Town of Dover, NJ Cannabis

Pursuant to N.J.S.A. 24:6I-45(c)(2) of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act, no licensed cannabis entity shall be allowed to operate within the Town of Dover until such person or entity shall be licensed and registered in accord with this section.

Disciplinary actions; sanctions; violations and penalties.

For violation of any provision of this subsection, penalties shall be in accordance with § 1-15 of the Town Code.

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 Municipal 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 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 Municipal Clerk shall convene a review panel consisting of the Municipal Clerk, the Town Business Administrator, and the Chief of Police of the Town of Dover. The hearing shall be scheduled within 30 days of the date of the order.

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 Town 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.

Inactive licenses. Following the commencement of retail sales of cannabis or cannabis products, the Municipal Clerk may suspend or revoke any license if the licensed premises have been inactive or unoccupied by the licensee for at least six months.

State license. The Municipal Clerk may suspend or revoke any license if the corresponding state license or permit for the subject location is expired, surrendered, suspended, or revoked.

Local license standards and limitations.

The Town may approve or deny an application for a local license to operate a licensed cannabis entity at its sole discretion, consistent with all governing state law, based on an evaluation of the benefits compared to the potential harm of the prospective licensee's operation of a licensed cannabis entity as proposed in the prospective licensee's application for a local license.

The number of local licenses shall be limited to a combined total of two active local licenses irrespective of the categories of licensed cannabis entities, except that any local license to a targeted microbusiness shall not count towards the total number of local licenses pursuant to his section.

Application for local license and annual local license fee.

Nonrefundable application fee. The applicant shall submit a nonrefundable application fee of $2,000 to the Office of the Municipal Clerk under oath on a form furnished by the Town:

Annual licensing fee. The annual fee for successful applicants operating cannabis establishments or distributors in the Town of Dover shall be implemented as required in accordance with the following fee schedule, which shall be refunded in the event the applicant does not receive an annual license:

Class 1 cannabis cultivator license: $5,000.

Class 2 cannabis manufacturer license: $5,000.

Class 3 cannabis wholesaler license: $5,000.

(d)

Class 4 cannabis distributor license: $5,000.

(e)

Class 5 cannabis retailer license: $10,000.

(f)

Class 6 cannabis delivery license: $2,500.

(g)

The annual fee for microbusinesses shall be half of the class annual fee.

Upon the filing of the application, the applicant shall pay to the Town an application fee of $2,000. The Office of the Municipal Clerk shall then transmit the application to the Office of Police Chief for the Dover Police Department or the Chief's designee for review of the application. The Office of the Municipal Clerk shall also provide a copy of the application to the: i) Board of Education; ii) the Town Zoning Officer; iii) the Health Department; iv) The Mayor and Board of Aldermen Economic Development and Redevelopment Committee, and the v) Town Fire Chief, except for the transmission of the requirements set forth in § 141-3F(4)(d)[1] of this subsection. These departments shall review the application and forward their comments to the Police Chief for the Dover Police Department or the Chief's designee no later than 15 business days from transmission of the application.

The application shall require submission of the following information:

The name and home address of the applicant. If the applicant is not a natural person, the applicant shall submit a statement setting forth the names and home addresses of all stockholders in the corporation or partnership who own 10% or more of its stock, of any class or of all individual partners in the partnership who own a 10% or greater interest therein, as the case may be. If one or more such stockholder or partner is itself a corporation or partnership, the stockholders holding 10% or more of that corporation's stock, or the individual partners owning 10% or greater interest in that partnership, as the case may be, shall also be listed with its home address. The disclosure shall be continued until names and home addresses of every noncorporate stockholder, and individual partner, exceeding the 10% ownership criteria has been listed.

The name of any other business entities in which any of the individuals identified pursuant to § 141-3F(4)(a) of this subsection have or have had an ownership interest which: i) cultivates, manufactures, wholesales or dispenses cannabis or cannabis products; ii) invests or finances in any such entity; or iii) is regulated by any governmental entity.

A copy of the license issued by the Cannabis Regulatory Commission authorizing the applicant to operate as a licensed cannabis entity with a copy of all application materials and documents submitted to the Commission for a license.

(d)

Plans prepared by a duly licensed architect, engineer, or planner which shall depict the layout and design for the proposed location of the licensed cannabis entity within the Town.

[1]

The required plans shall depict the proposed security measures for the location in order for the Dover Police Department to evaluate the sufficiency of the security measures as required under this section. The plans shall be deemed confidential consistent with state law and shall only be transmitted to the Police Chief for the Dover Police Department or the Chief's designee.

[2]

The applicant shall also provide either a lease agreement or agreement of sale for the property where the applicant intends to operate the licensed cannabis entity. The lease agreement or agreement of sale may be contingent upon the applicant's ability to successfully: i) obtain a local license; and ii) if applicable, obtain approval from the Dover Planning Board and/or the Dover Zoning Board of Adjustment.

(e)

Acknowledgment and agreement authorizing the Dover Police Department to perform background checks and/or investigations regarding any individuals disclosed pursuant to § 141-3F(4)(a) of this subsection and any employees of the applicant.

(f)

If the applicant is applying for a local license as a targeted microbusiness, a copy of any and all documents issued by the Cannabis Regulatory Commission declaring the applicant as microbusiness under the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act[1] with a copy of all application materials and documents submitted to the Commission for such a declaration.

[1]

Editor's Note: See N.J.S.A. 24:6I-31 et seq.

The Police Chief of the Dover Police Department or the Chief's designee shall review the application, review the comments from the departments provided pursuant to Subsection F(3) of this provision, and prepare a memorandum addressed to the Municipal Clerk: i) analyzing the applicant's ability to comply with all of the Town's requirements for a licensed cannabis entity, including the required security measures; ii) assessing the benefits compared to the potential harm of the applicant's proposed operation of a licensed cannabis entity; and iii) recommending whether to grant or deny the application for a local license. The Police Chief or the Chief's designee shall transmit the memorandum to the Office of the Municipal Clerk. The Police Chief for the Dover Police Department or the Chief's designee shall review the application and provide a final memorandum back to the Office of the Municipal Clerk no later than 30 calendar days from transmission of the application.

(6)

Upon receiving the final memorandum from the Police Chief of the Town of Dover or the Chief's designee, the Office of the Municipal Clerk will convene a meeting of the following working group composed of the Municipal Clerk, Town Business Administrator, Town Zoning Officer, Police Chief of the Dover Police Department or the Chief's designee, and the Mayor and Board of Aldermen Economic Development and Redevelopment Committee in order to review and score the applicant's complete application and review the recommendations of the Chief of Police of the Town of Dover or the Chief's designee in order to make a final recommendation to the Mayor and Board of Aldermen. The Municipal Attorney shall also be invited to advise the working group as deemed necessary. The Office of the Municipal Clerk shall submit a memorandum of recommendation on behalf of the working group to the Mayor and Board of Aldermen.

(7)

Within 45 days from the transmission of the final memorandum from the Police Chief of the Town of Dover or the Chief's designee to the Office of the Municipal Clerk, the Town Mayor and Board of Aldermen shall adopt a resolution either granting the application or denying the application. The Town Mayor and Board of Aldermen's failure to adopt a resolution within the forty-five-day period shall be deemed a denial of the application.

(8)

The Municipal Clerk shall evaluate any and all applicants and issue a notification of award after consideration and evaluation of the following criteria:

Qualifications and experience. 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 principal, submission of formal business plan for the proposed licensed cannabis entity including pro forma is required (20%, not to exceed 2,500 words);

Security plan. 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 and digital storage, security personnel and their qualifications, and visitor and employee security management (20%, not to exceed 2,500 words);

Research experience. 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, 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, 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%, not to exceed 2,500 words);

(d)

Labor peace agreement. 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 within the municipality. If possible, applicant entity or parent entity should submit attestation signed by a bona fide labor organization stating that the applicant has entered into a labor peace agreement. This requirement shall not apply to applicants for a conditional permit or for an entity that is a certified microbusiness (20% in total; 5% for labor peace, full 20% for collective bargaining agreement in effect for at least one year);

(e)

Environmental plan. 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 (10%, not to exceed 2,500 words);

(f)

Community commitment. Applicant's ties to the host community, demonstrated by at least one shareholder's proof of residency in Town of Dover for five or more years in the past 10 years or at least one shareholder's continuous ownership of a business based in the Town of Dover for five or more years in the past 10 years (10%, not to exceed 2,500 words); and

(g)

Workforce development plan. Applicant's workforce development and job creation plan, which may include information on the applicant's history of job creation and planned job creation at the proposed licensed cannabis entity; education, training and resources to be made available for employees; any relevant certifications, and an optional diversity plan (10%, not to exceed 2,500 words); and

(h)

Customer advocacy plan. Applicant's customer advocacy plan, which may include information on the applicant's history of customer counseling and planned customer counseling at the proposed licensed cannabis entity; education, training and resources to be made available for customers (5%, not to exceed 2,500 words); and

(i)

Community impact plan. Applicant's community impact plan summarizing how the applicant intends to have a positive impact on the community in which the proposed licensed cannabis entity is to be located; which shall include an economic impact plan and a description of outreach activities and potential contributions to the community (5%, not to exceed 2,500 words); and

(j)

New Jersey minority-owned. 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 (up to 10% in total).

(9)

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 Municipal Clerk'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 Municipal Clerk shall issue a new request for applications and evaluate all applicants for licensure under the above criteria.

(10)

Applicant's scoring table.

Applicant Scoring Table
Criteria	Plan/Description	Score up to
Qualifications and experience	2,500 words	20%
Security plan	2,500 words	20%
Research experience	2,500 words	5%
Labor peace agreement	-	5%
Environmental plan	2,500 words	10%
Community commitment	2,500 words	10%
Workforce development plan	2,500 words	10%
Customer advocacy plan	2,500 words	5%
Community impact plan	2,500 words	5%
New Jersey minority-owned	-	10%

License term; transferability and renewals.

All licenses shall be issued for the term of one year and shall expire one year after the date of issuance.

Licenses shall not be transferable, assignable, or divisible.

The Municipal Clerk may, at his/her discretion, adjust the renewal date of the local license, but in any event, the renewals must be consistent with regulations promulgated by the State of New Jersey. In the event that the first renewal period is less than a year from the initial licensing period, the annual licensing fees shall be prorated appropriately.

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.

Except where the Municipal 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.

Commission permit. Any licensed cannabis entity shall provide a copy of its permit issued by the Commission to the Police Department and Health Department no later than 30 days prior to the commencement of any operations. A licensed cannabis entity shall insure that a current permit is on file with the Police Department and Health Department at all times. A copy of the current permit issued by the Commission shall be posted within the licensed cannabis entity at all times at a location readily visible by any and all patrons of the facility.

Operating requirements and prohibitions.

Hours. A licensed cannabis entity may only operate from the hours of 8:00 a.m. through 8:00 p.m.

Legal age. No persons under the age of 21 shall be allowed in a licensed cannabis establishment. No person under the age of 18 shall be allowed in a licensed medical marijuana facility.

Alcohol. The sale or consumption of alcohol at a licensed cannabis entity shall be prohibited.

Cannabis consumption areas. As defined in the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act, N.J.S.A. 24:6I-31, et seq., shall be prohibited.