[Amended in entirety by 2-21-2023 by Ord. No. 2023-05. Prior history includes 8-3-2021 by Ord. No. 2021-17
[Amended 2-21-2023 by Ord. No. 2023-05]
Pursuant to the New Jersey Cannabis Regulatory. Enforcement Assistance, and Marketplace Modernization Act (P.L. 2021, c. 16) and N.J.S.A. 40:48I-1a(1), the Township establishes a local cannabis tax of 2% on sales realized by cannabis cultivators (Class I licensees) and cannabis manufacturers (Class II licensees), and 1% for cannabis wholesalers (Class III). The tax percentage is based on the receipts for each sale and is paid directly to the municipality in the manner prescribed by the municipality in § 15-2. The following user and transfer taxes are hereby established on all Cannabis Establishments operating in the Township, at the maximum amount as permitted by the laws of the State of New Jersey or the amounts set forth below, whichever is greater:
a.
A transfer tax of 2% shall be imposed on the gross receipts from
each sale of all cannabis and cannabis items by any cannabis cultivator
or manufacturer; a transfer tax of 1% shall be imposed on the gross
receipts from each sale of all cannabis and cannabis items by any
cannabis wholesaler.
b.
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.
The 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.
d.
In addition, there shall be a 2% user tax imposed on any concurrent
license holder operating more than one Cannabis Establishment.
e.
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 on the license holder's business that is located
in the Township to any other of the license holder's businesses,
whether located in this municipality or any other municipality.
f.
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.
g.
Any transaction for which the user or transfer tax hereinabove is
imposed, is exempt from the tax imposed under the Sales and Use Tax
Act, except for those which generate receipts from the retail sales
by cannabis retailers in the case that the retail sale of cannabis
should become legal in the Township.
[Amended 2-21-2023 by Ord. No. 2023-05]
Pursuant to the New Jersey Cannabis Regulatory, Enforcement
Assistance, and Marketplace Modernization Act (P.L. 2021, c. 16),
the Township is authorized to establish a procedure for the collection
of a local cannabis tax for certain classes of cannabis licenses and
in furtherance of that authority directs holders of State issued cannabis
licenses to pay any such tax authorized to be collected under this
chapter to the Lafayette Chief Financial Officer who will accept said
funds as revenue to the Township. The remittance of Cannabis Taxes
and/or Delinquencies are to be in accordance with the following:
a.
All transfer and user taxes collected by any Cannabis Establishment
pursuant to this chapter shall be remitted to the Township's
Chief Financial Officer on a monthly basis.
b.
Delinquent taxes. If the transfer tax or user tax is not paid when due, the unpaid balance, and any interest accruing thereon per § 15-3, shall be a lien on the parcel of real property comprising the Cannabis Establishment's premises.
c.
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.
d.
The Township 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.
e.
Failure of the Cannabis Establishment to make full payment of the
user and transfer taxes hereinabove imposed shall be grounds for the
immediate revocation and/or termination of any local annual cannabis
license and/or any local annual cannabis.
[Amended 2-21-2023 by Ord. No. 2023-05]
Pursuant to the New Jersey Cannabis Regulatory, Enforcement
Assistance, and Marketplace Modernization Act (P.L. 2021, c. 16),
the Township is authorized to impose interest upon any late payment
of the local cannabis tax as permitted by N.J.S.A. 54:4-67 and in
furtherance of that authority directs the Chief Financial Officer
to impose the rate of interest upon any late payment of the cannabis
tax in accord with the annual resolution adopted by the governing
body fixing the rate of interest to be charged for nonpayment of taxes
or assessments subject to any abatement or discount for the late payment
of taxes as provided by law.
[Added 2-21-2023 by Ord.
No. 2023-05]
a.
Pursuant to Section 31 of the New Jersey Cannabis Regulatory, Enforcement
Assistance, and Marketplace Modernization Act (N.J.S.A. 24:6I-45b),
Class 5 Cannabis Retail is prohibited within the geographic boundaries
of the Township of Lafayette and no State or local licenses shall
be authorized to be issued for same.
b.
Pursuant to Section 31 of the New Jersey Cannabis Regulatory, Enforcement
Assistance, and Marketplace Modernization Act, N.J.S.A. 24:6I-45b,
the operating premises/principal location of any cannabis delivery
service, including any New Jersey licensed Class 6 Cannabis Delivery
Service, is prohibited from being located within the geographic boundaries
of the Township of Lafayette, and no local licenses shall be authorized
to be issued for same. Nothing herein shall be construed to prohibit
the transport or delivery of cannabis items and related supplies within
the Township by a New Jersey licensed Class 6 Cannabis Delivery Service
on private property to a consumer of 21 years of age or older for
personal use from the licensed premises of a Class 6 Cannabis Delivery
Service located outside the geographic boundaries of the Township
in accordance with the Act and the regulations of the Commission.
c.
Pursuant to Section 32 of the New Jersey Cannabis Regulatory, Enforcement
Assistance, and Marketplace Modernization Act, N.J.S.A. 24:6I-21,
all Cannabis Consumption Areas are prohibited from being located or
otherwise operated within the geographic boundaries of the Township
of Lafayette.
[Added 2-21-2023 by Ord.
No. 2023-05]
a.
Prior to commencing and engaging in any cannabis business activities
and uses within the Township permitted by the New Jersey Cannabis
Regulatory Commission pursuant to a State-issued Class 1, 2, 3, or
4 license validly issued in accordance with the Act, any person, business,
and/or organization shall first apply for and secure from the Township
a local annual cannabis license. Except that nothing herein shall
be read or construed to conflict with the statutory provisions as
to Cannabis Delivery Services licensed by the Cannabis Regulatory
Commission. Any preexisting establishment engaging in any medicinal
cannabis business activity within the Township prior to the enactment
of N.J.S.A. 24:6I-31 et seq., who subsequently obtains a license from
the New Jersey Cannabis Regulatory Commission as a Class 1, Class
2, Class 3, Class 4, or otherwise is licensed as a vertical integrated
licensee shall also apply for and secure from the Township a local
annual cannabis license. Additionally, any Class 1, Class 2, Class
3 or Class 4 licensee obtaining State and/or local approvals to operate
within the Township prior to the effective date of this chapter shall
also apply for, and secure from the Township, a local annual cannabis
license.
b.
The Township Committee shall begin accepting applications for Class
1, 2, 3, or 4 local annual cannabis licenses 15 days following final
passage of this chapter.
c.
The initial local annual cannabis license shall be valid until December
31, 2023. Thereafter the period of each annual local Cannabis Establishment
license shall commence on January 1 and expire on December 31 of the
calendar year.
d.
By no later than December 1 of any existing license year, the licensee
shall be required to file an application for the renewal of a local
annual cannabis license to be authorized to continue operation as
a Class 1, 2, 3, or 4 Cannabis Establishment within the Township.
e.
All local annual cannabis licenses shall be conditional, and shall
remain subject to all State and local laws and regulations. Failure
of any licensee to comply with such applicable laws shall be grounds
for revocation and/or nonrenewal of the local annual cannabis license
by the Township Committee.
f.
The initial application fee for each local annual cannabis license,
of each class-type, shall be $5,000 and the renewal application fee
shall be $2,500. In addition, an escrow shall be established with
the Township by the licensee for Township administrative and professional
fees and costs relating to the application and oversight during the
term of the license.
g.
Unless the Township issues a license renewal, it shall be unlawful
for any person to manufacture, sell, distribute, transfer, transport,
or otherwise remove cannabis or cannabis products/items from the premises
of any Cannabis Establishment after the expiration date recorded on
the face of the license.
h.
All local annual cannabis licenses shall be nontransferrable. All
local annual cannabis licenses shall be specific to the property location
authorized and approved by the Township.
i.
The licensed premises of all licensees shall be subject to unannounced
inspections by designated representatives of the Township, including
members of the Township Committee, the Zoning Officer, the Township
Engineer, the Land Use Board Engineer, and the Construction Official.
Access shall be permitted by the designated representative(s) on demand
by the Township's authorized representative.
[Added 2-21-2023 by Ord.
No. 2023-05]
a.
Application Fee. The applicant shall submit an application to the
Office of the Municipal Clerk, under oath on a form furnished by the
Township of Lafayette, with an application fee of $5,000, which fee
shall be nonrefundable to the extent it has been expended toward the
Township's administrative, professional, and other costs for
the application review process.
b.
Annual License Renewal Fee. The annual license renewal fee for successful
applicants operating cannabis establishments in the Township of Lafayette
shall be implemented as required in accordance with the following
fee schedule, which shall be refunded in the event the applicant does
not receive an annual license:
c.
Upon the receipt of an application, the Office of the Municipal Clerk
shall transmit the application to the Mayor and the Township Committee
for review of the application.
d.
The 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 Clerk and transmitted for review until
all documents and application fees are submitted. To be deemed complete,
all applications shall be accompanied by the following:
1.
The name and home address of the applicant. If the applicant is not
a natural person, the applicant shall submit a statement setting forth
the names and home addresses of all stockholders in the corporation
or partnership who own 10% or more of its stock, of any class or of
all individual partners in the partnership who own a 10% or greater
interest therein, as the case may be. If one or more such stockholder
or partner is itself a corporation or partnership, the stockholders
holding 10% or more of that corporation's stock, or the individual
partners owning 10% or greater interest in that partnership, as the
case may be, shall also be listed with its home address. The disclosure
shall be continued until names and home addresses of every noncorporate
stockholder, and individual partner, exceeding the 10% ownership criteria
has been listed.
2.
The name of any other business entities in which any of the individuals
identified pursuant to paragraph d1 of this provision have or have
had an ownership interest which: (i) cultivates, manufactures, wholesales
or dispenses cannabis or cannabis products; (ii) invests or finances
in any such entity; or (iii) is regulated by any governmental entity.
3.
A copy of the license issued by the Cannabis Regulatory Commission
authorizing the applicant to operate as a Licensed Cannabis Establishment
with a copy of all application materials and documents submitted to
the Commission for a license.
4.
An affidavit from the applicant attesting to and accompanied by documentary
proof of compliance with all state and local laws regarding affirmative
action, antidiscrimination and fair employment practices. The applicant
shall also certify under oath that they will not and shall not discriminate
based on race, color, religion (creed), gender, gender expression,
age, national origin (ancestry), disability, marital status, sexual
orientation, or military status, in any of its activities or operations.
5.
Plans prepared by a duly licensed architect, engineer, or planner
which shall depict the layout and design for the proposed location
of the Licensed Cannabis Entity within the Township.
The required plans shall depict the proposed security measures
for the location. The plans shall be deemed confidential consistent
with state law.
The applicant shall also provide either a lease agreement or
agreement of sale for the property where the applicant intends to
operate the Licensed Cannabis Entity. The lease agreement or agreement
of sale may be contingent upon the applicant's ability to successfully:
(i) obtain a Local License; and (ii) if applicable, obtain approval
from the Lafayette Township Land Use Board.
e.
The Township Committee shall evaluate any and all applicants and
issue a notification of award after consideration and evaluation of
the following criteria:
1.
Qualifications and Experience.
Applicant's owners' or principals' qualifications
and experience operating in highly regulated industries, including
cannabis, healthcare, pharmaceutical manufacturing, and retail pharmacies,
with preference to experience operating such businesses within the
State of New Jersey and where the value of owners' experience
shall outweigh the experience of nonowner principal, submission of
formal business plan for the proposed Licensed Cannabis Entity including
pro forma is required.
2.
Security Plan.
Applicant's 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,
and a summary of the applicant's plans for storage of products
and currency, physical security, video surveillance and digital storage,
security personnel and their qualifications, and visitor and employee
security management.
[Added 2-21-2023 by Ord.
No. 2023-05, amended 11-8-2023 by Ord. No. 2023-16]
a.
Cannabis Establishments shall meet all of the requirements for licensure
pursuant to the New Jersey Cannabis Regulatory, Enforcement Assistance,
and Marketplace Modernization Act, the regulations of the Commission
and all other applicable State and local laws.
b.
Cannabis Establishments shall at all times hold a valid current license
or permit issued by the State of New Jersey, along with a local annual
cannabis license issued by the Township to undertake cannabis activities
at the permitted property. Both the Township and State issued licenses
are valid only for the location identified on the licenses and until
the expiration date printed on the license. Both the Township- and
State-issued licenses shall be prominently displayed inside the permitted
Cannabis Establishment in a location where it can be easily viewed
by State and local law enforcement and administrative authorities.
c.
Cannabis Establishments shall be conducted solely within the confines
of the licensed location of the licensed premises on the permitted
property. No Cannabis Establishment shall be permitted to operate
from a movable, mobile or transitory location, except for the permitted
transportation of cannabis products to and from the facility pursuant
to State law by a licensed Class 6 Delivery Service.
d.
Cannabis Establishments shall comply with the Act, the regulations
of the Commission, and the Township Code, including without limitation
the Zoning Code, the Building Code, and the Housing and Property Maintenance
Code, at all times.
e.
With the exception of loading activities incidental to the operation
of the Cannabis Establishment, all operations shall occur indoors,
within the enclosed licensed building, except as otherwise authorized
for licensed Class 6 Delivery Services only.
f.
All Cannabis Establishments shall at all times adhere to the safety
and security standards and plan established and approved by the Cannabis
Regulatory Commission, including the requirements for the maintenance
of a security system that meets State law requirements. In addition,
all Cannabis Establishments shall also comply with the following provisions:
1.
Cannabis Establishments shall have security systems in place, along
with a continuous recording system that records for a minimum thirty-day
archive. This system shall be shared with the New Jersey State Police
as may be necessary.
2.
Cannabis Establishments shall provide the Township and the New Jersey
State Police Augusta barracks with the name and telephone number of
one staff person to notify during operating hours, and the name and
cellphone number of at least two staff persons to notify after operating
hours in cases of emergency or suspicious activity.
3.
Outside areas of the premises shall be well-illuminated for safety
and security, but not in a way that is counter to Township Code requirements
for outdoor lighting and screening, or in a way that is obtrusive
to pedestrians, drivers or other users of the public right-of-way.
4.
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, nor shall it be processed, exchanged, displayed
or dispensed outside the confines of the licensed structure of the
premises. No cannabis products shall be visible from a public sidewalk,
public street or right-of-way, or any other public place.
5.
Cannabis Establishments shall properly dispose of all materials and
other substances in a safe and sanitary manner in accordance with
local and State laws, including the rules and regulations of the Cannabis
Regulatory Commission.
6.
Cannabis Establishments shall be equipped with ventilation systems
sufficient in type and capacity to eliminate cannabis odors emanating
from the interior to the exterior of the premises discernible by the
ordinary senses. The ventilation system shall be inspected and approved
by the Township Construction Official and/or the Land Use Board Engineer
if required to meet any condition of approval set forth in any Resolution
of approval granted by the Lafayette Land Use Board.
7.
Cannabis Establishments shall post conspicuous signage inside and
outside the building that consumption of cannabis is prohibited anywhere
on the premises, including the parking area and inside vehicles in
the parking area.
8.
Prohibition on Mobile Structures. Each Cannabis Establishment shall
at all times conduct business within the confines of a licensed premises.
No Cannabis Establishment shall be housed or operated in a vehicle
or any movable or mobile structure. Nothing herein shall be deemed
to apply to or otherwise conflict with the statutory and regulatory
provisions applicable to Cannabis Delivery Service holding a valid
and current license issued by the New Jersey Cannabis Regulatory Commission.
9.
Prohibition of Unregulated Sale of Cannabis. No person shall sell cannabis in the Township of Lafayette without a state license issued by the State of New Jersey Cannabis Regulatory Commission and a municipal license as required by § 15-5, nor shall any person gift cannabis in the Township of Lafayette as part of a sale of another item or items.
[Added 2-21-2023 by Ord.
No. 2023-05]
a.
The emission into the outdoor atmosphere of any volatile organic
compounds, solid particles, liquid particles, vapors and/or gases
in excess of the rates, limits/levels set by the New Jersey Department
of Environmental Protection are hereby prohibited.
b.
Cannabis Establishments are prohibited from causing, permitting,
or allowing to be emitted into the outdoor atmosphere any odors detectable
by the ordinary human senses, substances and/or other air contaminants,
in such quantities and for such duration as are, or tend to be, injurious
to human health or welfare, animal or plant life or property, or would
unreasonably interfere with the enjoyment of life or property on any
public or private property within the Township.
c.
The business/facility location of all Cannabis Establishments shall
have a fully integrated self-contained air treatment, HVAC, ventilation
and exhaust system which shall be regularly maintained and fully operational
and running at all times.
d.
All Cannabis Establishments shall be required to retain a qualified
environmental consultant approved by the Township, who shall be available
to promptly respond to the site in the event of an incident or adverse
event within a reasonable period of time not to exceed 12 hours.
e.
All Cannabis Establishments shall be required to monitor all activities
for the presence and prevention of odors and the maintenance and troubleshooting
of all odor control equipment on a daily basis. All Cannabis Establishments
shall maintain written records of all odor monitoring, equipment maintenance/repairs,
odor investigations, air quality studies and any adverse events, and
odor complaints.
f.
All records as to odor control monitoring, investigations, odor control
equipment maintenance/repairs, air quality studies and adverse events
shall be produced to the Township upon request.
g.
Outside generators and other mechanical equipment used for any kind of power supply, cooling or ventilation shall be enclosed and have appropriate baffles, mufflers, and/or other noise reduction systems to mitigate noise pollution, in accordance with the Township Code, including but not limited to Lafayette Subsection 18-1.4, and applicable State law.
[Added 2-21-2023 by Ord.
No. 2023-05]
a.
Any person(s), firm(s), business(es), corporation(s) and/or other
organization(s), including any licensed Cannabis Establishment, found
in violation of any provision(s) of the Township Code shall be subject
to a civil fine and penalty not exceeding $2,000.
b.
Any violation of the Township Code by a licensed Cannabis Establishment
may be grounds for revocation and/or nonrenewal of any issued local
annual cannabis license. Upon reasonable notice to the licensee by
the Township Clerk, a hearing shall be conducted before the Township
Committee to decide whether sufficient grounds exist to revoke any
and all classes of local annual cannabis licenses issued to the licensee.
The licensee may be permitted to be represented by legal counsel during
the hearing, to present evidence, testimony and witnesses.
c.
Each and every day any person(s), firm(s), business(es), corporation(s)
and/or other organization(s), including any licensed Cannabis Establishment,
remains in violation of the provisions of the Township Code after
the deadline for compliance set forth in any notice of violation issued
by the enforcing officer(s) of the Township, shall be considered a
continuing violation punishable as a separate and distinct offense
and subject to a separate civil fine and penalty for each and every
day the violation continues.
d.
The Municipal Court or Superior Court shall have jurisdiction to
hear and decide any action(s) brought to enforce the provisions of
the Township Code and any final order imposing fines and penalties
for a violation of this code shall be enforceable in the Municipal
Court or Superior Court and collectible as a lien against the property
of the violator in accordance with the Penalty Enforcement Law of
1999, N.J.S.A. 2A:58-10 et seq.
