a period of one year and may be renewed annually pursuant to rules and regulations adopted by the department. Renewal fees shall be identical to those established pursuant to subsection b. of this section.
(2) Notwithstanding paragraph (1) of this subsection, if a person or entity is a holder of any valid and unrevoked plenary brewery license, limited brewery license, restricted brewery license, plenary wholesale license, plenary retail consumption license, plenary retail distribution license, seasonal retail consumption license, plenary retail transit license, club license, or sporting facility license, as those terms are defined in R.S.33:1-10, R.S.33:1-11, and R.S.33:1-12, then the person or entity shall be permitted to sell hemp-derived beverages upon the payment of the annual licensing fee required pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) and shall remain registered with the New Jersey Division of Alcoholic Beverage Control.
(3) Notwithstanding paragraphs (1) or (2) of this subsection, if a person or entity is a holder of any valid and unrevoked limited brewery license or restricted brewery license, as those terms are defined in R.S.33:1-10, then the person or entity shall be able to manufacture and retail hemp-derived beverages so long as they pay the annual licensing fees required under this P.L. , c. (C. ) (pending before the Legislature as this bill) and shall remain registered with the New Jersey Division of Alcoholic Beverage Control.
(4) Notwithstanding paragraph (1) of this subsection, if a person or entity is a holder of any valid and unrevoked Class 5 Cannabis Retailer License issued pursuant to P.L.2021, c.16 (C.24:6I-31 et al.), then the person or entity shall be permitted to sell hemp-derived consumable products upon the payment of the annual licensing fee required pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) and shall remain registered with the Cannabis Regulatory Commission.
b. In order to obtain and maintain a license pursuant to subsection a. of this section, a person shall:
(1) Submit information as required by the department in accordance with the rules and regulations adopted by the department pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill);
(2) (a) For a distributor, manufacturer, producer, or supplier license, pay a fee of $500;
(b) For a seller or retailer license, pay a fee of $250 per location;
(3) Consent to reasonable inspection by the New Jersey Division of Consumer Affairs in the Department of Law and Public Safety;
(4) Consent to the future sampling of any hemp-derived consumable products by the department; and
(5) Submit to a criminal history background check, including fingerprinting;
c. No person shall operate a retail business which sells hemp-derived consumable products within 1,000 feet of any elementary or secondary school, or any municipal or county playground. This subsection shall not apply to a retail business which sells hemp-derived consumable products already lawfully operating on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) or in any instance where an elementary or secondary school is subsequently established within 1,000 feet.
d. The department shall be authorized to:
(1) determine requirements for obtaining licenses;
(2) issue, deny, or revoke licenses related to the manufacture and sale of hemp-derived consumable products in this State; and
(3) establish and issue any additional civil penalties for any violation of rules and regulations adopted by the department or any violation of P.L. , c. (C. ) (pending before the Legislature as this bill).
e. All taxes, fees, penalties, and revenues collected pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deposited into the "New Jersey Hemp Farming Fund," established pursuant to section 8 of P.L.2019, c.238 (C.4:28-13).
f. Any business which lawfully manufactures, distributes, or sells hemp-derived consumable products prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) may continue to operate until such time that the department adopts rules and regulations pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) related to licensing and applications.
9. R.S.33:1-10 is amended to read as follows:
33:1-10. Class A licenses shall be subdivided and classified as follows:
Plenary brewery license. 1a. The holder of this license shall be entitled, subject to rules and regulations, to brew any malt alcoholic beverages or hemp-derived beverages and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse; provided, however, that the delivery of this product by the holder of this license to retailers licensed under this title shall be from inventory in a warehouse located in this State which is operated under a plenary brewery license. The fee for this license shall be $10,625.
Limited brewery license. 1b. The holder of this license shall be entitled, subject to rules and regulations, to brew any malt alcoholic beverages or hemp-derived beverages in a quantity to be expressed in said license, dependent upon the following fees and not in excess of 300,000 barrels of 31 fluid gallons capacity per year and to sell and distribute this product to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse; provided, however, that the delivery of this product by the holder of this license to retailers licensed under this title shall be from inventory in a warehouse located in this State which is operated under a limited brewery license. The holder of this license shall be entitled to sell this product at retail to consumers on the licensed premises of the brewery for consumption on the premises, or in a quantity of not more than 15.5 fluid gallons per person for consumption off the premises, and to offer samples for sampling purposes. The holder of the license shall be entitled to be a manufacturer, retailer, seller, or supplier of hemp-derived beverages, as those terms are defined in section 3 of P.L.2019, c.238 (C.4:28-8) and in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill). The holder of this license shall not be required to pay a fee to the division for the privilege of offering samples pursuant to this section. If the holder of this license holds a bonded warehouse bottling license issued pursuant to subsection 5 of this section, product brewed in accordance with this subsection and transferred to a bonded warehouse for bottling and storage may be sold at retail and offered for sampling on the licensed premises of the brewery by the holder of this license. The holder of this license shall not sell food or operate a restaurant on the licensed premises, but may coordinate with food vendors pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b). The holder of this license shall be entitled to engage in the privileges established pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b).
The fee for this license shall be graduated as follows:
to so brew not more than 50,000 barrels of 31 liquid gallons capacity per annum, $1,250;
to so brew not more than 100,000 barrels of 31 fluid gallons capacity per annum, $2,500;
to so brew not more than 200,000 barrels of 31 fluid gallons capacity per annum, $5,000;
to so brew not more than 300,000 barrels of 31 fluid gallons capacity per annum, $7,500.
For the purposes of this subsection, "sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding four ounces of any malt alcoholic beverage. For the purposes of this subsection, "product" means any malt alcoholic beverage that is produced on the premises licensed under this subsection.
Restricted brewery license. 1c. The holder of this license shall be entitled, subject to rules and regulations, to brew any malt alcoholic beverages or hemp-derived beverages in a quantity to be expressed in such license not in excess of 300,000 barrels of 31 gallons capacity per year. Notwithstanding the provisions of R.S.33:1-26, the director shall issue a restricted brewery license only to a person or an entity which has identical ownership to an entity which holds a plenary retail consumption license issued pursuant to R.S.33:1-12, provided that such plenary retail consumption license is operated in conjunction with a restaurant regularly and principally used for the purpose of providing meals to its customers and having adequate kitchen and dining room facilities, and that the licensed restaurant premises is immediately adjoining the premises licensed under this subsection. The holder of this license shall be entitled to sell or deliver the product to that restaurant premises. The holder of this license also shall be entitled to sell and distribute the product to wholesalers and retailers licensed in accordance with this chapter and to sell and distribute without this State to any persons pursuant to the laws of those places of such sale and distribution, and to maintain a warehouse; provided, however, that the delivery of this product by the holder of this license to retailers licensed under this title shall be from inventory in a warehouse located in this State which is operated under a restricted brewery license. The holder of the license shall be entitled to be a manufacturer, retailer, and seller of hemp-derived beverages, as those terms are defined in section 3 of P.L.2019, c.238 (C.4:28-8) and in accordance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill). The amount of malt alcoholic beverages that may be sold and distributed directly to retailers pursuant to this subsection on an annual basis shall be not more than 50 percent of the product manufactured in that year by the holder of this license. The fee for this license shall be $1,250, which fee shall entitle the holder to brew up to 1,000 barrels of 31 liquid gallons per annum. The licensee also shall pay an additional $250 for every additional 1,000 barrels of 31 fluid gallons produced. The fee shall be paid at the time of application for the license, and additional payments based on barrels produced shall be paid within 60 days following the expiration of the license term upon certification by the licensee of the actual gallons brewed during the license term. No more than 10 restricted brewery licenses shall be issued to a person or entity which holds an interest in a plenary retail consumption license. If the governing body of the municipality in which the licensed premises will be located should file a written objection, the director shall hold a hearing and may issue the license only if the director finds that the issuance of the license will not be contrary to the public interest. All fees related to the issuance of both licenses shall be paid in accordance with statutory law. The provisions of this subsection shall not be construed to limit or restrict the rights and privileges granted by the plenary retail consumption license held by the holder of the restricted brewery license issued pursuant to this subsection.
The holder of this license shall be entitled to offer samples of its product for promotional purposes at charitable or civic events off the licensed premises pursuant to an annual permit issued by the director.
For the purposes of this subsection, "sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding four ounces of any malt alcoholic beverage product. For the purposes of this subsection, "product" means any malt alcoholic beverage that is produced on the premises licensed under this subsection.
Farm brewery license. 1d. The holder of this license shall be entitled, subject to rules and regulations, to brew any malt alcoholic beverages in a quantity to be expressed in the license not in excess of 2,500 barrels of 31 fluid gallons per year and to sell products to consumers for consumption off the licensed premises and to offer samples for sampling purposes only. The license shall be issued only when the brewery at which such malt alcoholic beverages are brewed is located and constructed upon a tract of land exclusively under the control of the licensee, the licensee is actively engaged in farming on or adjacent to the brewery premises, and the malt alcoholic beverages are substantially produced from hops or other ingredients grown or cultivated on that tract of land. The holder of this license shall not sell or offer food for consumption on the licensed premises.
The fee for this license shall be graduated as follows: to manufacture between 1,200 and 2,500 barrels per year, $300; to manufacture between 100 and 1,199 barrels per year, $200; to manufacture fewer than 100 barrels per year, $100. An individual or entity shall not hold more than one farm brewery license.
For purposes of this subsection, "sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding one and one-half ounces of a malt alcoholic beverage.
Plenary winery license. 2a. Provided that the holder is engaged in growing and cultivating grapes or fruit used in the production of wine on at least three acres on, or adjacent to, the winery premises, except as otherwise provided in this subsection for certain alternating proprietorship agreements, the holder of this license shall be entitled, subject to rules and regulations, to produce any fermented wines, and to blend, fortify and treat wines, and to sell and distribute his products to wholesalers licensed in accordance with this chapter and to churches for religious purposes, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse, and to sell his products at retail to consumers on the licensed premises of the winery for consumption on or off the premises and to offer samples for sampling purposes only. The fee for this license shall be $938. A holder of this license who produces not more than 250,000 gallons per year shall also have the right to sell and distribute his products to retailers licensed in accordance with this chapter, except that the holder of this license shall not use a common carrier for such distribution. The fee for this additional privilege shall be graduated as follows: a licensee who manufactures more than 150,000 gallons, but not in excess of 250,000 gallons per annum, $1,000; a licensee who manufactures more than 100,000 gallons, but not in excess of 150,000 gallons per annum, $500; a licensee who manufactures more than 50,000 gallons, but not in excess of 100,000 gallons per annum, $250; a licensee who manufactures 50,000 gallons or less per annum, $100. A holder of this license who produces not more than 250,000 gallons per year shall have the right to sell such wine at retail in original packages in 15 salesrooms apart from the winery premises for consumption on or off the premises and for sampling purposes for consumption on the premises, at a fee of $250 for each salesroom. Licensees shall not jointly control and operate salesrooms. Additionally, the holder of this license who produces not more than 250,000 gallons per year may ship not more than 12 cases of wine per year, subject to regulation, to any person within or without this State over 21 years of age for personal consumption and not for resale. A case of wine shall not exceed a maximum of nine liters. A copy of the original invoice shall be available for inspection by persons authorized to enforce the alcoholic beverage laws of this State for a minimum period of three years at the licensed premises of the winery. For the purposes of this subsection, "sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding one and one-half ounces of any wine.
A holder of this license who produces not more than 250,000 gallons per year shall not own, either in whole or in part, or hold, either directly or indirectly, any interest in a winery that produces more than 250,000 gallons per year. In addition, a holder of this license who produces more than 250,000 gallons per year shall not own, either in whole or in part, or hold, either directly or indirectly, any interest in a winery that produces not more than 250,000 gallons per year.
An applicant for a plenary winery license or the holder of a plenary winery license may apply to the director for approval to enter into an agreement with a host New Jersey winery to use the host's equipment and space in an alternating proprietorship for production of wine, provided that the applicant or holder has obtained approval of the proposed alternating proprietorship arrangement from the Alcohol and Tobacco Tax and Trade Bureau. The director shall approve the agreement if the director determines that the Alcohol and Tobacco Tax and Trade Bureau has approved the agreement and the agreement does not violate any applicable New Jersey alcohol licensing and taxation laws and related regulations or special rulings of the director. The director shall approve or deny the application no later than 180 days after receipt of the application, unless the applicant agrees to an extension.
An applicant for a plenary winery license who also applies to the director to enter into an alternating proprietorship agreement pursuant to this subsection shall, upon approval by the director of both applications, be permitted to grow and cultivate grapes or fruit used in the production of wine on at least three acres within a five-mile radius of the host winery premises.
For the purposes of this subsection, "product" means any wine that is produced, blended, fortified, or treated by the licensee on its licensed premises situated in the State of New Jersey. For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.
Farm winery license. 2b. The holder of this license shall be entitled, subject to rules and regulations, to manufacture any fermented wines and fruit juices in a quantity to be expressed in said license, dependent upon the following fees and not in excess of 50,000 gallons per year and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter and to churches for religious purposes and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse and to sell at retail to consumers for consumption on or off the licensed premises and to offer samples for sampling purposes only. The license shall be issued only when the winery at which such fermented wines and fruit juices are manufactured is located and constructed upon a tract of land exclusively under the control of the licensee, provided that the licensee is actively engaged in growing and cultivating an area of not less than three acres on or adjacent to the winery premises and on which are growing grape vines or fruit to be processed into wine or fruit juice, except in the case of certain alternating proprietorship agreements, as provided in this subsection; and provided, further, that for the first five years of the operation of the winery such fermented wines and fruit juices shall be manufactured from at least 51 percent grapes or fruit grown in the State and that thereafter they shall be manufactured from grapes or fruit grown in this State at least to the extent required for labeling as "New Jersey Wine" under the applicable federal laws and regulations. The containers of all wine sold to consumers by such licensee shall have affixed a label stating such information as shall be required by the rules and regulations of the Director of the Division of Alcoholic Beverage Control. The fee for this license shall be graduated as follows: to so manufacture between 30,000 and 50,000 gallons per annum, $375; to so manufacture between 2,500 and 30,000 gallons per annum, $250; to so manufacture between 1,000 and 2,500 gallons per annum, $125; to so manufacture less than 1,000 gallons per annum, $63. No farm winery license shall be held by the holder of a plenary winery license.
The holder of this license shall also have the right to sell and distribute his products to retailers licensed in accordance with this chapter, except that the holder of this license shall not use a common carrier for such distribution. The fee for this additional privilege shall be $100. The holder of this license shall have the right to sell his products in original packages at retail to consumers in 15 salesrooms apart from the winery premises for consumption on or off the premises, and for sampling purposes for consumption on the premises, at a fee of $250 for each salesroom. Licensees shall not jointly control and operate salesrooms. Additionally, the holder of this license may ship not more than 12 cases of wine per year, subject to regulation, to any person within or without this State over 21 years of age for personal consumption and not for resale. A case of wine shall not exceed a maximum of nine liters. A copy of the original invoice shall be available for inspection by persons authorized to enforce the alcoholic beverage laws of this State for a minimum period of three years at the licensed premises of the winery. For the purposes of this subsection, "sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding one and one-half ounces of any wine.
A holder of this license who produces not more than 250,000 gallons per year shall not own, either in whole or in part, or hold, either directly or indirectly, any interest in a winery that produces more than 250,000 gallons per year.
An applicant for a farm winery license or the holder of a farm winery license may apply to the director for approval to enter into an agreement with a host New Jersey winery to use the host's equipment and space in an alternating proprietorship for production of wine, provided that the applicant or holder has obtained approval of the proposed alternating proprietorship arrangement from the Alcohol and Tobacco Tax and Trade Bureau. The director shall approve the agreement if the director determines that the Alcohol and Tobacco Tax and Trade Bureau has approved the agreement and the agreement does not violate any applicable New Jersey alcohol licensing and taxation laws and related regulations or special rulings of the director. The director shall approve or deny the application no later than 180 days after receipt of the application, unless the applicant agrees to an extension.
An applicant for a farm winery license who also applies to the director to enter into an alternating proprietorship agreement pursuant to this subsection shall, upon approval by the director of both applications, be permitted to grow and cultivate grapes or fruit used in the production of wine on at least three acres within a five-mile radius of the host winery premises.
Unless otherwise indicated, for the purposes of this subsection, with respect to farm winery licenses, "manufacture" means the vinification, aging, storage, blending, clarification, stabilization and bottling of wine or juice from New Jersey fruit to the extent required by this subsection.
For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.
Wine blending license. 2c. The holder of this license shall be entitled, subject to rules and regulations, to blend, treat, mix, and bottle fermented wines and fruit juices with non-alcoholic beverages, and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The fee for this license shall be $625.
For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.
Instructional winemaking facility license. 2d. The holder of this license shall be entitled, subject to rules and regulations, to instruct persons in and provide them with the opportunity to participate directly in the process of winemaking and to directly assist such persons in the process of winemaking while in the process of instruction on the premises of the facility. The holder of this license also shall be entitled to manufacture wine on the premises not in excess of an amount of 10 percent of the wine produced annually on the premises of the facility, which shall be used only to replace quantities lost or discarded during the winemaking process, to maintain a warehouse, and to offer samples produced by persons who have received instruction in winemaking on the premises by the licensee for sampling purposes only on the licensed premises for the purpose of promoting winemaking for personal or household use or consumption. Wine produced on the premises of an instructional winemaking facility shall be used, consumed or disposed of on the facility's premises or distributed from the facility's premises to a person who has participated directly in the process of winemaking for the person's personal or household use or consumption. The holder of this license may sell mercantile items traditionally associated with winemaking and novelty wearing apparel identified with the name of the establishment licensed under the provisions of this section. The holder of this license may use the licensed premises for an event or affair, including an event or affair at which a plenary retail consumption licensee serves alcoholic beverages in compliance with all applicable statutes and regulations promulgated by the director. The fee for this license shall be $1,000. For the purposes of this subsection, "sampling" means the gratuitous offering of an open container not exceeding one and one-half ounces of any wine.
For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.
Out-of-State winery license. 2e. Provided that the applicant does not produce more than 250,000 gallons of wine per year, the holder of a valid winery license issued in any other state may make application to the director for this license. The holder of this license shall have the right to sell and distribute his products to wholesalers licensed in accordance with this chapter and to sell such wine at retail in original packages in 16 salesrooms apart from the winery premises for consumption on or off the premises at a fee of $250 for each salesroom. Licensees shall not jointly control and operate salesrooms. The annual fee for this license shall be $938. A copy of a current license issued by another state shall accompany the application. The holder of this license also shall have the right to sell and distribute his products to retailers licensed in accordance with this chapter, except that the holder of this license shall not use a common carrier for such distribution. The fee for this additional privilege shall be graduated as follows: a licensee who manufactures more than 150,000 gallons, but not in excess of 250,000 gallons per annum, $1,000; a licensee who manufactures more than 100,000 gallons, but not in excess of 150,000 gallons per annum, $500; a licensee who manufactures more than 50,000 gallons, but not in excess of 100,000 gallons per annum, $250; a licensee who manufactures 50,000 gallons or less per annum, $100. Additionally, the holder of this license may ship not more than 12 cases of wine per year, subject to regulation, to any person within or without this State over 21 years of age for personal consumption and not for resale. A case of wine shall not exceed a maximum of nine liters. A copy of the original invoice shall be available for inspection by persons authorized to enforce the alcoholic beverage laws of this State for a minimum period of three years at the licensed premises of the winery.
The licensee shall collect from the customer the tax due on the sale pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) and shall pay the tax due on the delivery of alcoholic beverages pursuant to the "Alcoholic beverage tax law," R.S.54:41-1 et seq. The Director of the Division of Taxation in the Department of the Treasury shall promulgate such rules and regulations necessary to effectuate the provisions of this paragraph, and may provide by regulation for the co-administration of the tax due on the delivery of alcoholic beverages pursuant to the "Alcoholic beverage tax law," R.S.54:41-1 et seq. with the administration of the tax due on the sale pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
A holder of this license who produces not more than 250,000 gallons per year shall not own, either in whole or in part, or hold, either directly or indirectly, any interest in a winery that produces more than 250,000 gallons per year.
For the purposes of this subsection, "wine" shall include "hard cider" and "mead" as defined in this section.
Cidery and meadery license. 2f. The holder of this license shall be entitled, subject to rules and regulations, to manufacture hard cider and mead and to sell and distribute these products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The holder of this license shall be entitled to sell these products at retail to consumers on the licensed premises for consumption on or off the premises and to offer samples for sampling purposes only. The holder of this license shall be permitted to offer for sale or make the gratuitous offering of packaged crackers, chips, nuts, and similar snacks to consumers. The holder of this license shall not operate a restaurant on the licensed premises, but may coordinate with food vendors pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b). The holder of this license shall be entitled to engage in the privileges established pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b). The fee for this license shall be $938.
The holder of this license shall be entitled to manufacture hard cider in a quantity not to exceed 50,000 barrels of 31 fluid gallons capacity per year. With respect to the sale and distribution of hard cider to a wholesaler, the licensee shall be subject to the same statutory and regulatory requirements as a brewer, and hard cider shall be considered a malt alcoholic beverage, for the purposes of the "Malt Alcoholic Beverage Practices Act," P.L.2005, c.243 (C.33:1-93.12 et seq.). The holder of this license shall not directly ship hard cider either within or without this State.
The holder of this license shall be entitled to manufacture not more than 250,000 gallons of mead per year. The holder of this license may ship not more than 12 cases of mead per year, subject to regulation, to any person within or without this State over 21 years of age for personal consumption and not for resale. A case of mead shall not exceed a maximum of nine liters. A copy of the original invoice shall be available for inspection by persons authorized to enforce the alcoholic beverage laws of this State for a minimum period of three years at the licensed premises.
As used in this subsection:
"Hard cider" means a fermented alcoholic beverage derived primarily from apples, pears, apple juice concentrate and water, or pear juice concentrate and water, which may include spices, herbs, honey, or other flavoring, and which contains at least one half of one percent but less than eight and one half percent alcohol by volume.
"Mead" means an alcoholic beverage primarily made from honey, water, and yeast, and which may contain fruit, fruit juices, spices, or herbs added before or after fermentation has completed, except that the ratio of fermentable sugars from fruit or fruit juices shall not exceed 49 percent of the total fermentable sugars used to produce mead.
"Sampling" means the selling at a nominal charge or the gratuitous offering of an open container not exceeding four ounces of hard cider or mead produced on the licensed premises.
Plenary distillery license. 3a. The holder of this license shall be entitled, subject to rules and regulations, to manufacture any distilled alcoholic beverages and rectify, blend, treat and mix, and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The fee for this license shall be $12,500.
Limited distillery license. 3b. The holder of this license shall be entitled, subject to rules and regulations, to manufacture and bottle any alcoholic beverages distilled from fruit juices and rectify, blend, treat, mix, compound with wine and add necessary sweetening and flavor to make cordial or liqueur, and to sell and distribute to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution and to warehouse these products. The fee for this license shall be $3,750.
Supplementary limited distillery license. 3c. The holder of this license shall be entitled, subject to rules and regulations, to bottle and rebottle, in a quantity to be expressed in said license, dependent upon the following fees, alcoholic beverages distilled from fruit juices by such holder pursuant to a prior plenary or limited distillery license, and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The fee for this license shall be graduated as follows: to so bottle and rebottle not more than 5,000 wine gallons per annum, $313; to so bottle and rebottle not more than 10,000 wine gallons per annum, $625; to so bottle and rebottle without limit as to amount, $1,250.
Craft distillery license. 3d. The holder of this license shall be entitled, subject to rules and regulations, to manufacture not more than 20,000 gallons of distilled alcoholic beverages, to rectify, blend, treat and mix distilled alcoholic beverages, to sell and distribute this product to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The holder of this license shall be entitled to sell this product at retail to consumers on the licensed premises of the distillery for consumption on the premises and for consumption off the premises in a quantity of not more than five liters per person. In addition, the holder of this license may offer any person not more than three samples per calendar day for sampling purposes only. For the purposes of this subsection, "sampling" means the gratuitous offering of an open container not exceeding one-half ounce serving of distilled alcoholic beverage produced on the distillery premises. If the holder of this license holds a bonded warehouse bottling license issued pursuant to subsection 5 of this section, product manufactured in accordance with this subsection and transferred to a bonded warehouse for bottling and storage may be sold at retail and offered for sampling on the licensed premises of the distillery by the holder of this license. Nothing in this subsection shall be deemed to permit the direct shipment of distilled spirits either within or without this State. The holder of this license shall be entitled to engage in the privileges established pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b).
The holder of this license shall not sell food or operate a restaurant on the licensed premises, but may coordinate with food vendors pursuant to section 1 of P.L.2023, c.290 (C.33:1-10b). A holder of this license who certifies that not less than 51 percent of the raw materials used in the production of distilled alcoholic beverages under this section are grown in this State or purchased from providers located in this State may, consistent with all applicable federal laws and regulations, label these distilled alcoholic beverages as "New Jersey Distilled." The fee for this license shall be $938.
Rectifier and blender license. 4. The holder of this license shall be entitled, subject to rules and regulations, to rectify, blend, treat and mix distilled alcoholic beverages, and to fortify, blend, and treat fermented alcoholic beverages, and prepare mixtures of alcoholic beverages, and to sell and distribute his products to wholesalers and retailers licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse. The fee for this license shall be $7,500.
Bonded warehouse bottling license. 5. The holder of this license shall be entitled, subject to rules and regulations, to bottle alcoholic beverages in bond on behalf of all persons authorized by federal and State law and regulations to withdraw alcoholic beverages from bond. The fee for this license shall be $625. This license shall be issued only to persons holding permits to operate Internal Revenue bonded warehouses pursuant to the laws of the United States.
The provisions of section 21 of P.L.2003, c.117 amendatory of this section shall apply to licenses issued or transferred on or after July 1, 2003, and to license renewals commencing on or after July 1, 2003.
(cf: P.L.2023, c.290, s.2)
10. Section 8 of P.L.2019, c.238 (C.4:28-13) is amended to read as follows:
8. a. There is established in the Department of Agriculture a special nonlapsing fund to be known as the "New Jersey Hemp Farming Fund." Moneys in the fund shall be used for the administration and enforcement of P.L.2019, c.238 (C.4:28-6 et al.).
b. The fund shall be credited with:
(1) penalties and fees collected by the department pursuant to P.L.2019, c.238 (C.4:28-6 et al.);
(2) moneys as are appropriated by the Legislature;
(3) moneys made available to the department for the purposes of P.L.2019, c.238 (C.4:28-6 et al.), including federal funds; [and]
(4) any return on investment of moneys deposited in the fund; and
(5) penalties and fees collected by the department pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: P.L.2019, c.238, s.8)
11. (New section) Sales restrictions on hemp-derived consumable products. a. No person shall:
(1) Knowingly, or having reason to know, sell a hemp-derived consumable product to a person who is under 21 years of age;
(2) Knowingly, or having reason to know, distribute samples of hemp-derived consumable products in or on a public street, sidewalk, or park;
(3) Engage in the business of selling a hemp-derived consumable product without a valid license held or issued in accordance with P.L. , c. (C. ) (pending before the Legislature as this bill).
(4) Knowingly, or having reason to know, sell at retail a hemp-derived consumable product that has a concentration of more than 0.3% on a dry weight basis of delta-9 tetrahydrocannabinol;
(5) Knowingly, or having reason to know, sell a hemp-derived consumable product that is not contained in an exit package, unless the product is sold in a glass by a business that is validly licensed by the New Jersey Division of Alcoholic Beverage Control to sell hemp-derived beverages;
(6) Knowingly, or having reason to know, sell a hemp-derived consumable product that is not in compliance with P.L. , c. (C. ) (pending before the Legislature as this bill) or any rules or regulations adopted pursuant to department authority;
(7) Knowingly, or having reason to know, sell at retail hemp flower or a product containing hemp flower that is not accompanied by a certificate of analysis issued within the previous six-month period demonstrating that the hemp flower or product containing hemp flower has a concentration of no more than 0.3% on a dry weight basis of delta-9 tetrahydrocannabinol; or
(8) Sell a hemp-derived consumable product that is not behind a physical counter or barrier wall to prevent customer contact, unless such product is a hemp-derived beverage and is sold by a business that is validly licensed by the New Jersey Division of Alcoholic Beverage Control to sell hemp-derived beverages.
b. Any person who violates this section shall be subject to the following penalties from the Department of Agriculture:
(1) for a first violation, a civil penalty of not more than $500;
(2) for a second violation within three years of the first violation, a civil penalty of not more than $750;
(3) For a third violation within three years of the first violation, a civil penalty of not more than $1,000, and suspension of the license; and
(4) For a fourth or subsequent violation within three years of the first violation, a civil penalty of not more than $2,000 and revocation of the license.
c. In lieu of any suspension or revocation of a license prescribed pursuant to paragraphs (3) and (4) of subsection b. of this section, the department may accept the payment of a penalty in the sum of $3,000. The department may accept the payment, and if accepted, shall not suspend or revoke the license of the person or entity.
d. It shall be a defense to a violation of subsection a. of this section if the retailer or seller, for a violation of paragraph (1) of subsection a., provides evidence that the purchaser produced a New Jersey driver's license or other photo identification issued by the State, another state, or federal government showing the purchaser's age to be at least 21 years of age or other evidence that reasonably indicates that at the time of sale the purchaser was 21 years of age.
e. The department shall seize any product sold in violation of paragraph (4) of subsection a. of this section.
f. (1) A person who commits a violation of paragraph (3) of subsection a. of this section twice is guilty of a disorderly persons offense.
(2) A person who commits a third or subsequent violation of paragraph (3) of subsection a. of this section is guilty of a fourth degree crime.
12. (New section) Sales and transfer restrictions on producers.
a. A producer shall not knowingly sell or transfer hemp that has been processed or prepared with the intent to be used in a hemp-derived consumable product to any person or entity other than a manufacturer licensed by the department in accordance with P.L. , c. (C. ) (pending before the Legislature as this bill).
b. The department shall impose the following penalties for a violation of this section:
(1) for a first violation, a penalty of no more than $500;
(2) for a second violation within three years of the first violation, a penalty of no more than $750;
(3) for a third violation within three years of the first violation, a penalty of no more than $1,000; and
(4) for a fourth or subsequent violation within three years of the first violation, a penalty of no more than $2,000.
c. Any person who commits a violation under paragraph (2) of subsection b. shall be guilty of a disorderly persons offense. Any person who commits a violation under paragraphs (3) or (4) of subsection b. shall be guilty of a fourth degree crime.
d. In lieu of any suspension or revocation of a license for a violation of subsection a. of this section, the department may accept the payment of a penalty in the sum of $3,000. The department may accept the payment, and if accepted, shall not revoke the license of the person or entity. The department may accept the payment and suspend the license.
e. Nothing in this section shall be construed as prohibiting a producer from selling or transferring hemp that is intended to be used in any lawful product other than those regulated by P.L. , c. (C. ) (pending before the Legislature as this bill).
13. (New section) a. It shall be unlawful for:
(1) any person to sell a hemp-derived consumable product to an individual under 21 years of age;
(2) a person under 21 years of age to possess, purchase, or attempt to purchase a hemp-derived consumable product;
(3) any person under 21 years of age to attempt to obtain permission to purchase hemp-derived consumable products by using or attempting to use any of the following:
(a) a fraudulent or altered driver's license or other photo identification issued by the State, another state, or federal government;
(b) a driver's license issued to another person;
(c) an identification document other than a driver's license issued to another person; or
(d) any other form or means of identification that misrepresents the age of the purchaser;
(4) any person to permit the use of the person's driver's license or any other form of identification for the purpose of permitting an individual under 21 years of age to purchase hemp-derived consumable products.
b. (1) A person who violates paragraphs (2) or (3) of this subsection a. of this section shall be guilty of a petty disorderly persons offense.
(2) A person who violates paragraphs (1) or (4) of subsection a. of this section is guilty of a disorderly persons offense.
c. Nothing in this section prohibits a person under 21 years of age from selling, transporting, or possessing hemp-derived consumable products in the course of employment if the employment of the person is lawful.
14. (New section) a. It shall be unlawful for a manufacturer or distributor to:
(1) knowingly, or having reason to know, distribute samples of a hemp-derived consumable product in or on a public street, sidewalk, or park;
(2) engage in the business of manufacturing or distributing a hemp-derived consumable product without a valid license issued in accordance with P.L. , c. (C. ) (pending before the Legislature as this bill); or
(3) knowingly, or having reason to know, manufacture or distribute a hemp-derived consumable product that has a concentration of delta-9 tetrahydrocannabinol that is more than 0.3% on a dry weight basis of total combined.
A violation of this subsection is a disorderly persons offense.
b. In addition to any criminal penalties for a violation of subsection a. of this section, the department may impose the following:
(1) suspend the license of the license holder for a period of time not to exceed three years;
(2) revoke the license of the license holder;
(3) impose conditions on the operating hours of the licensed business; or
(4) impose any of the following penalties:
(a) for a first violation, a penalty of no more than $1,000;
(b) for a second violation within three years of the first violation, a penalty of no more than $5,000; and
(c) for a third violation within three years of the first violation, a penalty of no more than $7,500.
c. In lieu of any suspension or revocation of a license prescribed pursuant to paragraphs (1) and (2) of subsection b. of this section, the department may accept the payment of a penalty in the sum of $8,000. The department may accept the payment, and if accepted, shall not suspend or revoke the license of the person or entity.
d. For a violation of paragraph (3) of subsection a., the manufacturer or distributor shall pay to the department the actual costs paid by the department for the testing of the samples that resulted in the violation.
e. It shall be a defense to paragraph (3) of subsection a. if the manufacturer completes the following:
(1) recalls all hemp-derived consumable products from the same batch as the product on which the violation is based; and
(2) has samples of the batch tested by an independent testing laboratory and provides such certified results to the department indicating the batch was compliant with department rules. The amount required to be submitted for testing shall be determined by the department.
f. The department shall seize any product sold in violation of paragraph (3) of subsection a. of this section.
15. (New section) a. (1) A validly licensed manufacturer of hemp-derived consumable products shall have the product tested prior to distribution to a distributor or before distributing the product to a retailer or seller. The testing shall determine the presence and amounts of any substances as identified by the department. A product that exceeds any testing standards identified by the department shall not be distributed or sold in this State.
(2) A distributor shall not be required to test the hemp-derived consumable product if the consumable product is packaged in exit package when delivered to the distributor and the distributor does not open such exit package.
(3) If the hemp-derived consumable product is not packaged in an exit package when delivered to the distributor, or the distributor opens the exit package, the distributor shall have the hemp-derived consumable product tested prior to distribution.
b. (1) The department shall identify qualified independent testing laboratories that manufacturers and distributors may contract with to complete testing of hemp-derived consumable products in accordance with this section and any rules and regulations adopted by the department.
(2) The department shall:
(a) develop an application process for independent testing laboratories to qualify as such; and
(b) maintain and post on its website a registry of any qualified independent testing laboratory that is qualified to test manufactured material and hemp-derived consumable products.
c. If a manufacturer or distributor fails to submit to testing of any hemp-derived consumable product in accordance with P.L. , c. (C. ) (pending before the Legislature as this bill) or any rules or regulations adopted by the department, the department may:
(1) suspend the license of the license holder for a period of time not to exceed three years;
(2) revoke the license of the license holder;
(3) impose conditions on the operating hours of the licensed business; or
(4) impose any of the following penalties:
(a) for a first violation, a penalty of no more than $1,000;
(b) for a second violation within three years of the first violation, a penalty of no more than $5,000; and
(c) for a third violation within three years of the first violation, a penalty of no more than $7,500.
d. In lieu of any suspension or revocation of a license prescribed pursuant to paragraphs (1) and (2) of subsection c. of this section, the department may accept the payment of a penalty in the sum of $8,000. The department may accept the payment, and if accepted, shall not revoke the license of the person or entity; however, may still suspend the license of the person or entity.
16. (New section) a. P.L. , c. (C. ) (pending before the Legislature as this bill) shall not apply to:
(1) a safe harbor hemp product; or
(2) a safe harbor manufacturer or storage facility.
b. For the purposes of this section:
"Safe harbor hemp product" means a hemp-derived compound or cannabinoid, whether a finished product or in the process or being produced, that is permitted to be manufactured for distribution, produced for distribution, packaged for distribution, processed for distribution, treated for distribution, transported for distribution, or held for distribution in the State for export from the State but that is not permitted to be sold or distributed in the State.
"Safe harbor manufacturer or storage facility" means a facility that manufactures for distribution, produces for distribution, packages for distribution, processes for distribution, prepares for distribution, treats for distribution, transports for distribution, or holds for distribution a safe harbor hemp product.
17. (New section) a. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to:
(1) Permit a person to undertake any task under the influence of a hemp-derived consumable product when doing so would constitute negligence or professional malpractice;
(2) Permit a person to operate, navigate, or be in actual physical control of a motor vehicle, aircraft, unmanned aircraft, motorized watercraft, or any other vehicle while under the influence of a hemp-derived consumable product;
(3) Require an employer to accommodate the use of a hemp-derived consumable product in a workplace or an employee working while under the influence of a hemp-derived consumable product;
(4) Require an individual or establishment in lawful possession of hemp-derived consumable products to admit a guest, client, customer, or other visitor who is impaired as a result of the person's use of a hemp-derived consumable product;
(5) Exempt a person from prosecution for a criminal offense related to impairment or intoxication resulting from the use of a hemp-derived consumable product or relieve a person from any requirement under law to submit to a breath, blood, urine, or other test to detect the presence of a controlled substance;
(6) Limit the ability of an employer to establish, continue, or enforce a drug-free workplace program or policy;
(7) Create a cause of action against an employer for wrongful discharge or discrimination; or
(8) Allow the possession, sale, manufacture, or distribution of any controlled substance that is otherwise prohibited by New Jersey Controlled Dangerous Substances Act, P.L. 1970, c. 226 (C.24:21-1 et al.).
18. (New section) a. There is levied a tax at the rate of 6% of the sales price of products containing hemp-derived consumable products or hemp-derived beverages when sold by a retailer in this State, of which 1% is set aside for social equity programs such as legal services, apprenticeships, financial assistance, and workforce development.
b. The tax levied under this section is due and payable monthly on the first day of each month, and for the purpose of ascertaining the amount of tax payable under this section, all retailers making taxable sales on or before the twentieth day of each month shall register with the New Jersey Division of Revenue and Enterprise Services and shall file electronically with the New Jersey Division of Taxation upon forms prescribed by the Division of Taxation returns showing gross sales during the preceding month.
c. All revenue generated from the tax levied pursuant to subsection a. shall be deposited into a special account in the state general fund, with 50% being allocated to the Department of Treasury and 50% being allocated to the Department of Agriculture, to be used exclusively for the regulation of products containing hemp-derived consumable products in this State.
d. A municipality may charge a local hemp excise tax of up to 2% on retail sales of hemp-derived consumable products, including hemp-derived beverages.
19. (New section) a. The New Jersey Department of Education shall adopt a written policy prohibiting the use of any hemp-derived consumable products by any person in school buildings, facilities, or campuses, on school buses or transportation services vehicles, and in or on any other property owned or operated by the school. The policy shall further prohibit the use of hemp-derived consumable products by any person attending a school-sponsored event when in the presence of students or school personnel.
b. The policy shall include the following:
(1) Adequate notice to students, parents, the public, and school personnel of the policy;
(2) Posting of signs prohibiting at all times the use of hemp-derived consumable products by any person in and on school property; and
(3) Requirements that school personnel enforce the policy.
c. Subsection a. of this section shall not apply where hemp-derived consumable products are included as part of instructional or research activities and which is supervised by faculty members and does not include ingesting any hemp-derived consumable product.
d. Nothing in this section or any other section of P.L. , c. (C. ) (pending before the Legislature as this bill) prohibits a governing body of a public school unit from adopting and enforcing a more restrictive policy on the use of hemp-derived consumable products in school buildings, in school facilities, on school campuses, at school-related or school-sponsored events, or in or on other school property.
20. (New section) a. The department shall adopt rules and regulations to effectuate the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). The rules and regulations adopted pursuant to this section and P.L. , c. (C. ) (pending before the Legislature as this bill) shall include, but not be limited to, provisions concerning:
(1) packaging of hemp-derived consumable products, including requiring child-resistant packaging that satisfies the standards under 16 C.F.R. s.1700.15(b)(1) when tested in accordance with the requirements of 16 C.F.R. s.1700.20, consumer protections warnings, nutritional facts, and the inclusion of expiration dates;
(2) product testing and safety standards, including identifying independent laboratories which provide mandatory testing of hemp-derived consumable products as required pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill);
(3) advertisement restrictions, including prohibiting a manufacturer, distributor, retailer, or a seller of a hemp-derived consumable product from advertising, marketing, or offering for sale the product by using, in the labeling or design of the product or product packaging, or in advertising or marketing materials for the product, any imagery or scenery that depicts or signifies characters or symbols known to appeal primarily to persons under 21 years of age, including, but not limited to, superheroes, comic book characters, video game characters, television show characters, movie characters, mythical creatures, or unicorns;
(4) any additional fees to be charged by the department to cover the reasonable costs of administering P.L. , c. (C. ) (pending before the Legislature as this bill);
(5) hours and operations of retailers which sell hemp-derived consumable products to consumers;
(6) penalties for any violations related to the packaging or advertisement requirements established by the department;
(7) labeling of hemp-derived consumable products, including requiring the label to include a consumer protection warning with the following information:
(a) a list of ingredients and possible allergens and a nutritional fact panel or a code that may be scanned that directs consumers to a website containing such information;
(b) a statement that use of a hemp-derived consumable product while pregnant or breastfeeding may be harmful;
(c) a statement that the consumption of certain cannabinoids may impair a person's ability to drive and operate heavy machinery;
(d) a statement that the product is not approved by the United States Food and Drug Administration;
(e) a statement to keep out of reach of children;
(f) a statement to consult a physician before use;
(g) if the product is ingestible, the amount of hemp-derived cannabinoid in each serving of the product, measured in milligrams;
(h) the total amount of hemp-derived cannabinoid in the entire package, measured in milligrams;
(i) the net weight of the product;
(j) a code that can be scanned to access a website providing the product's batch number, date received, date of completion, and method of analysis for the testing required; and
(k) an expiration date in accordance with applicable federal law;
(8) establish limitations on non-liquid ingestible products, including that a non-liquid ingestible hemp-derived consumable product shall not:
(a) be sold in a serving that contains more than 25 milligrams, in the aggregate of one or more of the following hemp derived cannabinoids:
(i) Delta-7 tetrahydrocannabinol;
(ii) Delta 8 tetrahydrocannabinol;
(iii) Delta-9 tetrahydrocannabinol; or
(iv) Delta 10 tetrahydrocannabinol; and
(b) be formed in the shape of an animal or cartoon character;
(9) establish limitations on liquid ingestible products, including that a liquid ingestible hemp-derived consumable product shall not be sold in a serving that contains more than 10 milligrams, in the aggregate, of one or more of the following hemp-derived cannabinoids:
(a) Delta-7 tetrahydrocannabinol;
(b) Delta 8 tetrahydrocannabinol;
(c) Delta-9 tetrahydrocannabinol; or
(d) Delta 10 tetrahydrocannabinol;
(10) establish limitations on inhalable hemp-derived consumable products, including that a inhalable product shall not be sold in a container that contains more than 3 milliliters of hemp-derived cannabinoids, in the aggregate, of one or more of the following hemp-derived cannabinoids:
(a) Delta-7 tetrahydrocannabinol;
(b) Delta 8 tetrahydrocannabinol;
(c) Delta-9 tetrahydrocannabinol; or
(d) Delta 10 tetrahydrocannabinol; and
(11) any other rules or regulations the department deems necessary to effectuate P.L. , c. (C. ) (pending before the Legislature as this bill).
b. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, and in accordance with the authority established pursuant to section 5 of P.L.2019, c.238 (C.4:28-10), the department is authorized to adopt immediately upon filing with the Office of Administrative Law rules and regulations necessary to implement P.L. , c. (C. ) (pending before the Legislature as this bill). The rules and regulations adopted pursuant to this section shall be effective for a period not to exceed 18 months following the date of filing and may thereafter be amended, adopted, or readopted by the director in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
c. Following any rules or regulations adopted by the department in accordance with P.L. , c. (C. ) (pending before the Legislature as this bill), the department shall, and in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement P.L. , c. (C. ) (pending before the Legislature as this bill).
d. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed or interpreted to limit the enforceability or applicability of the federal "Agriculture Improvement Act of 2018," Pub.L.115-334 or the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.).
21. The following sections are repealed:
Section 4 of P.L.2024, c.73 (C.24:6I-48.1);
Section 5 of P.L.2024, c.73 (C.24:6I-48.2);
Section 8 of P.L.2024, c.73 (C.24:6I-48.3); and
Section 11 of P.L.2024, c.73 (C.24:6I-48.4).
22. This act shall take effect as follows:
a. Sections 8, 10 through 18, and 20 shall take effect 30 days after the initial adoption of regulations by the Department of Agriculture, except that the Department of Agriculture may take any anticipatory administrative action in advance as shall be necessary for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill);
b. The remainder of P.L. , c. (C. ) (pending before the Legislature as this bill) shall take effect immediately.
STATEMENT
This bill establishes a licensing scheme for the regulation of hemp-derived consumable products by the Department of Agriculture (department) and hemp-derived beverages by the New Jersey Division of Alcoholic Beverage Control (ABC).
Licensing
Businesses or entities involved in the manufacturing, distribution, or sale of hemp-derived consumable products (products) are required to obtain a license from the department prior to beginning operations or within 30 days after the department has adopted rules and regulations for the application and licensing of businesses. Entities holding certain existing licenses related to alcoholic beverages are permitted to sell or manufacture hemp-derived products by paying an annual fee and maintaining registration with the ABC. This includes the holders of the following ABC licenses:
(1) plenary retail consumption license;
(2) seasonal retail consumption license;
(3) plenary retail distribution license;
(4) plenary retail transit license;
(5) club license;
(6) sporting facility license;
(7) plenary brewery license;
(8) limited brewery license;
(9) restricted brewery license; and
(10) plenary wholesale license.
See N.J.S.A.33:1-10 through N.J.S.A.33:1-12 for definitions of these license holders.
Both new and existing licensees are subject to inspections, product sampling, and background checks in accordance with this bill and the rules and regulations adopted by the department.
The various monies from licensing fees or penalties would be placed in the "New Jersey Hemp Farming Fund" established by N.J.S.A.4:28-13.
The bill prohibits a license from being granted to any business that is attempting to operate and sell products within 1,000 feet of any elementary or secondary school, or any municipal or county playground. This does not apply to any business which was selling products before the effective date of the bill or where a school or playground is established within 1,000 feet subsequent to the bills enactment.
Regulatory Authority
The bill grants the department the authority to adopt rules and regulations to implement the provisions of the bill that concerns hemp-derived consumable products.
The regulations will cover:
(1) packaging and labeling requirements, including child-resistant packaging and consumer warnings;
(2) product testing and safety standards;
(3) advertising standards;
(4) business operation standards;
(5) the imposition of penalties for violations of the bill or the rules and regulations adopted by the department; and
(6) standards and restrictions for non-liquid ingestible products, liquid ingestible products, and inhalable products.
Restrictions on Sale of Products
The bill prohibits selling products to individuals under 21 years of age, distributing samples of products in public spaces, operating without a license, selling products which contain a concentration of delta-9 tetrahydrocannabinol (THC) that is more than 0.3% on a dry weight basis, and selling a product without proper packaging. Further, the bill requires that any retail sale of a product complies with the regulations adopted by the department, including placing products behind a counter and ensuring certification that the product was properly tested.
Violations of these restrictions can result in various civil penalties, including increasing fines for repeat offenders, and suspension or revocation of licenses. Products with a concentration of delta-9 THC that is more than 0.3% on a dry weight basis and are retailed may be seized by the department. A person who sells a product without a valid license twice in violation of this bill would be guilty of a disorderly persons offense. If a person commits this offense a third or subsequent time, the person is guilty of a fourth degree crime. A disorderly persons offense is punishable by up to six months imprisonment, a fine of up to $1,000, or both. A fourth degree crime is punishable by up to 18 months imprisonment, a fine of up to $10,000, or both.
Restrictions on Producers
Producers of hemp that is intended for use in products are restricted to selling or transferring the products only to licensed manufacturers. Violations of this provision would result in penalties ranging from $500, for a first offense, to $2,000 for subsequent offenses within three years of the first violation. A producer may avoid suspension or revocation of its license by paying a $3,000 penalty. If payment-in-lieu-of-revocation is accepted by the department, the department is prohibited from revoking the license, though the department reserves the right to still suspend the license.
Repeat offenders may face criminal charges, with a second violation of these restrictions resulting in a disorderly persons offense, and a third or subsequent offense potentially resulting in a fourth degree crime.
A disorderly persons offense is punishable by up to six months imprisonment, a fine of up to $1,000, or both. A fourth degree crime is punishable by up to 18 months imprisonment, a fine of up to $10,000, or both.
Manufacture and Distributor Restrictions
The bill prohibits a manufacturer or distributor from distributing samples in public spaces, operating without a valid license issued by the department, and manufacturing or distributing a product that has a concentration of delta-9 THC that is more than 0.3% on a dry weight basis. A knowing violation of these restrictions would result in a disorderly persons offense. A disorderly persons offense is punishable by up to six months imprisonment, a fine of up to $1,000, or both.
Further, the bill provides for civil penalties for a violation of these provisions, including license suspension or revocation, limitations on business hours, and increasing fines for repeat violations. Manufacturers and distributors may avoid suspension or revocation by paying a penalty of $8,000. If payment-in-lieu-of-suspension or revocation is accepted by the department, the department is prohibited from suspending or revoking the license.
If the violation is related to a product that has a concentration of delta-9 THC that is more than 0.3% on a dry weight basis, the license holder is required to cover additional testing costs. For such a violation, the bill permits a license holder to avoid the additional penalties if the batch is recalled and the license holder proves compliance through an independent testing laboratory. The department is authorized to seize products that exceed the delta-9 THC threshold.
General Restrictions
The bill makes it illegal to provide a product to anyone under 21 years of age, and for individuals under 21 years of age to posses or attempt to purchase products. Further, the bill prohibits the fraudulent use of an identification, whether a fake identification or using someone else's identification, to buy product. Under the bill, violations of these provisions, relating to attempting to buy a product while under 21 years of age or the use of a fake identification card, are petty disorderly persons offenses. Providing a product to a person under 21 years of age or permitting the fraudulent use of another person's identification is a disorderly persons offense. A petty disorderly persons offense is punishable by up to 30 days imprisonment, a fine of up to $500, or both. A disorderly persons offense is punishable by up to six months imprisonment, a fine of up to $1,000, or both.
The bill clarifies that individuals under 21 years of age are allowed to handle these products if doing so is part of lawful employment.
Testing Requirements
The bill requires that licensed manufacturers of products have the products tested for compliance with the bill and the rules and regulations adopted by the department prior to distributing the product to distributors, retailers, or sellers. Distributors are required to test the product if: the product is not packaged in a manner that may be sold to the consumer of the product when delivered to the distributor; or the distributor opens a product package that is packaged in a manner that may be sold to the consumer.
The department is required to develop an application process for independent testing laboratories to qualify as designated laboratories for testing purposes. After approving such applications, the department is required to maintain a website of those laboratories and designate qualified independent testing laboratories for manufacturers and distributors to use.
If testing is not completed in accordance with the bill, the department can impose penalties, including license suspension or revocation, or increasing fines for repeated violations. Manufacturers and distributors may avoid suspension or revocation by paying a penalty of $8,000. If payment-in-lieu-of revocation is accepted by the department, the department is prohibited from revoking the license, though the department reserves the right to still suspend the license.
Taxes
The bill imposes a 6% tax on the retail sale of products in New Jersey, with 1% of the tax revenue designated for social equity programs such as legal services and workforce development. Further, the bill requires retailers to pay the tax monthly, register with the New Jersey Division of Revenue and Enterprise Services, and file returns electronically. Finally, the bill directs that tax revenue will be split evenly between the Department of Treasury and the Department of Agriculture to regulate products. The bill permits municipalities to impose a local excise tax of up to 2% on the retail sales of products.
Exemptions from Regulation
Certain hemp products and facilities are exempted from regulation of the bill. These include any "safe harbor hemp product" or "safe harbor manufacture or storage facility."
Under the bill, a "safe harbor hemp product" is a hemp-derived product or cannabinoid that is permitted to be processed and distributed within New Jersey for export but is not allowed to be sold or distributed within the State. A "safe harbor manufacturer or storage facility" is a facility involved in the production, packaging, or transport of such products, but only for export purposes.
Limitations of Act
The bill does not permit or legalize certain actions related to the products. Specifically, it does not:
(1) allow performing tasks under the influence of products that would be considered negligent or malpractice if performed while impaired;
(2) permit operating vehicles or machinery while impaired;
(3) require employers to accommodate workplace use or tolerate impairment;
(4) require retailers or sellers to permit access to a premises by a person under the influence;
(5) exempt people from criminal prosecution for intoxication;
(6) prohibit employers from maintaining drug-free policies; or
(7) permit the possession or
sale of controlled substances prohibited by New Jersey law.
Schools
The bill requires the New Jersey Department of Education to implement a policy banning the use of the products in school buildings and facilities, on school transportation, and at school-sponsored events involving students and staff. The bill does provide an exception for instructional or research activities which are supervised by faculty and which do not involve ingestion of any products.
The bill permits school governing bodies to establish more stringent requirements than established under the bill regarding the use of the products.
Repealer
The bill repeals the recent enactment of P.L.2024, c.73 related to intoxicating hemp products. Specifically, the bill repeals N.J.S.A.24:6I-48.1; N.J.S.A.24:6I-48.2; N.J.S.A.24:6I-48.3; and
N.J.S.A.24:6I-48.4.
