[HISTORY: Adopted by the Township Council of the Township of Parsippany-Troy Hills 7-20-2021 by Ord. No. 2021:14. Amendments noted where applicable.]
Editor's Note: This ordinance was adopted as Ch. 77 but was renumbered to maintain the alphabetical organization of the Code.
This chapter is authorized pursuant to the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act, P.L. 2021, c. 016, and the implementing regulations promulgated by the Cannabis Regulatory Commission (collectively, the "Act"), which are hereby incorporated herein by reference, and shall be controlling unless more restrictive standards are prescribed herein. If any provision of this chapter is inconsistent with the statutes and/or regulations of the State of New Jersey, the Act shall govern.
For the purposes of this chapter, all terms shall be defined consistent with the Act. The following terms shall have the meanings indicated:
- CANNABIS DISTRIBUTOR
- Any state-regulated person or entity that transports cannabis in bulk intrastate from one licensed cannabis cultivator to another licensed cannabis cultivator, or transports cannabis items in bulk intrastate from one class of licensed cannabis establishment to another class of licensed cannabis establishment, and may engage in the temporary storage of cannabis or cannabis items as necessary to carry out transportation activities. This person or entity shall hold a Class 4 cannabis distributor license issued by the CRC or other entity with regulatory jurisdiction over adult-use cannabis.
- CANNABIS ESTABLISHMENT
- Any state-regulated cannabis wholesaler or cannabis distributor.
- CANNABIS WHOLESALER
- Any state-regulated person or entity that purchases or otherwise obtains, stores, sells or otherwise transfers, and may transport, cannabis items for the purpose of resale or other transfer to either another cannabis wholesaler or to a cannabis retailer, but not to consumers. This person or entity shall hold a Class 3 cannabis wholesaler license issued by the CRC or other entity with regulatory jurisdiction over adult-use cannabis.
- PERMITTING AUTHORITY
- The Cannabis Regulatory Commission ("CRC"), established pursuant to Section 31 of P.L. 2019, c. 307 (N.J.S.A. 24:6I-24) or other entity with regulatory jurisdiction over adult-use cannabis.
A local license shall be required to operate a cannabis establishment in the Township. The Township Clerk is hereby designated to act as the local licensing authority for the Township for all cannabis establishments.
Under no circumstances shall the Township Clerk receive or act upon any application for local licensing of a cannabis establishment if the permitting authority has not issued the appropriate state license. It is the intent of this chapter that no cannabis establishment may lawfully operate in the Township absent the issuance of the appropriate state license and full regulatory oversight of the cannabis establishment by the permitting authority as well as that of the Township.
Under no circumstances shall the Township Clerk receive or act upon any application for local licensing of a cannabis establishment unless or until the applicant has obtained the appropriate zoning approval from the Township land use board with jurisdiction over the application and a certificate of zoning compliance has been issued by the Zoning Officer.
The Township Clerk, or his/her designee, shall be authorized to establish rules and regulations consistent with the intent of this chapter.
Persons wishing to obtain a local license for a cannabis establishment shall file a license application with the Township Clerk, on a standardized form established by the Business Clerk and available in the Clerk's office and on the Township's website.
An application shall be deemed incomplete, and shall not be processed by the Township Clerk, until all documents and application fees are submitted. To be deemed complete, all applications shall be accompanied by the following:
The applicant shall submit proof of licensure by the permitting authority.
The applicant shall submit proof that the applicant has or will have lawful possession of the premises proposed for the cannabis establishment, which proof may consist of the following: a deed, a lease, a real estate contract contingent upon successful licensing, or a letter of intent from the owner of the premises indicating an intent to lease the premises to the applicant contingent upon approval of required licenses.
The location proposed for licensing by the applicant shall comply with all applicable Township zoning laws and the location restrictions set forth herein.
The applicant shall submit a nonrefundable application fee in the amount of $1,000 or a nonrefundable annual renewal fee in the amount of $500, as appropriate. The amount of the nonrefundable application or renewal fee may be modified from time to time by subsequent duly adopted resolution of the Township Council.
The applicant and the contents of the application shall otherwise comply with any and all qualification standards set forth in the state and local laws, regulations, or requirements.
Any license shall be valid for a period of one year from January 1 in each year.
The Township Clerk may, at his/her discretion, adjust the annual renewal date of the local license to correlate with an applicant's state licensing and renewal schedule.
Upon renewal of a license, the licensee shall be governed by any amendments, additional restrictions, or changes in requirements adopted since the previous license was issued or renewed.
Transfer of ownership of a license, change of location of any license, or modification to expand a licensed premise shall be treated as a new application, subject to Township land use review and approval.
If the licensee has received notice of violation of any law or regulation relating to their state license, including disciplinary action against any past or current cannabis license, the applicant for renewal shall include a copy of the notice of violation or disciplinary action with their application.
A maximum of two Class 3 cannabis wholesalers licenses shall be permitted to operate in the Township.
A maximum of two Class 4 cannabis distributors licenses shall be permitted to operate in the Township.
Pursuant to Section 31b of the Act, all other classes of licensed cannabis businesses not expressly permitted herein, including Class 1 cannabis cultivator licenses, Class 2 manufacturer licenses, Class 5 cannabis retailer licenses, and Class 6 cannabis delivery licenses, are hereby prohibited from operating anywhere in the Township, except for the delivery of cannabis items and related supplies by delivery services.
No building or structure associated with a cannabis establishment shall be located within 1,000 feet of any school property (including any property owned or leased by a public school board), or within 500 feet of the real property comprising a public housing facility, public park, or public building, except for the Township Wastewater Treatment Plant located at Block 769, Lot 1, and the Sharkey Landfill Site located at Block 771, Lot 1, and Block 770, Lot 7.
No cannabis establishment shall be located within 500 feet of a residential zone district boundary or commercial residential mixed-use zone district boundary.
All cannabis establishments shall limit their hours of operation from 6:00 a.m. to 10:00 p.m., Monday through Saturday.
All operations of a cannabis establishments shall occur within a single, or series of, completely enclosed buildings. No outdoor storage shall be permitted.
There shall be at least two employees on continuous duty in any part of a cannabis establishment to which the public is invited.
A cannabis establishment shall employ a security officer or the premises shall have in operation a security device approved by the Chief of Police of the Township which may consist of a silent and/or audible burglar alarm connected to a central security monitoring system designed to activate police response, a closed circuit television connected to a central security monitoring system designed to activate police response, or such other device which can be activated instantaneously to notify law enforcement officers that a crime or disorderly person's activity is in progress.
The Township Police Department shall be provided the name and phone number of a contact person to notify during suspicious activity during or after operating hours. Security staff is required on the premises during all hours of operation.
A burglarproof drop safe that regulates an employee's access to cash shall be used on the premises.
The exterior portion of a cannabis establishment, including parking areas, shall be well lit during business hours. Said lighting shall be designed so as to not unduly interfere with any neighbor's reasonable use and/or enjoyment of the property.
Fencing, a minimum of six feet in height, shall be installed around the loading and unloading area of the cannabis establishment.
Security protocols shall be submitted to the Township Police Department for compliance review with all safety and security standards established by the state of cannabis establishments. The Township Police Department may, at its discretion and upon review of the proposed location, recommend or require additional safety and security measures.
Marijuana plants, products, accessories, and associated paraphernalia shall not be visible from a public sidewalk, public street or right-of-way, or any other public place. On-site storage of usable marijuana shall comply with applicable federal, state and local laws and regulations.
It shall be unlawful for any person 21 years of age or older to consume cannabis through means other than by smoking, vaping, or aerosolizing (e.g., edibles) in a public place, including any "indoor public place" as the term is defined in N.J.S.A. 26:3D-57.
A cannabis establishment must provide sufficient measures and means of preventing smoke, odors, debris, dust, fluids and other substances from exiting the cannabis establishment. In the event that any debris, dust, fluids or other substances shall exit the business premises, the property owner and operator shall be jointly and severally responsible for the full cleanup immediately.
A cannabis establishment shall properly dispose of all materials and other substances in a safe and sanitary manner in accordance with state regulations.
A cannabis establishment must meet industry best practices for odor control.
All state law and regulations concerning ventilation systems shall be followed.
In accordance with the Act, the cannabis transfer tax for the Township shall be 1% of the receipts from each sale by a Class 3 cannabis wholesaler.
In accordance with the Act, the user tax for the Township shall be imposed at equivalent cannabis transfer tax rates on any concurrent license holder operating more than one cannabis establishment in the Township.
The transfer tax or user tax shall be collected or paid and remitted to the Township by the cannabis establishment from the cannabis establishment purchasing or receiving the cannabis or cannabis item. The transfer tax or user tax shall be stated, charged, and shown separately on any sales slip, invoice, receipt, or other statement or memorandum of the price paid or payable, or equivalent value of the transfer, for the cannabis or cannabis item.
Every cannabis establishment required to collect a transfer tax or user tax imposed by this chapter shall be personally liable for the transfer tax or user tax imposed, collected, or required to be collected under this section. Any cannabis establishment shall have the same right with respect to collecting the transfer tax or user tax from another cannabis establishment as if the transfer tax or user tax was a part of the sale and payable at the same time, or with respect to nonpayment of the transfer tax or user tax by the cannabis establishment, as if the transfer tax or user tax was a part of the purchase price of the cannabis or cannabis item, or equivalent value of the transfer of the cannabis or cannabis item, and payable at the same time; provided, however, that the Chief Fiscal Officer of the Township shall be joined as a party in any action or proceeding brought to collect the transfer tax or user tax.
No cannabis establishment required to collect a transfer tax or user tax imposed by this chapter shall advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the transfer tax or user tax will not be separately charged and stated to another cannabis establishment, or that the transfer tax or user tax will be refunded to the cannabis establishment.
All revenues collected from a transfer tax or user tax imposed by this chapter shall be remitted to the Chief Financial Officer of the Township in a manner prescribed by the Township. The Chief Financial Officer shall collect and administer any transfer tax or user tax imposed by ordinance pursuant to this chapter. The Township shall enforce the payment of delinquent taxes or transfer fees imposed by ordinance pursuant to this chapter in the same manner as provided for municipal real property taxes.
In the event that the transfer tax or user tax imposed by this chapter is not paid as and when due by a cannabis establishment, the unpaid balance, and any interest accruing thereon, shall be a lien on the parcel of real property comprising the cannabis establishment's premises in the same manner as all other unpaid municipal taxes, fees, or other charges. The lien shall be superior and paramount to the interest in the parcel of any owner, lessee, tenant, mortgagee, or other person, except the lien of municipal taxes, and shall be on a parity with and deemed equal to the municipal lien on the parcel for unpaid property taxes due and owing in the same year.
The Township shall file in the office of its Tax Collector a statement showing the amount and due date of the unpaid balance and identifying the lot and block number of the parcel of real property that comprises the delinquent cannabis establishment's premises. The lien shall be enforced as a municipal lien in the same manner as all other municipal liens are enforced.
The Township Chief Financial Officer, or his/her designee, shall be authorized to establish rules and regulations consistent with the intent of this chapter regarding the collection and enforcement of the transfer tax.
A cannabis establishment shall comply with all applicable state and local laws and regulations.
The Township Clerk shall suspend or revoke any license if the corresponding state license for the subject location is expired, surrendered, suspended, or revoked.
Where it is found that a licensee has engaged in a 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 Township Clerk is authorized and empowered to immediately suspend any license or permit issued pursuant to this chapter and order that the licensee cease all operations until such time as the violations are abated.
Any person aggrieved by the action of the Township Clerk in the denial of an application for license, or the decision with reference to the revocation or suspension of a license in accordance with this chapter, shall have the right of appeal to the Business Administrator, or his/her designee. Such appeal shall be taken by filing with the Business Administrator, within 10 days of the action complained of, a written statement setting forth fully the grounds for the appeal. The Business Administrator, or his/her designee, may decide the matter on the papers or schedule a time and place for a hearing on such appeal. Notice of any such hearing shall be served upon the applicant/licensee (whichever is appropriate) or mailed, postage prepaid, to the applicant/licensee at the address given on the application for license in accordance with this chapter, at least five days prior to the date set for said hearing. The decision and order of the Business Administrator, or his/her designee, on such appeal shall be final and conclusive.