Wholesale-Class Three License: A marijuana wholesaler license, also called a Class 3 license in New Jersey, allows the holder to purchase or obtain, store, sell or transfer, and transport marijuana products for resale or to other cannabis wholesalers or retailers.
Cannabis Wholesaler License
The borough’s planning board approved its first cannabis company by a 7-1 vote Monday night, which will allow a warehouse and nursery to operate, but no retail store.
The business, a warehouse to cultivate cannabis, is a partnership with Susan Duckworth of Rumson and Alexander Federico, the director of operations at Full Spectrum Biotech in California.
According to Federico, the warehouse will not be a marijuana dispensary, but facilitate bulk wholesale where manufacturers or dispensaries would then modify the plant and sell it to customers.
With cannabis essentially “already here,” the Borough Council had a decision to make on whether or not they would participate in and benefit from the new legal marketplace in the state.
“Metuchen residents can visit any existing dispensaries or have [the cannabis] delivered to their homes,” Council President Jason Delia said noting there are 19 medicinal and recreational and nine medicinal only businesses in the state and the borough cannot prevent cannabis delivery companies to deliver to a Metuchen address.
Borough Council members recently approved an ordinance permitting two wholesale and three retail cannabis businesses to locate in certain sections of the 3-square-mile borough.
All other classes of recreational cannabis businesses are prohibited here.
Under the ordinance, wholesale cannabis businesses will be limited to the northwest light industrial zone in the area of Liberty Street while retail will be permitted in the borough's highway retail zone.
Four types of licenses will be available withing the municipality if the ordinance is approved. A Class 1 License is for Cannabis Cultivation; Class 2, Cannabis Manufacturing, Class 3, Cannabis Wholesale; and Class 4, Cannabis Distribution. A separate license covers medical dispensaries.
LoParo pointed out that the ordinance excludes the retail sale of recreational marijuana even though 57 percent of the municipality’s voters were in favor of the legalization of adult recreational cannabis use.
The South Orange Village Board of Trustees passed an ordinance allowing for the retail sale of cannabis in the village at its Feb. 28 meeting tonight.
The ordinance passed by a 5-1 vote with trustee Karen Hilton being the only trustee to vote no. On the ordinance Hilton said, “I don’t think it’s what we need,” adding “I feel uncomfortable going against everybody, but I had to follow my heart.”
The Borough Council unanimously approved three ordinances Monday night that will allow non-retail cannabis businesses to locate in the borough's industrial zones.
Ordinances 21-CODE-863, 872 and 873 were unanimously approved by the council without any comment from the public.
Ordinance 863 defines the zones. Ordinance 872 sets out licensing regulations. Ordinance 873 establishes procedures for the 2% transfer taxes on those businesses.
Three ordinances proposing non-retail cannabis operations in the borough will be the subject of public hearings and possible votes Monday.
No cannabis business has applied to the borough, said Borough Administrator Richard Kunze. The ordinances are intended to define what businesses will be allowed in the future, where they can be and how they will be regulated.
The mayor and council have introduced zoning rules for cannabis businesses within city limits.
The rules, if adopted, will limit the areas in the city where cannabis businesses can set up shop, and set the available licenses to one each for each of the six marketplace classes of cannabis businesses allowed by state law. It will also create a 2% sales tax on retail sales and a 1% sales tax on wholesale sales.
The licenses are for a cannabis cultivator, manufacturer, wholesaler, distributor, retailer, and delivery — which includes home delivery.
In Passaic, entrepreneurs can grow, manufacture, package, wholesale and, in the newest incarnation of its marijuana ordinance, even deliver cannabis products.
They just can't sell it at retail.
"No municipality in the state can prohibit the delivery to homes," Mayor Hector Lora said.
Because New Jersey requires cities to allow cannabis delivery, the City Council introduced an amendment to its ordinance Tuesday to make it clear that home delivery is acceptable.