Current through Register Vol. 57, No. 1, January 6, 2025
Section 17:30-5.1 - Municipal authority(a) A municipality may enact an ordinance or regulation that is not in conflict with the Act or this chapter, and may amend such ordinance or regulation: 1. That establishes a numerical limit on the number of cannabis businesses, provided that any such ordinance or regulation shall specify the maximum number of each class of license that is allowed within the municipality and for which the municipality has established a numerical limit;2. That governs the location, manner, and times of operation of cannabis businesses, except for the times of operation of a cannabis delivery service or distributor, including an ordinance or regulation that requires a cannabis business premises to be a certain distance from the closest church, synagogue, temple, or other place used exclusively for religious worship; or from the closest school, playground, park, or child daycare facility;3. That establishes civil penalties for a violation of such ordinance or regulation; or4. That imposes a separate local licensing requirement.(b) A municipality may enact and amend an ordinance or regulation to prohibit the operation of any one or more classes of cannabis business within the jurisdiction of the municipality pursuant to N.J.S.A. 24:6I-45.b, and such prohibiting ordinance shall apply throughout the municipality.1. Such ordinance or regulation may include the authorization or prohibition of outdoor cultivation.(c) If a municipality does not enact a prohibiting ordinance pursuant to N.J.S.A. 24:6I-45.b, for any class of cannabis business that is not otherwise prohibited from operating within the municipality: 1. The cultivation, manufacturing, selling, and reselling of usable cannabis and cannabis products and the operations to transport in bulk cannabis items by a cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, or cannabis delivery service shall be permitted uses in all industrial zones of the municipality; and2. The selling of cannabis items to consumers from a retail store by a cannabis retailer shall be a conditional use in all commercial zones or retail zones, subject to meeting the conditions set forth in any applicable zoning ordinance or receiving a variance from one or more of those conditions in accordance with the Municipal Land Use Law, P.L. 1975, c. 291 (N.J.S.A. 40:55D-1 et seq.).(d) Within 28 days of receipt of a license application from the Commission, a municipality shall inform the Commission whether such license application complies with its ordinance or regulation, as may be applicable. Failure of a municipality to respond to the Commission within the designated time period may result in the Commission deeming the license application in compliance with any pertinent ordinance or regulation.(e) A municipality may provide input to the Commission as to the municipality's preferences for licensure pursuant to N.J.A.C. 17:30-6.3.(f) A municipality and its governing body entrusted with zoning or the regulation of land use may provide zoning approval of a proposed location of a license applicant's cannabis business premises, which shall consist of a letter or affidavit from appropriate officials of the municipality stating that the location will conform to municipal zoning requirements allowing for activities related to the operations of the proposed cannabis business to be conducted at the location, and any variances granted concerning the operation of an cannabis business. 1. Such municipality and its governing body and appropriate officials entrusted with zoning or the regulation of land use shall consider whether a cannabis business's premises conforms to municipal zoning requirements based on the nature of the cannabis business's primary business operations.(g) A municipality may demonstrate proof of local support for the suitability of a cannabis business's proposed location by indicating that the intended location is appropriately located or otherwise suitable for activities related to the operations of the proposed cannabis business: 1. Where the municipality has a governing body, with the adoption of a resolution by the governing body; or2. Where the municipality has no governing body, with a written letter of support from the municipality's executive.(h) A municipality may provide written approval for a proposed expanded ATC pursuant to N.J.S.A. 24:6I-46.a(3) (a)(ii).(i) A county, municipality, or county or municipal government official shall neither solicit nor receive from a cannabis business, and a cannabis business shall not offer, anything of value, including a contribution to a political campaign, political party, or political organization as part of a host community agreement, or demand that any payment be made to a designated official, group, or organization in exchange for zoning approval, proof of local support, or written approval for such cannabis business, or take any other action that would violate N.J.S.A. 40A:9-22.5 of the Local Government Ethics Law.(j) A municipality may adopt an ordinance imposing a transfer tax or user tax on the sale of any usable cannabis or cannabis products by a cannabis establishment located within the municipality pursuant to N.J.S.A. 40:48I-1, which may include: sales between cannabis establishments, sales of cannabis items to consumers, or any combination thereof.1. The rate of a transfer tax established shall be at the discretion of the municipality, but in no case shall a rate exceed two percent of the receipts from each sale by a cannabis cultivator; two percent of the receipts from each sale by a cannabis manufacturer; one percent of the receipts from each sale by a cannabis wholesaler; or two percent of the receipts from each sale by a cannabis retailer.2. The chief financial officer of the municipality shall collect and administer any transfer tax or user tax imposed by ordinance pursuant to N.J.S.A. 40:48I-1, including enforcing the payment of delinquent taxes.(k) Any State or local law enforcement or regulatory authority or agency may request that cannabis business personnel performing a transport or delivery present a Cannabis Business Identification Card or a copy of a transport order or delivery request.(l) In no case may a municipality restrict the transportation of cannabis items through, or delivery of cannabis items within, the municipality by adopting an ordinance or any other measure. Any such restriction shall be deemed void and unenforceable.(m) In accordance with N.J.S.A. 40:55D-18, fees established by a municipality for issuing zoning permits, certifications, or authorizations to cannabis business applicants must be reasonably based on the administrative costs for the issuance of such municipal permit, certificate, or authorization.(n) A municipality may authorize or prohibit, through the enactment of an ordinance or regulation, the operation of a locally endorsed cannabis consumption area, including a cannabis consumption area operated by an alternative treatment center. 1. Such ordinance or regulation shall not conflict with the Act or this chapter and may govern the location, manner, and times of operations of consumption areas; and2. Such ordinance may include a reasonable minimum distance from schools, child daycare facilities, playgrounds, and places of worship where the municipality allows cannabis consumption areas to locate.(o) If a municipality allows cannabis consumption areas, after receiving a cannabis consumption area application from the Commission, the municipality shall determine whether the application complies with its local restrictions on cannabis consumption areas and shall inform the Commission of its determination in a manner specified by the Commission on its website at http://www.ni.aov/cannabis.N.J. Admin. Code § 17:30-5.1
Adopted by 53 N.J.R. 1583(a), effective 8/19/2021Amended by 55 N.J.R. 402(a), effective 3/6/2023Amended by 56 N.J.R. 274(a), effective 2/20/2024