[HISTORY: Adopted by the City Commission of the City of Lapeer 7-13-2020.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance superseded former Ch. 69, Recreational
Marihuana Facilities, adopted 3-18-2019.
A.
Recognizing that there is a potential conflict between federal and
state law with respect to the operation of adult use marihuana businesses,
it is the purpose and intent of this chapter to give effect to the
intent of Initiated Law 1 of 2018, the Michigan Regulation and Taxation
of Marihuana Act, MCLA 333.27951 et seq. (the "Act"), as approved
by the electors. It is the further intent of this chapter to protect
the public health, safety, and general welfare of persons and property,
and to license certain locations as specified below, as allowed by
the Act.
B.
This chapter is designed to recognize the fundamental intent of the
Act to facilitate the statutory authorization for the limited cultivation,
distribution, and use of marihuana in lawful amounts by those adults
21 and over as allowed by the Act; and to regulate around this fundamental
intent in a manner that does not conflict with the Act. It is also
the intent of this chapter to help defray administrative and enforcement
costs associated with the operation of a marihuana facility in the
City of Lapeer through imposition of an annual, nonrefundable fee
of not more than $5,000, or such other amount as may be authorized
by law or regulation, on each marihuana facility licensee granted
by the City of Lapeer under Michigan law and this chapter. Authority
for the enactment of these provisions is set forth in the Michigan
Regulation and Taxation of Marihuana Act, MCLA 333.27951 et seq.
C.
Nothing in this chapter shall be construed as allowing persons to
engage in conduct that endangers others or causes a public nuisance,
or to allow use, cultivation, growth, possession or control of marihuana
not in strict accordance with the express authorizations of the Act
and this chapter; and nothing in this chapter shall be construed to
undermine or provide immunity from federal law or state law as it
may be enforced by the federal or state government relative to the
cultivation, distribution, or use of marihuana. Thus, the authorization
of activity and the approval of a license under this chapter shall
not have the effect of superseding or nullifying federal or state
law applicable to the cultivation, use, and possession of marihuana,
and all applicants and grantees of licenses are on notice that they
may be subject to prosecution and civil penalty, including forfeiture
of property.
D.
As of the effective date of this chapter, marihuana remains classified
as a Schedule 1 controlled substance under the Federal Controlled
Substances Act, 21 U.S.C. § 801 et seq., which makes it
unlawful under federal law to manufacture, distribute, or dispense
marihuana, or possess marihuana with intent to manufacture, distribute,
or dispense marihuana. Nothing in this chapter is intended to grant
immunity from any criminal prosecution under state or federal laws
as they may be enforced by either the federal or state governments
relative to such uses and activities. Thus, the authorization of activity
and the approval of a license under this chapter shall not have the
effect of superseding or nullifying federal or state law applicable
to the cultivation, manufacture, possession, use, sale, or distribution
of marihuana, in any form, and all applicants and grantees of licenses
are on notice that they may be subject to prosecution and civil penalty,
including forfeiture of property.
A.
ACT
AGENCY
APPLICANT
(1)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(2)
(a)
(b)
(c)
(d)
AUTHORIZED ESTABLISHMENT
BUILDING
BUREAU OF FIRE SERVICES or BFS
CITY
CO-LOCATE
COMMON OWNERSHIP
COMPLETE APPLICATION
CULTIVATE
DEPARTMENT
DESIGNATED CONSUMPTION ESTABLISHMENT
EMPLOYEE
EQUIVALENT LICENSES
(1)
(2)
(3)
(4)
(5)
EXCESS MARIHUANA GROWER
LICENSEE
MARIHUANA
(1)
(2)
(3)
MARIHUANA ACCESSORIES
MARIHUANA ESTABLISHMENT
MARIHUANA EVENT ORGANIZER
MARIHUANA GROWER
MARIHUANA MICROBUSINESS
MARIHUANA PROCESSOR
MARIHUANA RETAILER
MARIHUANA SAFETY COMPLIANCE FACILITY
MARIHUANA SECURE TRANSPORTER
MEDICAL MARIHUANA FACILITIES LICENSING ACT or MMFLA
MUNICIPAL LICENSE
MUNICIPALITY
PERSON
PROPOSED MARIHUANA ESTABLISHMENT
STAKEHOLDER
STATE LICENSE
TEMPORARY MARIHUANA EVENT LICENSE
For the purposes of this chapter, the following words, terms and
phrases, when used in this chapter, shall have the meanings ascribed
to them in this section, except where the context clearly indicates
a different meaning. All definitions have been drawn from and are
intended to have the same meaning as those terms are ascribed in the
Act or its Rules as provided in the Act:
The Michigan Regulation and Taxation of Marihuana Act, 2018
Initiated Law 1, MCLA 333.27951 to 333.27967.
The Marijuana Regulatory Agency.
A person who applies for a license in the City of Lapeer
pursuant to this chapter to operate a marihuana retailer, marihuana
grower, marihuana processor, marihuana secure transporter, marihuana
safety compliance facility or marihuana microbusiness under this chapter.
For purposes of this definition, an applicant includes a managerial
employee of the applicant, a person holding a direct or indirect ownership
interest of more than 10% in the applicant, and the following for
each type of applicant:
For an individual or sole proprietorship: the proprietor and
spouse.
For a partnership and limited liability partnership: all partners
and their spouses.
For a limited partnership and limited liability limited partnership:
all general and limited partners, not including a limited partner
holding a direct or indirect ownership interest of 10% or less and
who does not exercise control over or participate in the management
of the partnership, and their spouses.
For a limited liability company: all members and managers, not
including a member holding a direct or indirect ownership interest
of 10% or less and who does not exercise control over or participate
in the management of the company, and their spouses.
For a privately held corporation: all corporate officers or
persons with equivalent titles and their spouses, all directors and
their spouses, and all stockholders, not including those holding a
direct or indirect ownership interest of 10% or less, and their spouses.
For a publicly held corporation: all corporate officers or persons
with equivalent titles and their spouses, all directors and their
spouses, and all stockholders, not including those holding a direct
or indirect ownership interest of 10% or less, and their spouses.
For a multilevel ownership enterprise: any entity or person
that receives or has the right to receive more than 10% of the gross
or net profit from the enterprise during any full or partial calendar
or fiscal year.
For a nonprofit corporation: all individuals and entities with
membership or shareholder rights in accordance with the articles of
incorporation or the bylaws, and their spouses.
For purposes of this definition, an applicant does not include:
A person who provides financing to an applicant or licensee
under a bona fide financing agreement at a reasonable interest rate.
A franchisor who grants a franchise to an applicant, provided
that the franchisor does not have the right to receive royalties based
upon the sale of marihuana or marihuana-infused products by the applicant
who is a franchisee. Nothing in this chapter shall be construed to
preclude a franchisor from charging an applicant who is a franchisee
a fixed fee. As used in this definition, the terms "franchise," "franchisor,"
and "franchisee" shall have the meanings set forth in Section 2 of
the Franchise Investment Law, 1974 PA 269, MCLA 445.1502.
A person receiving reasonable payment for rent on a fixed basis
under a bona fide lease or rental obligation.
A person receiving reasonable payment under a licensing agreement
or contract approved by the agency concerning the licensing of intellectual
property, including, but not limited to, brands and recipes.
That type of marihuana establishment authorized to be licensed in § 69-3B of this chapter within the City of Lapeer.
A combination of materials forming a structure affording
an establishment or shelter for use or occupancy by individuals or
property. Building includes a part or parts of the building and all
equipment in the building. A building shall not be construed to mean
a building incidental to the use for agricultural purposes of the
land on which the building is located.
The Bureau of Fire Services in the Department of Licensing
and Regulatory Affairs.
The City of Lapeer.
To locate or be in jointly or together; to share or designate
to share the same place.
Two or more state licenses or two or more equivalent licenses
held by one person.
An application that includes all the information required
in Rules 7, 8, and 10.
To propagate, breed, grow, harvest, dry, cure, or separate
parts of the marihuana plant by manual or mechanical means.
The Michigan Department of Licensing and Regulatory Affairs
or its successor agency.
A commercial space that is licensed by the agency and authorized
to permit adults 21 years of age and older to consume marihuana products
at the location indicated on the state license as permitted by the
Rules and Regulations adopted by the Bureau of Marihuana Regulation
(BMR).
A person performing work or service for compensation. An
employee does not mean individuals providing trade services who are
not normally engaged in the operation of a marihuana establishment.
Any of the following held by a single licensee:
A marihuana grower license, of any class, issued under the Act
and a grower license, of any class, issued under the MMFLA.
A marihuana processor license issued under the Act and a processor
license issued under the MMFLA.
A marihuana retailer license issued under the Act and a provisioning
center license issued under the MMFLA.
A marihuana secure transporter license issued under the Act
and a secure transporter license issued under the MMFLA.
A marihuana safety compliance facility license issued under
the Act and a safety compliance facility license issued under the
MMFLA.
A license issued to a person holding five Class C marihuana
grower licenses or more and licensed to cultivate marihuana and sell
or otherwise transfer marihuana to marihuana establishments.
[Amended 4-5-2021]
A person holding a state license under the Act or a person
holding a municipal license granted by the City of Lapeer, or both.
All parts of the plant of the genus cannabis, growing or
not; the seeds of the plant; the resin extracted from any part of
the plant; and every compound, manufacture, salt, derivative, mixture,
or preparation of the plant or its seeds or resin, including marihuana
concentrate and marihuana-infused products. For purposes of this chapter,
marihuana does not include:
The mature stalks of the plant, fiber produced from the stalks,
oil or cake made from the seeds of the plant, any other compound,
manufacture, salt, derivative, mixture, or preparation of the mature
stalks, except the resin extracted from those stalks, fiber, oil,
or cake, or any sterilized seed of the plant that is incapable of
germination;
Industrial hemp; or
Any other ingredient combined with marihuana to prepare topical
or oral administrations, food, drink, or other products.
Any equipment, product, material, or combination of equipment,
products, or materials, which is specifically designed for use of
planting, propagating, cultivation, growing, harvesting, manufacturing,
compounding, converting, producing, processing, preparing, testing,
analyzing, packaging, repackaging, storing, containing, ingesting,
inhaling, or otherwise introducing marihuana into the human body.
A marihuana grower, marihuana safety compliance facility,
marihuana processor, marihuana microbusiness, marihuana retailer,
marihuana secure transporter, marihuana designated consumption establishment,
or any other type of marihuana-related business licensed to operate
by the Agency under the Act.
A person licensed to apply for a temporary marihuana event
license under these rules.
A person licensed to cultivate marihuana and sell or otherwise
transfer marihuana to marihuana establishments.
A person licensed to cultivate not more than 150 marihuana
plants; process and package marihuana; and sell or otherwise transfer
marihuana to individuals who are 21 years of age or older or to a
marihuana safety compliance facility, but not to other marihuana establishments.
A person licensed to obtain marihuana from marihuana establishments;
process and package marihuana; and sell or otherwise transfer marihuana
to marihuana establishments.
A person licensed to obtain marihuana from marihuana establishments
and to sell or otherwise transfer marihuana to marihuana establishments
and to individuals who are 21 years of age or older.
A person licensed to test marihuana, including certification
for potency and the presence of contaminants.
A person licensed to obtain marihuana from marihuana establishments
in order to transport marihuana to marihuana establishments.
2016 PA 281, MCLA 333.27101 to 333.27801, which allows for
the licensing of medical marihuana facilities.
A license issued by a municipality pursuant to Section 16
of the Act that allows a person to operate a marihuana establishment
in that municipality where the Department has failed to timely accept
or process an application under the Act.
The City of Lapeer.
An individual, corporation, limited liability company, partnership
of any type, trust, or other legal entity.
A location at which an applicant plans to operate a marihuana
establishment under the Act and this chapter if the applicant is issued
a license.
The officers, directors, and managerial employees of an applicant
and any persons who hold any direct or indirect ownership interest
in the applicant.
A license issued by the Department that allows a person to
operate a marihuana establishment.
A state license held by a marihuana event organizer for an
event where the on-site sale or consumption of marihuana products,
or both, are authorized at the location indicated on the state license
during the dates indicated on the state license.
B.
To the extent that any terms defined herein are not consistent with
the definitions of those same terms under the Act, or any Rules promulgated
in furtherance of the Act, then those terms as defined in the Act
and Rules shall be as defined in the Act and Rules.
A.
License required. It shall be unlawful for any person to operate
a medical marihuana facility or a marihuana establishment in the City
of Lapeer without a valid license for such marihuana establishment
issued by the City Clerk in accordance with the provisions of this
chapter.
B.
Authorization of marihuana establishment licenses; licensing and
administrative fees.
(1)
Type of authorized license.
(a)
Pursuant to Section 6 of the MRTMA, MCLA 333.27956, the following
adult use business licenses may be authorized to operate in the City
of Lapeer by the holder of a state operating license, subject to compliance
with the Act, as may be amended, the Rules promulgated thereunder,
and this chapter:
[Amended 4-5-2021]
|
License Type
|
Number
|
|---|---|
|
Marihuana retailer (see below)
|
6
|
|
Marihuana grower (Class A, B, and C)
|
Unlimited
|
|
Marihuana excess grower
|
Unlimited
|
|
Marihuana processor
|
Unlimited
|
|
Marihuana safety compliance facility
|
Unlimited
|
|
Marihuana secure transporter
|
Unlimited
|
(b)
A marihuana retailer is an authorized establishment under this
chapter and Section 6 of the MRTMA, MCLA 333.27956, but only at a
location where a medical marihuana provisioning center license has
been approved (co-located), with or without the continued medical
marihuana provisioning center use following the enactment of this
chapter. Any operation of the medical marijuana provisioning center,
a marijuana retailer, or combination of the two, shall comply with
all zoning and regulatory conditions of the original licensure of
the medical marihuana provisioning center for the licensed location.
(c)
Although the maximum number of each type of marihuana facility
permitted in the City of Lapeer is established above, no marihuana
facility of any type may be located within the Central Business District.
(2)
No other licenses authorized. Pursuant to Section 6 of the MRTMA,
MCLA 333.27956, the City shall not authorize any licenses to operate
a marihuana microbusiness, or a designated consumption establishment,
and further shall not authorize the issuance of a marihuana event
organizer license or temporary marihuana event license in the City.
[Amended 4-5-2021]
(3)
Application, licensing and administrative fees.
(a)
Pursuant to Section 6 of the MRTMA, an application for a license
shall be accompanied by a nonrefundable application fee to help defray
administrative and enforcement costs associated with the operation
of the proposed authorized establishment, which shall be in the amount
as listed in the City of Lapeer Fee Schedule as approved by the City
Commission, per license requested.
(b)
Additionally, for each year in which an applicant has submitted
an application for license renewal, a nonrefundable fee shall be paid
by each applicant for such renewal, including upon an application
for renewal of any license issued pursuant to this chapter, in the
amount as listed in the City of Lapeer Fee Schedule as approved by
the City Commission, per license requested to defray application,
administrative, and enforcement costs associated with the renewal
application review and operation of those types of marihuana establishments
authorized within the City of Lapeer.
A.
Applications required.
(1)
Application from applicant that has applied and received state license prequalification. Any person seeking to operate an authorized marihuana establishment as provided in § 69-3B and who has submitted and received license prequalification from the State of Michigan pursuant to Section 9 of the MRTMA, MCLA 333.27959, shall file a license application with the City Clerk upon a form provided by the City. The application shall include the following information:
[Amended 10-5-2020]
(a)
The full name, date of birth, physical address, email address,
and telephone number of the applicant in the case of an individual;
or, in the case of an entity, all stakeholders thereof.
(b)
If the applicant is an entity, the entity's articles of
incorporation or organizational documents.
(c)
If the applicant is an entity, the entity's employer identification
number.
(d)
If the applicant is an entity, the entity's operating agreement
or bylaws.
(e)
A proposed marketing, advertising, and business promotion plan
for the proposed authorized establishment.
(f)
A description of planned tangible capital investment in the
City of Lapeer.
(g)
An explanation of the economic benefits to the City of Lapeer
and job creation to be achieved, including the number and type of
jobs the authorized establishment is expected to create, the amount
and type of compensation expected to be paid for such jobs, and the
projected annual budget and revenue of the authorized establishment.
(h)
A description of the financial structure and financing for the
proposed authorized establishment.
(i)
Short-term and long-term business goals and objectives for the
proposed authorized establishment.
(j)
A criminal background report on the applicant's criminal
history. Such reports shall be obtained by the applicant and, if applicable,
each stakeholder through the Internet Criminal History Access Tool
(ICHAT) for applicants or stakeholders residing in Michigan and/or
through another state-sponsored or authorized criminal history access
source for applicants or stakeholders who reside in other states or
have resided in other states within five years prior to the date of
the application. The applicant or stakeholder is responsible for all
charges incurred in requesting and receiving the criminal history
report, and the report must be dated within 30 days of the date of
the application. The applicant shall disclose all arrests, prosecutions
and dispositions, whether identified in the applicant's or each stakeholder's
ICHAT report or not. Failure to submit a complete criminal history
report or supplemental report by the applicant and the stakeholders
will result in disqualification from licensure and removal of the
applicant's application from the licensure application process.
[Amended 4-5-2021]
(k)
A description of the security plan for the proposed authorized
establishment that is consistent with the requirements of the Department.
(l)
A floor plan of the proposed authorized establishment.
(m)
A scale diagram illustrating the property upon which the proposed
authorized establishment is to be operated, including all available
parking spaces, and specifying which parking spaces are handicapped-accessible.
(n)
A depiction of any proposed text or graphic materials to be
shown on the exterior of the proposed authorized establishment.
(o)
An affidavit that neither the applicant nor any stakeholder
of the applicant is in default to the City of Lapeer.
(p)
A statement by the applicant that the applicant has submitted
a valid application for an authorized establishment license under
this chapter, that the proposed authorized establishment is located
in a proper zoning district, that the proposed authorized establishment
is not located in a required buffer zone, and that the applicant understands,
acknowledges and agrees that the applicant cannot and shall not locate
or operate a proposed authorized establishment without obtaining all
other permits and approvals required by all other applicable ordinances
and regulations of the City of Lapeer.
(q)
A complete disclosure of the applicant's and each stakeholder's
litigation history, by case name, date, jurisdiction and nature or
type of litigation. Failure to submit a complete litigation history
by the applicant and the stakeholders will result in disqualification
from licensure and removal of the applicant's application from
the licensure application process.
[Added 4-5-2021]
(2)
Application from applicant for a municipal license upon Department's failure to timely accept or process applicant's state application, pursuant to Section 16 of the MRTMA, MCLA 333.27966. Any person seeking to operate an authorized marihuana establishment as provided in § 69-3B and who has submitted an application for licensure to the Department, but the Department has failed to timely accept or process the applicant's application as required by Section 16 of the MRTMA, MCLA 333.27966, then the applicant shall provide to the City the applicant's entire application and provide all such information and submissions so as to provide the City with a complete application for review as required by Section 9 of the MRTMA, MCLA 333.27959. In such case, all provisions of the Act and the Rules promulgated by the Department shall be applicable to the applicant's application, the application's review and the operations of the applicant under any resulting municipal license issued by the City. The City shall have available to it all powers and authority reserved to the State of Michigan and the Department not otherwise applicable to the City had the Department issued the applicant a state license under the Act.
B.
Applications exempt from disclosure. Except as provided by law, all
materials submitted to the City of Lapeer as part of an application
shall be exempt from disclosure under the Freedom of Information Act
and exempt from disclosure pursuant to Section 9 of the MRTMA, MCLA
333.27959(7).
C.
Application review.
(1)
The City Clerk shall review each application to ensure that it is
complete, that the information required by this chapter has been submitted,
and that the application fee has been paid. The City Clerk may reject
any application that is not complete and may deny an application for
failure to pay the full application fee.
(2)
Upon receipt of a completed application meeting the requirements
of this chapter and the appropriate license application fee, the City
Clerk shall refer a copy of the application to each of the following
for their approval: the Police Chief, the Fire Chief, the Building
Inspector, the City Planner, and the City Treasurer.
(3)
No application shall be approved, and no license shall issue, unless:
(a)
The Police Chief has reviewed the completeness and accuracy
of the background information provided by the applicant in the application.
(b)
The Fire Chief and the Building Inspector have inspected the
proposed location for compliance with all applicable laws for which
they are charged with enforcement and for compliance with the requirements
of this chapter.
(c)
The City Planner has confirmed that the proposed location complies
with the relevant provisions of the City of Lapeer Zoning Ordinance
and this chapter.
(d)
The City Treasurer has confirmed that the applicant and each
stakeholder of the applicant are not in default to the City of Lapeer.
(4)
After the effective date of this chapter, the City shall begin accepting
applications for authorized establishments for a period of 21 days.
(5)
The City, with the assistance of its consultants and advisors, legal
and otherwise, shall assess, evaluate, score and rank all applications
for licenses to operate a marihuana retailer within 90 days after
expiration of the submission period.
(6)
In its application assessment, evaluation, scoring, ranking, and
deliberations related to licenses to operate a marihuana retailer,
the City shall assess, evaluate, score, and rank each application
based upon the following factors:
(a)
Detailed information concerning the applicant's ownership
structure as set forth in the City of Lapeer's Marihuana Retailer
Scoring Criteria, which shall be provided to an applicant as part
of the application. The maximum number of scoring points in this category
shall be five points.
(b)
Detailed information concerning the applicant's financial
stability as set forth in the City of Lapeer's Marihuana Retailer
Scoring Criteria, which shall be provided to an applicant as part
of the application. The maximum number of scoring points in this category
shall be seven points.
(c)
Detailed information concerning the applicant's business
experience as set forth in the City of Lapeer's Marihuana Retailer
Scoring Criteria, which shall be provided to an applicant as part
of the application. The maximum number of scoring points in this category
shall be nine points.
(d)
Detailed information concerning the applicant's proposed
business operations as set forth in the City of Lapeer's Marihuana
Retailer Scoring Criteria, which shall be provided to an applicant
as part of the application. The maximum number of scoring points in
this category shall be 12 points.
(e)
Detailed information concerning the applicant's proposed
facility construction, rehabilitation or improvements, maintenance,
use and security as set forth in the City of Lapeer's Marihuana
Retailer Scoring Criteria, which shall be provided to an applicant
as part of the application. The maximum number of scoring points in
this category shall be 26 points.
(f)
Detailed information concerning the applicant's proposed
community outreach and relations as set forth in the City of Lapeer's
Marihuana Retailer Scoring Criteria, which shall be provided to an
applicant as part of the application. The maximum number of scoring
points in this category shall be six points.
(7)
Overall scoring and ranking shall be conducted and applied by the
City Clerk with the assistance of legal advice from the City Attorney
on the basis of assigned points from zero points to 65 points, with
the lowest overall total score as zero points and the highest possible
total score being 65 points.
(8)
The City Clerk shall forward all information, including scoring and
ranking information, to the City Commission, who, at the next Commission
meeting, unless postponed for good cause or otherwise provided herein,
shall award licenses as follows:
(a)
One license to the six highest-scoring marihuana retailer applicants if such marihuana retailer is co-located with a medical marihuana provisioning center licensed under Chapter 68 of the City Ordinances.
(b)
If the six highest-scoring medical marihuana provisioning centers
and marihuana retailers are not co-located as provided in this chapter,
then the licenses shall be awarded to the two highest-scoring medical
marihuana provisioning center and/or marihuana retailer applicants
so as to provide for two separate provisioning and/or retail facilities.
(c)
In the event of an evaluation scoring tie, which causes there
to be more than one applicant who achieve scores sufficient to qualify
for a marihuana retailer license, the applicants whose scores are
deemed a tie will be entered into a random draw. Those applicants
randomly selected shall be eligible to receive a license to operate
a marihuana retailer.
(d)
In the event that the number of marihuana retailer licenses
initially awarded is less than the maximum number authorized under
this chapter or subsequently falls below the maximum number authorized
under this chapter, the City shall not be required to score applicants.
Instead, the City shall evaluate applications in the order that they
are submitted and shall award licenses for marihuana retailers to
an applicant who submits a complete application, receives the approvals
required in this chapter, and meets the requirements of this chapter.
(e)
In no event shall the number of marihuana retailer licenses
exceed the maximum number authorized under this chapter.
D.
Transfer of licenses.
(1)
A license issued pursuant to this chapter is valid only for the applicant
named thereon, the type of business disclosed on the application for
the license, and the location for which the license is issued. The
licensees of a marihuana business license are only those persons disclosed
in the application or subsequently disclosed to the City in accordance
with this chapter.
(2)
Each license is exclusive to the licensee. The licensee shall report
material changes to the Department and the City Clerk before making
material changes that may require prior authorization by the Department.
Material changes include, but are not limited to, the following:
(a)
Change in owners, officers, members, or managers;
(b)
Change of location. Upon notification of a proposed change in
location, the Department may determine that a new license and new
inspection are required for the change of location;
(c)
The addition or removal of persons named in the application
or disclosed;
(d)
Change in entity name;
(e)
Any attempted transfer, sale, or other conveyance of an interest
in a license.
(3)
A license granted pursuant to this chapter and the Act is a revocable
privilege granted by the City and is not a property right. The issuance
of a license does not create or vest any right, title, franchise,
or other property interest. Each license is exclusive to the licensee,
and a licensee or any other person must apply for and receive the
City's approval before a license is transferred, sold, or purchased.
A licensee or any other person shall not lease, pledge, or borrow
or loan money against a license. The attempted transfer, sale, or
other conveyance of an interest in a license without prior Department
approval is grounds for suspension or revocation of the license or
for other sanction considered appropriate by the City.
(4)
Any transfer of ownership of a license issued under this chapter
to a different individual, individuals or entity, if approved by the
Department, may be approved by the City only after the City has received
written approval from the State of Michigan approving such proposed
transfer, and upon prior submission to the City Clerk of all licensing
application(s) and supporting documentation filed by the transferee
with the Department. Any transfer permitted under this chapter shall
be only for the remainder of the unexpired annual license term and
no longer.
E.
Term of licenses. Approval of a license shall be for a period of
one calendar year, subject to review by the City Clerk upon continued
compliance with the regulations of this chapter.
F.
Renewal of licensees.
(1)
Application for a license renewal shall be made in writing to the
City Clerk at least 30 days prior to the expiration of an existing
license.
(2)
An application for a license renewal required by this chapter shall
be made under oath on forms provided by the City Clerk and shall contain
substantially all the information required in an initial application.
(3)
An application for a license renewal shall be accompanied by a renewal
fee as set forth in the City of Lapeer Fee Schedule as approved by
the City Commission.
(4)
Upon receipt of a completed application for a license renewal meeting
the requirements of this chapter and the license renewal fee, the
City Clerk shall refer a copy of the renewal application to the Police
Chief, Fire Chief, Building Inspector and Treasurer.
(5)
No application for a license renewal shall be approved unless:
(a)
The Fire Chief and the Building Inspector or another relevant
department have, within the past calendar year, inspected the location
for compliance with all state and local building, electrical, fire,
mechanical and plumbing requirements.
(b)
The City Planner or another relevant department has confirmed
that the location complied with the relevant provisions of the City
of Lapeer Zoning Ordinance at the time the license was granted.
(c)
The licensee possesses the necessary state licenses or approvals,
including those issued pursuant to the Act.
(d)
The licensee has operated the authorized establishment in accordance
with the conditions and requirements of this chapter.
(e)
The licensee is operating the authorized establishment in accordance
with the Act.
(6)
If written approval is given by each department or entity identified
in this section, the City Clerk shall issue a license renewal to the
licensee. The renewal shall be deemed approved if the City has not
issued formal notice of denial within 60 days of the filing date of
the application for renewal.
(7)
Pursuant to the MRTMA, any license issued by the City of Lapeer shall expire one year from the date of its issuance. Failure to submit a completed application for renewal of an existing license along with the required renewal fee to the City Clerk on our before the license expiration date shall be grounds for the revocation or suspension of a license as set forth in Subsection G next below. Any authorized establishment that has not timely submitted a renewal application as required herein shall suspend all business operations until such time as a renewal license has been obtained in accordance with this chapter.
G.
Revocation or suspension of a license. Each authorized establishment
within the City of Lapeer for which a license is granted shall be
operated and maintained in accordance with all applicable laws, rules,
and regulations. Upon any violation of this section or any section
of this chapter, the City Clerk may, after a notice and hearing, revoke
or suspend such license as hereinafter provided.
H.
Procedure for nonrenewal, suspension, or revocation of license. The
City Clerk shall notify an applicant or licensee of the reasons for
denial of an application for a license or license renewal or for revocation
of a license or any adverse decision under this chapter and provide
the applicant or licensee with the opportunity to be heard. Any applicant
or licensee aggrieved by the denial or revocation of a license or
adverse decision under this chapter may appeal to the Lapeer City
Commission. Such appeal shall be taken by filing with the City Clerk,
within 21 days after notice of the action complained of has been mailed
to the applicant or licensee's last known address on the records
of the City Clerk, a written statement setting forth fully the grounds
for the appeal. The City Clerk shall transmit all written materials
received from the applicant or licensee directly to the Lapeer City
Commission The review on appeal of a denial or revocation or adverse
action shall be by the Commission pursuant to this chapter. Any decision
by the City Commission on an appeal shall be final. The City Clerk
and the Lapeer City Commission may engage professional experts to
assist with the proceedings under this section.
I.
Criteria for nonrenewal, suspension, or revocation of license. In
addition to any other reasons set forth in this chapter, the City
may refuse to issue a license or grant renewal of the license or suspend
or revoke the license for any of the following reasons:
(1)
A material violation of any provision of this chapter or other City
ordinances.
(2)
Any conviction of a disqualifying felony by the licensee or any stakeholder
of the licensee.
(3)
Denial, suspension, revocation or restriction of an applicable license
by the State of Michigan.
(4)
Sufficient evidence that the applicant(s) lack, or have failed to
demonstrate, the requisite professionalism and/or business experience
required to assure strict adherence to this chapter and the rules
and regulations governing the MRTMA and the State of Michigan.
(5)
Nonpayment of real and/or personal property taxes, fines, liens,
income tax, hydrant and sprinkler fees or any fees owed to the City.
(6)
The applicant has made or provided false information in the application
or has otherwise become disqualified for the issuance of a license.
(7)
Operations have ceased at the licensed location for more than 90
days, including during a change of ownership or transfer of license.
(8)
Transfer of the license for any reason without the new owner or transferee
having first notified the Department and the City of any material
change in owners, officers, members, or managers and having first
received from approval by the Department and the City for any such
material change as described in the Rules promulgated by the Department
in furtherance of the Act.
A.
License requirements. A license issued to an authorized establishment
under this chapter shall be subject to the following conditions:
(1)
Compliance with the requirements of this chapter, other applicable
City of Lapeer ordinances and codes, including all applicable zoning
ordinances and requirements, building, property maintenance, electrical,
plumbing and mechanical codes, fire codes and all other applicable
state laws, including, but not limited to, the MRTMA and the Rules
promulgated in conjunction therewith.
(2)
Signs displayed on the exterior and interior of any authorized establishment shall conform to City of Lapeer ordinance requirements. No signs shall contain the words "marihuana," "marijuana," "cannabis," "weed," "ganja," "dank," "smoke," "mary jane," or "blunt" or similar marihuana-related euphemisms, nor shall any sign contain marihuana leaves, as well as all other applicable provisions of Article XVII of Chapter 7, the City Zoning Ordinance.
(3)
No licensee or authorized establishment shall use advertising material
that is misleading, deceptive or false or that, as evidenced by the
content of the advertising material or by the medium or the manner
in which the advertising material is disseminated, is designed to
appeal to minors or otherwise advertise in a manner that is inconsistent
with the provisions of the Act or Rules of the Department.
(4)
Operation of an authorized establishment shall not, either directly
or indirectly, cause or create any noise, dust, vibration, glare,
fumes, or odors constituting a nuisance and also detectable to human
senses beyond the boundaries of the property on which the facility
is operated.
(5)
A license that is issued under this chapter shall be posted at all
times inside the authorized establishment in a conspicuous location
near the entrance.
(6)
Consumption of marihuana shall be prohibited at the facility, and
a sign shall be posted on the premises indicating that consumption
is prohibited on the premises.
(7)
There shall be posted in a conspicuous location in each establishment
a legible sign containing the content of this section warning that:
(8)
The authorized establishment shall not allow the sale, consumption,
or use of alcohol or tobacco products on the premises.
(9)
The facility shall be free from infestation by insects, rodents,
birds, or vermin of any kind.
B.
Sales prohibited during certain hours.
(1)
No licensee, employee, or agent of a licensee shall sell or purchase,
by sale, barter, exchange, or otherwise, any item under a license
issued pursuant to this chapter from or to any person or entity between
the hours of 11:00 p.m. and 7:00 a.m. of the following day.
(2)
The hours of operation for any marihuana retailer, safety compliance
establishment, and secure transport establishment licensed hereunder
shall be no more than from 7:00 a.m. to 11:00 p.m., only.
[Amended 10-5-2020]
C.
Prohibited acts.
(1)
It shall be unlawful:
(a)
For any licensee or authorized establishment to permit the consumption
of alcohol beverages on the licensed premises.
(b)
For any licensee or authorized establishment holding a marihuana
retailer license, or for any agent, manager or employee thereof, to:
[1]
Sell, give, dispense or otherwise distribute marihuana or marihuana
accessories from any outdoor location;
[2]
Provide or give away marihuana accessories upon the purchase
of marihuana;
[3]
Provide or give away marihuana upon the purchase of marihuana
accessories;
[4]
Display marihuana or marihuana accessories so as to be visible
from a public place outside of the marihuana establishment, sell or
market marihuana accessories;
[5]
Sell or display any marihuana accessory targeted to younger
persons or minors, such as those fashioned as superhero comic book
characters, Sesame Street® characters,
and the like;
[6]
Sell or display any glass marihuana accessories made of non-Pyrex® rated glass materials;
[7]
Manufacture, sell or display any marihuana accessory fashioned
to look like guns or other weapons;
[8]
Manufacture, sell or display any accessory that contains any
name, emblem, badge, mark, seal or logo of the City of Lapeer or its
departments or a reasonable facsimile thereof.
(c)
For retail marihuana establishments to distribute marihuana
or marihuana-infused products to a consumer free of charge.
(d)
For any licensee or authorized establishment to permit the consumption
of retail marihuana or retail marihuana products on the licensed premises.
(2)
In conformance with the Michigan Regulation and Taxation of Marihuana
Act, the sale or consumption of marihuana in any form and the sale
or display of marihuana accessories, as defined by that Act, is prohibited
in any public places owned, occupied, or managed by the City of Lapeer.
(3)
This section does not supersede rights and obligations with respect
to the transfer and consumption of marihuana on private property to
the extent authorized by the person who owns, occupies or operates
such property, as provided and authorized by the Act, and does not
supersede rights and obligations with respect to the use of marihuana
for medicinal purposes as provided by any law of the State of Michigan
allowing for or regulating marihuana for medical use.
D.
Compliance with state laws. Each licensee and employee must comply
with the terms of state laws, including, but not limited to, the MMFLA
and the MRTMA, any amendments thereto, as well as any Rules promulgated
pursuant to the MMFLA or the MRTMA. Nothing in this chapter is intended
to grant immunity from criminal or civil prosecution, penalty, or
sanction for the cultivation, manufacture, possession, use, sale,
or distribution of marihuana, in any form, that is not in compliance
with the Michigan Medical Marihuana Act, Initiated Law 1 of 2008,
MCLA 333.26421 et seq.; the Medical Marihuana Facilities Licensing
Act, MCLA 333.27101 et seq.; the Marihuana Tracking Act, MCLA 333.27901
et seq.; the Michigan Regulation and Taxation of Marihuana Act, MCLA
333.27951 et seq., and all other applicable Rules promulgated by the
State of Michigan. This chapter permits authorizations for activity
based on the Michigan Regulation and Taxation of Marihuana Act, MCLA
333.27951 et seq. Nothing in this chapter shall be construed as allowing
persons to engage in conduct that endangers others or causes a public
nuisance, or to allow marihuana uses and activities not in strict
accordance with the express authorizations of the Michigan Regulation
and Taxation of Marihuana Act, MCLA 333.27951 et seq., or the Medical
Marihuana Facilities Licensing Act, MCLA 333.27101 et seq.
E.
Compliance with zoning and other ordinances. Every licensee and employee
shall comply with all requirements for the business location at which
work, pursuant to any license issued under this chapter, occurs as
provided in any applicable zoning and other ordinances of the City
of Lapeer.
F.
Minors prohibited. No person shall permit any person under the age
of 21 years to come upon or remain on the premises of any business
licensed herein, except as provided by the MMFLA.
Any person who violates this chapter shall be responsible for
a municipal civil infraction and punished by a fine of not more than
$500 pursuant to Section 6 of the MRTMA, MCLA 333.27956. This chapter
shall be enforced and administered by the City of Lapeer Police Department
or such other City of Lapeer official as may be designated from time
to time by resolution of the Lapeer City Commission.
All ordinances and resolutions heretofore adopted inconsistent
herewith are hereby repealed to the extent that the provisions thereof
are inconsistent with the provisions hereof.
In the event that any one or more sections, provisions, phrases
or words of this chapter shall be found to be invalid by a court of
competent jurisdiction, such holding shall not affect the validity
or the enforceability of the remaining sections, provisions, phrases
or words of this chapter.
This chapter shall take effect 90 days from the date of publication.
