[HISTORY: Adopted by the City Council of
the City of East Orange 8-20-2021 by Ord. No. 43-2021; amended in its entirety 10-16-2023 by Ord. No.
25-2023.[1] Subsequent amendments noted where applicable.]
[1]
Editor's Note: Prior amendments included Ord. Nos. 13-2022
and 26-2022.
The purpose of this chapter is to establish a local regulatory
system in compliance with state law pertaining to the cultivation,
manufacture, sale, resale, transportation, delivery, possession, consumption,
and use of cannabis and cannabis products within the City of East
Orange. This chapter promotes the health, safety and general welfare
of the residents of the City of East Orange in the following ways:
it increases local tax revenue; it ensures that any and all authorized
cannabis businesses will be in consonance with the City's land
use laws; it limits the consumption of cannabis and cannabis products
to certain designated areas, and it allows law enforcement to direct
its efforts and energies to curbing violent crimes.
The definitions promulgated under the Act, as supplemented by
the CRC Rules, shall apply to this chapter of the Municipal Code of
East Orange and other sections of the Municipal Code applicable to
cannabis business operations and the possession, consumption, use
and local taxation of cannabis and cannabis products. However, for
purposes of local regulation, the following definitions may supplement
the meanings of terms used in the Act and the CRC Rules as follows:
The New Jersey Cannabis Regulatory, Enforcement Assistance,
and Marketplace Modernization Act, N.J.S.A. 24:6I-31 et seq. (2021),
as may be amended in the future.
The total ownership interest held by an owner that is a person
and by the spouse, domestic partner, civil union partner, child, sibling,
or parent of that person.
See the definition of "license" further herein.
The Board of Cannabis Control established under this chapter.
All parts of the plant Cannabis sativa L., whether growing
or not, the seeds thereof, and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant or its seeds, except
those containing resin extracted from the plant, which are cultivated
and, when applicable, manufactured in accordance with the Act for
use in cannabis products as set forth in this chapter, but shall not
include the weight of any other ingredient combined with cannabis
to prepare topical or oral administrations, food, drink, or other
product. "Cannabis" does not include: 1) medical cannabis dispensed
to registered qualifying patients pursuant to the Jake Honig Act and
N.J.S.A. 18A:40-12.22 et seq.); 2) marijuana as defined in N.J.S.A.
2C:35-2 and applied to any offense set forth in Chapters 35, 35A,
and 36 of Title 2C of the New Jersey Statutes, or P.L. 2001, c. 114
(N.J.S.A. 2C:35B-1 et seq.); 3) marijuana as defined in Section 2
of P.L. 1970, c. 226 (N.J.S.A. 24:21-2) and applied to any offense
set forth in the New Jersey Controlled Dangerous Substances Act, N.J.S.A.
24:21-1 et seq.; or 4) hemp or a hemp products cultivated, handled,
processed, transported, or sold pursuant to the New Jersey Hemp Farming
Act, N.J.S.A. 4:28-6 et seq.
A cannabis cultivator, cannabis manufacturer, cannabis wholesaler,
cannabis distributor, cannabis retailer, or cannabis delivery service,
and includes an expanded ATC but not a cannabis testing facility.
A product manufactured by a cannabis manufacturer, either
in solid form or in liquid form, such as oil, including cannabis extracts
and resin extracted using nonchemical processes that contains only
the resin, cannabinoids, terpenes and other substances extracted from
any part of the cannabis plant.
A designated location in or on the premises of a cannabis
retailer, for which both state and City endorsements have been obtained,
where cannabis items may be consumed. A cannabis consumption area
may only be located in: 1) an indoor, structurally enclosed area of
the cannabis retailer's premises but separate from the area where
retail sales occur; or 2) an exterior structure on the same premises
as the cannabis retailer, either separate from or connected to the
premises.
The holder of a Class 1 Cannabis Cultivator license authorized
to 1) possess, propagate, germinate, plant, cultivate, grow, harvest,
dry, cure, process, package, dispose of, and destroy cannabis; and
2) transport, transfer, distribute, supply, and sell usable or unusable
cannabis to other cannabis cultivators or to cannabis manufacturers,
or sell usable cannabis to cannabis wholesalers or cannabis retailers.
The holder of a Class 6 cannabis Delivery license authorized
to provide courier delivery service of cannabis, cannabis products
and cannabis paraphernalia purchased from Class 5 retailers to consumers.
A cannabis delivery service is authorized after receiving a purchase
order from a consumer or a cannabis retailer to 1) obtain, possess,
store, and transport cannabis items, cannabis paraphernalia, and related
supplies from such cannabis retailer; 2) deliver those cannabis items,
cannabis paraphernalia, and related supplies to the consumer; 3) transport
undelivered cannabis items, cannabis Paraphernalia, and related supplies
back to its originating cannabis retailer; and 4) dispose of or destroy
cannabis items.
The holder of a Class 4 Cannabis Distributor license authorized
to provide bulk, intrastate transportation of: 1) unusable cannabis
between cannabis cultivators and cannabis manufacturers; and 2) cannabis
items between cannabis establishments. A cannabis distributor is also
authorized to 1) possess and engage in temporary storage of cannabis
or cannabis items, as necessary to carry out transportation activities;
and 2) dispose of or destroy cannabis items.
A cannabis cultivator, cannabis manufacturer, cannabis wholesaler,
or cannabis retailer.
A substance obtained by separating resins from cannabis by:
1) a chemical extraction process using a hydrocarbon-based solvent
such as butane, hexane, or propane; 2) a chemical extraction process
using the hydrocarbon-based solvent carbon dioxide, if the process
uses high heat or pressure; or 3) any other process identified by
the CRC by rule.
Any usable cannabis or cannabis product that is cultivated,
produced, manufactured or consumed.
The holder of a Class 2 manufacturer license to develop,
produce, manufacture, prepare, or otherwise create and package cannabis
products. A Class 2 manufacturer is authorized to: 1) purchase or
otherwise obtain usable and unusable cannabis from a cannabis cultivator
or cannabis manufacturer or usable cannabis from a cannabis wholesaler;
2) purchase or otherwise obtain cannabis products from another cannabis
manufacturer or a cannabis wholesaler; 3) develop, produce, manufacture,
prepare, or otherwise create and package cannabis products; 4) possess,
transfer, transport, distribute, supply, or sell usable and unusable
cannabis and cannabis products to another cannabis manufacturer, or
usable cannabis and cannabis products to a cannabis wholesaler or
a cannabis retailer; and 5) dispose of or destroy cannabis and cannabis
products.
Any equipment, products, or materials of any kind which are
used, intended for use, or designed for use in planting, propagating,
cultivating, growing, harvesting, composting, manufacturing, compounding,
converting, producing, processing, preparing, testing, analyzing,
packaging, repackaging, storing, vaporizing, or containing cannabis,
or for ingesting, inhaling, or otherwise introducing a cannabis item
into the human body; but does not include drug paraphernalia as defined
in N.J.S.A. 2C:36-1 and which is used or intended for use to commit
a violation of Chapter 35 or 36 of Title 2C of the New Jersey Statutes.
The Board-approved application form to be completed by applicants
seeking a permit from the City to operate an authorized cannabis business.
A cannabis concentrate or a cannabis-infused product that
a cannabis manufacturer manufactures, produces, or creates from usable
cannabis or cannabis concentrate.
The holder of a Class 5 Cannabis Retailer license to furnish
or sell usable cannabis, cannabis products, cannabis paraphernalia
and related supplies. A cannabis retailer is authorized to: 1) purchase
or acquire usable cannabis from cannabis cultivators, cannabis manufacturers,
cannabis wholesalers, or other cannabis retailers; 2) purchase or
acquire cannabis products and related supplies from cannabis manufacturers,
cannabis wholesalers, or other cannabis retailers; 3) purchase or
acquire paraphernalia and related supplies; 4) possess, display, transport,
transfer, distribute, supply, sell, and furnish usable cannabis, cannabis
products, cannabis paraphernalia, and related supplies to a consumer,
to other cannabis retailers, or to cannabis delivery services, based
on purchase orders from consumers; and 5) dispose of or destroy cannabis
items. A cannabis retailer may furnish usable cannabis, cannabis products,
cannabis paraphernalia, and related supplies to cannabis retailer
delivery or cannabis delivery service personnel for delivery to a
consumer.
An independent, third-party laboratory licensed by the CRC
to perform testing services, including analysis and certification
of compliance with applicable health, safety, and potency standards,
on usable cannabis for personal use and cannabis products.
The holder of a Class 3 Cannabis Wholesaler license authorized
to 1) purchase, or otherwise obtain, cannabis items from another cannabis
wholesaler, a cannabis cultivator, or a cannabis manufacturer for
the purpose of resale to another cannabis wholesaler, a cannabis manufacturer,
or a cannabis retailer; 2) possess, store, warehouse, transport, and
dispose of or destroy cannabis items; or 3) sell or otherwise transfer
cannabis items to another cannabis wholesaler, a cannabis manufacturer,
or a cannabis retailer.
A product manufactured by a cannabis manufacturer in an authorized
form that contains usable cannabis or cannabis concentrate, in solid
or liquid form, and one or more ingredients intended for human consumption
or use, including an ingestible product, inhalable product, or dermal
product.
A temporary cannabis business license issued by the CRC pursuant
to an abbreviated application process following which the conditional
licensee has 120 days, with the possibility of a forty-five-day extension
in the CRC's discretion, to submit a conversion application that
satisfies all the remaining conditions for licensure, allowing the
conditional licensee to convert the conditional license to an annual
license. A conditional licensee may not engage in any cannabis business
activities during the conditional license conversion phase.
The process prescribed in the CRC Rules by which a conditional
licensee submits a conversion application that satisfies all the remaining
conditions for licensure to convert the conditional license to an
annual license.
A person 21 years of age or older who purchases, directly
or through a cannabis delivery service, acquires, owns, holds or uses
cannabis items for personal use by a person 21 years of age or older,
but not for resale to others.
The act of ingesting, inhaling or otherwise introducing cannabis
items into the human body.
The Cannabis Regulatory Commission established pursuant to
Section 31 of the Act.[1]
The rules implementing the Act as promulgated by the Cannabis
Regulatory Commission and codified at N.J.A.C. 17:30-1.1 et seq.
The propagation, germination, planting, growing, harvesting,
drying, curing and processing of cannabis.
When a cannabis retailer sells a cannabis item to a consumer
who is on the exterior of the facility on the cannabis retailer's
premises, which includes any parking lot and adjacent sidewalk located
at the physical address listed on the cannabis business license.
The vehicle used for the transport of cannabis items or related
supplies between cannabis businesses or for the delivery of cannabis
items to consumers.
A license applicant or licensee whose entity has been certified,
pursuant to the criteria at N.J.A.C. 17:30-6.4, as:
A zip code that meets all the following socioeconomic criteria:
The state and municipal authorizations or approvals issued
in accordance with the Act, the CRC Rules and this chapter, by the
CRC and the Board, respectively, to a cannabis retailer to operate
a cannabis consumption area on its premises.
An alternative treatment center or ATC that has already been
issued a state permit to cultivate, manufacture, and dispense medical
cannabis and related paraphernalia pursuant to the Jake Honig Act,
and which is also authorized by the CRC to operate as a cannabis cultivator,
cannabis manufacturer, cannabis wholesaler, cannabis distributor,
cannabis retailer and/or cannabis delivery service, in addition to
its ATC operations.
Anything of value that is given or received either directly
or indirectly through sales, barter, trade, fees, charges, dues, contributions,
or donations.
A person or entity that lends any amount of capital to a
cannabis business pursuant to a secured or unsecured financing agreement
and who is not an owner, passive investor, or principal of such cannabis
business.
Any agreement, contract, arrangement, or other type of formal
understanding between a financial source and a cannabis business where
the financial source lends capital to the cannabis business pursuant
to a secured or unsecured financing agreement and does not receive
ownership interest in accordance with the CRC Rules.
The delivery of cannabis items and cannabis paraphernalia
by cannabis retailer delivery personnel or cannabis delivery service
personnel to a consumer at a residence based on a purchase order.
A cannabis plant that is not flowering.
The spouse, domestic partner, civil union partner, child,
sibling, or parent of a person, whether biological or adopted, and
shall include the siblings, parents, and children of the person's
spouse, domestic partner, or civil union partner, and the parents,
spouses, domestic partners, or civil union partners of the person's
parents, siblings, and children.
Any municipality, based on past criminal marijuana enterprises
contributing to higher concentrations of law enforcement activity,
unemployment, and poverty, or any combination thereof, within parts
of or throughout the municipality, that:
Has a population of 120,000 or more according to the most recently
compiled federal decennial census as of the effective date of the
Act;
Based upon data for calendar year 2019, ranks in the top 40%
of municipalities in the state for marijuana- or hashish-related arrests
for violation of paragraph (4) of Subsection a of N.J.S.A. 2C:35-10;
has a crime index total of 825 or higher based upon the indexes listed
in the annual Uniform Crime Report by the Division of State Police;
and has a local average annual unemployment rate that ranks in the
top 15% of all municipalities, based upon average annual unemployment
rates estimated for the relevant calendar year by the Office of Research
and Information in the Department of Labor and Workforce Development;
Is a municipality located in a county of the third class, based upon the county's population according to the most recently compiled federal decennial census as of the effective date of the Act, that meets all of the criteria set forth in Subsection B other than having a crime index total of 825 or higher; or
Is a municipality located in a county of the second class, based
upon the county's population according to the most recently compiled
federal decennial census as of the effective date of the Act:
With a population of less than 60,000 according to the most
recently compiled federal decennial census, that for calendar year
2019 ranks in the top 40% of municipalities in the state for marijuana-
or hashish-related arrests for violation of paragraph (4) of Subsection
a of N.J.S.A. 2C:35-10; has a crime index total of 1,000 or higher
based upon the indexes listed in the 2019 annual Uniform Crime Report
by the Division of State Police; but for calendar year 2019 does not
have a local average annual unemployment rate that ranks in the top
15% of all municipalities, based upon average annual unemployment
rates estimated for the relevant calendar year by the Office of Research
and Information in the Department of Labor and Workforce Development;
or
With a population of not less than 60,000 or more than 80,000
according to the most recently compiled federal decennial census;
has a crime index total of 650 or higher based upon the indexes listed
in the 2019 annual Uniform Crime Report; and for calendar year 2019
has a local average annual unemployment rate of 3.0% or higher using
the same estimated annual unemployment rates.
The Jake Honig Compassionate Use Medical Cannabis Act, N.J.S.A.
24:6I-1 et seq. (2019), as may be amended in the future.
An authorization or approval issued by the CRC in accordance
with the Act and the CRC Rules authorizing a licensee to possess,
transport, cultivate, manufacture, sell, test, deliver cannabis items
or cannabis products, or engage in other conduct in accordance with
the Act and the CRC Rules. Licenses are issued by the CRC to microbusinesses,
standard cannabis businesses and cannabis testing facilities, and
must be renewed on an annual basis.
A person or entity that is applying for, or has a pending
application for, a conditional or annual cannabis business license
or a cannabis testing facility license with the CRC.
The holder of a cannabis business license.
An owner, director, officer, manager, employee, agent, or
other representative of a cannabis business applicant or licensee,
to the extent that the person acts in a representative capacity.
The Board-approved application form to be completed by applicants
seeking a resolution of support to operate an authorized cannabis
business in the City.
Any agreement, contract, arrangement, or other type of formal
understanding between a management services contractor and a cannabis
business where the management services contractor provides professional
staffing, administrative, operational, advisory, or management services
to a cannabis business in exchange for remuneration, but not an ownership
interest.
A third-party vendor-contractor, supervised by the principals
and owners of the cannabis business, that provides professional staffing,
administrative, operational, advisory, or management services to a
cannabis business in exchange for remuneration pursuant to a management
services agreement in accordance with the CRC Rules.
A person who is an employee or volunteer that participates
in control or decisionmaking authority over the direction, management,
operations, or policies of a cannabis business and who is supervised
by the principals and owners of the cannabis business.
Preparing, compounding, mixing or converting usable cannabis
to produce, make, or otherwise create a cannabis product.
A harvestable female cannabis plant that is flowering.
Cannabis in various forms dispensed to registered qualifying
patients and designated caregivers pursuant to the Jake Honig Act.
The holder of a license to operate a cannabis business with
a smaller footprint than a standard cannabis business and which, with
respect to its operations, capacity and quantity of product, may only:
Employ no more than 10 employees;
Operate a cannabis establishment occupying an area of no more
than 2,500 square feet, and in the case of a cannabis cultivator grow
cannabis on an area no more than 2,500 square feet measured on a horizontal
plane and grow above that plane not higher than 24 feet;
Possess no more than 1,000 cannabis plants each month, except
that a cannabis distributor's possession of cannabis plants for
transportation shall not be subject to this limit;
Acquire each month, in the case of a cannabis manufacturer,
no more than 1,000 pounds of usable cannabis;
Acquire for resale each month, in the case of a cannabis wholesaler,
no more than 1,000 pounds of usable cannabis or the equivalent amount
in any form of manufactured cannabis product or cannabis extract,
or any combination thereof; and
Acquire for retail sale each month, in the case of a cannabis
retailer, no more than 1,000 pounds of usable cannabis or the equivalent
amount in any form of manufactured cannabis product or cannabis extract,
or any combination thereof.
A person who is an officer of a cannabis business pursuant
to the entity's formation documents, operating agreement or bylaws,
or who participates in managing the cannabis business.
This chapter, Ordinance No. 25 of 2023, as it amends or supplements
the municipal Code of the East Orange with respect to the cultivation,
manufacture, sale and resale, transportation and delivery, possession,
consumption, use and local taxation of cannabis and cannabis products
within the City.
Any person or entity that holds at least a 5% aggregate ownership
interest in a cannabis business;
Where an entity, including a parent company, holds at least
a 5% ownership interest in a cannabis business, any person or entity
that holds at least 10% aggregate ownership interest in or is a member
of the executive team of such entity except that, where such entity
holding at least a 5% ownership interest in a cannabis business:
Is a nonprofit entity, any person or entity that is an officer
in accordance with the articles of incorporation or the bylaws or
is a member of the governing board of such entity;
Is a qualified institutional investor, any person or entity
that holds at least 30% aggregate ownership interest in or is a member
of the executive team of such entity; or
Is a trust, any trustee of such entity; or
A significantly involved person of a cannabis business.
A right to ownership or equity interest in an entity.
A person or entity that:
An authorization or approval issued by the Board in accordance
with this chapter to operate as a cannabis cultivator, cannabis manufacturer,
cannabis wholesaler, cannabis distributor, cannabis retailer or cannabis
delivery service. Permits are issued by the Board to those microbusinesses
and standard cannabis businesses authorized under this chapter and
must be renewed on an annual basis.
The holder of a cannabis business permit.
Includes the following areas of a location controlled or
operated by a cannabis business: 1) all public and private enclosed
areas at the location that are used in the business operated at the
location, including offices, kitchens, restrooms, and storerooms;
2) any areas outside a building that is used, or is to be used, for
the cultivation, manufacturing, wholesaling, distributing, retail
sale, or delivery of cannabis items; and 3) for a location that is
used, or is to be used, for the outdoor cultivation, the entire lot
or parcel that the licensee owns, leases, or has a right to occupy.
A purely administrative office operated by a cannabis distributor
or cannabis delivery service that is not used for the possession or
handling of cannabis or cannabis items shall not be considered a cannabis
business premises.
A person or entity, including an officer or a board member
but not a manager or management services contractor, that participates
in control or decisionmaking authority over the direction, management,
operations, or policies of a cannabis business. Where a principal
of a cannabis business is an entity, any person or entity that holds
at least 10% aggregate ownership interest in, or is a member of the
executive team of, such entity is also a principal of such cannabis
business.
The planting, cultivation, growing or harvesting of cannabis,
but not the drying of cannabis by a cannabis manufacturer if the cannabis
manufacturer is not otherwise manufacturing cannabis.
Any place to which the public has access that is not privately
owned; or any place to which the public has access where alcohol consumption
is not allowed, including, but not limited to, a public street, road,
thoroughfare, sidewalk, bridge, alley, plaza, park, playground, swimming
pool, shopping area, public transportation facility, vehicle used
for public transportation, parking lot, public library, or any other
public building, structure, or area.
A building or structure that contains one or more dwelling
units used or occupied solely for residential purposes.
A resolution issued by East Orange's City Council demonstrating
proof of local support for the suitability of a cannabis business's
proposed location, as required by the CRC Rules, to apply for an annual
license or conditional license conversion to operate as a microbusiness
or standard cannabis business.
A person or entity who: 1) holds at least a 5% investment
interest in a cannabis business, or 2) who is a decisionmaking member
of a group that holds at least a 20% investment interest in a cannabis
business, in which no member of that group holds more than a 5% interest
in the total group investment interest and the person or entity makes
controlling decisions regarding the cannabis business's operations.
A license applicant or licensee that meets one of the following
criteria:
More than 50% of the ownership interest of the cannabis business
is held by one or more persons that demonstrate all the following
criteria at the time of initial application submission:
They have lived in an economically disadvantaged area for five
of the 10 preceding years; and
Based on the preceding year's income, they are a member
of a household that has a household income that is 80% or less of
the average median household income in the state, as determined annually
by the U.S. Census Bureau; or
More than 50% of the ownership interest of the cannabis business
is held by one or more persons who are eligible to be pronounced rehabilitated
in accordance with N.J.A.C. 17:30-7.12(e), if necessary, and have
been adjudicated delinquent for, or convicted of, whether expunged
or not, in this state, another state, or the federal government:
The holder of a license to operate a cannabis business that
is not subject to any of the limitations imposed on microbusinesses
with respect to its operations, capacity, and quantity of product.
Delta-9-tetrahydrocannabinol and its precursor, tetrahydrocannabinol
acid, the main psychoactive chemicals contained in the cannabis plant.
The cannabis seeds, stems, stalks, roots, or any part of
the immature cannabis plant.
The dried leaves and flowers of the mature cannabis plant;
but does not include the cannabis seeds, seedlings, stems, stalks,
roots, or any part of the immature cannabis plant.
A third-party person or entity that is separate from the
cannabis business that provides goods, services, or intellectual property
to a cannabis business in exchange for remuneration, but not an ownership
interest, pursuant to a contract or agreement.
[1]
Editor's Note: See N.J.S.A. 24:6I-24.
A.
Purpose. This section, titled "Board of Cannabis Control," is created
and added to the administrative ordinances of the Municipal Code of
East Orange for the purpose of establishing a Board of Cannabis Control
to act as the local permitting and regulating authority for recreational
cultivation, manufacturing, wholesale, distribution, retail, delivery,
possession, consumption, use and local taxation of cannabis and cannabis
items in the City in accordance with the provisions of the Act, the
CRC Rules, and the rules and regulations of East Orange not inconsistent
with the Act or other applicable rules and regulations of the State
of New Jersey.
C.
Board established. There is hereby established in the City a Board
of Cannabis Control. Under all circumstances in which state law requires
communication to the City by the CRC or any other state agency regarding
the licensing and regulation of cannabis businesses by the state,
or in which state law requires any review or approval by the City
of any action taken by the CRC, the exclusive authority for receiving
such communications and granting such approvals shall be exercised
by the Board of Cannabis Control, except for the issuance of resolutions
of support, which may only be issued by the City Counsel.
D.
Membership; appointments; terms of office.
(1)
The Board of Cannabis Control shall consist of five members and two
liaisons. Only members shall have voting rights. The liaisons may
be changed from time to time at the discretion of the Mayor and the
City Council Chairperson, who shall each appoint one liason.
(2)
The Mayor shall appoint three members to the Board, and the remaining
two members shall be appointed by City Council; provided, however,
each member is subject to City Council confirmation. Members shall
be appointed for a term of four years and shall serve until their
successors have been appointed or qualified, unless sooner terminated
by death, incapacity, resignation or removal. The terms of the members
shall be staggered such that each year at least one member's
term is expiring. At each reorganization meeting of the Board, the
Board shall elect from among its members a Chairperson and Vice Chairperson
to serve for the ensuing year. There shall be no limit to the number
of terms a member may be appointed to serve the Board or the number
of times a member may be elected Chairperson and Vice Chairperson.
E.
Powers and duties. The powers and duties of the Board of Cannabis
Control shall include, without limitation:
(1)
Making recommendations to the Mayor and Council, consistent with
the Act, the CRC Rules, the stated purposes of this chapter and the
applicable rules and regulations of East Orange not inconsistent with
the Act or other applicable rules and regulations of the state, regarding
the: 1) classes, types and number of cannabis businesses permitted
to operate in the City; 2) location, manner and times of operation
of each cannabis business, except for the times of operation of cannabis
distributors and cannabis delivery services; 3) local application
and permitting requirements for authorized cannabis businesses; and
4) collection and use of municipal transfer and user taxes;
(2)
Establishing criteria and a formal process for applicants to apply
for a resolution of support for their conditional license conversion
or annual license applications;
(3)
Hearing applications for resolutions of support, determining whether
applicants meet the applicable criteria, and issuing endorsements
to the Council for applicants that do;
(4)
Establishing criteria and a formal process for cannabis businesses
to apply for a post-license permit and a consumption area endorsement
in order to operate as a microbusiness or standard cannabis business
in the City;
(5)
Hearing applications for post-license permits and consumption area
endorsements, and any renewals thereof, in accordance with the licensing
provisions of the Act and of the Municipal Code of East Orange, and
awarding permits to those applicants that meet the applicable criteria;
(6)
Enforcing all state and municipal rules and regulations applicable
to the location, manner and times of operation of a cannabis business's
premises located in the City;
(7)
Establishing civil penalties for violations of any local ordinance
or regulation governing the location, manner and times of operation
of a cannabis business's premises located in the City; and
(8)
Any other powers and duties delegated to a municipality under the
Act, by the CRC, under other applicable state laws or the Municipal
Code of East Orange.
F.
Operation in accordance with State Law. The Board of cannabis control
shall be operated in accordance with the provisions of the Act and
the CRC Rules.
A.
Purpose. This section titled "Cannabis transfer and user taxes,"
is created and added to the general ordinances of the Municipal Code
of East Orange for the purpose of establishing local transfer and
user taxes on the sale of cannabis or cannabis items by a cannabis
establishment located in the City in accordance with the provisions
of the New Jersey Cannabis Regulatory, Enforcement Assistance, and
Marketplace Modernization Act, N.J.S.A. 24:61-31 et seq. (the "Act"),
the Cannabis Regulatory Commission ("CRC") Rules, and the rules and
regulations of the City not inconsistent with the Act or other applicable
rules and regulations of the State of New Jersey.
C.
Tax established; amount.
(1)
There is hereby established a transfer tax on the sale of cannabis
or cannabis items by a cannabis establishment located in the City
which shall be fixed at a uniform percentage rate of 2% of the receipts
from each sale by a cannabis cultivator; 2% of the receipts from each
sale by a cannabis manufacturer; 1% of the receipts from each sale
by a cannabis wholesaler; and 2% of the receipts from each sale by
a cannabis retailer pursuant to N.J.S.A. 24:6I-48 et seq.
(2)
There is further hereby established a user tax at the equivalent transfer tax rates on any permit holder concurrently operating more than one licensed cannabis establishment in the state on the value of each transfer or use of cannabis or cannabis items not otherwise subject to the transfer tax imposed pursuant to Subsection A of this section, from the permit holder's cannabis establishment that is located in the City to any of the other permit holder's cannabis establishment(s), whether located in the City or another municipality.
D.
Effect on other taxes.
(1)
Any transfer tax or user tax imposed pursuant to this section shall
be in addition to any other tax imposed by the Act.
(2)
Any transaction for which the transfer tax or user tax is imposed,
or could be imposed, pursuant to this section, other than those which
generate receipts from the retail sales by cannabis retailers, shall
be exempt from the tax imposed under the Sales and Use Tax Act, N.J.S.A.
54:32B-1 et seq., as amended.
E.
Collection of tax.
(1)
The transfer tax or user tax shall be remitted to the City's
Chief Financial Officer by the cannabis establishment from its purchasing
or receiving the cannabis or cannabis item, or from the consumer at
the point of sale, on behalf of the City by the cannabis retailer
selling the cannabis item to that consumer.
(2)
Transfer and user taxes are due and payable quarterly on April 1,
July 1, October 1 and January 1 of each year. Each payment shall be
based on the cannabis establishment's gross sales during the
preceding three-month period and shall be accompanied by appropriate
reporting forms as designated by the Chief Financial Officer.
(3)
The transfer tax or user tax shall be stated, charged, and shown
separately on any sales slip, invoice, receipt, or other statement
or memorandum of the price paid or payable, or equivalent value of
the transfer, for the cannabis or cannabis item.
(4)
Every cannabis establishment required to collect a transfer tax or
user tax imposed by ordinance pursuant to this section shall be personally
liable for the transfer tax or user tax imposed, collected, or required
to be collected under this section.
(5)
Any cannabis establishment shall have the same right with respect
to collecting the transfer tax or user tax from another cannabis establishment
or the consumer as if the transfer tax or user tax was a part of the
sale and payable at the same time, or with respect to nonpayment of
the transfer tax or user tax by the cannabis establishment or consumer,
as if the transfer tax or user tax was a part of the purchase price
of the cannabis or cannabis item, or equivalent value of the transfer
of the cannabis or cannabis item, and payable at the same time; provided,
however, that the City's Chief Financial Officer shall be joined
as a party in any action or proceeding brought to collect the transfer
tax or user tax.
(6)
No cannabis establishment required to collect a transfer tax or user
tax imposed pursuant to this section shall advertise or hold out to
any person or to the public in general, in any manner, directly or
indirectly, that the transfer tax or user tax will not be separately
charged and stated to another cannabis establishment or the consumer,
or that the transfer tax or user tax will be refunded to the cannabis
establishment or the consumer.
F.
Enforcement; penalties.
(1)
The City shall enforce the payment of delinquent transfer taxes or
user taxes imposed under this section in the same manner as provided
for municipal real property taxes.
(2)
In the event the transfer tax or user tax imposed under this section
is not paid as and when due by a cannabis establishment, the unpaid
balance, and any interest accruing thereon, shall be a lien on the
parcel of real property comprising the cannabis establishment's
premises in the same manner as all other unpaid municipal taxes, fees,
or other charges. The lien shall be superior and paramount to the
interest in the parcel of any owner, lessee, tenant, mortgagee, or
other person, except the lien of municipal taxes, and shall be on
a parity with and deemed equal to the municipal lien on the parcel
for unpaid property taxes due and owing in the same year.
(3)
A statement showing the amount and due date of the unpaid balance
and identifying the lot and block number of the parcel of real property
that comprises the delinquent cannabis establishment's premises
shall be filed in the office of the City's Tax Collector.
(4)
Any lien created under this section shall be enforced as a municipal
lien in the same manner as all other municipal liens are enforced.
(5)
The penalty for violation of the foregoing provisions shall be a
minimum of $1,000. This clause shall not be construed to limit or
otherwise interfere with the ability of the City to pursue all remedies
that are available to it at law and/or equity in connection with any
municipal liens that are imposed against the property that houses
the subject permittee.
G.
Distribution of provisions of this section. A copy of this section
shall be transmitted to the State Treasurer and to each cannabis establishment
located within the City.
A.
Purpose.
(1)
This § 120-5, titled "Cannabis business permitting; rules and regulations," is created and added to the general ordinances of the Municipal Code of East Orange for the purpose of establishing local permitting requirements and regulating the operations of cannabis businesses with respect to the cultivation, manufacturing, wholesale, distribution, retail, delivery, consumption, use and local taxation of recreational cannabis and cannabis items in the City in accordance with the provisions of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (the "Act"), any supplements and amendments thereto, and in accordance with the rules and regulations promulgated by the Cannabis Regulatory Commission (the "CRC Rules"), and in accordance with the rules and regulations of the City not inconsistent with the Act or the rules and regulations of the State of New Jersey.
(2)
The regulations of this section are subject to the enabling authority
of the state pursuant to N.J.S.A. 24:6I-45 and are subject to compliance
with all statutes and regulations adopted by the state or its instrumentalities,
including the CRC. If any provision of this section is inconsistent
with state statutes or any regulations thereof, the state statutes
and regulations shall prevail.
C.
General provisions.
(1)
State License and City permit required. Prior to the operation of
any microbusiness or standard cannabis business in the City, a license
from the state pursuant to the Act and a permit from the City pursuant
to this chapter must first be obtained for the class of cannabis business
authorized herein. No microbusiness or standard cannabis business
may operate without having been issued a license and permit by the
state and City, respectively. The City will not act on any cannabis
permit application until such time as the applicant has been approved
for an annual license from the state.
(2)
Compliance with the Act, CRC Rules and East Orange Municipal Code.
All authorized microbusiness and standard cannabis businesses must
operate in strict compliance with the terms and conditions of their
state-issued license and City-issued permit, the Act, the CRC Rules
and any other applicable chapters of the Municipal Code of East Orange,
as may be amended in the future.
(3)
Authorized cannabis business operations.
(a)
Effective August 20, 2021, East Orange shall permit microbusinesses
and standard cannabis businesses to perform the following operations
in the City:
(b)
Alternative treatment centers, expanded ATCs and cannabis testing facilities are not authorized to operate in the City. The maximum number, if any, of microbusiness and standard cannabis business permits available per class of operation, and the zoning districts in which they may be located, shall be set forth in Chapter 51 of the Municipal Code of East Orange in accordance with the provisions of this section.
(4)
Zoning generally. Cannabis businesses shall only be authorized to operate in zoning districts, and such other designated areas, within the City that specifically allow for such class of operation as a permitted use or a conditional use. If a zoning district, or other designated area, within the City allows for a particular class of operation on a conditional use basis, the cannabis business must apply for a variance in accordance with applicable provisions of Chapter 51 of the Municipal Code of East Orange.
(5)
Separation distance requirements. No cannabis establishment shall
operate within 100 feet of a child day-care center, elementary school
or high school or 625 feet from another cannabis establishment, as
measured from the main entrance of each establishment.
(6)
Consumption areas. A cannabis retailer may apply for a cannabis consumption area endorsement in accordance with the Act, the provisions of this section and Chapter 51 of the Municipal Code of East Orange.
(7)
Notice of application acceptance. Upon organization of the Board,
the Board shall issue a notice of application acceptance for resolutions
of support and permits (each a "notice of application acceptance").
A notice of application acceptance shall, minimally, set forth the
criteria, process, period and manner in which the Board will accept,
review and approve local support applications and cannabis permit
applications, and the fees associated with same.
D.
Resolutions of support.
(1)
Resolution of support requirements. Any microbusiness or standard
cannabis business applicant seeking a resolution of support for any
authorized class of operation shall submit to the Board a fully completed
application for local support with required attachments, in the form
and manner prescribed by the Board (the "local support application")
along with payment of the applicable fees prescribed herein. The local
support application shall include, without limitation, the following
information and attachments:
(a)
The applicant's name, principal address, telephone number,
email address, contact name and title (the "applicant information");
(b)
Type and class of permit sought (the "license information");
(c)
Location of the proposed premises with documentary evidence
that the applicant has, or plans to obtain, lawful possession of the
premises, and a brief statement of the premises' suitability
for the proposed cannabis business operation (the "site information");
(d)
The number and specifications of any delivery vehicles the applicant
proposes to use for distribution, delivery, or any other transport
of cannabis and cannabis items permitted by the CRC Rules, ownership
information and the location where vehicles will be stored when not
in use (the "vehicle information");
(e)
A zoning determination letter issued by the City's Zoning
Official certifying that the premises are properly zoned for the cannabis
business operation proposed by applicant and setting forth any zoning
and land use requirements applicable to the premises (the "zoning
determination letter");
(f)
Any site plan approvals (including variances for the cannabis
operations proposed) obtained from the City's Planning Board
of Adjustment, or plans to obtain any site plan approval needed for
buildout or retrofit of the interior and exterior of the premises
(the "site plan approvals");
(g)
A map of the applicant's site location, evidencing compliance
with the maximum separation distances required between cannabis establishments
and child day-care centers, elementary schools, high schools, and
other cannabis establishments (the "separation distance map");
(h)
Organizational charts identifying the applicant's ownership,
control, and operational structures (the "organizational charts");
(i)
The applicant's work history and experience in the cannabis
industry or other highly regulated industries ("applicant experience");
(j)
A brief description of the proposed cannabis business's
operation, financing, product and pricing plans, market analysis and
method of operation (the "business plan");
(k)
A brief description of the applicant's safety and security
plan (the "security plan");
(l)
A brief description of the applicant's community impact
plan (the "community impact plan");
(m)
A brief description of the applicant's workforce development
and job creation plan that ensures 35% or more of applicant's
workforce will come from City residents (the "workforce development
plan");
(n)
A brief description of the applicant's history of, or plans
regarding, social responsibility, philanthropy, community engagement
and outreach, and any local ties (collectively, "social responsibility
statement");
(o)
A brief description of the applicant's nuisance mitigation
plan (the "nuisance mitigation plan"); and
(p)
Any other information, consistent with state licensing and City
permitting requirements, which the Board requests.
(2)
Review process. Upon receipt of a fully complete local support application,
the Board shall distribute copies of the local support application
to each member of the Board, the Board's attorney, the Chief
of Police, and the City Administrator. The Chief of Police and the
City Administrator may, at any time following receipt of a local support
application and until the time of hearing, offer comment to the Board
on any portion of same.
(3)
Initial review period. Within 45 days of receipt of a fully complete
local support application the Board shall score the application based
on the application criteria set forth in the notice of application
acceptance. Applications that receive the minimum scoring threshold
set forth in the notice of application acceptance shall be noticed
for a hearing before the Board. Applications that do not receive the
minimum scoring threshold set forth in the notice of application acceptance
shall receive a written notice to cure citing deficiencies in the
application (the "notice to cure"). Applicants receiving a notice
to cure shall have the opportunity to cure the deficiencies cited
therein and submit a cured local support application for reconsideration.
(4)
Endorsements. The Board shall have the discretion to hold as many
hearings as it deems necessary to decide on each local support application
that advances to a hearing. At the conclusion of such hearing(s),
the Board shall determine whether to approve an applicant for an endorsement
to the City Counsel or deny the local support application. An approved
applicant will receive a written endorsement for a resolution of support
from the City Council.
(5)
Limitations on resolutions of support. Resolutions of support shall
only be issued by the City Council in the manner prescribed by the
CRC Rules. An applicant may, in the City Council's discretion,
be required to appear before it for the issuance of a resolution of
support. The City Council shall only issue resolutions of support
for the maximum number of annual permits then available to operate
in the City. Unless such time is extended by the Council, in its sole
discretion, resolutions of support shall expire 180 days following
the date of issuance.
(6)
Local support fees.
(a)
A nonrefundable administrative fee of $500 shall be submitted
with each local support application and amended local support application
submitted to the Board for review (the "administrative fee"). Additionally,
a nonrefundable processing fee for issuance of a resolution of support
is due at the time of submission of the local support application
(the "processing fee"). The processing fees for each cannabis business
authorized under the provisions of this chapter shall be as follows:
|
Permit Class
|
Standard Permit
|
Microbusiness Permit
| |
|---|---|---|---|
|
1.
|
Cultivator
|
Up to $12,500
|
$1,250
|
|
2.
|
Manufacturer
|
Up to $7,500
|
$750
|
|
3.
|
Wholesaler
|
$2,500
|
$250
|
|
4.
|
Distributor
|
$1,000
|
$100
|
|
5.
|
Retailer*
|
$2,500
|
$250
|
|
6.
|
Delivery
|
$1,000
|
$100
|
|
NOTE:
| |
|
*
|
The processing fee for a cannabis consumption area endorsement
issued to a standard cannabis retailer is $2,500, and to a microbusiness
retailer is $250.
|
(b)
Applicants must submit payment of the total amount of applicable
administrative and processing fees with their local support application,
and any amended local support application, in the manner prescribed
by the Board. No fees will be refunded in the event applicant is not
issued a resolution of support.
E.
Permit approval.
(1)
Permit requirements. A microbusiness or standard cannabis business
seeking a permit from the City to operate pursuant to a license approved
by the state shall submit to the Board a fully completed application
for a cannabis business permit with attachments, in the form and manner
prescribed by the Board (the "cannabis permit application"), along
with the applicable fees prescribed herein. The cannabis permit application
shall include, without limitation, the following information and attachments:
(a)
The applicant's name, principal address, telephone number,
email address, contact name and title;
(b)
Type and class of permit sought;
(c)
To the extent any of the following information provided by the
applicant in its local support application has changed since the resolution
of support was issued, the applicant shall provide current information
with respect to:
[1]
Site information, required to the extent: a) the applicant changed
the proposed location or use of the cannabis business's premises,
or b) the manner of site control has changed;
[2]
Delivery vehicle information, required to the extent: a) the
applicant has changed the delivery vehicles proposed, or b) the ownership
or control of each delivery vehicle, or the proposed storage location,
has changed;
[3]
A new or amended zoning determination letter, required to the
extent: a) applicant changed the proposed location or use of the cannabis
business's premises, or b) the zoning or land use provisions
of this chapter were amended, since the applicant submitted its local
support application;
[4]
New or updated site plan approvals, required to the extent:
a) the applicant changed the proposed location or use of the cannabis
business's premises, b) the applicant modified its previously
approved plans for buildout or retrofit of the interior and exterior
of the premises, or c) the zoning or land use provisions of this chapter
were amended since the applicant submitted its local support application;
[5]
An updated separation distance map, required to the extent:
a) the applicant changed the proposed location or use of the cannabis
business's premises, b) the locations of child day-care centers,
elementary schools, high schools, and other cannabis establishments
within the separation distance buffers have changed, or c) the zoning
or land use provisions of this chapter were amended since the applicant
submitted its local support application;
[6]
Updated organizational charts, required to the extent: a) the
applicant has changed its ownership, control, or operational structures,
or b) the applicant's owners, principals, management services
contractors, or managers, as well as all parent companies, subsidiaries,
affiliates, predecessors, and successors, have changed since the applicant
submitted its local support application;
[7]
The applicant's experience;
[8]
The applicant's business plan;
[9]
The applicant's safety plan;
[10]
The applicant's community impact plan;
[11]
The applicant's workforce development plan;
[12]
The applicant's record of social responsibility statement;
[13]
The applicant's nuisance mitigation plan;
(d)
True and complete copies with attachments of the conditional
license and conversion license applications or the annual license
application, as applicable, submitted by the applicant to the CRC;
(e)
A true and complete copy of the final agency decision letter
issued to applicant by the CRC for its annual license;
(f)
Verified proof of funds for financing the applicant's cannabis
business operation;
(g)
Documentary evidence that all owners, principals and employees
required to submit to a background check under the CRC Rules have
done so and passed;
(h)
An affidavit certifying that a) the cannabis business will not
discriminate based on race, color, religion or creed, gender, gender
expression, age, national origin or ancestry, disability, marital
status, sexual orientation or military status in any of its hiring
practices or business activities; b) compliance with all state and
local laws regarding affirmative action, antidiscrimination and fair
employment practices; and c) 35% or more of the cannabis business's
workforce does or will consist of City residents.
(i)
Any other information, consistent with state licensing and City
permitting requirements, which the Board requests.
(2)
Review process. Upon receipt of a fully complete cannabis permit
application, the Board shall distribute copies of the cannabis permit
application to each member of the Board, the Board's attorney,
the Chief of Police, the City Administrator and the Council member
of the ward/district in which the premises are located.
(3)
Initial review period. Within 60 days of receipt of a fully complete
cannabis permit application the Board shall notify the applicant when
the application is scheduled to be heard. To the extent the applicant's
cannabis permit application meets all application requirements, the
Board shall issue a permit to the applicant, provided there remain
permits available pursuant to the maximum number of permits authorized
for the applicant's cannabis business operation in the City.
If the applicant's cannabis permit application fails to meet
all the application requirements, the Board shall issue the applicant
a written notice to cure, citing the deficiencies in the cannabis
permit application (the "notice to cure").
(4)
Notices to cure. Applicants issued a notice to cure shall have 45
days, unless extended by the Board in its sole discretion, within
which to cure deficiencies cited therein and submit an amended cannabis
permit application solely with respect to those deficiencies. The
Board will then have up to 30 days from receipt of the amended cannabis
permit application within which to hold hearings and decide on the
amended cannabis permit application, following which the Board will
either award a permit to the applicant, provided there remain permits
available pursuant to the maximum number of permits authorized for
the applicant's cannabis business operation in the City, or issue
a written notice of denial (the "notice of permit denial"). Notices
of permit denial issued pursuant to this subsection shall be final.
(5)
Appeals. Any applicant issued a notice of permit denial will be afforded
the opportunity for a hearing in accordance with the Administrative
Procedure Act, N.J.S.A. 52:14B-1 et seq. All notices of permit denial
shall include the time and framework within which the applicant may
request a hearing and the procedure for same.
(6)
Administrative fees. A nonrefundable administrative fee of $500 shall
be submitted with each cannabis permit application and amended cannabis
permit application submitted to the Board for review.
(7)
Initial permit fees.
(a)
The initial permit fees (each a "permit fee"), due at the time
of submission of the cannabis permit application, for each cannabis
business authorized under the provisions of this chapter, shall be
as follows:
|
Permit Class
|
Standard Permit
|
Microbusiness Permit
| |
|---|---|---|---|
|
1.
|
Cultivator
|
Up to $12,500
|
$1,250
|
|
2.
|
Manufacturer
|
Up to $7,500
|
$750
|
|
3.
|
Wholesaler
|
$2,500
|
$250
|
|
4.
|
Distributor
|
$1,000
|
$100
|
|
5.
|
Retailer*
|
$2,500
|
$250
|
|
6.
|
Delivery
|
$1,000
|
$100
|
|
NOTE:
| |
|
*
|
The initial permit fee for a cannabis consumption area issued
to a standard cannabis retailer is $2,500 and to a microbusiness retailer
is $250.
|
(b)
Applicants must submit payment of the total amount of applicable
administrative and permit fees with their initial cannabis permit
application, and any amended cannabis permit application, in the manner
prescribed by the Board. No fees will be refunded in the event the
applicant is not issued a permit or a cannabis consumption area endorsement.
F.
Weighted criteria and bonus points. The Board shall establish weighted
criteria for the purpose of reviewing and scoring all local support
applications and cannabis permit applications, which shall include
consideration of the design and layout of the premises and the applicants'
experience, business plan, safety plan, community impact plan, workforce
development plan, social responsibility statement and nuisance mitigation
plans. Additionally, the Board shall award bonus points for applicants
qualifying as social equity and diversely owned businesses, as well
as those with site control and ties to the local community.
G.
Hours of operation; consumption.
(1)
Except for Class 4 distributors and Class 6 cannabis delivery services,
whose hours of operation are regulated by the CRC exclusively, Class
1, 2 and 3 cannabis businesses in the City may operate daily between
the hours 8:00 a.m. and 8:00 p.m. only. A Class 5 retailer may operate
Sunday through Wednesday between the hours of 10:00 a.m. and 10:00
p.m. only and Thursday through Saturday between the hours of 10:00
a.m. and 11:59 p.m. only.
(2)
A Class 5 retailer with a cannabis consumption area endorsement may
only allow consumption of cannabis items on the premises during hours
of retail operation.
(3)
A cannabis consumption area may not remain open after the retailer
has closed the retail area of the premises for the day.
H.
Sale and on-site consumption to certain persons prohibited.
(1)
No cannabis retailer or cannabis delivery service authorized under
this chapter shall sell or deliver or permit or suffer the sale or
delivery of any cannabis item, directly or indirectly, to any individual
under the legal age to purchase or consume cannabis items.
(2)
No cannabis retailer with a consumption area shall allow, permit
or suffer the consumption of any cannabis item by any individual under
the legal age to purchase or consume cannabis items in or upon the
cannabis consumption area.
(3)
The cannabis business shall be strictly liable for any violations
of this provision and subject to penalties and fines, including suspension
or revocation of their permit.
I.
Number of permits limited.
(1)
The total number of permits to be issued by the City per type and
class of operation shall be as follows:
|
Permit Class
|
Maximum Standard Permits
|
Maximum Microbusiness Permits
|
|---|---|---|
|
Class 1 Cultivation
|
2
|
2
|
|
Class 2 Manufacturer
|
2
|
2
|
|
Class 3 Wholesaler
|
2
|
2
|
|
Class 4 Distributor
|
1
|
1
|
|
Class 5 Retailer (with or without a cannabis consumption area)
|
6
|
6
|
|
Class 6 Delivery
|
3
|
3
|
J.
Permit terms; renewals; and transfers.
(1)
Any permit 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. The Board may adjust the renewal
date of the permit to correlate with applicant's annual license
renewal schedule.
(2)
Renewal of any Permit shall be governed by any amendments to the
CRC Rules, the East Orange Municipal Code, and any additional restrictions
set forth by the Board since the previous permit was issued or renewed.
(3)
A request to transfer ownership of any permit shall first require
CRC approval followed by delivery to the Board of documentary proof
that the new owner(s) meets all state and City requirements for ownership
of a cannabis business in the form and manner prescribed by the Board,
and payment of applicable fees as established by the Board.
(4)
A request to transfer the location of any permit or a modification
to expand the existing operations of a cannabis business within the
City shall first require CRC approval followed by a zoning determination
letter, site plan approvals, and payment of applicable fees as established
by the Board.
K.
Permit renewal fees.
(1)
The annual permit renewal fees for cannabis business permits under
the provisions of this chapter (each an "annual permit renewal fee")
shall be as follows:
|
Permit Class
|
Standard Permit
|
Microbusiness Permit
| |
|---|---|---|---|
|
1.
|
Cultivator
|
Up to $25,000
|
$2,500
|
|
2.
|
Manufacturer
|
Up to $15,000
|
$1,500
|
|
3.
|
Wholesaler
|
$5,000
|
$500
|
|
4.
|
Distributor
|
$2,000
|
$200
|
|
5.
|
Retailer
|
$5,000
|
$500
|
|
6.
|
Delivery
|
$2,000
|
$200
|
(2)
The annual endorsement renewal fee for a cannabis consumption area
issued to a standard retailer is $5,000 and to a microbusiness retailer
is $500.
L.
Investigations; sanctions; penalties.
(1)
Any permit issued pursuant to this chapter may be suspended or revoked
by the Board for any violation of any provision of this chapter or
for the violation of any provision of N.J.S.A. 24:6I-31 et seq., including
amendments or additions thereto, or of any of the rules and regulations
promulgated by the CRC or the Board.
(2)
Investigations. Procedures for investigation of permit violations
and for suspension, revocation, or other sanctions as a result of
any such violation shall be as set forth by the Board. Penalties for
such violations shall be assessed as follows:
(3)
Summary suspension. Notwithstanding the foregoing section, when the
Board has reasonable grounds to believe that a cannabis business 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 Board may
enter a summary suspension order for the immediate suspension of such
cannabis business's permit pending further investigation. The
Board shall convene a review panel consisting of the Board, 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.
The review panel is authorized to impose any fines, conditions, restrictions,
suspensions, or a combination thereof, authorized by the state. In
the absence of state-specified penalties, the City may issue fines
starting at $1,000 per offense and/or suspension of the permit.
(4)
Inactive permits. Following the commencement of retail sales of cannabis
and cannabis products, the Board may suspend or revoke any permit
if the premises have been inactive or unoccupied by the cannabis business
for at least six months.
(5)
State license. The Board shall suspend or revoke any permit if the
corresponding state license for the subject location is expired, surrendered,
suspended, or revoked.
(6)
Any action taken by the Board pursuant to this section shall be reported
to the CRC in accordance with reporting protocols established by the
CRC.
M.
Conspicuous posting of permit. The holder of each permit issued by
the Board under this chapter of the Municipal Code of East Orange
shall display the permit certificate conspicuously in the cannabis
business.
N.
Changes or alterations to premises. No cannabis business under this
chapter shall make, cause to be made, or permit any addition to, alteration
of, or other change in the physical structure of the premises without
first having submitted to the Board plans and specifications for such
addition, alteration or change in the physical structure of the premises
and having first obtained the written approval thereof from the Planning
Board of Adjustment and the Board.
B.
General provisions.
(1)
Odor. All cannabis businesses shall adhere to City regulations regarding
odor and have the equipment to mitigate cannabis-related odor in accordance
with the Clean Air Act.[1] Buildings and vehicles shall be equipped with ventilation
systems with carbon filters sufficient in type and capacity to eliminate
cannabis odors emanating from their interior. Carbon filters are required
to be replaced regularly for the best effectiveness to mitigate odor.
[1]
Editor's Note: See 42 U.S.C. § 7401 et seq.
(2)
Noise. All cannabis businesses shall adhere to City regulations regarding
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.
(3)
Capacity. All cannabis businesses shall adhere to City regulations
regarding capacity. A maximum of 25 patrons per 1,000 square feet
of gross floor area shall be permitted. Floor area that is not accessible
to customers shall not be included in the calculation of maximum capacity.
(4)
Parking. All cannabis businesses shall adhere to City regulations
regarding parking. Cannabis cultivators and cannabis manufacturers
shall have one parking space for every two employees on peak shift
but not less than one parking space per 2,000 square feet of floor
area. Cannabis wholesalers, cannabis distributors and cannabis delivery
services shall have one parking space for every two employees on peak
shift but not less than one parking space per 5,000 square feet of
floor area. Cannabis retailers shall have one parking space for every
500 square feet of floor area. Cannabis retailers shall not be required
to have parking to the extent they are in the Central Business District.
(5)
Loading. All cannabis businesses shall adhere to City regulations
regarding loading. Cannabis cultivators and cannabis manufacturers
shall have one loading space for every two employees on peak shift
but not less than one loading space per 10,000 square feet of floor
area. Cannabis wholesalers, cannabis distributors and cannabis delivery
services shall have one loading space for every 7,500 square feet
of floor area. Cannabis retailers shall have one loading space for
every 500 square feet of floor area.
(6)
Signage. All cannabis businesses shall adhere to City regulations
regarding signage. Cannabis businesses shall be permitted one sign
outside of the premises, which may not include the following words:
"weed," "pot," "marijuana," "cannabis," "ganja," "dope," or the like.
Outdoor signs shall not depict any image, symbol, logo, shape, or
any other image of cannabis, cannabis paraphernalia, smoke, or anything
other conspicuous image or symbol that could be interpreted as cannabis
or a cannabis product. Initial signage and any subsequent changes
made thereto must be approved by the BCC.
(7)
Operational controls. Cannabis and cannabis products cannot be displayed
on any window or door facing a public right-of-way or street. No cannabis
business shall operate in the same building or on the same lot as
a residential building. All cannabis and cannabis products must be
stored on-site and indoors in secure locations. Disposal of cannabis
and cannabis products must be performed in accordance with a City-approved
waste management plan.
(8)
Security. All cannabis businesses shall be secured in accordance
with the Act and the CRC Rules and shall have a round-the-clock video
surveillance system, 365 days a year. A minimum of one licensed, armed
security guard shall be present during all hours of operation. Said
security guard shall screen all patrons to ensure they are a minimum
age of 21 years old and monitor capacity.
(9)
Hours of operation. Unless provided otherwise in this chapter, or
under any other provision of the Municipal Code of East Orange regulating
the sale and consumption of cannabis and cannabis products, the standard
operating hours of cannabis businesses are between the hours of 8:00
a.m. and 8:00 p.m., seven days per week.
(10)
Separation distances. No cannabis establishment shall be within
625 feet of another or within 100 feet of a day care, elementary school
or high school, as measured from the main entrance of each establishment.
C.
Zoning districts.
(1)
Cannabis cultivators, cannabis manufacturers, and cannabis wholesalers
and cannabis distributors, whether microbusinesses or standard cannabis
businesses, shall be permitted uses in Industrial (IND) and Mixed
Industrial/Commercial (IND-1) Zoning Districts, provided that:
(a)
All cannabis businesses are required to comply with the general
provisions of this section;
(b)
Outdoor cultivation is not permitted within 30 feet of any property
line;
(c)
Cannabis cultivators and cannabis manufacturers shall comport
with all regulations relating to manufacturing uses;
(d)
Cannabis manufacturers shall prove that proper and adequate
conditions and safeguards are provided to mitigate any detrimental
impacts to the public health, safety or general welfare of nearby
residential uses;
(e)
Cannabis wholesalers and cannabis distributors shall comport
with all regulations relating to warehousing uses;
(f)
If a zone does not include the land use categories listed above,
the most restrictive regulations or standards of that particular zone
shall apply to that cannabis business.
(2)
Cannabis retailers and cannabis delivery services, whether microbusinesses
or standard cannabis businesses, shall be permitted uses in Industrial
(IND) and Mixed Industrial/Commercial (IND-1), Central business (CBD),
Central Avenue Commercial (CAC), Arts and Cultural (ACD) and Commercial
Zone (C2), and (as depicted on the attached cannabis Location Area
Map,[2] provided that there shall not be more than two cannabis
retailers, whether microbusinesses or standard cannabis businesses,
within 625 feet of each other as measured from the main entrance of
each establishment. Cannabis retailers and cannabis delivery services
shall also be permitted uses in the following designated areas:
(a)
Central Avenue and South Street: Block 23, Lot 3; and Block
10, Lot 1;
(b)
Sussex Plaza: Block 41, Lots 1 and 2;
(c)
4th Avenue: Block 70, Lots 22, 23 and 24;
(d)
Ampere Parkway: Block 80, Lots 1.02 and 2.01; Block 94, Lot
17; Block 96, Lots 1 and 7; and Block 97, Lot 3;
(e)
Hoffman Boulevard: Block 110, Lots, 7, 8, 8.01, 8.02, 9, 9.01,
9.02, 9.03, 9.04, 9.05, 9.06, 9.07, 9.08, 9.09, 9.10, 9.11, 9.12,
10, 11, 12 and 12.01; and Block 112, Lot 4;
(f)
Dodd Street: Block 600, Lots 1 and 2; Block 612, Lot 8; Block
860, Lots 1, 3, 4, 4.02, 5, 6, 7, 8, 9, 10, 11 and 12; Block 861,
Lots 2, 3, 4, 5, 6, 7, 8, 9, 10.01, 10.02, 10.03, 10.04, 11, 11.01
and 12; Block 870, Lots 1.01, 2, 3, 4, 5, 6, 7, 7.03 and 7.06; and
Block 880, Lots 1 and 47;
(g)
North Park Street: Block 821, Lots 13, 37, and 39; Block 822,
Lot 40; Block 921, Lots 11, 12, 12.01, 13, and 14.01;
(h)
North Harrison Street: Block 684, Lot 4; and Block 686, Lots
2, 4, 5 and 8.01; and
(i)
Williams Street: Block 540, Lots 2 and 33; and Block 544, Lots
1.20, 2, 3, 4 and 17.
[2]
Editor's Note: Said map is on file in the City offices.
(3)
A maximum of 30 patrons per 1,500 square feet of gross floor area
shall be permitted in any cannabis retailer cannabis establishment.
Floor area that is not accessible to customers shall not be included
in the gross floor area for purposes of this calculation.
(4)
Cannabis consumption areas are permitted uses or conditional uses, in accordance with the uses set forth in Subsection C(2) above for cannabis retailers, whether microbusinesses or standard cannabis businesses, as regulated herein:
(a)
Compliance with applicable requirements for cannabis retailers,
whether microbusinesses or standard cannabis businesses, except that
the following conditions shall supplement or supersede.
(b)
An applicant must have a cannabis retailer license issued by
the state and a cannabis retailer permit issued by the City, or is
concurrently seeking approval as a cannabis retailer, microbusiness
or standard cannabis business permit.
(c)
Standards for indoor cannabis consumption areas:
[1]
An indoor cannabis consumption area shall be a structurally
enclosed area within a retail establishment that is separated by solid
walls or windows from the area in which retail sales of cannabis items
occur, shall only be accessible through an interior door after first
entering the retailer, and shall comply with all ventilation requirements
applicable to cigar lounges, as that term is defined in N.J.S.A. 26:3D-57,
in order to permit indoor smoking, vaping, or aerosolizing that is
the equivalent of smoking tobacco not in violation of the New Jersey
Smoke-Free Air Act, N.J.S.A. 26:3D-55 et seq.
[2]
Outdoor cannabis consumption areas are not permitted under this
chapter.
