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Franklin introduces rewritten cannabis ordinance to add licensing rules, fees and local surtax option
Summary
Council introduced Ordinance 4515-26 to replace Chapter 92 (cannabis), adding annual licensing fees (examples discussed: $10,000 for retail, $20,000 for cultivators), enforcement provisions, contact-info requirements, and the ability to impose a local gross-sales surtax up to 2%; staff and the attorney emphasized fees are intended to recoup administrative costs, not be treated as general revenue.
Franklin Township introduced a rewritten cannabis ordinance on June 23 that would replace Chapter 92 and set up a municipal framework for licensing, enforcement and local revenue collection.
Manager and staff presented Ordinance 4515-26 for first reading, describing multiple new requirements for cannabis establishments: mandatory contact information for licensees, clearer operational rules (for example, whether establishments can hold outdoor events), and an annual registration fee. During the discussion the manager and others cited proposed illustrative fee levels of $10,000 for retail establishments and $20,000 for cultivators; the council also discussed the possibility of a local gross-sales surtax of up to 2% that municipalities may adopt under state law.
Township counsel clarified that permitting fees must be roughly equivalent to the municipality's administrative costs under New Jersey law and are not intended to be general revenue. Council members discussed enforcement needs: staffing demands on the clerk's office, the collector's office and police, and the need to chase delinquent payments. The manager said the number of local cannabis businesses in town has fluctuated (from 21 to about 19, by his count) and that the market will determine how many remain open.
Council members asked whether businesses had been notified of the new ordinance prior to the introduction; staff said they generally do not notify businesses before an ordinance is introduced, though the meeting discussion will make the businesses aware. Questions about a cap on licenses (the current municipal cap had been 18) and whether the cap could be retained if businesses closed were raised and deferred to the township attorney and the Cannabis Regulatory Commission for clarification.
The ordinance was introduced for first reading and scheduled for second reading and public hearing on July 14, 2026. No final adoption or fee schedule was adopted the night of introduction.
