SENATE BUDGET AND APPROPRIATIONS COMMITTEE
STATEMENT TO
SENATE COMMITTEE SUBSTITUTE FOR
SENATE, No. 4509
STATE OF NEW JERSEY
DATED: DECEMBER 15, 2025
The Senate Budget and Appropriations Committee reports favorably a Senate Committee Substitute for Senate Bill No. 4509.
The substitute creates a new regulatory scheme for the sale of certain hemp products by making various changes to the “New Jersey Hemp Farming Act” to bring New Jersey into compliance with federal law, Section 781 of Pub.L.119-37, the “Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act,” (Pub.L.119-37), which takes effect in November 2026.
Changes to Definitions
Under the substitute, the definition of “hemp” is changed in accordance with Section 781 of Pub.L.119-37 to close the loophole created by Pub.L.115-334, the “Agriculture Improvement Act of 2018,” which permitted the manufacture and sale of hemp products that caused intoxication similar to cannabis items. Under the substitute, “hemp” is defined as 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 tetrahydrocannabinol (THC) concentration, including tetrahydrocannabinolic acid (THCa), of not more than 0.3 percent on a dry weight basis. The bill additionally defines “industrial hemp.”
Effective Date
The substitute takes effect on January 13, 2026, the first day of the 222nd Legislative Session.
The substitute creates a prohibition on the products that are excluded from the definition of hemp, which takes effect on March 13, 2026. This 60 day window permits businesses which sell hemp products, including intoxicating hemp beverages, that exceed the federally defined THC level to sell their remaining inventory prior to the ban on sale of such products. During this 60 day window, a Cannabis Regulatory Commission (CRC) or an Alcoholic Beverage Control (ABC) licensee may sell intoxicating hemp beverages with any THC concentration. Effective on March 13, 2026, CRC and ABC licensees will be permitted to sell beverages with a maximum THC concentration of 10 milligrams per container.
On November 13, 2026, the date that Section 781 of Pub.L.119-37 takes effect, ABC licensees will no longer be permitted to sell intoxicating hemp beverages. However, CRC licensees will be permitted to continue intoxicating hemp beverage operations in accordance with the “Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act,” P.L.2021, c.16 (CREAMMA).
Hemp Prohibitions
Effective January 13, 2026, it will be unlawful to sell any product with any amount of detectable THC to a person under the age of 21. This prohibition does not apply to medical cannabis dispensed to registered qualifying patients who are under the age of 21 years old pursuant to the “Jake Honig Compassionate Use Medical Cannabis Act,” P.L.2009, c.307.
Effective March 13, 2026, it will also be unlawful to sell, offer for sale, or distribute any of the following:
(1) any viable seeds from a Cannabis sativa L. plant that exceeds a total tetrahydrocannabinol concentration, including tetrahydrocannabinolic acid, of 0.3 percent in the plant on a dry weight basis;
(2) any intermediate hemp-derived product containing:
(a) cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant;
(b) cannabinoids that are capable of being naturally produced by a Cannabis sativa L. plant, but were synthesized or manufactured; or
(c) more than 0.3 percent combined total of total tetrahydrocannabinol, including tetrahydrocannabinolic acid, with any other cannabinoids that have similar effects or are marketed to have similar effects on humans or animals as tetrahydrocannabinol, as determined by the United States Secretary of Health and Human Services;
(3) any intermediate hemp-derived cannabinoid product that is marketed or sold as a final product or directly to an end consumer for personal or household use;
(4) any final hemp-derived cannabinoid products containing:
(a) cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant;
(b) cannabinoids that are capable of being naturally produced by a Cannabis sativa L. plant, but were synthesized or manufactured outside the plant; or
(c) cannabinoids that are capable of being naturally produced by a Cannabis sativa L. plant, but were synthesized or manufactured outside the plant by any other prohibited synthesis methodology, as identified by the Cannabis Regulatory Commission;
(5) greater than 0.4 milligrams combined total per container of total tetrahydrocannabinol, including tetrahydrocannabinolic acid, with any other cannabinoids that have similar effects or are marketed to have similar effects on humans or animals as tetrahydrocannabinol, as determined by the United States Secretary of Health and Human Services; or
(6) any cannabinoid product marketed, labeled, or represented as hemp that exceeds the federally defined THC level for hemp.
The sale of any such cannabinoid products will be treated the same as “marijuana” pursuant to Title 2C of the New Jersey Statutes, specifically N.J.S.A.2C:35-5, related to the manufacture, distribution, and dispensing of certain substances.
Intoxicating Hemp Beverages
The prohibition on the sale of certain hemp products will not apply to the sale of intoxicating hemp beverages.
The bill defines “intoxicating hemp beverage” as a beverage which is cultivated, derived, or manufactured prior to the effective date of section 781 of Pub.L.119-37 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 conforms to the allowed tetrahydrocannabinol concentration for hemp as established pursuant to the provisions of 7 U.S.C. s.1639o in effect prior to the effective date of section 781 of Pub.L.119-37.
Intoxicating hemp beverages will be permitted to be sold by certain ABC licensees and CRC licensees. Prior to March 13, 2026, beverages sold in accordance with this authority have no THC concentration limit. Effective March 13, 2026, beverages sold in accordance with this authority are limited to 5 milligrams of total THC per serving and 10 milligrams of total THC per container.
ABC licensees are permitted to sell intoxicating hemp beverages until the effective date of Section 781 of Pub.L.119-37, November 13, 2026, and at which time, ABC licensees will also be prohibited from selling such beverages. Moreover, upon the effective date of Section 781 of Pub.L.119-37, November 13, 2026, CRC licensees will no longer be able to sell intoxicating hemp beverages, and will only be permitted to sell cannabis beverages in accordance with existing law, CREAMMA.
CREAMMA Fund
Under the substitute, all tax revenues from the sale of intoxicating hemp beverages by CRC and ABC licensees are deposited in the CREAMMA fund, established pursuant to N.J.S.A.24:6I-50.
Taxes and Fees
The substitute imposes an excise tax in the amount of $3.75 per gallon on the wholesale sale of intoxicating hemp beverages. Such tax is levied and imposed on the wholesale sale of any intoxicating hemp beverages within this State or upon any delivery of intoxicating hemp beverages made to a location within this State.
The excise fee will take effect on April, 1, 2026, the first calendar day following the end of the first fiscal quarter, in order to allow the Division of Taxation in the Department of Treasury to establish such excise fee.
Repealer
The substitute repeals the supplemental provisions of P.L.2024, c.73, the law concerning intoxicating hemp, including 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.
FISCAL IMPACT:
Fiscal information for this bill is currently unavailable.