[HISTORY: Adopted by the Township Council of the Township
of Mount Holly as indicated in article histories. Amendments noted
where applicable.]
[Adopted 7-19-2022 by Ord. No. 2021-10]
This purpose of this article is to regulate the commercial production,
storage, sale and dispensing of regulated cannabis in the Township
of Mount Holly in accordance with the "New Jersey Cannabis Regulatory,
Enforcement Assistance, and Marketplace Modernization Act" comprising
Chapter 16 of the Laws of 2021, its supplements and amendments, and
also comprising N.J.S.A. 24:6I-31 et seq., and any amendments or supplements
thereto, and in accordance with the rules and regulations of the Cannabis
Regulatory Commission, and to further provide rules governing the
local licensure of cannabis establishments and distributors, as well
as, regulations governing the location, manner, and times of operation
of such businesses operating within the Township.
As used in this article, the following terms shall have the
meanings indicated:
This term shall have the same meaning as provided under N.J.S.A.
24:6I-33.
A facility involved in the growing and cultivating of cannabis,
and which has been duly issued a Class 1 cannabis cultivator license
by the New Jersey Cannabis Regulatory Commission, or its successor
agency.
Any person or entity providing courier services for consumer
purchases of cannabis items and related supplies fulfilled by a cannabis
retailer, and which has been duly issued a Class 6 cannabis delivery
license by the New Jersey Cannabis Regulatory Commission, or its successor
agency.
Any person or entity engaged in the intrastate transport
of bulk cannabis or cannabis items from one licensed cannabis cultivator
to another licensed cannabis cultivator, or from any one class of
licensed cannabis establishment to another class of licensed cannabis
establishment, and which has been duly issued a Class 4 cannabis distributor
license by the New Jersey Cannabis Regulatory Commission, or its successor
agency.
A facility involved in the manufacturing, preparation and
packaging of cannabis items, and which has been duly issued a Class
2 cannabis manufacturer license by the New Jersey Cannabis Regulatory
Commission, or its successor agency.
Any person or entity that purchases or otherwise obtains
cannabis or cannabis items from cannabis cultivators, manufacturers
or wholesalers, and sells these to consumers from a retail store,
and/or may use a cannabis delivery service or a certified cannabis
handler for the off-premises delivery of cannabis items and related
supplies to consumers and which has been duly issued a Class 5 cannabis
retailer license by the New Jersey Cannabis Regulatory Commission,
or its successor agency.
A facility involved in obtaining and selling cannabis items
for later resale by other licensees, and which has been duly issued
a Class 3 cannabis wholesaler license by the New Jersey Cannabis Regulatory
Commission, or its successor agency.
A.
Laws applicable. All applications for licenses, all licenses issued
and all proceedings under this article shall be in accordance with
the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace
Modernization Act,[1] rules and regulations referred to in this section, and
all other applicable laws of the State of New Jersey or the United
States.
[1]
Editor's Note: See N.J.S.A. 24:6I-31 et seq.
B.
Issuing authority. All licenses required by this article shall be
issued by the Township Council, which shall also administer the provisions
of this section.
C.
License required. No person shall produce, distribute, store, sell
or dispense cannabis products within the Township without obtaining
a license in accordance with the New Jersey Cannabis Regulatory, Enforcement
Assistance, and Marketplace Modernization Act and the provisions of
this section.
D.
License fees. The annual fees of licenses for the operation of a
licensed cannabis business in the Township shall be as follows:
(1)
Class 1 cannabis cultivator: $10,000 per location.
(2)
Class 2 cannabis manufacturer: $10,000 per location.
(3)
Class 3 cannabis wholesaler: $10,000 per location.
(4)
Class 4 cannabis distributor: $10,000 per location.
(5)
Class 5 cannabis retailer: $5,000 per location.
(6)
Vertically integrated cannabis facility: $15,000.
E.
Local hiring, minority businesses, set asides. For all licensed cannabis business operations, the annual licensing fees established within § 89A-3 of the Township Code shall be reduced by the following amounts for the applicable year if the business entity can demonstrate that it falls within one or more of the following categories:
(1)
Any business that can provide a minority business enterprise certification
from the State of New Jersey shall be entitled to a 25% reduction
of the licensure fee, or remaining fee if a reduction has already
been applied under this section.
(2)
Any business that can provide a women's business enterprise
certification from the State of New Jersey shall be entitled to a
25% reduction of the licensure fee, or remaining fee if a reduction
has already been applied under this section.
(3)
Any business that can provide proof that at least 1/3 of its employees
are residents of the Township of Mount Holly shall be entitled to
a 25% reduction of the licensure fee, or remaining fee if a reduction
has already been applied under this section.
(a)
In order to receive a reduction under this section, the business
entity must provide adequate proof of employment and residency, in
the form of payroll history (amounts redacted) and proof of residency
demonstrating at least nine months of both residency and active employment.
(b)
The Township reserves the right to contact any employees referenced
in order to verify employment and residency.
(4)
Any business that can provide proof that at least one ancillary service
contract has been awarded to a business located within the Township
of Mount Holly shall be entitled to a 25% reduction of the licensure
fee, or remaining fee if a reduction has already been applied under
this section.
(a)
In order to receive a reduction under this section, the business
entity must provide proof of an ancillary service contract valued
over $500 for services performed for the business the previous year,
and proof of payment.
(b)
The Township of Mount Holly shall confirm that the ancillary
service company is a business entity located within the Township of
Mount Holly, and possesses a valid business license in good standing.
(c)
Ancillary services shall include, but shall not be limited to,
mechanical services, auto repair services, custodial services, office
furniture and/or supplies, IT services, and construction and/or repair
services.
(5)
If any licensed cannabis business is able to satisfy three of the
above four categories, their annual licensing fee shall be waived
for that year.
A.
Retail hours of sale. Any licensed cannabis retailer may sell, dispense
or allow, permit or suffer the sale, or dispensing of any cannabis,
usable cannabis or cannabis products to consumers in the Township
between the hours of 9:00 a.m. to 10:00 p.m. Monday through Sunday.
The retail hours of sale established herein may be further restricted
during such hours as may be authorized or permitted by the State of
New Jersey, Cannabis Regulatory Commission, pursuant to N.J.S.A. 24:6I-31
et seq., or any amendments or supplements thereto, and the rules and
regulations promulgated thereunder, or any amendments or supplements
thereto. Any future restriction or other modification concerning the
retail hours of sale of cannabis by the State of New Jersey shall
constitute a parallel restriction or modification of the permissible
hours of retail sale and dispensing of cannabis within the Township.
B.
Certain sales prohibited. No licensee or employee of a licensee shall
sell, dispense or deliver, directly or indirectly, any cannabis, usable
cannabis or cannabis products to any intoxicated person or any person
under the legal age for purchasing cannabis, usable cannabis or cannabis
products as a retail consumer pursuant to N.J.S.A. 24:6I-33, nor permit
such categories of persons to congregate in or about the licensed
premises.
C.
On-site consumption prohibited. No licensee shall be permitted to
operate or maintain a cannabis consumption area as further described
by Section 28 of P.L. 2019, c. 153 (N.J.S.A. 24:6I-21) on licensed
premises or otherwise allow any person to consume usable cannabis
or cannabis products on or within any licensed premises within the
Township.
A.
Grounds for suspension or revocation. Any license granted or issued
pursuant to this article may be suspended or revoked by the Township
Council after notice and hearing for any of the following causes:
(1)
Any fraud, misrepresentations or false statement contained in the
application for a license.
(2)
Any fraud, misrepresentation or false statement made in connection
with the selling of the articles of value.
(3)
Any violation of this article.
(5)
Any of the rules or regulations of the Cannabis Regulatory Commission.
(6)
Any conviction of the licensee of any felony or of a misdemeanor
involving moral turpitude.
(7)
Conducting the business licensed under this article, through the
applicant himself or any of his agents, servants or employees, in
any unlawful manner or in such a manner as to constitute a breach
of the peace or to constitute a menace to the health, safety or general
welfare of the public.
B.
Notice of hearing. Notice of hearing for suspension or revocation
of a license under the preceding section shall be given in writing
by the Township Clerk, setting forth the grounds of the complaint
and the time and place of the hearing. Such notice shall be mailed,
by certified and regular mail, to the licensee at his address indicated
on his license application, at least five days' prior to the
date set forth for the hearing unless the five-day notice would cause
a threat to public health and welfare in which case the Township shall
take any reasonable action to notify the licensee.
C.
Reissuance following suspension or revocation. The Township Council
may issue another license to a person whose license has been revoked,
if, after the hearing, it is satisfied by clear and convincing evidence
that the acts which led to the revocation will not occur again; otherwise,
no person whose license has been revoked, nor any person acting for
him, directly or indirectly, shall be issued another license to carry
on the same activity for the period of 12 months.
D.
Suspension or revocation of a license shall be in addition to any
other penalty which may be imposed for a violation of this article.
E.
Proceedings for suspension or revocation of any license authorized
under this section shall be in accordance with such rules and regulations
that may be adopted by the Cannabis Regulatory Commission to establish
procedures for the suspension or revocation of a license or a conditional
license, N.J.S.A. 24:6I-35(1), or any amendments or supplements thereto.
Any person, firm, corporation, association or legal party whatsoever who shall violate, or authorize or procure a violation, or cause to be violated, any provision of this article shall, upon conviction thereof, be punishable as provided under § 1-3 governing general penalty provisions. If the state requires, limits or expands potential minimum or maximum penalties in contradiction to this article, state law shall apply.
[Adopted 7-19-2021 by Ord. No. 2021-11]
The purpose of this article is to impose a tax on the sale of
cannabis or cannabis products by licensed commercial cannabis businesses
operating in the Township of Mount Holly pursuant to the New Jersey
Cannabis Regulatory, Enforcement Assistance and Marketplace Modernization
Act, to specify the type of tax and rate of tax to be levied and the
method of collection, and to comply with all requirements for the
imposition of a transfer or user tax pursuant to state law. This article
is enacted solely to raise revenue and not for regulation. This article
does not authorize the conduct of any business or activity in the
Township of Mount Holly, but provides for the taxation of such businesses
or activities as they occur.
As used in this article, the following terms shall have the
meanings indicated:
This term shall have the same meaning as provided under N.J.S.A.
24:6I-33.
A facility involved in the growing and cultivating of cannabis,
and which has been duly issued a Class 1 cannabis cultivator license
by the New Jersey Cannabis Regulatory Commission, or its successor
agency.
A facility involved in the manufacturing, preparation and
packaging of cannabis items, and which has been duly issued a Class
2 cannabis manufacturer license by the New Jersey Cannabis Regulatory
Commission, or its successor agency.
A facility involved in obtaining and selling cannabis items
for later resale by other licensees, and which has been duly issued
a Class 3 cannabis wholesaler license by the New Jersey Cannabis Regulatory
Commission, or its successor agency.
The Township of Mount Holly hereby imposes and shall collect
certain local option taxes on cannabis business activity as follows:
A.
A municipal transfer tax is hereby imposed on the receipts of each
sale by a licensed cannabis business operating in the Township of
Mount Holly at the rate of 2% of the receipts from each sale by a
cannabis cultivator, 2% of the receipts from each sale by a cannabis
manufacturer, 1% of the receipts from each sale by a cannabis wholesaler,
and 2% of the receipts from each sale by a cannabis retailer.
B.
A municipal user tax is hereby imposed, at the equivalent transfer
tax rates, on any concurrent license holder operating more than one
cannabis establishment. The user tax shall be imposed on the value
of each transfer or use of cannabis or cannabis items not otherwise
subject to the transfer tax imposed pursuant to this section, 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.
All revenues collected pursuant to this article shall be remitted
to the Chief Financial Officer of the Township of Mount Holly in the
manner provided by this article. The taxes imposed by this article
shall be computed and paid for each calendar month. Said taxes are
due and payable to the Chief Financial Officer on or before the 20th
day of the succeeding month.
A.
The Chief Financial Officer is hereby authorized and empowered to
administer, regulate and collect payment of all taxes imposed by this
article.
B.
The Chief Financial Officer may order an audit of any taxpayer under
this article for the purpose of ascertaining the correctness or completeness
of any return or payment.
A.
The payment of delinquent taxes or transfer fees imposed by this
article shall be enforced in the same manner as provided for delinquent
real property taxes.
B.
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 the parcel for
unpaid property taxes due and owing in the same year.
C.
In the event that a line is imposed on a delinquent taxpayer pursuant
to this section, the Township shall file in the office of the 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.
