[HISTORY: Adopted by the City Council of the City of Coldwater 6-22-2020 by Ord. No. 833.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance also provided for the repeal of former Ch. 880, Marihuana Establishments, adopted 12-10-2018 by Ord. No. 817.
The following terms shall be defined as follows for purposes of this chapter:
(a) 
This chapter contains words and phrases that are defined in the MRTMA.[1] As used in this chapter, they have the same meanings as provided in the MRTMA, as may be amended, and rules promulgated thereunder, unless a term is otherwise defined in this chapter or the context requires a different meaning.
[1]
Editor’s Note: See MCLA § 333.27951 et seq.
(b) 
Terms.
APPLICANT
A person who applies for a municipal marihuana license under this chapter. The term shall have the same definition as provided in the rules established by the Marijuana Regulation Agency (the "MRA") pursuant to the MRTMA, as approved by the governor of the State of Michigan, and filed with the Michigan Secretary of State Rules or other regulations promulgated thereunder.
LICENSEE
A person or entity issued a marihuana establishment license under this chapter or by the state, including safety compliance facilities, and secure transporters.
MARIHUANA ADULT USE ESTABLISHMENT or ADULT USE MARIHUANA ESTABLISHMENT or MARIHUANA ESTABLISHMENT
A marihuana grower, marihuana safety compliance facility, marihuana processor, marihuana microbusiness, marihuana retailer, marihuana secure transporter, or any other type of marihuana-related business licensed to operate by the Marihuana Regulatory Agency as authorized by the MRTMA.
MUNICIPAL MARIHUANA LICENSE
A license issued pursuant to this chapter that allows the licensee to operate one of the permitted establishments allowed within the City as specified in the license.
Pursuant to the MRTMA, the City of Coldwater authorizes the operation within the City of only the following marihuana adult use establishments by holders of a municipal marihuana license, who possess a valid, current, state-issued operating license for the same type of marihuana establishment under the MRTMA. Authorized marihuana establishments must operate at all times in compliance with the laws of the State of Michigan, including the MRTMA, and all applicable rules, and comply with all of the additional requirements for municipal marihuana license holders set forth in this chapter, all of the requirements of Part Twelve, Planning and Zoning Code, of the City of Coldwater, including, without limitation, Chapter 1295, and all other applicable laws, administrative rules, and ordinances:
(a) 
Marihuana grower, including Class A grower, Class B grower, and Class C grower.
(b) 
Excess marihuana grower.
(c) 
Marihuana processor.
(d) 
Marihuana secure transporter.
(e) 
Marihuana retailer.
(f) 
Marihuana microbusiness.
(g) 
Marihuana safety compliance facility.
Pursuant to the MRTMA, Section 6.1, the City of Coldwater prohibits the licensing and operation of certain marihuana establishments within its jurisdiction to the extent that the City is authorized to prohibit them under the MRTMA, including the following:
(a) 
Designated consumption establishment license.
(b) 
Marihuana event organizer license.
(c) 
Temporary marihuana event.
Pursuant to the provisions of Section 6.1 of the MRTMA, all marihuana establishments except those expressly permitted in this chapter 880 are prohibited within the City of Coldwater.
All marihuana facilities authorized under the Michigan Medical Marihuana Act, 2008 IL 1, MCLA § 333.26421 et seq. (the "MMFLA"), are prohibited within the boundaries of the City of Coldwater.
(a) 
No person shall operate a marihuana establishment in the City of Coldwater without first obtaining a municipal marihuana license as required by this chapter.
(b) 
For co-located marihuana establishments as authorized by state law, a separate municipal marihuana license is required for each type of marihuana establishment to be operated.
(c) 
For marihuana establishments with stacked grower licenses authorized by this chapter and state law, a municipal marihuana license is required for each stacked grower license.
(d) 
A municipal marihuana license issued under this chapter shall be valid for one year after the date of issuance. However, the expiration date of the state operating license issued under the MRTMA that corresponds to a municipal marihuana license issued under this chapter shall be the expiration date of the municipal marihuana license. The expiration of a municipal marihuana license does not affect a person's licensure under the MRTMA but does affect the person's ability to operate a marihuana establishment in the City.
(e) 
The municipal marihuana license requirement as set forth in this chapter shall be in addition to any other requirements imposed by any other state or local law, including, but not limited to, state or local laws applicable to commercial entities performing functions similar to the functions performed by marihuana establishments.
(a) 
A municipal marihuana license is a revocable privilege and not a right. Nothing in this chapter may be held or construed to grant a vested right, license, permit or privilege to continued marihuana operations within the City.
(b) 
A municipal marihuana license issued under this chapter is valid only for the applicant named on the license, the proposed location of the marihuana establishment identified on the license, and the type of marihuana establishment identified on the license. Each municipal marihuana license is personal and exclusive to the recipient.
(c) 
The revocation, suspension, and placement of restrictions by the state on a state license issued pursuant to the MRTMA applies equally to the municipal marihuana license.
(d) 
An applicant for and a recipient of a municipal marihuana license has a continuing duty to provide information requested by the City and to cooperate in any investigation, inquiry, or hearing conducted by the City.
(e) 
Acceptance of a municipal marihuana license issued under this chapter constitutes consent by the holder of the license for the City to conduct inspections of the licensed premises to ensure compliance with this chapter and Coldwater zoning ordinances, including any conditions of a special use permit and state law.
(f) 
The issuance of a municipal marihuana license does not create an exception, defense, or immunity to any person with regard to any potential criminal or civil liability the person may have under any federal or state law or City ordinance.
(g) 
This chapter does not apply to or regulate any patient or caregiver conduct protected by the Michigan Medical Marihuana Act, 2008 IL 1, MCLA 333.26421 et seq.
(h) 
No municipal marihuana license, nor any interest in a municipal marihuana license, may be sold, assigned, mortgaged or otherwise transferred to any other person as restricted in the MRTMA and in the rules promulgated thereunder.
(a) 
An application for a municipal marihuana license shall be submitted to the City Clerk on a form provided by the City. Any application that does not include all information requested by the application or that is not supported by all materials required by this chapter or the license application form shall be denied and/or rejected.
(b) 
The application may require any information that will enable the City Clerk to make a fair determination as to the applicant's fitness and ability to comply with the provisions of this chapter and all other applicable laws, ordinances, and rules and regulations, including, but not limited to:
(1) 
The name of the applicant and the address of the proposed marihuana establishment and any other contact information requested on the application form.
(2) 
The name and address of all owners and interests (entities and individuals) in the real property on which the marihuana establishment is proposed to be located.
(3) 
A copy of the official paperwork issued by Michigan Department of Licensing and Regulative Affairs (LARA) and/or the MRA indicating that the applicant has successfully completed the prequalification step of the application for a state license under the MRTMA.
(4) 
Proof of the applicant's legal interest in the premises.
(5) 
A copy of the security plan required by Michigan Administrative Rule 35, R. 333.235 or any successor rule.
(6) 
The name and contact information for the on-site operator if different from the holder of the state operating license and/or the municipal marihuana license.
(7) 
Proof of insurance naming the City and its officials as an additional insured.
(8) 
Other information and materials specific to the type of marihuana establishment being licensed as indicated on the license application.
(c) 
Payment of a nonrefundable application fee of $5,000 for each municipal marihuana license sought. Fees due under this chapter are assessed to help defray administrative and enforcement costs associated with the applications for municipal marihuana licenses and administration costs of overseeing marihuana establishments within the City.
(d) 
The City Clerk has no obligation to process or approve any incomplete application.
(e) 
The issuance of any municipal marihuana license shall be provisional until such time as the applicant obtains marihuana establishment special use approval pursuant to City zoning ordinances and the corresponding license issued by the State of Michigan pursuant to the MRTMA.
(a) 
If, after investigation, the City shall be reasonably satisfied that the applicant has demonstrated compliance with all requirements for issuance of a municipal marihuana license, the City shall provisionally issue the applicable municipal marihuana license or grant renewal of an existing license, conditioned on the applicant's meeting the requirements of this section.
(b) 
A municipal marihuana license shall be final, and the licensee shall be authorized to operate under a municipal marihuana license only after the following additional requirements are met:
(1) 
The licensee also holds a valid, current state operating license issued by the state for the location and establishment type. A copy of the valid, current state operating license shall be provided to the City Clerk.
(2) 
Any and all marihuana establishment special land use approvals have been issued.
(3) 
A certificate of occupancy has been issued for the location.
(4) 
The licensee is not operating in violation of any City ordinances or state law.
(5) 
All other license-specific requirements as stated in the license application have been met.
(a) 
Operations at a marihuana establishment operated by a municipal marihuana license holder shall be conducted in compliance with the MRTMA, and any rules promulgated pursuant to the MRTMA, and all other laws, rules, and regulations of the State of Michigan and the City of Coldwater.
(b) 
All security measures required by the state shall be maintained in good working order.
(c) 
All marihuana establishments authorized by this chapter shall display the valid, current state license on the premises at all times where it may be viewed by City staff. All marihuana establishments shall be subject to inspection at any time by the Coldwater Department of Public Safety and the City Manager or the City Manager's designee, to determine whether the marihuana establishment is operating in accordance with all applicable laws, including state law and City ordinances consistent with state law, and any conditions on the marihuana establishment special land use approval granted for the location pursuant to the City Zoning Code, Chapter 1295.
(d) 
Hours of operation for marihuana retailers and marihuana microbusinesses shall be limited to no earlier than 9:00 a.m. and no later than 9:00 p.m., Monday through Sunday.
(a) 
A municipal marihuana license issued under this chapter may be denied, suspended, revoked, or nonrenewed for any of the following reasons:
(1) 
The applicant or licensee is ineligible or does not hold the appropriate state operating license issued by the State of Michigan under the MRTMA.
(2) 
The applicant or licensee, or his or her agent, manager, or employee, has violated or does not meet or has failed to comply with any of the terms, requirements, conditions, or provisions of this chapter, the City Zoning Code, or any applicable state law, rule or regulation.
(3) 
The municipal marihuana license application or the marihuana establishment special use approval application contains any misrepresentation or omission of any material fact, or false or misleading information, or the applicant has provided the City with any other false or misleading information relating to the marihuana establishment.
(4) 
Marihuana is grown, dispensed, possessed, distributed, processed, or sold on the premises in violation of this chapter, the marihuana establishment special use approval, the MRTMA, or any other applicable state or local law, rule, or regulation.
(5) 
The marihuana establishment was operated or is operating in violation of the specifications of the marihuana establishment special use approval, the municipal marihuana license, any conditions of approval by the City of marihuana establishment special use approval, or any other applicable state or local law, rule, or regulation.
(6) 
The marihuana establishment's state operating license has been suspended, revoked, denied, or not renewed.
(7) 
The marihuana establishment has been operated in a manner that adversely affects the public health, safety, or welfare. Evidence to support a finding under this subsection may include, without limitation, a recurring pattern of conduct that violates City ordinances directly related to or arising from the operation of the marihuana establishment; a recurring pattern of drug-related criminal conduct within the premises of the marihuana establishment or in the immediate area surrounding the establishment; a recurring pattern of criminal conduct directly related to or arising from the operation of the marihuana establishment; or an ongoing nuisance condition emanating from or caused by the marihuana establishment. Criminal drug-related conduct considered under this section shall be limited to the violation of a state law, state regulation or City ordinance.
Nothing in this chapter shall be deemed to prohibit the City from imposing other penalties or seeking other remedies authorized by other City ordinances, including the filing of a public nuisance action or other legal action in a court of competent jurisdiction.
(a) 
The same procedures that apply to initial applications for a municipal marihuana license shall apply to the renewal of existing licenses.
(b) 
An application for renewal shall be submitted no earlier than 60 days before the expiration of the existing municipal marihuana license and no later than 30 days before the expiration of the existing municipal marihuana license.
(c) 
If a license renewal is not timely submitted, the municipal marihuana license may be renewed within 60 days after its expiration date upon application, payment of all applicable fees and penalties, and satisfaction of any renewal requirements so long as state licensure is valid.
(d) 
After the initial application and licensing, each annual municipal marihuana license renewal fee shall be $5,000, to be paid at the time of submission of the application for renewal. The fee shall be nonrefundable.
(a) 
Any person who violates a provision of this chapter shall be responsible for a municipal civil infraction and shall be subject to civil infraction fines and costs as follows, but in no case shall the fines and costs exceed the fine limitation set by the state.
(1) 
A person who disobeys, neglects, or refuses to comply with any provision of this chapter or the Zoning Code of the City of Coldwater or any marihuana establishment special use approval issued thereunder, or who causes, allows, or consents to any of the same, shall be deemed to be responsible for a violation of this chapter.
(2) 
A violation of this chapter or the Zoning Code of the City of Coldwater is deemed to be a nuisance, per se.
(3) 
A person who violates or fails to comply with any provision of this chapter is responsible for a municipal civil infraction and shall be subject to a fine of not less than $100 and not more than $500, in the discretion of the court, plus the costs of prosecution. This subsection is not intended to prevent enforcement of any provision of state law. The foregoing shall be in addition to the rights of the City to proceed at law or in equity with all other appropriate and proper remedies. The violator shall pay all costs, including all expenses, direct and indirect, incurred by the City in connection with the municipal civil infraction.
(b) 
Each day of a violation shall be a separate violation.
(c) 
In addition, the City may seek injunctive relief against a person alleged to be in violation of this chapter, and such other relief as may be provided by law.
The City Clerk shall coordinate with the MRA to provide all information that LARA or the MRA deems necessary to carry out licensing under the MRTMA, including, but not limited to:
(a) 
Attestation of ordinances and zoning regulations adopted by the City relating to marihuana establishments and any amendments thereto.
(b) 
Information regarding a licensee or applicant for a state operating license, including:
(1) 
Description of a violation of a City ordinance, including a zoning or a marihuana establishment special use approval requirement, but only if the violation relates to activities licensed under this chapter, City zoning ordinances relating to marihuana establishments, or applicable marihuana laws;
(2) 
Denial, suspension, revocation, or nonrenewal of a municipal marihuana license;
(3) 
Whether there has been any change to any City ordinance, including, without limitation, a zoning ordinance relating to marihuana establishments or municipal licensing, since the state operating license was issued, and a description of any change or changes; and
(4) 
Information that the MRA deems necessary for determining whether or not a state license under the MRTMA should be issued or renewed.
(c) 
Recommendation to LARA or the MRA that a state operating license for a marihuana establishment in the City of Coldwater be restricted or not renewed. The City Clerk shall provide specific written input and information necessary for the MRA or LARA to consider the recommendation.
Nothing in this chapter shall be construed in such a manner as to conflict with the MMFLA, the MMA, the MRTMA, or other applicable state marihuana laws or rules. If any provision of this chapter differs from a provision of any other applicable law, ordinance, rule, or regulation, both the provision of this chapter and the differing provision shall apply if possible. If the two provisions are in conflict, then the provision establishing the higher or stricter standard shall apply, consistent with state law.
The provisions of this chapter are hereby declared to be severable. If any clause, sentence, word, article, section or provision is hereafter declared void or unenforceable for any reason by a court of competent jurisdiction, the remainder of this chapter shall continue in full force and effect.
[Amended 8-24-2020 by Ord. No. 837]
Applications for municipal marihuana licenses for all establishments in the D-2 Heavy Industrial District shall not be accepted before September 1, 2020. Applications for municipal marihuana licenses for all establishments in the C-2 and C-4 shall not be accepted before October 16, 2020.
This chapter shall be effective 21 days after adoption and after publication.