[12-14-2021 by Ord. No.
O-33-2021]
This chapter is enacted to regulate cannabis businesses and
medical dispensaries in the Town of Morristown in accordance with
the provisions of an Act of Legislature of the State of New Jersey
entitled "Jake Honig Compassionate Use Medical Cannabis Act" (N.J.S.A.
24:6I-1 et seq.) and the "New Jersey Cannabis Regulatory, Enforcement
Assistance and Marketplace Modernization Act" (N.J.S.A. 24: 6I-31
et seq.) and in accordance with the rules and regulations of the Cannabis
Regulatory Commission.
As used in this chapter, the following terms shall have the
meanings indicated:
The same meaning as contained in P.L. 2021, c. 16 (N.J.S.A.
24:6I-31 et seq.). "Cannabis" does not include medical cannabis dispensed
to registered and qualifying patients pursuant to the Jake Honig Compassionate
Use Medical Cannabis Act, P.L. 2009, c. 307, (N.J.S.A. 24:6I-1 et
seq.) and P.L. 2015, c. 158 (N.J.S.A. 18A:40-12.22 et seq.)
Shall have a Class 6 delivery license issued by the Cannabis
Regulatory Commission for the premises from which the cannabis delivery
service will conduct operations to provide courier services for consumer
purchases of cannabis items and related supplies fulfilled by a cannabis
retailer in order to make deliveries of the cannabis items and related
supplies to that consumer and which services include the ability of
a consumer to purchase the cannabis items directly through the cannabis
delivery service which after presenting the purchase order to the
cannabis retailer for fulfillment, is delivered to that consumer.
Any Class 5 licensed person or entity that purchases or otherwise
obtains usable cannabis from cannabis cultivators and cannabis items
from cannabis manufacturers or cannabis wholesalers, and sells these
to the consumers from a retail store, and may use a cannabis delivery
service or a certified cannabis handler for the off-premises delivery
of cannabis items and related supplies to consumers. A cannabis retailer
shall also accept consumer purchases to be fulfilled from its retail
store that are presented by a cannabis delivery service which will
be delivered by the cannabis delivery service to that consumer. This
person or entity shall hold a Class 5 cannabis retail license.
Cannabis dispensed to registered qualifying patients pursuant
to the Jake Honig Compassionate Use Medical Cannabis Act, P.L. 2009,
c. 307 (N.J.S.A. 24:6I-1 et seq.) and P.L. 2015, c. 158 (N.J.S.A.
18A:40-12.22 et seq.). "Medical cannabis" does not include any cannabis
or cannabis item which is cultivated, produced, processed and consumed
in accordance with P.L. 2021, c. 16 (N.J.S.A. 24:6I-31 et seq.).
A business entity, which shall include clinical registrants,
that is authorized by the State of New Jersey to possess, display,
deliver, transfer, transport, distribute, supply, sell, and dispense
medical cannabis, medical cannabis products, paraphernalia, and related
supplies to qualifying patients, designated caregivers and institutional
caregivers pursuant to written instructions issued by a health care
practitioner pursuant to the requirements of P.L. 2009, c. 307 (N.J.S.A.
24:6I-1 et seq.). The term shall include the act of furnishing medical
cannabis to a medical cannabis handler for delivery to a registered
qualifying patient. A medical cannabis dispensary license shall not
authorize the license holder to cultivate medical cannabis, to produce,
manufacture or otherwise create medical cannabis products. An expanded
medical cannabis dispensary with a personal use cannabis retail license
shall only be permitted if approved by the Commission pursuant to
N.J.S.A. 24:6I-46.
[12-14-2021 by Ord. No.
O-33-2021]
The regulations of this chapter are subject to the enabling
authority of the State of New Jersey and are subject to compliance
with all statutes and/or regulations adopted by the State of New Jersey
or its instrumentalities, including the Cannabis Regulatory Commission.
If any provision of this chapter is inconsistent with state statutes
and/or regulations, the state statutes and/or regulations shall prevail.
A Town Cannabis Advisory Board (CAB) as appointed below will act as
the body for local review for the Town for all cannabis establishments
but the authority and responsibility to activate, suspend and revoke
such licenses remains with the Town Council. Under all circumstances
under which state law requires communication to the Town by the Cannabis
Regulatory Commission or any other state agency with regard to the
licensing of cannabis establishments by the state or in which state
law requires any review or approval by the Town of any action taken
by the state licensing authority, the exclusive authority for receiving
such communications and granting such approvals shall be communicated
through the Town Clerk's office upon recommendation by the Town
Cannabis Advisory Board and as authorized by the Town governing body.
a.Â
Members of Cannabis Advisory Board (the "CAB").
2.Â
The Board shall be supported by the Town Attorney and the Town Planning
and Zoning office. The Board may request additional resources as necessary
to effectuate the responsibilities of the Board.
3.Â
No member of the Board may hold interest in or be related to an applicant.
4.Â
The CAB is hereby designated to act as the local licensing application
review board for the Town for all medical cannabis dispensaries, medical
cannabis dispensaries with personal use cannabis retail if approved
by the Commission and/or Class 5 licensed retail businesses. Under
all circumstances in which state law requires communication to the
Town by the state licensing authority or any other state agency with
regard to the licensing of medical cannabis dispensaries or medical
cannabis dispensaries with personal use cannabis retail if approved
by the Commission and/or Class 5 licensed retail business by the state,
or in which state law requires any review or approval by the Town
of any action taken by the state licensing authority, the exclusive
authority for receiving such communications shall be the Town Clerk's
office upon recommendation of the Town Cannabis Advisory Board and
granting such approvals shall be exercised by the Town governing body.
5.Â
Under no circumstance shall a local license for a medical cannabis
dispensary, medical cannabis dispensary with personal use cannabis
retail if approved by the Commission and/or Class 5 licensed retail
business issued by the CAB be effective until or unless the state
has issued the requisite licenses to operate such a facility. It is
the intent of this chapter that no medical cannabis dispensary, medical
cannabis dispensary with personal use cannabis retail or Class 5 licensed
retail business may lawfully exist in the Town without the issuance
of a state license and full regulatory oversight of the cannabis establishment
by the state licensing authority as well as oversight and issuance
of a license by the Town.
b.Â
Classification of License. The Town of Morristown, subject to land
use approval and state licensure, may issue a municipal license to
operate a medical cannabis dispensary, medical cannabis dispensary
with personal use cannabis or Class 5 licensed retail establishment
if approved by the governing body.
c.Â
Maximum Number of Licenses. The Town may issue no more than a total
of two licenses as follows: for a medical cannabis dispensary or an
expanded medical cannabis dispensary with personal use cannabis retail
if approved by the Commission or a Class 5 licensed retail cannabis
business. Any license issued by the Town is contingent upon the locally
licensed entity or individual being the recipient of a state license
of the same class or type of regulated cannabis activity. Possession
of a state license shall be a prerequisite to a Town license becoming
effective.
d.Â
Application.
1.Â
Only persons or entities licensed by the State of New Jersey Cannabis
Regulatory Commission to operate a medical cannabis dispensary, medical
cannabis dispensary with personal use cannabis retail if approved
by the Commission or Class 5 licensed retail business may make application
to operate in Town. All licensees shall operate at all times in complete
compliance with the terms and conditions of their state and local
license, as well as any other applicable section of the Town Code
and/or state law.
2.Â
Morristown encourages and promotes the participation of minority,
women and disabled veteran owned businesses in the personal use cannabis
business in the Town. Applicants from the statutorily designated target
communities as determined by the Cannabis Regulatory Commission shall
receive priority review and approval in the application process pursuant
to N.J.S.A. 24:6I-35a(3) and (4) which requires the Cannabis Regulatory
Commission to adopt rules and regulations that shall make licenses
available to as diverse a group as reasonably practicable. If multiple
applications are submitted, the CAB will give preference to women,
minority and disabled-veteran-owned businesses prior to considering
the competitive process as established herein and pursuant to established
statutory law and regulations.
3.Â
Any persons wishing to obtain a license to operate a medical cannabis
dispensary, medical dispensary with personal use cannabis retail if
approved by the Commission or Class 5 licensed retail business shall
file a license application with the CAB, on a standardized form established
by the CAB and available in the Town Clerk's office. The CAB
shall establish a reasonable application period and deadline for all
applications. An application shall be deemed incomplete, and shall
not be processed by the CAB, until all documents and application fees
are submitted. To be deemed complete, all applications shall be accompanied
by the following:
(a)Â
The applicant shall submit proof that the applicant has or will have
lawful possession of the premises proposed for the medical cannabis
dispensary, medical dispensary with personal use cannabis retail if
approved by the Commission or Class 5 licensed retail business, which
proof may consist of: a deed, a lease, a real estate contract contingent
upon successful licensing, or a binding letter of intent by the owner
of the premises indicating an intent to lease the premises to the
entrant contingent upon successful licensing.
(b)Â
The applicant shall submit an affidavit and documentary proof of
compliance with all state and local laws regarding affirmative action,
antidiscrimination and fair employment practices. The applicant shall
also certify under oath that they will not and shall not discriminate
based on race, color, religion (creed), gender, gender expression,
age, national origin (ancestry), disability, marital status, sexual
orientation, or military status, in any of its activities or operations.
(c)Â
The location proposed for licensing by the applicant shall comply with all applicable Town zoning laws and the location restrictions set forth in this chapter and Chapter 30, Land Development.
(d)Â
The applicant shall submit, to the satisfaction of the CAB, proof
of financial capability to open and operate the marijuana establishment
for which the applicant is seeking a license. Standards for proof
of financial capability shall be determined by the CAB.
(e)Â
The applicant shall submit a nonrefundable application fee in the
amount of $2,500 per application filed. The annual renewal fee for
the license shall be $2,000.
(f)Â
In addition to complying with any state requirement related to good
character and criminal background, any person proposed to have an
ownership interest in the license shall not have had any cannabis
license or permit revoked for a violation affecting public safety
in the State of New Jersey or a subdivision thereof within the preceding
five years.
(g)Â
The applicant and the application shall otherwise comply with any
and all qualification standards set forth in the state and Town laws
or regulations.
(h)Â
In the event there are multiple applicants for a license, the CAB
shall evaluate all applicants and issue a notification of award after
consideration and evaluation of the following criteria:
(1)Â
Applicant's owners' or principals' qualifications
and experience operating in highly regulated industries, including
cannabis, health care, and retail pharmacies, with preference to experience
operating such businesses within the State of New Jersey and where
the value of owners' experience shall outweigh the experience
of nonowner principals (25%);
(2)Â
Applicant's qualifications and experience related to public
safety and security, including any of the applicant's owners'
or principals' experience in law enforcement with preference
to such experience in the County of Morris, and applicant's plans
for storage of products and currency, physical security, video surveillance,
security personnel, and visitor management (10%);
(3)Â
Applicant's or its owners' experience conducting or
supporting or plans to conduct institutional review board-approved
research involving human subjects that is related to medical cannabis
or substance abuse, where the value of past or ongoing clinical research
with IRB approval shall outweigh plans to conduct such research (15%);
(4)Â
Applicant's or its owners' demonstrated sufficient
experience as responsible employers, defined as operating businesses
that are parties to collective bargaining agreements in the regulated
cannabis industry for at least six months' prior to application
for such permit, in an effort to create well-paying jobs with employee
benefits in the municipality (20%);
(5)Â
Applicant's experience with banking in the regulated cannabis
industry in accordance with federal FinCEN guidance regarding marijuana-related
businesses, which shall include a letter from one or more financial
institutions stating such institution is aware of applicant's
business activities in regulated cannabis (10%);
(6)Â
Applicant's environmental impact and sustainability plan
(10%); and
(7)Â
Applicant's demonstrated commitment to diversity in its
ownership composition and hiring practices and whether it holds certifications
as a NJ minority-owned, women-owned, or veteran-owned business (10%).
(i)Â
Notwithstanding the foregoing competitive application process, a
notification of award shall entitle the recipient applicant to pursue
a state permit for up to 12 months, which may be extended in the CAB's
discretion for an additional six months if good cause is shown. No
license shall be issued until the applicant has received a state permit
and satisfied other prerequisites of municipal licensure. If the recipient
of a notice of award has not received a state permit within 12 months
from issuance, unless extended for good cause, the CAB shall initiate
a new application process and evaluate all applicants under the above
criteria.
e.Â
Term of License and License Renewals.
1.Â
Any local license issued pursuant to this chapter shall be valid
for a period of one year from the date of issuance, and shall have
an annually renewal fee of $2,000, subject to the provisions of this
chapter.
2.Â
The CAB may, at its discretion, adjust the renewal date of the local
license to correlate with an applicant's state licensing and
renewal schedule.
3.Â
The CAB may, at its discretion, adjust the renewal date of the local
license to correlate with an applicant's state licensing and
renewal schedule.
4.Â
Renewal of any license shall be governed by any Code amendments,
additional restrictions or changes in regulations adopted since the
previous license was issued or renewed.
5.Â
Transfer of ownership of a medical cannabis dispensary or Class 5
retail cannabis license, change of location, or modification to expand
a licensed premise shall be treated as a new application.
6.Â
If the licensee has received notice of violation of any law or regulation,
including disciplinary action against any past or current cannabis
license, the application for renewal shall include a copy of the notice
of disciplinary action with their application.
7.Â
Except where the CAB has received a complete renewal application
along with the requisite fees, and the Town Council has issued a license
renewal, it shall be unlawful for any person to manufacture, sell,
distribute, transfer, transport, or otherwise remove cannabis or cannabis
products from the premises of any licensed medical cannabis dispensary
or Class 5 licensed retail business after the expiration date recorded
on the face of the license.
[12-14-2021 by Ord. No.
O-33-2021]
a.Â
Disciplinary Actions. Procedures for investigation of license violations
and for suspension, revocation, or other licensing sanctions as a
result of any such violation shall be as follows:
b.Â
Summary Suspension. Notwithstanding the foregoing section, when the
CAB has reasonable grounds to believe that a licensee has engaged
in deliberate and willful violation of any applicable law or regulation,
or that the public health, safety, and/or general welfare has been
jeopardized and requires emergency action, the CAB may recommend to
the Town governing body that they enter a summary suspension order
for the immediate suspension of such license pending further investigation.
1.Â
The summary suspension order shall be in writing and shall state
the reasons therefor. The licensee shall be afforded an opportunity
for a hearing as outlined herein.
2.Â
The CAB shall convene a review panel consisting of the Business Administrator,
a second administrative officer designated by the Mayor, and the Chief
of Police. The hearing shall be scheduled within 30 days of the date
of the order.
3.Â
The review panel is authorized to impose any fines, conditions, restrictions,
suspensions, or combination thereof authorized by the State of New
Jersey. In the absence of state-specified penalties, the Town may
issue fines up to, but not to exceed, $2,500 per offense and/or suspension
of license for a period not to exceed six months.
c.Â
Inactive Licenses. Following the commencement of retail sales of
cannabis or cannabis products at a licensed medical cannabis dispensary
or Class 5 licensed cannabis retail business, the CAB may suspend
or revoke any license if the licensed premises has been inactive or
unoccupied by the licensee for at least six months.
d.Â
State License. The CAB may recommend to the Town Council that it
suspend or revoke any license if the corresponding state license or
permit for the subject location is expired, surrendered, suspended,
or revoked.
[12-14-2021 by Ord. No.
O-33-2021]
a.Â
Any applicant aggrieved by the denial of a local license as provided in § 24-3 or any licensee subject to any disciplinary action as provided in § 24-4 shall have the right of appeal to the governing body within 10 days after the written notice of the action taken has been mailed to the applicant or licensee. Applicant or licensee shall provide a written statement to the Town Clerk setting forth fully the grounds for the appeal and requesting a hearing before the governing body. The governing body shall set a time and place for hearing on such appeal, and notice of the hearing shall be sent by registered mail to the applicant or licensee at their address on file with the Town at least 10 days' prior to the date set for the hearing. The decision of the governing body on such appeal shall be final and conclusive.
[12-14-2021 by Ord. No.
O-33-2021]
a.Â
The cannabis transfer tax in the Town shall be fixed at a uniform
percentage rate of 2% on all sales or transfers of cannabis products
from any of the cannabis establishments that are located within the
geographical boundaries of the Town. This tax shall be imposed on:
1.Â
Receipts from the sale of cannabis by a cannabis cultivator to another
cannabis cultivator;
2.Â
Receipts from the sale of cannabis items from one cannabis establishment
to another cannabis establishment;
3.Â
Receipts from the retail sales of cannabis items by a cannabis retailer
to retail consumers who are 21 years of age or older; or any combination
thereof.
b.Â
A 1% transfer tax shall be collected from receipts from each sale
by a cannabis wholesaler located within the geographical boundaries
of the Town.
c.Â
A user tax is hereby also established at the same rate of the transfer tax as contained herein and shall be imposed on the value of each transfer or use of cannabis or cannabis items not otherwise subject to the transfer tax imposed pursuant to Subsection a, from the license holder's establishment that is located in the Town to any of the other license holder's establishments, whether located in the Town or another municipality.
d.Â
The transfer tax or user tax imposed by this chapter shall be in
addition to any other tax imposed by law. Any transaction for which
the transfer tax or user tax is imposed, or could be imposed pursuant
to this section, other than those which generate receipts from the
retail sales by cannabis retailers, shall be exempt from the tax imposed
under the Sales and Use Tax Act (N.J.S.A. 54:32B-1 et seq.). The transfer
tax or user tax will be assessed and collected pursuant to established
state law and administrative rules and regulations adopted regarding
same.
[12-14-2021 by Ord. No.
O-33-2021]
a.Â
There is hereby established a medical cannabis transfer tax in the
Town of Morristown which shall be fixed at a uniform percentage rate
of 2% on the purchase price of any medical cannabis dispensed by a
medical cannabis dispensary in the Town, including medical cannabis
that is furnished by the dispensary to a medical cannabis handler
for delivery to a registered qualifying patient or the patient's
caregiver and which shall be in addition to any other tax or fee imposed
pursuant to statute or local ordinance or resolution by any governmental
entity upon the dispensary.
