LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 4297
[First Reprint]
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: MAY 29, 2026
SUMMARY
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Synopsis: |
Revises certain restrictions concerning hemp, intoxicating hemp beverages, and medical cannabis. |
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Type of Impact: |
Annual State Revenue impact. |
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Agencies Affected: |
Cannabis Regulatory Commission; Division of Alcoholic Beverage Control in the Department of Law and Public Safety; Department of the Treasury; municipalities. |
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Annual Fiscal Impact |
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State Revenue Impact |
Indeterminate |
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· The Office of Legislative Services (OLS) finds that the bill will have an indeterminate fiscal impact on annual State revenues. Some provisions of the bill would increase access to and sales of certain hemp and cannabis products, which would increase State revenue collections, while other provisions would negatively impact access, sales, and State revenues.
· The OLS lacks the informational basis necessary to quantify the magnitude or direction of these revenue impacts because the bill’s net impact on consumer demand and business activity cannot be ascertained.
BILL DESCRIPTION
This bill revises certain restrictions concerning hemp, intoxicating hemp beverages, and medical cannabis.
Under current law, hemp producers may possess or transport certain intermediate hemp-derived cannabinoid products exceeding the statutory THC limit until May 31, 2026, provided the products are undergoing processing and are not intended for human or animal consumption at that stage. The bill extends this deadline to November 13, 2026.
The bill also permits certain licensees of the Division of Alcoholic Beverage Control and the Cannabis Regulatory Commission to continue selling intoxicating hemp beverages through November 13, 2026.
Additionally, the bill revises certain packaging, labeling, and retail sale requirements applicable to intoxicating hemp beverages. Under the bill, intoxicating hemp beverages may only be sold in certain container forms and remain subject to certificate of analysis requirements and cannabinoid concentration testing standards. Moreover, the bill expands the ability of the Division of Alcoholic Beverage Control 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 bill further revises certain retail display requirements applicable to intoxicating hemp beverages sold by Alcoholic Beverage Control licensees by permitting customer access to the products without employee assistance, provided certain notice, monitoring, and age verification requirements are satisfied.
Finally, the bill provides that certain medical cannabis dispensaries applying for a Class 5 adult-use cannabis retailer license would not require additional municipal review or approval if the dispensary is co-located with an existing medical cannabis dispensary in a municipality that permits medical cannabis dispensaries.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill will have an indeterminate fiscal impact on annual State revenues. Some provisions of the bill would increase access to and sales of certain hemp and cannabis products, which would increase State revenue collections, while other provisions would negatively impact access, sales, and State revenues.
Under current law, certain restrictions concerning intoxicating hemp beverages were scheduled to take effect beginning May 31, 2026, during FY 2026. The bill extends certain deadlines and implementation requirements to November 13, 2026, thereby shifting certain potential fiscal impacts from FY 2026 into FY 2027.
The OLS notes that the bill revises various regulatory requirements concerning intoxicating hemp beverages, including packaging requirements, retail display restrictions, sales authorization, and product compliance standards. These revised requirements would affect the manner in which intoxicating hemp beverages are sold in the State, which could reduce sales and State revenue collections associated with those sales.
Conversely, the bill permits certain holders of liquor licenses to sell packaged intoxicating hemp beverages for off-premises consumption, except for bars located within hotels, restaurants, entertainment venues, and bowling alleys. The OLS notes that this expanded authorization may increase sales activity associated with intoxicating hemp beverages, which would increase State revenue collections. Moreover, Medical cannabis dispensaries gaining adult use sales rights without further municipal approval would increase public access to cannabis products, which would positively impact State revenue collections.
However, the OLS lacks the informational basis necessary to quantify the magnitude or direction of any potential revenue impact because future consumer demand, business activity, regulatory compliance costs, and market responses to the revised regulatory structure are currently unknown.
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Section: |
Revenue, Finance, and Appropriations |
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Analyst: |
Associate Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).