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Atlantic City council advances cannabis cap ordinance in first reading; retail cap set for later vote
Summary
Council moved an ordinance forward to cap retail cannabis dispensaries; staff said the proposed cap is 12 annual licenses and 4 micro licenses for retail (Class 5). Delivery and other license classes were discussed separately.
The Atlantic City Council on Sept. 17 advanced an ordinance on first reading that would limit the number of retail cannabis licenses in the city. The ordinance and accompanying staff presentation focused on retail licenses (Class 5 under the state licensing framework) and the proposed cap for retail outlets.
City staff told the council the recommendation is a total cap of 16 retail licenses divided into 12 full annual retail licenses and four micro retail licenses. "The recommendation that we received was for a cap of 16, but it will be 12 annual and, 4, micro," a staff member explained during the meeting. Council members asked for the supporting report referenced by the ordinance before second reading; one member asked that the report be provided to all council members.
Council members also raised questions about delivery and other classes of cannabis licenses, and city staff explained that delivery services (Class 6) are regulated separately. Staff noted delivery can be performed by a retailer that holds a retail license, and a standalone delivery business (Class 6) could operate as a separate license type; delivery that begins outside the city can still deliver into the city and cannot be stopped by the municipality.
On first reading the council recorded votes in favor (a roll-call sequence during the meeting produced seven or eight affirmative votes depending on the tallying moments recorded; one council member did not vote on the first-reading motion). Council members asked that the ordinance’s referenced report and a clearer written definition of which license classes are affected be supplied before second reading.
Discussion versus decision: The ordinance passed first reading; the measure requires a second reading and a subsequent vote to become law. Staff and council discussion clarified the ordinance targets retail (Class 5) licensing with a proposed breakdown of 12 full annual retail licenses and four micro licenses. Delivery (Class 6) and other license classes were discussed as separate regulatory issues and not capped by this proposed ordinance.
