Delta 8 THC Hemp Regulation Moves Forward In NJ, Sparks Debate Between Alcohol And Cannabis Industry

Delta 8 THC — popularly known as "intoxicating hemp" — regulation bills were voted on in the New Jersey legislature on July 1.

The bills passed in both the Assembly and State Senate, with amendments allowing liquor stores to sell hemp drinks after obtaining proper permission. To this end, the NJ Cannabis Regulatory Commission (CRC) must now set up new rules and issue a special license.

Legalization and Licensing

Bill S3235 regulates the production and sale of certain intoxicating hemp products. Originally set to regulate a demand covered by dispensaries, the legislature made amendments to allow big alcohol to compete.

Now the state’s CRC will oversee the licensing process for liquor stores to sell hemp drinks together with their usual offer. Although expedited, the approval of the bill broadly changes the landscape for the adult use of hemp products.

On the bright site, the regulation will help ensure products are tested and meet quality standards. In this manner, New Jersey has addressed the big issue of how to deal with Delta 8 synthetic compounds.

Amendments Favoring the Alcohol Industry

The amendments allowing liquor stores to sell hemp drinks have sparked significant debate. This move is seen as a win for the alcohol industry, giving them a new product line and potentially increasing their customer base.

However, this amendment has faced criticism from cannabis advocates. They argue that it undermines the specialized regulatory framework intended for cannabis products. The bill specifies that hemp products cannot contain more than 0.5 milligrams of total THC per serving and 2.5 milligrams of total THC per package.

“Safeguarding drinking products is only what the amendment talks about,” defended State Senate Majority Leader Teresa Ruiz. Yet, opponents like Susanna P. Short argue, “I have yet to hear a compelling argument why liquor stores need to participate in the sale of THC.”, reported HeadyNJ.

Cannabis Dispensaries Vs Liquor Stores

At the hearing, a heated debate took place. Among others, Bill Caruso supported the bill but opposed the liquor amendment. He emphasized the need for the NJCRC to regulate THC amounts and criticized the unregulated sale of Delta 8 THC hemp in liquor stores.

“This is being sold right now, unregulated, untested, and to children even in liquor stores,” Caruso exclaimed. "Do the right thing here. Pass the bill in front of you as is. Work on separate legislation to figure out how the liquor industry comes into the cannabis world properly tested, safe, regulated, and without the threat of being sold to kids.”

Scott Rudder, President of NJCBA, echoed concerns about public safety and the inconsistency in product ingredients. “There is no such thing as intoxicating hemp,” Rudder argued, addressing that the limited amount of THC on the beverages won’t give you that much of a high.

Finally, lobbyists for the alcohol industry emerged victorious. Now, the CRC will have the task of issuing special licenses and controlling liquor stores aiming to sell the product.

Read Also: Real Weed Or A Lab High? Delta-8 And Delta-9 THC Explained

The Regulatory Debate Surrounding Delta 8

There is a bigger picture to the whole situation.

Delta 8 THC remains broadly unregulated across the U.S., making it widely available, even in states where adult-use cannabis is illegal.

Although it’s safe to say that the primary concern with Delta 8 is the lack of controlled manufacturing processes, we also don’t know that much about the Delta 8 compound itself. Delta 8 proliferated after a loop whole in Farm Bill 2018 led to hemp manufacturers producing a chemical synthesis of a THC molecule that is scarce in the hemp plant, but can be concentrated in a lab.

Delta 9, unlike Delta 8 THC, is what we call “just THC.”It’s naturally present in high quantities in cannabis flowers, federally forbidden, and (hopefully, not for much longer) scheduled as a substance controlled by the DEA.

Thus, the unregulated status of Delta 8 raises safety issues since the compound is not yet so broadly studied. Products can be mislabelled and contain harmful contaminants.

As Delta 8 is synthetically produced, this adds another layer of complexity. Finally, when unregulated, Delta 8 products end up in gas stations, and it’s a profitable business.

Several states have taken different approaches to Delta 8 situation. States like New York and Colorado have banned it outright, citing safety concerns and the need for better regulation. South Dakota has also banned the sale of Delta 8 and other unregulated hemp products.

Other states, such as Connecticut have imposed severe restrictions, while some have done nothing, allowing the product to remain in a legal gray area. New Jersey is now allowing it for adult-use beverages.

Now Read:

• Colorado And New York Join Other States Banning Hemp Based Delta-8 THC

Cannabis rescheduling seems to be right around the corner. This will have a significant impact on cannabis regulatory landscape. Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.