Hemp CBD Across State Lines: New Jersey

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The
Agriculture
Improvement
Act
of
2018
(“2018
Farm
Bill
”)
legalized
hemp
by
removing
the
crop
and
its
derivatives
from
the
definition
of
marijuana
under
the
Controlled
Substances
Act
(“CSA”)
and
by
providing
a
detailed
framework
for
the
cultivation
of
hemp.
The
2018
Farm
Bill
gives
the
US
Department
of
Agriculture
(“USDA”)
regulatory
authority
over
hemp
cultivation
at
the
federal
level.
In
turn,
states
have
the
option
to
maintain
primary
regulatory
authority
over
the
crop
cultivated
within
their
borders
by
submitting
a
plan
to
the
USDA.

This
federal
and
state
interplay
has
resulted
in
many
legislative
and
regulatory
changes
at
the
state
level.
Indeed,
most
states
have
introduced
(and
adopted)
bills
that
would
authorize
the
commercial
production
of
hemp
within
their
borders.
A
smaller
but
growing
number
of
states
also
regulate
the
sale
of
products
derived
from
hemp.

In
light
of
these
legislative
changes,
we
are
presenting
a
50-state
series
analyzing
how
each
jurisdiction
treats
hemp-derived
cannabidiol
(“Hemp-CBD”).
Today
we
head
to
the
home
of
Bruce
Springsteen,
Tony
Soprano,
Thomas
Edison
and
marijuana-friendly
presidential
candidate

Cory
Booker:

New
Jersey.

New
Jersey
forever
cemented
itself
in
hemp
history
by
becoming
one
of
the
first
states
to
have
a
hemp
plan

approved

by
the
USDA.

It
shouldn’t
surprise
anyone
who
has
been
paying
attention
to
New
Jersey’s
hemp
program
that
the
state
was
one
of
the
first
three
approved.
New
Jersey
has
been
reactive
with
the
changing
federal
hemp
programs.
In
November
2018,
New
Jersey’s
governor
signed
“New
Jersey
Industrial
Hemp
Pilot
Program”
signed
into
law.
The
statute
authorized
the
New
Jersey
Department
of
Agriculture
(“NJDA”)
 to
promulgate
rules
regulating
the
cultivation
of
industrial
hemp
in
New
Jersey
for
research
purposes
under
the
2014
Farm
Bill.
Shortly
after,
President
Trump
signed
the
2018
Farm
Bill.
New
Jersey
didn’t
miss
a
step,
enacting
 the “New
Jersey
Hemp
Farming
Act”
in
August
2019
to
repeal
and
replace the
New
Jersey
Industrial
Hemp
Pilot
Program.

The
New
Jersey
hemp plan,
as
approved
by
the
USDA
,
(the
“Plan”)
follows
the

USDA
interim
hemp
rules

closely
(more
on
the
federal
hemp
rules

here
). The
majority
of
the
rules
in
the
Plan
match
the
 standards
set
by
the
USDA,
including
the
NJDA’s
maintenance
of
information,
providing
requisite
information
to
USDA,
a
procedure
for
testing
for
total
THC
(delta-9
THC
and
THCa)
disposal
procedures,
violation
provisions,
and
annual
inspections.

In
some
aspects,
the
Plan
goes
further
than
the
USDA
interim
hemp
rules.
The
following
examples
illustrate
how
the
Plan
is
more
restrictive
than
the
interim
hemp
rules:

  • N.J.A.C.
    2:25-2.2
    requires
    a
    site
    modification
    fee
    any
    time
    a
    growing
    site
    is
    altered
    or
    added
    to
    an
    existing
    license
    so
    NJDA
    can
    submit
    accurate
    records
    to
    keep
    the
    USDA
    apprised
    of
    the
    status
    of
    all
    hemp
    producers
    and
    awards
    of
    all
    land
    being
    used
    to
    produce
    hemp.
  • N.J.A.C.
    2:25-2.2
    prohibits
    public
    access
    to
    hemp,
    such
    as
    hemp
    mazes
    or
    any
    other
    recreational
    activity.
  • N.J.A.C.
    2:25-3.2
    allows
    the
    Department
    to
    prohibit
    any
    hemp,
    seeds,
    plantlets
    or
    propagules
    for
    any
    reason.
    This
    allows
    NJDA
    to
    ban
    a
    particular
    strain
    or
    source
    for
    hemp
    if
    it
    is
    unreliable
    with
    regards
    to
    THC
    content.

In
addition,
the
Plan
issues
handler
and
processor
licenses.
The
interim
rules
don’t
require
that
states
issue
licenses
for
these
activities. 
In
addition,
the
Plan
requires
that
“[a]ny
person
transporting
hemp
or
hemp
materials
shall
maintain,
and
provide
upon
request
by
law
enforcement,
proof
of
authorization
to
engage
in
the
commercial
sale
of
hemp[,] as
well
as
a
travel
manifest
that
lists
the
origin,
destination,
product
description,
and
date
of
transport.
Third-party
carriers
are
not
required
to
be
authorized
hemp
producers
in
order
to
transport
hemp.”
Again,
the
Plan
is
going
beyond
the
interim
rules
with
these
transporation
requirements.

New
Jersey
also
requires
that
processors
include
labels
that
show
the
amount
of
oils
or
extract,
the
percentage
of
THC,
and
the
percentage
of
CBD
extract
contained
in
a
hemp
product,
including
Hemp
CBD.
Labels
must
also
distinguish
between hemp
extract,
CBD,
or
hemp
oil.
The
New
Jersey
Hemp
Farming
Act
defines
those
terms
as
follows:

“CBD”
or
“cannabidiol”
is
a
phytocannabinoid
found
in
cannabis
which
does
not
produce
psychoactive
effects
in
users.

“Hemp
Extract”
means
oil
chemically
extracted
from
hemp’s
aerial
plant
part,
such
as
seeds,
stalks
or
flowers,
using
chemical
processes,
containing
a
natural
blend
of
phytocannabinoids,
and
includes
cannabidiol,
or
“CBD”
oil.

“Hemp
Oil”
means
oil
obtained
by
physically
pressing
hemp
seeds
with
a
3:1
ratio
of
omega-6
to
omega-3
essential
fatty
acids
and
does
not
include
cannabidiol
or
CBD.

The
Act
also
includes
some
interesting
language
on
Hemp
CBD
products:

Notwithstanding
any
other
law,
or
rule
or
regulation
adopted
pursuant
thereto
to
the
contrary,
derivatives
of
hemp,
including
hemp-derived
cannabidiol,
may
be
added
to
cosmetics,
personal
care
products,
and
products
intended
for
human
or
animal
consumption
to
the
maximum
extent
permitted
by
federal
law.

Retail
sales
of
hemp
products
processed
outside
the
State
may
be
conducted
in
the
State
when
the
products
and
the
hemp
used
in
the
products
were
processed
and
cultivated
legally
in
another
state
or
jurisdiction
that
has
the
same
or
substantially
similar
requirements
for
processing
hemp
products
or
cultivating
hemp
as
provided
[this
Act].

Hemp
products
may
be
legally
transported
across
State
lines
and
exported
to
foreign
countries
in
a
manner
that
is
consistent
with
federal
law
and
the
laws
of
respective
foreign
countries.

New
Jersey
seems
to
be
saying
that
Hemp
CBD
products
are
allowed
in
the
state,
so
long
as
that
is
legal
under
local,
state,
and
federal
law.
That
may
mean
that
certain
Hemp
CBD
products
are
not
permitted
under
New
Jersey
law,
considering
that
the
FDA
has
repeatedly
stated
that
Hemp
CBD
cannot
be
marketed
as
a
drug
or
added
to
foods
or
dietary
supplements.

This
was
one
of
our
longer
posts
in
the
series,
but
it
seems
fitting
considering
that
New
Jersey
is
among
the
first
states
with
an
approved
hemp
plan.
Keep
an
eye
on
our
blog
for
further
developments
in
the
Garden
State.

For
previous
coverage
in
this
series,
check
out
the
links
below:

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