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AN ORDINANCE AMENDING TITLE VIII, BUSINESSES AND OCCUPATIONS, OF THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY, 2000, AS AMENDED AND SUPPLEMENTED, CHAPTER 39, SMOKE SHOPS, BY AMENDING RULES AND REGULATIONS.
Deferred 6PSF-d 100125
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WHEREAS, the City of Newark adopted ordinance 6PSF-c on April 10, 2024 establishing Rules and Regulations for local businesses categorized as Smoke Shop Establishments; and
WHEREAS, the City of Newark currently licenses and regulates smoke shops and other retail business establishments pursuant to Chapter 8:36 whereby these business establishments are licensed and regulated in the same manner as all other retail business establishments in the City of Newark; and
WHEREAS, the City of Newark believes that smoke shops and other retail business establishments whose business is dedicated to the display, sale distribution, delivery, offering, furnishing, or marketing of tobacco, tobacco products, tobacco paraphernalia should be licensed and regulated separate and apart from other retail business establishments; and
WHEREAS, the City of Newark seeks to establish a separate category for licensing and regulating smoke shops involved in the principal sale of tobacco, tobacco products, and tobacco paraphernalia in the City of Newark; and
WHEREAS, N.J.S.A. 40:48-2 authorizes a municipality to make, amend, repeal, and enforce such other ordinances, regulations, rules and by-laws not contrary to the laws of this state or of the United States, as it may deem necessary and proper for the good government, order and protection of persons and property, and for the preservation of the public health, safety and welfare of the municipality and its inhabitant.
NOW THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
Note: Additions are shown as underlined and bold. Deletions are shown as strikethroughs.
SECTION 1: Title VIII, Businesses and Occupations, Chapter 39, entitled “Smoke Shops” be amended as follows:
SMOKE SHOPS
8:39-1 DEFINITIONS.
HOOKAH means a pipe commonly, but not always, made of glass, used for vaporizing and smoking tobacco, flavored tobacco, non-flavored tobacco, shisha, dried fruits, cannabis or other substances in which vapor or smoke is passed through a water basin before inhalation.
HOOKAH BAR/LOUNGE means business establishments devoted primarily to the on-site sale or rental of shisha (hookah) and paraphernalia for consumption or use on the premises of alcoholic and/or nonalcoholic establishments.
LICENSEE means person(s) holding a City of Newark b Business and Smoke Shop license for the operation of a smoke shop.
SMOKING PARAPHERNALIA means any equipment, apparatus or furnishings that is used in or necessary for the activity of smoking. This includes, but is not limited to, ashtrays, rolling paper, pipes, hookah pipes, electronic vapor devices, electronic vapor inhalation substances, cigarettes, and cigars.
SMOKE SHOP means any premises dedicated to the display, sale distribution, delivery, offering, furnishing, or marketing of tobacco, tobacco products, tobacco paraphernalia including, but not limited to, providing an area for smoking tobacco products but excluding any grocery store, supermarket, convenience store or similar retail use that sale tobacco products shall not be included within the definition of smoke shop.
SMOKE SHOP LICENSE shall mean a license that is issued by the City of Newark Finance Department, Division of Tax Abatement and Special Taxes Office of Central Licenses and Permits allowing and permitting the operations of smoke shop establishments, and the sale of smoking paraphernalia which includes, but is not limited to, ashtrays, rolling paper, pipes, hookah pipes, electronic vapor devices, electronic vapor inhalation substances, cigarettes, cigars, etc.
8:39-2 GENERAL STANDARDS & SPECIFICATIONS.
Smoke Shop Establishments
a) All Smoke Shops shall be located within the designated C-2 and C-3 zones. Establishments located outside of the zoning classification shall not be permitted.
1. Shall not be located within:
a. Two hundred (200) feet from any public or non-public school, licensed child-care facility, park, church or playground, as measured in a straight line from the two (2) points of the property lines.
b. Two hundred (200) feet of the property line of any existing church or house of worship, as measured in a straight line form the nearest two (2) points of the property lines.
c. Two thousand five hundred (2,500) feet from another Smoke Shop establishment.
2. If location falls within a Special Improvement District;
a. Applicant must obtain approval from the Special Improvement District and submit same with application.
b) No person or business shall sell tobacco, electronic smoking devices, and/or products used to deliver nicotine without possessing the required state and municipal licensing.
c) No person shall sell or offer for sale tobacco, electronic smoking devices, and/or products used to deliver nicotine including, but not limited to, an electronic cigarette, cigar, cigarillo, pipe, and/or cartridges to any persons under the age of 21 years.
d) Establishments shall not be permitted to sell flavored electronic vapor devices.
e) Pursuant to N.J.A.C. 8:6, all acts of smoking in an indoor public place is strictly prohibited.
f) Pursuant to N.J.S.A. 54:40A-4.1, all licensed Smoke Shops (merchants) must post the required signage within the establishment, in a visible area with the following verbiage:
“A PERSON WHO SELLS OR OFFERS A TOBACCO PRODUCT TO A PERSON UNDER 21 YEARS OF AGE SHALL PAY A PENALTY OF UP TO $1,000 AND MAY BE SUBJECT TO A LICENSE SUSPENSION OR REVOCATION. PROOF OF AGE MAY BE REQUIRED FOR PURCHASE.”
g) No owner, operator, and/or attendant shall engage in the selling of Cannabis in any form without obtaining the required state and municipal licensing.
h) Establishments shall be permitted to sell hemp-derived cannabinoids including, but not limited to, CBD oil, capsules, gel, edibles (non-perishables), etc.
i) No business shall sell hemp-derived cannabinoids exceeding a THC (tetrahydrocannabinol) level of 0.3%.
j) All hemp-derived cannabinoids shall be appropriately packaged in pre-packaged containers, identified and labeled by the manufacturer. Labeling shall include:
1. Name, address, and telephone number of the manufacturer
2. Sequential serial number and barcode to identify batch
3. Serving size and the total number of servings
4. THC and CBD amount in milligrams and number of milligrams in a single serving size.
5. Net weight and quantity of the items contained in the package
6. Ingredients
7. Allergens
8. Nutritional content
9. Expiration Date and Manufacturing Date
10. Warning and caution statement
11. Proper use and storage instructions
k) Smoke Shop Establishments shall be open to public view from the public street or public thoroughfare. A full view of the interior of such premises from the public street or public thoroughfare shall not be obstructed by the use of nontransparent glass, or of any shade, blind, shutter, screen, partition, curtain or any other article placed within or without the establishment.
Hookah Bar/Lounge Establishments
a) Hookah Bars/ Lounges are prohibited within the City of Newark.
b) No establishment shall sell hookah and/or allow patrons to partake in the consumption of hookah on the premises.
8:39-3 LICENSE REQUIRED.
Any person (licensee) who owns or operates an establishment classified as a Smoke Shop and/or intends to participate in the offering of such services and associated products shall be required to file a Smoke Shop License application in addition to a Business License application with the Finance Department, Division of Tax Abatement and Special Taxes Office of Central Licensing and Permits. No person or business shall sell tobacco, electronic smoking devices, and/or products used to deliver nicotine without possessing the required state and municipal licensing. The appropriate licenses and fees to operate said establishment must be rendered to the municipality prior to operating lawfully in the City of Newark.
8:39-4 APPLICATION FOR LICENSE & TERM OF LICENSE.
a) Applications for licenses in accordance with the regulations for Smoke Shops shall be filed with the Finance Department, Division of Tax Abatement and Special Taxes. Office of Central Licensing and Permits via the designated Business License portal. The following shall ensue upon completion of the application A signed Smoke Shop License application, which must include all of the following information and documents:
1. Applicant shall remit the established license fees;
2. Applicant must complete and file additional an applications for a Business License in addition to a Smoke Shop License; licensing coinciding with the primary license described.
3. Applicant shall comply with all respective City agencies including the Department of Finance, Health Department Department of Health & Community Wellness, Department of Engineering, Newark Police Department, and the Newark Fire Department. Department of Public Safety for any other information reasonably requested by the City relevant to the processing or consideration of the application;
4. Applicant shall remit a copy of the applicable state license(s);
5. Applicant shall remit required approval referenced in 8:39-2(a) of this chapter, if applicable;
6. A location area map of the Establishment and surrounding area that identifies the relative locations and the distances (closest property line to the subject establishment's building) to the closest real property comprising a public or non-public school, licensed child-care facility, park, or playground.
7. If the applicant is an individual, the applicant's name; date of birth; Social Security number; physical address, including residential and any business address; copy of government-issued photo identification; email address; one or more phone numbers, including emergency contact information;
8. If the applicant is not an individual, the names; dates of birth; physical addresses, including residential and any business address; copy of government-issued photo identifications; email address; and one or more phone numbers for each stakeholder of the applicant, including designation of the highest ranking representative as an emergency contact person; contact information for the emergency contact person; articles of incorporation or organization; assumed name registration; Internal Revenue Service EIN confirmation letter; copy of the operating agreement of the applicant, if a limited liability company; copy of the partnership agreement, if a partnership; names and addresses of the beneficiaries, if a trust, or a copy of the bylaws or shareholder agreement, if a corporation;
9. The name and address of the current property owner of record;
a. The applicant shall submit proof that the applicant has or will have lawful possession of the premises proposed for the cannabis establishment, which proof may consist of: a deed, a lease, a real estate contract contingent upon successful licensing, or a binding letter of intent by the owner of the premises indicating an intent to lease the premises to the entrant contingent upon successful licensing.
10. If the current property owner is different than the applicant (e.g. where the applicant has a lease, option, land contract, or other future interest in the property), the property owner's signature is required in addition to the applicant's or provide a signed notarized letter from the property owner acknowledging the type of business; terms of contract between the owner and applicant; the revocation of any Federal, State, and/or local incentive; etc.;
11. 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:
12. A resolution from the City of Newark's Planning Board or a Permitted Use Letter from the Department of Economic and Housing Development, Division of Planning and Zoning.
13. Any other information reasonably requested by the City relevant to the processing or consideration of the application.
b) No person shall operate in the manner to sale or distribute under these regulations without first obtaining the proper licenses from the Finance Department, Division of Tax Abatement and Special Taxes permit from the Office of Central Licensing and Permits.
c) A Business license fee of One Thousand Dollars and Zero Cents ($1,000.00) and a Smoke Shop license fee of One Thousand Dollars and Zero Cents ($1,000.00) shall be remitted to the Finance Department, Division of Tax Abatement and Special Taxes Office of Central Licensing and Permits prior to the distribution of licensing.
d) Licenses issued pursuant to the promulgated regulations shall be deemed an annual license which shall expire on the 31st of December of each calendar year regardless of issuance date. Owner must renew license in accordance with the City’s biennial schedule.
e) Smoke Shop licenses shall not be transferrable or assignable by sale or otherwise.
8:39-5 HOURS OF OPERATIONS.
a) Smoke Shops may only operate between the hours of 9:00 a.m. through 10:00 9:00 p.m. daily.
8:39-6 INSPECTION.
All Smoke Shop establishments must allow the City access to its premises at any given time during operating hours to conduct an inspection. Refusal to provide access will consequently result in immediate closure of the establishment. Owners/ Operators shall be allowed to resume operations upon the completion of inspection and a formal hearing.
a) the Department of Engineering, Department of Health & Community Wellness, Newark Police Division, and the Newark Fire Division, shall conduct annual inspections to ensure establishments are following applicable City ordinances in addition to provisions of this chapter.
8:39-7 MERCHANDISING & ADVERTISEMENT.
a) All items appealing to likeness of minors shall be kept in a secured location on the premises in which an operating attendant only has access for distribution.
1. Secured location may be defined as locked glass casing and/or shelving with limited to no public access.
b) To ensure safety and the prohibition of underage use no person shall advertise any product in a manner that will target, appeal to, and or attract any individual under the legal age limit.
8:39-8 VIOLATION PENALTY.
a) Any person in violation of this Chapter provisions shall be subjected to the issuance of summons and all established fines:
1. 1st offense, a minimum fine of $750 $2,000.00 with a maximum fine of up to $1,000.00 $3,000.00;
2. 2nd offense, a minimum fine of $750 $3,000.00 with a maximum fine of up to $1,500.00 $4,000.00 and community service for a period of 90 days and suspension of license;
3. 3rd offense, a minimum fine of $750 $4,000.00 with a maximum fine of up to $2,000.00 $5,000.00 and permanent revocation of license issued.
b) In cases of illegal activity, such as selling illegal substances, the city will collaborate with law enforcement to pursue criminal charges.
c) If an establishment operates without ever having the required licenses, it will be barred from operating within the City.
b) d) Person(s) in violation or found guilty of offenses spelled out in this Chapter shall be considered guilty of each offense each day of occurrence. All violating parties shall be punishable as stated in the City of Newark’s Code.
e) The City may also request that the State revoke or refrain from renewing the establishment's state operating license(s).
8:39-9 REVOCATION OR SUSPENSION OF LICENSE.
The Director of Department of Engineering and/or the designee shall have the power to suspend or revoke for cause any such license. Reasonable causes for suspension or revocation of a license issued according to the provisions of this chapter shall include, but are not limited to the following:
1. Licensee has habitual offenses violating the provisions of this chapter.
2. Licensee fails to possess a Certificate of Occupancy establishing authorized use for a “Smoke Shop”.
3. Licensee fails to obtain and/or renew proper licensure within the designated time period from the Finance Department, Division of Tax Abatement and Special Taxes Office of Central Licensing and Permits.
4. Licensee fails to provide required State license(s).
5. Licensee fails to comply with any City Ordinance.
6. Selling cannabis and/or cannabis items without obtaining proper licenses.
8:39-10 ENFORCEMENT.
Provisions of this Chapter may be enforced by the City of Newark’s Code Enforcement Division, designated members of the Department of Public Safety Newark Police Department, Department of Finance, and Department of Health & Community Wellness Health Officers.
1. The Director of Engineering is authorized and empowered to promulgate such written rules and regulations as are necessary to carry out the provisions of this chapter.
2. The Director of Engineering shall collaborate with the Department of Public Safety, Department of Finance, and the Department of Health & Community Wellness prior to issuing any revocation or suspension of a license.
SECTION 2. The provisions of this Ordinance are severable. To the extent any clause, phrase, sentence, paragraph or provision of this Ordinance shall be declared by a court of competent jurisdiction to be invalid, illegal, or unconstitutional, the remaining provisions shall continue in full force and effect.
SECTION 3. The Ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
SECTION 4. Codification. This Ordinance shall be a part of the Code of the City of Newark 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 Newark 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.
STATEMENT
This Ordinance amends Title VIII, Businesses and Occupations Chapter 39, entitled “Smoke Shops”.