Sampling & Trade Samples Reform.

Sampling & Product Development Reform

New Jersey’s current regulatory framework outlines how cannabis products may be processed, packaged, labeled, tested, and released for distribution under N.J.A.C. 17:30-11.9, which was updated in 2023 to clarify references and strengthen packaging and release requirements.

While the rule clearly governs how products can be released for distribution to another cannabis business, it does not establish a pathway for manufacturers to conduct internal sampling, internal product development evaluation, or trade samples for CRC-badged professionals.

As a result, New Jersey remains one of the only regulated markets where licensed manufacturers cannot legally evaluate their own products for quality, innovation, or retail education — leading to unnecessary operational barriers, especially for small and equity operators.

This subpage outlines a safe, responsible, and trackable proposal for allowing internal samples and trade samples while remaining consistent with 17:30-11.9, 17:30-16.2, and 17:30-16.3.

The Rules:

N.J.A.C. 17:30-11.9 (updated March 6, 2023)

(a) Cannabis manufacturers must place a legible, permanently affixed label (per 17:30-16.3) on each finished cannabis product package.

(b) A cannabis manufacturer may only release for distribution and transfer products to another cannabis businessafter they have been:

• properly processed

• tested

• packaged

• sealed

• labeled
  in accordance with 17:30-16.2 and 17:30-16.3.

Key point:
The rule governs how products must be prepared before distribution, but does not authorize or prohibit internal samples, internal R&D, or trade samples.

This is the regulatory gap I am addressing.

(N.J.A.C. 17:30-11.9(b)):

Licensed manufacturers and cultivators may only transfer products to other licensed businesses.
The regulation does not allow:

• Internal staff samples

• Internal product development samples

• Trade samples for retailer education

This prevents operators from:

• Testing new formulations

• Training budtenders

• Performing taste/texture QC checks

• Advancing innovation

• Improving product consistency

PROPOSED AMENDMENT

Proposed Addition to N.J.A.C. 17:30-11.9: Internal & Trade Sampling Pathway

Allow cannabis manufacturers and cultivators to transfer cannabis products, in limited quantities, to CRC-badged internal staff or CRC-badged individuals for the purposes of: internal quality control sampling, product development evaluation, sensory/organoleptic testing, and trade samples for retailer education — provided that all products remain in the custody of CRC-badged individuals and are recorded in the ATC inventory system.

This proposal does not conflict with 17:30-11.9(a)–(b) because:

• It does not involve releasing product “for distribution”

• It does not involve transfer to unrelated cannabis businesses

• It occurs internally or within CRC-badged, trackable individuals

RATIONALE FOR CHANGE 

Supports Product Safety

Internal sampling is essential for:

• taste

• flavor consistency

• emulsion performance

• mouthfeel

• stability verification

These are food-science and safety essentials in every food manufacturing category.

Advances Innovation

Manufacturers cannot create or refine SKUs without permitted R&D sampling.

Enhances Label Accuracy (17:30-16.3 Compliance)

You cannot guarantee label accuracy without sampling.

Equity-Forward

Small operators cannot innovate or compete without internal evaluation.