TOWNSHIP OF LITTLE FALLS ORDINANCE NO. 1420

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ARNOLD KOROTKIN

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Jul 10, 2021, 12:14:51 PM7/10/21
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TOWNSHIP OF LITTLE FALLS ORDINANCE NO. 1420

AN ORDINANCE OF THE TOWNSHIP COUNCIL OF THE TOWNSHIP
OF LITTLE FALLS, IN THE COUNTY OF PASSAIC, STATE OF NEW JERSEY, TO ESTABLISH CHAPTER 33 (CANNABIS REGULATION)
OF THE CODE OF THE TOWNSHIP OF LITTLE FALLS

WHEREAS, in 2020 New Jersey voters approved Public Question No. 1, which amended the New Jersey Constitution to allow for the legalization of a controlled form of marijuana called “cannabis” for adults at least 21 years of age; and

WHEREAS, on February 22, 2021, Governor Murphy signed into law P.L. 2021, c. 16, known as the “New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act” (the “Act”), which legalizes the recreational use of marijuana by adults 21 years of age or older, and establishes a comprehensive regulatory and licensing scheme for commercial recreational (adult use) cannabis operations, use and possession; and

WHEREAS, the Act establishes six marketplace classes of licensed businesses, including:

  • Class 1 Cannabis Cultivator license, for facilities involved in growing and

    cultivating cannabis;

  • Class 2 Cannabis Manufacturer license, for facilities involved in the manufacturing, preparation, and packaging of cannabis items;

  • Class 3 Cannabis Wholesaler license, for facilities involved in obtaining and selling cannabis items for later resale by other licensees;

  • Class 4 Cannabis Distributer license, for businesses involved in transporting cannabis plants in bulk from on licensed cultivator to another licensed cultivator, or cannabis items in bulk from any type of licensed cannabis business to another;

  • Class 5 Cannabis Retailer license for locations at which cannabis items and related supplies are sold to consumers; and

  • Class 6 Cannabis Delivery license, for businesses providing courier services for consumer purchases that are fulfilled by a licensed cannabis retailer in order to make deliveries of the purchases items to a consumer, and which service would include the ability of a consumer to make a purchase directly through the cannabis delivery service which would be presented by the delivery service for fulfillment by a retailer and then delivered to a consumer.

    WHEREAS, section 31a of the Act authorizes municipalities by ordinance to adopt regulations governing the number of cannabis establishments (defined in section 3 of the Act as “a cannabis cultivator, a cannabis manufacturer, a cannabis wholesaler, or a cannabis retailer”), cannabis distributors or cannabis delivery services allowed to operate within their boundaries, as well as the location manner and times operation of such establishments, distributors or delivery services, and establishing civil penalties for the violation of any such regulations; and

    WHEREAS, section 31b of the Act stipulates that any municipal regulation or prohibition must be adopted within 180 days of the effective date of the Act (i.e., by August 22, 2021); and

    WHEREAS, the Township Council of the Township of Little Falls has determined that it is appropriate to permit a limited number of Class 1, 2, 3, 4 and 6 licenses in the Township, but to absolutely prohibit the issuance of any Class 5 (Cannabis Retailer) license throughout the boundaries of the Township, subject to regulations necessary to protect the health, safety and welfare of the residents of the Township and to enforce the rules and regulations which may be from time to time enacted by the State of New Jersey or any of its entities.

NOW THEREFORE BE IT RESOLVED by the Township Council of the Township of Little Falls, that there shall be established Chapter 33, Cannabis Regulation, of the Code of the Township of Little Falls, is as follows:

§33-1 Purpose

This Chapter is authorized pursuant to the “New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act”, P.L. 2021, c.016, and the implementing regulations promulgated by the Cannabis Regulatory Commission (collectively, the “Act”), which are hereby incorporated herein by reference, and shall be controlling unless more restrictive standards are prescribed herein. If any provision of this Chapter is inconsistent with the statutes and/or regulations of the State of New Jersey, the State statutes and/or regulations shall govern.

§33-2 Definitions.

For the purposes of this Chapter, all terms shall be defined consistent with the Act. All definitions included in N.J.S.A. 24:6I-33 are incorporated by reference herein. Additional definitions are as below:

“Permitting Authority” means the Cannabis Regulatory Commission (“CRC”), established pursuant to Section 31 of P.L. 2019, c. 307 (C. 24:61-24) or other entity with regulatory jurisdiction over adult-use cannabis.

§33-3 Local Licensing Authority

  1. A local license shall be required to operate a Cannabis Establishment, as defined in the Act and as allowed by ordinance, in the Township. The Township Clerk is hereby designated to act as the local licensing authority for the Township for all Cannabis Establishments.

  2. Under no circumstances shall the Township Clerk receive or act upon any application for local licensing of a Cannabis Establishment if the Permitting Authority has not issued the appropriate State license. It is the intent of this Chapter that no Cannabis Establishment may lawfully operate in the Township absent the issuance of the appropriate State license and full regulatory oversight of the Cannabis Establishment by the Permitting Authority as well as that of the Township.

  3. Under no circumstances shall the Township Clerk receive or act upon any application for local licensing of a Cannabis Establishment unless or until the applicant has obtained the appropriate zoning approval from the Township land use board with jurisdiction over the application and a Certificate of Zoning Compliance has been issued by the Zoning Officer.

  4. All Cannabis Establishments shall be subject to site plan review prior to commencing operations. Submitted plans shall depict parking and loading areas, floor plans, building elevations, signage, landscaping, and such other information as may be required by the Township.

  5. The Township Clerk, or his/her designee, shall be authorized to establish rules and regulations consistent with the intent of this Chapter.

  6. Whenever the Cannabis Regulatory Commission established by the Act (the “Commission”) forwards to the municipality any application for initial licensing or renewal of an existing license for any cannabis establishment or delivery service pursuant to Section 19 of the Act or for a cannabis consumption area pursuant to Section 28 of P.L.2019, c.153 (C.24:6I-21), or otherwise solicits the position of the municipality on any matter related to cannabis-related activities within the municipality, or upon the request of an applicant for or holder of such license, the governing body shall determine whether the application complies with the municipality’s restrictions on the number of cannabis establishments or delivery services, and on their location, manner, or times of operation, and promptly inform the Commission, applicant for or holder of a license whether the application complies with same and whether it either approves or denies each application or other request for municipal authorization forwarded to it.

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§33-4 Local Licensing Application

  1. Persons wishing to obtain a local license for a Cannabis Establishment shall file a license application with the Township Clerk, on a standardized form established by the Business Administrator and available in the Clerk’s office and on the Township’s website.

  2. An application shall be deemed incomplete, and shall not be processed by the Township Clerk, until all documents and application fees are submitted. To be deemed complete, all applications shall be accompanied by the following:

    1. (1)  The applicant shall submit proof of licensure by the Permitting Authority.

    2. (2)  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 the following: a deed, a lease, a real estate contract contingent upon successful licensing, or a letter of intent from the owner of the premises indicating an intent to lease the premises to the applicant contingent upon approval of required licenses.

    3. (3)  The location proposed for licensing by the applicant shall comply with all applicable Township zoning laws and the location restrictions set forth herein.

    4. (4)  The applicant shall submit an application fee of $1,000.00 for a license. The amount of the nonrefundable application fee may be modified from time to time by subsequent duly adopted resolution of the Township Council.

    5. (5)  Each subsequent year, the applicant will be required to re-certify the qualifications to remain as a valid Cannabis Establishment under the laws of the State and the ordinances of the Township. The renewal application form will be prepared by the Business Administrator and available through the Township Clerk’s Office. The fee for the renewal application shall be $500.00 annually.

    6. (6)  The applicant and the contents of the application shall otherwise comply with any and all qualification standards set forth in the State and local laws, regulations, or requirements.

  3. The license as issued by the Township shall serve as written proof of the suitability of the Cannabis Establishment location from the Township. Other written statements, letters, resolutions, or other documents issued by the Township or any official, employee, or other representative shall not constitute annual or renewed "written, municipal approval" for purposed of the Act.

§33-5 Term of License and License Renewals

A.

  1. The Township Clerk may, at his/her discretion, adjust the annual renewal date of the local license to correlate with an applicant’s State licensing and renewal schedule, and the annual license fee shall be increased or decreased to prorate the period, accordingly.

  2. Upon renewal of a license, the licensee shall be governed by any amendments, additional restrictions, or changes in requirements adopted since the previous license was issued or renewed.

  3. Transfer of ownership of a license, change of location of any license, or modification to expand a licensed premise shall be treated as a new application, subject to Township land use review and approval. The application fee under such circumstances shall be the same as a new license $1,000.00.

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Any license shall be valid for a period of one year from January 1 in each year. The respective fees for any such license shall be prorated according to the effective date of

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the license and based on the respective annual fee as in this Chapter provided.

E. If the licensee has received notice of violation of any law or regulation relating to their State license, including disciplinary action against any past or current cannabis license, the applicant for renewal shall include a copy of the notice of violation or disciplinary action with their application.

§33-6 Limitation on the Number of Licenses

  1. A maximum of two (2) Cannabis Wholesalers shall be permitted to operate in the Township.

  2. A maximum of two (2) Cannabis Distributors shall be permitted to operate in the Township.

  3. A maximum of two (2) Cannabis Cultivators shall be permitted to operate in the Township.

  4. A maximum of two (2) Cannabis Manufacturers shall be permitted to operate in the Township.

  5. A maximum of two (2) Cannabis Deliveries shall be permitted to operate in the Township.

  6. No Licenses shall be allowed for Cannabis Retainer as defined by the Act.

  7. No Licenses shall be allowed for Cannabis Microbusinesses as defined by the Act.

  8. Nothing herein shall be read or construed in any manner to authorize or in any manner apply to Medical Cannabis businesses of any type as defined by the Act.

  9. Permitted locations of Cannabis Establishments are set forth in Ordinances 1415 and 1416 amending Chapter 280. No Cannabis Establishment can be located in any other zone than as listed in the amended Chapter 280.

§33-7 Restrictions

A. No building or structure associated with a Cannabis Establishment shall be located within 1,000 feet of any school property (including any property owned or leased by a public school board).

B. No Cannabis Establishment shall be located in a residences of any type such as a home- office or similar arrangement.

§33-8 Hours of Operation

All Cannabis Establishments shall limit their hours of operation from 6:00 a.m. to 10 p.m., Monday through Saturday.

§33-9 Enclosed Building

All operations of a Cannabis Establishments shall occur within a single, or series of, completely enclosed buildings. No outdoor storage shall be permitted.

§33-10 Security and Reporting

A. There shall be at least two employees on continuous duty in any part of a Cannabis Establishment to which the public is invited.

B. A Cannabis Establishment shall employ a security officer, or the premises shall have in operation a security device approved by the Chief of Police of the Township which may consist of a silent and/or audible burglar alarm connected to a central security monitoring system designed to activate police response, a closed circuit television connected to a

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central security monitoring system designed to activate police response, or such other device which can be activated instantaneously to notify law enforcement officers that a crime or disorderly person's activity is in progress.

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C. The Township Police Department shall be provided the name and phone number of a contact person to notify during suspicious activity during or after operating hours. Security staff is required on the premises during all hours of operation.

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D. A burglarproof drop safe that regulates an employee’s access to cash shall be used on the premises.

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E. The exterior portion of a Cannabis Establishment, including parking areas, shall be well lit during business hours. Said lighting shall be designed so as to not unduly interfere with any neighbor's reasonable use and/or enjoyment of the property.

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F. Fencing, a minimum of six (6) feet in height, shall be installed around the loading and unloading area of the Cannabis Establishment.

G. Security protocols shall be submitted to the Township Police Department for compliance review with all safety and security standards established by the State of Cannabis Establishments. The Township Police Department may, at their discretion and upon review of the proposed location, recommend or require additional safety and security measures.

§33-11 Storage of Products

Cannabis plants, products, accessories, and associated paraphernalia shall not be visible from a public sidewalk, public street or right-of-way, or any other public place. On-site storage of usable cannabis shall comply with applicable federal, state and local laws and regulations.

§33-12

§33-13

A.

B.

C.
D.
§33-14 A.

Limitations on Consumption or Smoking on Premises

Prevention of emissions and disposal of materials

A Cannabis Establishment must provide sufficient measures and means of preventing smoke, odors, debris, dust, fluids and other substances from exiting the Cannabis Establishment. In the event that any debris, dust, fluids or other substances shall exit the business premises, the property owner and operator shall be jointly and severally responsible for the full cleanup immediately.

A Cannabis Establishment shall properly dispose of all materials and other substances in a safe and sanitary manner in accordance with State regulations.

Cannabis Establishments must meet industry best practices for odor control. All State regulations concerning ventilation systems shall be followed.

Transfer Tax and User Tax

In accordance with the Act, the Township shall impose a cannabis transfer tax on receipts from the sale of cannabis by a cannabis cultivator to another cannabis cultivator and receipts from the sale of cannabis items from one cannabis establishment to another cannabis establishment in the following percentages:

  1. Two (2%) percent of the receipts from each sale by a Cannabis Cultivator

  2. Two (2%) percent of the receipts from each sale by a Cannabis Manufacturer

  3. One percent (1%) of the receipts from each sale by a Cannabis Wholesaler.

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It shall be unlawful for any person 21 years of age or older to consume cannabis through means

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other than by smoking, vaping, or aerosolizing (e.g., edibles) in a public place, including any

page5image65168000

indoor public place as the term is defined in N.J.S.A. 26:3D-57.

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B.

C. The user tax rate shall be assessed at 2% 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 Article, 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.

  1. 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. The 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.·

  2. All revenues collected from a transfer tax or user tax shall be remitted to the Township Chief Financial Officer in a manner prescribed by the Township. The Chief Financial Officer shall collect and administer any transfer tax or user tax. The Township shall enforce the payment of delinquent taxes or transfer fees in the same manner as provided for municipal real property taxes.

§33-15 Compliance with Law

A Cannabis Establishment shall comply with all applicable State and local laws and regulations.

§33-16

A.

Revocation or Suspension of License

The Township Clerk shall suspend or revoke any license if the corresponding State license for the subject location is expired, surrendered, suspended, or revoked.

B. Where it is found that a licensee has engaged in a 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 Township Clerk is authorized and empowered to immediately suspend any license or permit issued pursuant to this Chapter and order that the licensee cease all operations until such time as the violations are abated.

C. Any person aggrieved by the action of the Township Clerk in the denial of an application for license or the decision with reference to the revocation or suspension of a license in accordance with this section, shall have the right of appeal to the Business Administrator, or his/her designee. Such appeal shall be taken by filing with the Business Administrator,

within 10 days of the action complained of, a written statement setting forth fully the grounds for the appeal. The Business Administrator, or his/her designee, may decide the matter on the papers or schedule a time and place for a hearing on such appeal. Notice of any such hearing shall be served upon the applicant/licensee (whichever is appropriate) or mailed, postage prepaid, to the applicant/licensee at the address given on the application for license in accordance with this Chapter, at least five days prior to the date set for said hearing. The decision and order of the Business Administrator, or his/her designee, on such appeal shall be final and conclusive.

§33-17

A.

B.

Violations and penalties

Operation of any prohibited or unpermitted Cannabis Establishment within the municipality in violation of the provisions of this Ordinance is hereby declared a public nuisance and any such violation shall be abated pursuant to all available remedies.

It shall be deemed a nuisance if a person, who is consuming, using, smoking, vaping, aerosolizing or imbibing cannabis, shall cause excessive odor or other pollution to extend beyond the person's premises.

In accordance with the Act, the user tax for the Township shall be imposed at equivalent cannabis transfer tax rates on any concurrent license holder operating more than one (1)

page6image65284608

Cannabis Establishment in the Township.

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C.

Any person violating this Chapter shall be subject to the penalties of $1,000.00 per day of

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violation and each day constituting a separate violation.

NOW, THEREFORE, BE IT FURTHER ORDAINED that:

1. Ordinances, resolutions and regulations or parts of ordinances, resolutions and regulations inconsistent herewith are hereby repealed to the extent of such inconsistency; and
2. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be unconstitutional or invalid by a court of competent jurisdiction, such a decision shall not affect the remaining portion of the Ordinance; and

3. Except as hereby amended, the Code of the Township of Little Falls shall remain in full force and effect.
4. This Ordinance shall take effect twenty days after final passage and publication in accordance with law.

******

APPROVE:

James Belford Damiano Mayor

PASSED: _________________________

ATTEST:

Cynthia Kraus Municipal Clerk 

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