Requires registration and regulation of certain hemp-derived cannabinoids manufactured and sold in this State.

A4082

ASSEMBLY, No. 4082

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Assemblywoman� ANNETTE QUIJANO

District 20 (Union)

SYNOPSIS

���� Requires registration and regulation of certain
hemp-derived cannabinoids manufactured and sold in this State.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning certain hemp-derived cannabinoids and
amending and supplementing various parts of the statutory law.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� (New section)� The
Legislature finds and declares that psychoactive hemp-derived cannabinoid
products, such as foods, supplements, cosmetics, and inhalables, can contain
more psychoactive cannabinoid than is lawfully permitted to be sold in
unregulated form, and yet such products are being sold in New Jersey, in
increasing amounts outside the regulatory structure in place for cannabis and
hemp.� Delta-8-THC, a hemp-derived substance that is legal in New Jersey, is an
extract of hemp that has psychoactive properties lower than the federal limit of
0.3 percent Delta-9 THC, and, as such, currently is legal.� However, products
containing Delta-8-THC are being marketed without adequate notice of content.
The THC content in Delta-8-THC products has been found, in independent testing,
to be as high as the THC in cannabis products, and these products contain
previously unknown isomers and cannabinoids.� Registration, testing, labeling,
and other regulatory requirements for hemp-derived cannabinoid products through
the New Jersey regulatory structure are necessary to ensure the safety of
products sold to the public.�

���� The Cannabis Regulatory
Commission (the commission) is uniquely positioned to track, through a
registration process, hemp-derived cannabinoid product manufactured outside the
New Jersey regulatory structure, and establish other safety and testing requirements.

���� 2.� (New section)� As used in
this act, unless the context otherwise requires:

����
�Artificially derived
cannabinoid� means a chemical substance that is created by a chemical reaction
that changes the molecular structure of any chemical substance derived from the
plant Cannabis.

���� �Cannabidiol (CBD)� means a
nonpsychoactive cannabinoid found in the cannabis sativa plant.� CBD has� the
formula C21H30O2 and chemical structure, inclusive of stereochemical
variations.

���� �Cannabidiolic acid (CBDA)�
means the cannabinoid having the formula C22H30O4 and chemical structure,
inclusive of stereochemical variations.� It is the precursor to cannabidiol
(CBD).

����
�Cannabinoids� means
compounds structurally defined as a diverse class of C21 or C22 terpenophenolic
compounds found in Cannabis sativa L., their carboxylic acids, analogs, and
transformation products. The term is also used in the scientific literature to
represent structurally unrelated cannabimimetic compounds. The main
cannabinoids found in cannabis plants are Tetrahydrocannabinol (THC) and
Cannabidiol (CBD).� In addition to THC and CBD, there are more than 100
cannabinoids that could be identified.�

����
�Cannabis� means the
Cannabis sativa plant, referred to as cannabis, an umbrella term that includes
marijuana and hemp depending on its THC concentration level.� Cannabis is a
genus of flowering plants in the family Cannabaceae of which Cannabis sativa is
a species, and Cannabis indica and Cannabis ruderalis are subspecies thereof.

���� �Cannabimimetic� means a compound
that is not structurally a cannabinoid, but which can elicit a biological
response similar to those produced by cannabinoids by acting directly or
indirectly on cannabinoid receptors in the body.

���� �Contamination� means
microbiological, chemical, radiological, or physical substances that either
develop in or are added (purposefully or unknowingly) to consumable hemp
products or ingredients and are unsafe for human consumption or in violation of
a regulatory standard.

���� "CBD" means
cannabidiol, a cannabinoid.

���� �Delta-8-tetrahydrocannabinol
(Delta-8-THC)� means a psychoactive cannabinoid compound found in the Cannabis
sativa plant, but does not occur in naturally significant amounts.� It has the
chemical formula C21H30O2 and the chemical structure inclusive of
stereochemical variations.

���� �Delta-9-tetrahydrocannabinol
(Delta-9-THC)� means a psychoactive cannabinoid compound found in the Cannabis
sativa plant, and the primary psychoactive compound found in marijuana.�
Delta-9-THC is referred to as �THC.�� THC has the formula C21H30O2 and the
chemical structure inclusive of stereochemical variations.�

����
�Dry weight basis�
refers to a method of determining the percentage of a chemical in a substance
after removing the moisture from the substance. The ratio of the amount of
moisture in a sample to the amount of dry solid in a sample.

����
�Decarboxylation� means
a process of treating a cannabis material or product to remove carboxyl groups
from the cannabinoids native in the plant, to form transformation products such
as THC and CBD.� Decarboxylation is commonly accomplished by application of
heat.� Decarboxylation is not considered a synthetic process.

���� �Hemp� means the plant
Cannabis sativa L. and any part of that plant, including the seeds thereof and
all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of
isomers, whether growing or not, with Delta-9. tetrahydrocannabinol
concentrations of not more than 0.3 percent on a dry weight basis.

���� "Hemp-derived
cannabinoid" means:� a cannabinoid or an isomer created from such
cannabinoid, that is derived from hemp in a concentration of more than
one-tenth of one percent (0.1%); or a hemp-derived product containing delta-9
tetrahydrocannabinol in a concentration of three-tenths of one percent (0.3%)
or less on a dry weight basis.

���� �Hemp-derived cannabinoid
product� means a product derived from hemp with not greater than 0.3 percent
Delta-9-THC.

���� "Hemp-derived cannabinoid
retailer" means a person or entity that sells products containing a hemp-derived
cannabinoid for consumption and not for resale.

���� �Intoxicating
tetrahydrocannabinols� means naturally occurring, synthetically derived,
isomerized, or synthetically converted tetrahydrocannabinols which, when
consumed, have the potential to induce disturbances in nervous system function
and may result in changes in cognition, perception, judgement, mood,
consciousness, or behavior, that resolve with time.

���� �Isomers� are molecules or
polyatomic ions with identical molecular formulae � that is, same number of
atoms of each element � but distinct arrangements of atoms in space.

���� �Isomerization� is the process
in which a molecule, polyatomic ion or molecular fragment is transformed into
an isomer with a different chemical structure.

���� "Manufacturer" means
a person or entity that compounds, blends, extracts, infuses, cooks, refines,
purifies, converts, synthesizes or otherwise makes or prepares products
containing a hemp-derived cannabinoid, including the processes of extraction,
infusion, packaging, repackaging, labeling, and relabeling of products
containing a hemp-derived cannabinoid.

���� "Proof of age" means
a valid driver license or other government-issued identification card that
contains a photograph of the person and confirms the person's age as twenty-one
(21) years of age or older.

���� �Synthetic cannabinoid� means
a cannabinoid synthesized in a laboratory or by industry using directed
synthetic conversion or biosynthetic chemistry rather than traditional food
preparation techniques such as heating or extracting. They may be nature-identical
or artificial since this definition refers only to the process of their
creation.

���� �Terpenes� means a class of
unsaturated hydrocarbons produced predominately in plants built up from
isoprene (C5H8)n units. Terpenes are classified by the number of isoprene units
or carbons 5 units: monoterpenes (C10), sesquiterpenes (C15), diterpenes (C20),
sesterterpenes (C25), triterpenes (C30), sesquarterpenes (C35), tetrterpenes
(C40), etc. Terpenoids are modified terpenes containing different functional
groups and oxidized methyl groups.

���� "Tetrahydrocannabinol"
or "THC" means all naturally or artificially derived
tetrahydrocannabinols, or any structural, optical or geometric isomers or
analogs of tetrahydrocannabinols. This includes, but is not limited to, Delta-1
tetrahydrocannabinol; Delta-6 tetrahydrocannabinol; Delta 3,4
tetrahydrocannabinol; Delta-8 tetrahydrocannabinol; Delta-9
tetrahydrocannabinol; Delta-10 tetrahydrocannabinol, Delta-11
tetrahydrocannabinol; and any other artificially derived cannabinoid that may
have an intoxicating or psychoactive effect. THC is a cannabinoid.

����
�Tetrahydrocannabiolic
acid (THCA)� means a naturally occurring cannabinoid compound found in the
cannabis sativa plant. THCA is the precursor to THC through decarboxylation.
THCA has the chemical formula C22H30O4.

���� "THC" means
tetrahydrocannabinol, a cannabinoid.

���� 3.��� Section 6 of P.L. 2021,
c. 16 (C.24:6I-34) is amended to read as follows:

���� 6. Commission Activities
Associated with the Personal Use of Cannabis
and Hemp-derived Cannabinoids
.

���� a.� The Cannabis Regulatory
Commission shall have all powers necessary or proper to enable it to carry out
the commission's duties, functions, and powers under P.L.2021, c.16 (C.24:6I-31
et al.)
and under P.L.�� c.� (C.��� ) (pending before the Legislature as
this bill)
. The jurisdiction, supervision, duties, functions, and powers of
the commission extend to any person who buys, sells, cultivates, produces,
manufactures, transports, or delivers any cannabis
,

[
or
]
cannabis
items
, hemp-derived cannabinoids, or psychoactive cannabinoid items

within this State.

���� b.��� The duties, functions
and powers of the commission shall include the following:

���� (1)��
(a)
� To regulate
the purchase, sale, cultivation, production, manufacturing, transportation, and
delivery of cannabis or cannabis items in accordance with the provisions of
P.L.2021, c.16 (C.24:6I-31 et al.)

����
(b)� To regulate the
purchase, sale, transportation, and delivery of hemp-derived cannabinoids, or
hemp-derived cannabinoid products in accordance with the provisions of P.L.�� ,
c.� (C.��� ) (pending before the Legislature as this bill)
;

���� (2)�� To grant, refuse,
suspend, revoke, cancel, or take actions otherwise limiting licenses or
conditional licenses for the sale, cultivation, production, or manufacturing of
cannabis items, or other licenses in regard to cannabis items, and to permit,
in the commission's discretion, the transfer of a license between persons;

���� (3)�� To investigate and aid
in the prosecution of every violation of the statutory laws of this State
relating to cannabis and cannabis items and to cooperate in the prosecution of
offenders before any State court of competent jurisdiction;

���� (4)�� To adopt, amend, or
repeal regulations as necessary to carry out the intent and provisions of
P.L.2021, c.16 (C.24:6I-31 et al.)
and P.L. ���, c.� (C.��� ) (pending
before the Legislature as this bill)
;

���� (5)�� To exercise all powers
incidental, convenient, or necessary to enable the commission to administer or
carry out the provisions of P.L.2021, c.16 (C.24:6I-31 et al.), or any other
law of this State that charges the commission with a duty, function, or power
related to personal use cannabis. Powers described in this paragraph include,
but are not limited to:

���� (a)�� Issuing subpoenas;

���� (b)�� Compelling attendance of
witnesses;

���� (c)�� Administering oaths;

���� (d)�� Certifying official
acts;

���� (e)�� Taking depositions as
provided by law;

���� (f)�� Compelling the
production of books, payrolls, accounts, papers, records, documents, and
testimony; and

���� (g)�� Establishing fees in
addition to the application, licensing, and renewal fees, provided that any fee
established by the commission is reasonably calculated not to exceed the cost
of the activity for which the fee is charged;

���� (6)�� To adopt rules
regulating and prohibiting the advertising of cannabis items in a manner that
is appealing to minors; that promotes excessive use; that promotes illegal
activity; or that otherwise presents a significant risk to public health and
safety; and

���� (7)�� To regulate the use of
cannabis and cannabis items for scientific, pharmaceutical, manufacturing,
mechanical, industrial, and other purposes.

���� c.����
(1)
� The powers
of the commission further include the power to purchase, seize, possess, and
dispose of cannabis and cannabis items.� The commission may purchase, possess,
seize, or dispose of cannabis and cannabis items as is necessary to ensure
compliance with and enforcement of the provisions of P.L.2021, c.16 (C.24:6I-31
et al.), and any rule adopted pursuant thereto.� Any State officer, board,
commission, corporation, institution, department, or other State body, and any
local officer, board, commission, institution, department, or other local
government body, that is permitted by the statutory laws of this State to
perform a duty, function, or power with respect to cannabis or a cannabis item,
may purchase, possess, seize, or dispose of the cannabis or cannabis item as
the State officer, board, commission, corporation, institution, department or
other State body, or the local officer, board, commission, institution,
department, or other local government body, considers necessary to ensure
compliance with and enforce the applicable statutory law or any rule adopted
under the applicable statutory law.

����
(2)� The powers of the
commission further include the power to purchase, seize, possess, or dispose of
hemp-derived cannabinoid products, and to ensure compliance with and
enforcement of the provisions of P.L. 2019, c. 238 (C.4:28-6 et al.), and any
rule adopted pursuant thereto.� Any State officer, board, commission,
corporation, institution, department, or other State body, and any local officer,
board, commission, institution, department, or other local government body,
that is permitted by the statutory laws of this State to perform a duty,
function, or power with respect to cannabis or a cannabis item, may purchase,
possess, seize, or dispose of the hemp-derived cannabinoid product as the State
officer, board, commission, corporation, institution, department or other State
body, or the local officer, board, commission, institution, department, or
other local government body, considers necessary to ensure compliance with and
enforce the applicable statutory law or any rule adopted under the applicable
statutory law.

���� d. (1) (a)
(i)
Within
180 days after the effective date of this section, which takes effect
immediately upon enactment of P.L.2021, c.16 (C.24:6I-31 et al.), or within 45
days of all five members of the commission being duly appointed in accordance
with the appointment process set forth in paragraph (2) of subsection b. of
section 31 of P.L.2019, c.153 (C.24:6I-24), whichever date is later, and
notwithstanding the provisions of the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the commission, after
consultation with the Attorney General, State Treasurer, Commissioner of
Health, and Commissioner of Banking and Insurance shall, immediately upon
filing proper notice with the Office of Administrative Law, adopt rules and
regulations prepared by the commission necessary or proper to enable it to
carry out the commission's duties, functions, and powers with respect to
overseeing the development, regulation, and enforcement of activities
associated with the personal use of cannabis pursuant to P.L.2021, c.16
(C.24:6I-31 et al.).

����
(ii) Within 180 days of the
effective date of P.L.��� , c.�� (C.����� ) (pending before the Legislature s
this bill) the Commissioner of Agriculture shall, immediately upon filing
proper notice with the Office of Administrative Law, adopt rules and regulations
prepared by the commission necessary or proper to enable it to carry out the
commission's duties, functions, and powers with respect to the registration and
sale of hemp-derived cannabinoid products.

���� (b)�� The initial rules and
regulations adopted pursuant to subparagraph (a) of this paragraph shall be in
effect for a period not to exceed one year after the date of filing with the
Office of Administrative Law.� These rules and regulations shall thereafter be
adopted, amended, or readopted, and any subsequent rules and regulations
adopted, amended, or readopted, by the commission in accordance with the
requirements of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), after consultation with other department heads, as the
commission deems appropriate.

���� (2)�� On the date of adoption
of the initial rules and regulations pursuant to subparagraph (a) of paragraph
(1) of this subsection, the provisions of P.L.2021, c.16 (C.24:6I-31 et al.)
shall become operative, other than those provisions which were operative immediately
upon enactment.� Subsequent to the date of adoption of the initial rules and
regulations, the commission shall determine the first date thereafter on which
cannabis retailers issued licenses and conditional licenses may begin retail
sales of personal use cannabis items, which latter date shall not be more than
180 days after the commission's adoption of its initial rules and regulations.�
The commission shall provide every person or entity issued licenses or
conditional licenses by the commission with at least 30 days' notice of this
date, and shall also provide this notice to every alternative treatment center
deemed to be licensed for personal use cannabis activities pursuant to section
7 of P.L.2009, c.307 (C.24:6I-7), as amended by P.L.2021, c.16 (C.24:6I-31 et
al.)
and every hemp-derived cannabinoid retailer registered pursuant to
P.L.� c. (C.������ ) (pending before the Legislature as this bill)
, whether
or not already engaged in retail sales of personal use cannabis items as
permitted prior to the retail sales date established pursuant to this
paragraph, as set forth in paragraph (3) of subsection a. of section 33 of
P.L.2021, c.16 (C.24:6I-46).

(cf: P.L.2021, c.16, s.6)

���� 4.� (New section)� Regulation
of Hemp-derived Cannabinoids.

���� a.���� The commission shall
adopt rules and regulations, pursuant to subsection d. of section 6 of
P.L.2021, c.16 (C.24:6I-34), which shall be consistent with the intent of P.L.��
, c.� (C.��� ) (pending before the Legislature as this bill).� The commission
may create an expert task force to make recommendations to the commission about
the content of such regulations. Such regulations shall include:

���� (1)� registration requirements
for hemp-derived cannabinoids

whether or not �produced or manufactured
in this State including:

���� (a)� registration by producers
or manufacturers of hemp-derived cannabinoid products in a State database;

���� (b)� registration by retailers
of hemp-derived cannabinoid products; and

���� (c)� a registration fee to
fund operations of this registration program;

���� (2)�� Permit requirements for
retailers of hemp-derived cannabinoid products;

���� (3) Security requirements for
establishments that sell hemp-derived cannabinoid, or cannabinoid items;

���� (4)�� Age requirements to
prevent the sale or diversion of hemp derived cannabinoid items to persons
under the legal age to purchase cannabis items including, but not limited to,
requirements that:

���� (a)�� A hemp-derived
cannabinoid retailer, before selling a hemp-derived cannabinoid product to any
person, shall require the person to produce one of the following pieces of
identification:

���� (i)��� The person's United
States passport, or other country's passport or proper government-issued
documentation for international travel if a citizen or other lawfully
recognized resident of that country, who is lawfully permitted to possess and
use that country's passport or government-issued documentation for purposes of
identification in the United States;

���� (ii)�� The person's motor
vehicle driver's license, whether issued by New Jersey or by any other state,
territory, or possession of the United States, or the District of Columbia,
provided the license displays a picture of the person;

���� (iii)� A New Jersey
identification card issued by the New Jersey Motor Vehicle Commission; or

���� (iv)� Any other identification
card issued by a state, territory, or possession of the United States, the
District of Columbia, or the United States that bears a picture of the person,
the name of the person, the person's date of birth, and a physical description
of the person;

���� (b)�� A hemp-derived
cannabinoid retailer shall not allow persons under age 21 to purchase a
hemp-derived cannabinoid product with detectable THC;

���� (c)�� Packaging and branding
regulations to prevent the marketing of hemp-derived cannabinoid products to
people under the legal age to purchase hemp-derived cannabinoid products;

���� (5)�� Labeling and packaging
requirements for hemp-derived cannabinoid products sold or distributed by a
hemp-derived retail retailer, and requirements that:

���� (a)�� Hemp-derived cannabinoid
product are not packaged, branded, or marketed using any statement,
illustration, or image that:

���� (i)��� Includes false,
deceptive, or misleading statements;

���� (ii)�� Promotes
over-consumption;

���� (iii)� Depicts a child or
other person under legal age consuming cannabis items; or

���� (iv)� Includes objects, such
as toys, characters, or cartoon characters suggesting the presence of a person
under the legal age to purchase cannabis items, or any other depiction designed
in any manner to be especially appealing to persons under the legal age to
purchase hemp-derived cannabinoid products;

���� (b)�� Ensure hemp-derived
cannabinoid products are packaged in opaque, child-resistant special packaging,
or if applicable to a particular hemp-derived cannabinoid product,
child-resistant special packaging for liquid nicotine containers, in accordance
with the "Poison Prevention Packaging Act of 1970," 15 U.S.C. s.1471
et seq., and the associated regulations promulgated thereunder;

���� (c)�� hemp-derived cannabinoid
product warning labels adequately inform consumers about safe hemp-derived
cannabinoid product use and warn of the consequences of misuse or overuse;

���� (d)�� Labeling rules that
mandate clear identification of health and safety information, including, but
not limited to:

���� (i)��� Net weight;

���� (ii)�� Production date and
expiration date;

���� (iii)� For a hemp-derived
cannabinoid product, hemp-derived cannabinoid extract or isolate, or other
hemp-derived cannabinoid resin, an ingredient list that includes, but is not
limited to, all ingredients used to manufacture the hemp-derived cannabinoid
product, any other inactive or excipient ingredients besides hemp-derived
cannabinoid, and a list of all potential allergens contained within the
product;

���� (iv)� Strain or type of
hemp-derived cannabinoid, listed by scientific terms, if available, and generic
or "slang" names;

���� (v)�� Whether the product
requires refrigeration;

���� (vi)� For a hemp-derived
cannabinoid product, serving size or usage quantity, the total number of
servings or uses, and a statement regarding the percentage of THC or other
cannabinoids contained in the hemp-derived cannabinoid product and in each
serving.� For example: "The serving size of active THC in this product is
X mg. This product contains X servings of hemp-derived cannabinoid, and the
total amount of active THC in this product is X mg.";

���� (vii) Warning labels that
include the nationwide toll-free telephone number used to access poison control
centers that is maintained in accordance with 42 U.S.C. s.300d-71, as well as
include, but are not limited to, one or more of the following statements, if
applicable to a particular hemp-derived cannabinoid product:

���� -- "This product contains
hemp-derived cannabinoids";

���� -- "This product is
infused with hemp-derived cannabinoids";

���� -- "This product is
intended for use by adults 21 years of age or older. Keep out of the reach of
children";

���� -- "The intoxicating
effects of this product may be delayed by two or more hours";

���� -- "There may be health
risks associated with the consumption of this product, including for women who
are pregnant, breastfeeding, or planning on becoming pregnant";

���� -- "Do not drive a motor
vehicle or operate heavy machinery while using this product;"

���� (e)�� Labeling rules that
mandate the source of a hemp-derived cannabinoid product including, but not
limited to, the license number of the hemp-derived cannabinoid product producer
where the usable hemp-derived cannabinoid used for the hemp-derived cannabinoid
product was grown, the license number of the hemp-derived cannabinoid product
manufacturer that manufactured the hemp-derived cannabinoid product, and the
license number of the hemp-derived cannabinoid retailer that sold the
hemp-derived cannabinoid product and the production batch and lot number of the
hemp-derived cannabinoid product;

���� (f)�� The commission shall not
be required to obtain a search warrant to conduct an investigation or search of
licensed premises;

���� (6)� Procedures for the
commission to conduct announced and unannounced visits to hemp-derived
cannabinoid retail establishments; and to make, or cause to be made, such
investigations as it shall deem proper in the administration of
P.L. , c. (C. ) (pending before the Legislature as this bill) and any
other laws which may hereafter be enacted concerning hemp-derived cannabinoid
manufactured outside the New Jersey regulatory structure, or the production,
manufacture, distribution, sale, or delivery thereof, including the inspection
and search of any premises for which a

hemp-derived cannabinoid retail
permit is sought or has been issued, of any building containing the same, of
licensed buildings, and examination of the books, records, accounts, documents
and papers of the licensees or on the licensed premises;

���� (7)�� Civil penalties for the
failure to comply with regulations adopted pursuant to this section.

���� b.��� In order to ensure that
individual privacy is protected, the commission shall not require a consumer to
provide a hemp-derived cannabinoid retailer with personal information other
than government-issued identification as set forth in subparagraph (a) of paragraph
(6) of subsection a. of this section in order to determine the consumer's
identity and age, and a hemp-derived cannabinoid retailer shall not collect and
retain any personal information about consumers other than information
typically acquired in a financial transaction conducted by the holder of a
Class C retail license concerning alcoholic beverages as set forth in
R.S.33:1-12.

���� c.���� The commission shall:

���� (1)�� Examine available
research, and may conduct or commission new research or convene an expert task
force, to investigate the influence of hemp-derived cannabinoids manufactured
outside the New Jersey regulatory structure on the ability of a person to drive
a vehicle, on methods for determining whether a person is under the influence
of hemp-derived cannabinoid, and on the concentration of active THC, as defined
in section 3 of P.L.2021, c.16 (C.24:6I-33), in a person's blood, in each case
taking into account all relevant factors; and

���� (2)�� Report the results of
the research to the Governor and, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), the Legislature and make recommendations regarding both
administrative and legislative action as the commission deems necessary.

���� 5.� Section 24 of P.L. 2019,
c.153 (C.24:6I-17) is amended to read as follows:

���� 24. a. (1) Each batch of
medical cannabis cultivated by a medical cannabis cultivator or a clinical
registrant and each batch of a medical cannabis product manufactured by a
medical cannabis manufacturer or a clinical registrant shall be tested in
accordance with the requirements of section 26 of P.L.2019, c.153 (C.24:6I-19)
by a laboratory licensed pursuant to section 25 of P.L.2019, c.153 (C.24:6I-18)
or cannabis testing facility licensed pursuant to section 18 of P.L.2021, c.16
(C.24:6I-35). The laboratory or facility performing the testing shall produce a
written report detailing the results of the testing, a summary of which shall
be included in any packaging materials for medical cannabis and medical
cannabis products dispensed to qualifying patients and their designated and
institutional caregivers.� The laboratory or facility may charge a reasonable
fee for any test performed pursuant to this section.

���� (2) Each sample of usable
cannabis, cannabis products, cannabis extracts, or other cannabis resins from a
cannabis cultivator or cannabis manufacturer may be tested in accordance with
the provisions of section 18 of P.L.2021, c.16 (C.24:6I-35) by a laboratory
licensed pursuant to section 25 of P.L.2019, c.153 (C.24:6I-18).�

����
(3)� Each sample of
hemp-derived cannabinoid product shall be tested in accordance with the
requirements of section 26 of P.L.2019, c.153 (C.24:6I-19) by a laboratory
licensed pursuant to section 25 of P.L.2019, c.153 (C.24:6I-18) or cannabis
testing facility licensed pursuant to section 18 of P.L.2021, c.16
(C.24:6I-35).�

���� b.��� The requirements of
paragraph (1) of subsection a. of this section shall take effect at such time
as the commission certifies that a sufficient number of laboratories have been
licensed pursuant to section 25 of P.L.2019, c.153 (C.24:6I-18), or pursuant to
section 18 of P.L.2021, c.16 (C.24:6I-35), to ensure that all medical cannabis
and medical cannabis products can be promptly tested consistent with the
requirements of this section without disrupting patient access to medical
cannabis.� Once the requirements of that paragraph have taken effect, a
laboratory licensed pursuant to section 25 of P.L.2019, c.153 (C.24:6I-18)
shall not make operational changes that reduce the prompt testing of medical
cannabis and medical cannabis products, thereby disrupting patient access to
medical cannabis, in order to test samples of usable cannabis, cannabis
products, cannabis extracts, or any other cannabis resins in accordance with
section 18 of P.L.2021, c.16 (C.24:6I-35).

(cf: P.L.2021, c.16, s.28)

���� 6.� Section 25 of P.L. 2019,
c.153 (C.24:6I-18) is amended to read as follows:

���� 25. a. (1) A laboratory that
performs testing services pursuant to section 24 of P.L.2019, c.153
(C.24:6I-17) shall be licensed by the commission and may be subject to
inspection by the commission to determine the condition and calibration of any
equipment used for testing purposes and to ensure that testing of medical
cannabis and medical cannabis products is being performed in accordance with
the requirements of section 26 of P.L.2019, c.153 (C.24:6I-19), and the testing
of usable cannabis, cannabis� products, cannabis extracts,
[
or
]
any other
cannabis resins
, and hemp-derived cannabinoid products
is being
performed in accordance with the requirements of section 18 of P.L.2021, c.16
(C.24:6I-35).� Each applicant for licensure pursuant to this section shall
submit an attestation signed by a bona fide labor organization stating that the
applicant has entered into a labor peace agreement with such bona fide labor
organization.� The maintenance of a labor peace agreement with a bona fide
labor organization shall be an ongoing material condition of maintaining a
license to test all forms of cannabis.

���� As used in this paragraph,
"bona fide labor organization" means a labor organization of any kind
or employee representation committee, group, or association, in which employees
participate and which exists and is constituted for the purpose, in whole or in
part, of collective bargaining or otherwise dealing with medical or personal
use cannabis employers concerning grievances, labor disputes, terms or
conditions of employment, including wages and rates of pay, or other mutual aid
or protection in connection with employment, and may be characterized by: it
being a party to one or more executed collective bargaining agreements with
medical or personal use cannabis employers, in this State or another state; it
having a written constitution or bylaws in the three immediately preceding
years; it filing the annual financial report required of labor organizations
pursuant to subsection (b) of 29 U.S.C s.431, or it having at least one audited
financial report in the three immediately preceding years; it being affiliated
with any regional or national association of unions, including but not limited
to state and federal labor councils; or it being a member of a national labor
organization that has at least 500 general members in a majority of the 50
states of the United States.

���� (2)�� Any laboratory licensed
pursuant to this section prior to the effective date of P.L.2021, c.16
(C.24:6I-31 et al.) to only test medical cannabis and medical cannabis products
shall be authorized to test usable cannabis, cannabis products, cannabis extracts,
or any other cannabis resins
, and hemp-derived cannabinoids
under an
existing license in good standing, if the laboratory certifies to the
commission that its facility, and the condition and calibration of any
equipment used for testing meet the commission's accreditation requirements for
licensure as a cannabis testing facility, its testing procedures will be
performed in accordance with the requirements of section 18 of P.L.2021, c.16
(C.24:6I-35), and it will not make operational changes that reduce the prompt
testing of medical cannabis and medical cannabis products as required by
subsection b. of section 24 of P.L.2019, c.153 (C.24:6I-17).� The commission
shall acknowledge receipt of the laboratory's certification in writing to that
laboratory, which shall serve as notice and recognition that the laboratory may
test� usable cannabis, cannabis� product, cannabis extract, or any other
cannabis resin under the existing license.

���� b.��� There shall be no upper
limit on the number of laboratories that may be licensed to perform testing
services.

���� c.���� A person who has been
convicted of a crime involving any controlled dangerous substance or controlled
substance analog as set forth in chapter 35 of Title 2C of the New Jersey
Statutes except paragraph (4) of subsection a. of N.J.S.2C:35-10, or any similar
law of the United States or any other state shall not be issued a license to
operate as or be a director, officer, or employee of a medical cannabis testing
laboratory, unless such conviction occurred after the effective date of
P.L.2009, c.307 (C.24:6I-1 et al.) and was for a violation of federal law
relating to possession or sale of cannabis for conduct that is authorized under
P.L.2009, c.307 (C.24:6I-1 et al.) or P.L.2015, c.158 (C.18A:40-12.22 et al.).

���� d. (1) The commission shall
require each applicant for licensure as a medical cannabis testing laboratory
to undergo a criminal history record background check, except that no criminal
history record background check shall be required for an applicant who
completed a criminal history record background check as a condition of
professional licensure or certification.

���� For purposes of this section,
the term "applicant" shall include any owner, director, officer, or
employee of a medical cannabis testing laboratory. The commission is authorized
to exchange fingerprint data with and receive criminal history record
background information from the Division of State Police and the Federal Bureau
of Investigation consistent with the provisions of applicable federal and State
laws, rules, and regulations.� The Division of State Police shall forward
criminal history record background information to the commission in a timely
manner when requested pursuant to the provisions of this section.

���� An applicant who is required
to undergo a criminal history record background check pursuant to this section
shall submit to being fingerprinted in accordance with applicable State and
federal laws, rules, and regulations.� No check of criminal history record
background information shall be performed pursuant to this section unless the
applicant has furnished the applicant's written consent to that check.� An
applicant who is required to undergo a criminal history record background check
pursuant to this section who refuses to consent to, or cooperate in, the
securing of a check of criminal history record background information shall not
be considered for a license to operate, or authorization to be employed at, a
medical cannabis testing laboratory.� An applicant shall bear the cost for the
criminal history record background check, including all costs of administering
and processing the check.

���� (2)�� The commission shall not
approve an applicant for a license to operate, or authorization to be employed
at, a medical cannabis testing laboratory if the criminal history record
background information of the applicant reveals a disqualifying conviction as
set forth in subsection c. of this section.

���� (3)�� Upon receipt of the
criminal history record background information from the Division of State
Police and the Federal Bureau of Investigation, the commission shall provide
written notification to the applicant of the applicant's qualification or
disqualification for a license to operate or be a director, officer, or
employee of a medical cannabis testing laboratory.

���� If the applicant is
disqualified because of a disqualifying conviction pursuant to the provisions
of this section, the conviction that constitutes the basis for the
disqualification shall be identified in the written notice.

���� (4)�� The Division of State
Police shall promptly notify the commission in the event that an individual who
was the subject of a criminal history record background check conducted
pursuant to this section is convicted of a crime or offense in this State after
the date the background check was performed.� Upon receipt of that
notification, the commission shall make a determination regarding the continued
eligibility to operate or be a director, officer, or employee of a medical
cannabis testing laboratory.

���� (5)�� Notwithstanding the
provisions of subsection c. of this section to the contrary, the commission may
offer provisional authority for an applicant to be an owner, director, officer,
or employee of a medical cannabis testing laboratory for a period not to exceed
three months if the applicant submits to the commission a sworn statement
attesting that the person has not been convicted of any disqualifying
conviction pursuant to this section.

���� (6)�� Notwithstanding the
provisions of subsection c. of this section to the contrary, no applicant to be
an owner, director, officer, or employee of a medical cannabis testing
laboratory shall be disqualified on the basis of any conviction disclosed by a
criminal history record background check conducted pursuant to this section if
the individual has affirmatively demonstrated to the commission clear and
convincing evidence of rehabilitation.� In determining whether clear and
convincing evidence of rehabilitation has been demonstrated, the following
factors shall be considered:

���� (a)�� the nature and
responsibility of the position which the convicted individual would hold, has
held, or currently holds;

���� (b)�� the nature and
seriousness of the crime or offense;

���� (c)�� the circumstances under
which the crime or offense occurred;

���� (d)�� the date of the crime or
offense;

���� (e)�� the age of the
individual when the crime or offense was committed;

���� (f)�� whether the crime or
offense was an isolated or repeated incident;

���� (g)�� any social conditions
which may have contributed to the commission of the crime or offense; and

���� (h)�� any evidence of
rehabilitation, including good conduct in prison or in the community,
counseling or psychiatric treatment received, acquisition of additional
academic or vocational schooling, successful participation in correctional
work-release programs, or the recommendation of those who have had the
individual under their supervision.

(cf: P.L.2021, c.16, s.29)

���� 7.� (New section)� A retail
establishment that offers for sale hemp-derived cannabinoid products before the
enactment of P.L.�� , c.� (C.��� ) (pending before the Legislature as this
bill) shall have a period of one year from enactment to comply with the
provisions of P.L.� c.� (C.��� ) (pending before the Legislature as this bill).

���� 8.� This act shall take effect
immediately and rules promulgated pursuant to the act shall take effect one
year next following the date of enactment.

STATEMENT

���� Pursuant to P.L.2019, c.238,
known as the �New Jersey Hemp Farming Act,� the New Jersey Department of
Agriculture is designated as the primary regulatory authority over the
production of hemp in the State.� The department is responsible for
promulgating regulation plans under which the State monitors and regulates hemp
production, an agricultural crop which the State actively promotes, and which
permits farmers and businesses to cultivate, handle and process hemp, and to
sell hemp products for commercial purposes (and which is excluded from the
definition of a controlled substance due to the presence of hemp or
hemp-derived cannabinoids).� Hemp-derived products manufactured outside the
regulatory structure, while not illegal in New Jersey, remain unregulated,
although chemical conversion processes can make hemp derived cannabinoid
products, such as Delta 8, have psychoactive properties similar to the THC in
legalized cannabis, and contain unknown but harmful byproducts of the
conversion process.

���� This bill establishes the
Cannabis Regulatory Commission as the regulatory body for hemp-derived
cannabinoids for purposes of registration and sale of hemp-derived cannabinoid
products.� The bill further provides for existing laboratories to test hemp-derived
cannabinoid products.�

���� Section 1. This section
contains legislative findings and declarations including the following:�
hemp-derived cannabinoid products can contain more psychoactive cannabis than
is lawfully permitted to be sold in unregulated form, and yet, such products are
being sold in New Jersey outside the regulatory structure for cannabis and
hemp.� The Cannabis Regulatory Commission is uniquely positioned to implement a
regulatory structure, including, tracking through establishing a registration
requirement for hemp-derived cannabinoid products manufactured outside the New
Jersey regulatory structure, and other health, safety and testing requirements.

���� Section 2.� This section
defines key terms which aid in distinguishing cannabinoid products with
psychoactive properties from those with non-psychoactive properties.� A key
term, �cannabinoid� means the naturally occurring chemical compound found in
cannabis.� The main cannabinoids found in cannabis plants are
tetrahydrocannabinol (THC), which, in simplified terms, is psychoactive, and
cannabidiol (CBD) which is non-psychoactive.� Through a conversion process, known
as isomerization, legal CBD products, such as Delta-8, have been found to
contain psychoactive properties, and potentially harmful byproduct from the
conversion process.�

���� Since many products are sold
in convenience stores and gas stations, the bill targets retail merchants,
defined in the bill as �hemp-derived cannabinoid retailers,� to register
products sold through their locations.

���� Section 3.� This section
amends N.J.S.A. 24:6I-34, concerned with commission activities associated with
the personal use of cannabis, to grant powers which enable the commission to
perform duties prescribed in the bill.� Jurisdiction, supervision, duties,
functions, and powers are extended to hemp-derived cannabinoid products
manufactured outside the New Jersey regulatory structure.� The commission is
empowered to regulate the purchase, sale, transportation, and delivery of
hemp-derived cannabinoid products in accordance with the provision of this
bill, and to adopt, amend, or repeal regulations as necessary.� Subsection d.
of this section adds the Commissioner of Agriculture as a consultant agency for
the adoption of regulations by the commission.

���� Section 4.� This section
establishes specific areas for regulation of hemp-derived cannabinoid products,
including registration requirements, permit requirements for hemp-derived
cannabinoid retailers, security requirements, age requirements to prevent the
sale of hemp-derived cannabinoid products with detectable THC to persons under
21 years of age, labeling and packaging requirements, unannounced visits,

and
civil penalties for failure to comply with regulations adopted pursuant to the
provisions of the bill
.

���� Section 5.� This section
amends N.J.S.A. 24:6I-17, concerned with the testing of cannabis, to require
that samples of cannabinoid product manufactured outside the New Jersey
regulatory structure be tested by a laboratory licensed pursuant to
N.J.S.A.24:6I-18 (testing laboratories) or pursuant to N.J.S.A.24:6I-35
(cannabis testing laboratories).

���� Section 6.� This section
authorizes the testing of hemp-derived cannabinoid products at testing
laboratories currently licensed to test medical cannabis and medical cannabis
products, usable cannabis, cannabis products, cannabis extracts, and other
cannabis resins.

���� Section 7.� This section
provides that a retail establishment that offers for sale hemp-derived
cannabinoid products prior to the passage of this bill shall have a period of
one year from passage to comply with the provisions of the bill.

���� It is not the intention of the
sponsor to ban hemp-derived cannabinoids, such as Delta-8, but to require
registration of such products, and to impose health and safety requirements
through a regulatory structure.�