[HISTORY: Adopted by the Council of the Township of Montclair 8-10-2021 by Ord. No. O-21-17. Amendments noted where applicable.]
The following words and phrases, when used in this chapter, shall have the following meanings:
ALTERNATIVE TREATMENT CENTER
An organization issued a permit pursuant to the Jake Honig Compassionate Use Medical Cannabis Act, P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.) to operate as a medical cannabis cultivator, medical cannabis manufacturer, medical cannabis dispensary, or clinical registrant, as well as any alternative treatment center deemed pursuant to Section 7 of that Act (N.J.S.A. 24:6I-7) to concurrently hold a medical cannabis cultivator permit, a medical cannabis manufacturer permit, and a medical cannabis dispensary permit.
CANNABIS CONSUMPTION AREA
A designated location operated by a cannabis retailer or permit holder for dispensing or selling cannabis, for which both a state and local endorsement has been obtained, that is either: 1) an indoor, structurally enclosed area of the cannabis retailer or permit holder that is separate from the area in which retail sales of cannabis items or the dispensing of medical cannabis occurs; or 2) an exterior structure on the same premises as the cannabis retailer or permit holder, either separate from or connected to the premises, at which cannabis items or medical cannabis either obtained from the cannabis retailer or permit holder, or brought by a person to the consumption area, may be consumed. A cannabis consumption area shall be designated by conspicuous signage indicating whether the cannabis consumption area may be used for the on-premises consumption of medical cannabis, personal use cannabis, or both.
CANNABIS CULTIVATOR
Any licensed person or entity that grows, cultivates, or produces adult-use cannabis in this state, and sells, and may transport, this cannabis to other cannabis cultivators, or usable cannabis to cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 1 Cannabis Cultivator license.
CANNABIS DELIVERY SERVICE
Any licensed person or entity that provides courier services for consumer purchases of cannabis items and related supplies fulfilled by a cannabis retailer in order to make deliveries of cannabis items and related supplies to that consumer, and which services include the ability of a consumer to purchase the cannabis items directly through the cannabis delivery service, which after presenting the purchase order to the cannabis retailer for fulfillment, is delivered to that consumer. This person or entity shall hold a Class 6 Cannabis Delivery license.
CANNABIS DISPENSARY or MEDICAL CANNABIS DISPENSARY
An organization issued a permit by the commission that authorizes the organization to: purchase or obtain medical cannabis and related supplies from medical cannabis cultivators; purchase or obtain medical cannabis products and related supplies from medical cannabis manufacturers; purchase or obtain medical cannabis, medical cannabis products, and related supplies and paraphernalia from other medical cannabis dispensaries and from clinical registrants; deliver, transfer, transport, distribute, supply, and sell medical cannabis and medical cannabis products to other medical cannabis dispensaries; furnish medical cannabis, including medical cannabis products, to a medical cannabis handler for delivery to a registered qualifying patient, designated caregiver, or institutional caregiver consistent with the requirements of Subsection i of Section 27 of P.L. 2019, c. 153 (N.J.S.A. 24:6I-20i); and 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. A medical cannabis dispensary permit shall not authorize the permit holder to cultivate medical cannabis, or to produce, manufacture, or otherwise create medical cannabis products.
CANNABIS DISTRIBUTOR
Any licensed person or entity that transports cannabis in bulk intrastate from one licensed cannabis cultivator to another licensed cannabis cultivator, or transports cannabis items in bulk intrastate from any one class of licensed cannabis establishment to another class of licensed cannabis establishment and may engage in the temporary storage of cannabis or cannabis items as necessary to carry out transportation activities. This person or entity shall hold a Class 4 Cannabis Distributor license.
CANNABIS ESTABLISHMENT
A cannabis cultivator, cannabis manufacturer, cannabis wholesaler, or cannabis retailer.
CANNABIS MANUFACTURER
Any licensed person or entity that processes cannabis items in this state by purchasing or otherwise obtaining usable cannabis, manufacturing, preparing and packaging cannabis items, and selling, and optionally transporting, these items to other cannabis manufacturers, cannabis wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a Class 2 Cannabis Manufacturer license.
CANNABIS RETAILER
Any licensed person or entity that purchases or otherwise obtains usable cannabis from cannabis cultivators and cannabis items from cannabis manufacturers or cannabis wholesalers, and sells these to consumers from a retail store, and may use a cannabis delivery service or a certified cannabis handler for the off-premises delivery of cannabis items and related supplies to consumers. A cannabis retailer shall also accept consumer purchases to be fulfilled from its retail store that are presented by a cannabis delivery service which will be delivered by the cannabis delivery service to that consumer. This person or entity shall hold a Class 5 Cannabis Retailer license.
CANNABIS WHOLESALER
Any licensed person or entity that purchases or otherwise obtains, stores, sells or otherwise transfers, and may transport, cannabis items for the purpose of resale or other transfer to either another cannabis wholesaler or to a cannabis retailer, but not to consumers. This person or entity shall hold a Class 3 Cannabis Wholesaler license.
LICENSE
A. 
Any license issued under relevant state law, including a license that is designated as either a:
(1) 
Class 1 Cannabis Cultivator license;
(2) 
Class 2 Cannabis Manufacturer license;
(3) 
Class 3 Cannabis Wholesaler license;
(4) 
Class 4 Cannabis Distributor license;
(5) 
Class 5 Cannabis Retailer license; or
(6) 
Class 6 Cannabis Delivery license.
B. 
An entity that holds a license is a "licensee."
MANUFACTURE
The drying, processing, compounding, or conversion of usable cannabis into cannabis products or cannabis resins. "Manufacture" does not include packaging or labeling.
MUNICIPAL LICENSE
A license issued pursuant to this chapter by the Township of Montclair.
WHOLESALE TRADE
Establishments or places of business primarily engaged in selling merchandise to other businesses, including retailers, industrial, commercial, institutional, or professional business users, other wholesalers, or acting as agents or brokers and buying merchandise for, or selling merchandise to, such individuals or companies.
It is the intention of the Township Council that the definitions in § 110-1 are and remain consistent with the laws of the State of New Jersey. In the event that the meaning of any of the above words and phrases is not consistent with state law now or in the future, the state law definition shall govern.
A. 
No person or entity shall operate as a cannabis establishment, cannabis distributor, or cannabis delivery service in the Township of Montclair unless a license is issued by the State of New Jersey in accordance with the Act and by the Township of Montclair pursuant to this chapter. The sale of cannabis shall be conducted in compliance with all laws, ordinances, regulations or policies applicable to similar activities.
B. 
No person or entity shall operate as an alternative treatment center unless a license is issued by the State of New Jersey pursuant to the Jake Honig Compassionate Use Medical Cannabis Act, P.L. 2009, c. 307 (N.J.S.A. 24:6I-1 et seq.). Nothing in this chapter shall be construed to supersede federal and state laws governing the sale and distribution of cannabis.
C. 
Properly state-licensed cannabis delivery services may deliver in the Township of Montclair as authorized by state law subject to this chapter.
A. 
Local licensing authority. The Township Council is hereby designated to act as the local licensing authority of the Township for all cannabis establishments, cannabis distributors and cannabis delivery services. Under all circumstances in which state law requires communication to the Township by the Cannabis Regulatory Commission or any other state agency with regard to the licensing or operation of cannabis establishments, cannabis distributors and cannabis delivery services by the state, or in which state law requires any review or approval by the Township 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 Township Council.
B. 
Under no circumstances shall a municipal license for a cannabis establishment, cannabis distributor or cannabis delivery service issued by the Township Council be effective unless and until the state has issued the requisite permits or licenses to operate such a facility.
The Township, subject to the provisions of this chapter, land use approval and state licensure, may issue the following municipal licenses: Category A: Cannabis Retailer; Category B: Cannabis Delivery Service; Category C: Cannabis Wholesaler; Category D: Cannabis Distributor; Category E: Cannabis Manufacturer; Category F: Cannabis Cultivator.
The Township may issue a maximum of:
A. 
Three Category A licenses.
[Amended 5-17-2022 by Ord. No. O-22-11]
B. 
Three Category B licenses.
[Amended 5-17-2022 by Ord. No. O-22-11]
C. 
One Category C license.
D. 
One Category D license.
E. 
One Category E license.
F. 
One Category F license.
If the applicant for a municipal license does not hold a valid state-issued license, then a license issued by the Township is conditional and contingent upon the subsequent receipt of a state permit or license of the same class or type of regulated cannabis activity.
Persons wishing to obtain a municipal cannabis license shall file a license application with the Township Council, on a standardized form established by the Township Council and available in the office of the Township Clerk. The Township Clerk shall establish a reasonable application period and deadline for all applications. An application shall be deemed incomplete, and shall not be processed, 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 retailer, 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, gender identity, 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 Township Council, proof of financial capability to open and operate the cannabis retailer for which the applicant is seeking a license. Standards for proof of financial capability shall be determined by the Township Council.
E. 
The applicant shall submit all required fees for the application and conditional license in accordance with the fee schedule set forth in this chapter. All fees shall be nonrefundable except as expressly provided herein.
F. 
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.
G. 
The applicant and the application shall otherwise comply with any and all qualification standards set forth in the state and Township laws or regulations.
Class 1/Category F cannabis cultivators and Class 2/Category E cannabis manufacturers shall be permitted as provided in Montclair Code Chapter 347, Zoning, subject to the following:
A. 
Buildings: All facilities shall be enclosed in heated/air-conditioned buildings. Notwithstanding the foregoing, Class 1 Cannabis Cultivator licensees may be enclosed in a secure greenhouse.
B. 
No public access: In no event shall a cannabis cultivator or a cannabis manufacturer be open to the public.
C. 
Odor control: The facility shall provide an air treatment system with sufficient odor-absorbing ventilation and exhaust systems such that any odor generated inside the facility is not detectable by a person of reasonable sensitivity at the property line of the subject property. Odor from the facility shall be monitored on an annual basis at the discretion of the Township by a licensed, qualified contractor chosen by the Township at a cost that should be paid for by the property owner.
D. 
Records: Records of all cannabis purchased and sold must be made available upon 14 days' advance notice when called for by the Township, or any other authorized person or entity.
E. 
Security plan: Class 1 cannabis cultivators and Class 2 cannabis manufacturers shall submit a security plan for review to the Township detailing all security measures taken to ensure community safety and to eliminate unauthorized access to the premises.
F. 
Signage: Signs shall be limited to the address, legal name or any registered alternate name, and emergency contact information. All signs shall comply with Montclair Code Chapter 347, Article XVIII, Signs, § 347-105 et seq., and state law.
Class 3/Category C cannabis wholesalers, Class 4/Category D cannabis distributors, and Class 6/Category B cannabis delivery services shall be permitted as provided in Montclair Code Chapter 347, Zoning, subject to the following:
A. 
Buildings: All facilities shall be enclosed in heated/air-conditioned buildings, not in greenhouses, hoop houses or outdoors.
B. 
Hours: No deliveries of cannabis to the public by a Class 6 cannabis delivery service shall occur between the hours of 11:00 p.m. and 8:00 a.m., Monday through Sunday.
C. 
Identification plan: A Class 6 cannabis delivery service shall submit an identification plan for review to the Township detailing all measures taken to ensure compliance that patrons are at least 21 years of age.
D. 
No public access: In no event shall a Class 3 cannabis wholesaler, Class 4 cannabis distributor, or Class 6 cannabis delivery service be open to the public.
E. 
Odor control: The facility shall provide an air treatment system with sufficient odor-absorbing ventilation and exhaust systems such that any odor generated inside the facility is not detectable by a person of reasonable sensitivity at the property line of the subject property. Odor from the facility shall be monitored on an annual basis at the discretion of the Township by a licensed, qualified contractor chosen by the Township at a cost that should be paid for by the property owner.
F. 
Records: Records of all cannabis purchased and sold must be made available upon 14 days' advance notice when called for by the Township, or any other authorized person or entity.
G. 
Security plan: Class 3 cannabis wholesalers, Class 4 cannabis distributors, and Class 6 cannabis delivery services shall submit a security plan for review to the Township detailing all security measures taken to ensure community safety and to eliminate unauthorized access to the premises.
H. 
Signage: Signs shall be limited to the address, legal name or any registered alternate name, and emergency contact information. All signs shall comply with Montclair Code Chapter 347, Article XVIII, Signs, § 347-105 et seq., and state law.
Class 5/Category A cannabis retailers shall be permitted as provided in Montclair Code Chapter 347, Zoning, subject to the following:
A. 
Hours: No cannabis retailer shall be open to the public between the hours of 11:00 p.m. and 8:00 a.m., Monday through Sunday.
B. 
Identification Plan: Class 5 cannabis retailers shall submit an identification plan for review to the Township detailing all measures taken to ensure compliance that patrons are at least 21 years of age.
C. 
Odor control: The Class 5 Cannabis Retail facility shall provide an air treatment system with sufficient odor-absorbing ventilation and exhaust systems such that any odor generated inside the facility is not detectable by a person of reasonable sensitivity at the property line of the subject property. Odor from the facility shall be monitored on an annual basis at the discretion of the Township by a licensed, qualified contractor chosen by the Township at a cost that should be paid for by the property owner.
D. 
Records: Records of all cannabis purchased and sold must be made available upon 14 days' advance notice when called for by the Township, or any other authorized person or entity.
E. 
Security Plan: Class 5 cannabis retailers shall submit a security plan for review to the Township detailing all security measures taken to ensure community safety and to eliminate unauthorized access to the premises.
F. 
Signage: Signs shall be limited to the address, legal name or any registered alternate name, and emergency contact information. All signs shall comply with Montclair Code Chapter 347, Article XVIII, Signs, § 347-105 et seq., and state law.
Alternative treatment centers shall be permitted as provided in Montclair Code Chapter 347, Zoning, subject to meeting all requirements of the laws and regulations of the State of New Jersey. In the event that an alternative treatment center holds a cannabis retailer license, that alternative treatment center shall also be required to comply with all state and municipal regulations applicable to cannabis retailers.
[Amended 5-17-2022 by Ord. No. O-22-11]
In the event there are multiple applicants for a limited number of licenses, the Township Council shall evaluate all applicants and issue a notification of award at its sole discretion after consideration and evaluation of the following criteria:
A. 
Applicant's owners' or principals' qualifications and experience operating in highly regulated industries, including cannabis, health care, 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, 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 cannabis retailer license, in an effort to create well-paying jobs with employee benefits in the municipality;
D. 
Applicant's written commitment to employment of Montclair residents in at least 50% of full-time equivalent positions;
E. 
Summary of the applicant's environmental impact and sustainability plan; 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;
F. 
Applicant's ties to the host community, demonstrated by at least one shareholder's proof of residency in Montclair for five or more years in the past 10 years or at least one shareholder's continuous ownership of a business based in Montclair for five or more years in the past 10 years;
G. 
Applicant's commitment to provide community benefits; and
H. 
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.
Notwithstanding the foregoing competitive application process, a notification of award 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 in the Township Council's discretion for an additional six months for good cause. No license to operate 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 and conditional license has not received a state permit or license within 12 months from issuance, unless extended for good cause, the Township Council shall issue a new request for applications and evaluate all applicants for licensure under the above criteria.
A. 
Any local license issued pursuant to this chapter shall be valid for a period of three years from the date of issuance, subject to payment of the annual registration fee, and shall be renewed at the sole discretion of the Township Council in accordance with the provisions of this chapter.
[Amended 5-17-2022 by Ord. No. O-22-11]
B. 
The Township Council may, at its discretion, adjust the renewal date of the local license to correlate with an applicant's state licensing and renewal schedule.
C. 
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.
[Amended 5-17-2022 by Ord. No. O-22-11]
The applicant and license holder shall pay initial and renewal application fees and annual registration fees according to the following schedule:
License
Application fee
(initial)
Application fee
(renewal)
Annual registration fee
Retailer
$15,000
$2,500
$15,000
Manufacturer
$15,000
$5,000
$15,000
Grower
$15,000
$5,000
$15,000
Wholesaler
$15,000
$5,000
$15,000
Distributor
$15,000
$5,000
$15,000
Delivery Service
$15,000
$2,500
$15,000
This chapter shall not be construed to prevent the conversion of an alternative treatment center to a cannabis establishment, distributor, or delivery service; provided, however, any such alternative treatment center first obtains written approval from the Township and the State of New Jersey and the appropriate state and municipal license.
No cannabis shall be smoked, eaten or otherwise consumed or ingested on the premises of a cannabis establishment, cannabis distributor, or cannabis delivery service, other than in an authorized cannabis consumption area.
Cannabis consumption areas are prohibited in the Township.
All licenses must be posted under glass or equivalent protective surface and shall be posted on the premises in a clear and conspicuous manner so that the same may be easily observed.
A. 
No license shall be transferred, in whole or in part, without the prior written approval of the Township. No successor in interest of a licensee shall acquire any rights or powers without the prior written consent of the Township. For purposes of this chapter, any change in control of the licensee resulting from a merger, consolidation, stock transfer, or asset sale shall be deemed an assignment or transfer that requires the prior written consent of the Township.
B. 
Fee. A fee of $10,000 per license, in addition to any other fees permitted by this chapter, shall be paid to the Township as a condition of approval of a license transfer. No transfer shall be effective until the fee is received.
Within 14 days of receiving a license renewal from the State of New Jersey, a cannabis establishment, cannabis distributor, or cannabis delivery service shall submit a copy to the Township.
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 offense shall result in summary suspension.
B. 
Summary suspension. Notwithstanding the foregoing subsection, when the Township Council 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 Township Council may enter a summary suspension order for the immediate suspension of such license pending further investigation.
C. 
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.
(1) 
The Township Council shall convene a review panel consisting of the Manager, 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.
(2) 
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 Township may issue fines up to, but not to exceed, $2,500 per offense and/or suspension of license for a period not to exceed six months.
Following the commencement of retail sales of cannabis or cannabis products, the Township Council may suspend or revoke any license if the licensed premises have been inactive or unoccupied by the licensee for at least six months.
The Township Council may suspend or revoke any license if the corresponding state license or permit for the subject location is expired, surrendered, suspended, or revoked.
The Township shall have the authority to adopt any rules and regulation it deems necessary to implement this chapter.
All ordinances or parts of ordinances inconsistent herewith are repealed as to such inconsistencies. If any section, subsection, sentence, clause, phrase or portion of this chapter is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof.
This chapter shall take effect as provided by law.