[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021]
All applications for licenses, all licenses issued and all proceedings under this Title shall be in accordance with the Act, rules, and regulations referred to in Chapter
14:1, and all other applicable laws of the State of New Jersey.
[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021]
All licenses required by this Chapter shall be issued by Finance
Department, Division of Tax Abatement and Special Taxes and the Business
Administrator's Office, which shall also administer the provisions
of this Title. Under all circumstances in 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 or any action taken by the State licensing authority,
the exclusive authority for receiving such communications and granting
such approvals shall be exercised by the Business Administrator.
[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021]
Under no circumstances shall a local license for a Cannabis Establishment issued by the Business Administrator and the Division of Tax Abatement and Special Taxes 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 City 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 City. Any person who operates without a license will be subject to penalties, pursuant to Section
14:3-11.
[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021; amended 11-23-2021 by Ord. No. 6PSF-a(s), 11-23-2021]
A licensee must pay an annual fee. The fee for granting all
Cannabis Establishment licenses issued by the issuing authority are
hereby fixed as follows:
a. Class 1-4: $5,000 for each license used within the City.
b. Class
5: $10,000 for each license used within the City.
c. Class 6: $3,000 for each license used within the City.
d. Cannabis Consumption Establishment: $20,000 for each establishment
operating within the City, this is an additional fee outside of the
$10,000 license fee for a Class 5 establishment.
e. Microbusiness: $1,500 for each establishment operating within the
City.
f. Safety Compliance Establishments: $1,000.
g. The holder of a stacked grower license must pay a separate fee in
the amount listed above for the additional license being obtained.
The initial annual fee(s) must be paid to the City within ten
(10) days of license approval. If the license fee is not paid within
ten (10) days of approval, then the City may rescind approval and
chose the next person on the waiting list. This fee shall be refunded
in the event the applicant does not receive a license from the State.
In each subsequent year, fees are due on the date in which the licensee
submits an application to the City for renewal of the license.
[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021; amended 11-23-2021 by Ord. No. 6PSF-a(s), 11-23-2021]
The numerical limitation of cannabis establishment licenses
to be issued in the City shall be subject to the following:
a. Not more than five (5) cannabis growers operating under Class 1 licenses;
b. Not more than five (5) cannabis manufactures operating under Class
2 licenses;
c. Not more than three (3) cannabis wholesalers operating under Class
3 licenses;
d. Not more than three (3) cannabis distributors operating under Class
4 licenses;
e. Not more than five (5) cannabis retailers operating under Class 5
licenses;
f. Not more than five (5) cannabis delivery service and cannabis secure
transporters operating under Class 6 licenses;
g. Not more than three (3) safety compliance establishments shall operate
within the City;
h. Not more than five (5) microbusinesses per Class can operate within
the City;
i. Not more than two (2) designated consumption establishments shall
operate within the City.
A person may hold multiple licenses in different classes; however
a person may not hold more than one Class 5 cannabis retailer license.
A large Class 1 — Class 3 Cannabis Establishment cannot
operate a Class 5 retail establishment.
|
[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021]
Co-location and stacked grower licenses (with up to three grower
licenses per zoning lot) are permitted in the City. For purposes of
the limitations provided below:
a. An establishment with a stacked grower license counts as a single
grower;
b. On a site with co-location, each license (other than stacked grower
licenses) authorized to operate within a single location counts as
a separate establishment.
[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021]
No seasonal or temporary cannabis license of any kind shall
be granted in the City.
[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021]
A Cannabis Establishment must have a specific individual responsible
party in order to obtain a license. This party will be responsible
for ensuring compliance with all regulations in this title and all
other applicable City ordinances shall be able to receive service
of process; and ensure that the Cannabis Establishment pays all, fees,
taxes, penalties, and fines. This individual responsible party's name,
address, and social security shall be listed on the application in
such capacity.
[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021; amended 11-23-2021 by Ord. No. 6PSF-a(s), 11-23-2021]
The State requires that a business applying for a license to
operate a Recreation Cannabis Establishment shall secure either the
support of the community or a recommendation from the municipality
where the establishment will be located.
a. In order for a business to secure the recommendation from the City
of Newark, the following factors must be considered:
1. Whether the business is a MBE or WMBE.
(a)
For such purpose a MBE/WBE business is a business: (1) that
is at least fifty-one (51%) percent owned by one or more minority
persons or women or, in the case of any business whose stock is publicly
held, at least fifty-one (51%) percent of the stock is owned by one
or more minority persons or women; and (2) whose management and daily
business operations are controlled by one or more minority persons
or women.
(b)
In order to be eligible as a minority business, a business must be a sole proprietorship, partnership or corporation at least fifty-one (51%) percent of which is owned and controlled by persons who are minorities as defined in accordance with R.O. Section
2:2-28.3f.
(c)
In order to be eligible as a female business, a business must
be a sole proprietorship, partnership or corporation at least fifty-one
(51%) percent of which is owned and controlled by women.
2. Whether the business has at least 50% of its work force as Newark
residents. These positions must be unionized, unless the cannabis
establishment is a microbusiness.
3. All large Cannabis Establishments shall contribute to a business
development fund, in which a macro-licensed cannabis establishment
would assist small business owners with securing a microbusiness license.
4. Any and all other factors pursuant to Section
14:4-2e of this Title.
A proposed establishment is not eligible to operate until the
Office of the Business Administrator and the Department of Finance,
Division of Tax Abatement and Special Taxes grants final authorization
pursuant to this chapter; the applicant receives a special use permit
under the City Zoning Ordinance; and all other required approvals
and licenses from the State and the City.
|
[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021; amended 11-23-2021 by Ord. No. 6PSF-a(s), 11-23-2021]
a. An existing establishment may move to a new location in the City,
subject to applicable zoning regulations, Municipal Council approval,
and approval by the State. In deciding whether to approve a new location
for an existing establishment, the Municipal Council shall consider
the following nonexclusive factors:
1. The impact of the establishment's new location on the community as
a whole; and
2. The existing establishment's compliance with City ordinances and
with state law and administrative rules.
b. A license for an existing establishment may be transferred to a new
licensee that intends to continue operating at the same location,
subject to approval by the Municipal Council and the State.
c. A licensee may expand growing operations by upgrading the class of the license (e.g., from Class 1 to Class 2, or from Class 2 to Class 3), or by obtaining a stacked license, subject to all the limitations established in Section
14:3-6. To do so, the licensee must submit a new application to the City satisfying the requirements in Chapter 14-4, which shall include payment of the application fee that will be owed due to the addition of stacked licenses. The application shall be conditionally approved upon receipt of all required materials. The license fee must be paid within ten (10) days of approval, if it is not paid the City will rescind the approval.
[Added 8-19-2021 by Ord.
No. 6PSF-AA (s), 08-19-2021; amended 11-23-2021 by Ord. No. 6PSF-a(s), 11-23-2021]
a. Suspension and/or Revocation of License. If at any time a Cannabis
Establishment violates this Chapter or any other applicable City ordinance,
the City may impose a penalty, suspend, or revoke a license. The City
may also request that the State revoke or refrain from renewing the
establishment's state operating license. Violations may include, but
are not limited to the following:
1. Selling
cannabis and/or cannabis items to a person not legally authorize to
possess.
2. Failure
to have a City or State license at any point during operation.
3. Failure
to comply with the provisions in this Title.
4. Failure
to comply with any City Ordinance.
5. Selling
cannabis and/or cannabis items outside a brick and mortar business.
6. Failure
to report change in ownership and/or corporate structure.
b. Penalty. Any person who violates any provision of this Chapter shall,
upon conviction thereof, be punished in the following manner:
1. 1st offense: a minimum fine of $100 with a maximum fine up to $1,000;
2. 2nd offense: a minimum fine of $100 with a maximum fine up to $1,500
and community service for a period of up to 90 days or suspension
of license;
3. 3rd or subsequent offense: a minimum fine of $100 with a maximum
fine up to $2,000, permanent revocation of any license issued under
the within Chapter, or a period of imprisonment for a term not exceeding
ninety (90) days or both.
4. if an
entity operates without ever having a license from the City or the
State, it will be barred from operating within the City.
5. A separate offense shall be deemed committed on each day during or
on which a violation occurs or continues.
c. Other remedies. The foregoing sanctions are in addition to the city's
right to seek other appropriate and proper remedies, including actions
in law or equity.