4:28-12 Violations, penalties.

7. a. If the department determines that a hemp producer negligently violated P.L.2019, c.238 (C.4:28-6 et al.) or any rule or regulation adopted pursuant thereto, the department shall enforce the violation in the manner provided by 7 U.S.C. s.1639p:

(1) The hemp producer shall not be subject to a civil or criminal penalty under subsection a. of this section. A hemp producer shall be required to implement a corrective action plan if the department determines that the person or business entity negligently violated State hemp laws or regulations, including by negligently:

(a) Failing to disclose, or provide required information about, a site where hemp is cultivated, handled, or processed;

(b) Failing to obtain a necessary license from the department or a necessary authorization from the State or a federal agency other than those required to be a hemp producer; or

(c) Producing Cannabis sativa L. with more than the federally defined THC level for hemp.

(2) A corrective action plan required pursuant to paragraph (1) of this subsection shall include:

(a) A reasonable date by which a hemp producer shall correct the negligent violation; (b) A requirement for periodic reports from the hemp producer to the department about the hemp producer's compliance with the corrective action plan, statutes, and any rules or regulations adopted pursuant thereto, for a period of at least two years from the date of the corrective action plan; and

(c) any other measure that the department determines necessary to ensure that the hemp producer complies with the corrective action plan.

(3) A hemp producer that negligently violates any law, or any rule or regulation adopted pursuant thereto, governing that person's or business entity's participation in the hemp program shall not be subject to a criminal or civil enforcement action by the State or a local government other than an enforcement action authorized pursuant to this section; provided that the department may adopt rules and regulations establishing measures to ensure compliance with a corrective action plan required pursuant to paragraph (1) of this subsection.

(4) A person or business entity found by the department to have negligently violated any law, or rule or regulation governing the person's or business entity's participation in the hemp program three times in a five-year period shall be ineligible to participate in the State hemp program as a hemp producer for a period of five years beginning on the date of the third violation.

b. If the department determines that a hemp producer has violated P.L.2019, c.238 (C.4:28-6 et al.) or a rule or regulation adopted pursuant thereto with a culpable mental state greater than negligence, subsection a. of this section shall not apply and the department shall report the hemp producer immediately to the United States Attorney General and the Attorney General of the State, who may, on behalf of the department, investigate the violation and institute proceedings for injunctive or other appropriate relief including civil or civil administrative penalties,or report the matter to an appropriate law enforcement agency.

c. In addition to the rules and regulations adopted pursuant to sections 5 and 6 of P.L.2019, c.238 (C.4:28-10 and C.4:28-11), 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 consulting with the Governor and the Attorney General, shall immediately upon filing proper notice with the Office of Administrative Law, adopt interim rules and regulations establishing a schedule of civil and civil administrative penalties for violations of P.L.2019, c.238 (C.4:28-6 et al.) or a rule or regulation adopted pursuant thereto that do not conflict with 7 U.S.C. s.1639o et seq. or P.L.2019, c.238 (C.4:28-6 et al.), and provide notice and appeals processes for hemp producers. The regulations shall be effective as regulations 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." Any penalty collected pursuant to P.L.2019, c.238 (C.4:28-6 et al.) shall be deposited in the "New Jersey Hemp Farming Fund" established pursuant to section 8 of P.L.2019, c.238 (C.4:28-13).

d. A person who is or has been convicted of an offense relating to a controlled substance under State or federal law may not participate in the State hemp program established pursuant to P.L.2019, c.238 (C.4:28-6 et al.) or produce hemp in the State under any other law for a period of at least 10 years following the date of the person's conviction. This prohibition shall not apply to any person growing hemp lawfully with a license, registration, or authorization under a program authorized pursuant to 7 U.S.C. s.5940 before the date of enactment of P.L.2019, c.238 (C.4:28-6 et al.).

L.2019, c.238, s.7.