Chapter 32 Cannabis

The initial application fee shall be $7,500, made payable to the Town of Guttenberg, for an applicant seeking initial approval of a TCL. This fee shall cover the CAB review as well as the Town Council review.

The application fee for TCL renewal (see paragraph c5) shall be $5,000.

An escrow in the initial amount of $5,000 shall be established by the TCL applicant upon initial application for a TCL. This escrow shall be used for administrative and professional fees related to review of the initial application. Upon denial of the TCL, any unused funds in the escrow account shall be refunded to the applicant. If a TCL is issued, remaining escrow funds shall be used by the Town for fees and costs relating to administrative and professional oversight during the term of the TCL and shall be replenished upon request.

Nothing in this subsection shall override any fees imposed by a local land use board or any other municipal agency.

Renewal.

Except where expressly provided otherwise, all TCLs shall expire on the anniversary of the date of issue at 12:00 midnight. Applications for the renewal of licenses shall be submitted prior to the close of business 60 days prior to the expiration of the TCL. An application for renewal may incorporate, by reference, information and documents previously submitted by the applicant. However, the application must note any changes to previous submissions and include any new information and/or documents.

The Town Council shall review and render a decision on all renewal applications within 45 days of submission of the renewal application. The Town Council may delegate review of the renewal application to the CAB who shall issue a recommendation to the Town Council based on their review. The Town Council and the CAB shall be permitted to retain administrative and professional assistance in the review of the renewal application. Those administrative and professional costs shall be paid from the applicant's escrow account.

The Town Council may consider any disciplinary actions, or suspensions of the TCL holder throughout the course of its licensure and may consider any actions by the applicant which tend or tended to degrade the public health, safety, and welfare, when considering the application for renewal.

All TCLs shall be conditional and the effectiveness of TCLs shall be contingent upon the PCO's acquisition of an annual operating license from the CRC.

Once the maximum number of TCLs have been granted, the Town Clerk shall maintain a waiting list of applicants for a TCL. The priority of the waiting list shall be determined by the order, by date and time, that a complete license application is received by the Town, as so deemed in the discretion of the Clerk.

All TCLs shall be specific to the property location authorized and approved by the Town and shall not be transferable with respect to location. Should an applicant change the location of the Cannabis Establishment, a new TCL application specifically pertaining to that new location must be submitted and approved. Should a TCL licensee sell its approved Cannabis Establishment, the new owner shall submit a new TCL application for approval.

Cannabis Advisory Board.

A Town Cannabis Advisory Board ("CAB" or "Board") as appointed below will act as the body responsible for review of all applications for TCLs and related recommendations to the Town Council. The authority and responsibility to adopt resolutions of support and/or issue TCLs remains with the Town Council. The CAB's work shall be made consistent with the criteria outlined in this chapter but the CAB has discretion to deviate from same.

Members of the CAB shall include, at a minimum:

Town Administrator or designee;

Town Police Chief or designee;

Two additional Town Council Members; and

Town Construction Code Official.

Conflicts of Interest.

CAB members are prohibited from:

Holding an ownership interest in a TCL applicant, licensee, or any entity or business that operates a Cannabis Establishment in the State of New Jersey;

(2)

Being employed by or a contractor to a TCL applicant, licensee, or any entity or business that operates a Cannabis Establishment in the State of New Jersey;

(3)

Representing or consulting on behalf of a TCL applicant, licensee, or any entity that operates a Cannabis Establishment in the State of New Jersey.

CAB members shall recuse themselves if:

The member's employer, client, business partner, or immediate family member has a financial interest in any applicant who has submitted a TCL application to the Town, regardless of whether that application is currently before the CAB; or

(2)

The member has any other real or perceived conflict of interest which may cause the appearance of impropriety.

(3)

The CAB shall be empowered to impose further requirements and to issue a Code of Conduct for CAB members, which must be ratified by the Town Council.

To the extent necessary and in their sole discretion, the CAB may retain other legal, planning, and other review professionals. The CAB may request additional resources as necessary to effectuate the responsibilities of the CAB. If the Town must hire one or more consultants to evaluate a first-time or renewal application for a TCL, the applicant will be responsible for the review fees of the Town's hired consultant(s). To that end, TCL applicants shall deposit and fund an escrow in the amount prescribed in § 32-4c4 for the costs of said professionals. To the extent that the escrow is exhausted, the TCL applicant shall provide any replenishment amount required by the CAB within 10 calendar days of a replenishment request.

Town Cannabis License Application Requirements.

Any person or entity seeking a license to operate a PCO within the Township shall submit an application to the Town Clerk, using a standardized form which shall be made available at the Town Clerk's office and on the Town's website. Failure to include all information required by this form shall result in an application being deemed incomplete. These requirements are separate and distinct from any land use approval that may be necessary to be secured from the Planning Board or Zoning Board of Adjustment.

The Town, through its Town Clerk, shall begin accepting TCL applications 30 days following final passage of this chapter.

To be deemed complete, a TCL application must be accompanied by the following:

A copy of all documents submitted by the applicant to the CRC, or to any state agency, in connection with an application for a license or permit to operate a PCO.

A copy of all documents received by the applicant from the CRC, or from any state agency, in connection with an application for a license or permit to operate a PCO, including any notices of qualification or disqualification.

A copy of all review letters received from Town officials as part of the CAB recommendation process.

The property location, including address and lot and block on the official tax map and zone identification.

(e)

Proof that the applicant has or will have lawful possession of the premises proposed for the PCO, which proof may consist of the following: a deed, a lease, a real estate contract contingent upon successful licensing, or a binding letter of intent from the owner of the premises indicating an intent to lease or sell the premises to the applicant contingent upon approval of required licenses. A separate application shall be required for each location at which a PCO seeks to operate.

(f)

A scale drawing of the interior of the premises showing all entrances and exits to and from the place where the business is to be conducted; the location and placement of all fire detection and fire-suppression equipment (i.e., smoke detectors, hoses, extinguishers, sprinkler systems, etc.) as well as all odor mitigation equipment; and the location of all fire exits.

(g)

A scale drawing showing the proposed plan of evacuation for the premises in the event of an emergency.

(h)

A security plan that includes sufficient security measures, including lighting and alarms, to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the cannabis business. Said plan shall remain updated and secured on file in the protective custody of the Town Police Department. The information provided for purposes of this section shall be maintained by the Town Police Department as confidential information and shall not be disclosed as public records unless pursuant to subpoena issued by a court of competent jurisdiction.

(i)

A business plan outlining the proposed operations of the PCO including up-front costs, real estate costs, operational expenses.

(j)

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.

(k)

A letter from the appropriate zoning official indicating that the location proposed for licensing by the applicant complies with all applicable Town zoning laws and the location restrictions set forth herein.

(l)

Conditional use approval from the appropriate land use board.

(m)

Applicant's owners' or principals' qualifications and experience operating in highly regulated industries, including cannabis, health care, pharmaceutical manufacturing, and retail pharmacies, with preference to experience operating such businesses within the State of New Jersey.

(n)

Applicant's brand and proposal for the physical presence of the business, including but not limited to: the site's ability to meet all land use regulations (parking, landscaping, signage, etc.), architectural treatments, customer experience (where applicable).

(o)

A summary of the applicant's operational plans, including without limitation with respect to the below and as further described in § 32-6, Security, below:

Storage of products and currency;

Physical security;

Video surveillance;

Security personnel;

Visitor management;

Plans regarding means of preventing smoke, odors, debris, dust, fluids, and other substances from exiting the cannabis business premises;

(i)

In the event that any debris, dust, fluids or other substances shall exit the business premises, the property owner and operator shall be jointly and severally responsible for the full cleanup.

(7)

Plans regarding proper disposal of all cannabis materials and other substances in a safe and sanitary manner in accordance with state law and regulations; and

(8)

As applicable, plans regarding ventilation systems with carbon filters sufficient in type and capacity to eliminate cannabis odors emanating from the interior to the exterior of the premises discernible by reasonable persons, which ventilation system must be inspected and approved by the Construction Official and which shall comply with all state and Town regulations and requirements.

(p)

Applicant's or its owners' demonstrated commitment or sufficient experience as responsible employers, defined as the applicant entity being committed to a local program or organization committed to the well-being of residents, including but not limited to the Town and surrounding service area. This can be demonstrated with evidence of applicant's past activities within the Town and surrounding service area as well as with clearly defined commitments and plans for future involvement in activities or organizations whose goal is to improve civic, community, and resident well-being. Failure to live up to commitments to community benefits activities as described in the application can result in suspension or non-renewal of the TCL.

(q)

Summary of the applicant's environmental impact/mitigation, and sustainability plan and/or any recognitions from or registrations with federal or New Jersey state environmental regulators for innovation in sustainability.

(r)

Applicant's demonstrated commitment to diversity in its ownership composition and hiring practices.

(s)

Any certifications as a New Jersey minority-owned, women-owned, or veteran-owned business held by the applicant entity.

(t)

Applicant's and its owners' (if applicable) or principals' 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.

(u)

The initial application fee and escrow amount required.

(v)

Written acknowledgement that the applicant shall have a continuing obligation to amend or supplement their application with any changes and/or additions to the information and documents submitted with such application, including the status of any application for Planning Board or Zoning Board approvals or requests for variances within the Town.

(w)

A signed hold harmless and indemnification agreement in favor of the Town as approved by the Town Attorney by which the TCL applicant agrees to: (1) indemnify, defend at applicant's sole cost and expense and hold harmless the Town, its officers, officials, employees, representatives, and agents from any and all claims, losses, damages, injuries, liabilities or losses, which arise out of or are in any way related to, the Town's issuance of the TCL or the process used by the Town in making its decision to issue or deny the TCL; and (2) reimburse the Town for costs and expenses, including, but not limited to, attorney fees, litigation costs, and court costs which the Town may be required to pay as a result of any legal challenge related to the Town's approval of the applicant's TCL or related to the Town's approval of a cannabis activity. Any participation by the Town at its own expense in the defense of any such action shall not relieve or release the applicant(s) from any obligations imposed under this section.

An application shall be deemed incomplete and shall not be processed by the Town Clerk until all documents and application fees are submitted. The applicant shall submit any other additional information requested by the Town in its evaluation of their application. The applicant may be required to appear for a meeting with the CAB.

Town Cannabis License Application Review.

TCL Application Rejection. The Town Clerk shall reject a TCL application for any of the following reasons:

The applicant has not included all of the information, documents, and fees required to be submitted with the application, and has failed to correct such deficiencies within 30 days of being notified by the Town Clerk.

The Town has already issued the maximum number of conditional TCLs for the proposed class of PCO.

Upon receipt of a complete application for a new TCL or TCL renewal, the Town Clerk shall forward same for review to the CAB.

TCL applications shall be reviewed by the CAB in the order they are received and determined to be complete by the Town Clerk. The Town Clerk shall maintain a list of additional applications that have been submitted with priority of the waiting list determined by the order, by date and time that a complete application as so deemed in the reasonable discretion of the Clerk, is received by the Town.

The CAB shall provide its recommendation regarding the application to the Town Clerk within 45 days of receipt from the Town Clerk.

After receiving the CAB's recommendation, the Town Clerk shall forward the TCL application together with the CAB's related recommendation to the Town Council for consideration at a regular Council meeting.

Upon making a determination that the applicant has satisfied the requirements of this section, the Town Council may issue a conditional TCL and a Resolution of Support to the applicant but shall not be required to do so.

Upon an affirmative vote of a majority of the full authorized membership of the Town Council, a conditional TCL and a Resolution of Support shall be issued to the applicant by the Town Clerk.

The Town Council shall have the discretion to impose additional requirements beyond those set forth in this section and pursuant to the recommendations received pursuant this subsection as conditions on its approval of any conditional TCL.

The Town Council shall issue a conditional TCL only after receiving:

A Resolution of Support issued to the TCL applicant by the Town Council.

A copy of the TCL applicant's annual cannabis business operating license issued by the CRC.

A certificate of occupancy for the premises to be used by the PCO.

§ 32-5 Disciplinary Actions.

Disciplinary Actions; Sanctions; Penalties.

Disciplinary actions. Procedures for investigation of TCL violations and for suspension, revocation or other licensing sanctions as a result of any such violation shall be as follows:

First offense: Up to $1,000 per violation per day;

Second offense: Up to $2,500 per violation per day;

Third violation shall result in a summary suspension.

If a second offense is on-going for more than 10 days, a summary suspension may be imposed.

(e)

Each day a violation continues after notification that it exists shall constitute a separate offense.

Suspension of License.

The Town Council may suspend or revoke the TCL for cause after notice and hearing by majority vote of the Town Council if the Town Council determines:

There was fraud, misrepresentation, or false statements contained in the initial application or renewal;

(2)

A licensee or owner of the business holding the license is convicted of a crime or felony;

(3)

The licensee is conducting a business activity in an unlawful manner that violates this chapter, federal law, state law, any Town ordinance, or in any manner that may constitute a breach of the peace, menace to the public health, public safety, and public nuisance; or

(4)

Failure to comply with the provisions of this chapter or for any other good and sufficient cause.

The Chief of Police or Health Officer may revoke the TCL without prior notice and hearing if the Chief of Police or Health Officer determines that it would be detrimental to the health, safety, and welfare of the residents of the Town to permit the continued operation of the licensee's activity until notice of a formal hearing can be given. If the TCL is revoked in this manner, the licensee shall be entitled to a hearing at the next regularly scheduled meeting of the Town Council.

The hearing shall follow the same format and requirements as the hearing described in § 4-12.2 of the Town Code, unless this chapter or applicable state law imposes a different procedure.

Should the State of New Jersey, or any of its commissions, agencies, departments or divisions, including without limitation the CRC, suspend, revoke or terminate the license of a PCO, such suspension, revocation or termination shall automatically revoke any TCL previously issued to the PCO and the PCO will be prohibited from operating within the Town. No refund will be issued by the Town with respect to any suspended, revoked or terminated TCL.

(e)

A revocation order shall be in writing and shall state the reason(s) therefor. The TCL licensee shall be afforded an opportunity to be heard before or after the suspension or revocation, as described in this Section.

(f)

For purposes of this paragraph a2, "reasonable grounds" means one or more complaints that have been substantiated by a certified consultant designated by the Township, or other fault or instance of noncompliance found during an inspection conducted by the Town Police Department, Construction Code Official, Zoning Officer, Fire Code Official, or Hudson County Health Department.

§ 32-6 Security.

Security Measures.

All security measures must comply with applicable law and regulations, as well as with any terms and conditions imposed by state or local authorities on the issuance of a permit or license to operate a PCO.

Every PCO shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis productions, and to deter and prevent theft of cannabis or cannabis products at the PCO. Except as may otherwise be determined by the Town Council, these security measures shall include compliance with all State security regulations required under the PCO's annual operating cannabis license issued by the CRC as those regulations may be amended from time to time.

The Town Council may impose further security requirements above and beyond the minimum-security requirements imposed by state regulations, upon the recommendation of the Chief of Police based on the unique circumstances associated with a particular PCO. Except as may otherwise be determined by the Town Council, these security measures shall include compliance with all state security regulations required under the PCO's annual operating cannabis license issued by the CRC, as those regulations may be amended from time to time.

Surveillance system.

PCOs shall be monitored at all times by closed-circuit television surveillance system. Security cameras shall be in use 24 hours per day, seven days per week, and shall cover all cannabis dispensing areas, storage areas, all doors and windows with access into the PCO, parking areas, if applicable, and any other areas not mentioned if deemed necessary by the Chief of Police or his/her designee. The surveillance system must be capable of providing surveillance of both interior and exterior areas of the PCO and must be of adequate quality, color rendition and resolution to allow the ready identification of an individual on or adjacent to the site.

The security cameras must be internet protocol (IP) cameras capable of providing real-time footage over the internet. Operators must provide the Town Police Department with access to this real-time camera footage in case of an emergency.

The recordings shall be maintained at the cannabis operation for a period of not less than 30 days and shall be provided to the Town Police Department within 24 hours of a written request from the Police Department for any recordings.

Outside areas of the premises and the perimeter shall be lit in accordance with Town regulations and all doors are equipped with motion-sensor lights.

The Town Police Department shall be provided with the name and phone number of a staff person to notify during suspicious activity during or after operating hours.

Security staff is required on PCO premises during all hours of operation.

Storage of Currency. All currency over $1,000 shall be stored within a separate vault or safe securely fastened to a wall or floor, as approved by the Town Police Department.

No products to be visible from public places. Cannabis plants, products, accessories, and associated paraphernalia contained in any PCOs shall not be visible from a public sidewalk, public street or right-of-way, or any other public place.

10.

No fermented malt beverages and no alcoholic beverages shall be kept, served, or consumed on the premises of a cannabis business.

11.

All products and accessories shall be stored indoors and samples of cannabis products offered for sale shall be displayed on shelves, counters or display cases. All bulk cannabis products shall be located within a separate vault or safe, with no other items stored in the vault or safe, securely fastened to a wall or the floor.

12.

No consumption or smoking of any cannabis or cannabis products shall be allowed or permitted on the premises or adjacent grounds of a PCO.

13.

Every PCO shall identify a designated security representative/liaison to the Town, who shall be reasonably available to meet with the Town Manager, the Chief of Police, the Chief of Fire Department, or their designees, regarding any security-related measures or any operational issues.

14.

Every PCO shall cooperate with the Town whenever the Chief of Police or his/her designee makes a request, upon reasonable notice to the PCO, to inspect or audit the effectiveness of any security plan or of any other requirement imposed pursuant to this subsection.

15.

Every PCO shall notify the Chief of Police or his/her designee, as well as the Town Manager, within 24 hours after discovering any of the following:

Significant discrepancies identified during inventory.

Diversion, theft, loss, or any criminal activity involving the PCO or any agent or employee of the PCO.