New Jersey’s THC Beverage Bill Could Reshape the National Hemp Market

How S4509 rewrites New Jersey’s hemp rules, opens a tightly regulated path for THC beverages in liquor stores, and positions the state ahead of a sweeping federal hemp crackdown.

In a high-stakes move poised to ripple far beyond its borders, New Jersey lawmakers are advancing legislation that could redefine who sells THC-infused beverages — and who gets shut out. Senate Bill 4509, a Senate committee substitute, promises to overhaul the state’s treatment of hemp-derived intoxicants just as a federal crackdown looms. If passed, it would grant liquor stores exclusive permission to sell low-dose hemp THC drinks, while forcing existing hemp shops into a steep regulatory climb — or a final liquidation.

The bill’s sponsors, Senate Majority Leader Teresa Ruiz and Senate President Nick Scutari, are pitching the measure as both cleanup and catch-up. It would repeal large portions of New Jersey’s first attempt at regulating intoxicating hemp — P.L. 2024, c.73 — which had drawn fire from retailers and sparked litigation. But the deeper purpose is alignment: with federal law, with a stricter definition of “hemp,” and with a vision of state-level cannabis control that consolidates all intoxicating cannabinoids under one regulatory roof.

For Arizona-based observers and brands like CIGAWEEDS, New Jersey’s effort offers a timely glimpse into how states are repositioning THC beverages amid federal reform, consumer demand, and shifting market alliances. In Arizona, THC drinks are boxed into licensed dispensaries. In New Jersey, they may soon line the shelves of your neighborhood liquor store — if they meet the 0.4 milligram cap set by Washington.

From Fiber to Firestorm: How We Got Here

Until the 2018 Farm Bill, hemp was federally lumped in with marijuana, its psychotropic cousin. That legislation cracked the door open by legalizing hemp with no more than 0.3% delta-9 THC by dry weight. States, including Arizona and New Jersey, jumped to cultivate CBD markets, experiment with industrial applications, and test the boundaries of what “non-intoxicating” really meant.

What followed was a regulatory gray zone. Chemists began converting CBD into delta-8, delta-10, and other psychoactive cannabinoids that weren’t explicitly banned. A wave of hemp-derived THC products — gummies, vapes, and most controversially, drinks — flooded smoke shops, gas stations, and even upscale grocers. It was legal weed without the license. Or so it seemed.

By 2024, backlash brewed. New Jersey passed S3235 (P.L. 2024, c.73) to crack down on “intoxicating hemp.” Sales to anyone under 21 were banned, and licensing was required. The enforcement was patchy, though, hampered by lawsuits like Loki Brands v. Platkin. Confusion reigned: Were these hemp products supplements? Cannabis? Unregulated hazards?

That ambiguity is what S4509 seeks to erase.

The New Proposal: Liquor Stores In, Hemp Shops Out

At its core, S4509 would task the New Jersey Cannabis Regulatory Commission (CRC) with crafting a new licensing structure — one that allows businesses already licensed by the Division of Alcoholic Beverage Control (ABC) to sell hemp-derived THC beverages. The CRC, not the ABC, would oversee these products, adding cannabis-grade oversight to retail settings usually stocked with beer and vodka.

Liquor licensees already selling hemp beverages would have a 120-day grace period to comply once the CRC finalizes its rules. After that, it’s license up or get out. For hemp retailers, the timeline is harsher: spring 2026 is their hard stop for current inventory, with no path forward unless they partner with a liquor licensee or win CRC approval.

The bill explicitly redefines “hemp” to exclude any product with more than 0.4 milligrams of THC per container or containing synthetic cannabinoids. Those items — essentially all current high-dose hemp drinks — would be reclassified as marijuana. The aim? Match a newly enacted federal cap that goes into effect November 2026 and is expected to eliminate most intoxicating hemp products nationwide.

Supporters of S4509, including CRC Acting Executive Director Chris Riggs, argue the bill closes dangerous loopholes and puts all intoxicants under a single system. Opponents, like Cantrip CEO Adam Terry, say it’s a rushed power grab that favors big liquor and licensed cannabis firms at the expense of small hemp businesses.

Winners, Losers, and the Coming Shakeout

The CRC stands to gain broader jurisdiction, now encompassing liquor stores in addition to licensed cannabis dispensaries. This would allow for unified rules on testing, packaging, and youth access across all intoxicating cannabinoids — a long-sought goal of cannabis regulators.

Liquor licensees gain a new product line, assuming they’re willing to comply with cannabis-style rules and taxes. It’s a financial opportunity but also a regulatory wrinkle: they’ll be answerable to two state agencies now.

Hemp retailers face the most existential threat. Many aren’t positioned to meet CRC standards or absorb new excise fees: $30 on transfers and $5.50 per gallon of beverage, earmarked for social equity programs. For small shops already operating on slim margins, the new regime may amount to a slow execution — or a buyout invitation from better-capitalized players.

Licensed cannabis operators, by contrast, largely welcome the shakeup. For years, they’ve watched unlicensed hemp shops siphon sales with lower taxes and fewer restrictions. Now, hemp intoxicants will either compete on a level playing field — or vanish.

Meanwhile, public health advocates have found something to like. Age limits, dosage caps, and the CRC’s oversight might curb youth access and cross-intoxication risks — especially if hemp beverages are sold next to alcohol. Yet concerns remain: does pairing THC with alcohol in retail settings normalize or discourage safer consumption?

Arizona’s Cautionary Tale

Arizona, where CIGAWEEDS is rooted, offers a sharp counterpoint. Here, THC beverages are considered marijuana products, no matter their origin or dosage. Under Proposition 207 and Attorney General guidance, these drinks can only be sold in licensed dispensaries. Starting in April 2025, law enforcement began cracking down on non-compliant retailers.

For some, Arizona’s model prioritizes public safety and clear boundaries. For others, it’s a missed opportunity to meet consumers where they already shop — like at liquor stores or wellness markets. As New Jersey flirts with a hybrid model, Arizona’s no-nonsense approach shows what happens when THC drinks are treated as cannabis first, commerce second.

New Jersey’s liquor-store strategy could be seen as a middle path. But only if it balances access with accountability — and only if it survives the inevitable lawsuits.

Timing, Transparency, and What Comes Next

The bill passed out of committee December 15. The companion Assembly bill, A4461, is expected to move soon. If signed, the CRC will begin rulemaking, a process that could take months.

Critics, especially from the hemp industry, point to procedural red flags. The committee voted on the bill before its final text was released publicly. Compliance deadlines are short. The fate of non-beverage hemp products is unclear. Legal challenges are almost certain.

At the national level, Congress’s decision to impose a 0.4 milligram THC cap by November 2026 means this isn’t just about New Jersey. States must choose: regulate, restrict, or retreat from hemp intoxicants. Texas, after beating back a statewide hemp ban, now faces the same deadline. Other states are scrambling to write rules before the clock runs out.

For brands, retailers, and consumers, 2026 isn’t just a deadline. It’s a reckoning.

Why It Matters for CIGAWEEDS and Arizona

CIGAWEEDS has long pushed for clarity in cannabis policy — not just to protect consumers, but to ensure equity in who gets to participate. As intoxicating hemp straddles cannabis and consumer goods, states like New Jersey are experimenting with regulatory hybrids. That makes the comparison to Arizona’s dispensary-only approach not just academic but strategic.

In Arizona, brands like CIGAWEEDS know the rules, even if they’re strict. In New Jersey, the rules are changing fast — and not everyone will survive the shuffle.

What happens in New Jersey may shape how other states — or Congress — regulate this fast-evolving market. For now, one truth remains: intoxicating cannabinoids are no longer flying under the radar. The only question is who gets to sell them — and who gets left behind.

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