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S4297 1R FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 4297
[First Reprint]
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: MAY 29, 2026
SUMMARY
Synopsis:
Revises certain restrictions concerning hemp, intoxicating
hemp beverages, and medical cannabis.
Type of Impact:
Annual State Revenue impact.
Agencies Affected:
Cannabis Regulatory Commission; Division of Alcoholic
Beverage Control in the Department of Law and Public Safety; Department of
the Treasury; municipalities.
Office
of Legislative Services Estimate
Annual Fiscal Impact
State Revenue Impact
Indeterminate
�
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.
Section:
Revenue, Finance, and Appropriations
Analyst:
Patrick Walsh
Associate Fiscal Analyst
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.).