Hoboken
NJ

CC - Ordinance

An Ordinance to Amend and Supplement Chapters 196 “Zoning” and 128 “Licenses” of the Code of the City of Hoboken Establishing Land Use Regulations and Licensing Requirements for Marijuana Establishments

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Department:Community DevelopmentSponsors:
Category:Amendment

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WHEREAS, the City Council wishes to create land use regulations and licensing requirement for marijuana establishments that also protect the health, safety, and general welfare of the community; and

 

WHEREAS, in light of recent statements from Governor Murphy and the number of pending bills before the New Jersey State Legislature that would expand licensing for medical marijuana dispensaries, and make way for the eventual legalization of recreational marijuana, it is in the best interest of the City of Hoboken to be proactive in establishing such local land use regulations and licensing requirements for marijuana establishments before the adoption of new State laws and ahead of the arrival of such businesses in Hoboken.

 

NOW, THEREFORE, THE MAYOR AND COUNCIL OF THE CITY OF HOBOKEN DOES HEREBY ORDAIN AS FOLLOWS:

 

SECTION ONE: AMENDMENT

 

Chapters 196 “Zoning” of the Code of the City of Hoboken shall be amended as follows; additions to the current ordinance are noted in underline.

 

CHAPTER 196 - ZONING

 

ARTICLE II   Definitions

 

CITY – The City of Hoboken, Hudson County, State of New Jersey.

 

LABORITORY – Facilities designed specifically for controlled experimentation and research.  Such facilities may require accurate temperature and humidity control, dust control, and clean power, but do not generate or store environmentally hazardous waste.

 

MARIJUANA ESTABLISHMENT – An umbrella term that encompasses all facilities used for and/or associated with legal marijuana, including but not limited to, medical marijuana dispensaries, retail marijuana stores, marijuana-infused products manufacturing facilities, marijuana cultivation facilities, marijuana testing facilities, and/or marijuana storage facilities.

 

STATE – The State of New Jersey.

 

USE-BY-REVIEW – A use that is permitted to occupy real property within the designated zone district but is subject to review by a land use board, a public hearing and site plan approval.

 

USE-BY-RIGHT – A use that is permitted to occupy real property within a designated zone district upon obtaining a Certificate of Zoning Compliance; a principal permitted use. Formal land use board approval is not required.

 

 

ARTICLE VI   Schedule II: Industrial Districts

 

§ 196-17 I-1 District; I-1 (W) Subdistrict.

 

B.              Principal permitted uses shall be as follows:

 

(1)      I-1 District:

 

(a)      Manufacturing, processing, producing or fabricating operations which meet the performance standards set forth in Article XII, provided that all operations and activities, except parking, are carried on within enclosed buildings and that there is no outside storage of materials, equipment or refuse.

(b)      Office buildings.

(c)      Research laboratories.

(d)      Warehouses and related office buildings.

(e)      Essential utility and public services.

(f)       Wireless telecommunications towers subject to §§ 196-26 and 196-35.

(g)      Marijuana establishments subject to § 196-33.1 and prior approval of a State of New Jersey Marijuana License.

 

(2)      I-1(W) Subdistrict:

 

(a)      Manufacturing, processing, producing or fabricating operations which meet the performance standards set forth in Article XII, provided that all operations and activities, except parking, are carried on within enclosed buildings and that there is no outside storage of materials, equipment or refuse.

(b)      Office buildings.

(c)      Research laboratories.

(d)      Planned unit development, per § 196-27.1.

(e)      Marijuana establishments subject to § 196-33.1 and prior approval of a State of New Jersey Marijuana License.

 

 

§ 196-18 I-2 District.

 

B.              Principal permitted uses shall be as follows:

 

(1)      Food processing and related storage and distributive activities.

(2)      Manufacturing, processing or fabricating operations which meet the performance standards set forth in Article XII, provided that all operations and activities are carried on within enclosed buildings and that there is no outside storage of materials.

(3)      Retail business or service.

(4)      Public buildings and uses, such as equipment garages, parking facilities, parks and playgrounds.

(5)      Wireless telecommunications towers subject to §§ 196-26 and 196-35.

(6)      Research laboratories.

(7)      Marijuana establishments subject to § 196-33.1 and prior approval of a State of New Jersey Marijuana License.

 

 

ARTICLE VII   Schedule III: Review Districts

 

§ 196-19 CBD District; CBD(H) Subdistrict; CBD(H)(CS) Subdistrict.

 

B.              Principal permitted uses shall be as follows:

 

(1)      Commercial recreation.

(2)      Instructional use.

(3)      Office buildings.

(4)      Offices, including studios and clinics.

(5)      Hotels and motels.

(6)      Public buildings and uses, including governmental buildings, administrative offices, parks and plazas.

(7)      Residential buildings.

(8)      Restaurants and bars.

(9)      Retail business or service.

(10)  Medical marijuana dispensaries and retail marijuana stores subject to § 196-33.1 and prior approval of a State of New Jersey Marijuana License.

 

C.              Accessory uses.

 

(1)      Signs. See § 196-31.

(2)      Accessory garages.

(3)      Home occupations.

(4)      Other uses customarily incident to principal permitted uses and on the same lot.

(5)      Wireless telecommunications antennas subject to §§ 196-26 and 196-35.

(6)      Marijuana cultivation operations and facilities accessory to a licensed marijuana dispensary or retail marijuana store and located on the same lot with prior approval of a State of New Jersey Marijuana License.

 

 

ARTICLE IX   General Supplementary Regulations

 

§ 196-33.1.  Marijuana Establishments.

 

A.        Marijuana Establishments; General.

(1)      The regulations of this Ordinance are subject to the enabling authority of the State of New Jersey and are subject to compliance with all statutes and/or regulations adopted by the State of New Jersey or its instrumentalities.  If any provision of this Ordinance is inconsistent with the statutes and/or regulations of the State of New Jersey, the State statutes and/or regulations shall prevail.

 

(2)      Prior to the operation of any Marijuana Establishment, including but not limited to, a medical marijuana dispensary, a retail marijuana store, a marijuana-infused products manufacturing facility, a marijuana cultivation facility, a marijuana testing facility, and/or a marijuana storage facility, a license must be obtained from the State of New Jersey and from the City of Hoboken.

 

(3)      Site plan approval must be obtained from the City of Hoboken Planning Board, or Board of Adjustment as the case may be, and a Certificate of Zoning Compliance must be issued by the Zoning Officer.  To protect the public health, safety, and general welfare, and to prevent economic stagnation, site plan approval for marijuana-related uses shall expire after the period of vested rights as proscribed in the Municipal Land Use Law (N.J.S.A. 40:55D et seq.) unless extended by approval of the board of jurisdiction.  The Certificate of Zoning Compliance issued by the Zoning Officer shall expire 6 months from the date of issuance if an application for licensure has not been submitted to the City’s licensing authority.

 

(4)      Uses established pursuant to this Section shall, at all times, be in complete compliance with the terms and conditions of its marijuana establishment license for licenses issued by the State of New Jersey and the City of Hoboken.

 

(5)      No marijuana establishment shall be allowed as a Home Occupation as defined in Article II of this Chapter.

 

(6)      No marijuana establishment shall be housed in a vehicle or any movable or mobile structure.

 

(7)      Performance Standards

 

(a)      General.  Standards and guidelines set forth in this section shall supersede for purposes of regulating Marijuana Establishments.  Where bulk regulations, parking requirements, or other provisions of the Zoning Code are not specifically stated, the underlying Zoning standards and guidelines shall prevail.

 

(b)      Odor.  Marijuana Establishments shall have equipment to mitigate odor.  The building shall be equipped with a ventilation system with carbon filters sufficient in type and capacity to eliminate marijuana odors emanating from the interior of the premises.  The carbon filters are required to be replaced regularly for the best effectiveness to mitigate odor.  The ventilation system must be approved by the City of Hoboken Health Department and Building Department and may be subject to periodic inspection.

 

(c)      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.  [See also, Chapter 133 Noise Control.]

 

(d)      Lighting.  To prevent excessive light pollution, glare, and light trespass on any public way or onto adjoining property, greenhouses and buildings engaged in cultivation and/or manufacturing, shall have internal shielding (such as blackout curtains) for walls and roof.  Proof of wall and roof shielding shall be submitted for land use board approval at the time of site plan application.

 

(e)      Security.  All facilities associated with marijuana sales, manufacturing, cultivation, testing, and transportation shall be secured and shall have around-the-clock security monitoring, 365 days a year.  Security protocols shall be submitted to the Hoboken Police Department for compliance review with all safety and security standards established by the State of New Jersey for Marijuana Establishments.  The Hoboken Police Department may, at their discretion upon review of the proposed location, recommend or require additional safety and security measures.

 

(8)      Prohibited uses.  Except as are expressly permitted under the terms of this Section, medical marijuana dispensaries, retail marijuana stores, marijuana-infused products manufacturers, marijuana cultivation operations, marijuana testing facilities, marijuana storage and distribution operations, as well as any other activity involved in the cultivation, testing and distribution or sale of marijuana or marijuana infused products, are expressly prohibited as land uses in the City of Hoboken.

 

(9)      Suspension of use.  If the licensed premises have been inactive or unoccupied by the licensee for at least 6 months, and the license is revoked by the Director of Health and Human Services pursuant to §128-11.C of the Code of the City of Hoboken, the use approval for said premises shall be suspended.  The Zoning Officer shall issue a notice of suspension to the licensee and to the owner of the property.  Any subsequent application for use or occupancy of the premises as a marijuana establishment, including re-occupation by the previous licensee, shall be referred to the original board of jurisdiction for modification or extension of the board’s approval.

 

B.        Medical Marijuana Dispensaries and Retail Marijuana Stores.

 

(1)      Permitted Zone District.  Medical marijuana dispensaries and retail marijuana stores are only permitted in commercial and industrial zone districts as a use-by-review, requiring a public hearing and site plan approval by the City of Hoboken Planning Board subject to the guidelines set forth herein.  Medical marijuana dispensaries and retail marijuana stores are not permitted in residential zone districts, except as a use variance subject to Board of Adjustment approval.

 

(2)      Definition.  A medical marijuana dispensary or retail marijuana store, for purposes of this Section, shall mean any facility so licensed by the State of New Jersey and the City of Hoboken to distribute, supply, sell or dispense marijuana in any form, derivative products, and related supplies.

 

(3)      Location.

 

(a)      One medical marijuana dispensary or retail marijuana store shall be allowed per zone district where the use is permitted.

 

(b)      For safety and security reasons, medical marijuana dispensaries and/or retail marijuana stores shall only be located on the ground floor (i.e. street-level) of the building in which they are located.  They shall be accessible directly from the right-of-way through a separate retail entrance; independent from any other retail or residential ingress to the building.  Only secondary safety egress may be via a shared or common area.

 

(4)      Hours or operation.  It shall be unlawful for any person to sell marijuana or marijuana products at a licensed marijuana dispensary or retail marijuana store at any time other than between the hours of 8:00 a.m. and 10:00 p.m. daily.

 

C.       Marijuana-Infused Products Manufacturing.

 

(1)      Permitted Zone District.  Marijuana-infused products manufacturing is only permitted in industrial zone districts as a use-by-right if the facility is less than 3,000 square feet and no open blast butane extraction method is allowed; or otherwise, as a use-by-review requiring a public hearing and site plan approval by the City of Hoboken Planning Board, subject to the guidelines set forth herein.

 

(2)      Definition.  Marijuana-infused products manufacturing shall include, but is not limited to, any operation engaged in the production of edibles, infusions, oils, tinctures or any other such product containing derivative components of the marijuana plant.

 

D.       Marijuana Cultivation Operations and Facilities.

 

(1)      Permitted Zone Districts.  Marijuana cultivation is only permitted in commercial zone districts when accessory to a licensed medical marijuana dispensary or retail marijuana store and located on the same lot; or in industrial zones as a use-by-review requiring a public hearing and site plan approval by the City of Hoboken Planning Board, subject to the guidelines set forth herein.

 

(2)      Definition.  Marijuana cultivation operations and facilities, shall include, but are not limited to, locations where marijuana is planted, grown, harvested, processed and/or packaged for sale or distribution.

 

(3)      Location.  Marijuana cultivation operations and facilities shall be located within a greenhouse, building, or other fully enclosed structure.  Cultivation operations shall not be conducted on open land or on an unenclosed rooftop.

 

E.        Marijuana Testing Facilities.

 

(1)      Permitted Zone District.  Marijuana testing facilities are permitted in any zone districts where, at the time of application for the license, land use denominates laboratory, research, development, and technological services as permitted uses.  Such facilities are permitted as a use-by-right if the testing facility is less than 3,000 square feet and is accessory to an approved manufacturing or cultivation operation; or as a use-by-review if the testing facility is 3,000 square feet or more, or if the testing facility is independently operated without direct association with an approved manufacturing or cultivation operation.

 

(2)      Definition.  A marijuana testing facility is a controlled environment such as a laboratory or research facility engaged in experimentation, research, and the study of marijuana and its derivative components.  Such facility may also be engaged in the development and testing of new products but is not in any way engaged in the sale or distribution of such products.

 

(3)      Location.  Marijuana testing facilities are permitted wherever Research Laboratories are a permitted use.

 

F.        Off-site Marijuana and Marijuana Product Storage.

 

(1)      Permitted Zone District.  Off-site storage of marijuana or marijuana products shall be permitted in any zone district where, at the time of application, warehouses and storage facilities are a principal permitted use. 

 

(2)      Off-site storage facilities, located in the City of Hoboken, shall be licensed only when directly associated with an existing Hoboken-licensed medical marijuana dispensary, retail marijuana store, marijuana-infused products manufacturer, or marijuana cultivation operation.  Such off-site facilities shall be approved as an expansion of premises amended to the primary license and shall be subject to the same rules and regulations as the primary licensed premises.

 

(3)      The off-site storage facility may only be used for storage of finished goods inventory.  It shall be unlawful to open sealed packages or containers on the storage premises, or to re-package marijuana or marijuana products on the storage premises.

 

 

SECTION TWO: AMENDMENT

 

Chapters 128 “Licenses” of the Code of the City of Hoboken shall be amended as follows; additions to the current ordinance are noted in underline.

 

CHAPTER 128 – LICENSES

 

ARTICLE I   General Business and Vital Statistics Licensing Procedures and Fees

 

§ 128-9.  Reserved.

 

 

ARTICLE II   Marijuana Licensing

 

§ 128-10.  Licensing.

A.        Local licensing authority.

 

(1)      The regulations of this Ordinance are subject to the enabling authority of the State of New Jersey and are subject to compliance with all statutes and/or regulations adopted by the State of New Jersey or its instrumentalities.  If any provision of this Ordinance is inconsistent with the statutes and/or regulations of the State of New Jersey, the State statutes and/or regulations shall prevail.

 

(2)      The City of Hoboken Director of Health and Human Services (“Director”) is hereby designated to act as the local licensing authority for the City for all marijuana establishments.  Under all circumstances in which State law requires communication to the City by the State licensing authority or any other State agency with regard to the licensing of marijuana establishments by the State, or in which State law requires any review or approval by the City of any action taken by the State licensing authority, the exclusive authority for receiving such communications and granting such approvals shall be exercised by the Director.

 

(3)      Under no circumstances shall the Director receive or act upon any application for local licensing of a marijuana establishment where the State has failed to issue a license.  It is the intent of this Chapter that no marijuana establishment may lawfully exist in the City of Hoboken absent the issuance of a State license and full regulatory oversight of the marijuana establishment by the State licensing authority as well as the City.

 

(4)      Under no circumstances shall the Director receive or act upon any application for local licensing of a marijuana establishment unless or until the applicant has obtained site plan approval from a City of Hoboken land use board; and a Certificate of Zoning Compliance has been issued by the Zoning Officer.  The Director shall not receive or act upon any application for licensing if the if the Certificate of Zoning Compliance is more than 6 months old.

 

B.        Classification of licenses.  The City of Hoboken, at its discretion, and subject to Land Use approval and State licensure, may issue the following municipal licenses to operate a marijuana establishment:

Class I: Marijuana dispensary or retail store license

Class II: Marijuana manufacturing license

Class III: Marijuana cultivation license

Class IV: Marijuana testing license

Class V: Marijuana storage and transportation license

 

C.        Cap on the number of Class I licenses.  Effective November 1, 2018, the maximum number of marijuana dispensary and/or retail store licenses issued by the City of Hoboken for operation within the municipal boundaries of the City of Hoboken shall not exceed 3.  A person holding multiple licenses, including a Class I license, shall be counted first as a Class I licensee.

 

D.       Application.  Persons wishing to obtain any classification of marijuana license shall file a license application with the Director, on a standardized form established by the Director and available in the Director’s office and on the City’s website.  An application shall be deemed incomplete, and shall not be processed by the Director, until all documents and application fees are submitted.  To be deemed complete, all applications shall be accompanied by the following:

 

(1)      The applicant shall submit proof of prior approval by the State licensing authority for the marijuana establishment in question.  The classification of local Hoboken license applied for shall be the same use or uses licensed by the State.

 

(2)      The applicant shall submit proof that the applicant has or will have lawful possession of the premises propose for the marijuana establishment, which proof may consist of: a deed, a lease, a real estate contract contingent upon successful licensing, or a letter of intent by the owner of the premises indicating an intent to lease the premises to the entrant contingent upon successful licensing.

 

(3)      The applicant shall submit an affidavit and documentary proof of compliance with all State and Local laws regarding affirmative action, anti-discrimination and fair employment practices.  The applicant shall also certify under oath that they will not and shall not discriminate based on race, color, religion (creed), gender, gender expression, age, national origin (ancestry), disability, marital status, sexual orientation, or military status, in any of its activities or operations.  Violation of this statute shall be grounds for suspension or revocation of license at the sole discretion of the City.

 

(4)      The location proposed for licensing by the applicant shall comply with all applicable city zoning laws and the location restrictions set forth in this Chapter.

 

(5)      The applicant shall submit, to the satisfaction of the Director, proof of financial capability to open and operate the marijuana establishment for which the applicant is seeking a license.  Standards for proof of financial capability shall be determined by the Director and adopted by rule or regulation.

 

(6)      The applicant shall submit all application fees required in accordance with the following annual fee schedule:

Class I: Marijuana dispensary or retail store license…$ 15,000.

Class II: Marijuana manufacturing license…$ 10,000.

Class III: Marijuana cultivation license…$ .25/sq. ft.

Class IV: Marijuana testing license…$ 5000.

Class V: Marijuana off-site storage facility…$ 2,500.

 

(7)      In addition to complying with any other state or City requirement related to good character and criminal background, any person proposed to have an ownership interest in the license shall not have committed any marijuana licensing violation affecting public safety, as defined in the rules and regulations of the State or local marijuana business license in the preceding year.

 

(8)      The applicant and the application shall otherwise comply with any, and all qualification standards set forth in the State and City laws or regulations.

 

E.        Term of license and license renewals.

 

(1)      Any local license issued pursuant to this Chapter shall be valid for a period of 1 year from the date of issuance.

 

(2)      The Director may, at his/her discretion, adjust the annual renewal date of the local license to correlate with an applicant’s State licensing and renewal schedule.

 

(3)      Renewal of any license shall be governed by any code amendments, additional restrictions or changes in regulations adopted since the previous license was issued or renewed.

 

(4)      Transfer of ownership of any local license or change of location of any license or modification to expand a licensed premise shall be treated as a new application, subject to City Planning review and Zoning approval as set forth in this Chapter.

 

(5)      If the licensee has received notice of violation of any law or regulation, including disciplinary action against any past or current marijuana license, the applicant for renewal shall include a copy of the notice or disciplinary action with their application.

 

(6)      Except where the Director has received a complete renewal application along with the requisite fees, and has issued a license renewal, it shall be unlawful for any person to manufacture, sell, distribute, transfer, transport, or otherwise remove marijuana or marijuana products from the premises of any license after the expiration date recorded on the face of the license.

 

§ 128-11.  Disciplinary Actions; Sanctions; Penalties.

 

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

 

(1)      First offense: $500 per violation per day;

 

(2)      Second offense: $1,000 per violation per day;

 

(3)      Third violation shall result in summary suspension.

 

B.        Summary suspension.  When the Director has reasonable grounds to believe that a licensee has engaged in deliberate and willful violation of any applicable law or regulation, or that the public health, safety, and/or general welfare has been jeopardized and requires emergency action, the Director may enter a summary suspension order for the immediate suspension of such license pending further investigation.

 

(1)      The summary suspension order shall be in writing and shall State the reasons therefore.

 

(2)      The Director shall convene a review panel consisting of the Director, a second Director or administrative officer designated by the Mayor, and the Chair of the Hoboken Planning Board or his or her designee.  The hearing shall be scheduled within 30 days of the date of the order.  The hearing shall be open to the public and shall be legally noticed as a public hearing in accordance with the Open Public Meetings Act.

 

(3)      The review panel is authorized to impose any fines, conditions, restrictions, suspensions, or combination thereof authorized by the State of New Jersey.  In the absence of State specified penalties, the City may issue fines up to, but not to exceed, $2,500 per offense and/or suspension of license for a period not to exceed 6 months.

 

C.        Inactive licenses.  The Director may suspend or revoke any license if the licensed premises have been inactive or unoccupied by the licensee for at least 6 months.

 

D.       State license.  The Director may suspend or revoke any license if the corresponding State license for the subject location is expired, surrendered, suspended, or revoked.

 

E.        Off-premises storage.  A licensed marijuana off-premises storage facility shall constitute an extension of the licensed premises of the corresponding marijuana establishment.  All off-premises storage licenses shall be deemed surrendered, suspended or revoked if the corresponding marijuana establishment license is expired, surrendered, suspended, or revoked.

 

SECTION THREE: REPEAL OF INCONSISTENT PROVISIONS

 

All ordinances or parts thereof in conflict or inconsistent with this Ordinance are hereby repealed, but only to the extent of such conflict or inconsistency, it being the legislative intent that all such ordinances or part of ordinances now existing or in effect unless the same are in conflict or inconsistent with any provision of this Ordinance shall remain in effect.

 

SECTION FOUR: SEVERABILITY

 

The provisions of this Ordinance are declared to be severable and if any section, subsection, sentence, clause or phrase thereof for any reason be held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining sections, subsections, sentences, clauses and phrases of this Ordinance, but shall remaining in effect; it being the legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part.

 

SECTION FIVE: EFFECTIVE DATE

 

This Ordinance shall take effect upon passage and publication as provided by law.

 

SECTION SIX: CODIFICATION

 

This ordinance shall be a part of the Code of the City of Hoboken as though codified and fully set forth therein. The City Clerk shall have this ordinance codified and incorporated in the official copies of the Code.

The City Clerk and the Corporation Counsel are authorized and directed to change any Chapter, Article and/or Section number of the Code of the City of Hoboken in the event that the codification of this Ordinance reveals that there is a conflict between the numbers and the existing Code, and in order to avoid confusion and possible accidental repealers of existing provisions not intended to be repealed.

 

 

Meeting History

Oct 17, 2018 7:00 PM  City Council Regular Meeting
draft Draft

***CARRIED TO THE NOVEMBER 7, 2018 COUNCIL MEETING***

RESULT:TABLEDNext: 12/5/2018 7:00 PM