[HISTORY: Adopted by the City Council of the City of Rahway 11-9-2022 by Ord. No. O-42-22; amended in its entirety 4-10-2023 by Ord. No. O-16-23. Subsequent amendments noted where applicable.]
This chapter is enacted to regulate any cannabis-related businesses and medical dispensaries in the City of Rahway in accordance with the provisions of an Act of Legislature of the State of New Jersey entitled "Jake Honig Compassionate Use Medical Cannabis Act" (N.J.S.A. 24:6I-1 et seq.) and the "New Jersey Cannabis Regulatory, Enforcement Assistance and Marketplace Modernization Act" (N.J.S.A. 24:6I-31 et seq.) and in accordance with the rules and regulations of the Cannabis Regulatory Commission.
As used in this chapter, the following terms shall have the meanings indicated:
CANNABIS
Shall have the same meaning as contained in P.L. 2021, c. 16 (N.J.S.A. 24:6I-31 et seq.). "Cannabis" does not include medical cannabis dispensed to registered and qualifying patients pursuant to the Jake Honig Compassionate Use Medical Cannabis Act, P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.) and P.L. 2015, c. 158 (N.J.S.A. 18A:40-12.22 et seq.).
MEDICAL CANNABIS
Cannabis dispensed to registered qualifying patients pursuant to the Jake Honig Compassionate Use Medical Cannabis Act, P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.) and P.L. 2015, c. 158 (N.J.S.A. 18A:40-12.22 et seq.). "Medical cannabis" does not include any cannabis or cannabis item which is cultivated, produced, processed and consumed in accordance with P.L. 2021, c. 16 (N.J.S.A. 24:6I-31 et seq.).
MEDICAL CANNABIS DISPENSARIES or MEDICAL CANNABIS ALTERNATE TREATMENT CENTER
A business entity, which shall include clinical registrants, that is authorized by the State of New Jersey to possess, display, deliver, transfer, transport, distribute, supply, sell, and dispense medical cannabis, medical cannabis products, paraphernalia, and related supplies to qualifying patients, designated caregivers and institutional caregivers pursuant to written instructions issued by a health care practitioner pursuant to the requirements of P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.). The term shall include the act of furnishing medical cannabis to a medical cannabis handler for delivery to a registered qualifying patient. A medical cannabis dispensary license shall not authorize the license holder to cultivate medical cannabis, to produce, manufacture or otherwise create medical cannabis products. An expanded medical cannabis dispensary with a personal use cannabis retail license shall only be permitted if approved by the Commission pursuant to N.J.S.A. 24:6I-46.
A. 
The regulations of this chapter are subject to the enabling authority of the State of New Jersey and are subject to compliance with all statutes and/or regulations adopted by the State of New Jersey or its instrumentalities, including the Cannabis Regulatory Commission.
B. 
If any provision of this chapter is inconsistent with the state statutes and/or regulations, the state statutes and/or regulations prevail.
C. 
An Evaluation Committee and Advisory Committee as appointed below will act as the body for local review for the City for all cannabis-related businesses, but the authority and responsibility to activate, suspend and revoke such licenses remains with the City Council.
D. 
Under all circumstances under which state law requires communication to the City by the Cannabis Regulatory Commission or any other state agency with regard to the licensing of cannabis establishments by the state or in which state law requires any review or approval by the City of any action taken by the state licensing authority, the exclusive authority for receiving such communications and granting such approvals shall be communicated through the City Clerk’s Office upon recommendation by the Evaluation and Advisory Committee and as authorized by the City governing body.
The City of Rahway, subject to land use approval and state licensure, may issue a municipal license to operate a cannabis related business including but not limited to, a medical cannabis dispensary, medical cannabis dispensary with personal use cannabis, or Class 5 licensed retail establishment if recommended for approval by the Evaluation and Advisory Committee and approved by the governing body and the appropriate land use board.
A. 
Members of the Evaluation Committee shall include the following:
(1) 
Primary members:
(a) 
Business Administrator;
(b) 
City Planner;
(c) 
Department of Engineering and Land Use Director; and;
(d) 
Revenue and Finance Director/CFO.
(2) 
Alternate members. In the event any primary member is not able to carry out their duty, the Mayor may designate an alternate member from the following:
(a) 
Department of Health Director/Health Officer;
(b) 
Police Department Director;
(c) 
Fire Department Chief; and
(d) 
Code Enforcement Director.
B. 
Members of the Advisory Committee shall include the following:
(1) 
Three members of the public appointed by the Mayor.
C. 
No member of the Evaluation or Advisory Committees may hold interest in or be related to an applicant.
A. 
The Advisory Committee is hereby designated to act as the local licensing application review board for the City for any and all Cannabis related business licenses.
B. 
Under all circumstances in which state law requires communication to the City by the state licensing authority or any other state agency with regard to the licensing of any cannabis related business licenses, including but not limited to, medical cannabis dispensaries or medical cannabis dispensaries with personal use cannabis retail if approved by the Commission and/or Class 5 licensed retail business by the state, or in which state law requires any review or approval by the City of any action taken by the state licensing authority, the exclusive authority for receiving such communications shall be the City Clerk’s Office, and upon recommendation of the City Evaluation and Advisory Committee, granting such approvals shall be exercised by the City governing body.
C. 
The Evaluation Committee members may assign review tasks to specific staff and/or consultants or resources having experience and/or certifications in specialized areas related to the application information as necessary to effectuate their responsibilities, including but not limited to engineering, land use, security, traffic, odor, environmental science, and/or emergency management.
D. 
The Evaluation Committee members shall review cannabis business applications and prepare and submit a technical review letter to the Advisory Committee for review and consideration.
E. 
The Advisory Committee shall review the technical review letter from the Evaluation Committee and subject to their approval or disapproval of same, submit their recommendation for a resolution endorsing the application to the City Council.
A. 
Eligible applicants. Only persons or entities licensed by the State of New Jersey Cannabis Regulatory Commission to operate a cannabis related business may make an application to operate in the City. All licensees shall operate at all times in complete compliance with the terms and conditions of their state and local license, as well as any other applicable section of the City code and/or state law.
B. 
Diversely owned business encouraged. The City encourages and promotes the participation of diversely owned businesses pursuant to N.J.A.C. 17:30-6.4 owned businesses for all cannabis businesses in the City.
C. 
Application requirement. Any individual wishing to obtain a license to operate a cannabis related business, including but not limited to a medical cannabis dispensary, medical dispensary with personal use cannabis retail if approved by the Commission or Class 5 licensed retail business shall file a license application with the City Clerk.
A. 
Determination of complete application.
(1) 
Upon receipt of an application and application fee by the Office of the City Clerk, the application will be provided to the Division of Land Use for determination of completeness.
(2) 
The Division of Land Use shall review the application to determine a complete application has been submitted within 10 calendar days (weekends and holidays excluded).
(a) 
For incomplete applications, the Division of Land Use shall submit a written response to the applicant delineating the components of the application which are incomplete.
[1] 
Incomplete applications that are not corrected with 45 calendar days of the incompleteness letter shall be considered abandoned.
(b) 
For complete applications, the Division of Land Use shall provide a written confirmation of same to the Evaluation Committee for technical review of the merits of the application. A copy of the written communication shall be transmitted to the applicant.
B. 
Technical review - evaluation committee.
(1) 
Upon receipt of a determination of complete application from the Division of Land Use, the Evaluation Committee shall perform a technical review of the submitted application within 30 calendar days (weekends and holidays excluded).
(2) 
The Evaluation Committee shall provide written technical review comments to the Advisory Committee for further consideration. A copy of the written communication shall be transmitted to the applicant.
(3) 
In the event the Evaluation Committee determines substantial technical deficiencies in the application documents, the Evaluation Committee may request additional or revised information from the applicant.
(4) 
The applicant shall provide responses within 30 calendar days (weekends and holidays excluded). Responses not received within the aforementioned timeframe will be considered as abandonment of the application.
C. 
Endorsement recommendation - Advisory Committee.
(1) 
Upon receipt of technical review comments from the Evaluation Committee, the Advisory Committee shall review the findings of the Evaluation Committee and determine their agreement with the findings within 30 calendar days (weekends and holidays excluded).
(2) 
The Advisory Committee shall not recommend endorsement of an application to the Mayor and Council for the following reasons:
(a) 
The applicant has materially failed to complete any portion of the application:
(b) 
The Evaluation Committee technical review indicates substantial technical deficiencies; or
(c) 
Issuance of a license would be contrary to the public health, safety, and welfare of the residents of the City of Rahway.
(3) 
Should the Advisory Committee find the technical review comments of the Evaluation Committee favorable towards recommendation of an endorsing resolution, the Advisory Committee shall submit a written statement to the Mayor and Council recommending same. A copy of the written communication shall be transmitted to the applicant.
D. 
Endorsing resolution - Mayor and Council.
(1) 
Upon receipt of a recommendation to endorse the application from the Advisory Committee, the Mayor and Council shall add to the next available Council agenda a resolution of endorsement for the applicant.
(2) 
When the permitted number of licenses for each cannabis license type per § 421-64.1 has been issued by the City Council, applications and application fees for that cannabis license type will no longer be accepted.
(3) 
Notwithstanding the foregoing application process, an endorsing resolution from the City Council shall entitle the recipient applicant to pursue a state permit for up to 12 months, which may be extended in the Advisory Committee's and ultimately the City Council's discretion for an additional six months if good cause is shown. No license shall be issued until the applicant has received a state permit and satisfied other prerequisites of municipal licensure. If the recipient of a notice of award has not received a state permit within 12 months from issuance, unless extended for good cause, the Advisory Committee shall initiate a new application process and evaluate all applicants under the above criteria.
E. 
Land Use Board approval and other approvals.
(1) 
Upon receipt of an endorsing resolution from the City Council, the Applicant shall file an application with the appropriate Land Use Board of the City of Rahway for land use approval.
(2) 
Approval from the appropriate Land Use Board of the City of Rahway does not relieve the applicant from the requirement to comply with regulations or obtain approvals from any state or other regulatory agency.
A. 
Application completeness. To be deemed complete, all applications shall be accompanied by the following:
(1) 
The applicant shall submit a nonrefundable application fee in the amount of $1,000 per application filed. The annual renewal fee for the license shall be $1,000.
(2) 
The applicant shall submit proof that the applicant has or will have lawful possession of the premises proposed for the cannabis related business, which proof may consist of: a deed, a lease, a real estate contract contingent upon successful licensing, or a binding letter of intent by the owner of the premises indicating an intent to lease the premises to the entrant contingent upon successful licensing.
(3) 
The applicant shall submit proof of financial capability to open and operate the cannabis establishment for which the applicant is seeking a license.
(4) 
The applicant shall submit affidavits regarding the following:
(a) 
An affidavit and documentary proof of compliance with all state and local laws regarding affirmative action, antidiscrimination and fair employment practices. The affidavit shall certify that the applicant and/or owners will not discriminate based on race, color, religion (creed), gender, gender expression, age, national origin (ancestry), disability, marital status, sexual orientation, or military status, in any of its activities or operations.
(b) 
An affidavit certifying that the applicant and the application shall otherwise comply with any, and all qualification standards set forth in the state and City laws or regulations.
(c) 
An affidavit certifying that, in addition to complying with any state requirement related to good character and criminal background, any person proposed to have an ownership interest in the license has not had any cannabis license or permit revoked for a violation affecting public safety in the State of New Jersey or a subdivision thereof within the preceding five years.
(5) 
All information contained in the technical review section below must also be submitted to be deemed complete.
B. 
Technical review. For the purposes of the technical review by the Evaluation Committee, all applications shall be accompanied by the following information:
(1) 
Applicant's owners' or principals' qualifications and experience including but not limited to, operating in highly regulated industries, such as cannabis, healthcare, and retail pharmacies, with a preference to experience in operating such businesses within the State of New Jersey and where the value of owners' experience shall outweigh the experience of nonowner principals.
(2) 
Applicant's qualifications and experience related to public safety and security, and applicant's plans for storage of products and currency, physical security, video surveillance, security personnel, and visitor management.
(3) 
The applicant shall provide a map of the location proposed for licensing. In the event the location is not consistent with all applicable City zoning laws and the location restrictions set forth in Chapter 421, Zoning, the applicant shall provide a written explanation of the deviations from the aforementioned laws and restrictions.
(4) 
Applicant's or its owners' experience conducting or supporting or plans to conduct institutional review board-approved research involving human subjects that is related to medical cannabis or substance abuse, clinical research with IRB approval shall outweigh plans to conduct such research. Many applicants have agreements with the federal and/or state government, pharmaceutical industries, or medical school (teaching hospitals). Examples may be agreements with Merck and/or Robert Wood Johnson in Rahway.
(5) 
Applicant's or its owners' demonstrated sufficient experience as responsible employers with a documented plan to create well-paying jobs with employee benefits in the municipality, such as a commitment to hiring Rahway residents.
(6) 
Applicant's experience or demonstrated ability with banking in the regulated cannabis industry in accordance with state and/or federal regulations regarding cannabis-related businesses, which shall include a letter from one or more financial institutions stating such institution is aware of applicant's business activities in regulated cannabis.
(7) 
Applicant's demonstrated commitment to diversity in its ownership composition pursuant to N.J.A.C. 17:30-6.4 and hiring practices.
(8) 
Applicant shall provide a statement regarding their plan to provide financial and in-kind contribution commitments towards investing in Rahway, such as a commitment to supporting drug and alcohol prevention events, intervention programs, and educational activities for school age children in Rahway.
A. 
Under no circumstance shall a local license for any cannabis related business, including but not limited to, medical cannabis dispensary, medical cannabis dispensary with personal use cannabis retail, if approved by the Commission, and/or Class 5 licensed retail business issued by the Advisory Committee be effective until or unless the state has issued the requisite licenses to operate such a facility.
B. 
It is the intent of this chapter that no cannabis related business including but not limited to a medical cannabis dispensary medical cannabis dispensary with personal use cannabis retail, or Class 5 licensed retail business may lawfully exist in the City without the issuance of a state license and full regulatory oversight of the cannabis establishment by the state licensing authority as well as oversight and issuance of a license by the City.
C. 
Any local license issued pursuant to this chapter shall be valid for a period of one year from the date of issuance, and shall have an annually renewal fee of $1,000, subject to the provisions of this chapter.
D. 
The Advisory Committee may, at their discretion, adjust the renewal date of the local license to correlate with an applicant's state licensing and renewal schedule.
E. 
Renewal of any license shall be governed by any code amendments, additional restrictions or changes in regulations adopted since the previous license was issued or renewed.
F. 
Transfer of ownership of any cannabis related business, including but not limited to a medical cannabis dispensary or Class 5 retail cannabis license, change of location, or modification to expand a licensed premise shall be treated as a new application.
G. 
If the licensee has received notice of violation of any law or regulation, including disciplinary action against any past or current cannabis license, the application for renewal shall include a copy of the notice of disciplinary action with their application.
H. 
Except where 1) the Evaluation Committee has received a complete renewal application along with the requisite fees, 2) the Advisory Committee recommends said applicant to the Mayor and Council for license renewal, and 3) the City Council has issued a license renewal, it shall be unlawful for any person to manufacture, sell, distribute, transfer, transport, or otherwise remove cannabis or cannabis products from the premises of any licensed cannabis related business including but not limited to a medical cannabis dispensary or Class 5 licensed retail business after the expiration date recorded on the face of the license.
A. 
Disciplinary actions. Procedures for investigation of license violations and for suspension, revocation, or other licensing sanctions as a result of any such violation shall be as follows:
(1) 
First offense: Up to $250 per violation per day.
(2) 
Second offense: Up to $500 per violation per day.
(3) 
Third violation shall result in summary suspension.
B. 
Summary suspension. Notwithstanding the foregoing section, upon receipt of information that provides reasonable grounds that a licensee has engaged in 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 Business Administrator may order a meeting of the Disciplinary Committee to review and recommend to the City governing body that they enter a summary suspension order for the immediate suspension of such license pending further investigation.
(1) 
The summary suspension order shall be in writing and shall state the reasons therefore. The licensee shall be afforded an opportunity for a hearing as outlined herein.
(2) 
The Disciplinary Committee shall consist of the Business Administrator; Department of Health Director/Health Officer Police Department Director; Fire Department Chief; City Planner; Department of Engineering and Land Use Director; Finance Department Director/CFO; and the Code Enforcement Director or their designees.
(3) 
A Disciplinary Committee hearing shall be scheduled within 30 days of the date of the order.
(4) 
The Disciplinary Committee is authorized to impose any fines, conditions, restrictions, suspensions, or combination thereof authorized by the State of New Jersey. In the absence of state specified penalties, the City may issue fines up to, but not to exceed, $2,000 as listed above per offense and/or suspension of license for a period not to exceed six months.
C. 
Inactive licenses. Following the commencement of any cannabis related businesses including but not limited to, retail sales of cannabis or cannabis products at a licensed medical cannabis dispensary or Class 5 licensed cannabis retail business, the City Council with the assistance of the Disciplinary Committee may suspend or revoke any license if the licensed premise has been inactive or unoccupied by the licensee for at least six months.
D. 
State license. The Disciplinary Committee may recommend to the City Council that they suspend or revoke any license if the corresponding state license or permit for the subject location is expired, surrendered, suspended, or revoked.
A. 
Any applicant aggrieved by the denial of a local license as provided in this chapter or any licensee subject to any disciplinary action as provided in this chapter shall have the right of appeal to the governing body within 10 business days after the written notice of the action taken has been mailed to the applicant or licensee.
B. 
Applicant or licensee shall provide a written statement to the City Clerk setting forth fully the grounds for the appeal and requesting a hearing before the governing body.
C. 
The governing body shall set a time and place for hearing on such appeal and notice of the hearing shall be sent by registered mail to the applicant or licensee at their address on file with the City at least 10 business days prior to the date set for the hearing.
D. 
The decision of the governing body on such appeal shall be final and conclusive.