[Added 7-13-2021 by Ord.
No. 2021-005]
The purpose of this chapter is to regulate the sale and distribution
of cannabis in the Borough and to provide for the issuance of licenses
therefor and fix license fees and taxes, in accordance with the laws
and regulations established by the State of New Jersey.
[Added 7-13-2021 by Ord.
No. 2021-005]
As used in this chapter:
Shall mean 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.
Shall mean any State-regulated cannabis retailer, who is
a 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 possess prior to commencing operations one of the classes
of permit or permit endorsement issued by the State of New Jersey
that authorizes 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. This
person or entity shall hold a Class 5 Cannabis Retailer license.
[Added 7-13-2021 by Ord.
No. 2021-005]
Class 5 Retail and Class 6 Delivery establishments are allowed
in the Borough of South Bound Brook in accordance with the South Bound
Brook land use regulations and ordinances. In addition, these establishments
shall be permitted, pursuant to this chapter, only if the following
requirements are complied with:
a.
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.
b.
Prior to the operation of any cannabis establishment, a permit or
license must be obtained from the State of New Jersey and from the
Borough of South Bound Brook. No cannabis establishment shall be permitted
to operate without State and municipal permits or licenses.
c.
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 South
Bound Brook.
d.
No cannabis establishment shall be allowed as a Home Professional
Occupation.
e.
No cannabis establishment shall be housed in a vehicle or any movable
or mobile structure.
f.
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.
g.
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 onsite at all times during operating hours.
h.
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.
i.
Consumption. No smoking or inhaling of cannabis or cannabis related
substances is permitted on the licensed premises. In addition to any
other penalty imposed by State law, the licensee is responsible for
enforcing this provision and may face penalties in accordance with
the terms of this chapter.
j.
No licensee shall allow or permit in or upon the licensed premises
any lewdness, immoral activity, or foul, filthy or obscene language
or conduct, or any brawl, act of violence, disturbance or unnecessary
noise; nor shall any licensee allow or permit the licensed place of
business to be conducted in such manner as to become a nuisance.
k.
During the hours in which sales of cannabis related products are
hereinabove prohibited, the entire licensed premises shall also be
closed and no person shall be admitted or permitted to remain therein
except the licensee or bona fide employees of the licensee.
l.
No licensee shall sell, serve, deliver or allow, permit or suffer
the sales, service or delivery of any cannabis related products to
any person under the legal age to purchase cannabis related products.
No licensee shall allow the consumption of any cannabis related products
on the licensed premises by any person under the legal age to purchase
cannabis related products.
m.
No person under the legal age for purchasing cannabis products shall
enter any premises licensed for the retail sale of cannabis related
products.
n.
No person shall enter any premises licensed for the retail sale of
cannabis related products for the purpose of purchasing for another
person who does not, because of their age, have the right to purchase
cannabis related products.
o.
It is hereby unlawful for any person to smoke cannabis products in
any public place, on a public street, highway, avenue, alley or road
of the Borough; or upon any public or quasi-public parking lots, or
other parking facilities in the Borough; or on any public grounds,
parks, sidewalks, waterway or quasi-public 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 such unlawful smoking of cannabis products
is a violation of this chapter and subject to penalties provided herein.
[Added 7-13-2021 by Ord.
No. 2021-005]
In accordance with state law, the municipality hereby imposes
a 2% tax on the retail sale of cannabis related products. The licensee
shall remit this tax quarterly to the municipality. Failure of the
licensee to comply with this provision shall subject the licensee
to the penalty provisions of this chapter.
a.
The cannabis transfer tax in the Borough of South Bound Brook 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 South
Bound Brook. 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 paragraph 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 which could be imposed on the
retail sales or transfers 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.
[Added 7-13-2021 by Ord.
No. 2021-005]
a.
Local Licensing Authority. The Borough Clerk 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 Clerk.
b.
Under no circumstances shall a local license for a cannabis establishment
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 South Bound Brook 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.
d.
Maximum Number of Licenses. The Borough may issue a maximum of two
cannabis licenses.
e.
No person or entity may 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
receipt of a State permit or license of the same class or type of
regulated cannabis activity.
[Added 7-13-2021 by Ord.
No. 2021-005]
b.
Application. Persons wishing to obtain any classification of cannabis
license shall file a license application with the Clerk, on a standardized
form established by the Clerk and available in the Clerk's office.
The Clerk 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 until all documents and application
fees are submitted. To be deemed complete, all applications shall
contain the following:
1.
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.
2.
The applicant shall submit an affidavit and documentary proof of
compliance with all state and local laws regarding affirmative action,
anti-discrimination 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.
3.
The location proposed for licensing by the applicant shall comply
with all applicable municipal zoning laws and the location restrictions
set forth in the Borough Code.
4.
The applicant shall submit, to the satisfaction of the Clerk, proof
of financial capability to open and operate the cannabis establishment
for which the applicant is seeking a license. Standards for proof
of financial capability shall be determined by the Clerk.
5.
The applicant shall submit a summary of the applicant's plans
for storage of products and currency, physical security, video surveillance,
security personnel, and visitor management.
6.
Application and Conditional License Fees. The applicant shall submit
all required nonrefundable fees for the application and conditional
license in accordance with the following fee schedule:
(a)
Class 5 and Class 6: $5,000.
7.
Annual Registration Fees. 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:
(a)
Class 5 and Class 6: $5,000 per year.
8.
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.
9.
The applicant and the application shall otherwise comply with any
and all qualification standards set forth in the State and Borough
laws or regulations.
[Added 7-13-2021 by Ord.
No. 2021-005]
a.
In the event there are multiple applicants for a license, a committee
of the Governing Body, (selected by the Mayor) and the Clerk shall
evaluate all applicants and issue a notification of award after consideration
and evaluation of the following criteria:
1.
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.
2.
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.
3.
Applicant's or its owners' demonstrated commitment or sufficient
experience as responsible employers, defined as the applicant entity
being a party to a labor 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.
4.
Summary of the applicant's environmental impact and sustainability
plan and 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;
5.
Applicant's ties to the host community, demonstrated by at least
one shareholder's proof of residency in Somerset County for five
or more years in the past 10 years or at least one shareholder's
continuous ownership of a business based in Somerset County for five
or more years in the past 10 years.
6.
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.
[Added 7-13-2021 by Ord.
No. 2021-005]
a.
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 Clerk'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 Clerk shall issue a new request
for applications and evaluate all applicants for licensure under the
above criteria.
[Added 7-13-2021 by Ord.
No. 2021-005]
a.
Any local license issued pursuant to this chapter shall be valid
for a period of one year from the date of issuance and shall be renewed
in accordance with the provisions of this chapter.
b.
The Clerk may, at his/her 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.
d.
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.
e.
Except where the Clerk 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.
[Added 7-13-2021 by Ord.
No. 2021-005]
a.
Any license issued under this chapter may be suspended or revoked
for violation of any of the provisions of this chapter or any provision
of any applicable statute or any of the rules or regulations of the
State Director of the Cannabis Regulatory Commission.
b.
Summary suspension. Notwithstanding the foregoing section, when the
Clerk 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 may enter a summary
suspension order for the immediate suspension of such license pending
further investigation.
1.
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.
2.
The Clerk shall convene a review panel consisting of the Clerk, 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.
3.
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, $2,000 per offense and/or suspension
of license for a period not to exceed six months.
c.
Inactive Licenses. Following the commencement of retail sales of
cannabis or cannabis products, the Clerk may suspend or revoke any
license if the licensed premises have been inactive or unoccupied
by the licensee for at least six months.
d.
State License. The Clerk may suspend or revoke any license if the
corresponding State license or permit for the subject location is
expired, surrendered, suspended, or revoked.
