New Jersey Gov. Phil Murphy (D) on Thursday signed into law a bill to establish regulations for hemp-derived, intoxicating cannabinoid products, the Asbury Park Press reports.

While adult-use Cannabis is legal in New Jersey, hemp products like delta-8 THC-infused seltzers — which are technically legal at the federal level because they are made from industrial hemp — have until now been sold outside of the regulated Cannabis market, primarily at gas stations and in liquor stores, despite having very similar intoxicating effects.

However, under the new law, intoxicating hemp products will fall under the purview of the New Jersey Cannabis Regulatory Commission, which will be charged with regulating products made with hemp-derived delta-8 THC and other intoxicating cannabinoids. The new rules will also cover product testing and labeling standards.

“These products are sold outside of the regulated market for Cannabis even though they can have similar effects, may contain harmful chemicals and other contaminants, and often are sold without appropriate testing and labeling. Too frequently, these products are readily available to minors. The status quo is untenable and this bill will put an end to it.” — Murphy, in a statement

Cannabis regulators have 180 days to craft the regulations but in the meantime, the sale and production of hemp-derived intoxicating products must cease. Philip Petracca, owner of Bella Ray Beverage, a THC seltzer startup, said in the report that the policy change might target a few bad actors but is also detrimental to lawful business owners.

“We are good actors. We followed the process the state put forward to enter this business. They’ve required us to get expensive warehouse space. We followed the state’s process. We made all the investments, like they asked. And here we are,” Petracca said in the report. “For us, it’s economically devastating.”

Asbury Park Press reported earlier this year that THC seltzers accounted for 10-15% of total liquor store sales in New Jersey.

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