A. 
Local license required.
(1) 
No person, firm, corporation or other entity may own or operate a cannabis establishment without first having acquired an annual local license in accordance with the provisions of this chapter.
(2) 
The initial local license term shall commence immediately upon the issuance of the initial local license and shall expire on December 31 of that calendar year. Each renewed local license shall be valid for a one-year period beginning on January 1 and ending on December 31 of the calendar year.
B. 
Local licensing authority.
(1) 
The Economic Development and Community Development committee of the City of Salem, in conjunction with the Administrative Officer, and the City Council are hereby designated to act as the local licensing authority for the City of Salem for all cannabis establishments. Under all circumstances in which state law requires communication to the City by the 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 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 City Council and Administrative Officer.
(2) 
Under no circumstances shall a local license for a cannabis establishment service be effective unless or until the state has issued the required permits or licenses to operate such a facility, including the state license. It is the intent of this chapter that no cannabis establishment may lawfully operate in the City of Salem without the issuance of a state license and full regulatory oversight of the cannabis establishment by the Commission or other state licensing authority as well as oversight and issuance of a license by the City.
C. 
The City may only issue local licenses for cannabis classes as permitted in Chapter 130 of the Salem City code. The City may also issue microbusiness licenses where applicable.
D. 
Requirements. In order to be granted a local cannabis license for the operation of any state licensed cannabis retail business or delivery business situated in the City of Salem, the following conditions, along with all other requirements of this chapter, must be satisfied:
(1) 
Completion of all forms, checklists, and other submissions as may be required by the City;
(2) 
Payment of all applicable local fees, including inspection and licensing fees;
(3) 
Demonstration that all applicable state licenses have been obtained;
(4) 
Passage of all applicable state and local inspections required to be completed prior to the beginning of operations and/or renewal of any state and/or local license;
(5) 
Emergency contact information to be utilized by police, fire, and EMT personnel in the event of an on-site emergency; and
(6) 
Submission of a full copy of the application for state licensure, via hard copy or digitally, with pages prominently marked "CONFIDENTIAL" as appropriate for purposes of compliance with New Jersey's Open Public Records Act (NOTE: pages not marked as confidential will be disclosed in response to an applicable OPRA request).
E. 
In order to be granted a business license for the operation of any state licensed cannabis retail or cannabis delivery business situated in the City of Salem, the licensee shall pay the local license fee as indicated below, which shall also be due annually upon renewal of the local license.
(1) 
State-licensed cannabis retailers and delivery businesses: $5,000 per location.
F. 
Reinvestment of local license fees. Local license fees from licensed cannabis establishments shall be used for public education and/or increased public safety in the area surrounding the cannabis establishment. A separate account shall be established for collection and disbursement of said funds with the advice and consent of the City Council.
G. 
Applications for a local license shall be considered on a rolling basis. In the event multiple applicants are under consideration at the same time, the City shall evaluate those applications and issue a notification of award after consideration and evaluation of the application and supporting materials. The City may award a conditional local license, which will not be effective until all of the conditions of the conditional local license have been satisfied. The City reserves the right to reject any application at its sole discretion.
A. 
The City Council may suspend or revoke a local license if:
(1) 
The application or the cannabis establishment is not in compliance with any provision of this chapter or all statutes and/or regulations adopted by the State of New Jersey or its instrumentalities.
(2) 
The application for a local license contains false or misleading information.
(3) 
An owner, officer, or board member of a local license holder provides false or misleading information to the City.
(4) 
The City receives formal notice from the Commission that the local license holder has had its state license suspended or terminated.
(5) 
A violation by the local license holder or the cannabis establishment of any of the provisions of this Code or the CREAMM Act has occurred.
(a) 
An owner, officer, or board member of the local license holder has been convicted of a crime involving any controlled dangerous substance or controlled substance analog as set forth in Chapter 35 of Title 2C of the New Jersey Statutes except paragraph (4) of Subsection a of N.J.S.A. 2C:35-10, or any similar law of the United States or any other state.
(6) 
The failure or refusal of the local license holder to comply with any of the provisions of this Code or the CREAMM Act.
(7) 
The failure or refusal of the local license holder to carry out its policies and procedures or to be in compliance with the statements and representations provided to the City or the state in its application for licensure.
(8) 
Operating a cannabis establishment service without a state license or local license.
(9) 
The failure or refusal to return an adequate plan of correction to the City within 10 business days after receipt of a notice to correct.
(10) 
The failure or refusal to correct any deficiency specified by the City in a notice to correct within the period specified in a plan of correction.
(11) 
The failure or refusal to cooperate fully with an investigation, inspection, or audit by the City or any law enforcement agency.
(12) 
Failure to maintain proper recordkeeping and/or failure to allow the City access to any records.
(13) 
The failure to comply with the provisions of this chapter regarding the payment of fees.
(14) 
The failure to comply with any condition placed upon the local license when the license was issued, or any condition or requirement made by the City.
(15) 
The premises and/or the cannabis facility has been inactive or unoccupied for at least six months following the issuance of the local license.
B. 
Except as permitted in Subsection D below, prior to suspending or revoking a local license, the City shall provide notice to the local license holder of its intent to suspend or revoke the local license and shall schedule a hearing on the proposed suspension or revocation within 30 days of said notice. Following the hearing, if the City determines that suspension or revocation is warranted, the City shall issue a notification to the local license holder of the reasons for the suspension or revocation.
C. 
Any suspension or revocation of a local license shall become effective immediately upon notification of the suspension or revocation to the local license holder. The notification shall be deemed effective if: 1) it is made at the time of the hearing; or 2) notice of the suspension or revocation is mailed by certified mail, return receipt requested, to the address listed on the local license or in the license application for the local license.
D. 
Notwithstanding the foregoing section, when the City has reasonable grounds to believe that a local license holder or cannabis establishment 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 City Council may enter a summary suspension order for the immediate suspension of a local license pending further investigation, subject to the following procedure:
(1) 
The summary suspension order shall be in writing and shall state the reason(s) therefor. The local license holder shall be afforded an opportunity for a hearing as outlined herein.
(2) 
The City 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 suspension order.
(3) 
Upon completion of the hearing, the review panel shall issue its decision regarding the alleged offenses. The review panel is authorized to impose any fines, penalties, conditions, restrictions or a combination thereof authorized by the State of New Jersey or this chapter, including the suspension of license for a period not to exceed six months.