[HISTORY: Adopted by the Township Committee of the Township
of Readington 2-7-2022 by Ord. No. 02-2022.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 88,
Cannabis Businesses, adopted 7-6-2021 by Ord. No. 19-2021.
Notwithstanding any federal law to the contrary, this chapter
is enacted to regulate and govern the use of cannabis and medical
cannabis and the number and types of permits issued in the Township
pursuant to New Jersey's Jake Honig Compassionate Use Medical
Cannabis Act, N.J.S.A. 24:6I-1, et seq. ("Honig Act"), the New Jersey
Cannabis Regulatory, Enforcement Assistance and Marketplace Modernization
Act, N.J.S.A. 24:6I-32 et seq. ("CREAMMA") (collectively "the Acts")
and the regulations adopted by the New Jersey Cannabis Regulatory
Commission at N.J.A.C. 17-30, et seq.
For the purposes of this chapter, the following definitions
shall apply:
An organization issued a permit pursuant to the Jake Honig
Compassionate Use Medical Cannabis Act," P.L. 2009, c. 307 (N.J.S.A.
24:6I-1 et al) to operate as a medical cannabis cultivator, a medical
cannabis manufacturer, a medical cannabis dispensary or clinical registrant,
as well as any alternative treatment center deemed pursuant to Section
7 of that act (N.J.S.A. 24:6I-7) to concurrently hold a medical cannabis
cultivator permit, a medical cannabis manufacturer permit and a medical
cannabis dispensary permit.
All parts of the plant Cannabis sativa L., including indica
and any and all hybrids, 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, which are cultivated and when applicable, manufactured
in accordance with CREAMMA for use in cannabis products as set forth
in that Act, but shall not include the weight of any other ingredient
combined with cannabis to prepare topical or oral administrations,
food, drink or other product. "Cannabis" does not include medical
cannabis dispensed to registered qualifying patients pursuant to the
Honig Act and N.J.S.A. 18A:40-12.22, et al; marijuana as defined in
N.J.S.A. 2C:35-2 and applied to any offense set forth in chapters
35, 35A and 36 of Title 2C of the New Jersey Statutes, N.J.S.A. 2C:35B-1
et seq., or marijuana as defined in N.J.S.A. 24:21-2 and applied to
any offense set forth in the "New Jersey Controlled Dangerous Substances
Act" N.J.S.A. 24:2-1, et al; or hemp or a hemp product cultivated,
handled, processed, transported or sold pursuant to the "New Jersey
Hemp Farming Act" N.J.S.A. 4:28-6, et al.
Any person or entity holding a Class 1 cannabis cultivator
license issued by the State of New Jersey that grows, cultivates,
or produces cannabis in the State of New Jersey, 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.
The transportation of cannabis items and related supplies
to a consumer. "Cannabis delivery" also includes the use by a licensed
cannabis retailer of any third-party technology platform to receive,
process, and fulfill orders by consumers, which third party shall
not be required to be a licensed cannabis establishment, distributor,
or delivery service, provided that any physical acts in connection
with fulfilling the order and delivery shall be accomplished by a
certified cannabis handler performing work for or on behalf of the
licensed cannabis retailer, which includes a certified cannabis handler
employed or otherwise working on behalf of a cannabis delivery service
making off-premises deliveries of consumer purchases fulfilled by
that cannabis retailer.
Any person or entity holding a Class 6 cannabis delivery
license issued by the State of New Jersey that provides 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 person or entity holding a Class 4 cannabis distributor
license issued by the State of New Jersey that transports cannabis
in bulk intrastate from one licensed cannabis cultivator to another
licensed cannabis cultivator, or transports 40 cannabis items in bulk
intrastate from any 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.
For the purposes of this chapter, a cannabis cultivator,
a cannabis manufacturer or a cannabis wholesaler, as well as an expanded
ATC, but not a cannabis retailer, dispensary, clinical registrant
or delivery service.
Any usable cannabis, cannabis product, cannabis extract,
and any other cannabis resin. "Cannabis item" does not include: any
form of medical cannabis dispensed to registered qualifying patients
pursuant to the Honig Act and N.J.S.A. 18A:40-12.22, et al., or hemp
or a hemp product cultivated, handled, processed, transported or sold
pursuant to the "New Jersey Hemp Farming Act" N.J.S.A. 4:28-6, et
al.
Any person or entity holding a Class 2 cannabis manufacturer
license issued by the State of New Jersey, 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.
Any person or entity holding a Class 5 cannabis license issued
by the State of New Jersey that purchases or otherwise obtains usable
cannabis from cannabis cultivators and cannabis items from cannabis
manufacturers or cannabis wholesalers, and sells these to 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.
Any person or entity holding a Class 3 cannabis wholesaler
license issued by the State of New Jersey 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.
The New Jersey Cannabis Regulatory Commission established
pursuant to CREAMMA.
A permitted alternative treatment center pursuant to P.L.
2019, c. 153 and N.J.A.C. 8:64 that is authorized to operate a cannabis
business or businesses pursuant to CREAMMA and the regulations found
at N.J.A.C. 17-30 et seq, in addition to its ATC operations.
For the purpose of this chapter, means "manufacturing" as
performed by a cannabis manufacturer or a medical cannabis manufacturer.
Cannabis dispensed to registered qualifying patients pursuant
to the Honig Act and N.J.S.A. 18A:40-12.22 et al. "Medical cannabis"
does not include any cannabis or cannabis item which is cultivated,
produced, processed and consumed in accordance with CREAMMA.
An organization holding a permit issued by the Cannabis Regulatory
Commission that authorizes the organization to possess or cultivate
cannabis and deliver, transfer, transport, distribute, supply and
sell medical cannabis and related supplies to other medical cannabis
dispensaries, as well as to plant, cultivate, grow and harvest medical
cannabis for research purposes. A medical cannabis cultivator permit
shall not authorize the permit holder to manufacture, produce or otherwise
create medical cannabis products or to deliver, transfer, transport,
distribute, supply, sell or dispense medical cannabis, medical cannabis
products, paraphernalia, or related supplies to qualifying patients,
designated caregivers or institutional caregivers.
An organization that is issued a permit by the Cannabis Regulatory
Commission authorizing 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 the Honig Act; and possess, display, 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. Medical cannabis dispensaries are
prohibited in the Township.
A medical cannabis cultivator or a medical cannabis manufacturer
but not a medical cannabis dispensary, retailer or delivery service.
For the purposes of this chapter, "alternative treatment centers"
are also included within the definition of "medical cannabis establishment."
An organization that is issued a permit by the Cannabis Regulatory
Commission authorizing the organization to purchase or obtain medical
cannabis and related supplies from a medical cannabis cultivator or
a clinical registrant; purchase or obtain medical cannabis products
from another medical cannabis manufacturer or a clinical registrant;
produce, manufacture or otherwise create medical cannabis products;
and possess, deliver, transfer, transport, distribute, supply and
sell medical cannabis products and related supplies to other medical
cannabis manufacturer and to medical dispensaries and clinical registrants.
A medical cannabis manufacturer permit shall not authorize the permit
holder to cultivate medical cannabis or to deliver, transfer, transport,
distribute, supply, sell, or dispense medical cannabis, medical cannabis
products, paraphernalia, or related supplies to registered qualifying
patients, designated caregivers, or institutional caregivers.
Shall have the same meaning as defined in N.J.S.A. 24:6I-33
and operated in accordance with N.J.A.C. 17:30-6.7. Per statute, it
means a person or entity licensed by the State as a cannabis cultivator,
cannabis manufacturer, cannabis wholesaler, cannabis distributor,
cannabis retailer, or cannabis delivery service that may only, with
respect to its business operations and capacity and quantity of product:
employ no more than 10 employees; operate a cannabis establishment
occupying an area of no more than 2,500 square feet, and in the case
of a cannabis cultivator, grow cannabis on an area no more than 2,500
square feet measured on a horizontal plane and grow about that plane
not higher than 24 feet; possess no more than 1,000 cannabis plants
each month, except that a cannabis distributor's possession of
cannabis plants for transportation shall not be subject to this limit;
acquire each month, in the case of a cannabis manufacturer, no more
than 1,000 pounds of usable cannabis; acquire for resale each month,
in the case of a cannabis wholesaler, no more than 1,000 pounds of
usable cannabis, or the equivalent amount in any form of manufactured
cannabis product or cannabis resin, or any combination thereof; and
acquire for retail sale each month, in the case of a cannabis retailer,
no more than 1,000 pounds of usable cannabis, or the equivalent amount
in any form of manufactured cannabis product or cannabis resin, or
any combination thereof. Cannabis microbusinesses are not permitted
in the Township.
Any place to which the public has access that is not privately
owned; or any place to which the public has access where alcohol consumption
is not allowed, including but not limited to, a public street, road,
thoroughfare, school, sidewalk, bridge, alley, plaza, park, playground,
swimming pool, shopping area, public transportation facility, vehicle
used for public transportation, parking lot, public library or any
other public building, structure or area.
Except for licensed establishments operating as cultivators,
processors and/or manufacturers of cannabis and/or medical cannabis
as specifically provided herein, pursuant to Section 31b of the New
Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace
Modernization Act (P.L. 2021, c. 16)(the "Act") and under the general
police powers of the Township provided under N.J.S.A. 40:48-1 in order
to protect the general health, safety and welfare of the public, all
cannabis microbusinesses, medical cannabis and cannabis retailers,
dispensaries and/or cannabis delivery services as said terms are defined
in section 3 of the Act and within this chapter are hereby prohibited
from operating anywhere in the Township of Readington, except for
the delivery of cannabis items and related supplies within the Township
by a delivery service located outside of the Township.
A.
There shall hereby be made available within the Township of Readington
no more than one municipal license for a qualifying entity or individual
for either one of the following:
B.
Multiple classes of licenses within the definitions of Subsection A(1) and (2) above may be combined at the same facility and on the same property in the Township, provided there is no more than one such establishment operating within the Township. Such municipal license shall constitute "written municipal approval" required pursuant to "CREAMMA", N.J.S.A. 24:6I-36(b)(1)(c)(i) and 24:6I-5(c) or the Honig Act, N.J.S.A. 24:6I-7 and the regulations found at N.J.A.C. 17-30, et seq.
A.
No one may operate a cannabis establishment or medical establishment ("establishment"), operate an expanded alternative treatment center, or otherwise convert from an alternative treatment center to a cannabis establishment, or combination thereof, in the Township without a municipal license. A license must be requested and obtained annually upon approval of the Township Committee for the establishment prior to, and as a condition of, permit or license renewal pursuant to CREAMMA, the regulations at N.J.A.C. 17-30, et seq. and this Chapter 88. Only the municipal permit or license, annually renewed pursuant to the above-cited authority, shall constitute the annually required written municipal approval required for the establishment pursuant to the regulations of the Cannabis Regulatory Commission ("CRC"). Other written statements, letters, resolutions or other documents issued by the Township or any official, employee, or other representative shall not constitute annual or renewed "written municipal approval" for purposes of the CRC.
B.
In addition to a municipal license, in order to operate a cannabis
establishment and/or medical cannabis establishment in the Township
of Readington, the appropriate state licenses are required. A municipal
license may be conditionally issued by the Township, but shall be
contingent upon the locally licensed entity's or individual's
subsequent receipt of a state permit or license of the same class
or type of regulated cannabis activity issued by the Township, otherwise,
it may be revoked. All applications for permits and licenses, all
permits and licenses issued and all proceedings under this section
shall be in accordance with all applicable laws of the state.
C.
In order to operate a cannabis establishment and/or medical cannabis
establishment, the applicant shall be in possession of all applicable
land use/zoning approvals and all construction permits and approvals
from all municipal and state entities having jurisdiction over same.
D.
Persons seeking to obtain any classification of municipal cannabis
license shall file an application with the Township Clerk on a standardized
form established by the Township and available in the Township Clerk's
office. The Township Clerk shall establish a reasonable application
period and deadline for all applications. An application shall be
deemed incomplete, and shall not be processed by the Township until
all documents and application fees are submitted. To be deemed complete,
all applications shall be accompanied by the following:
(1)
Name, address of owner, applicant, property location, including address
and lot and block on the official tax map and zone identification.
(2)
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 a deed, 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
applicant contingent upon applicant's receipt of a license from
the State of New Jersey.
(3)
The applicant and/or owner, as may be applicable, shall submit an
affidavit and documentary proof of compliance with all state and local
laws regarding affirmative action, anti-discrimination and fair employment
practices. The applicant and/or owner, as may be applicable, shall
also certify under oath that they will not discriminate based on race,
color, religion (creed), gender expression, age, national origin (ancestry),
disability, marital status, sexual orientation, or military status,
in any of its activities or operations.
(4)
The location proposed for licensing by the applicant, shall comply
with all applicable municipal zoning laws and the location restrictions
set forth in the land development portion of the Code of Readington
Township.
(5)
The applicant, owner and its principals, as may be applicable, shall
submit, to the satisfaction of the Township Committee, proof of financial
capability to open and operate a cannabis and/or medical cannabis
establishment for which the applicant is seeking a license. Standards
of proof of financial capability shall be determined by the Township.
(6)
The applicant shall submit all required fees (nonrefundable) for the application and license in accordance with the fee schedule established in § 88-6 below.
(7)
Copy of application form sent to the State of New Jersey (the class
or classes of licenses applied for at the municipality must match
the class or classes of licenses issued by the State of New Jersey
and the applicant's name and entity, as well as owner's
and principals' names and entities must also match on both applications).
(8)
Proof of the attainment of all other permits/approvals required by
the Township, including land use and zoning, Construction Code and
Board of Health. Proof may be established by a letter, resolution
or permit issued by the applicable entity.
(9)
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.
E.
In the event there are multiple applicants for a license, the Township
Clerk shall compile all applications submitted for review by the Township
Committee and the Township Committee shall evaluate all applicants
and issue a notification of award after consideration and evaluation
of the following criteria:
(1)
Applicant's and its owners' (if applicable) or principals'
qualifications and experience operating in highly regulated industries,
including cannabis, healthcare, pharmaceutical manufacturing, and/or
retail pharmacies, with preference to experience operating such businesses
within the State of New Jersey and where the value of such businesses
within the State of New Jersey and where the value of owner's
experience shall outweigh the experience of nonowner principals (15%,
not to exceed 2,500 words);
(2)
Applicant's and its owners' (if applicable) or principals'
qualifications and experience related to public safety and security,
including any of the applicant's owners' or principals'
experience in law enforcement and drug enforcement (5%, not to exceed
1,000 words), and a summary of applicant's plans for storage
of products and currency, disposal of waste, plans for odor control,
storage of any hazardous chemicals, physical security, video surveillance,
security personnel and visitor management (10%, not to exceed 2,500
words);
(3)
Applicant's and its owners' (if applicable) or principals'
experience conducting or supporting or plans to conduct institutional
review board (IRB) 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 (5%, not to exceed 2,500 words); whether
the applicant has had any assurance accepted by the U.S. Department
of Health and Human Services indicating the applicant's commitment
to complying with 45 CFR Part 46 (5%) and whether the applicant has
a research collaboration or partnership agreement in effect with an
accredited U.S. school of medicine or osteopathic medicine with experience
conducting cannabis-related research (5%);
(4)
Applicant's and its owners' (if applicable) or principals'
demonstrated commitment or sufficient experience as responsible employers,
defined as the applicant entity being a party to a labor peace agreement
or the applicant entity or its parent company being a party to a collective
bargaining agreement in the regulated cannabis industry for at least
one year prior to application for a cannabis establishment or medical
cannabis establishment license, in an effort to create well-paying
jobs with employee benefits in the municipality (20% in total; five
points for labor peace, full twenty points for collective bargaining
agreement in effect for at least one year);
(5)
Summary of the applicant's and its owners' (if applicable)
environmental impact and sustainability plan (4%, not to exceed 500
words); whether the applicant entity or its parent company has any
recognitions from or registrations with federal or New Jersey State
environmental regulators for innovation in sustainability (3%); and
whether the applicant entity or its parent company holds any certification
under international standards demonstrating that the applicant has
an effective environmental management system or has a designated sustainability
officer to conduct internal audits to assess the effective implementation
of an environmental management system (3%);
(6)
Applicant's
and its owners' (if applicable) or its principals' ties
to the community, demonstrated by at least one shareholder's
proof of residency in Readington Township for five or more years in
the past 10 years or at least one shareholder's continuous ownership
of a business based in Readington Township for three or more years
in the past five years (5%); and
(7)
Applicant's and its owners' (if applicable) or its principals'
demonstrated commitment to diversity in its ownership composition
and hiring practices and whether the applicant entity or its parent
company holds any certifications as a N.J. minority-owned, women-owned,
or veteran-owned business (20% in total; 10 points for one certification
and 20 points for two or more).
F.
Notwithstanding the foregoing competitive application process, a
notification of award and conditional municipal license shall entitle
the recipient applicant to pursue a state permit or license in the
appropriate classification for up to 12 months, which may be extended
at the Township Committee's discretion for an additional six
months for good cause. No license to operate shall be issued until
the applicant has received a state license and satisfied other prerequisites
of municipal licensing. If the recipient of a notice of award and
conditional license has not received a state permit or license within
12 months of the municipality's issuance, unless extended for
good cause, the Township Committee shall issue a new request for applications
and evaluate all applicants for licensure under the above criteria.
C.
Separate fees shall be due for each license applied for (i.e., medical
or adult use cannabis establishment), but classes may be combined
under each type of establishment. (For example, if an adult use cannabis
establishment holds Class I, II and IV licenses, then only one fee
shall be charged for the adult use license.)
D.
If the Township must hire one or more consultants to evaluate a first-time
or renewal application for a license, the applicant will be responsible
for the review fees of the Township's hired consultant(s).
A.
Any municipal license issued pursuant to this chapter shall be valid
for a period of one year from the date of issuance and shall be renewed
in accordance with the provisions of this chapter.
B.
The Township Committee may, at its discretion, adjust the renewal
date of the municipal license to correlate with an applicant's
state licensing and renewal schedule.
C.
Renewal of any license shall be governed by code amendments, additional
restrictions or changes in regulations adopted since the previous
license was issued or renewed.
D.
Transfer of ownership of any municipal license or change of location
of any license or modification to expand a licensed premises shall
be subject to municipal approval pursuant to the same qualification
requirements as in the originally approved application. A change of
location shall not be approved unless the location has been specifically
permitted by the Township's land use ordinance.
E.
Except where the Township has received a complete renewal application
along with the requisite fees, and has issued a license renewal, it
shall be unlawful for any person to manufacture, cultivate, sell,
distribute, transfer, transport or otherwise remove cannabis or cannabis
products from the premises of any licensee after the expiration date
recorded on the face of the license.
F.
Any suspension, revocation or nonrenewal of the municipal permit
or license pursuant to CREAMMA and/or the regulations promulgated
thereto, as may be amended from time-to-time, or any suspension, revocation
or nonrenewal of a CRC-issued license or permit for the establishment,
or adjudication of felony criminal guilt by the establishment or its
principals shall constitute an automatic revocation of the municipal
license for the establishment, at which time operation of the establishment
must cease. With respect to a suspension, revocation or nonrenewal
of a Township or CRC-issued permit or license, the establishment may
not reinstate its municipal license until the Township and/or CRC
permit or licenses are reinstated. A criminal adjudication voids and
prohibits any future reinstatement of Township permits/licenses.
A.
Hours of operation by licensees shall be from 8:00 a.m. to 8:00 p.m.
only, with the exception of on-site security.
B.
Unless otherwise permitted by state labor laws, no persons under
the age of 21 shall be allowed in a cannabis/medical cannabis establishment
unless accompanied by a parent or legal guardian.
C.
No cannabis shall be smoked, eaten or otherwise consumed or ingested
on the premises of any cannabis/medical cannabis establishment. Smoking,
consumption or ingestion of cannabis shall not be permitted at any
public or quasi public place.
D.
A Cannabis/Medical Cannabis establishment shall be secured and have
full-time security protocols in place subject to review and approval
from the Readington Township Police Department which shall include
at least a twenty-four-hour security video system with footage to
be kept for at least 30 days and a vault for storage of money when
the cannabis/medical cannabis establishment is closed. Prior to the
commencement of any operations, a cannabis/medical cannabis establishment
must first obtain written approval of its protocols from the Readington
Township Police Chief or the Chief's designee. The Readington
Township Police Chief or Chief's designee, shall have the authority
to require additional safety and security measures.
E.
Cannabis plants, products and paraphernalia shall not be visible
from any exterior windows, nor shall the existence of cannabis within
a building be perceptible from the exterior of the building as viewed
from a street or residence.
F.
All operations related to the manufacturing, cultivation and processing
of cannabis, including the disposal of cannabis waste, shall be performed
in a fully-enclosed space within a building. Shipping and receiving
may occur within exterior locations closely related to the building
that are designated for shipping and receiving.
G.
Greenhouse lighting shall not be visible from the exterior of the
building.
H.
The licensee shall be in compliance with all Township regulations
pertaining to odor control as contained within the Township's
Land Development ordinances; specifically, any odors generated inside
the facility shall not be detectable by a person of reasonable sensitivity
anywhere on adjacent property or within adjacent public rights-of-way.
I.
A cannabis/medical cannabis establishment shall provide to the Readington
Township Police Department and its Dispatch Office, Office of Emergency
Management Coordinator, and the Fire Code Official with the name,
email address and twenty-four-hour phone number of the responsible
staff person for the cannabis/medical cannabis establishment to notify
in the event of suspicious activity or an emergency.
J.
In no event shall a cannabis/medical cannabis establishment in the
Township of Readington be open to the public.
K.
Readington Township's Health Department, Police Department,
Construction Code Official, Zoning Officer and/or Fire Code Official
shall, from time to time, make an inspection of the cannabis/medical
cannabis establishment for the purpose of determining whether the
provisions of this section are being complied with. It shall be unlawful
for a licensed cannabis/medical cannabis establishment to refuse to
allow such inspection or to hinder such inspection.
L.
A cannabis/medical cannabis establishment shall furnish the Township
with copies of any documents issued by any outside agencies (including,
but not limited to county, state and/or federal governmental agencies)
having jurisdiction over same. These documents shall be provided to
the Township within 10 business days of their issuance and shall include,
but are not limited to, inspection reports, operating permits, administrative
approvals, administrative orders, and notices of violation.
A.
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:
(1)
First offense: Up to $1,000 per violation per day;
(2)
Second offense: Up to $2,500 per violation per day:
(3)
Third violation shall result in a summary suspension.
(4)
If a second offense is on-going for more than 10 days, a summary
suspension may be imposed.
(5)
Each day a violation continues after notification that it exists
shall constitute a separate offense.
B.
Summary suspension. Notwithstanding the foregoing section, when the
Township Committee, or its authorized representative or designee,
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 Township Committee, or its authorized
representative or designee, may enter a summary suspension order for
the immediate suspension of such license pending further investigation.
(1)
The summary suspension order shall be in writing and shall state
the reason(s) therefore. The licensee shall be afforded an opportunity
for an appeal process as outlined herein.
(2)
The Township Committee shall convene a review panel consisting of
the Administrator, a second administrative officer designated by the
Township Committee, and the Chief of Police. The matter shall be scheduled
within 30 days of the date of the order.
(4)
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 Township
may issue fines up to, but not to exceed, $2,500 per separate offense
per day, and/or suspension of license for a period not to exceed six
months.
Any license issued under this chapter may be suspended or revoked
for violation of any provisions of the Township Code or any applicable
ordinance, statute or any of the rules or regulations promulgated
by the CRC. Suspension or revocation of a license shall be in addition
to any other penalty which may be imposed for a violation of Township
ordinances. No refund will be issued by the Township for any suspended
or revoked license.
The Township Committee may suspend or revoke any license if
the corresponding state license or permit for the subject location
is expired, surrendered, suspended or revoked. In that event, operation
must cease until the license(s) and municipal zoning permit are reinstated
or reissued.
[Added 2-7-2022 by Ord.
No. 03-2022]
A.
Purpose. The purpose of this section is to implement N.J.S.A. 40:48I-1 and 24:6I-46 of the New Jersey Cannabis Regulatory Enforcement Assistance and Marketplace Modernization Act ("CREAMMA") which authorizes a municipality to impose cannabis transfer and user taxes on cannabis for adult use, but not medical use. All terms herein shall have the same meaning as found in N.J.S.A. 24:6I-33, Section 3 of CREAMMA and Chapter 88 of the Code, unless otherwise stated.
B.
Cannabis transfer tax.
(1)
Except for that portion of sales of "medical cannabis" defined as
such under the the "Jake Honig Compassionate Use Medical Cannabis
Act" (N.J.S.A. 24:6I-1, et seq.) (the "Honig Act"), there shall be
a transfer tax imposed on the receipts from the sale of cannabis and
cannabis items from the following licensed person(s) or entity(ies)
located in Readington Township:
(a)
From a cannabis cultivator to another cannabis cultivator; and/or
(b)
From one cannabis establishment to another cannabis establishment;
and/or
(c)
By any combination thereof.
|
The transfer tax rate shall be assessed at 2% of the receipts
from each sale by a cannabis cultivator and/or cannabis manufacturer
and shall be assessed at 1% of the receipts from each sale by a cannabis
wholesaler.
|
(2)
The cannabis transfer tax shall be in addition to any other tax or
fee imposed pursuant to statute or local ordinance or resolution by
any governmental entity with regard to cannabis.
(3)
The transfer 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.
C.
Cannabis user tax.
(1)
Except for that portion of sales of "medical cannabis" defined as
such under the the "Jake Honig Compassionate Use Medical Cannabis
Act" (N.J.S.A. 24:6I-1, et seq.) (the "Honig Act"), there shall be
a user tax imposed on any concurrent license holder operating more
than one cannabis establishment.
(2)
The user tax rate shall be assessed at 2% on any concurrent license
holder 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 this chapter, from the license holder's establishment
that is located in the Township of Readington to any of the other
license holder's establishments, whether located in the Township
of Readington or another municipality.
(3)
The user tax shall be in addition to any other tax or fee imposed
pursuant to statute or local ordinance or resolution by any governmental
entity with regard to cannabis. Any transaction for which the user
tax is imposed is exempt from the tax imposed under the Sales and
Use Tax Act.[1]
[1]
Editor's Note: See N.J.S.A. 54:32B-1 et seq.
(4)
The 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.
D.
Collection of cannabis transfer and user tax.
(1)
Every cannabis establishment required to collect the transfer and
use taxes imposed by this section shall be personally liable for the
transfer and use tax imposed, collected or required by this section
and CREAMMA and shall have the same rights to collection of said tax
as afforded by CREAMMA. In the event a cannabis establishment institutes
an action or proceeding to collect transfer or use taxes from another
cannabis establishment or consumer, as applicable, the CFO of the
Township shall be joined as a party in any such action or proceeding.
(2)
No cannabis establishment required to collect the transfer and user
taxes imposed by this section 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 the consumer or that the
transfer tax or user tax will be refunded to the cannabis establishment
or to the consumer.
(3)
Remittance and reporting of cannabis taxes.
(a)
The taxes imposed by this section shall be paid to the Township
(to the attention of its Chief Financial Officer) on a quarterly basis
no later than the 15th day of the month following the last month of
the quarter along with a report certified as true and accurate by
the cannabis establishment's Chief Financial Officer, Controller
or other similarly situated person showing the gross revenues for
the cannabis establishment (separating the gross revenues of the medical
cannabis) for each month of the quarter.
(b)
A cannabis establishment operating within the Township of Readington
shall file on an annual basis no later than April 15th of each year,
a financial report from an independent accountant certifying as to
the annual revenues for the preceding year, distinguishing the medical
cannabis from the adult use cannabis.
(4)
Delinquent taxes.
(a)
If the transfer tax or user tax is not paid when due, the unpaid
balance and any interest accruing thereon, shall be a lien on the
parcel of real property comprising the cannabis establishment's
premises.
(b)
The lien shall be superior and paramount to the interest in
the parcel or any owner, lessee, tenant, mortgagee, or other person,
except the lien of municipal taxes, and shall be on parity with and
deemed equal to the municipal lien on the parcel for unpaid property
taxes due and owing in the same year.
(c)
The municipality shall file in the office of its Tax Collector
a statement showing the amount and due date of the unpaid balance
of cannabis taxes 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.
(d)
The annual municipal permit issued pursuant to this chapter
shall not be renewed for the cannabis establishment should any transfer
or user tax pursuant to this section be delinquent.
(5)
A copy of this section shall be transmitted to the NJ State Treasurer
and to every cannabis establishment within the Township of Readington.
