New Jersey Senate Committee Advances Assembly-Backed Bill Revising Hemp Beverage Rules and Medical Marijuana Licensing

New Jersey Capitol Building.

A New Jersey bill that would revise the state’s rules for hemp, intoxicating hemp beverages and medical marijuana dispensary licensing advanced today in the Senate, with the Senate Judiciary Committee voting 8 to 1 to report the measure favorably.

Assembly Bill 5051, sponsored by Assemblymembers Robert Karabinchak (D), Annette Quijano (D) and William Sampson (D), was advanced by the committee on May 21 and moved to second reading. The vote comes just threes days after the Assembly approved the bill in a 47 to 20 vote, sending it to the Senate.

The proposal would extend key deadlines for hemp producers and intoxicating hemp beverages from May 31 to November 13, 2026. Under current law, hemp producers may possess or transport certain in-process hemp material above the state’s 0.3% THC limit only until May 31, while intoxicating hemp beverages are set to face new limits beginning that date, including a cap of five milligrams of THC per serving and 10 milligrams per container.

AB 5051 would maintain the allowance for cans containing no more than five milligrams of THC per serving or 10 milligrams per can, while also allowing resealable 750-milliliter bottles with 40 servings of five milligrams each, for a maximum of 200 milligrams per bottle.

The bill would also allow a 10% margin of error in cannabinoid concentration for required laboratory testing results tied to certificates of analysis.

The legislation would revise display and storage requirements for intoxicating hemp beverages sold by alcohol licensees. Instead of requiring the products to be kept in areas inaccessible to customers without employee assistance, businesses would need to keep them separate from other intoxicating liquors, post notices stating that the beverages are intoxicating hemp products limited to those 21 and older, monitor the display area and verify age at the point of sale.

The bill would leave in place a November 13, 2026 deadline ending intoxicating hemp beverage sales by alcohol licensees.

AB 5051 also includes changes to the state’s medical marijuana licensing rules. The measure would allow a medical marijuana dispensary applying for a co-located Class 5 adult-use retailer license to avoid a separate round of municipal review if the dispensary is located in a municipality that already allows medical marijuana dispensaries.

The proposal would also prevent municipalities from blocking adult-use retail sales by qualifying medical marijuana dispensaries that were open and operating lawfully before July 1, 2023, had no violations or violation notices, and operated for at least three years before the bill’s enactment.

With approval from the Senate Judiciary Committee, the bill is now positioned for further consideration by the full Senate. Since the Assembly has already passed the measure, Senate approval without further changes would send it to Governor Phil Murphy.

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