The Path To New Jersey\’s Approval and Legalization of Industrial Hemp and CBD

In August 2019, lawmakers in the state of New Jersey passed a bill which set up licensing requirements for the growth and processing of industrial hemp. This bill is the New Jersey Assembly Bill 5322. Many states had begun the process of legalizing the production of hemp after the passage of the 2018 Farm Bill by December of that year. New Jersey was one of the first few states that had started the process and movement to legalize hemp after the bill\’s precursor, that of the 2014 Farm Bill. This first farm bill recognized the distinction between industrial hemp, where CBD is derived and cannabis.

The state of New Jersey passed the first bill regarding the legality of hemp in November 2018, the bill which is called NJ A1330. This bill enacted the same standard as that of the federal government, which required that the industrial hemp had to contain no more than 0.3% THC by weight. This bill also started a pilot program that was to become the replacement to the bill, known as NJ A5322.

This new statute legalized all forms of the hemp plant,including all of its derivatives, provided that the crops were legally grown and contained less than 0.3% THC. The growers and processors had to be licensed, and anyone not authorized to grow hemp were subject to penalties just as those who were caught growing the illegal part of the cannabis plant. The penalty is that three violations in five years would result in a ban from growing hemp for five more years.

In the event of intentional attempts to violate the law, the growers and producers would then be referred to state and federal law enforcement agencies. Hemp products, including CBD, can be transported out of and also within the state, provided that the CBD coming from outside of the state was derived from the industrial hemp mentioned here, and not from cannabis plants that contain more than the 0.3% THC limit. This plan was then submitted to the US Department of Agriculture, USDA, and received approval on February 22nd. The law NJ A5322 stated specifically that hemp may still be grown by individuals who comply with statutes at the federal level, even while awaiting approval by the USDA.