New Federal Law Limits Sale of Hemp-Derived THC Products

/ Justin Calta

On November 12, 2025, President Trump signed into law a federal measure that substantially limits the production and sale of hemp-derived intoxicating products across the country. The legislation, tucked into the broader bill that ended the lengthy government shutdown, has generated immediate concern throughout the national hemp industry, with many businesses warning that the new standards may effectively force them out of the market.

Under the newly enacted federal framework, the definition of “hemp” is significantly tightened. All forms of THC, including isomers and precursor compounds capable of producing a psychoactive effect, will now count toward the federal limit. This redefinition includes THCA and other hemp-derived THC compounds that the hemp-derived cannabis market primarily manufactured and sold under the prior version of the law.

The new law also imposes a 0.4 mg total THC limit per container of hemp product.  The prior limit was 0.3% on a dry-weight basis, which still applies in addition to the 0.4mg cap.  This has the effect of significantly limiting the amount of hemp-derived THC that is permissible in a given package.  Products that exceed the new threshold will now fall under federal cannabis prohibitions.

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NJEDA Launches Cannabis Business Development Grant Program

/ Saiber LLC

The New Jersey Economic Development Authority (NJEDA) recently announced the Cannabis Business Development Grant Program, a pilot initiative providing reimbursements of up to $75,000 for qualifying expenses incurred by licensed cannabis businesses. Eligible applicants include holders of annual licenses for Class 1 Retailer, Class 2 Manufacturer, Class 5 Cultivator, and Class 7 Testing Laboratory, provided they are in good standing with state agencies and can demonstrate at least $75,000 in eligible expenses within the past 36 months. Covered expenses include payroll, training, professional services, rent, and marketing, while construction, large equipment purchases, and inventory are excluded.

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Controversial New Law Restricting Hemp Sales in NJ Spurs Lawsuit by Hemp Businesses

/ Saiber LLC

On September 12, 2024, New Jersey Governor Phil Murphy signed Senate Bill 3235 into law, igniting controversy across the state’s hemp industry. The new legislation restricts businesses from selling hemp products unless they possess a cannabis retail license, a move that prompted hemp businesses to file a lawsuit challenging the law’s restrictions on their ability to operate freely and arguing that it unfairly limits access to the market.

The aim of the new law is to curb the sale of hemp products containing delta-8 THC to minors. Delta-8 THC is a milder cousin of delta-9 THC, the active ingredient in cannabis. While hemp products became federally legal in 2018 under The Agriculture Improvement Act, state-level restrictions are becoming more common as concerns grow over the accessibility of THC-containing products to children.

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New Jersey Appellate Panel Confirms Towns Right to Regulate Cannabis Licenses

/ Justin Calta

The New Jersey Appellate Division recently affirmed a trial court’s decision to allow a New Jersey town to deny a prospective retail cannabis business to operate, determining that the municipality has the discretion to decide the necessary requirements for any cannabis retail businesses, and which cannabis retail businesses it chooses to support.

In December of 2022, a lawsuit was filed by Big Smoke LLC (“Big Smoke”), a prospective cannabis retail business, after the Township of West Milford declined to adopt a resolution in support of Blue Smoke’s cannabis retail operation in favor of another cannabis retail business in the same commercial complex. The lawsuit alleges that despite being granted a zoning permit for a retail store in December of 2021, Township officials did not adopt a resolution allowing Blue Smoke to move forward with operations in October 2022, required by the New Jersey Cannabis Regulatory Commission.

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New Jersey Approved Cannabis Consumption Lounges

/ Saiber LLC

The New Jersey Cannabis Regulatory Commission (NJ-CRC) approved regulations for cannabis consumption lounges during its January 17th meeting. These rules establish a framework for medical and adult-use operators seeking to integrate consumption spaces within their dispensaries. Upon approval by the New Jersey Office of Administrative Law, the rules will go into effect, with dispensary operators required to secure municipal approval for a consumption area to receive final clearance from the NJ-CRC.

The regulations mandate that consumption areas must be attached to a dispensary, limiting retailers to one consumption area regardless of the number of dispensaries they own. In addition, adequate ventilation through an HVAC system is mandatory to prevent smoke or vapors from affecting neighboring areas. Notably, the sale of food, alcohol, tobacco, or nicotine products within the consumption lounge is prohibited.

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NJ-CRC Accepting Licensing Applications for Wholesale, Distribution & Delivery for Social Equity & Diversity Owned Businesses

/ Saiber LLC

Applications for wholesale, distribution, and delivery of recreational cannabis licenses are now being accepted for Social Equity and Diversity Owned Businesses by the New Jersey Cannabis Regulatory Commission (NJ-CRC.) Beginning September 27, 2023, Social Equity Businesses will be given priority review and approval as the application opens for an exclusive 90-day period. Beginning on December 27, 2023, while still accepting applications from Social Equity Businesses, the application process for Diversely Owned Businesses will also be made available. Finally, the application process will be opened to all other applicants beginning on March 27, 2024.

Applicants will be able to apply for business licenses in the three below classes.

  • A Class 3 Cannabis Wholesale license allows the holder to store, buy, and sell bulk cannabis and cannabis products.
  • A Class 4 Cannabis Distribution license allows the holder to transport bulk cannabis and cannabis products between cannabis cultivators, manufacturers, or retailers within New Jersey.
  • A Class 6 Cannabis Delivery license allows the holder to transport retail-purchased cannabis and cannabis products to consumers.
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New Jersey CRC Approves Rules for Cannabis Consumption Lounges

/ Saiber LLC

In a recent meeting, the New Jersey Cannabis Regulatory Commission approved proposed rules that will allow for the operation of cannabis consumption areas in New Jersey, more commonly referred to as cannabis lounges.

As part of the approved rules, cannabis retailers seeking to operate a consumption lounge will require both NJ-CRC approval and municipal approval. Lounges may be indoors or outdoors but must be enclosed.

Lounges must also require guests to be 21+ years of age and cannot over-sell to its consumers. While no food sales will be allowed at lounges, consumers may bring food or have it delivered to the consumption area. Alcohol and tobacco consumption is prohibited.

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New Jersey CRC Recommends Eliminating Cap on Cultivation Licenses

/ Justin Calta

New Jersey’s Cannabis Regulatory Commission (CRC) recommended eliminating the current cap on the number of cannabis cultivation licenses at its February 8, 2023 meeting, among other actions.  If that recommendation is adopted, the current limit of 37 licenses would expire on February 22, 2023.   According to the CRC, there are only 17 cultivation licenses and awarding additional licenses would help spur New Jersey’s cannabis market.

“The market is developing, and we don’t want to hinder that. The New Jersey canopy is currently only 418,000 square feet – far below the average of other states with legal cannabis. New Jersey currently has only one cultivation license for every 197,000 residents. The national average is one license for every 31,000 residents. We have a lot of room to grow. We expect that lifting the cap will open the space for more cultivators, ultimately resulting in more favorable pricing and better access for patients and other consumers,” Commissioner Maria Del Cid-Kosso stated. 

New Jersey Enacts Bill Permitting NJEDA to Make Financial Incentives Available to Certain Cannabis Businesses

/ Justin Calta

The continuing federal prohibition of marijuana has made cannabis entrepreneurs in New Jersey rely on personal funds or private financing to get their projects up and running.  This has put up a significant barrier to entry into the market for many license applicants. In effort to free up financing while various bills continue to be introduced at the federal level, Governor Murphy signed bill S2945 on June 30, 2022, enacted as P.L.2022, c.48., which permits the New Jersey Economic Development Authority (NJEDA) to extend financial incentives to certain cannabis businesses as detailed below. 

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Bringing it all Back Home: Cannabis and Zoning

/ Justin Calta

Source: The New Jersey Law Journal

I. Introduction

New Jersey’s recreational cannabis market is finally here and in full swing.  As the market continues to grow, cannabis license applicants must consider how zoning will impact their contemplated business operations in any given New Jersey municipality.  In short, although a license may permit you to operate a cannabis business, zoning will dictate where, when, and “how” – – that is, what conditions are attached to your operation.

To aid applicants in the real estate and zoning component of their businesses and cannabis license applications, this article broadly details the relevant zoning provisions of the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA or the Act) and New Jersey’s Municipal Land Use Law, the primary zoning legislation in New Jersey, together with issues that both applicant and lawyer alike should consider when applying to a land use board to obtain approval.

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