SENATE JUDICIARY COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 5051

STATE OF NEW JERSEY

DATED:  MAY 21, 2026

      The Senate Judiciary Committee reports favorably Assembly Bill No. 5051 (1R).

      This bill revises certain restrictions concerning hemp, intoxicating hemp beverages, and medical cannabis.

Hemp and Intoxicating Hemp Beverages

      Under current law, hemp producers may possess or transport material in excess of the 0.3 percent statutory tetrahydrocannabinol (THC) limit, until May 31, 2026, if the material is an intermediate hemp-derived extract that is in the process of being manufactured into a final product that meets the legal THC limits.  Additionally, effective May 31, 2026, intoxicating hemp beverages will be limited to five milligrams of total THC per serving, or 10 milligrams of total THC per container, may only be sold by certain licensees of the Division of Alcoholic Beverage Control (ABC) or the Cannabis Regulatory Commission (CRC), and will require a certificate of analysis.  Effective May 31, 2026, sales by ABC licensees will be subject to certain product display and customer age verification restrictions.  Effective November 13, 2026, in conformity with federal law, intoxicating hemp beverages may no longer be sold by ABC licensees, and the sale of such products by CRC licensees will be treated in the same manner as adult use cannabis.

      Under the bill, the May 31, 2026 deadlines applicable to hemp producers are extended to November 13, 2026.

      The bill repeals the requirement that ABC licensees store or display intoxicating hemp beverages in a place that is not accessible to customers without employee assistance.

      The bill requires ABC licensees to segregate the placement of intoxicating hemp beverages from other intoxicating liquors and to inform customers of the appropriate serving size of the beverage.

      Additionally, the bill changes the size limits of intoxicating hemp beverages, effective May 31, 2026, to two container forms:

      (a) a can containing not more than 10 milligrams of total THC per can; or

      (b) a resealable bottle of 750 milliliters in volume containing 40 servings of 5 milligrams of total THC per serving or not more than 200 milligrams of total THC per bottle.

      Concerning certificates of analysis for intoxicating hemp beverages, the bill allows for a 10 percent margin of error in cannabinoid concentration in the required laboratory testing results.

      The bill expands the ability of ABC licensed bars that sell packaged alcoholic beverages for off premises consumption to also sell intoxicating hemp beverages, provided that the bar is not part of or located within a hotel, restaurant, entertainment facility, or bowling alley.

      The November 13, 2026 deadline ending sales by ABC licensees remains in place.

Medical Cannabis

      The bill allows a medical cannabis dispensary that is applying for a Class 5 adult use cannabis retailer license to be co-located with the medical dispensary to not require additional municipal review, if it is located in a municipality that already allows medical cannabis dispensaries to operate.  Thus, an existing medical cannabis dispensary would not need separate municipal approval for the Class 5 adult use retailer portion of its business premises.

      As reported by the committee, Assembly Bill No. 5051 (1R) is identical to Senate Bill No. 4297, which was also amended and reported by the committee on this date.