New Jersey Gov. Phil Murphy on Thursday signed a bill to limit the manufacture and sale of hemp products to those already licensed by the New Jersey Cannabis Regulatory Commission.
The new law includes a provision that eventually will allow infused beverages to be sold by liquor stores regulated by the New Jersey Division of Alcoholic Beverage Control, according to attorney Michael McQueeny, co-chair of the cannabis practice at law firm Foley Hoag
But the lawful sale of intoxicating hemp products at liquor stores won’t happen until rules are finalized by the state regulators.
“The status quo poses an immediate risk to health and safety, as these unregulated intoxicating hemp products are widely available to minors,” Murphy told the news media.
“The wiser course is to sign the bill now and commit to working with the legislature to address the technical issues and other challenges in separate legislation.”
The law governing intoxicating hemp includes a penalty and enforcement structure that empowers state and local law enforcement to take action – including product seizures – for noncompliant in-person and online sales.
Businesses violating the law are subject to the following fines and civil penalties:
- $100 for the first violation.
- Not less than $1,000 for the second violation.
- Not less than $10,000 for the third and each subsequent violation.
New Jersey follows other states with regulated cannabis markets in cracking down on hemp-derived products.
Earlier this month, California Gov. Gavin Newsom issued emergency regulations for intoxicating products derived from hemp.
The California Department of Public Health said the regulations came in response to increasing “health incidents related to intoxicating hemp products.”
In Missouri, Gov. Mike Parson ordered the state’s Department of Health & Senior Services to remove products containing intoxicating hemp from the market.
Parson cited health concerns and lack of research on hemp-derived psychoactive substance as well as their accessibility to children.
Louisiana lawmakers also are implementing restrictions on intoxicating hemp products but will not ban them outright.