The governing body introduced an amendment to an ordinance (O-14-22) during its March 14 regular meeting after another measure (O-11-22) was tabled at the February meeting. A second reading, which involves a public hearing and final adoption, is scheduled during its regular meeting scheduled tonight at 7 p.m.

The ordinance (O-14-22) would amend Chapter 421 of the city’s zoning code to permit cannabis businesses in certain locations. “A cannabis business seeking to engaging in medical and/or personal cannabis within the City of Rahway, shall first submit an application which can be found in the clerk [sic] with the required and non-refundable $1,000 fee for processing of the application.”

It’s unclear what the $1,000 application fee would entail but I would imagine it must include a background check and credit check, among other things.

Last summer, City Council approved an ordinance (O-24-21) to allow five of six types of cannabis licenses within the city’s Light Industrial (I-L) and Heavy Industrial (I-H) zones. The legislation allows for two licenses of each class of business:

• Cultivator
• Manufacturer
• Wholesaler
• Distributor
• Delivery

A business engaging in medical and personal cannabis will count as one toward the maximum number of licenses. Cannabis retail businesses are prohibited within all zones in the city. On-site consumption of marijuana would be prohibited as well as marijuana derived products, including smoking, ingesting edibles, or applying topical applications.

Under state law, towns are allowed to levy an optional Cannabis “Transfer Tax and User Tax” that is capped at 1% of wholesale activities and 2% of cultivation, processing, and retail activities. The tax in Rahway would be fixed at a uniform rate of 2% on all sales or transfers of cannabis products from any of the cannabis establishments.