
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comClient Alert
Author: Daniel T. McKillop
Date: March 13, 2026

Partner
201-896-7115 dmckillop@sh-law.com
New Jersey is entering a decisive phase in its regulation of hemp-derived cannabinoid products, and operators across the supply chain now face a compressed timeline to align their businesses with the state’s new statutory framework. P.L.2025, c.215, enacted through Senate Bill S4509, introduces a comprehensive restructuring of how hemp products and intoxicating hemp beverages are defined, tested, sold, and monitored.
These changes represent a fundamental shift in what the State of New Jersey considers lawful hemp product commerce and significantly narrow the categories of products and types of retailers permitted to remain in the marketplace. With the first major deadline on April 13, 2026, operators must quickly evaluate their current inventories, product formulations, licensing pathways, and compliance systems to ensure continued operation under the updated definitions and regulatory expectations.
On April 13, a product will no longer qualify as hemp-based and instead will be regulated as cannabis and fall under the authority of the New Jersey Cannabis Regulatory Commission (CRC) if it:
April 13 also activates several operational requirements. A $3.75‑dollar per gallon excise fee applies to wholesale intoxicating hemp beverages (IHBs), and potency caps become mandatory. IHBs must not exceed 5 milligrams of THC per serving or 10 milligrams per container and must include a certificate of analysis (COA). In addition, beginning on April 13, IHBs may only be sold by operators holding plenary wholesale licenses or plenary retail distribution licenses from the New Jersey Division of Alcoholic Beverage Control (ABC), or by Class 5 Cannabis Retailers licensed by the New Jersey Cannabis Regulatory Commission.
On November 13, 2026, any IHB containing more than 0.4 milligrams total THC per container will be treated as cannabis and may only be sold through CRC‑licensed cannabis retailers. Penalties for noncompliance include civil monetary fines determined and imposed by the CRC for each violation, and the CRC may escalate enforcement through administrative orders, license suspensions or revocations, and product seizures. CRC may also refer noncompliance matters to another enforcement body, such as the Attorney General, local police, ABC, or another state agency, if the violation involves criminal conduct or falls under another agency’s jurisdiction.
In order to meet the impending April 13 deadline, operators must act now to:
1. Conduct a SKU‑level compliance audit. Verify each product meets statutory limits: ≤0.3% total THC (including THCA) dry‑weight, ≤0.4 mg total THC per container, and contains no synthesized or non‑natural cannabinoids. Remove non‑compliant items before April 13.
2. Adjust formulations. Reformulate products to stay below total‑THC thresholds and ensure intoxicating hemp beverages meet the 5 mg/serving and 10 mg/container caps.
3. Update labeling, testing, and COAs. Ensure the COAs list total THC, including THCA, and labels accurately reflect potency.
4. Prepare for excise tax implementation. Update financial systems to apply the $3.75‑per‑gallon wholesale excise tax on intoxicating hemp beverages.
5. Plan for inventory disposition. Identify and remove products exceeding 0.3 percent total THC or more than 0.4 milligrams total THC per container before April 13.
6. Confirm licensing for IHB sales. Only ABC plenary wholesale/retail distribution licensees and CRC‑licensed Class 5 retailers may sell intoxicating hemp beverages beginning April 13.
7. Update internal policies and staff training. Revise compliance procedures to reflect THC limits, COA requirements, and age restrictions prohibiting THC‑containing product sales to individuals under 21.
8. Coordinate with labs and suppliers. Ensure laboratories measure total THC in accordance with statutory definitions, and that suppliers provide compliant COAs and cannabinoid‑source attestations.
Our firm is assisting clients with every aspect of compliance under P.L.2025, c.215, and advising clients regarding related CRC licensing pathways. Please contact our Cannabis and Hemp Regulatory Group to ensure your organization meets all approaching deadlines.
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