[HISTORY: Adopted by the Township Committee of the Township
of Egg Harbor as indicated in article histories. Amendments noted
where applicable.]
[Adopted 7-21-2021 by Ord. No. 30-2021]
Whereas the public has voted to approve an amendment to the
New Jersey Constitution to allow for the legalization of the recreational
use of cannabis for adults at least 21 years of age, which has been
signed into law, it is the policy and the intent of the Township of
Egg Harbor to permit and regulate marketplace classes of licensed
cannabis businesses.
Unless specifically defined below or otherwise in N.J.S.A. 24:6I-31
et seq., New Jersey Cannabis Regulatory, Enforcement Assistance, and
Marketplace Modernization Act, and its applicable regulations, words
or phrases used in this article shall be interpreted so as to give
them the meanings they have in common usage and to give this article
its most reasonable application:
Any licensed person or entity that grows, cultivates, or
produces cannabis in this state, and sells, and may transport, this
cannabis to other cannabis cultivators, or usable cannabis to cannabis
manufacturers, cannabis wholesalers, or cannabis retailers, but not
to consumers. This person or entity shall hold a Class 1 Cannabis
Cultivator license.
Any licensed person or entity that provides courier services
for consumer purchases that are fulfilled by a licensed cannabis retailer
in order to make deliveries of the purchased items to a consumer,
and which service would include the ability of a consumer to make
a purchase directly through the cannabis delivery service which would
be presented by the delivery service for fulfillment by a retailer
and then delivered to a consumer. This person or entity shall hold
a Class 6 Cannabis Delivery license.
Any licensed person or entity that transports cannabis plants
in bulk from one licensed cultivator to another licensed cultivator,
or cannabis items in bulk from any type of licensed cannabis business
to another. This person or entity shall hold a Class 4 Cannabis Distributor
license.
Any licensed person or entity that processes cannabis items
in this state by purchasing or otherwise obtaining usable cannabis,
manufacturing, preparing and packaging cannabis items, and selling,
and optionally transporting, these items to other cannabis manufacturers,
cannabis wholesalers, or cannabis retailers, but not to consumers.
This person or entity shall hold a Class 2 Cannabis Manufacturer license.
Any licensed person or entity that sells cannabis items and
related supplies to consumers. This person or entity shall hold a
Class 5 Cannabis Retailer license.
Any licensed person or entity that obtains and sells cannabis
items for later resale by other licensees. This person or entity shall
hold a Class 3 Cannabis Wholesaler license.
[Added 2-16-2022 by Ord.
No. 5-2022[1]]
No person, firm, or corporation may be licensed to own or operate
a recreational cannabis business without first having acquired a properly
adopted resolution of local support in accordance with the provisions
of this article.
A.
Application. All applicants requesting local support pursuant to
N.J.A.C. 17:30-5.1(g) shall submit a completed application form and
supply all items requested by local officials in a manner prescribed
by the Township. Said application must include a nonrefundable fee
of $3,500 for the administrative review, a concept plan, and any other
information deemed necessary to make a determination regarding the
suitability of the specific cannabis business and activities related
to its business operations for the proposed intended location.
[Amended 10-19-2022 by Ord. No. 45-2022]
B.
Administrative review. Said request shall be subject for review by
Township officials and by a Technical Review Committee, if deemed
necessary. Township officials and/or the Technical Review Committee
shall issue its recommendations to the Township Committee who shall
adopt a resolution to either approve or deny the request of support,
which may include conditions for approval.
C.
Land use compliance required. The adoption of a resolution of support
does not constitute a zoning permit or land use approval and no lot
hereafter may be used and no building or part thereof hereafter may
be demolished, erected, constructed, reconstructed, moved, extended,
converted, altered, maintained or used except in conformity with the
provisions of this article, Township ordinances and all other applicable
government requirements, conditions, and approvals.
D.
Appeal. In the event of the denial of local support, the applicant
may appeal to the Township Committee for a hearing. The appeal shall
be filed, in writing, with the Township Clerk within 14 days after
notification of the denial. The Township Committee shall hold its
hearing within 14 days thereafter, and its decision shall be final.
A.
Laws applicable. All application for licenses, all licenses issued
and all proceedings under this article shall be in accordance with
the Act, rules, regulations, and all other applicable laws of the
State of New Jersey.
B.
Issuing authority. All licenses required by this article shall be
issued by the Township Committee, which shall also administer the
provisions of this article. The Township will not offer preferences
for licensure (standard, conditional or microbusiness) pursuant to
N.J.A.C. 17:30-6.3 for the issuance of all classes of cannabis business
licenses, which shall be issued on a nondiscriminatory first-come-first-served
basis to those applicants who have satisfied all local land use and
licensing requirements.
[Amended 12-14-2022 by Ord. No. 51-2022]
C.
License required. It shall be unlawful for any person, firm, or corporation
to own or operate within this municipality any recreational cannabis
businesses for the cultivation, manufacture, wholesale, and distribution
of cannabis as well as its retail sale and delivery without first
having obtained a properly issued license that is issued in accordance
with the New Jersey Cannabis Regulatory, Enforcement Assistance, and
Marketplace Modernization Act (P.L. 2021, c. 16) and the provisions
of this article.
D.
License fees. The annual license fees, type and maximum number of
licenses for the cultivation, manufacture, wholesale, distribution,
retail sale and delivery of cannabis shall be as follows:
(1)
The application fee for Classes 1 through 5 licenses shall be $10,000
and $10,000 per annum thereafter.
(2)
The application fee for a Class 6 license shall be $2,500 and $2,500
per annum thereafter.
(3)
There shall be a maximum of four Class 5 licenses issued, exclusive
of any vertically integrated medical marijuana facility.
(4)
There shall be a maximum of four Class 6 licenses issued, exclusive
of any vertically integrated medical marijuana facility.
E.
Hours. The hours of public operation for all Class 1 (Cannabis Cultivator),
Class 2 (Cannabis Manufacturer), Class 3 (Cannabis Wholesaler), and
Class 4 (Cannabis Distributor) licensed cannabis businesses shall
be limited to 7:00 a.m. through 10:00 p.m. daily. The hours of public
operation for all Class 5 licenses (Cannabis Retailer) shall be limited
to 8:00 a.m. through 10:00 p.m. daily.
On-site consumption of cannabis in any form or its transfer
from its original packaging by patrons, employees or other persons
in the building, premises, or in any automobile or other vehicle located
on the premises is prohibited.
[Amended 4-6-2022 by Ord.
No. 13-2022]
A.
Presence. No person under the legal age of 21 shall be allowed in
any building where cannabis is sold, except: i) for any person obtaining
cannabis for medicinal purposes as permitted by the Act;[1] ii) for any employee approved by the New Jersey Cannabis
Regulatory Commission; or iii) as otherwise permitted by applicable
state law, rules or regulations.
[1]
Editor's Note: See N.J.S.A. 24:6I-1 et seq.
B.
Purchase of cannabis by a person under legal age. No person under
the legal age of 21 shall purchase, attempt to purchase or have another
purchase for that person any cannabis on any premises licensed for
the sale of cannabis, except for any person obtaining cannabis for
medicinal purposes as permitted by the Act.[2]
[2]
Editor's Note: See N.J.S.A. 24:6I-1 et seq.
C.
Purchase of cannabis for a person under the legal age. No person
shall purchase, attempt to purchase, or transfer cannabis to a person
under the legal age of 21, except for a parent, guardian, licensed
delivery person or other caregiver obtaining and delivering cannabis
to a person under the age of 21 for medicinal purposes as permitted
by the Act.[3] It shall be unlawful for any person to induce or attempt
to induce any licensee or any employee of a licensee to sell, serve
or deliver cannabis to a person under the legal age of 21, except
to obtain cannabis for medicinal purposes as permitted by the Act.
[3]
Editor's Note: See N.J.S.A. 24:6I-1 et seq.
[Amended 2-16-2022 by Ord. No. 5-2022]
A.
Cannabis transfer tax.
(1)
A cannabis transfer tax is hereby imposed by the Township on the
sale of cannabis or cannabis items by a cannabis establishment that
is located in the Township of Egg Harbor, pursuant to N.J.S.A. 40:48I-1
et seq. This transfer tax shall be imposed on receipts from the sale
of cannabis or cannabis items by a cannabis cultivator to another
cannabis cultivator; receipts from the sale of cannabis items from
one cannabis establishment to another cannabis establishment; receipts
from the retail sale of cannabis items by a cannabis retailer to retail
consumers who are 21 years of age or older; or any combination thereof.
(2)
The cannabis transfer tax rate imposed by the Township shall be at
the highest rate established by state statute, currently being 2%
of the receipts from each sale by a cannabis cultivator; 2% of the
receipts from each sale by a cannabis manufacturer; 1% of the receipts
from each sale by a cannabis wholesaler; and 2% of the receipts from
each sale by a cannabis retailer.
B.
Cannabis user tax. The Township of Egg Harbor hereby imposes a cannabis user tax at rates equivalent to the cannabis transfer tax rates set forth in § 87-7A on any concurrent license holder, as permitted by Section 33 of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act, operating more than one cannabis establishment. The user tax 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 § 87-7A, from the license holder's establishment that is located in the Township of Egg Harbor to any of the license holder's other establishments, whether located in the Township of Egg Harbor or another municipality.
C.
Medical cannabis transfer tax.
(1)
Pursuant to N.J.S.A. 24:6I-1 et seq., entitled "Jake Honig Compassionate
Use Medical Cannabis Act (hereinafter the "Act"), a medical cannabis
transfer tax shall be fixed at a uniform percentage of 2% rate on
all receipts, each transfer or use of cannabis or cannabis items furnished
by a licensed medical cannabis alternative treatment center as defined
by the Act, located in the Township of Egg Harbor to a medical cannabis
handler for delivery to a purchaser or to a registered qualifying
patient or the patient's caregiver.
(2)
The medical cannabis transfer tax shall be in addition to any other
tax or fee imposed pursuant to any state or federal statute, local
ordinance, or resolution by any governmental entity upon a medical
cannabis dispensary.
(3)
All taxes imposed by this section shall be collected on behalf of
the Township of Egg Harbor by the person dispensing cannabis to the
patient, the patient's designated caregiver, or cannabis handler from
the license holder's establishment that is located in the Township
to any of the other license holder's establishments, whether located
in this Township or another municipality.
(4)
The Township and the alternative treatment center shall enter into
any sales and use tax agreements as may be required by New Jersey
law.
(5)
CANNABIS
MEDICAL CANNABIS DISPENSARY
RECEIPTS
Definitions. As used in this section, the following terms shall have
the meanings indicated:
All parts of the plant genus Cannabis, whether growing or
not, the seeds thereof, and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant or its seeds, except those containing
resin extracted from the plant, but shall not include the mature stalks
of the plant, fiber produced from the stalks, oil or cake made from
the seeds of the plant, any other compound, manufacture, salt, derivative,
mixture, or preparation of such mature stalks, fiber, oil, or cake,
or the sterilized seed of the plant which is incapable of germination.
"Cannabis" shall not mean hemp, or a hemp product cultivated, handled,
processed, transported, or sold pursuant to the New Jersey Hemp Farming
Act, P.L. 2019, c. 238 (N.J.S.A. 4:28-6 et seq.).
An organization issued a permit by the commission that authorizes
the organization to: purchase or obtain medical cannabis and related
supplies from medical cannabis cultivators; purchase or obtain medical
cannabis products and related supplies from medical cannabis manufacturers;
purchase or obtain medical cannabis, medical cannabis products, and
related supplies and paraphernalia from other medical cannabis dispensaries
and from clinical registrants; deliver, transfer, transport, distribute,
supply, and sell medical cannabis and medical cannabis products to
other medical cannabis dispensaries; furnish medical cannabis, including
medical cannabis products, to a medical cannabis handler for delivery
to a registered qualifying patient, designated caregiver, or institutional
caregiver consistent with the requirements of Subsection i of Section
27 of P.L. 2019, c. 153 (N.J.S.A. 24:6I-20); and 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. A medical cannabis dispensary permit shall not authorize
the permit holder to cultivate medical cannabis, to produce, manufacture,
or otherwise create medical cannabis products.
All revenue derived from the sale of cannabis or medical
cannabis related products and merchandise, whether paid for in cash
or credit, and regardless of when purchased or manner of payment.
Receipts shall not include: i) discounts allowed and taken on sales;
ii) any tax required by law to be included in or added to the purchase
price that is collected from the purchaser; and iii) any portion of
a sales price for returned or recalled products as refunded by the
seller.
D.
Collection of cannabis transfer and user taxes.
(1)
Every person required to collect any taxes imposed by this section
shall be personally liable for the tax imposed, collected or required
to be collected. Any such person shall have the same right in respect
to collecting the tax from his or her customer; provided, however,
that the Business Administrator of the Township of Egg Harbor shall
be joined as a party in any action brought to collect the tax.
(2)
Every person responsible for the collection of the medical cannabis
transfer tax shall maintain books and/or records to substantiate the
tax obligation, even if no tax is due.
(3)
All transfer taxes or user taxes imposed by this section shall be
paid to the Chief Financial Officer of the Township of Egg Harbor
on a quarterly basis payable for the prior three month's activities
and due at the same time as quarterly dates for the collection of
property taxes. Each quarter the medical cannabis dispensary or cannabis
establishment shall produce a report certified as true and accurate
by the Chief Financial Officer or other similarly situated person
of showing the receipts for each month of the preceding quarter. Each
year before February 1, a financial report from an independent accountant
certifying their revenues shall be provided to the Chief Financial
Officer.
(4)
Pursuant to state law, any person who attempts to do anything whatsoever
to avoid the full disclosure of the tax due under this section to
avoid the payment of the whole or any part thereof, and any person
who refuses to permit an officer or agent designated by the Township
of Egg Harbor to examine his or her books, records and papers is a
disorderly person.
(5)
If for any reason the tax imposed by this section is not paid when
due, interest at a rate of 12% per annum on the amount of the tax
due and an additional penalty of 1/2% of the amount of the unpaid
tax for each month or fraction thereof during which the tax remains
unpaid shall be added and collected or a minimum of $50, whichever
is greater. Where action is brought for the recovery of any tax hereunder,
the person liable shall, in addition, be liable for the cost of collection,
including attorney's fees, interest and penalties imposed.
(6)
A copy of this section shall be transmitted to every medical cannabis
dispensary within the Township of Egg Harbor.
B.
Proceedings for the suspension or revocation shall be in accordance with the provisions of Chapter 142, Mercantile Licensing, Article I, or any provision of the applicable statute or any of the rules or regulations of the State of New Jersey by a service of the notice of charges preferred against the licensee and affording a reasonable opportunity for a hearing. Any suspension or revocation shall carry the penalties and prohibitions provided in the ordinances and statutes that are referred to herein.
C.
Suspension or revocation of a license shall be in addition to any
other penalty which may be imposed for a violation of this article.
A.
Any licensee who shall violate or fail to comply with the provisions
of this article shall, upon conviction, have his, her or its license
subject to a fine of $2,500 for the first offense and $3,500 for any
subsequent offense as well as such penalties as may otherwise be provided
by law.
B.
Any person who shall violate or fail to comply with the provisions
of this article shall, upon conviction, be subject to a minimum fine
of $250 or a maximum of $2,000 or by imprisonment for a term not exceeding
90 days or by a period of community service not exceeding 90 days,
as well as such penalties as may otherwise be provided by law.
