New Jersey Enforces Hemp THC Ban, Delays Cannabis Lounge Approvals

New Jersey’s Cannabis Regulatory Commission (CRC) announced Monday the enforcement of a statewide ban on certain hemp products following a federal ruling. The law, which took effect on October 12, aims to curb the sale of psychoactive hemp items not derived from naturally occurring chemicals. Sellers violating this law face fines starting at $100 for a first offense, escalating to at least $10,000 for subsequent violations.

CRC Targets Synthetic Cannabinoids

The enforcement had been initially halted due to a federal judge’s ruling in Loki Brands LLC et al. v. Platkin et al., which prevented immediate action on most provisions. However, the CRC stated in a press release that prohibitions on sales to individuals under 21 and on non-naturally derived THC products are now enforceable. 

This move targets synthetic cannabinoids like delta-10 and THC-O, which industry experts agree pose risks to consumers. Beau Huch, a cannabis and hemp attorney with Porzio Governmental Affairs, told Sophie Nieto-Munoz from the New Jersey Monitor that the CRC is “sending a message” to deter bad actors in the industry. “They’re testing the waters,” he said, suggesting that broader enforcement may follow once legislative issues are resolved.

Read Also: Ohio Lawmaker Moves To Ban Hemp Products, Citing Youth Safety Concerns

Frustration Mounts Over Cannabis Lounge Approval Delays

Simultaneously, while the CRC ramps up enforcement against synthetic hemp products, the state’s cannabis consumption lounges face significant delays. Despite rules being approved nearly ten months ago, the CRC has yet to open applications for retailers. 

Entrepreneurs like Alyza Brevard-Rodriguez, who plans to convert an apartment above her Jersey City dispensary into a lounge, are in limbo. “I can’t even smartly invest in doing the build-out without having confidence in the state, because it would just be another period of me wasting money without really knowing what would come on the other side,” she said, according to the New Jersey Monitor.

Legal Loopholes Fuel Unregulated Events

The lack of progress has led to frustration among retailers and has spurred unregulated events that exploit legal loopholes. “There's really nothing that anybody can do about it, and that's the problem, and that's been the problem all along … we see how people just do the workaround,” said Scott Rudder, president of the New Jersey CannaBusiness Association.

Furthermore, cannabis attorney Jessica Gonzalez pointed out that the scarcity of approved consumption areas limits options for consumers, especially those whose landlords prohibit smoking or vaping. She emphasized the need for state officials to educate municipalities on the benefits of consumption lounges, as fewer than a dozen have passed ordinances allowing them.

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The CRC attributes the delay to prioritizing the licensing of retailers, cultivators and other operators. Spokeswoman Toni-Anne Blake mentioned that without a legislative deadline, the process is not considered delayed. However, industry stakeholders are concerned about the financial strain and uncertainty this causes for businesses ready to invest in consumption spaces.

As New Jersey navigates these regulatory challenges, the cannabis industry watches closely. The enforcement of hemp product bans and the holdup of consumption lounge applications reflect broader issues of regulation, consumer safety and economic opportunity within the state’s cannabis landscape.

Read Next:

• Hemp Vs. Marijuana: Industry Tensions Rise Amid Rejection Of Cannabis Legalization In Florida, The Dakotas