Article X Cannabis Establishments

The Borough Administrator is hereby designated to act as the local licensing authority for the Borough for all cannabis 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 Administrator.

Under no circumstances shall a local license for a cannabis establishment issued by the Administrator 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 Haledon 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.

Classification of licenses. The Borough, subject to land use approval and state licensure, may issue the following municipal licenses to operate a cannabis establishment:

Class I: Cannabis supplier license (grower).

Class II: Cannabis supplier license (processor).

Class III: Cannabis retailer license.

Maximum number of licenses. The Borough may issue a maximum of one Class I license, one Class II license, and two Class III licenses. Licensure in all classes may be, but are not required to be, held by the same entity or individual, but 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.

Application. Persons wishing to obtain any classification of cannabis license shall file a license application with the Administrator, on a standardized form established by the Administrator and available in the Administrator's office. The 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 Administrator, until all documents and application fees are submitted. To be deemed complete, all applications shall be accompanied by the following:

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.

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.

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.

(4)

The applicant shall submit, to the satisfaction of the 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 Administrator.

(5)

The applicant shall submit all required nonrefundable fees for the application and conditional license in accordance with the following fee schedule:

Class I: $10,000 cannabis supplier license (grower).

Class II: $10,000 cannabis supplier license (processor).

Class III: $5,000 cannabis retailer license.

(6)

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:

Class I: $40,000 per year cannabis supplier license (grower).

Class II: $20,000 per year cannabis supplier license (processor).

Class III: $10,000 per year cannabis retailer license.

(7)

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.

(8)

The applicant and the application shall otherwise comply with any, and all qualification standards set forth in the state and Borough laws or regulations.

(9)

In the event there are multiple applicants for a license, the Administrator shall evaluate all applicants and issue a notification of award after consideration and evaluation of the following criteria:

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 nonowner principals (20%, not to exceed 2,500 words);

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 (5%, 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 (5%, not to exceed 2,500 words);

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, where the value of past or ongoing clinical research with IRB approval shall outweigh plans to conduct such research (5%, not to exceed 2,500 words), whether the applicant has had any assurance accepted by the U.S. Department of Health & Human Services indicating the applicant's commitment to complying with 45 CFR Part 46 (5%), and whether the applicant has a research collaboration or partnership agreement in effect with an accredited U.S. school of medicine or osteopathic medicine with experience conducting cannabis-related research (5%);

(d)

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 establishment license, in an effort to create well-paying jobs with employee benefits in the municipality (20% in total; five points for labor peace, full 20 points for collective bargaining agreement in effect for at least one year);

(e)

Summary of the applicant's environmental impact and sustainability plan (4%, 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 (3%); 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 (3%);

(f)

Applicant's ties to the host community, demonstrated by at least one shareholder's proof of residency in Haledon for five or more years in the past 10 years or at least one shareholder's continuous ownership of a business based in Haledon for five or more years in the past 10 years (5%); and

(g)

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 NJ minority-owned, women-owned, or veteran-owned business (20% in total; 10 points for one certification and 20 points for two or more).

(h)

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 Administrator's discretion 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 Administrator shall issue a new request for applications and evaluate all applicants for licensure under the above criteria.

(i)

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 this chapter, so long as the local license remains in good standing prior to the renewal period and has not been suspended or revoked pursuant to the terms of this chapter.

[2]

The 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.

[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 Borough Planning review and zoning approval.

[5]

Except where the Administrator has received a complete renewal application along with the requisite fees, and 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 license after the expiration date recorded on the face of the license.

(10)

Retail tax. There shall be a retail tax applied to cannabis sales as follows:

[Amended 3-10-2022 by Ord. No. 1-27-2022]

2% of the receipts from each sale by a cannabis manufacturer.

1% of the receipts from each sale by a cannabis wholesaler.

§ 405-69 Disciplinary actions; sanctions; penalties.

2% of the receipts from each sale by a cannabis retailer.

(d)

2% of the receipts from each sale by a cannabis processor.

No cannabis establishment shall operate within 500 feet of public and private schools, day-care centers and preschools.

[Added 3-10-2022 by Ord. No. 1-27-2022]

[Amended 10-24-2024 by Ord. No. 9-26-2024A]

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:

First offense: up to $250 per violation per day;

Second offense: up to $500 per violation per day;

Third violation shall result in summary suspension.

Summary suspension. Notwithstanding the foregoing section, when the 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 Administrator may enter a summary suspension order for the immediate suspension of such license pending further investigation.

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.

The Administrator shall convene a review panel consisting of the 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.