[HISTORY: Adopted by the Mayor and Council of the Borough
of Somerville 7-19-2021 by Ord. No. 2641. Amendments noted where
applicable.]
The purpose of this chapter is to regulate the sale and distribution
of cannabis in the Borough of Somerville, Somerset County, New Jersey,
and to provide for the issuance of licenses thereof and fix license
fees, in accordance with the provisions established by the State of
New Jersey.
As used in this chapter, the following terms shall have the
meanings indicated:
Establishment involved in growing and cultivating cannabis.
Establishment involved in the manufacturing, preparation
and packaging of cannabis items.
Establishment involved in obtaining and selling cannabis
items for later resale by other licenses.
Establishment involved in transporting cannabis plants in
bulk from one license cultivator to another cultivator or cannabis
items in bulk from any type of licensed cannabis business to another.
Establishment involved in the sale of cannabis and cannabis-related
items. The dispensation, sale, or distribution of cannabis or cannabis-derived
or infused products and/or related clinical research, provided that
such facility shall not cultivate, manufacture, process, or wholesale
cannabis or cannabis products from such facility.
Providing courier services for consumer purchases that are
fulfilled by a licensed cannabis retailer in order to make deliveries
of the purchased items to a consumer, which service would include
the ability of a consumer to make purchase directly through a cannabis
delivery service which would be presented by the delivery service
for fulfillment by a retailer and then delivered to the consumer.
It is hereby unlawful for any person to consume cannabis products,
to smoke, vape, aerosolize, ingest or otherwise consume in any public
place any cannabis products on a public street, highway, avenue, alley
or road of the Borough; or upon any public or quasipublic parking
lots, or other parking facilities in the Borough; or on any public
grounds, parks, sidewalks, waterway or quasipublic areas; or any shopping
center common areas; or in an automobile, or other vehicle or on any
means of transportation on a public street, highway, alley, avenues,
grounds or sidewalks. Any unlawful consumption shall be a disorderly
person’s offense and subject to penalties provided by law. Consumption
shall not be allowed in any cannabis retail licensed establishments.
This chapter prohibits the issuing of licenses for Classes 1,2,3,4
and 6.
This chapter shall permit the issuing of Class 5 license(s),
cannabis retailer license, without consumption.
A.
Class 5
license(s) shall be allowed in the Borough of Somerville accordance
with the Land Use Laws of the Borough of Somerville. The Land Use
Law shall define the geographical boundaries in which Class 5 establishments
may operate. The Class 5 Retailer License establishment may only operate
in strict compliance with the Zoning Laws adopted by the governing
body.
B.
In addition
to complying with the Borough of Somerville Land Use Law, establishments
must comply with the following: Class 5 license(s) shall be permitted,
pursuant to this chapter, only if the following requirements are complied
with:
(1)
The
regulations of this section 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. If any provision of this section is inconsistent
with the statutes and/or regulations of the State of New Jersey, the
state statutes and/or regulations shall prevail.
(2)
Prior
to the operation of any Class 5 establishment, a permit or license
must be obtained from the State of New Jersey and from the Borough
of Somerville for the applicable type(s) of cannabis establishment.
No Class 5 retailer license establishments shall be permitted to operate
without state and municipal permits or licenses.
(3)
Permitted
uses shall, at all times, comply with the terms and conditions of
the licensee’s cannabis establishment license for permits or
licenses issued by the State of New Jersey and the Borough of Somerville.
(4)
No Class
5 establishment shall be allowed as a home professional occupation
(5)
No Class
5 establishment shall be housed in a vehicle or any movable or mobile
structure.
(6)
No Class
5 establishment shall allow consumption. And all additional requirements
of the Borough’s Land Use law. It is hereby unlawful for any
person to consume cannabis products, to smoke, vape, aerosolize, ingest
or otherwise consume any cannabis products in the establishment.
(7)
Noise.
Outside generators and other mechanical equipment used for any kind
of power supply, cooling, or ventilation shall be enclosed and have
appropriate baffles, mufflers, and/or other noise reduction systems
to mitigate noise pollution. And all additional requirements of the
Borough’s Land Use Law.
(8)
Security.
All cannabis establishments shall be secured in accordance with State
of New Jersey statutes and regulations; shall have a round-the-clock
video surveillance system, 365 days a year; and shall have trained
security personnel on site at all times during operating hours.
(9)
Hours.
No cannabis retailer may open to customers for business before 10:00
a.m. or remain open to customers for business after 10:00 p.m., Monday
through Friday, Saturday 10:00 a.m. to 10:00 p.m. and Sunday from
12:00 noon to 6:00 p.m.
A.
The cannabis
transfer tax in the Borough of Somerville shall be fixed at a uniform
percentage rate of 2% on all sales or transfers of cannabis products
from any of the cannabis establishments that are located with the
geographical boundaries of the Borough of Somerville. This tax shall
be imposed on receipts from the sale of cannabis by a cannabis retailer.
B.
A user tax is hereby also established at the same rate of the transfer tax as contained herein and 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 Subsection A above, from any licensed establishment that transfers cannabis products.
C.
The transfer
tax or user tax imposed by this chapter shall be in addition to any
other tax imposed or could be imposed, pursuant for this section,
other than those which generate from retail receipts from the retail
sales by cannabis retailers, shall be exempt for the tax imposed under
the Sales and Use Tax Act (NJSA 54:32B-1 et seq.). The transfer tax
or user tax will be assessed and collected pursuant to established
state law and administrative rules and regulations.
A.
Licensing.
(1)
Local
licensing authority. The governing body is hereby designated to act
as the local licensing authority for the Borough for all Class 5 cannabis
retailer licensed establishments. Under all circumstances in which state
law requires communication to the Borough 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 Borough of any action taken by the state
licensing authority, the exclusive authority for receiving such communications
and granting such approvals shall be exercised by the governing body.
The Clerk- Administrator shall serve as the administrator and secretary
for all correspondence.
(2)
Under
no circumstances shall a local license for a Class 5 cannabis retailer
licensed establishment issued by the governing body be effective until
or unless the state has issued the requisite permits or licenses to
operate such a facility. It is the intent of this chapter that no
cannabis establishment may lawfully operate in the Borough of Somerville
without the issuance of a state permit or license and full regulatory
oversight of the cannabis establishment by the Cannabis Regulatory
Commission or other state licensing authority as well as oversight
and issuance of a license by the Borough.
(3)
Classification
of licenses. The Borough, subject to land use approval and state licensure,
may issue the following municipal licenses to operate a cannabis establishment:
(a)
Class
5: cannabis retailer license.
(4)
Maximum
number of licenses. The Borough may issue a maximum of two Class 5
cannabis retailer licenses.
(a)
Licensure:
an entity may not hold more than one cannabis retailer license. Any
license conditionally issued by the Borough is contingent upon the
locally licensed entity’s or individual’s subsequent recipient
of a state permit or license of the same class or type of regulated
cannabis activity.
(5)
Location
of licenses. The cannabis retailer license shall only operate in the
B-5 Zoning District. The Borough shall not issue a permit to any retailer
within 600 feet of existing Class 5 cannabis retailer license.
B.
Licensing
process.
(1)
Application.
Persons wishing to obtain a Class 5 cannabis retailer license shall
file a license application with the Clerk-Administrator, on a standardized
form established by the Clerk-Administrator and available in the Clerk-Administrator’s
office. The Clerk-Administrator shall establish a reasonable application
period and deadline for all applications. An application shall be
deemed incomplete, and shall not be processed by the Clerk-Administrator
until all documents and application fees are submitted. To be deemed
complete, all applications shall be accompanied by the following:
(a)
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: 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.
(b)
The
applicant shall submit an affidavit and documentary proof of compliance
with all state and local laws regarding affirmative action, antidiscrimination
and fair employment practices. The applicant shall also certify under
oath that they will not and shall 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.
(c)
The
location proposed for licensing by the applicant shall comply with
all applicable municipal zoning laws and the location restrictions
set forth in this Code.
(d)
The
applicant shall submit, to the satisfaction of the Clerk-Administrator,
proof of financial capability to open and operate the marijuana establishment
for which the applicant is seeking a license. Standards for proof
of financial capability shall be determined by the Clerk-Administrator,
additional information may be requested by the governing body or Committee
conducting the review.
(e)
The
applicant shall submit all required nonrefundable fees for the application
and conditional license in accordance with the following fee schedule:
[1]
Class 5: $2,000.
(f)
The
applicant shall submit all annual registration fees required in accordance
with the following fee schedule, which shall be refunded in the event
the applicant does not receive a license:
[1]
Class 5: $10,000 per year, cannabis retail license.
(g)
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 shall not have 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
(h)
The
applicant and the application shall otherwise comply with any, and
all qualification standards set forth in the state and Borough laws
or regulations.
C.
Application
review and multiple applicants.
(1)
In accordance
with state law, the applicant shall receive a letter of support from
the Borough of Somerville. A Committee of the governing body (selected
by the Mayor) which shall include the Clerk-Administrator shall evaluate
all applicants and recommend to the governing body that the Borough
of Somerville issue a notification of award after consideration and
evaluation of the following criteria. Such criteria may not apply
with all applicants; however, the Committee shall use this as a guideline
for evaluation.
(a)
Applicant’s
owners’ or principals’ qualifications and experience operating
in highly regulated industries, including cannabis, healthcare, pharmaceutical
manufacturing, and retail pharmacies, with preference to experience
operating such businesses within the State of New Jersey and where
the value of owners’ experience shall outweigh the experience
of non-owner principals.
(b)
Applicant’s
qualifications and experience related to public safety and security,
including any of the applicant’s owners’ or principals’
experience in law enforcement and drug enforcement (not to exceed
1,000 words), and a summary of the applicant’s plans for storage
of products and currency, physical security, video surveillance, security
personnel, and visitor management.
(c)
Applicant’s
or its owners’ demonstrated commitment or sufficient experience
as responsible employers, defined as the applicant entity being a
party to a labor peace agreement or the applicant entity or its parent
company being a party to a collective bargaining agreement in the
regulated cannabis industry for at least one year prior to application
for a Class 5 cannabis retailer license, in an effort to create well-paying
jobs with employee benefits in the municipality.
(d)
Summary
of the applicant’s environmental impact and sustainability plan
(not to exceed 500 words); whether the applicant entity or its parent
company has any recognitions from or registrations with federal or
New Jersey state environmental regulators for innovation in sustainability;
and whether the applicant entity or its parent company holds any certification
under international standards demonstrating the applicant has an effective
environmental management system or has a designated sustainability
officer to conduct internal audits to assess the effective implementation
of an environmental management system.
(e)
Applicant’s
ties to the host community, demonstrated by at least one shareholder’s
proof of relationship and ties to New Jersey or Somerset County.
(f)
Applicant’s
demonstrated commitment to diversity in its ownership composition
and hiring practices and whether the applicant entity or its parent
company holds any certifications as a New Jersey minority-owned, women-owned,
or veteran-owned business.
D.
Notification
of award and conditional municipal license.
(1)
Notwithstanding
the foregoing competitive application process, a notification of award
issued by the governing body and conditional municipal license shall
entitle the recipient applicant to pursue a state permit or license
in the appropriate classification for up to 12 months, which may be
extended at its own discretion by the governing body for an additional six
months for good cause. No license to operate shall issue until the
applicant has received a state permit and satisfied other prerequisites
of municipal licensure. If the recipient of a notice of award and
conditional license has not received a state permit or license within
12 months from issuance, unless extended for good cause, the Clerk-Administrator
shall issue a new request for applications and evaluation of licensure
as established under the above criteria.
E.
(Reserved)
F.
Term of
license and license renewals.
(1)
Any
local license issued pursuant to this chapter shall be valid for a
period of three years from the date of issuance and shall be renewed
in accordance with the provisions of the chapter.
(2)
The
Clerk-Administrator may, at his/her discretion, adjust the renewal
date of the local license to correlate with an applicant's state licensing
and renewal schedule and said renewals shall be approved by resolution
of the governing body.
(3)
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.
(4)
Transfer
of ownership of any local license or change of location of any license
or modification to expand a licensed premise shall be subject to the
Borough Council approval and if required the appropriate Land Use
Board and zoning approval. The appropriate escrows must be posted
in order to review any application with the Borough’s Land Use
Boards.
(5)
Except
where the Clerk-Administrator has received a complete renewal application
along with the requisite fees, and the governing body has issued a
license renewal, it shall be unlawful for any person to operate after
the date of license expiration.
G.
(Reserved)
H.
(Reserved)
I.
Disciplinary
actions; sanctions; violations and penalties.
(1)
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:
(2)
Summary
suspension. Notwithstanding the foregoing section, when the Clerk-
Administrator has reasonable grounds to believe 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 Clerk-Administrator
may enter a summary suspension order for the immediate suspension
of such license pending further investigation.
(a)
The
summary suspension order shall be in writing and shall state the reasons
therefor. The licensee shall be afforded an opportunity for a hearing
as outlined herein.
(b)
The
Clerk-Administrator shall convene a review panel consisting of the
Clerk-Administrator, a second administrative officer designated by
the Mayor, and the Chief of Police. The hearing shall be scheduled
within 30 days of the date of the order.
(c)
The
review panel 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 Borough may
issue fines up to, but not to exceed, $2,500 per offense and/or suspension
of license for a period not to exceed 6 months
(3)
Inactive
licenses. Following the commencement of retail sales of cannabis or
cannabis products, the governing body may suspend or revoke any license
if the licensed premises have been inactive or unoccupied by the licensee
for at least six months.
(4)
State
license. The governing body may suspend or revoke any license if the
corresponding state license or permit for the subject location is
expired, surrendered, suspended, or revoked.
