[HISTORY: Adopted by the Township Committee of the Township
of Ocean 5-17-2022 by Ord. No.
2022-9.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also repealed former Ch. 125,
Cannabis, which consisted of Art. I, Cannabis Establishments, Distribution
and Delivery Services, adopted 6-15-2021 by Ord. No. 2021-12.
Notwithstanding any federal law to the contrary, this chapter
is enacted to regulate and govern the use of cannabis businesses and
the type of permits issued in the Township pursuant to the New Jersey
Cannabis Regulatory Enforcement Assistance and Marketplace Modernization
Act, N.J.S.A. 24:6I-32 et seq. (CREAMMA) and the regulations adopted
by the New Jersey Cannabis Regulatory Commission, N.J.A.C. 17:30.
For purposes of this chapter, the following definitions shall
apply:
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[1] 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 marihuana 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.).
Any licensed person or entity that grows, cultivates, or
produces cannabis, and sells, and may transport, this cannabis to
other cannabis cultivators, or usable cannabis to cannabis manufacturers,
cannabis wholesalers, or cannabis retailers, but not to consumers.
This person or entity shall hold a Class 1 (Cannabis Cultivator) license.
Any licensed person or entity that provides courier services
for consumer purchases 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, are delivered
to that consumer. This person or entity shall hold a Class 6 (Cannabis
Delivery) license.
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. This person or entity shall hold a Class 4 (Cannabis Distributor)
license.
Any licensed person or entity that processes cannabis items
in this state by purchasing or otherwise obtaining usable cannabis,
manufacturing, preparing, and packaging cannabis items, and selling,
and optionally transporting, these items to other cannabis manufacturers,
cannabis wholesalers, or cannabis retailers, but not to consumers.
This person or entity shall hold a Class 2 (Cannabis Manufacturer)
license.
Any licensed person or entity that 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. This
person or entity shall hold a Class 5 (Cannabis Retailer) license.
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. This person or entity shall hold a Class 3 (Cannabis Wholesaler)
license.
Cannabis dispensed to registered qualifying patients pursuant
to the Honig Act and N.J.S.A. 18A:40-12.22 et seq. "Medical cannabis"
does not include any cannabis or cannabis items which are cultivated,
produced, processed and consumed in accordance with the Cannabis Regulatory
Enforcement Assistance Marketplace Modernization Act.
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 permit shall not authorize the permit holder to cultivate
medical cannabis, to produce, manufacture, or otherwise create medical
cannabis products.
[1]
Editor's Note: The New Jersey Cannabis Regulatory Enforcement
Assistance and Marketplace Modernization Act (CREAMMA), N.J.S.A. 24:6I-31
et seq.
A.
Cannabis businesses shall only be permitted uses in those districts identified in Chapter 410, Zoning, of the Township Code, or in a duly adopted redevelopment plan.
B.
Only cannabis businesses authorized by a Class 1 (Cannabis Cultivator),
Class 2 (Cannabis Manufacturer), Class 3 (Cannabis Wholesaler), Class
4 (Cannabis Distributor), Class 5 (Cannabis Retailer), or a medical
cannabis dispensary license issued by the Cannabis Regulatory Commission,
Department of the Treasury, State of New Jersey, shall be permitted
within the Township of Ocean.
[Amended 8-15-2023 by Ord. No. 2023-17]
C.
All other cannabis businesses authorized by other classes of licenses
issued by the Cannabis Regulatory Commission, Department of the Treasury,
State of New Jersey, are specifically prohibited from operating within
the Township of Ocean.
[Amended 8-2-2022 by Ord.
No. 2022-16]
A.
Licensing. The Township Committee is hereby designated to act as
the local licensing authority of the Township for all cannabis establishments.
The Township Committee may approve or deny an application for a municipal
cannabis license to operate a cannabis establishment at its sole discretion.
Under no circumstances shall a municipal license for a cannabis establishment
issued by the Township be effective unless and until the state has
issued the requisite permits or licenses to operate a facility. All
municipal cannabis licenses shall be issued for a term of one year
and shall expire one year after the date of issuance. Each municipal
cannabis license shall not be transferrable, assignable, or divisible.
B.
Application for municipal cannabis licenses. Persons or entities
wishing to obtain a municipal cannabis license shall file a license
application with the Township Committee, on a standardized form established
by the Township Committee and available in the office of the Township
Clerk. An application shall be deemed incomplete and shall not be
processed until all documents and the 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 establishment,
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 applicant shall submit an affidavit of documentary proof of compliance
with all state and local laws regarding affirmative action, anti-discrimination,
and fair employment practices. The applicant shall also certify under
oath that they will not and shall not discriminate based upon race,
color, religion (creed), gender, gender expression, gender identity,
age, national origin, disability, marital status, sexual orientation
or military status, in any of its activities or operations.
(3)
A review memorandum from the Township Engineer confirming that the
location proposed for the licensing complies with the Township Zoning
Ordinances for cannabis establishments.
(4)
The applicant shall submit to the satisfaction of the Township Committee
proof of financial capabilities to open and operate the cannabis establishment
forcing the applicant to seek a license. Standards for proof of financial
capabilities shall be determined by the Township Committee.
(5)
The applicant shall submit all required fees for the application
and conditional license in accordance with the fee schedule set forth
in the Township Code. All fees shall be nonrefundable except as expressly
provided therein.
(6)
Any person proposed to have an ownership interest in the license
shall not have had any cannabis license or permit revoked for violation
affecting public safety in the State of New Jersey or subdivision
thereof within the preceding five years.
(7)
The applicant and the application shall otherwise comply with any
and all qualification standards set forth in the State of New Jersey
and/or Township laws and regulations.
C.
Application fee. There shall be a $2,500 nonrefundable application
fee submitted with the application.
D.
Annual registration fee. Within seven days of receiving notice that
an application for a license is granted, the applicant shall pay to
the Township the annual registration fee set forth below. The annual
registration fee shall be paid on or before the annual re-licensure
application for the cannabis establishment. The annual registration
fee is nonrefundable.
[Amended 8-15-2023 by Ord. No. 2023-17]
|
License
|
First Year Registration Fee
|
Annual Registration Fee
|
|---|---|---|
|
Class 1 (Cannabis Cultivator)
|
$10,000
|
$10,000
|
|
Class 2 (Cannabis Manufacturer)
|
$10,000
|
$10,000
|
|
Class 3 (Cannabis Wholesaler)
|
$10,000
|
$10,000
|
|
Class 4 (Cannabis Distributor)
|
$10,000
|
$10,000
|
|
Class 5 (Cannabis Retailer)
|
$10,000
|
$10,000
|
|
Medical Dispensary
|
$10,000
|
$10,000
|
E.
Number of licenses issued. The Township in its sole discretion shall
determine the number of aggregate licenses issued for all classes
of cannabis establishments.
F.
Nothing herein shall prohibit a business from having licenses for
multiple classes of cannabis establishments.
Cannabis businesses shall be subject to the following specifications
and standards, which shall constitute regulations applicable to a
permitted use:
A.
Licenses. Prior to the operation of any cannabis business, a permit
or license must be obtained from the State of New Jersey, the Township
of Ocean, and any other governmental agency, as may be necessary,
for the applicable type(s) of cannabis establishment. No cannabis
establishment shall be permitted to operate without all approvals
required by law.
B.
Compliance with licenses. Permitted uses shall, at all times, comply
with the terms and conditions of the licensee's cannabis establishment
permits and license issued by the State of New Jersey, the Township
of Ocean, and any other governmental agency or authority.
C.
Hours of operation. The hours of operation by all licensees shall
be from 8:00 a.m. to 8:00 p.m. only, with the exception of on-site
security.
D.
(Reserved)
E.
Security. All cannabis establishments shall be secured in accordance
with the State of New Jersey statutes and regulations, shall have
twenty-four-hour surveillance and shall have trained security personnel
on-site at all times during operating hours. Footage must be maintained
for the duration required under state law. All licensed facilities
must provide the Township's Police Department with access to security
footage immediately upon request by the Police Department.
F.
Land use regulations. All cannabis establishments shall comply with Chapter 410, Zoning, of the Code of the Township of Ocean, an applicable redevelopment plan, and all other applicable regulations.
[Amended 8-15-2023 by Ord. No. 2023-17]
G.
On-site consumption prohibited. No cannabis or cannabis product shall
be smoked, eaten, or otherwise consumed on the premises of any cannabis
establishment unless permitted pursuant to state law or regulation.
H.
Age restriction. No person under the age of 21 years may be permitted
within any cannabis establishment. Any person seeking entry into a
cannabis establishment shall be required to present proof of age to
a security guard before gaining entry.
A.
Local transfer and user taxes imposed; rates.
(1)
There is hereby established a local transfer tax imposed on transactions
that occur within the Township of Ocean between a cannabis business
that holds a cannabis cultivator, cannabis manufacturer, cannabis
wholesaler, or any combination thereof, or medical cannabis dispensary
license, at the following rates:
(2)
There is hereby established a local user tax imposed on non-sale
transactions that occur within the Township of Ocean between a cannabis
business that holds a cannabis cultivator, cannabis manufacturer,
cannabis wholesaler, or any combination thereof, or medical cannabis
dispensary license, at the following rates:
B.
Every cannabis establishment required to collect a transfer tax or
user tax imposed by this chapter shall be personally liable for such
transfer tax or user tax imposed, collected, or required to be collected
under this chapter. Any cannabis establishment shall have the same
right to collect the transfer tax or user tax from another cannabis
establishment as if the transfer tax or user tax was a part of the
transaction and payable at the same time, or with respect to nonpayment
of the transfer tax or user tax by the cannabis establishment or the
consumer, as if the transfer tax or user tax was 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 Financial Officer of the Township
shall be joined as a party in any action or proceeding brought to
collect the cannabis transfer or user tax.
C.
All revenues collected from a transfer tax imposed pursuant to this
chapter shall be remitted to the Chief Financial Officer of the Township
in the manner prescribed herein. The Chief Financial Officer of the
Township shall collect and administer any transfer tax imposed by
this chapter. The Township may enforce the payment of any delinquent
taxes imposed in the same manner provided for municipal real property
taxes. In the event that the transfer tax imposed is not paid as and
when due by a cannabis establishment, the unpaid balance, and any
interest accruing thereon, shall be lien against the 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, shall be on a parity with and deemed equal to
a municipal lien on the parcel for unpaid property taxes due and owing
in the same year. The Township shall file in the office of the Township
Tax Collector a statement showing the amount and due date of unpaid
balances and identifying the lot and block number of the parcel of
the 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 Chief Financial Officer is charged with the administration and
enforcement of the local transfer tax 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 re-examination
and correction of declarations and returns, and payments alleged or
found to be incorrect, 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 establishment fail to refuse to
provide adequate information to the Chief Financial Officer to determine
the amount of tax due, then the Chief Financial Officer may use information
provided to the Chief Financial Officer from other sources (i.e.,
the Commission or Department of Treasury) to determine the amount
of tax liability.
E.
Taxpayers liable for the transfer tax are required to keep such records
as will enable the filing of true and accurate returns for 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 any agent designated
by him to verify the correctness of the declarations or returns. If
records are not available to the Township to support the returns which
were filed or should have been filed, the taxpayer will be required
to make them available to the Chief Financial Officer either by producing
them at a location in the Township or by paying the expenses incurred
by the Chief Financial Officer or his agent in travelling to the place
where the records are regularly kept.
F.
All cannabis establishments operating in the municipality are required
to file a copy of their New Jersey tax return with the Chief Financial
Officer to report their transactions during each calendar quarter
and the amount of tax in accordance with provisions of this chapter.
Returns shall be filed, and payments of tax imposed for the preceding
calendar quarter shall be made on or before the last day of April,
July, October, and January, respectively. A taxpayer who has overpaid
the transfer tax, or who believes they are not liable for the tax,
may file a written request for an amended tax return with the Chief
Financial Officer for a refund or a credit of the tax. For amounts
paid as a result of a notice serving or informing a taxpayer of an
underpayment, a written request for refund shall be filed with the
Chief Financial Officer within two years of the date of the payment.
G.
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, 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 access 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 an 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 time period of assessment.
H.
Upon proposing an assessment, the Chief Financial Officer shall send
the taxpayer an interim notice by certified mail, return receipt requested,
which advises the taxpayer of additional taxes that are due. Should
the taxpayer wish to dispute the assessment administratively by requesting
a hearing with the Chief Financial Officer, it must do so within 30
days of the date of such interim notice. If, after the Chief Financial
Officer sends an interim notice, the taxpayer fails to timely request
a hearing with the Chief Financial Officer or requests a hearing,
and, after conducting a hearing, the Chief Financial Officer determines
that the taxes are due, the Chief Financial Officer shall send the
taxpayer by certified mail, return receipt requested, a final notice.
If the taxpayer wishes to dispute the assessment set forth in the
final notice, he or she must initiate an appeal in the New Jersey
Tax Court within 90 days after the mailing of any final notice regarding
a decision, order, finding, assessment, or action hereunder.
I.
Any person who receives an interim notice from the Chief Financial
Officer may, within 30 days after the date of an interim notice, request
a hearing with the Chief Financial Officer. Any person who fails to
request a hearing with the Chief Financial Officer in a timely manner
waives the right to administratively contest any element of the assessment.
The Chief Financial Officer shall accept payments of disputed tax
amounts under protest pending appeals; however, any requests for refund
of such monies shall be filed in accordance with this section.
J.
Any aggrieved taxpayer may, within 90 days after mailing of any final
notice regarding a decision, order, finding, assessment, or action
hereunder, or publication of any rule, regulation or policy of the
Chief Financial Officer, appeal to the Tax Court to review actions
or regulations of municipal officials by filing a complaint in accordance
with New Jersey Court Rules. The appeal provided by this subsection
shall be the exclusive remedy available to any taxpayer for review
of a final decision of the Chief Financial Officer with respect to
a determination of liability for the tax imposed by this chapter.
K.
The transfer tax or user tax shall be stated, charged, and shown
separately on any transaction or sales slip, invoice, receipt or other
statement or memorandum of the price paid or payable or the equivalent
value of the transfer or use of the cannabis or cannabis item.
L.
The cannabis transfer tax or cannabis user tax shall be in addition
to any other tax or fee imposed pursuant to state or local ordinance
or resolution by any governmental entity with regard to cannabis.
[1]
Editor's Note: Former § 125-7, Local hiring, was
repealed 8-2-2022 by Ord. No. 2022-16.
Any license issued pursuant to this chapter may be suspended
or revoked for violation of any of the provisions of the Township
Code or any applicable ordinance, statute, or any other rules and
regulations promulgated by the Township of Ocean or the State of New
Jersey. Suspensions or revocations of a license shall be in addition
to any other penalty which may be imposed for violation of Township
ordinances. No refund will be issued by the Township for any suspended
or revoked license.
