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news September 16, 2024

New Jersey Law Establishing THC Limits and Age Restrictions Signed Into Law

On Thursday, Sept. 12, New Jersey’s Governor signed into law legislation that prohibits the sale or distribution of a product intended for human consumption that contains THC in any detectable amount to those under 21 years of age. The bill also defines “hemp product” as a product with not more than 0.5 mg of total THC per serving and 2.5 mg total THC per package, including food, supplements, cosmetics, and products intended for animal consumption. The definition excludes a cannabinoid product that is not derived from naturally occurring biologically active chemical constituents and “intoxicating hemp products.” As explained below, however, there is confusion as to whether THC limits apply to products produced outside of New Jersey, which may not be resolved until additional legislation is passed.

While the definition of “hemp product” is relatively straightforward, “intoxicating hemp product” is defined as “any product cultivated, derived, or manufactured in this State from hemp regulated pursuant to the ‘Agricultural Improvement Act of 2018’…or the ‘New Jersey Hemp Farming Act’…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.” This definition also excludes a product derived non-naturally constituents and “hemp products” as defined above. The phrase “in this State” has led to confusion as to whether the THC limits apply to products manufactured outside of NJ. The Governor acknowledged this confusion in his statement issued upon signing the bill, but noted that this interpretation “would largely defeat the purpose of the legislation by creating an enormous loophole contrary to the Legislature’s purpose in passing the bill.” The statement also notes that alternative readings of the language may violate the U.S. Constitution’s Dormant Commerce Clause and invites the NJ legislature to work with his administration to clarify the legislation. Of note, there are no similar concerns with the age-restriction language.

Please contact Rend Al-Mondhiry with any questions.