New Jersey Senate Committee Approves Bill to Overhaul Hemp Regulations, Sending it to Full Senate

A sweeping overhaul of New Jersey’s hemp laws cleared a major hurdle this week, as a substitute version of Senate Bill 4509 was approved by the Senate Budget and Appropriations Committee and sent to the full Senate for consideration. The legislation would significantly tighten the state’s definition of hemp, restrict the sale of intoxicating hemp products, and establish new rules for hemp-derived beverages ahead of forthcoming federal changes.

Under the committee substitute, New Jersey would redefine hemp to align with updated federal standards (which don’t technically take effect until late 2026), closing what lawmakers describe as a loophole that allowed the sale of intoxicating products marketed as hemp. The bill limits hemp to products containing no more than 0.3% total THC on a dry-weight basis, including THCa, and creates new prohibitions on a wide range of synthesized or enhanced cannabinoid products that exceed that threshold.

The measure sets out a phased implementation. Beginning January 13, 2026, it would become unlawful to sell any product containing detectable THC to individuals under 21, with an exception for medical marijuana patients. Additional prohibitions would take effect March 13, 2026, following a 60-day sell-through period for existing inventory. During that window, certain licensed businesses would be allowed to continue selling intoxicating hemp beverages, after which strict THC limits would apply.

The bill also addresses intoxicating hemp beverages more directly, establishing caps of 5 milligrams of THC per serving and 10 milligrams per container beginning in March 2026. Sales by alcohol license holders would end entirely in November 2026, while cannabis licensees would transition to selling only marijuana beverages under existing law. An excise tax of $3.75 per gallon on wholesale intoxicating hemp beverages would take effect April 1, 2026, with revenues directed to the state’s CREAMMA fund.

With committee approval secured, the legislation now heads to the full Senate, where lawmakers will decide whether to advance one of the most comprehensive hemp regulatory changes New Jersey has considered to date.