Global Cannabis Legislation & Policy

Sean Hocking

The Evolution of New Jersey’s Cannabis and Hemp Industries in 2026

By Brandon Kurtzman, Neil M. Wilner, Bridgette Nikisher

Feb 27, 2026

New Jersey’s cannabis and hemp industries are evolving significantly in 2026. Following legislation signed by Governor Phil Murphy in January 2026 (P.L. 2025 c. 325), several major shifts are impacting the cannabis and hemp landscape for operators and consumers in New Jersey. This post highlights four significant developments to pay attention to in the coming year

1. Expanded Retail Licensing

One of the most impactful changes is the expansion of retail license limits.

  • Previous Limit: Class 5 Cannabis Retailers were limited to a single retail dispensary location
  • New Limit: Starting April 20, 2026, Class 5 Cannabis Retailers may operate up to three locations, consisting of one main dispensary and two satellite locations

2. Targeted Enforcement Program

The state is developing an enforcement program for 2026 to target the illicit manufacture, distribution, or sale of cannabis and cannabis products. This initiative is a collaborative effort led by:

  • The Division of State Police
  • Local law enforcement
  • The Cannabis Regulatory Commission (CRC)

3. Intoxicating Hemp Product Restrictions

Prior to leaving office, Governor Phil Murphy also signed Senate Bill 4509 that redefines hemp to align with the definition in the 2026 Federal Appropriations Bill. Under the new definition, hemp excludes products that contain more than 0.4 mg total THC per container or include artificially or synthetically derived cannabinoids. However, the bill contains a carve-out for intoxicating hemp beverages, permitting CRC and ABC licensees to sell hemp beverages containing 5mg of THC per serving or 10mg THC per container. The bill also aligns intoxicating hemp beverages with alcoholic beverage regulation and will be regulated similar to wine and spirits.

Key Restrictions: 

  • Age Limit: Must be 21+ to purchase hemp products
  • Salse Restrictions: Online direct-to-consumer (DTC) sales are prohibited 

Implementation Timeline: 

  • January 13, 2026: The bill officially took effect
  • April 13, 2026: The “sell-through” transition period ends. Only CRC and ABC licensees may sell intoxicating hemp beverages (limited to 5 mg/serving or 10 mg/container). The hemp beverage excise tax also begins
  • November 13, 2026: ABC licensees (liquor stores) may no longer sell hemp beverages; sales are restricted to select CRC licensees

4. Cannabis Consumption Endorsements 

Class 5 Retailers and Medical Dispensaries can continue to apply for endorsements to operate on-premises consumption areas, similar to a bar setting. While the first New Jersey cannabis consumption lounges opened in August 2025, more are expected to open throughout 2026.

Application Requirements:  

The application requires municipal approval, and the submission of floor plans, business and operating plans (including ventilation), and Standard Operating Procedures (SOPs). SOPs must cover:

  • Safe consumption and age verification
  • Transfer of cannabis items and destruction of unused products
  • Efforts to ensure only regulated cannabis is brought into the consumption area
  • Emergency protocols

Municipalities may adopt local ordinances governing consumption areas, including limits on the number of consumption areas, and will have discretion to approve or deny an endorsement application.

Conclusion 

New Jersey’s cannabis and hemp industries are maturing and changing rapidly. Maintaining a comprehensive understanding of this landscape is crucial for staying compliant and taking advantage of new opportunities. Vicente LLP will continue to monitor these changes and is always happy to advise on any New Jersey cannabis or hemp issues.

https://vicentellp.com/insights/cannabis-hemp-regulatory-changes-in-new-jersey-for-2026/