New Jersey Tightens Rules for Hemp-Derived Products
Summarize
New Jersey is the most recent state to change their THC laws. This time, the legislation reclassifies most products with THC derived from hemp as cannabis. This means the products, including popular THC beverages, must adhere to the same regulations as marijuana. Governor Mikie Sherrill signed the law on March 30, which gives alcohol retailers selling the popular THC beverages until November 13 to sell inventory. After that date, all intoxicating hemp products, including beverages, can only be sold through a state-licensed cannabis dispensary.
The law has additional restrictions. What qualifies as a hemp product is redefined. Hemp-derived products with cannabinoids must have less than 0.4 milligrams of THC per container or no more than 0.3% total THC. If a product exceeds these limits, it is classified as a cannabis product, and only a licensed dispensary can sell it.
Also, the law prohibits the sale of intoxicating hemp products online, to anyone under the age of 21, and through vending machines. Effective May 31, hemp THC beverages are limited to containing 5 milligrams or less of THC per serving or 10 milligrams per container.
Quality control is addressed in the law. It requires mandatory testing of products by accredited laboratories that have a U.S. Drug Enforcement Administration license.
The new law also addresses synthetic cannabinoids. Delta-8 THC and other compounds chemically synthesized in a lab are banned. These products cannot be produced, sold, or distributed. Synthetic cannabinoid products have proliferated due to what is now recognized as a loophole in the 2018 Farm Bill. The Farm Bill does not mention different types of THC. Legislators are concerned about products being sold that are unsafe because they are untested or manufactured inconsistently.
States are increasingly passing laws to try to close language gaps in the 2018 Farm Bill that left room for products like intoxicating synthetic cannabinoids. Though the intent is to protect consumers, including children, from taking unsafe products, the law will also likely lead to many smaller hemp businesses closing. The net effect will be that the larger, established cannabis operators will control the market. A less competitive market is usually not good for consumers in terms of factors like price and access.
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