4:28-11 Inapplicability of act; exceptions.

6. a. Except as otherwise provided, P.L.2019, c.238 (C.4:28-6 et al.) does not apply to the possession, transportation, or sale of hemp products or extracts, including those containing one or more hemp-derived cannabinoids, including cannabidiol.

b. In adopting rules and regulations pursuant to P.L.2019, c.238 (C.4:28-6 et al.), the department may consult with relevant public agencies as well as private, nonprofit associations in the hemp industry that promote standards, best practices, and self-regulation in the production of hemp.

c. In addition to the rules and regulations required for a state plan consistent with the requirements of 7 U.S.C. s.1639o et seq. and section 5 of P.L.2019, c.238 (C.4:28-10), no later than 90 days after the effective date of P.L.2019, c.238 (C.4:28-6 et al.) and notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the department, after consultation with the Governor and Attorney General, shall immediately upon filing proper notice with the Office of Administrative Law, adopt interim rules and regulations to promote the cultivating and processing of hemp and the commercial sale of hemp products, while regulating hemp production in the State pursuant to 7 U.S.C. s.1639o et seq. and P.L.2019, c.238 (C.4:28-6 et al.). The rules and regulations shall be effective immediately upon filing with the Office of Administrative Law and shall be in effect for a period not to exceed 18 months, and shall, thereafter, be amended, adopted, or readopted by the department in accordance with the provisions of the "Administrative Procedure Act." The rules and regulations shall:

(1) establish requirements by which the department authorizes an applicant to be a hemp producer to cultivate, handle, or process or any combination thereof, hemp;

(2) provide due process, including an appeal process with retesting, to ensure that hemp producers are not subject to the consequences of inaccurate test results;

(3) establish procedures for the department, not more than 30 days after receiving and compiling the following information, to provide the information to the United States Secretary of Agriculture: (a) the hemp producer's name, telephone number, email address, residential address, mailing address, or another form of contact information; (b) the legal description and global positioning system coordinates for each field, facility, or other place where hemp is to be cultivated, processed, or handled; and (c) whether the hemp producer is in compliance with the rules and regulations for the production of hemp in the State. The department shall provide updates to this information as needed;

(4) establish non-refundable application, licensure, and renewal fees in amounts that are reasonable and necessary to cover the costs of administering and enforcing the State hemp program, which shall be deposited in the State hemp program account pursuant to section 8 of P.L.2019, c.238 (C.4:28-13); and

(5) establish procedures governing hemp shipment within the State and across state lines by third-party transporters who are not authorized hemp producers. The regulations shall include a requirement that all shipments need only be accompanied by a proof of authorization to engage in the commercial sale of hemp, either under a state plan pursuant to 7 U.S.C. s.1639p or the United States Department of Agriculture plan pursuant to 7 U.S.C. 1639q in a state where a state plan has not been approved from the producer of hemp, as well as a travel manifest that lists the origin, destination, product description, and date of transport. In no case shall the department require third-party carriers to be authorized hemp producers in order to transport hemp.

d. Except as provided by section 9 of P.L.2019, c.238 (C.24:5-23), a person or business entity may not cultivate, handle, or process hemp, or cause an agent to cultivate, handle or process, in this State or transport, or cause an agent to transport, hemp outside of this State unless that person or business entity is authorized by the department to participate in the State hemp program as a hemp producer. All applicants must apply to the department on a form and in the manner prescribed by the department as described in P.L.2019, c.238 (C.4:28-6 et al.). Upon approval of the State plan by the United States Department of Agriculture, the department shall begin authorizing participation in the State hemp program established pursuant to P.L.2019, c.238 (C.4:28-6 et al.).

(1) In addition to any other information deemed necessary by the department, an application shall include:

(a) a legal description and the global positioning system coordinates for each location where an applicant intends to cultivate or process hemp;

(b) written consent allowing the department, the Department of Law and Public Safety, and any other State or local law enforcement agency to enter onto all premises where hemp is cultivated, handled, or processed to conduct a physical inspection or to ensure compliance with P.L.2019, c.238 (C.4:28-6 et al.) and rules and regulations adopted pursuant thereto;

(c) the payment of any fees required by the department;

(d) a criminal history record background check on all applicants at the applicant's expense; and

(e) any other information required pursuant to rules and regulations adopted by the department.

(2) If the department determines that an applicant meets the State hemp program participation requirements, the department shall authorize the applicant to participate in the program as a hemp producer.

(3) An applicant who materially falsifies any information contained in an application submitted to the department may not participate in the State hemp program as a hemp producer.

L.2019, c.238, s.6.