Bill Text: NJ A5338 | 2026-2027 | Regular Session | Introduced
Bill Title: Allows liquor stores to sell low dose THC beverages.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-06-28 - Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee [A5338 Detail]
Download: New_Jersey-2026-A5338-Introduced.html
Sponsored by:
Assemblyman MICHAEL VENEZIA
District 34 (Essex)
SYNOPSIS
Allows liquor stores to sell low dose THC beverages.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning cannabis beverages, amending various parts of the statutory law, and supplementing chapter 6I of Title 24 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2021, c.16 (C.24:6I-33) is amended to read as follows:
3. Definitions.
As used in P.L.2021, c.16 (C.24:6I-31 et al.) regarding the personal use of cannabis, unless the context otherwise requires:
"Alternative treatment center" means an organization issued a permit pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) to operate as a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant, as well as any alternative treatment center deemed pursuant to section 7 of that act (C.24:6I-7) to concurrently hold a medical cannabis cultivator permit, a medical cannabis manufacturer permit, and a medical cannabis dispensary permit.
"Cannabis" means all parts of the plant Cannabis sativa L., whether growing or not, the seeds thereof, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds, except those containing resin extracted from the plant, which are cultivated and, when applicable, manufactured in accordance with P.L.2021, c.16 (C.24:6I-31 et al.) for use in cannabis products as set forth in this act, but shall not include the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink, or other product. "Cannabis" does not include: medical cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.); marijuana as defined in N.J.S.2C:35-2 and applied to any offense set forth in chapters 35, 35A, and 36 of Title 2C of the New Jersey Statutes, or P.L.2001, c.114 (C.2C:35B-1 et seq.), or marihuana as defined in section 2 of P.L.1970, c.226 (C.24:21-2) and applied to any offense set forth in the "New Jersey Controlled Dangerous Substances Act," P.L.1970, c.226 (C.24:21-1 et al.); or hemp or a hemp-derived cannabinoid product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.).
"Cannabis consumption area" means, as further described in section 28 of P.L.2019, c.153 (C.24:6I-21), a designated location operated by a licensed cannabis retailer or permit holder for dispensing medical cannabis, for which both a State and local endorsement has been obtained, that is either: (1) an indoor, structurally enclosed area of the cannabis retailer or permit holder that is separate from the area in which retail sales of cannabis items or the dispensing of medical cannabis occurs; or (2) an exterior structure on the same premises as the cannabis retailer or permit holder, either separate from or connected to the cannabis retailer or permit holder, at which cannabis items or medical cannabis either obtained from the retailer or permit holder, or brought by a person to the consumption area, may be consumed.
"Cannabis cultivator" means any licensed person or entity that grows, cultivates, or produces cannabis in this State and sells, and may transport, this cannabis to other cannabis cultivators, or usable cannabis to cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 1 Cannabis Cultivator license.
"Cannabis delivery service" means any licensed person or entity that provides courier services for consumer purchases of cannabis items and related supplies fulfilled by a cannabis retailer in order to make deliveries of the cannabis items and related supplies to that consumer and which services include the ability of a consumer to purchase the cannabis items directly through the cannabis delivery service, which after presenting the purchase order to the cannabis retailer for fulfillment, is delivered to that consumer. This person or entity shall hold a Class 6 Cannabis Delivery license.
"Cannabis distributor" means any licensed person or entity that transports cannabis in bulk intrastate from one licensed cannabis cultivator to another licensed cannabis cultivator, or transports cannabis items in bulk intrastate from any one class of licensed cannabis establishment to another class of licensed cannabis establishment, and may engage in the temporary storage of cannabis or cannabis items as necessary to carry out transportation activities. This person or entity shall hold a Class 4 Cannabis Distributor license.
"Cannabis establishment" means a cannabis cultivator, a cannabis manufacturer, a cannabis wholesaler, or a cannabis retailer.
"Cannabis extract" means a substance obtained by separating resins from cannabis by: (1) a chemical extraction process using a hydrocarbon-based solvent, such as butane, hexane, or propane; (2) a chemical extraction process using the hydrocarbon-based solvent carbon dioxide, if the process uses high heat or pressure; or (3) any other process identified by the Cannabis Regulatory Commission by rule or regulation.
"Cannabis flower" means the flower of the plant Cannabis sativa L. within the plant family Cannabaceae.
"Cannabis item" means any usable cannabis, cannabis product, cannabis extract, and any other cannabis resin. "Cannabis item" does not include: any form of medical cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.) or hemp or a hemp-derived cannabinoid product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.).
"Cannabis leaf" means the leaf of the plant Cannabis sativa L. within the plant family Cannabaceae.
"Cannabis manufacturer" means any licensed person or entity that processes cannabis items in this State by purchasing or otherwise obtaining usable cannabis, manufacturing, preparing, and packaging cannabis items and selling, and optionally transporting, these items to other cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 2 Cannabis Manufacturer license."
"Cannabis paraphernalia" means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing cannabis or for ingesting, inhaling, or otherwise introducing a cannabis item into the human body. "Cannabis paraphernalia" does not include drug paraphernalia as defined in N.J.S.2C:36-1 and which is used or intended for use to commit a violation of chapter 35 or 36 of Title 2C of the New Jersey Statutes.
"Cannabis product" means a product containing usable cannabis, cannabis extract, or any other cannabis resin and other ingredients intended for human consumption or use, including a product intended to be applied to the skin or hair, edible cannabis products, ointments, and tinctures. "Cannabis product" does not include: (1) usable cannabis by itself; or (2) cannabis extract by itself; or (3) any other cannabis resin by itself.
"Cannabis resin" means the resin extracted from any part of the plant Cannabis sativa L., including cannabis extract and resin extracted using non-chemical processes, processed and used in accordance with P.L.2021, c.16 (C.24:6I-31 et al.). "Cannabis resin" does not include: any form of medical cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.); hashish as defined in N.J.S.2C:35-2 and applied to any offense set forth in chapters 35, 35A, and 36 of Title 2C of the New Jersey Statutes, or P.L.2001, c.114 (C.2C:35B-1 et seq.), or as defined in section 2 of P.L.1970, c.226 (C.24:21-2) and applied to any offense of the "New Jersey Controlled Dangerous Substances Act," P.L.1970, c.226 (C.24:21-1 et al.); or hemp or a hemp-derived cannabinoid product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.).
"Cannabis retailer" means any licensed person or entity that purchases or otherwise obtains usable cannabis from cannabis cultivators and cannabis items from cannabis manufacturers or cannabis wholesalers, and sells these to consumers from a retail store, and may use a cannabis delivery service or a certified cannabis handler for the off-premises delivery of cannabis items and related supplies to consumers. A cannabis retailer shall also accept consumer purchases to be fulfilled from its retail store that are presented by a cannabis delivery service which will be delivered by the cannabis delivery service to that consumer. This person or entity shall hold a Class 5 Cannabis Retailer license.
"Cannabis testing facility" means an independent, third-party entity meeting accreditation requirements established by the Cannabis Regulatory Commission that is licensed to analyze and certify cannabis items and medical cannabis for compliance with applicable health, safety, and potency standards.
"Cannabis wholesaler" means any licensed person or entity that purchases or otherwise obtains, stores, sells, or otherwise transfers, and may transport, cannabis items for the purpose of resale or other transfer to either another cannabis wholesaler or to a cannabis retailer, but not to consumers. This person or entity shall hold a Class 3 Cannabis Wholesaler license.
"Commission" means the Cannabis Regulatory Commission established pursuant to section 31 of P.L.2019, c.153 (C.24:6I-24).
"Conditional license" means a temporary license designated as either a Class 1 Cannabis Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis Retailer license, or a Class 6 Cannabis Delivery license that allows the holder to lawfully act as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service as the case may be, which is issued pursuant to an abbreviated application process, after which the conditional license holder shall have a limited period of time in which to become fully licensed by satisfying all of the remaining conditions for licensure which were not required for the issuance of the conditional license.
"Consumer" means a person 21 years of age or older who purchases, directly or through a cannabis delivery service, acquires, owns, holds, or uses cannabis items for personal use by a person 21 years of age or older, but not for resale to others.
"Consumption" means the act of ingesting, inhaling, or otherwise introducing cannabis items into the human body.
"Container" means the innermost wrapping, packaging, or vessel in which the final cannabis product is enclosed for retail sale to consumers, such as a jar, bottle, bag, box, packet, can, carton, or cartridge. "Container" excludes bulk shipping containers or outer wrappings that are not essential for the final retail delivery or sale to a consumer.
"Delivery" means the transportation of cannabis items and related supplies to a consumer. "Delivery" also includes the use by a licensed cannabis retailer of any third-party technology platform to receive, process, and fulfill orders by consumers, which third party shall not be required to be a licensed cannabis establishment, distributor, or delivery service, provided that any physical acts in connection with fulfilling the order and delivery shall be accomplished by a certified cannabis handler performing work for or on behalf of the licensed cannabis retailer, which includes a certified cannabis handler employed or otherwise working on behalf of a cannabis delivery service making off-premises deliveries of consumer purchases fulfilled by that cannabis retailer.
"Department" means the Department of Health.
"Director" means the Director of the Office of Minority, Disabled Veterans, and Women Cannabis Business Development in the Cannabis Regulatory Commission.
"Executive director" means the executive director of the Cannabis Regulatory Commission.
"Financial consideration" means value that is given or received either directly or indirectly through sales, barter, trade, fees, charges, dues, contributions, or donations.
"Immature cannabis plant" means a cannabis plant that is not flowering.
"Impact zone" means any municipality, based on past criminal marijuana enterprises contributing to higher concentrations of law enforcement activity, unemployment, and poverty, or any combination thereof, within parts of or throughout the municipality, that:
(1) has a population of 120,000 or more according to the most recently compiled federal decennial census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.);
(2) based upon data for calendar year 2019, ranks in the top 40 percent of municipalities in the State for marijuana- or hashish-related arrests for violation of paragraph (4) of subsection a. of N.J.S.2C:35-10; has a crime index total of 825 or higher based upon the indexes listed in the annual Uniform Crime Report by the Division of State Police; and has a local average annual unemployment rate that ranks in the top 15 percent of all municipalities, based upon average annual unemployment rates estimated for the relevant calendar year by the Office of Research and Information in the Department of Labor and Workforce Development;
(3) is a municipality located in a county of the third class, based upon the county's population according to the most recently compiled federal decennial census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.), that meets all of the criteria set forth in paragraph (2) other than having a crime index total of 825 or higher; or
(4) is a municipality located in a county of the second class, based upon the county's population according to the most recently compiled federal decennial census as of the effective date of P.L.2021, c.16 (C.24:6I-31 et al.):
(a) with a population of less than 60,000 according to the most recently compiled federal decennial census, that for calendar year 2019 ranks in the top 40 percent of municipalities in the State for marijuana- or hashish-related arrests for violation of paragraph (4) of subsection a. of N.J.S.2C:35-10; has a crime index total of 1,000 or higher based upon the indexes listed in the 2019 annual Uniform Crime Report by the Division of State Police; but for calendar year 2019 does not have a local average annual unemployment rate that ranks in the top 15 percent of all municipalities, based upon average annual unemployment rates estimated for the relevant calendar year by the Office of Research and Information in the Department of Labor and Workforce Development; or
(b) with a population of not less than 60,000 or more than 80,000 according to the most recently compiled federal decennial census, has a crime index total of 650 or higher based upon the indexes listed in the 2019 annual Uniform Crime Report, and for calendar year 2019 has a local average annual unemployment rate of 3.0 percent or higher using the same estimated annual unemployment rates.
"Intoxicating hemp beverage" means a beverage which is cultivated, derived, or manufactured prior to the effective date of section 781 of Pub.L.119-37 from hemp regulated pursuant to the "Agricultural Improvement Act of 2018," Pub.L.115-334 or the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.) that conforms to the allowed tetrahydrocannabinol concentration for hemp as established pursuant to the provisions of 7 U.S.C. s.1639o in effect prior to the effective date of section 781 of Pub.L.119-37.
"License" means a license issued under P.L.2021, c.16 (C.24:6I-31 et al.), including a license that is designated as either a Class 1 Cannabis Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis Retailer license, or a Class 6 Cannabis Delivery license. The term includes a conditional license for a designated class, except when the context of the provisions of P.L.2021, c.16 (C.24:6I-31 et al.) otherwise intend to only apply to a license and not a conditional license.
"Licensee" means a person or entity that holds a license issued under P.L.2021, c.16 (C.24:6I-31 et al.), including a license that is designated as either a Class 1 Cannabis Cultivator license, a Class 2 Cannabis Manufacturer license, a Class 3 Cannabis Wholesaler license, a Class 4 Cannabis Distributor license, a Class 5 Cannabis Retailer license, or a Class 6 Cannabis Delivery license, and includes a person or entity that holds a conditional license for a designated class, except when the context of the provisions of P.L.2021, c.16 (C.24:6I-31 et al.) otherwise intend to only apply to a person or entity that holds a license and not a conditional license.
"Licensee representative" means an owner, director, officer, manager, employee, agent, or other representative of a licensee, to the extent that the person acts in a representative capacity.
"Low dose THC beverage" means either a liquid consumable cannabis product or a powder or gel which can be mixed with water to create a liquid consumable cannabis product which is manufactured by a Class 2 Cannabis Manufacturer that contains less than 10 milligrams THC per container, or such greater amount as the commission may determine.
"Manufacture" means the drying, processing, compounding, or conversion of usable cannabis into cannabis products or cannabis resins. "Manufacture" does not include packaging or labeling.
"Mature cannabis plant" means a cannabis plant that is not an immature cannabis plant.
"Medical cannabis" means cannabis dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.). "Medical cannabis" does not include any cannabis or cannabis item which is cultivated, produced, processed, and consumed in accordance with P.L.2021, c.16 (C.24:6I-31 et al.).
"Microbusiness" means a person or entity licensed under P.L.2021, c.16 (C.24:6I-31 et al.) as a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service that may only, with respect to its business operations, and capacity and quantity of product: (1) employ no more than 10 employees; (2) operate a cannabis establishment occupying an area of no more than 2,500 square feet, and in the case of a cannabis cultivator, grow cannabis on an area no more than 2,500 square feet measured on a horizontal plane and grow above that plane not higher than 24 feet; (3) possess no more than 1,000 cannabis plants each month, except that a cannabis distributor's possession of cannabis plants for transportation shall not be subject to this limit; (4) acquire each month, in the case of a cannabis manufacturer, no more than 1,000 pounds of usable cannabis; (5) acquire for resale each month, in the case of a cannabis wholesaler, no more than 1,000 pounds of usable cannabis, or the equivalent amount in any form of manufactured cannabis product or cannabis resin, or any combination thereof; and (6) acquire for retail sale each month, in the case of a cannabis retailer, no more than 1,000 pounds of usable cannabis, or the equivalent amount in any form of manufactured cannabis product or cannabis resin, or any combination thereof.
"Noncommercial" means not dependent or conditioned upon the provision or receipt of financial consideration.
"Ownership interest" means a present right to ownership or equity interest in an entity. "Ownership interest" shall not include a future right such as an option, warrant, or convertible note.
"Premises" or "licensed premises" includes the following areas of a location licensed under P.L.2021, c.16 (C.24:6I-31 et al.): all public and private enclosed areas at the location that are used in the business operated at the location, including offices, kitchens, rest rooms, and storerooms; all areas outside a building that the Cannabis Regulatory Commission has specifically licensed for the production, manufacturing, wholesaling, distributing, retail sale, or delivery of cannabis items; and, for a location that the commission has specifically licensed for the production of cannabis outside a building, the entire lot or parcel that the licensee owns, leases, or has a right to occupy.
"Produce" means the planting, cultivation, growing or harvesting of cannabis. "Produce" does not include the drying of cannabis by a cannabis manufacturer, if the cannabis manufacturer is not otherwise manufacturing cannabis.
"Public place" means any place to which the public has access that is not privately owned; or any place to which the public has access where alcohol consumption is not allowed, including, but not limited to, a public street, road, thoroughfare, sidewalk, bridge, alley, plaza, park, playground, swimming pool, shopping area, public transportation facility, vehicle used for public transportation, parking lot, public library, or any other public building, structure, or area.
"Radio" means a system for transmitting sound without visual images, and includes broadcast, cable, on-demand, satellite, or Internet programming. "Radio" includes any audio programming downloaded or streamed via the Internet.
"Significantly involved person" means a person or entity who holds at least a five percent investment interest in a proposed or licensed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service, or who is a decision making member of a group that holds at least a 20 percent investment interest in a proposed or licensed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service, in which no member of that group holds more than a five percent interest in the total group investment interest, and the person or entity makes controlling decisions regarding the proposed or licensed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service operations.
"Television" means a system for transmitting visual images and sound that are reproduced on screens, and includes broadcast, cable, on-demand, satellite, or Internet programming. "Television" includes any video programming downloaded or streamed via the Internet.
"THC" means the psychoactive chemicals contained in the cannabis plant, including, but not limited to, delta-8, delta-9, delta-10, tetrahydrocannabinolic acid, and any other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol regardless of how derived or manufactured, and any other cannabinoid, other than cannabidiol, identified by the Cannabis Regulatory Commission, in consultation with the Department of Agriculture and the Attorney General, as causing intoxication.
"Usable cannabis" means the dried leaves and flowers of the female plant Cannabis sativa L., and does not include the seedlings, seeds, stems, stalks, or roots of the plant.
(cf: P.L.2025, c.325, s.6)
2. (New section) Distribution restrictions for low dose THC beverages.
a. A person shall not sell or distribute any low dose THC beverage unless:
(1) the person is licensed by the Cannabis Regulatory Commission in accordance with P.L.2021, c.16 (C.24:6I-31 et al.); or
(2) the person is a holder of any valid and unrevoked plenary retail distribution license, as that term is defined in R.S.33:1-12; and
(3) the product was manufactured by a Class 2 Cannabis Manufacturer and complies with the provisions of P.L.2021, c.16 (C.24:6I-31 et al.) and any rules or regulations adopted pursuant thereto; and
(4) the product was purchased from a Class 2 Cannabis Manufacturer or a Class 3 Cannabis Wholesaler.
b. In addition to any other penalty provided by law, any person licensed by the commission, or any holder of any valid and unrevoked plenary retail distribution license, as that term is defined in R.S.33:1-12, who is permitted to sell low dose THC beverages pursuant to section 3 of P.L. , c (C. ) (pending before the Legislature as this bill), who violates subsection a. of this section shall be subject to any civil penalties or fines adopted by the commission in accordance with P.L.2021, c.16 (C.24:6I-31 et al.).
c. The imposition of any fine or other remedy under P.L. , c (C. ) (pending before the Legislature as this bill) shall not preclude prosecution for a violation of the criminal laws of this State.
3. (New section) Sale, distribution of low dose THC beverages, restrictions.
a. (1) Notwithstanding the provisions of P.L.2021, c.16 (C.24:6I-31 et al.), or any rule or regulation adopted pursuant thereto, the holder of any valid and unrevoked plenary retail distribution license, as that term is defined in R.S.33:1-12, may sell or distribute low dose THC beverages in accordance with this section and section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) Any low dose THC beverage sold or offered for sale pursuant to paragraph (1) of this subsection:
(a) shall not be sold to any person under the age of 21;
(b) shall not be sold via vending machine;
(c) shall be securely stored;
(d) may be displayed in a place accessible to customers and be accessed without the assistance of an employee of the establishment only if:
(i) the establishment posts conspicuous notice at the place of storage or display indicating to customers that the products are low dose THC beverages and may only be purchased by a person 21 years of age or older;
(ii) the establishment actively monitors the place of storage or display;
(iii) an employee of the establishment confirms at the point of sale that the customer is 21 years of age or older; and
(iv) the establishment complies with any other requirements as may be established by rule by the Division of Alcoholic Beverage Control, in consultation with the commission.
(3) A holder of a plenary retail distribution license shall not sell to a consumer in a single sales transaction more than 24 containers containing low dose THC beverages.
b. Upon the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), any holder of a valid and unrevoked plenary retail distribution license may sell low dose THC beverages.
c. Any sale of a low dose THC beverage by a holder of any valid and unrevoked plenary retail distribution license shall be subject to the sales tax imposed on cannabis in accordance with the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). All taxes, fees, penalties, and revenues collected pursuant to this section shall be deposited in accordance with section 41 of P.L.2021, c.16 (C.24:6I-50).
d. (1) The provisions of Title 33 of the Revised Statutes and the rules and regulations promulgated thereunder shall apply to the sale or distribution of low dose THC beverages by any person or entity licensed pursuant to the provisions of Title 33 of the Revised Statutes;
(2) Nothing contained in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to preclude the Division of Alcoholic Beverage Control from exercising the authority to enforce the rules and regulations governing activities taken by licensees on licensed premises or from taking disciplinary action against a licensee under Title 33 of the Revised Statutes based upon a determination by the division that the licensee committed a violation of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. (New section) Penalties, violations regarding illegal sales of low dose THC beverages.
a. In addition to the penalties established pursuant to N.J.S.2C:35-5, a person who sells, offers for sale, or distributes any substance or product in violation of subsection a. of this section shall be liable to a civil penalty of not less than $100 for the first violation, not less than $1,000 for the second violation, and not less than $10,000 for the third and each subsequent violation. Each day during which a violation continues shall constitute a separate and distinct offense. The penalty prescribed by this section shall be collected and enforced by summary proceedings under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). Nothing in this section shall be construed to prohibit the imposition of multiple fines for a single violation as a penalty for the sale or distribution of more than one substance or product in violation of this section.
b. The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) may be enforced by State and local law enforcement agencies, State and local health and consumer protection agencies, the Division of Consumer Affairs in the Department of Law and Public Safety, and the Cannabis Regulatory Commission established pursuant to section 31 of P.L.2019, c.153 (C.24:6I-24).
c. An official authorized by statute or ordinance to enforce the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), the State or local health codes or consumer protection laws, or a law enforcement officer having enforcement authority in that municipality, may issue a summons for a violation of the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) and may serve and execute all process with respect to the enforcement of this section consistent with the Rules of Court.
d. A law enforcement officer, local health official, or other government official from an agency authorized to enforce this section may confiscate any low dose THC beverage that is sold, offered for sale, or distributed in violation of. P.L. , c. (C. ) (pending before the Legislature as this bill). In addition, the Division of Alcoholic Beverage Control in the Department of Law and Public Safety may confiscate any intoxicating hemp beverage that is sold, offered for sale, or distributed in violation of P.L. , c. (C. ) (pending before the Legislature as this bill) in accordance with the division's authority pursuant to Title 33 of the Revised Statutes, including, but not limited to, R.S.33:1-66.
e. A penalty recovered under the provisions of this section shall be recovered by and in the name of the State by the local health or consumer protection agency or other authorized government entity, which shall include, but not be limited to, the Division of Consumer Affairs in the Department of Law and Public Safety and the Cannabis Regulatory Commission established pursuant to section 31 of P.L.2019, c.153 (C.24:6I-24). With respect to an enforcement action brought by a government entity, any monetary penalty collected pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deposited in the special nonlapsing fund known as the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund," established pursuant to section 41 of P.L.2021, c.16 (C.24:6I-50). With respect to an enforcement action brought by a municipal official, half of any monetary penalty shall be paid into the treasury of the municipality in which the violation occurred for the general uses of the municipality, and half shall be deposited in the special nonlapsing fund known as the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund," established pursuant to section 41 of P.L.2021, c.16 (C.24:6I-50) . Nothing in this section shall be construed to preclude the Division of Alcoholic Beverage Control from pursuing enforcement actions in accordance with R.S.33:1-66.
f. A business found to have committed more than two violations of P.L. , c. (C. ) (pending before the Legislature as this bill) or found to have committed a third or subsequent violation at any individual location within one year shall be deemed a public nuisance. Notwithstanding any other provision of law, a municipality shall have the power to impose restrictions on the operation, including closure, of any business determined to constitute a public nuisance pursuant to this subsection.
g. The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be construed to impose liability on news media that accept or publish, or both, advertising for products or services that fall within the scope of P.L. , c. (C. ) (pending before the Legislature as this bill).
5. Section 25 of P.L.2021, c.16 (C.24:6I-42) is amended to read as follows:
25. Class 5 Cannabis Retailer license. A cannabis retailer shall have a Class 5 Cannabis Retailer license issued by the commission for the premises at which cannabis items are retailed, which may include purchase orders for off-premises delivery by a certified cannabis handler working for or on behalf of the cannabis retailer or consumer purchases to be fulfilled from the retail premises that are presented by a cannabis delivery service with a Class 6 Cannabis Delivery Service license and which will be delivered by the cannabis delivery service to that consumer. The commission shall determine the maximum number of licenses, of which at least 35 percent shall be conditional licenses issued pursuant to subparagraph (a) of paragraph (2) of subsection b. of section 19 of P.L.2021, c.16 (C.24:6I-36), and at least 10 percent of the total number of licenses and conditional licenses shall be designated for and only issued to microbusinesses pursuant to subsection f. of that section. Providing there exist qualified applicants, the commission shall issue a sufficient number of licenses to meet the market demands of the State and may, as authorized by paragraph (1) of subsection a. of section 18 of P.L.2021, c.16 (C.24:6I-35), accept new applications for additional licenses as it deems necessary to meet those demands.
a. To hold a Class 5 Cannabis Retailer license under this section, a cannabis retailer:
(1) Shall apply for a license in the manner described in section 18 of P.L.2021, c.16 (C.24:6I-35);
(2) Shall have at least one significantly involved person who has resided in this State for at least two years as of the date of the application and provide proof that this person and any other person with a financial interest who also has decision making authority for the cannabis retailer listed on an application submitted under section 18 of P.L.2021, c.16 (C.24:6I-35) is 21 years of age or older;
(3) Shall meet the requirements of any rule adopted by the commission under subsection b. of this section; and
(4) Shall provide for each of the following persons to undergo a criminal history record background check: any owner, other than an owner who holds less than a five percent investment interest in the cannabis retailer or who is a member of a group that holds less than a 20 percent investment interest in the cannabis retailer and no member of that group holds more than a five percent interest in the total group investment, and who lacks the authority to make controlling decisions regarding the cannabis retailer's operations; any director; any officer; and any employee.
(a) Pursuant to this provision, the commission is authorized to exchange fingerprint data with and receive criminal history record background information from the Division of State Police and the Federal Bureau of Investigation consistent with the provisions of applicable State and federal laws, rules, and regulations. The Division of State Police shall forward criminal history record background information to the commission in a timely manner when requested pursuant to the provisions of this section;
(b) Each person shall submit to being fingerprinted in accordance with applicable State and federal laws, rules, and regulations. No check of criminal history record background information shall be performed pursuant to this section unless a person has furnished his written consent to that check. A person who refuses to consent to, or cooperate in, the securing of a check of criminal history record background information shall not be considered for licensure as a retailer. Each person shall bear the cost for the criminal history record background check, including all costs of administering and processing the check;
(c) (i) With respect to determining whether any conviction of a person contained in the criminal history record background check should disqualify an applicant for a Class 5 Cannabis Retailer license, the commission shall not take into consideration any conviction for a crime or offense that occurred prior to the effective date of P.L.2021, c.16 (C.24:6I-31 et al.) involving a controlled dangerous substance or controlled substance analog as set forth in paragraph (11) or (12) of subsection b., or subparagraph (b) of paragraph (10) of subsection b. of N.J.S.2C:35-5, or paragraph (3) or (4) of subsection a. of N.J.S.2C:35-10, or any similar indictable offense under federal law, this State's law, or any other state's law, or for any conviction under federal law for conduct involving cannabis or a cannabis item that is authorized by P.L.2021, c.16 (C.24:6I-31 et al.). Additionally, the commission shall not take into consideration any other prior conviction, unless that conviction is for an indictable offense under federal law, other than a conviction for conduct involving cannabis or a cannabis item that is authorized by P.L.2021, c.16 (C.24:6I-31 et al.), or under this State's law, or any other state's law that is substantially related to the qualifications, functions, or duties for which the license is required, and not more than five years have passed since the date of that conviction, satisfactory completion of probation or parole, or release from incarceration, whichever is later. In determining which indictable offenses are substantially related to the qualifications, functions, or duties for which the license is required, the commission shall at least consider any conviction involving fraud, deceit, or embezzlement, and any conviction for N.J.S.2C:35-6, employing a minor in a drug distribution scheme, or similar indictable offense in this or another jurisdiction involving the use of a minor to dispense or distribute a controlled dangerous substance or controlled substance analog;
(ii) The commission may approve an applicant for a Class 5 Cannabis Retailer license after conducting a thorough review of any previous conviction of a person that substantially related to the qualifications, functions, or duties for which the license is required that is contained in the criminal history record background information, and this review shall include examining the nature of the indictable offense, the circumstances at the time of committing the offense, and evidence of rehabilitation since conviction. If the commission determines that the reviewed conviction should not disqualify the applicant, the applicant may be approved so long as the applicant is otherwise qualified to be issued the license; and
(d) Upon receipt and review of the criminal history record background information from the Division of State Police and the Federal Bureau of Investigation, the commission shall provide written notification to the applicant of the qualification or disqualification for a Class 5 Cannabis Retailer license.
If the applicant is disqualified because the commission determined that a person has a disqualifying conviction pursuant to the provisions of this section, the conviction that constitutes the basis for the disqualification shall be identified in the written notice.
(e) The Division of State Police shall promptly notify the commission in the event that an individual who was the subject of a criminal history record background check conducted pursuant to this section is convicted of a crime or offense in this State after the date the background check was performed. Upon receipt of that notification, the commission shall make a determination regarding the continued eligibility for the applicant, or following application, for the licensee, to hold a Class 5 Cannabis Retailer license.
b. The commission shall adopt rules that:
(1) Provide for the annual renewal of the Class 5 Cannabis Retailer license;
(2) Establish application, licensure, and renewal of licensure fees for a cannabis retailer in accordance with paragraph (2) of subsection a. of section 18 of P.L.2021, c.16 (C.24:6I-35); and
(3) Require a cannabis retailer to meet any public health and safety standards, industry best practices, and all applicable regulations established by the commission related to the retailing of cannabis items.
c. Fees adopted under subsection b. of this section:
(1) Shall be in the form of a schedule that imposes a greater fee for premises with more square footage; and
(2) Shall be deposited in the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund" established under section 41 of P.L.2021, c.16 (C.24:6I-50).
d. (1) The commission shall issue or deny issuance of a Class 5 Cannabis Retailer license or conditional license in accordance with the procedures set forth in section 18 of P.L.2021, c.16 (C.24:6I-35).
(2) The commission may suspend or revoke a Class 5 Cannabis Retailer license or conditional license to operate as a cannabis retailer for cause, which shall be considered a final agency action for the purposes of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) and shall be subject only to judicial review as provided in the Rules of Court.
e. A person who has been issued a license or conditional license shall display the license or conditional license at the premises at all times when cannabis is being retailed.
f. As required by the commission in regulation, a licensee or conditional licensee shall report required changes in information about the licensee to the commission within the time specified by the commission.
g. Subject to receiving an endorsement pursuant to section 28 of P.L.2019, c.153 (C.24:6I-21):
(1) A licensed cannabis retailer may operate a cannabis consumption area at which the on-premises consumption of cannabis items either obtained from the retailer, or brought by a person to the consumption area, may occur.
(2) Each licensed cannabis retailer may operate only one cannabis consumption area.
(3) The cannabis consumption area shall be either (a) an indoor, structurally enclosed area of the licensed cannabis retailer that is separate from the area in which retail sales of cannabis items occur or (b) an exterior structure on the same premises as the retailer, either separate from or connected to the retailer.
(4) A Class 5 Cannabis Retailer licensee that has been approved for a cannabis consumption area endorsement may transfer cannabis items purchased by a consumer in its retail establishment to that consumer in its cannabis consumption area. The Class 5 Cannabis Retailer licensee shall not transfer to the consumption area an amount of cannabis items that exceed the limits established by the commission.
h. In addition to cannabis and cannabis items, the holder of a valid and unrevoked Class 5 Cannabis Retailer license shall be authorized to sell hemp-derived cannabinoid products intended for human consumption until November 13, 2026, the expiration date of section 11 of P.L.2025, c.215 (C.24:6I-48.5), provided that the products are so labeled in accordance with commission rules.
i. Notwithstanding any law to the contrary, the holder of a Class 5 Cannabis Retailer license shall be authorized to maintain up to two satellite retail locations. A Class 5 Retailer licensee seeking to establish a satellite location shall obtain commission approval in accordance with P.L.2021, c.16 (C.24:6I-31 et al.) and, upon commission approval, shall be authorized to establish and maintain up to two satellite locations.
j. In addition to selling all low dose THC beverages authorized under section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the holder of a valid and unrevoked Class 5 Cannabis Retailer license may also sell beverages containing up to 100 milligrams of THC per container, provided such container is resealable.
(cf: P.L.2025, c.325, s.11)
6. Section 41 of P.L.2021, c.16 (C.24:6I-50) is amended to read as follows:
41. Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund.
a. Except for amounts credited to the Property Tax Reform Account in the Property Tax Relief Fund pursuant to paragraph 7 of Section I of Article VIII of the New Jersey Constitution, all fees and penalties collected by the commission, all tax revenues on retail sales of cannabis items, all tax revenues collected pursuant to the provisions of the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.); and all revenues, if any, collected for the Social Equity Excise Fee pursuant to section 39 of P.L.2021, c.16 (C.54:47F-1); and all tax revenues on the retail sale of intoxicating hemp beverages and low dose THC beverages by any plenary retail distribution license holder or Class 5 Cannabis Retailer licensee, as well as any fees associated with the approval provided to any plenary wholesale license holder to sell intoxicating hemp beverages, as defined pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33), shall be deposited in a special nonlapsing fund, which shall be known as the "Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Fund," with 15 percent of the monies deposited being placed into an account within the fund to be known as the "Underage Deterrence and Prevention Account."
b. Except for any monies derived from the Social Equity Excise Fee which shall be appropriated annually in accordance with subsection d. of this section and the monies placed into the "Underage Deterrence and Prevention Account" within the fund for the commission to fund programs and services in accordance with subsection e. of this section, monies in the fund shall be appropriated annually as follows:
(1) at least 70 percent of all tax revenues on retail sales of cannabis items shall be appropriated for investments, including through grants, loans, reimbursements of expenses, and other financial assistance, in municipalities defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33), as well as provide direct financial assistance to qualifying persons residing therein as recommended by the commission; and (2) the remainder of the monies in the fund shall be appropriated by the Legislature to include the following:
(a) to oversee the development, regulation, and enforcement of activities associated with the personal use of cannabis pursuant to P.L.2021, c.16 (C.24:6I-31 et al.), and assist with assuming responsibility from the Department of Health for the further development and expansion, regulation, and enforcement of activities associated with the medical use of cannabis pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.) and P.L.2015, c.158 (C.18A:40-12.22 et al.);
(b) to reimburse the expenses incurred by any county or municipality for the training costs associated with the attendance and participation of a law enforcement officer from its law enforcement unit in a police training course by an approved school, as those terms are defined in section 2 of P.L.1961, c.56 (C.52:17B-67), which trains and certifies the law enforcement officer, including a law enforcement officer with a working dog, as that term is defined in section 1 of P.L.2006, c.88 (C.10:5-29.7), as a Drug Recognition Expert for detecting, identifying, and apprehending drug-impaired motor vehicle operators and to pay for the same training costs incurred by the Division of State Police in the Department of Law and Public Safety for the training of a State police officer or trooper, including an officer or trooper with a working dog, as a Drug Recognition Expert, as well as the Division of State Police costs in furnishing additional program instructors to provide Drug Recognition Expert training to police officers, troopers, and working dogs. A municipality or county seeking reimbursement shall apply to the commission, itemizing the costs, with appropriate proofs, for which reimbursement is requested and provide a copy of the certificate issued to the police officer to indicate the successful completion of the program by the police officer, and that officer's working dog, if applicable; and
(c) for further investments, including through grants, loans, reimbursements of expenses, and other financial assistance, in municipalities defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33), as well as provide direct financial assistance to qualifying persons residing therein as recommended by the commission.
The monies appropriated pursuant to paragraph (1) of this subsection shall be offset by any revenue constitutionally dedicated to municipalities defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33).
c. After the appropriation of those monies in the fund in accordance with subsection b. of this section, any remaining monies shall be deposited in the State's General Fund.
d. (1) (a) Not less than 60 days prior to the first day of each State fiscal year, the commission shall make recommendations to the Governor and Legislature for social equity appropriations based upon the amount of any revenues collected during the current fiscal year for the Social Equity Excise Fee pursuant to section 39 of P.L.2021, c.16 (C.54:47F-1), or, if the commission has not imposed or adjusted the Social Equity Excise Fee in the current fiscal year pursuant to that section, then appropriations from the General Fund in an amount equal to the revenues that would have been collected had the commission imposed or adjusted the Social Equity Excise Fee. The recommendations to the Governor and the Legislature shall consist of social equity appropriations that invest, through grants, loans, reimbursements of expenses, and other financial assistance, in private for-profit and non-profit organizations, and public entities, including any municipality defined as an "impact zone" pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33) as well as provide direct financial assistance to qualifying persons as determined by the commission, in order to create, expand, or promote educational and economic opportunities and activities, and the health and well-being of both communities and individuals.
(b) Not less than 30 days prior to submitting its recommendations to the Governor and Legislature pursuant to subparagraph (a) of this paragraph, the commission shall hold at least three regional public hearings throughout the State, with at least one hearing in the northern, central, and southern regions of the State, to solicit the public input on the social equity investments to be made as described in this section.
(2) The commission's recommendations to the Governor and Legislature may include, but are not limited to, recommending investments in the following categories of social equity programs:
(a) educational support, including literacy programs, extended learning time programs that endeavor to close the achievement gap and provide services for enrolled students after the traditional school day, GED application and preparedness assistance, tutoring programs, vocational programming, and financial literacy;
(b) economic development, including the encouragement and support of community activities so as to stimulate economic activity or increase or preserve residential amenities, and business marketing, and job skills and readiness training, specific employment training, and apprenticeships;
(c) social support services, including food assistance, mental health services, substance use disorders treatment and recovery, youth recreation and mentoring services, life skills support services, and reentry and other rehabilitative services for adults and juveniles being released from incarceration; and
(d) legal aid for civil and criminal cases, regardless of a party's citizenship or immigration status.
(3) The commission may also, subject to the annual appropriations act, recommend that it retain a portion of the Social Equity Excise Fee to administer startup grants, low-interest loans, application fee assistance, and job training programs through the commission's Office of Minority, Disabled Veterans and Women Cannabis Business Development established by section 32 of P.L.2019, c.153 (24:6I-25).
(4) After receiving the recommendations, as set forth in paragraphs (1) through (3) of this subsection and prior to the first day of each fiscal year, the Legislature shall provide to the commission a statement which lists the investments to be made by appropriations, including the investment recipients, investment amounts, and how the investment is intended to support and advance social equity as described in this subsection.
e. The monies deposited in the "Underage Deterrence and Prevention Account" within the fund shall be used by the commission, based on the acceptance of applications submitted on a form and through an approval or denial process promulgated by the commission, to fund private for-profit and non-profit organizations and county and municipal programs and services that offer social services, educational, recreational, and employment opportunities and local economic development designed to encourage, improve, and support youthful community activities to divert and prevent persons under 18 years of age from activities associated with the consumption of cannabis items, marijuana, or hashish.
(cf: P.L.2025, c.215, s.5)
7. R.S.33:1-12 is amended to read as follows:
33:1-12. Class C licenses shall be subdivided and classified as follows:
Plenary retail consumption license. 1. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages for consumption on the licensed premises by the glass or other open receptacle, and also to sell any alcoholic beverages in original containers for consumption off the licensed premises, but this license shall not be issued to permit the sale of alcoholic beverages in or upon any premises in which a grocery, delicatessen, drug store, or other mercantile business is carried on, except as hereinafter provided. The holder of this license shall be permitted to conduct consumer wine, beer, and spirits tasting events and samplings for a fee or on a complimentary basis pursuant to conditions established by rules and regulations of the Division of Alcoholic Beverage Control, provided, however, that the holder of this license complies with the terms and conditions set forth in section 3 of P.L.2009, c.216 (C.33:1-12d). Subject to such rules and regulations established from time to time by the director, the holder of this license shall be permitted to sell alcoholic beverages in or upon the premises in which any of the following is carried on: the keeping of a hotel or restaurant including the sale of mercantile items incidental thereto as an accommodation to patrons; the sale, at an entertainment facility as defined in R.S.33:1-1, having a seating capacity for no less than 4,000 patrons, of mercantile items traditionally associated with the type of event or program held at the site; the sale of distillers', brewers', and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this section; the sale of cigars, cigarettes, packaged crackers, chips, nuts, and similar snacks and ice at retail as an accommodation to patrons or the retail sale of nonalcoholic beverages as accessory beverages to alcoholic beverages; or, in commercial bowling establishments, the retail sale or rental of bowling accessories and the retail sale from vending machines of candy, ice cream, and nonalcoholic beverages. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $250 and not more than $2,500. No ordinance shall be enacted which shall raise or lower the fee to be charged for this license by more than 20 percent from that charged in the preceding license year or $500.00, whichever is the lesser. The governing board or body of each municipality may, by ordinance, enact that no plenary retail consumption license shall be granted within its respective municipality.
The holder of this license shall be permitted to obtain a restricted brewery license issued pursuant to subsection 1c. of R.S.33:1-10 and to operate a restricted brewery immediately adjoining the licensed premises in accordance with the restrictions set forth in that subsection. All fees related to the issuance of both licenses shall be paid in accordance with statutory law.
Seasonal retail consumption license. 2. (1) The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages for consumption on the licensed premises by the glass or other open receptacle and also to sell any alcoholic beverages in original containers for consumption off the licensed premises, during the summer season from May 1 until November 14, inclusive, or during the winter season from November 15 until April 30, inclusive.
(2) In addition, the director shall issue to the holder of this license, upon request by the licensee, one-day permits that shall entitle the license holder to sell alcoholic beverages for consumption on the licensed premises during the season when the license holder is not authorized to sell alcoholic beverages pursuant to subparagraph (1) of this subsection. The number of one-day permits issued to a licensee pursuant to this subsection shall not exceed an aggregate of 14 permits in one calendar year. A one-day permit issued pursuant to this subsection shall be valid for 24 consecutive hours. The fee for each one-day permit shall be $500.
The governing body of the municipality in which the licensed premises is situated may place reasonable conditions upon a one-day permit for the purpose of maintaining public safety on the licensed premises and immediately surrounding area. The costs associated with the reasonable conditions placed on the one-day permit shall be assumed by the holder of this license.
(3) This license shall not be issued to permit the sale of alcoholic beverages in or upon any premises in which a grocery, delicatessen, drug store, or other mercantile business is carried on, except as hereinafter provided. Subject to such rules and regulations established from time to time by the director, the holder of this license shall be permitted to sell alcoholic beverages in or upon the premises in which any of the following is carried on: the keeping of a hotel or restaurant including the sale of mercantile items incidental thereto as an accommodation to patrons; the sale of distillers', brewers', and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this section; the sale of cigars, cigarettes, packaged crackers, chips, nuts, and similar snacks and ice at retail as an accommodation to patrons; or the retail sale of nonalcoholic beverages as accessory beverages to alcoholic beverages. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at 75 percent of the fee fixed by said board or body for plenary retail consumption licenses. The governing board or body of each municipality may, by ordinance, enact that no seasonal retail consumption license shall be granted within its respective municipality.
(4) A person who held this license prior to the effective date of P.L.2025, c.295 and wishes to exchange the license for a plenary retail consumption license may surrender the license to the issuing authority prior to the last day of the 24th month following the effective date of P.L.2025, c.295 and the issuing authority shall convert the license to a plenary retail consumption license. Thereafter, the licensee may sell any alcoholic beverages during 12 months of each year in accordance with the provisions of this section. The governing board or body of the municipality in which the licensed premises is situated shall affirmatively approve the holder of this license converting it to a plenary retail consumption license in accordance with this subsection and exercising the same privileges as the holder of a plenary retail consumption license. A person who converts this license shall be entitled to sell alcoholic beverages on the same days and during the same hours as other plenary retail consumption license holders within the same municipality.
The fee to convert this license shall be equal to 43 percent of the average sales price of plenary retail consumption licenses in the municipality in which the licensed premises is located during the two years immediately preceding the effective date of P.L.2025, c.295. If less than three plenary retail consumption licenses have been sold in the municipality or municipalities during the two years immediately preceding the effective date of P.L.2025, c.295, the fee shall be equal to 43 percent of the average sales price of the last three plenary retail consumption licenses sold prior to the effective date of P.L.2025, c.295, except as otherwise provided in paragraph (b) of this subsection. If the licensed premises is located within the boundaries of two or more municipalities, the highest average sale price of the two or more municipalities shall be used to calculate the fee. The calculation to determine the fee shall not include de minimis or related party transfer sales and shall be subject to the following requirements:
(a) if the sales price of a plenary retail consumption license required to be used in this section to determine the average sales price is not known or cannot be determined because the license was sold co-mingled with other assets as part of a bulk sale for a total sales price that did not identify the component prices of the individual assets included in the sale, the fee shall be $350,000;
(b) if less than three plenary retail consumption licenses have been sold in the municipality or municipalities during the five years immediately preceding the effective date of P.L.2025, c.295, the fee shall be $350,000; or
(c) if a municipality has less than five plenary retail consumption licenses, the fee shall be $350,000.
The fee for converting this license shall be paid to the municipality in which the licensed premises is located. If the licensed premises is located within the boundaries of two or more municipalities, the fee shall be divided and paid in equal proportions to the municipalities. A person who exchanges this license also shall pay the annual fee established by the issuing authority for holding a plenary retail consumption license.
Plenary retail distribution license. 3. a. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages, or low dose THC beverages, or [intoxicating hemp beverages], until November 13, 2026, the expiration date of section 11 of P.L.2025, c.215 (C.24:6I-48.5), intoxicating hemp beverages, for consumption off the licensed premises, but only in original containers except that licensees shall be permitted to conduct consumer wine, beer, and spirits tasting events and samplings on a complimentary basis pursuant to conditions established by rules and regulations of the Division of Alcoholic Beverage Control, provided, however, that the holder of this license complies with the terms and conditions set forth in section 3 of P.L.2009, c.216 (C.33:1-12d).
The governing board or body of each municipality may, by ordinance, enact that this license shall not be issued to permit the sale of alcoholic beverages in or upon any premises in which any other mercantile business is carried on, except that any such ordinance, heretofore or hereafter adopted, shall not prohibit the retail sale of distillers', brewers', and vintners' packaged merchandise prepacked as a unit with other suitable objects as gift items to be sold only as a unit; the sale of novelty wearing apparel identified with the name of the establishment licensed under the provisions of this act; cigars, cigarettes, packaged crackers, chips, nuts, and similar snacks, ice, and nonalcoholic beverages as accessory beverages to alcoholic beverages. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $125 and not more than $2,500. No ordinance shall be enacted which shall raise or lower the fee to be charged for this license by more than 20 percent from that charged in the preceding license year or $500.00, whichever is the lesser. The governing board or body of each municipality may, by ordinance, enact that no plenary retail distribution license shall be granted within its respective municipality.
Limited retail distribution license. 3. b. The holder of this license shall be entitled, subject to rules and regulations, to sell any unchilled, brewed, malt alcoholic beverages in quantities of not less than 72 fluid ounces for consumption off the licensed premises, but only in original containers, provided, however, that this license shall be issued only for premises operated and conducted by the licensee as a bona fide grocery store, meat market, meat and grocery store, delicatessen, or other type of bona fide food store at which groceries or other foodstuffs are sold at retail and provided further that this license shall not be issued except for premises at which the sale of groceries or other foodstuffs is the primary and principal business and at which the sale of alcoholic beverages is merely incidental and subordinate thereto. The fee for this license shall be fixed by the governing body or board of the municipality in which the licensed premises are situated, by ordinance, at not less than $31 and not more than $63. The governing board or body of each municipality may, by ordinance, enact that no limited retail distribution license shall be granted within its respective municipality.
Plenary retail transit license. 4. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages, for consumption only, on railroad trains, airplanes, limousines, and boats, while in transit. The fee for this license for use by a railroad or air transport company shall be $375, for use by the owners of limousines shall be $31 per vehicle, and for use on a boat shall be $63 on a boat 65 feet or less in length, $125 on a boat more than 65 feet in length but not more than 110 feet in length, and $375 on a boat more than 110 feet in length; such boat lengths shall be determined in the manner prescribed by the Bureau of Customs of the United States Government or any federal agency successor thereto for boat measurement in connection with issuance of marine documents. A license issued under this provision to a railroad or air transport company shall cover all railroad cars and planes operated by any such company within the State of New Jersey. A license for a boat or limousine issued under this provision shall apply only to the particular boat or limousine for which issued and shall permit the purchase of alcoholic beverages for sale or service in a boat or limousine to be made from any Class A and B licensee or from any Class C licensee whose license privilege permits the sale of alcoholic beverages in original containers for off-premises consumption. An interest in a plenary retail transit license issued in accordance with this section shall be excluded in determining the maximum number of retail licenses permitted under P.L.1962, c.152 (C.33:1-12.31 et seq.).
Club license. 5. The holder of this license shall be entitled, subject to rules and regulations, to sell any alcoholic beverages but only for immediate consumption on the licensed premises and only to bona fide club members and their guests. The fee for this license shall be fixed by the governing board or body of the municipality in which the licensed premises are situated, by ordinance, at not less than $63 and not more than $188. The governing board or body of each municipality may, by ordinance, enact that no club licenses shall be granted within its respective municipality. Club licenses may be issued only to such corporations, associations and organizations as are operated for benevolent, charitable, fraternal, social, religious, recreational, athletic, or similar purposes, and not for private gain, and which comply with all conditions which may be imposed by the Director of the Division of Alcoholic Beverage Control by rules and regulations.
The provisions of section 23 of P.L.2003, c.117 amendatory of this section shall apply to licenses issued or transferred on or after July 1, 2003, and to license renewals commencing on or after July 1, 2003.
Sporting facility license. 6. The holder of this license shall be entitled, subject to rules and regulations, to sell at retail or to serve any alcoholic beverages as the owner, operator, lessee, or concessionaire of a sporting facility by the glass or other receptacle or in original containers only on the premises of the sporting facility.
Notwithstanding any other provision of Title 33 of the Revised Statutes and subject to conditions established by the director, the holder of this license may share direction and control of the premises to be licensed and share proceeds and profits from the sale of alcoholic beverages with the owner, operator, concessionaire, or lessee of the facility. The holder of this license shall be permitted to conduct consumer wine, beer, and spirits tasting events and samplings for a fee or on a complimentary basis provided, however, the license holder complies with the provisions of section 3 of P.L.2009, c.216 (C.33:1-12d) and rules and regulations promulgated thereto. Notwithstanding any law, rule or regulation to the contrary, the holder of this license shall be entitled to establish up to five all-inclusive areas within the licensed sporting facility, provided the total capacity of the all-inclusive area or areas within the sporting facility for each game or event does not exceed more than 500 persons or five percent of the total capacity of the sporting facility, whichever is greater.
The fee for this license shall be $2,500 for venues with a capacity of less than 7,500 persons; $5,000 for venues with a capacity of not less than 7,500 persons but not more than 14,999 persons; $7,500 for venues with a capacity of not less than 15,000 persons but not more than 22,499 persons; and $10,000 for venues with a capacity of 22,500 persons or more.
The director may, in accordance with regulations or a special ruling, issue special all-inclusive area event permits to the holder of this license authorizing the establishment of an all-inclusive area or areas in excess of these limitations for a national or international sporting event at a sporting facility with a seating capacity of 50,000 or more persons, provided the issuance of the special all-inclusive area event permits is consistent with the provisions of Title 33 of the Revised Statutes and any regulations promulgated thereunder. The director may impose special conditions on the special all-inclusive area event permits deemed necessary and proper to protect the health, safety, and welfare of the public. A special all-inclusive area event permit issued pursuant to this subsection shall be valid for the specified duration of the event and the fee shall be $2,000 per day for each all-inclusive area established, but the total fee shall not exceed $6,000 per day. Prior to the issuance of a special all-inclusive area event permit, the director may require the holder of this license to provide a bond or equivalent to the Division of Alcoholic Beverage Control in an amount to be determined by the director based on the size, scope, and conditions of the national or international sporting event and the compliance history of the sporting facility license holder.
For the purposes of this subsection:
"National or international sporting event" means a tournament-level professional event governed by a national or international sports federation or governing body, including, but not limited to, sporting events governed by the National Football League, International Olympic Committee, and the International Federation of Association Football.
"Sporting facility" means a stadium, arena, team training facility, or similar venue located on public property where alcoholic beverages are served or sold at retail for consumption on the premises by the glass or other open receptacle or in original containers.
"Team training facility" shall include team offices and team headquarters.
(cf: P.L.2025, c.295, s.1)
8. (New section) This act
shall take effect upon the expiration date of section 11 of P.L.2025, c.215
(C.24:6I-48.5), November 13, 2026.
STATEMENT
This bill would allow liquor stores to sell low dose cannabis beverages, also known as low dose THC beverages. The bill defines a "low dose THC beverage" as either a liquid consumable cannabis product or a powder or gel which can be mixed with water to create a liquid consumable cannabis product which is manufactured by a Class 2 Cannabis Manufacturer that contains less than 10 milligrams THC per container, or such greater amount as the Cannabis Regulatory Commission may determine.
Under the bill, low dose THC beverages would be subject to the State sales tax. The bill requires a prospective purchaser to provide identification, and limits the amount that may be sold to a purchaser in a single transaction to 24 containers. A retail establishment would be barred from selling the beverages in vending machines, be required to actively monitor the place of storage or display of the beverages, and be required to confirm at the point of sale that the customer is 21 years of age or older. The establishment is also required to comply with any other requirements as may be established by the Division of Alcoholic Beverage Control, in consultation with the Cannabis Regulatory Commission.
Establishments that fail to comply with the provisions of the bill would be subject to civil penalties.
