New Jersey Lawmakers Send Hemp Beverage and Medical Marijuana Licensing Bill to Governor

Key Points
  • The New Jersey Senate approved Assembly Bill 5051, which revises state rules for hemp, intoxicating hemp beverages, and medical marijuana licensing, sending it to Governor Phil Murphy.
  • The bill extends deadlines for hemp producers and intoxicating hemp beverage businesses from May 31 to November 13, 2026, and maintains THC limits for beverages while adding a 10% margin of error for lab testing.
  • It revises display and storage requirements for intoxicating hemp beverages sold by alcohol licensees, requiring separation from other liquors and age verification, but keeps a November 2026 deadline to end such sales by alcohol licensees.
  • Changes to medical marijuana licensing include allowing dispensaries to avoid additional municipal reviews for co-located adult-use licenses and preventing municipalities from blocking qualifying adult-use retail sales by established dispensaries.

The New Jersey Senate has given final approval to a bill that would revise the state’s rules for hemp, intoxicating hemp beverages and medical marijuana licensing, sending the measure to Governor Phil Murphy.

Assembly Bill 5051 was approved by the Senate on May 28 in a 27 to 3 vote, just 10 days after the Assembly passed the measure 47 to 20. The bill is sponsored by Assemblymembers Robert Karabinchak (D), Annette Quijano (D) and William Sampson (D).

The proposal would extend several key deadlines for hemp producers and intoxicating hemp beverage businesses 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 restrictions beginning that date.

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 create a 10% margin of error for cannabinoid concentration in required laboratory testing results tied to certificates of analysis.

For alcohol licensees selling intoxicating hemp beverages, the measure would revise display and storage requirements. Rather than requiring the products to be kept in areas inaccessible to customers without employee assistance, businesses would need to separate them 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 measure would still leave in place a November 13, 2026 deadline ending intoxicating hemp beverage sales by alcohol licensees.

AB 5051 also includes changes to New Jersey’s medical marijuana licensing law. 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 in a municipality that already allows medical marijuana dispensaries.

The bill 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 the Senate’s approval, AB 5051 has now passed both chambers of the Legislature and heads to Murphy for consideration.