Pursuant to Section 31b of the New Jersey Cannabis Regulatory,
Enforcement Assistance, and Marketplace Modernization Act (P.L. 2021,
c. 16), all cannabis facilities are hereby prohibited from locating
in Wharton, except as provided herein and subject to the number, time,
manner and land use restrictions set forth herein, as may be amended
from time to time.
If federal laws or state regulators change any current regulations,
the Borough Council reserves the right to amend this chapter as appropriate
for reasons of public safety and to realize revenue, its intended
purpose.
Nothing in this chapter proposes or intends to require any individual
or entity to engage in conduct that violates federal law, or exempts
any individual or entity from any requirement of federal law, or poses
any obstacle to federal enforcement of federal law.
Certain words and phrases used in this chapter are defined for
the purposes hereof as follows:
ALTERNATIVE TREATMENT CENTER or ATC
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 seq.) to operate as a medical cannabis cultivator, medical
cannabis manufacturer, medical cannabis dispensary, or clinical registrant,
as well as any alternative treatment center deemed, pursuant to Section
7 of the 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 or any alternative treatment center authorized
by the CRC to sell personal use cannabis to retail consumers.
CANNABIS
All parts of the plant Cannabis sativa L., 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 P.L. 2016, c.
16 for use in cannabis products as set forth in this 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 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.); 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, or P.L. 2001,
c. 114 (N.J.S.A. 2C:35B-1 et seq.), or marijuana as defined in Section
2 of P.L. 1970, c. 226 (N.J.S.A. 24:21-2) and applied to any offense
set forth in the New Jersey Controlled Dangerous Substances Act, P.L.
1970, c. 226 (N.J.S.A. 24:21-1 et seq.); or 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.).
CANNABIS CULTIVATOR
Any licensed person or entity that grows, cultivates, or
produces cannabis in this state and sells and transports this cannabis
to other cannabis cultivators or usable cannabis to cannabis manufacturers,
or cannabis wholesalers or cannabis retainers, but not to consumers.
CANNABIS DELIVERY SERVICE
Any licensed person or entity that provides courier services
for consumer purchasers 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.
CANNABIS DISTRIBUTOR
Any licensed 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 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.
CANNABIS ESTABLISHMENT
A cannabis cultivator, a cannabis manufacturer, a cannabis
wholesaler, a cannabis retailer, or a medicinal cannabis dispensary.
CANNABIS FACILITY
Any business engaged in the business of cannabis, including,
but not limited to, cultivating, manufacturing, wholesaling, distributing,
retailing, or delivering cannabis or cannabis products.
CANNABIS ITEM
Any usable cannabis, cannabis product, cannabis extract,
and any other cannabis resin.
CANNABIS PRODUCT
Concentrated cannabis products and cannabis products that
are composed of cannabis and other ingredients and are intended for
use or consumption, such as, but not limited to, edible products,
ointments, and tinctures.
CANNABIS MANUFACTURER
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.
CANNABIS RETAILER
Any licensed person or entity that purchases or otherwise
obtains usable cannabis from cannabis cultivators or 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 also
includes an ATC authorized by the CRC to sell personal use cannabis
to consumers and/or a medical cannabis dispensary. A cannabis retailer
shall also accept personal use 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.
CANNABIS WHOLESALER
Any licensed 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.
MEDICAL CANNABIS DISPENSARY
A business licensed by the State of New Jersey to sell medical
cannabis to registered qualifying patients and their authorized caregivers.
This term shall include the organization's officers, directors,
board members and employees.
A cannabis facility issued a permit or license by the State
of New Jersey and operating in the Borough under this chapter shall
at all times comply with the following operational requirements:
A. A cannabis facility shall comply with all regulatory rules promulgated
by the Cannabis Regulatory Commission, laws of the State of New Jersey,
laws of Morris County, and laws or ordinances of the Borough of Wharton.
B. A cannabis facility shall comply with the Zoning Code, the Building
Code, and the Property Maintenance Code at all times.
C. A cannabis facility shall not be located within 1,000 feet of a school
or child-care center.
D. Prior to the operation of any cannabis facility, a permit or license
must be obtained from the State of New Jersey and from the Borough
of Wharton for the applicable type(s) of cannabis facility. No cannabis
facility shall be permitted to operate without state and municipal
permits or licenses.
E. The consumption of any cannabis items shall be prohibited on the
cannabis facility's premises.
F. State and municipal permits or licenses shall be prominently displayed
inside the permitted premises in a location where it can be easily
viewed by law enforcement and administrative authorities.
G. No person under the age of 18 shall be permitted to enter the premises
of a cannabis facility.
H. Cannabis facilities shall have equipment to mitigate odor.
I. Outside generators and other mechanical equipment used for any kind
of power supply, cooling, or ventilation shall be enclosed and have
appropriate baffles, muffles, and/or other noise reduction systems
to mitigate noise pollution.
J. No cannabis facility may open to customers for business before 8:00
a.m. or remain open to customers for business after 10:00 p.m.
K. All cannabis facilities shall be secured in accordance with State
of New Jersey statutes and regulations; shall have a round-the-clock
surveillance system, 365 days a year; shall have uniformed local police
presence on site at all times during operating hours; and shall also
include:
(1)
Security surveillance cameras installed to monitor all entrances,
along with the interior and exterior of the permitted premises;
(2)
Burglary alarm systems which are professionally monitored and
operated 24 hours a day, seven days a week;
(3)
All security recordings and documentation shall be preserved
for at least 30 days and made available to law enforcement upon request
for inspection.
L. All cannabis, in whatever form, stored at the permitted premises
shall be kept in a secure manner and shall not be visible from outside
the permitted premises.
M. The amount of cannabis on the permitted property and under the control
of the permit holder, owner or operator of the cannabis facility shall
not exceed the amount permitted by the state license.
N. Cannabis offered for sale and distribution must be packaged and labeled
in accordance with state law.
O. No pictures, photographs, or drawings of cannabis or cannabis paraphernalia
shall appear on the outside of any licensed premises nor be visible
outside of the licensed premises on the licensed property.
P. The words "marijuana," "cannabis" or any similar or slang words shall
not appear on the outside of the licensed premises nor be visible
outside of the licensed premises on the licensed property.
Q. Any signage must first be approved by the Building/Zoning Department.
R. No person operating or employed by a cannabis facility shall provide
or otherwise make available cannabis to any person who is not legally
authorized to possess the same under state law.
S. The owner and operator of a cannabis facility shall use lawful methods
in controlling and disposing of waste or by-products from any activities
allowed under the state license or permit.
T. Cannabis may be transported within the Borough under this chapter
by a company licensed to do so by the state and to effectuate its
purpose only:
(1)
In a manner consistent with all applicable state laws and rules,
as amended;
(2)
In a secure manner designed to prevent the loss of the cannabis;
(3)
Using vehicles that do not have exterior markings, including
the words "marijuana," "cannabis," or any similar or slang words;
pictures or other renderings of the cannabis plant; advertisements
for cannabis or for its sale, transfer, cultivation, delivery, transportation
or manufacture, or any other word, phrase or symbol indicating or
tending to indicate that the vehicle is transporting cannabis.
U. No vehicle, trailer, or otherwise moveable structures may be used
for the ongoing or continuous storage of cannabis but may only be
used incidental to, and in furtherance of, the transportation of cannabis
and cannabis products.
Every application or renewal application for a license to operate
a cannabis facility shall be submitted to the governing body of the
Borough of Wharton or such other Borough entity as may be determined
by the Borough Council. Applicants shall submit five copies of an
initial application to be forwarded to the Borough Council, Police
Department, Fire Prevention, and Building Department.
A. The Borough reserves the right to reject any and all applications
to operate a cannabis facility.
B. Persons applying to operate a cannabis facility assume the risk that
all or part of any particular category of license authorized under
this chapter may be cancelled at any time prior to issuance.
C. The Borough may issue no more than one cannabis retailer license.
D. Every applicant shall specify the location where the cannabis facility
will operate. A separate license shall be required for each location
at which a cannabis facility operates within the Borough.
E. Cannabis facilities and the financial books and records necessary
to determine applicable taxes maintained and created by cannabis facilities
are subject to inspection by the Borough Council, its officials, and
its related entities.
F. The governing body shall establish a reasonable application period
and deadline for all applications, but applications that supply the
required information and fees herein shall be permitted to be submitted
on the effective date hereof.
G. The Borough shall provide a final determination within 30 days of
an application being deemed complete. Upon denial of an application,
the Borough shall notify the applicant, in writing, of the specific
reason for its denial.
H. A cannabis facility license application shall be deemed incomplete
and shall not be processed by the Borough until all documents and
application fees are submitted. To be deemed complete, all applications
shall be accompanied by the following:
(1)
The applicant shall submit proof that the applicant has or will
have lawful possession of the premises proposed for the cannabis facility,
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 applicant contingent upon successful licensing.
(2)
The location proposed for licensing by the applicant shall comply
with all applicable municipal zoning laws and the location restrictions
set forth in this chapter.
(3)
The applicant shall submit, to the satisfaction of the Borough
and the Chief Financial Officer or his designee, proof of financial
capability to open and operate the cannabis facility for which the
applicant is seeking a license. Standards for proof of financial capability
shall be determined by the Borough.
(4)
The applicant shall submit a $5,000 nonrefundable application
fee.
(5)
The applicant shall submit the required $10,000 licensing and
annual registration fee to the Borough, which shall be refunded in
the event the applicant is denied a license by the state.
(6)
The applicant shall submit a summary of the applicant's
plans for storage of products and currency, physical security, video
surveillance, security personnel, and visitor management.
(7)
The applicant shall submit a workforce development plan.
(8)
The applicant shall indicate whether the applicant entity or
its parent company holds any certifications as a New Jersey minority-owned,
women-owned, or veteran-owned business.
(9)
The applicant shall indicate whether the applicant entity is
applying for state licensure with the Cannabis Regulatory Commission
as a microbusiness applicant.
(10)
The applicant shall provide a graphic rendering of its proposed
signage.
(11)
The applicant shall submit any other additional information
requested by the Borough in its evaluation of their application.
I. The Borough may deny any application that is lacking any required
element or exhibit or that is not organized in the required format.
J. The Borough may deny any application due to an applicant's nonresponsiveness
to the Borough's request for additional information.
K. The applicant and the application shall otherwise comply with any
and all qualification standards set forth in the state and municipal
laws or regulations.
L. In the event there are multiple applications for the same cannabis
facility license that are deemed complete before all available licenses
are issued, the Borough shall evaluate such license applications deemed
complete and issue a notification of award after consideration and
evaluation of the applicants, giving preference to: 1) applicants
that have qualifications and experience operating in cannabis, with
greater preference to applicants that have experience operating cannabis
businesses within the State of New Jersey; and 2) the applicant's
financial position and demonstrated ability to commence operations.
M. Notwithstanding the foregoing competitive application process, a
notification of award and conditional municipal license shall entitle
the recipient applicant to pursue a state permit, license, or other
approvals in the appropriate classification for up to 12 months, which
may be extended in the governing body's discretion for an additional
six months for good cause. No license to operate shall issue until
the applicant has received a state permit and satisfied other prerequisites
of municipal licensure. If the recipient of a notice of award and
conditional license has not received a state permit or license within
12 months from issuance, unless extended for good cause, the governing
body shall issue a new request for applications and evaluate all applicants
for licensure under the above criteria.
The consumption of cannabis in any form is prohibited in all
public spaces within the Borough of Wharton.
A. Nothing in this chapter shall prohibit a person, employer, school,
hospital, recreation or youth center, correction facility, corporation
or any other entity who occupies, owns or controls private property
from prohibiting the possession, consumption, use, display, transfer,
distribution, sale, transportation, or growing of cannabis, marijuana,
or hemp on or in that property.
B. Nothing in this chapter is intended to permit the transfer of cannabis,
marijuana, or hemp, with or without remuneration, to a person under
the age of 21.
C. Nothing in this chapter is intended to allow driving under the influence
of cannabis or marijuana or to supersede laws related to driving under
the influence of cannabis or marijuana.
D. Nothing in this chapter is intended to require an employer to permit
or accommodate the use, consumption, possession, transfer, display,
transportation, sale or growing of cannabis, marijuana, or hemp in
the workplace or to affect the ability of employers to have policies
restricting the use of cannabis or marijuana by employees.
Every cannabis facility required to collect a transfer tax imposed
by ordinance pursuant to this chapter shall be personally liable for
the transfer tax or user tax imposed, collected, or required to be
collected under this chapter. Any cannabis facility shall have the
same right with respect to collecting the transfer tax from another
cannabis facility or the consumer as if the transfer 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 facility or consumer,
as if the transfer tax was a part of the purchase price of the personal
use cannabis or personal use cannabis item, or equivalent value of
the transfer of the personal use cannabis or personal use cannabis
item, and payable at the same time.
All revenues collected from a transfer tax imposed by ordinance
pursuant to this chapter shall be remitted to the Chief Financial
Officer or his designee in the manner prescribed herein. The Chief
Financial Officer or his designee shall collect and administer any
transfer tax imposed by ordinance pursuant to this chapter. The municipality
may 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 imposed by ordinance pursuant to this chapter is not paid as and
when due by a cannabis facility, the unpaid balance, and any interest
accruing thereon, shall be a lien on the parcel of real property comprising
the cannabis facility'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 lien shall be enforced as a municipal lien in the same
manner as all other municipal liens are enforced.
The Chief Financial Officer is charged with the administration
and enforcement of the provisions of this chapter and is empowered
to prescribe, adopt, promulgate and enforce rules and regulations
relating to any matter pertaining to the administration and enforcement
of this chapter, including provisions for the reexamination and corrections
of declarations and returns, and of payments alleged or found to be
incorrect, or as to which an overpayment is claimed or found to have
occurred, and to prescribe forms necessary for the administration
of this chapter. Should a cannabis facility fail or refuse to provide
adequate information to the Chief Financial Officer or his designee
to determine the amount of tax due, the Chief Financial Officer or
his designee may use information provided to the Chief Financial Officer
or his designee from other sources (i.e., the Commission or Department
of Treasury) to determine the amount of tax liability.
Taxpayers liable for the transfer tax are required to keep such
records as will enable the filing of true and accurate returns or
the tax and such records shall be preserved for a period of not less
than three years from the filing date or due date, whichever is later,
in order to enable the Chief Financial Officer or his designee to
verify the correctness of the declarations or returns filed. If records
are not available in the municipality to support the returns which
were filed or which should have been filed, the taxpayer will be required
to make them available to the Chief Financial Officer or his designee
either by producing them at a location in the municipality or by paying
for the expenses incurred by the Chief Financial Officer or his designee
in traveling to the place where the records are regularly kept.
Delinquent payments under this chapter shall be subject to the
interest rate imposed upon unpaid taxes. If a cannabis facility fails
to pay the tax to the Borough of Wharton, the cannabis facility's
license may be revoked.
The returns filed by taxpayers, and the records and files of
the Chief Financial Officer or his designee respecting the administration
of the transfer tax, shall be considered confidential and privileged,
and neither the municipality nor any employee or agent engaged in
the administration thereof or charged with the custody of any such
records or files, nor any former officer or employee, nor any person
who may have secured information therefrom, shall divulge, disclose,
use for their own personal advantage, or examine for any reason other
than a reason necessitated by the performance of official duties any
information obtained from the said records or files or from any examination
or inspection of the premises or property of any person. Neither the
Chief Financial Officer nor any employee engaged in such administration
or charged with the custody of any such records or files shall be
required to produce any of them for the inspection of any person or
for use in any action or proceeding except when the records or files
or the facts shown thereby are directly involved in an action or proceeding
under the provisions of the State Uniform Tax Procedure Law or of the tax law affected or where the determination
of the action or proceeding will affect the validity or amount of
the claim of the municipality under the tax provisions of this chapter.
The Chief Financial Officer may initiate an audit by means of
an audit notice. If, as a result of an examination conducted by the
Chief Financial Officer or his designee, a return has not been filed
by a taxpayer or a return is found to be incorrect and transfer taxes
are owed, the Chief Financial Officer is authorized to assess and
collect any tax due. If no return has been filed and tax is found
to be due, the tax actually due may be assessed and collected with
or without the formality of obtaining a return from the taxpayer.
Deficiency assessments (i.e., where a taxpayer has filed a return
but is found to owe additional tax) shall include taxes for up to
three years to the date when the deficiency is assessed. Where no
return was filed, there shall be no limit to the period of assessment.
Any applicant for a cannabis facility license shall coordinate
with the Chief of Police, or his or her designee, regarding the measures
to be taken to ensure the security of the facility and the safety
of the public and facility employees. Such measures may include, but
are not limited to, facility access controls, surveillance systems,
and site lighting consistent with the requirements of state law.
Subject to the requirements and limitations of state law, the
municipality shall have the reasonable right to inspect the premises
of any approved cannabis retail or cannabis delivery facility during
its regular hours of operation to ensure compliance with local ordinances
and regulations.
Operation of any prohibited or unpermitted cannabis facility
within the Borough in violation of the provisions of this chapter
is hereby declared a public nuisance and shall be abated pursuant
to all available remedies.
Violations of the provisions and requirements set forth or referenced
herein may be enforced in any manner the municipality deems appropriate.
In addition to any other remedies, the Borough may institute proceedings
for injunction, mandamus, abatement or other appropriate remedies
to prevent, enjoin, abate or remove any violations of this chapter.
The rights and remedies provided herein are civil in nature. The imposition
of a fine shall not exempt the violator from compliance with the provisions
of this chapter.
Unless specifically defined otherwise herein, any term used
herein shall incorporate the definition of that term in the Act. Any
article, section, paragraph, subsection, clause, or other provision
of the Borough of Wharton Code inconsistent with the provisions of
this chapter is hereby repealed to the extent of such inconsistency.
No ordinance, regulation, or interpretation thereof shall conflict
with the Act. If any section, paragraph, subsection, clause, or provision
of this chapter shall be adjudged by a court of competent jurisdiction
to conflict with the Act or otherwise be invalid, such adjudication
shall apply only to the section, paragraph, subsection, clause, or
provision so adjudged, and the remainder of this chapter shall be
deemed valid and effective.
After introduction of this article, the Borough Clerk shall
send a copy of this article to the Borough of Wharton Planning Board
for its review and comment. The Borough Clerk shall also send a copy
of this article, upon introduction and adoption, to the Morris County
Planning Board, pursuant to N.J.S.A. 40:55D-16. This article shall
take effect upon its passage and publication and filing with the Morris
County Planning Board and as otherwise provided for by law.