[HISTORY: Adopted by the Mayor and Council of the Borough
of Swedesboro 5-20-2024 by Ord. No. 5-2024. Amendments noted where
applicable.]
As used in this article, the following terms shall have the
meanings indicated:
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Cannabis retailers shall be permitted, pursuant to this chapter,
only if the following requirements are complied with:
A.
The regulations of this section are subject to the enabling authority
of the State of New Jersey and are subject to compliance with all
statutes and/or regulations adopted by the State of New Jersey or
its instrumentalities. If any provision of this section is inconsistent
with the statutes and/or regulations of the State of New Jersey, the
state statutes and/or regulations shall prevail.
B.
Prior to the operation of any cannabis retailer, a permit or license
must be obtained from the State of New Jersey and from the Borough
of Swedesboro for the cannabis retailer. No cannabis retailer shall
be permitted to operate without state and municipal permits or licenses.
C.
Permitted cannabis retailers shall, at all times, comply with the
terms and conditions of the licensee's cannabis retailer license
for permits or licenses issued by the State of New Jersey and the
Borough of Swedesboro.
D.
No cannabis establishment shall be allowed as a home professional
occupation or home office use as defined in this Code.
E.
No cannabis establishment shall be housed in a vehicle or any movable
or mobile structure.
F.
Smoking/vaping. No cannabis establishment shall permit the smoking
or vaping of cannabis on-premises, indoors or outdoors.
G.
Noise. 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.
H.
Security. All cannabis establishments shall be secured in accordance
with State of New Jersey statutes and regulations; shall have a round-the-clock
video surveillance system, 365 days a year; and shall have trained
security personnel on-site at all times during operating hours.
I.
Hours. No cannabis retailer may open to customers for business before
8:00 a.m. or remain open to customers for business after 10:00 p.m.
A.
Local licensing authority.
(1)
The Borough of Swedesboro is hereby designated to act as the local
licensing authority for the Borough for all cannabis establishments.
Under all circumstances in which state law requires communication
to the Borough by the Cannabis Regulatory Commission or any other
state agency with regard to the licensing of cannabis retailers by
the state, or in which state law requires any review or approval by
the Borough of any action taken by the state licensing authority,
the exclusive authority for receiving such communications and granting
such approvals shall be exercised by the Borough.
(2)
Under no circumstances shall a local license for a cannabis retailer
issued by the Borough be effective until or unless the state has issued
the requisite permits or licenses to operate such a facility. It is
the intent of this chapter that no cannabis retailer may lawfully
operate in the Borough of Swedesboro without the issuance of a state
permit or license and full regulatory oversight of the cannabis establishment
by the Cannabis Regulatory Commission or other state licensing authority
as well as oversight and issuance of a license by the Borough.
B.
Classification of licenses. The Borough, subject to land use approval
and state licensure, may issue the following municipal license to
operate a cannabis establishment:
(1)
Class V: cannabis retailer license.
C.
Maximum number of licenses. The Borough may issue a maximum of two
Class V licenses. Licensure may be, but is not required to be, held
by the same entity or individual, but an entity may not hold more
than one cannabis retailer license. Any license conditionally issued
by the Borough is contingent upon the locally licensed entity's
or individual's subsequent recipient of a state permit or license
of the same class or type of regulated cannabis activity.
D.
Application. Persons wishing to obtain a cannabis retailer license
shall file a license application with the Borough on a standardized
form established by the Borough and available in the Clerk's
office. An 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 retail
location, 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 entrant contingent upon successful licensing.
(2)
The applicant shall submit an affidavit and 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 their activities or operations.
(3)
The location proposed for licensing by the applicant shall comply
with all applicable municipal zoning laws and the location restrictions
set forth in the Borough of Swedesboro Code Book.
(4)
The applicant shall submit, to the satisfaction of the Borough, proof
of financial capability to open and operate the marijuana establishment
for which the applicant is seeking a license. Proof of financial capability
can be in the form of a five-year business pro-forma, business financial
statements and/or something equivalent.
(5)
The applicant shall submit all required nonrefundable fees for the
application and conditional license in accordance with the following
fee schedule:
(a)
Class V: $10,000 cannabis retailer license.
(6)
The applicant shall submit all annual registration fees required
in accordance with the following fee schedule, which shall be refundable
in the event the applicant does not receive a license:
(a)
Class V: $10,000 per year cannabis retailer license.
(7)
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.
(8)
The applicant and the application shall otherwise comply with any
and all qualification standards set forth in the state and Borough
laws or regulations.
(9)
In the event there are multiple applicants for a license, the Borough
shall evaluate all applicants and issue a notification of award after
consideration and evaluation of the following criteria:
(a)
Applicant's owners' or principals' qualifications
and experience operating in highly regulated industries, including
cannabis, health care, pharmaceutical manufacturing, and retail pharmacies,
with preference to experience operating such businesses within the
State of New Jersey and/or another state within the United States
and where the value of owners' experience shall outweigh the
experience of nonowner principals (20%, not to exceed 2,500 words);
(b)
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
(5%, not to exceed 1,000 words), and a summary of the applicant's
plans for storage of products and currency, physical security, video
surveillance, security personnel, and visitor management (5%, not
to exceed 2,500 words);
(c)
Applicant's or its owners' experience conducting or
supporting or plans to conduct institutional review board-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%);
(d)
Applicant's or its owners' demonstrated commitments
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 license, in an effort
to create well-paying jobs with employee benefits in the municipality
(20% in total; five points for labor peace, full 20 points for collective
bargaining agreement in effect for at least one year);
(e)
Summary of the applicant's 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
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%);
(f)
Applicant's ties to the host community, demonstrated by
at least one shareholder's proof of residency in the Borough
for five or more years in the past 10 years or at least one shareholder's
continuous ownership of a business based in Borough for five or more
years in the past 10 years (5%); and
(g)
Applicant's demonstrated commitment to diversity in its
ownership composition and hiring practices and whether the applicant
entity or its parent company holds any certifications as an NJ minority-owned,
women-owned, or veteran-owned business (20% in total; 10 points for
one certification and 20 points for two or more).
(h)
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
in the Borough'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 award and conditional license
shall be void.
(i)
An applicant must receive a score of at least 70 points to be
considered for approval by the Borough.
(j)
The Borough reserves the right to reject any application in
their sole discretion.
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:
B.
Summary suspension. Notwithstanding the foregoing section, when the
Borough 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 Borough 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 reasons therefor. The licensee shall be afforded an opportunity
for a hearing as outlined herein.
(2)
The Borough shall convene a review panel consisting of the Administrator
and/or Borough Clerk, a second administrative officer designated by
the Mayor and the Mayor. The hearing shall be scheduled within 30
days of the date of the order.
(3)
The review panel is authorized to impose any fines, conditions, restrictions
or combination thereof authorized by the State of New Jersey. In the
absence of state-specified penalties, the Borough may issue fines
up to, but not to exceed, $2,500 per offense and/or suspension of
license for a period not to exceed six months.
C.
Inactive licenses. Following the commencement of retail sales of
cannabis or cannabis products, the Borough may suspend or revoke any
license if the licensed premises have been inactive or unoccupied
by the licensee for at least six months.
D.
State license. The Borough may suspend or revoke any license if the
corresponding state license or permit for the subject location is
expired, surrendered, suspended or revoked.
The Borough of Swedesboro hereby imposes a transfer tax on the
sale of cannabis or cannabis items by a cannabis establishment that
is located within the Borough.
As used in this article, the following terms shall have the
meanings indicated:
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
Shall have the meaning as defined in N.J.S.A. 24:6I-33.
The transfer tax is applicable to:
A.
Receipts from the retail sales of cannabis items by a cannabis retailer
to retail consumers who are 21 years of age or older and any combination
of sales between any cannabis establishment, cultivator, cannabis
retailer and/or cannabis consumer.
The rates of the transfer tax shall be as follows:
A.
Two percent of the receipts from each sale by a cannabis retailer.
A user tax is also hereby imposed, at the equivalent transfer
tax rates, on any concurrent license holder, as permitted by N.J.S.A.
24:6I-46, 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 which are not otherwise subject to the transfer
tax, from the license holder's establishment that is located
in the municipality to any of the other license holder's establishments,
whether located in the municipality or another municipality.
The transfer tax and user tax imposed herein shall be in addition
to any other tax imposed by law.
The transfer tax or user tax shall be collected or paid and
remitted to the Borough by the cannabis establishment from the cannabis
establishment purchasing or receiving the cannabis or cannabis item,
or from the consumer at the point of sale, on behalf of the municipality
by the cannabis retailer selling the cannabis item to that consumer.
The transfer tax or user tax shall be stated, charged, and shown separately
on any sales slip, invoice, receipt, or other statement or memorandum
of the price paid or payable, or equivalent value of the transfer,
for the cannabis or cannabis item.
Every cannabis establishment required to collect a transfer
tax or user tax imposed by this article shall be personally liable
for the transfer tax or user tax imposed, collected, or required to
be collected under this section. Any cannabis establishment shall
have the same right with respect to collecting the transfer tax or
user tax from another cannabis establishment or the consumer as if
the transfer tax or user tax was a part of the sale and payable at
the same time, or with respect to nonpayment of the transfer tax or
user tax by the cannabis establishment or consumer, as if the transfer
tax or user tax was a part of the purchase price of the cannabis or
cannabis item, or equivalent value of the transfer of the cannabis
or cannabis item, and payable at the same time; provided, however,
that the chief fiscal officer of the Borough shall be joined as a
party in any action or proceeding brought to collect the transfer
tax or user tax.
No cannabis establishment required to collect a transfer tax
or user tax imposed by this article 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 the consumer.
All revenues collected from a transfer tax or user tax imposed
by this article shall be remitted to the Chief Financial Officer of
the Borough. The Borough shall enforce the payment of delinquent taxes
or transfer fees imposed by ordinance pursuant to this section in
the same manner as provided for municipal real property taxes.
In the event that the transfer tax or user tax imposed by this
article is not paid as and when due by a cannabis establishment, the
unpaid balance, and any interest accruing thereon, shall be a lien
on the parcel of real property comprising the cannabis establishment's
premises in the same manner as all other unpaid municipal taxes, fees,
or other charges. The lien shall be superior and paramount to the
interest in the parcel of any owner, lessee, tenant, mortgagee, or
other person, except the lien of municipal taxes, and shall be on
a parity with and deemed equal to the municipal lien on the parcel
for unpaid property taxes due and owing in the same year.
The Borough shall file in the office of its Tax Collector a
statement showing the amount and due date of the unpaid balance and
identifying the lot and block number of the parcel of real property
that comprises the delinquent cannabis establishment's premises.
The lien shall be enforced as a municipal lien in the same manner
as all other municipal liens are enforced.
