[Adopted 5-9-2022 by Ord. No. 05-2022]
As used in this chapter, the following terms shall have the
meanings indicated:
Public Law 2021, c. 16, commonly known as the "New Jersey
Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization
Act," codified at N.J.S.A. 24:6I-31 et seq.
Borough of Folsom.
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 the Act for
use in cannabis products, but shall not include the weight of any
other ingredient combined with cannabis to prepare topical or oral
administrations, food, drink, or other product.
Any person or entity that holds any of the six classes of
licenses established under the Act.
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, is 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.
A cannabis cultivator, a cannabis manufacturer, a cannabis
wholesaler, or a cannabis retailer.
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.
A product containing usable cannabis, cannabis extract, or
any other cannabis resin and other ingredients intended for human
consumption or use, including a product intended to be applied to
the skin or hair, edible cannabis products, ointments, and tinctures.
"Cannabis product" does not include: 1) usable cannabis by itself;
or 2) cannabis extract by itself; or 3) any other cannabis resin by
itself.
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.
Collectively, the taxes as are established in this chapter.
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.
Any person or entity that holds a license issued under the
Act, including a license that is designated as either a Class 1 Cannabis
Cultivator license, a Class 2 Cannabis Manufacturer license, a Class
3 Cannabis Wholesaler license, a Class 4 Cannabis Distributor license,
a Class 5 Cannabis Retailer license, or a Class 6 Cannabis Delivery
license, and includes a person or entity that holds a conditional
license for a designated class.
Any person or entity licensed as a cannabis cultivator, cannabis
manufacturer, cannabis wholesaler, cannabis distributor, cannabis
retailer, or cannabis delivery service that may only, with respect
to its business operations, and capacity and quantity of product:
1) employ no more than 10 employees; 2) operate a cannabis establishment
occupying an area of no more than 2,500 square feet, and in the case
of a cannabis cultivator, grow cannabis on an area no more than 2,500
square feet measured on a horizontal plane and grow above that plane
not higher than 24 feet; 3) possess no more than 1,000 cannabis plants
each month, except that a cannabis distributor's possession of
cannabis plants for transportation shall not be subject to this limit;
4) acquire each month, in the case of a cannabis manufacturer, no
more than 1,000 pounds of usable cannabis; 5) acquire for resale each
month, in the case of a cannabis wholesaler, no more than 1,000 pounds
of usable cannabis, or the equivalent amount in any form of manufactured
cannabis product or cannabis resin, or any combination thereof; and
6) acquire for retail sale each month, in the case of a cannabis retailer,
no more than 1,000 pounds of usable cannabis, or the equivalent amount
in any form of manufactured cannabis product or cannabis resin, or
any combination thereof.
Any definition of smoking in the Borough Code is amended
to include Cannabis and Cannabis Product.
[Added 9-13-2022 by Ord.
No. 10-2022]
Any definition of tobacco product in the Borough Code is
amended to include Cannabis and Cannabis Product.
[Added 9-13-2022 by Ord.
No. 10-2022]
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Any term not defined herein shall have the meaning as established
by Section 40 of Public Law 2021-16 (N.J.S.A. 24:6I-33).
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It is the intent of this chapter to establish the regulatory
framework to implement the provisions of the Act, including the imposition
of cannabis taxes, as permitted by Section 40 of the Act, at a uniform
percentage rate not to exceed 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, which
shall be in addition to any other tax or fee imposed pursuant to any
other statute or local ordinance or resolution by any governmental
entity having regulatory authority over the cannabis establishment.
Cannabis cultivators, manufacturers, wholesalers, distributors, retailers, and delivery services are only permitted in the Borough in accordance with the standards set forth in Chapter 200, Article XI titled "Zoning" established by way of Ordinance No. 9-2021 as follows:
A.
All Class 5 cannabis retailer businesses shall not be permitted uses
in the VR (Village Residential), RD (Rural Development) and Block
3401, Lots 50, 51 52 and 53 and Block 3407 Lot 12 in the RDC (Rural
Development Commercial) Zones. The hours of operation for Class 5
cannabis retailers in all other permitted zones shall be 9:00 a.m.
to 9:00 p.m. Monday through Sunday.
B.
All Class 1, Cannabis Cultivation, Class 2, Cannabis Manufacturing,
Class 3, Cannabis Wholesale and Class 4, Cannabis Distribution businesses
shall not be permitted uses in the RDC (Rural Development Commercial)
Zone in Block 3401 Lots 50, 51, 52 and 53, Block 3407 Lot 12, Block
3408 Lots 1, 2, 3, 4 and 5, Block 3302 Lots 1 and 6 and Block 3301
Lot 5. Furthermore, these businesses shall not be permitted uses in
the F-20 (Forest 20 acres), F-30 (Forest 30 acres), AG (Agriculture),
VR (Village Residential) or RD (Rural Development) zones. These businesses
shall be permitted uses in the VI (Village Industrial), FCS (Forest
Commercial Sending), FCR (Forest Commercial Receiving) and in the
remainder of the RDC (Rural Development Commercial) zones.
A.
Local license required. Pursuant to the authority granted by N.J.S.A.
24:6I-45c(2), no person or entity shall operate a cannabis business
in the Borough without obtaining a license pursuant to this chapter.
B.
Local licensing authority. The Borough Council shall constitute the
issuing authority for the issuance of a local license, and for the
suspension or revocation of any license issued hereunder.
C.
Application. In order to obtain a license to operate a cannabis business
in the Borough, an applicant shall file an application, signed by
the applicant, with the Borough Clerk upon a form provided by the
Clerk which sets forth all information necessary for a proper consideration
of the application. Such application shall be filed contemporaneous
to filing an application for a license pursuant to the Act.
D.
Fee. The application fee for all classifications of licenses is $2,500.
The license must be renewed yearly at a fee of $1,500 per year.
[Amended 9-13-2022 by Ord. No. 10-2022]
E.
Issuance. Upon approval of an application, the Borough Council shall,
by resolution, issue a license to operate a cannabis business in the
Borough.
F.
Suspension or revocation. Any license required by this chapter may
be suspended or revoked for violation of any of the following:
(1)
Subsequent knowledge of fraud, misrepresentation or incorrect statements
provided by an applicant on the application form.
(2)
Any fraud, misrepresentation, or false statements made in conducting
the cannabis business.
(3)
Any violation of the Act, or the rules and regulations of the Cannabis
Regulatory Commission.
(4)
Subsequent conviction of any federal or state statute or regulation, or of any local ordinance, which adversely reflects upon the person's ability to conduct the cannabis business in a professional, honest and legal manner. Such violations shall include, but are not limited to, violations of Chapter 35 of Title 2C of the New Jersey Statutes, burglary, theft, larceny, swindling, fraud, unlawful business practices, and any form of actual or threatened physical harm against another person.
(5)
Violation of any other provision of this chapter.
G.
Notice of hearing. Notice of a hearing to consider the suspension
or revocation of a license under the preceding subsection shall be
given, in writing, by the Borough Clerk, setting forth the grounds
of the proposed action and the time and place of the hearing. Such
notice shall be personally delivered, or mailed, by certified and
regular mail, to the licensee at the address indicated on the license
application, at least 10 days prior to the date of the hearing.
H.
Appeal. Any person whose permit is suspended or revoked under this
section shall have the right to appeal that decision to a court of
competent jurisdiction.
A.
Tax established. There is hereby established a local cannabis transfer
tax on the sale of cannabis or cannabis products by a cannabis establishment
located in the Borough. The tax is hereby imposed on the receipts
from the sale of cannabis by a cannabis cultivator to another cannabis
cultivator; receipts from the sale of cannabis or cannabis products
from one cannabis establishment to another cannabis establishment;
receipts from the retail sales of cannabis or cannabis products by
a cannabis retailer to retail consumers who are 21 years of age or
older; or any combination thereof. Sales by a cannabis establishment
located in the Borough are subject to the tax established herein even
if the cannabis or cannabis products are delivered to another municipality.
B.
Rate. The amount of the tax shall be 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.
C.
User tax. In addition to the tax established in Subsection A of this section, a user tax, at the equivalent transfer tax rates, is hereby established on any concurrent license holder, as permitted by Section 33 of P.L. 2021, c.16 (N.J.S.A. 24:6I-46) and N.J.S.A. 40:48I-1 operating more than one cannabis establishment. The user tax shall be imposed on the value of each transfer or use of cannabis or cannabis products not otherwise subject to the transfer tax imposed pursuant to Subsection A of this section, from the licensee's establishment that is located in the Borough to any of the other licensee's establishments, whether located in the Borough or another municipality.
D.
The cannabis tax set forth in this section shall be in addition to
any other tax or fee imposed pursuant to statute or local ordinance
on a cannabis establishment.
A.
Th cannabis tax imposed by this chapter 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
product, or from the consumer at the point of sale, on behalf of the
Borough 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.
B.
Every cannabis establishment required to collect a cannabis tax imposed
by this chapter shall be personally liable for the cannabis tax imposed,
collected, or required to be collected under this chapter. Any cannabis
establishment shall have the same right with respect to collecting
the cannabis tax from another cannabis establishment or the consumer
as if the cannabis tax was a part of the sale and payable at the same
time, or with respect to nonpayment of the cannabis tax by the cannabis
establishment or consumer, as if the cannabis tax was a part of the
purchase price of the cannabis or cannabis product, or equivalent
value of the transfer of the cannabis or cannabis product, and payable
at the same time.
C.
No cannabis establishment required to collect a cannabis tax imposed
by this chapter shall advertise or hold out to any person or to the
public in general, in any manner, directly or indirectly, that the
cannabis tax will not be separately charged and stated to another
cannabis establishment or the consumer, or that the cannabis tax will
be refunded to the cannabis establishment or the consumer.
D.
All cannabis tax imposed by this chapter shall be remitted to the
Chief Financial Officer of the Borough on a quarterly basis payable
for the prior three month's activities and due at the same time
as quarterly dates for the collection of property taxes. The revenues
due on February 1 of each year shall include all cannabis taxes collected
for the prior year months of October, November and December. The revenues
due on May 1 of each year shall include all cannabis taxes collected
for the immediate prior months of January, February and March. The
revenues due on August 1 of each year shall include all cannabis taxes
collected for the immediate prior months of April, May and June. The
revenues due on November 1 of each year shall include all cannabis
taxes collected for the immediate prior months of July, August and
September.
E.
Simultaneous with payment of the cannabis tax, the licensee shall
submit an affidavit signed by an individual who is responsible for
the licensee that certifies the total receipts from each sale so that
an accurate calculation of the cannabis tax due may be determined.
F.
The Borough shall enforce the payment of delinquent cannabis taxes
imposed pursuant to this chapter in the same manner as provided for
municipal real property taxes. In the event that the cannabis tax
imposed by this chapter 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 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.
G.
Upon written request of the Borough, a cannabis establishment shall
submit an auditor's report for the preceding fiscal or calendar
year, certified by a certified public accountant, to the Borough.
The auditor's report shall include, but not be limited to, all
receipts generating cannabis taxes, and such details as may relate
to the financial affairs of the cannabis establishment and to its
operations and performance, and shall be prepared in a manner consistent
with the current standards of the Financial Accounting Standards Board.
Said auditor's report shall be submitted to the representatives
of the Borough within 30 days of receipt by the cannabis establishment
of the Borough's request for said auditor's report.
[Added 9-13-2022 by Ord.
No. 10-2022]
A.
Prohibition in public places. No person shall consume, smoke, use,
vape, aerosolize, immobilize or possess in any open container any
cannabis or cannabis product in any Borough park, lake area, recreation
area and in any school and in any place that any other law prohibits
the smoking of tobacco, including N.J.S.A. 2C:33-13 and the "New Jersey
Smoke-Free Air Act," N.J.S.A. 26:3D-55 et seq.
B.
Prohibition of unregulated sale of cannabis. No person shall sell
cannabis in the Borough without a state license and a Borough license.
