[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; 9-18-2024 by Ord. No. 6PSF-G, 09-18-2024]
The numerical limitation of cannabis establishment licenses to be issued in the City shall be subject to the following:
a. 
a. Not more than five (5) cannabis growers with the designation of one (1) for a "Legacy" applicant operating under Class 1 licenses;
b. 
Not more than five (5) cannabis manufactures with the designation of one (1) for a "Legacy" applicant operating under Class 2 licenses;
c. 
Not more than three (3) cannabis wholesalers with the designation of one (1) for a "Legacy" applicant operating under Class 3 licenses;
d. 
Not more than three (3) cannabis distributors with the designation of one (1) for a "Legacy" applicant operating under Class 4 licenses;
e. 
Not more than fifteen (15) cannabis retailers with the designation of three (3) for a "Legacy" applicant operating under Class 5 licenses;
f. 
Not more than fifteen (15) cannabis delivery service with the designation of three (3) for a "Legacy" applicant 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 operating under Classes 1-4 and Class 6 with the designation of one (1) per Class for a "Legacy" applicant and not more than fifteen (15) microbusiness retailers with the designation of three (3) for a "Legacy" applicant operating under Class 5;
i. 
Not more than five (5) consumption establishments shall operate within the City, with the designation of one (1) for a "Legacy" applicant.
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]
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.