Allows liquor stores to sell low dose THC beverages.

S4452

SENATE, No. 4452

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 15, 2026

Sponsored by:

Senator� JOSEPH A. LAGANA

District 38 (Bergen)

SYNOPSIS

���� Allows liquor stores to sell low dose THC beverages.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning cannabis beverages, amending various parts
of the statutory law, and supplementing chapter 6I of Title 24 of the Revised
Statutes.

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

���� 1. Section 3 of P.L.2021, c.16
(C.24:6I-33) is amended to read as follows:

���� 3. Definitions.

���� As used in P.L.2021, c.16
(C.24:6I-31 et al.) regarding the personal use of cannabis, unless the context
otherwise requires:

���� "Alternative treatment
center" means an organization issued a permit pursuant to the "Jake
Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1
et al.) to operate as a medical cannabis cultivator, medical cannabis
manufacturer, medical cannabis dispensary, or clinical registrant, as well as
any alternative treatment center deemed pursuant to section 7 of that act
(C.24:6I-7) to concurrently hold a medical cannabis cultivator permit, a
medical cannabis manufacturer permit, and a medical cannabis dispensary permit.

���� "Cannabis" means all
parts of the plant Cannabis sativa L., whether growing or not, the seeds
thereof, and every compound, manufacture, salt, derivative, mixture, or
preparation of the plant or its seeds, except those containing resin extracted
from the plant, which are cultivated and, when applicable, manufactured in
accordance with P.L.2021, c.16 (C.24:6I-31 et al.) for use in cannabis products
as set forth in this act, but shall not include the weight of any other
ingredient combined with cannabis to prepare topical or oral administrations,
food, drink, or other product.� "Cannabis" does not include: medical
cannabis dispensed to registered qualifying patients pursuant to the "Jake
Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1
et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.); marijuana as defined in
N.J.S.2C:35-2 and applied to any offense set forth in chapters 35, 35A, and 36
of Title 2C of the New Jersey Statutes, or P.L.2001, c.114 (C.2C:35B-1 et seq.),
or marihuana as defined in section 2 of P.L.1970, c.226 (C.24:21-2) and applied
to any offense set forth in the "New Jersey Controlled Dangerous
Substances Act," P.L.1970, c.226 (C.24:21-1 et al.); or hemp or a
hemp-derived cannabinoid product cultivated, handled, processed, transported,
or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019,
c.238 (C.4:28-6 et al.).

���� "Cannabis consumption
area" means, as further described in section 28 of P.L.2019, c.153
(C.24:6I-21), a designated location operated by a licensed cannabis retailer or
permit holder for dispensing medical cannabis, for which both a State and local
endorsement has been obtained, that is either: (1) an indoor, structurally
enclosed area of the cannabis retailer or permit holder that is separate from
the area in which retail sales of cannabis items or the dispensing of medical
cannabis occurs; or (2) an exterior structure on the same premises as the
cannabis retailer or permit holder, either separate from or connected to the
cannabis retailer or permit holder, at which cannabis items or medical cannabis
either obtained from the retailer or permit holder, or brought by a person to
the consumption area, may be consumed.

���� "Cannabis
cultivator" means any licensed person or entity that grows, cultivates, or
produces cannabis in this State and sells, and may transport, this cannabis to
other cannabis cultivators, or usable cannabis to cannabis manufacturers,
cannabis wholesalers, or cannabis retailers, but not to consumers.� This person
or entity shall hold a Class 1 Cannabis Cultivator license.�

���� "Cannabis delivery
service" means any licensed person or entity that provides courier
services for consumer purchases of cannabis items and related supplies
fulfilled by a cannabis retailer in order to make deliveries of the cannabis
items and related supplies to that consumer and which services include the
ability of a consumer to purchase the cannabis items directly through the
cannabis delivery service, which after presenting the purchase order to the
cannabis retailer for fulfillment, is delivered to that consumer.� This person
or entity shall hold a Class 6 Cannabis Delivery license.

���� "Cannabis
distributor" means any licensed person or entity that transports cannabis
in bulk intrastate from one licensed cannabis cultivator to another licensed
cannabis cultivator, or transports cannabis items in bulk intrastate from any
one class of licensed cannabis establishment to another class of licensed
cannabis establishment, and may engage in the temporary storage of cannabis or
cannabis items as necessary to carry out transportation activities.� This
person or entity shall hold a Class 4 Cannabis Distributor license.�

���� "Cannabis
establishment" means a cannabis cultivator, a cannabis manufacturer, a
cannabis wholesaler, or a cannabis retailer.

���� "Cannabis extract"
means a substance obtained by separating resins from cannabis by: (1) a
chemical extraction process using a hydrocarbon-based solvent, such as butane,
hexane, or propane; (2) a chemical extraction process using the hydrocarbon-based
solvent carbon dioxide, if the process uses high heat or pressure; or (3) any
other process identified by the Cannabis Regulatory Commission by rule or
regulation.

���� "Cannabis flower"
means the flower of the plant Cannabis sativa L. within the plant family
Cannabaceae.

���� "Cannabis item"
means any usable cannabis, cannabis product, cannabis extract, and any other
cannabis resin.� "Cannabis item" does not include: any form of
medical cannabis dispensed to registered qualifying patients pursuant to the "Jake
Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1
et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.) or hemp or a hemp-derived
cannabinoid product cultivated, handled, processed, transported, or sold
pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238
(C.4:28-6 et al.).

���� "Cannabis leaf"
means the leaf of the plant Cannabis sativa L. within the plant family
Cannabaceae.

���� "Cannabis
manufacturer" means any licensed person or entity that processes cannabis
items in this State by purchasing or otherwise obtaining usable cannabis,
manufacturing, preparing, and packaging cannabis items and selling, and
optionally transporting, these items to other cannabis manufacturers, cannabis
wholesalers, or cannabis retailers, but not to consumers.� This person or
entity shall hold a Class 2 Cannabis Manufacturer license."

���� "Cannabis
paraphernalia" means any equipment, products, or materials of any kind
which are used, intended for use, or designed for use in planting, propagating,
cultivating, growing, harvesting, composting, manufacturing, compounding,
converting, producing, processing, preparing, testing, analyzing, packaging,
repackaging, storing, vaporizing, or containing cannabis or for ingesting,
inhaling, or otherwise introducing a cannabis item into the human body.�
"Cannabis paraphernalia" does not include drug paraphernalia as
defined in N.J.S.2C:36-1 and which is used or intended for use to commit a
violation of chapter 35 or 36 of Title 2C of the New Jersey Statutes.

���� "Cannabis product"
means a product containing usable cannabis, cannabis extract, or any other
cannabis resin and other ingredients intended for human consumption or use,
including a product intended to be applied to the skin or hair, edible cannabis
products, ointments, and tinctures. "Cannabis product" does not
include: (1) usable cannabis by itself; or (2) cannabis extract by itself; or
(3) any other cannabis resin by itself.

���� "Cannabis resin"
means the resin extracted from any part of the plant Cannabis sativa L.,
including cannabis extract and resin extracted using non-chemical processes,
processed and used in accordance with P.L.2021, c.16 (C.24:6I-31 et al.).� "Cannabis
resin" does not include: any form of medical cannabis dispensed to
registered qualifying patients pursuant to the "Jake Honig Compassionate
Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and
P.L.2015, c.158 (C.18A:40-12.22 et al.); hashish as defined in N.J.S.2C:35-2
and applied to any offense set forth in chapters 35, 35A, and 36 of Title 2C of
the New Jersey Statutes, or P.L.2001, c.114 (C.2C:35B-1 et seq.), or as defined
in section 2 of P.L.1970, c.226 (C.24:21-2) and applied to any offense of the
"New Jersey Controlled Dangerous Substances Act," P.L.1970, c.226
(C.24:21-1 et al.); or hemp or a� hemp-derived cannabinoid product cultivated,
handled, processed, transported, or sold pursuant to the "New Jersey Hemp
Farming Act," P.L.2019, c.238 (C.4:28-6 et al.).

���� "Cannabis retailer"
means any licensed person or entity that purchases or otherwise obtains usable
cannabis from cannabis cultivators and cannabis items from cannabis
manufacturers or cannabis wholesalers, and sells these to consumers from a retail
store, and may use a cannabis delivery service or a certified cannabis handler
for the off-premises delivery of cannabis items and related supplies to
consumers.� A cannabis retailer shall also accept consumer purchases to be
fulfilled from its retail store that are presented by a cannabis delivery
service which will be delivered by the cannabis delivery service to that
consumer.� This person or entity shall hold a Class 5 Cannabis Retailer
license.

���� "Cannabis testing
facility" means an independent, third-party entity meeting accreditation
requirements established by the Cannabis Regulatory Commission that is licensed
to analyze and certify cannabis items and medical cannabis for compliance with
applicable health, safety, and potency standards.

���� "Cannabis
wholesaler" means any licensed person or entity that purchases or
otherwise obtains, stores, sells, or otherwise transfers, and may transport,
cannabis items for the purpose of resale or other transfer to either another
cannabis wholesaler or to a cannabis retailer, but not to consumers.� This
person or entity shall hold a Class 3 Cannabis Wholesaler license.

���� "Commission" means
the Cannabis Regulatory Commission established pursuant to section 31 of
P.L.2019, c.153 (C.24:6I-24).

���� "Conditional
license" means a temporary license designated as either a Class 1 Cannabis
Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis
Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis
Retailer license, or a Class 6 Cannabis Delivery license that allows the holder
to lawfully act as a cannabis cultivator, cannabis manufacturer, cannabis
wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery
service as the case may be, which is issued pursuant to an abbreviated
application process, after which the conditional license holder shall have a
limited period of time in which to become fully licensed by satisfying all of
the remaining conditions for licensure which were not required for the issuance
of the conditional license.

���� "Consumer" means a
person 21 years of age or older who purchases, directly or through a cannabis
delivery service, acquires, owns, holds, or uses cannabis items for personal
use by a person 21 years of age or older, but not for resale to others.

���� "Consumption" means
the act of ingesting, inhaling, or otherwise introducing cannabis items into
the human body.

����
�Container� means the
innermost wrapping, packaging, or vessel in which the final cannabis product is
enclosed for retail sale to consumers, such as a jar, bottle, bag, box, packet,
can, carton, or cartridge.� �Container� excludes bulk shipping containers or
outer wrappings that are not essential for the final retail delivery or sale to
a consumer.

���� "Delivery" means the
transportation of cannabis items and related supplies to a consumer.�
"Delivery" also includes the use by a licensed cannabis retailer of
any third-party technology platform to receive, process, and fulfill orders by
consumers, which third party shall not be required to be a licensed cannabis
establishment, distributor, or delivery service, provided that any physical
acts in connection with fulfilling the order and delivery shall be accomplished
by a certified cannabis handler performing work for or on behalf of the
licensed cannabis retailer, which includes a certified cannabis handler
employed or otherwise working on behalf of a cannabis delivery service making
off-premises deliveries of consumer purchases fulfilled by that cannabis
retailer.

���� "Department" means
the Department of Health.

���� "Director" means the
Director of the Office of Minority, Disabled Veterans, and Women Cannabis
Business Development in the Cannabis Regulatory Commission.

���� "Executive director"
means the executive director of the Cannabis Regulatory Commission.

���� "Financial
consideration" means value that is given or received either directly or
indirectly through sales, barter, trade, fees, charges, dues, contributions, or
donations.

���� "Immature cannabis
plant" means a cannabis plant that is not flowering.

���� "Impact zone" means
any municipality, based on past criminal marijuana enterprises contributing to
higher concentrations of law enforcement activity, unemployment, and poverty,
or any combination thereof, within parts of or throughout the municipality,
that:

���� (1)�� has a population of
120,000 or more according to the most recently compiled federal decennial
census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.);

���� (2)�� based upon data for
calendar year 2019, ranks in the top 40 percent of municipalities in the State
for marijuana- or hashish-related arrests for violation of paragraph (4) of
subsection a. of N.J.S.2C:35-10; has a crime index total of 825 or higher based
upon the indexes listed in the annual Uniform Crime Report by the Division of
State Police; and has a local average annual unemployment rate that ranks in
the top 15 percent of all municipalities, based upon average annual
unemployment rates estimated for the relevant calendar year by the Office of
Research and Information in the Department of Labor and Workforce Development;

���� (3)�� is a municipality
located in a county of the third class, based upon the county's population
according to the most recently compiled federal decennial census as of the
effective date of P.L.2021, c.16 (C.24:6I-31 et al.), that meets all of the
criteria set forth in paragraph (2) other than having a crime index total of
825 or higher; or

���� (4)�� is a municipality
located in a county of the second class, based upon the county's population
according to the most recently compiled federal decennial census as of the
effective date of P.L.2021, c.16 (C.24:6I-31 et al.):

���� (a)�� with a population of
less than 60,000 according to the most recently compiled federal decennial
census, that for calendar year 2019 ranks in the top 40 percent of
municipalities in the State for marijuana- or hashish-related arrests for
violation of paragraph (4) of subsection a. of N.J.S.2C:35-10; has a crime
index total of 1,000 or higher based upon the indexes listed in the 2019 annual
Uniform Crime Report by the Division of State Police; but for calendar year
2019 does not have a local average annual unemployment rate that ranks in the
top 15 percent of all municipalities, based upon average annual unemployment
rates estimated for the relevant calendar year by the Office of Research and
Information in the Department of Labor and Workforce Development; or

���� (b)�� with a population of not
less than 60,000 or more than 80,000 according to the most recently compiled
federal decennial census, has a crime index total of 650 or higher based upon
the indexes listed in the 2019 annual Uniform Crime Report, and for calendar
year 2019 has a local average annual unemployment rate of 3.0 percent or higher
using the same estimated annual unemployment rates.

���� �Intoxicating hemp beverage�
means 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.�

���� "License" means a
license issued under P.L.2021, c.16 (C.24:6I-31 et al.), including a license
that is designated as either a Class 1 Cannabis Cultivator license, a Class 2
Cannabis Manufacturer license, a Class 3 Cannabis Wholesaler license, a Class 4
Cannabis Distributor license, a Class 5 Cannabis Retailer license, or a Class 6
Cannabis Delivery license.� The term includes a conditional license for a
designated class, except when the context of the provisions of P.L.2021, c.16
(C.24:6I-31 et al.) otherwise intend to only apply to a license and not a
conditional license.

���� "Licensee" means a
person or entity that holds a license issued under P.L.2021, c.16 (C.24:6I-31
et al.), including a license that is designated as either a Class 1 Cannabis
Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis
Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis
Retailer license, or a Class 6 Cannabis Delivery license, and includes a person
or entity that holds a conditional license for a designated class, except when
the context of the provisions of P.L.2021, c.16 (C.24:6I-31 et al.) otherwise
intend to only apply to a person or entity that holds a license and not a
conditional license.

���� "Licensee
representative" means an owner, director, officer, manager, employee,
agent, or other representative of a licensee, to the extent that the person
acts in a representative capacity.

����
�Low dose THC beverage�
means either a liquid consumable cannabis product or a powder or gel which can
be mixed with water to create a liquid consumable cannabis product which is
manufactured by a Class 2 Cannabis Manufacturer that contains less than 10 milligrams
THC per container, or such greater amount as the commission may determine.��

���� "Manufacture" means
the drying, processing, compounding, or conversion of usable cannabis into
cannabis products or cannabis resins. "Manufacture" does not include
packaging or labeling.

���� "Mature cannabis
plant" means a cannabis plant that is not an immature cannabis plant.

���� "Medical cannabis"
means cannabis dispensed to registered qualifying patients pursuant to the
"Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307
(C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.).� "Medical
cannabis" does not include any cannabis or cannabis item which is
cultivated, produced, processed, and consumed in accordance with P.L.2021, c.16
(C.24:6I-31 et al.).

���� "Microbusiness"
means a person or entity licensed under P.L.2021, c.16 (C.24:6I-31 et al.) as a
cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis
distributor, cannabis retailer, or cannabis delivery service that may only,
with respect to its business operations, and capacity and quantity of product:
(1) employ no more than 10 employees; (2) operate a cannabis establishment
occupying an area of no more than 2,500 square feet, and in the case of a
cannabis cultivator, grow cannabis on an area no more than 2,500 square feet
measured on a horizontal plane and grow above that plane not higher than 24
feet; (3) possess no more than 1,000 cannabis plants each month, except that a
cannabis distributor's possession of cannabis plants for transportation shall
not be subject to this limit; (4) acquire each month, in the case of a cannabis
manufacturer, no more than 1,000 pounds of usable cannabis; (5) acquire for
resale each month, in the case of a cannabis wholesaler, no more than 1,000 pounds
of usable cannabis, or the equivalent amount in any form of manufactured
cannabis product or cannabis resin, or any combination thereof; and (6) acquire
for retail sale each month, in the case of a cannabis retailer, no more than
1,000 pounds of usable cannabis, or the equivalent amount in any form of
manufactured cannabis product or cannabis resin, or any combination thereof.

���� "Noncommercial"
means not dependent or conditioned upon the provision or receipt of financial
consideration.

���� �Ownership interest� means a
present right to ownership or equity interest in an entity.� �Ownership
interest� shall not include a future right such as an option, warrant, or
convertible note.

���� "Premises" or
"licensed premises" includes the following areas of a location
licensed under P.L.2021, c.16 (C.24:6I-31 et al.):� all public and private
enclosed areas at the location that are used in the business operated at the
location, including offices, kitchens, rest rooms, and storerooms; all areas
outside a building that the Cannabis Regulatory Commission has specifically
licensed for the production, manufacturing, wholesaling, distributing, retail
sale, or delivery of cannabis items; and, for a location that the commission
has specifically licensed for the production of cannabis outside a building,
the entire lot or parcel that the licensee owns, leases, or has a right to
occupy.

���� "Produce" means the
planting, cultivation, growing or harvesting of cannabis. "Produce"
does not include the drying of cannabis by a cannabis manufacturer, if the
cannabis manufacturer is not otherwise manufacturing cannabis.

���� "Public place" means
any place to which the public has access that is not privately owned; or any
place to which the public has access where alcohol consumption is not allowed,
including, but not limited to, a public street, road, thoroughfare, sidewalk,
bridge, alley, plaza, park, playground, swimming pool, shopping area, public
transportation facility, vehicle used for public transportation, parking lot,
public library, or any other public building, structure, or area.

���� "Radio" means a
system for transmitting sound without visual images, and includes broadcast,
cable, on-demand, satellite, or Internet programming. "Radio"
includes any audio programming downloaded or streamed via the Internet.

���� "Significantly involved
person" means a person or entity who holds at least a five percent
investment interest in a proposed or licensed cannabis cultivator, cannabis
manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or
cannabis delivery service, or who is a decision making member of a group that
holds at least a 20 percent investment interest in a proposed or licensed
cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis
distributor, cannabis retailer, or cannabis delivery service, in which no
member of that group holds more than a five percent interest in the total group
investment interest, and the person or entity makes controlling decisions
regarding the proposed or licensed cannabis cultivator, cannabis manufacturer,
cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis
delivery service operations.

���� "Television" means a
system for transmitting visual images and sound that are reproduced on screens,
and includes broadcast, cable, on-demand, satellite, or Internet programming.
"Television" includes any video programming downloaded or streamed
via the Internet.

���� "THC" means the
psychoactive chemicals contained in the cannabis plant, including, but not
limited to, delta-8, delta-9, delta-10, tetrahydrocannabinolic acid, and any
other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol
regardless of how derived or manufactured, and any other cannabinoid, other
than cannabidiol, identified by the Cannabis Regulatory Commission, in
consultation with the Department of Agriculture and the Attorney General, as
causing intoxication.

���� "Usable cannabis"
means the dried leaves and flowers of the female plant Cannabis sativa L., and
does not include the seedlings, seeds, stems, stalks, or roots of the plant.

(cf: P.L.2025, c.325, s.6)

���� 2. (New section) Distribution
restrictions for low dose THC beverages.

���� a. A person shall not sell or
distribute any low dose THC beverage unless:

���� (1) the person is licensed by
the Cannabis Regulatory Commission in accordance with P.L.2021, c.16
(C.24:6I-31 et al.); or

���� (2) the person is a holder of
any valid and unrevoked plenary retail distribution license, as that term is
defined in R.S.33:1-12; and

���� (3) the product was
manufactured by a Class 2 Cannabis Manufacturer and complies with the
provisions of P.L.2021, c.16 (C.24:6I-31 et al.) and any rules or regulations
adopted pursuant thereto; and

���� (4) the product was purchased
from a Class 2 Cannabis Manufacturer or a Class 3 Cannabis Wholesaler.

���� b. In addition to any other
penalty provided by law, any person licensed by the commission, or any holder
of any valid and unrevoked plenary retail distribution license, as that term is
defined in R.S.33:1-12, who is permitted to sell low dose THC beverages
pursuant to section 3 of P.L.�� , c���� (C.������� ) (pending before the
Legislature as this bill), who violates subsection a. of this section shall be
subject to any civil penalties or fines adopted by the commission in accordance
with P.L.2021, c.16 (C.24:6I-31 et al.).

���� c. The imposition of any fine
or other remedy under P.L.�� , c���� (C.������� ) (pending before the
Legislature as this bill) shall not preclude prosecution for a violation of the
criminal laws of this State.

���� 3. (New section) Sale,
distribution of low dose THC beverages, restrictions.

���� a. (1) Notwithstanding the
provisions of P.L.2021, c.16 (C.24:6I-31 et al.), or any rule or regulation
adopted pursuant thereto, the holder of any valid and unrevoked plenary retail
distribution license, as that term is defined in R.S.33:1-12, may sell or
distribute low dose THC beverages in accordance with this section and section 4
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).

���� (2) Any low dose THC beverage
sold or offered for sale pursuant to paragraph (1) of this subsection:

���� (a) shall not be sold to any
person under the age of 21;

���� (b)�� shall not be sold via
vending machine;

���� (c)�� shall be securely
stored;

���� (d)�� may be displayed in a
place accessible to customers and be accessed without the assistance of an
employee of the establishment only if:

���� (i)��� the establishment posts
conspicuous notice at the place of storage or display indicating to customers
that the products are low dose THC beverages and may only be purchased by a
person 21 years of age or older;

���� (ii)�� the establishment
actively monitors the place of storage or display;

���� (iii)� an employee of the
establishment confirms at the point of sale that the customer is 21 years of
age or older; and

���� (iv)� the establishment
complies with any other requirements as may be established by rule by the
Division of Alcoholic Beverage Control, in consultation with the commission.

���� (3) A holder of a plenary
retail distribution license shall not sell to a consumer in a single sales
transaction more than 24 containers containing low dose THC beverages.

���� b. Upon the effective date of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill), any
holder of a valid and unrevoked plenary retail distribution license may sell
low dose THC beverages.�

���� c. Any sale of a low dose THC
beverage by a holder of any valid and unrevoked plenary retail distribution
license shall be subject to the sales tax imposed on cannabis in accordance
with the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et
seq.). All taxes, fees, penalties, and revenues collected pursuant to this
section shall be deposited in accordance with section 41 of P.L.2021, c.16
(C.24:6I-50).

���� d. (1) The provisions of Title
33 of the Revised Statutes and the rules and regulations promulgated thereunder
shall apply to the sale or distribution of low dose THC beverages by any person
or entity licensed pursuant to the provisions of Title 33 of the Revised
Statutes;

���� (2) Nothing contained in
P.L.��� , c.���� (C.�������� ) (pending before the Legislature as this bill)
shall be construed to preclude the Division of Alcoholic Beverage Control from
exercising the authority to enforce the rules and regulations governing activities
taken by licensees on licensed premises or from taking disciplinary action
against a licensee under Title 33 of the Revised Statutes based upon a
determination by the division that the licensee committed a violation of
P.L.��� , c.���� (C.������� �) (pending before the Legislature as this bill).

���� 4. (New section) Penalties,
violations regarding illegal sales of low dose THC beverages.

���� a. In addition to the
penalties established pursuant to N.J.S.2C:35-5, a person who sells, offers for
sale, or distributes any substance or product in violation of subsection a. of
this section shall be liable to a civil penalty of not less than $100 for the
first violation, not less than $1,000 for the second violation, and not less
than $10,000 for the third and each subsequent violation.� Each day during
which a violation continues shall constitute a separate and distinct offense.�
The penalty prescribed by this section shall be collected and enforced by
summary proceedings under the �Penalty Enforcement Law of 1999,� P.L.1999,
c.274 (C.2A:58-10 et seq.).� Nothing in this section shall be construed to
prohibit the imposition of multiple fines for a single violation as a penalty
for the sale or distribution of more than one substance or product in
violation� of this section.

���� b. The provisions of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill) may be
enforced by State and local law enforcement agencies, State and local health
and consumer protection agencies, the Division of Consumer Affairs in the Department
of Law and Public Safety, and the Cannabis Regulatory Commission established
pursuant to section 31 of P.L.2019, c.153 (C.24:6I-24).

���� c. An official authorized by
statute or ordinance to enforce the provisions of P.L.��� ,� c.���� (C.�������
) (pending before the Legislature as this bill), the State or local health
codes or consumer protection laws, or a law enforcement officer having enforcement
authority in that municipality, may issue a summons for a violation of the
provisions of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill) and may serve and execute all process with respect to the
enforcement of this section consistent with the Rules of Court.

���� d. A law enforcement officer,
local health official, or other government official from an agency authorized
to enforce this section may confiscate any low dose THC beverage that is sold,
offered for sale, or distributed in violation of. P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill).� In addition, the Division of
Alcoholic Beverage Control in the Department of Law and Public Safety may
confiscate any intoxicating hemp beverage that is sold, offered for sale, or
distributed in violation of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill) in accordance with the division�s authority pursuant
to Title 33 of the Revised Statutes, including, but not limited to,
R.S.33:1-66.

���� e. A penalty recovered under
the provisions of this section shall be recovered by and in the name of the
State by the local health or consumer protection agency or other authorized
government entity, which shall include, but not be limited to, the Division of
Consumer Affairs in the Department of Law and Public Safety and the Cannabis
Regulatory Commission established pursuant to section 31 of P.L.2019, c.153
(C.24:6I-24).� With respect to an enforcement action brought by a government
entity, any monetary penalty collected pursuant to P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill) shall be deposited in the special
nonlapsing fund known as the �Cannabis Regulatory, Enforcement Assistance, and
Marketplace Modernization Fund,� established pursuant to section 41 of
P.L.2021, c.16 (C.24:6I-50).� With respect to an enforcement action brought by
a municipal official, half of any monetary penalty shall be paid into the
treasury of the municipality in which the violation occurred for the general
uses of the municipality, and half shall be deposited in the special nonlapsing
fund known as the �Cannabis Regulatory, Enforcement Assistance, and Marketplace
Modernization Fund,� established pursuant to section 41 of P.L.2021, c.16
(C.24:6I-50). Nothing in this section shall be construed to preclude the
Division of Alcoholic Beverage Control from pursuing enforcement actions in
accordance with R.S.33:1-66.

���� f. A business found to have
committed more than two violations of P.L.��� , c.��� (C.������� ) (pending
before the Legislature as this bill) or found to have committed a third or
subsequent violation at any individual location within one year shall be deemed
a public nuisance.� Notwithstanding any other provision of law, a municipality
shall have the power to impose restrictions on the operation, including
closure, of any business determined to constitute a public nuisance pursuant to
this subsection.

���� g. The provisions of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill)� shall not be
construed to impose liability on news media that accept or publish, or both,
advertising for products or services that fall within the scope of� P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill).

���� 5. Section 25 of P.L.2021,
c.16 (C.24:6I-42) is amended to read as follows:

���� 25.� Class 5 Cannabis Retailer
license. A cannabis retailer shall have a Class 5 Cannabis Retailer license
issued by the commission for the premises at which cannabis items are retailed,
which may include purchase orders for off-premises delivery by a certified
cannabis handler working for or on behalf of the cannabis retailer or consumer
purchases to be fulfilled from the retail premises that are presented by a
cannabis delivery service with a Class 6 Cannabis Delivery Service license and
which will be delivered by the cannabis delivery service to that consumer.� The
commission shall determine the maximum number of licenses, of which at least 35
percent shall be conditional licenses issued pursuant to subparagraph (a) of
paragraph (2) of subsection b. of section 19 of P.L.2021, c.16 (C.24:6I-36),
and at least 10 percent of the total number of licenses and conditional
licenses shall be designated for and only issued to microbusinesses pursuant to
subsection f. of that section.� Providing there exist qualified applicants, the
commission shall issue a sufficient number of licenses to meet the market
demands of the State and may, as authorized by paragraph (1) of subsection a.
of section 18 of P.L.2021, c.16 (C.24:6I-35), accept new applications for
additional licenses as it deems necessary to meet those demands.

���� a.���� To hold a Class 5
Cannabis Retailer license under this section, a cannabis retailer:

���� (1)�� Shall apply for a
license in the manner described in section 18 of P.L.2021, c.16 (C.24:6I-35);

���� (2)�� Shall have at least one
significantly involved person who has resided in this State for at least two
years as of the date of the application and provide proof that this person and
any other person with a financial interest who also has decision making authority
for the cannabis retailer listed on an application submitted under section 18
of P.L.2021, c.16 (C.24:6I-35) is 21 years of age or older;

���� (3)�� Shall meet the
requirements of any rule adopted by the commission under subsection b. of this
section; and

���� (4)�� Shall provide for each
of the following persons to undergo a criminal history record background check:
any owner, other than an owner who holds less than a five percent investment
interest in the cannabis retailer or who is a member of a group that holds less
than a 20 percent investment interest in the cannabis retailer and no member of
that group holds more than a five percent interest in the total group
investment, and who lacks the authority to make controlling decisions regarding
the cannabis retailer�s operations; any director; any officer; and any
employee.

���� (a)�� Pursuant to this
provision, 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 State and federal 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;

���� (b)�� Each person 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 a person has
furnished his written consent to that check.� A person who refuses to consent
to, or cooperate in, the securing of a check of criminal history record
background information shall not be considered for licensure as a retailer.�
Each person shall bear the cost for the criminal history record background
check, including all costs of administering and processing the check;

���� (c) (i) With respect to
determining whether any conviction of a person contained in the criminal
history record background check should disqualify an applicant for a Class 5
Cannabis Retailer license, the commission shall not take into consideration any
conviction for a crime or offense that occurred prior to the effective date of
P.L.2021, c.16 (C.24:6I-31 et al.) involving a controlled dangerous substance
or controlled substance analog as set forth in paragraph (11) or (12) of
subsection b., or subparagraph (b) of paragraph (10) of subsection b. of
N.J.S.2C:35-5, or paragraph (3) or (4) of subsection a. of N.J.S.2C:35-10, or
any similar indictable offense under federal law, this State�s law, or any
other state�s law, or for any conviction under federal law for conduct
involving cannabis or a cannabis item that is authorized by P.L.2021, c.16
(C.24:6I-31 et al.).� Additionally, the commission shall not take into
consideration any other prior conviction, unless that conviction is for an
indictable offense under federal law, other than a conviction for conduct
involving cannabis or a cannabis item that is authorized by P.L.2021, c.16
(C.24:6I-31 et al.), or under this State�s law, or any other state�s law that
is substantially related to the qualifications, functions, or duties for which
the license is required, and not more than five years have passed since the
date of that conviction, satisfactory completion of probation or parole, or
release from incarceration, whichever is later.� In determining which indictable
offenses are substantially related to the qualifications, functions, or duties
for which the license is required, the commission shall at least consider any
conviction involving fraud, deceit, or embezzlement, and any conviction for
N.J.S.2C:35-6, employing a minor in a drug distribution scheme, or similar
indictable offense in this or another jurisdiction involving the use of a minor
to dispense or distribute a controlled dangerous substance or controlled
substance analog;

���� (ii)�� The commission may
approve an applicant for a Class 5 Cannabis Retailer license after conducting a
thorough review of any previous conviction of a person that substantially
related to the qualifications, functions, or duties for which the license is
required that is contained in the criminal history record background
information, and this review shall include examining the nature of the
indictable offense, the circumstances at the time of committing the offense,
and evidence of rehabilitation since conviction.� If the commission determines
that the reviewed conviction should not disqualify the applicant, the applicant
may be approved so long as the applicant is otherwise qualified to be issued
the license; and

���� (d)�� Upon receipt and review
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 qualification or
disqualification for a Class 5 Cannabis Retailer license.

���� If the applicant is
disqualified because the commission determined that a person has 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.

���� (e)�� 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 for the applicant, or following application, for the licensee, to
hold a Class 5 Cannabis Retailer license.

���� b.��� The commission shall
adopt rules that:

���� (1)�� Provide for the annual
renewal of the Class 5 Cannabis Retailer license;

���� (2)�� Establish application,
licensure, and renewal of licensure fees for a cannabis retailer in accordance
with paragraph (2) of subsection a. of section 18 of P.L.2021, c.16
(C.24:6I-35); and

���� (3)�� Require a cannabis
retailer to meet any public health and safety standards, industry best
practices, and all applicable regulations established by the commission related
to the retailing of cannabis items.

���� c.���� Fees adopted under
subsection b. of this section:

���� (1)�� Shall be in the form of
a schedule that imposes a greater fee for premises with more square footage;
and

���� (2)�� Shall be deposited in
the �Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization
Fund� established under section 41 of P.L.2021, c.16 (C.24:6I-50).

���� d. (1) The commission shall
issue or deny issuance of a Class 5 Cannabis Retailer license or conditional
license in accordance with the procedures set forth in section 18 of P.L.2021,
c.16 (C.24:6I-35).

���� (2)�� The commission may
suspend or revoke a Class 5 Cannabis Retailer license or conditional license to
operate as a cannabis retailer for cause, which shall be considered a final
agency action for the purposes of the �Administrative Procedure Act,� P.L.1968,
c.410 (C.52:14B-1 et seq.) and shall be subject only to judicial review as
provided in the Rules of Court.

���� e.���� A person who has been
issued a license or conditional license shall display the license or
conditional license at the premises at all times when cannabis is being
retailed.

���� f.���� As required by the
commission in regulation, a licensee or conditional licensee shall report
required changes in information about the licensee to the commission within the
time specified by the commission.

���� g.��� Subject to receiving an
endorsement pursuant to section 28 of P.L.2019, c.153 (C.24:6I-21):

���� (1)�� A licensed cannabis
retailer may operate a cannabis consumption area at which the on-premises
consumption of cannabis items either obtained from the retailer, or brought by
a person to the consumption area, may occur.

���� (2)�� Each licensed cannabis
retailer may operate only one cannabis consumption area.

���� (3)�� The cannabis consumption
area shall be either (a) an indoor, structurally enclosed area of the licensed
cannabis retailer that is separate from the area in which retail sales of
cannabis items occur or (b) an exterior structure on the same premises as the
retailer, either separate from or connected to the retailer.

���� (4)�� A Class 5 Cannabis
Retailer licensee that has been approved for a cannabis consumption area
endorsement may transfer cannabis items purchased by a consumer in its retail
establishment to that consumer in its cannabis consumption area.� The Class 5
Cannabis Retailer licensee shall not transfer to the consumption area an amount
of cannabis items that exceed the limits established by the commission.

���� h. In addition to cannabis and
cannabis items, the holder of a valid and unrevoked Class 5 Cannabis Retailer
license shall be authorized to sell hemp-derived cannabinoid products intended
for human consumption
until November 13, 2026, the expiration date of
section 11 of P.L.2025, c.215 (C.24:6I-48.5)
, provided that the products
are so labeled in accordance with commission rules.

����
i. Notwithstanding any law
to the contrary, the holder of a Class 5 Cannabis Retailer license shall be
authorized to maintain up to two satellite retail locations.� A Class 5
Retailer licensee seeking to establish a satellite location shall obtain commission
approval in accordance with P.L.2021, c.16 (C.24:6I-31 et al.) and, upon
commission approval, shall be authorized to establish and maintain up to two
satellite locations.

����
j. In addition to selling
all low dose THC beverages authorized under section 3 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill), the holder of a
valid and unrevoked Class 5 Cannabis Retailer license may also sell beverages containing
up to 100 milligrams of THC per container, provided such container is
resealable.

(cf: P.L.2025, c.325, s.11)

���� 6. Section 41 of P.L.2021,
c.16 (C.24:6I-50) is amended to read as follows:

���� 41.� Cannabis Regulatory,
Enforcement Assistance, and Marketplace Modernization Fund.�

���� a. Except for amounts credited
to the Property Tax Reform Account in the Property Tax Relief Fund pursuant to
paragraph 7 of Section I of Article VIII of the New Jersey Constitution, all
fees and penalties collected by the commission, all tax revenues on retail
sales of cannabis items, all tax revenues collected pursuant to the provisions
of the �Jake Honig Compassionate Use Medical Cannabis Act,� P.L.2009, c.307
(C.24:6I-1 et al.); and all revenues, if any, collected for the Social Equity
Excise Fee pursuant to section 39 of P.L.2021, c.16 (C.54:47F-1); and all tax
revenues on the retail sale of intoxicating hemp beverages
and low dose THC
beverages
� by any plenary retail distribution license holder or Class 5
Cannabis Retailer licensee, as well as any fees associated with the approval
provided to any plenary wholesale license holder to sell intoxicating hemp
beverages, as defined pursuant to� section 3 of P.L.2021, c.16 (C.24:6I-33),
shall be deposited in a special nonlapsing fund, which shall be known as the
�Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization
Fund,� with 15 percent of the monies deposited being placed into an account
within the fund to be known as the �Underage Deterrence and Prevention
Account.�

���� b.��� Except for any monies
derived from the Social Equity Excise Fee which shall be appropriated annually
in accordance with subsection d. of this section and the monies placed into the
�Underage Deterrence and Prevention Account� within the fund for the commission
to fund programs and services in accordance with subsection e. of this section,
monies in the fund shall be appropriated annually as follows:

���� (1)�� at least 70 percent of
all tax revenues on retail sales of cannabis items shall be appropriated for
investments, including through grants, loans, reimbursements of expenses, and
other financial assistance, in municipalities defined as an �impact zone� pursuant
to section 3 of P.L.2021, c.16 (C.24:6I-33), as well as provide direct
financial assistance to qualifying persons residing therein as recommended by
the commission; and (2) the remainder of the monies in the fund shall be
appropriated by the Legislature to include the following:

���� (a) to oversee 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.), and
assist with assuming responsibility from the Department of Health for the
further development and expansion, regulation, and enforcement of activities
associated with the medical use of cannabis pursuant to the �Jake Honig
Compassionate Use Medical Cannabis Act,� P.L.2009, c.307 (C.24:6I-1 et al.) and
P.L.2015, c.158 (C.18A:40-12.22 et al.);

���� �(b)� to reimburse the
expenses incurred by any county or municipality for the training costs
associated with the attendance and participation of a law enforcement officer
from its law enforcement unit in a police training course by an approved
school, as those terms are defined in section 2 of P.L.1961, c.56
(C.52:17B-67), which trains and certifies the law enforcement officer,
including a law enforcement officer with a working dog, as that term is defined
in section 1 of P.L.2006, c.88 (C.10:5-29.7), as a Drug Recognition Expert for
detecting, identifying, and apprehending drug-impaired motor vehicle operators
and to pay for the same training costs incurred by the Division of State Police
in the Department of Law and Public Safety for the training of a State police
officer or trooper, including an officer or trooper with a working dog, as a
Drug Recognition Expert, as well as the Division of State Police costs in
furnishing additional program instructors to provide Drug Recognition Expert
training to police officers, troopers, and working dogs.� A municipality or
county seeking reimbursement shall apply to the commission, itemizing the
costs, with appropriate proofs, for which reimbursement is requested and
provide a copy of the certificate issued to the police officer to indicate the
successful completion of the program by the police officer, and that officer�s
working dog, if applicable; and

���� (c)�� for further investments,
including through grants, loans, reimbursements of expenses, and other
financial assistance, in municipalities defined as an �impact zone� pursuant to
section 3 of P.L.2021, c.16 (C.24:6I-33), as well as provide direct financial assistance
to qualifying persons residing therein as recommended by the commission.

���� The monies appropriated
pursuant to paragraph (1) of this subsection shall be offset by any revenue
constitutionally dedicated to municipalities defined as an �impact zone�
pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33).

���� c.���� After the appropriation
of those monies in the fund in accordance with subsection b. of this section,
any remaining monies shall be deposited in the State�s General Fund.

���� d. (1) (a) Not less than 60
days prior to the first day of each State fiscal year, the commission shall�
make recommendations to the Governor and Legislature for social equity
appropriations based upon the amount of any revenues collected during the current
fiscal year for the Social Equity Excise Fee pursuant to section 39 of
P.L.2021, c.16 (C.54:47F-1), or, if the commission has not imposed or adjusted
the Social Equity Excise Fee in the current fiscal year pursuant to that
section, then appropriations from the General Fund in an amount equal to the
revenues that would have been collected had the commission imposed or adjusted
the Social Equity Excise Fee. The recommendations to the Governor and the
Legislature shall consist of social equity appropriations that invest, through
grants, loans, reimbursements of expenses, and other financial assistance, in
private for-profit and non-profit organizations, and public entities, including
any municipality defined as an �impact zone� pursuant to section 3 of P.L.2021,
c.16 (C.24:6I-33) as well as provide direct financial assistance to qualifying
persons as determined by the commission, in order to create, expand, or promote
educational and economic opportunities and activities, and the health and
well-being of both communities and individuals.

���� (b)�� Not less than 30 days
prior to submitting its recommendations to the Governor and Legislature
pursuant to subparagraph (a) of this paragraph, the commission shall hold at
least three regional public hearings throughout the State, with at least one
hearing in the northern, central, and southern regions of the State, to solicit
the public input on the social equity investments to be made as described in
this section.

���� (2)�� The commission�s
recommendations to the Governor and Legislature may include, but are not
limited to, recommending investments in the following categories of social
equity programs:

���� (a)�� educational support,
including literacy programs, extended learning time programs that endeavor to
close the achievement gap and provide services for enrolled students after the
traditional school day, GED application and preparedness assistance, tutoring
programs, vocational programming, and financial literacy;

���� (b)�� economic development,
including the encouragement and support of community activities so as to
stimulate economic activity or increase or preserve residential amenities, and
business marketing, and job skills and readiness training, specific employment
training, and apprenticeships;

���� (c)�� social support services,
including food assistance, mental health services, substance use disorders
treatment and recovery, youth recreation and mentoring services, life skills
support services, and reentry and other rehabilitative services for adults and
juveniles being released from incarceration; and

���� (d)�� legal aid for civil and
criminal cases, regardless of a party�s citizenship or immigration status.

���� (3)�� The commission may also,
subject to the annual appropriations act, recommend that it retain a portion of
the Social Equity Excise Fee to administer startup grants, low-interest loans,
application fee assistance, and job training programs through the commission�s
Office of Minority, Disabled Veterans and Women Cannabis Business Development
established by section 32 of P.L.2019, c.153 (24:6I-25).

���� (4)�� After receiving the
recommendations, as set forth in paragraphs (1) through (3) of this subsection
and prior to the first day of each fiscal year, the Legislature shall provide
to the commission a statement which lists the investments to be made by appropriations,
including the investment recipients, investment amounts, and how the investment
is intended to support and advance social equity as described in this
subsection.

���� e.���� The monies deposited in
the �Underage Deterrence and Prevention Account� within the fund shall be used
by the commission, based on the acceptance of applications submitted on a form
and through an approval or denial process promulgated by the commission, to
fund private for-profit and non-profit organizations and county and municipal
programs and services that offer social services, educational, recreational,
and employment opportunities and local economic development designed to
encourage, improve, and support youthful community activities to divert and
prevent persons under 18 years of age from activities associated with the
consumption of cannabis items, marijuana, or hashish.

(cf: P.L.2025, c.215, s.5)

���� 7. R.S.33:1-12 is amended to
read as follows:

���� 33:1-12. Class C licenses
shall be subdivided and classified as follows:

���� Plenary retail consumption
license. 1. The holder of this license shall be entitled, subject to rules and
regulations, to sell any alcoholic beverages for consumption on the licensed
premises by the glass or other open receptacle, and also to sell any alcoholic
beverages in original containers for consumption off the licensed premises, but
this license shall not be issued to permit the sale of alcoholic beverages in
or upon any premises in which a grocery, delicatessen, drug store, or other
mercantile business is carried on, except as hereinafter provided.� The holder
of this license shall be permitted to conduct consumer wine, beer, and spirits
tasting events and samplings for a fee or on a complimentary basis pursuant to
conditions established by rules and regulations of the Division of Alcoholic
Beverage Control, provided, however, that the holder of this license complies
with the terms and conditions set forth in section 3 of P.L.2009, c.216
(C.33:1-12d).� Subject to such rules and regulations established from time to
time by the director, the holder of this license shall be permitted to sell
alcoholic beverages in or upon the premises in which any of the following is
carried on: the keeping of a hotel or restaurant including the sale of
mercantile items incidental thereto as an accommodation to patrons; the sale,
at an entertainment facility as defined in R.S.33:1-1, having a seating
capacity for no less than 4,000 patrons, of mercantile items traditionally
associated with the type of event or program held at the site; the sale of
distillers�, brewers�, and vintners� packaged merchandise prepacked as a unit
with other suitable objects as gift items to be sold only as a unit; the sale
of novelty wearing apparel identified with the name of the establishment
licensed under the provisions of this section; the sale of cigars, cigarettes,
packaged crackers, chips, nuts, and similar snacks and ice at retail as an
accommodation to patrons or the retail sale of nonalcoholic beverages as
accessory beverages to alcoholic beverages; or, in commercial bowling
establishments, the retail sale or rental of bowling accessories and the retail
sale from vending machines of candy, ice cream, and nonalcoholic beverages.�
The fee for this license shall be fixed by the governing board or body of the
municipality in which the licensed premises are situated, by ordinance, at not
less than $250 and not more than $2,500.� No ordinance shall be enacted which
shall raise or lower the fee to be charged for this license by more than 20 percent
from that charged in the preceding license year or $500.00, whichever is the
lesser.� The governing board or body of each municipality may, by ordinance,
enact that no plenary retail consumption license shall be granted within its
respective municipality.

���� The holder of this license
shall be permitted to obtain a restricted brewery license issued pursuant to
subsection 1c. of R.S.33:1-10 and to operate a restricted brewery immediately
adjoining the licensed premises in accordance with the restrictions set forth
in that subsection.� All fees related to the issuance of both licenses shall be
paid in accordance with statutory law.

���� Seasonal retail consumption
license. 2. (1) The holder of this license shall be entitled, subject to rules
and regulations, to sell any alcoholic beverages for consumption on the
licensed premises by the glass or other open receptacle and also to sell any
alcoholic beverages in original containers for consumption off the licensed
premises, during the summer season from May 1 until November 14, inclusive, or
during the winter season from November 15 until April 30, inclusive.

���� (2)�� In addition, the
director shall issue to the holder of this license, upon request by the
licensee, one-day permits that shall entitle the license holder to sell
alcoholic beverages for consumption on the licensed premises during the season
when the license holder is not authorized to sell alcoholic beverages pursuant
to subparagraph (1) of this subsection.� The number of one-day permits issued
to a licensee pursuant to this subsection shall not exceed an aggregate of 14
permits in one calendar year.� A one-day permit issued pursuant to this
subsection shall be valid for 24 consecutive hours.� The fee for each one-day
permit shall be $500.

���� The governing body of the
municipality in which the licensed premises is situated may place reasonable
conditions upon a one-day permit for the purpose of maintaining public safety
on the licensed premises and immediately surrounding area.� The costs associated
with the reasonable conditions placed on the one-day permit shall be assumed by
the holder of this license.

���� (3)�� This license shall not
be issued to permit the sale of alcoholic beverages in or upon any premises in
which a grocery, delicatessen, drug store, or other mercantile business is
carried on, except as hereinafter provided.� Subject to such rules and regulations
established from time to time by the director, the holder of this license shall
be permitted to sell alcoholic beverages in or upon the premises in which any
of the following is carried on: the keeping of a hotel or restaurant including
the sale of mercantile items incidental thereto as an accommodation to patrons;
the sale of distillers�, brewers�, and vintners� packaged merchandise prepacked
as a unit with other suitable objects as gift items to be sold only as a unit;
the sale of novelty wearing apparel identified with the name of the
establishment licensed under the provisions of this section; the sale of
cigars, cigarettes, packaged crackers, chips, nuts, and similar snacks and ice
at retail as an accommodation to patrons; or the retail sale of nonalcoholic
beverages as accessory beverages to alcoholic beverages.� The fee for this
license shall be fixed by the governing board or body of the municipality in
which the licensed premises are situated, by ordinance, at 75 percent of the
fee fixed by said board or body for plenary retail consumption licenses.� The
governing board or body of each municipality may, by ordinance, enact that no
seasonal retail consumption license shall be granted within its respective
municipality.

���� (4) A person who held this
license prior to the effective date of
P.L. , c. (pending before
the Legislature as this bill) and wishes to exchange the license for a plenary
retail consumption license may surrender the license to the issuing authority
prior to the last day of the 24th month following the effective date of
P.L. , c. (pending before
the Legislature as this bill) and the issuing authority

shall convert
the license to a plenary retail consumption license. Thereafter, the licensee
may sell any alcoholic beverages during 12 months of each year in accordance
with the provisions of this section.� The governing board or body of the
municipality in which the licensed premises is situated shall affirmatively
approve the holder of this license converting it to a plenary retail
consumption license in accordance with this subsection and exercising the same
privileges as the holder of a plenary retail consumption license.� A person who
converts this license shall be entitled to sell alcoholic beverages on the same
days and during the same hours as other plenary retail consumption license
holders within the same municipality.�

���� The fee to convert this
license shall be equal to 43 percent of the average sales price of plenary
retail consumption licenses in the municipality in which the licensed premises
is located during the two years immediately preceding the effective date of P.L. , c. (pending before
the Legislature as this bill).� If less than three plenary retail consumption
licenses have been sold in the municipality or municipalities during the two
years immediately preceding the effective date of P.L.��� , c.��� (pending
before the Legislature as this bill), the fee shall be� equal to 43 percent of
the average sales price of the last three plenary retail consumption licenses
sold prior to the effective date of P.L.�� c�� (C.��� ) (pending before the
Legislature as this bill), except as otherwise provided in paragraph (b) of
this subsection.� If the licensed premises is located within the boundaries of
two or more municipalities, the highest average sale price of the two or more
municipalities shall be used to calculate the fee.� The calculation to
determine the fee shall not include de minimis or related party transfer sales�
and shall be subject to the following requirements:

���� (a) if the sales price of a
plenary retail consumption license required to be used in this section to
determine the average sales price is not known or cannot be determined because
the license was sold co-mingled

with other assets as part of a bulk sale
for a total sales price that did not identify the component prices of the
individual assets included in the sale, the fee shall be $350,000;

���� (b) if less than three plenary
retail consumption licenses have been sold in the municipality or
municipalities during the five years immediately preceding the effective date
of P.L. , c.�� (pending before the Legislature as this bill), the fee shall be�
$350,000; or

���� (c) if a municipality has less
than five plenary retail consumption licenses, the fee shall be� $350,000.

���� The fee for converting this
license shall be paid to the municipality in which the licensed premises is
located. If the licensed premises is located within the boundaries of two or
more municipalities, the fee shall be divided and paid in equal proportions to
the municipalities.� A person who exchanges this license also shall pay the
annual fee established by the issuing authority for holding a plenary retail
consumption license.

���� Plenary retail distribution
license. 3. a. The holder of this license shall be entitled, subject to rules
and regulations, to sell any alcoholic beverages,
or low dose THC beverages,

or
[
intoxicating hemp beverages
]
,
until
November 13,
2026
, the expiration
date
of section 11 of P.L.2025, c.215
(C.24:6I-48.5),
intoxicating hemp beverages,
for consumption off the
licensed premises, but only in original containers except that licensees shall
be permitted to conduct consumer wine, beer, and spirits tasting events and
samplings on a complimentary basis pursuant to conditions established by rules
and regulations of the Division of Alcoholic Beverage Control, provided,
however, that the holder of this license complies with the terms and conditions
set forth in section 3 of P.L.2009, c.216 (C.33:1-12d).

���� The governing board or body of
each municipality may, by ordinance, enact that this license shall not be
issued to permit the sale of alcoholic beverages in or upon any premises in
which any other mercantile business is carried on, except that any such ordinance,
heretofore or hereafter adopted, shall not prohibit the retail sale of
distillers�, brewers�, and vintners� packaged merchandise prepacked as a unit
with other suitable objects as gift items to be sold only as a unit; the sale
of novelty wearing apparel identified with the name of the establishment
licensed under the provisions of this act; cigars, cigarettes, packaged
crackers, chips, nuts, and similar snacks, ice, and nonalcoholic beverages as
accessory beverages to alcoholic beverages.� The fee for this license shall be
fixed by the governing board or body of the municipality in which the licensed
premises are situated, by ordinance, at not less than $125 and not more than
$2,500.� No ordinance shall be enacted which shall raise or lower the fee to be
charged for this license by more than 20 percent from that charged in the
preceding license year or $500.00, whichever is the lesser.� The governing
board or body of each municipality may, by ordinance, enact that no plenary
retail distribution license shall be granted within its respective
municipality.

���� Limited retail distribution
license. 3. b. The holder of this license shall be entitled, subject to rules
and regulations, to sell any unchilled, brewed, malt alcoholic beverages in
quantities of not less than 72 fluid ounces for consumption off the licensed
premises, but only in original containers, provided, however, that this license
shall be issued only for premises operated and conducted by the licensee as a
bona fide grocery store, meat market, meat and grocery store, delicatessen, or
other type of bona fide food store at which groceries or other foodstuffs are
sold at retail and provided further that this license shall not be issued
except for premises at which the sale of groceries or other foodstuffs is the
primary and principal business and at which the sale of alcoholic beverages is
merely incidental and subordinate thereto.� The fee for this license shall be
fixed by the governing body or board of the municipality in which the licensed
premises are situated, by ordinance, at not less than $31 and not more than
$63.� The governing board or body of each municipality may, by ordinance, enact
that no limited retail distribution license shall be granted within its
respective municipality.

���� Plenary retail transit
license. 4. The holder of this license shall be entitled, subject to rules and
regulations, to sell any alcoholic beverages, for consumption only, on railroad
trains, airplanes, limousines, and boats, while in transit.� The fee for this
license for use by a railroad or air transport company shall be $375, for use
by the owners of limousines shall be $31 per vehicle, and for use on a boat
shall be $63 on a boat 65 feet or less in length, $125 on a boat more than 65
feet in length but not more than 110 feet in length, and $375 on a boat more
than 110 feet in length; such boat lengths shall be determined in the manner
prescribed by the Bureau of Customs of the United States Government or any
federal agency successor thereto for boat measurement in connection with
issuance of marine documents.� A license issued under this provision to a
railroad or air transport company shall cover all railroad cars and planes
operated by any such company within the State of New Jersey.� A license for a
boat or limousine issued under this provision shall apply only to the
particular boat or limousine for which issued and shall permit the purchase of
alcoholic beverages for sale or service in a boat or limousine to be made from
any Class A and B licensee or from any Class C licensee whose license privilege
permits the sale of alcoholic beverages in original containers for off-premises
consumption.� An interest in a plenary retail transit license issued in
accordance with this section shall be excluded in determining the maximum
number of retail licenses permitted under P.L.1962, c.152 (C.33:1-12.31 et
seq.).

���� Club license. 5. The holder of
this license shall be entitled, subject to rules and regulations, to sell any
alcoholic beverages but only for immediate consumption on the licensed premises
and only to bona fide club members and their guests.� The fee for this license
shall be fixed by the governing board or body of the municipality in which the
licensed premises are situated, by ordinance, at not less than $63 and not more
than $188.� The governing board or body of each municipality may, by ordinance,
enact that no club licenses shall be granted within its respective
municipality.� Club licenses may be issued only to such corporations,
associations and organizations as are operated for benevolent, charitable,
fraternal, social, religious, recreational, athletic, or similar purposes, and
not for private gain, and which comply with all conditions which may be imposed
by the Director of the Division of Alcoholic Beverage Control by rules and
regulations.

���� The provisions of section 23
of P.L.2003, c.117 amendatory of this section shall apply to licenses issued or
transferred on or after July 1, 2003, and to license renewals commencing on or
after July 1, 2003.

���� Sporting facility license. 6.
The holder of this license shall be entitled, subject to rules and regulations,
to sell at retail or to serve any alcoholic beverages as the owner, operator,
lessee, or concessionaire of a sporting facility by the glass or other
receptacle or in original containers only on the premises of the sporting
facility.

���� Notwithstanding any other
provision of Title 33 of the Revised Statutes and subject to conditions
established by the director, the holder of this license may share direction and
control of the premises to be licensed and share proceeds and profits from the
sale of alcoholic beverages with the owner, operator, concessionaire, or lessee
of the facility.� The holder of this license shall be permitted to conduct
consumer wine, beer, and spirits tasting events and samplings for a fee or on a
complimentary basis provided, however, the license holder complies with the
provisions of section 3 of P.L.2009, c.216 (C.33:1-12d) and rules and
regulations promulgated thereto.� Notwithstanding any law, rule or regulation
to the contrary, the holder of this license shall be entitled to establish up
to five all-inclusive areas within the licensed sporting facility, provided the
total capacity of the all-inclusive area or areas within the sporting facility
for each game or event does not exceed more than 500 persons or five percent of
the total capacity of the sporting facility, whichever is greater.

���� The fee for this license shall
be $2,500 for venues with a capacity of less than 7,500 persons; $5,000 for
venues with a capacity of not less than 7,500 persons but not more than 14,999
persons; $7,500 for venues with a capacity of not less than 15,000 persons but
not more than 22,499 persons; and $10,000 for venues with a capacity of 22,500
persons or more.

���� The director may, in
accordance with regulations or a special ruling, issue special all-inclusive
area event permits to the holder of this license authorizing the establishment
of an all-inclusive area or areas in excess of these limitations for a national
or international sporting event at a sporting facility with a seating capacity
of 50,000 or more persons, provided the issuance of the special all-inclusive
area event permits is consistent with the provisions of Title 33 of the Revised
Statutes and any regulations promulgated thereunder.� The director may impose
special conditions on the special all-inclusive area event permits deemed
necessary and proper to protect the health, safety, and welfare of the public.�
A special all-inclusive area event permit issued pursuant to this subsection
shall be valid for the specified duration of the event and the fee shall be
$2,000 per day for each all-inclusive area established, but the total fee shall
not exceed $6,000 per day.� Prior to the issuance of a special all-inclusive
area event permit, the director may require the holder of this license to
provide a bond or equivalent to the Division of Alcoholic Beverage Control in
an amount to be determined by the director based on the size, scope, and
conditions of the national or international sporting event and the compliance
history of the sporting facility license holder.

���� For the purposes of this
subsection:

���� �National or international
sporting event� means a tournament-level professional event governed by a
national or international sports federation or governing body, including, but
not limited to, sporting events governed by the National Football League, International
Olympic Committee, and the International Federation of Association Football.

���� �Sporting facility� means a
stadium, arena, team training facility, or similar venue located on public
property where alcoholic beverages are served or sold at retail for consumption
on the premises by the glass or other open receptacle or in original containers.

���� �Team training facility� shall
include team offices and team headquarters.

(cf: P.L.2025, c.295, s.1)

���� 8. (New section) This act
shall take effect upon the expiration date of section 11 of P.L.2025, c.215
(C.24:6I-48.5), November 13, 2026.

STATEMENT

���� This bill would allow liquor
stores to sell low dose cannabis beverages, also known as low dose THC
beverages. �The bill defines a �low dose THC beverage� as either a liquid
consumable cannabis product or a powder or gel which can be mixed with water to
create a liquid consumable cannabis product which is manufactured by a Class 2
Cannabis Manufacturer that contains less than 10 milligrams THC per container,
or such greater amount as the Cannabis Regulatory Commission may determine.

���� Under the bill, low dose THC
beverages would be subject to the State sales tax. The bill requires a
prospective purchaser to provide identification, and limits the amount that may
be sold to a purchaser in a single transaction to 24 containers.� A retail
establishment would be barred from selling the beverages in vending machines,
be required to actively monitor the place of storage or display of the
beverages, and be required to confirm at the point of sale that the customer is
21 years of age or older.� The establishment is also required to comply with
any other requirements as may be established by the Division of Alcoholic
Beverage Control, in consultation with the Cannabis Regulatory Commission.��

���� Establishments that fail to
comply with the provisions of the bill would be subject to civil penalties.