[HISTORY: Adopted by the City Commission of the City of Royal Oak as indicated in article histories. Amendments noted where applicable.]
[Adopted 7-27-2020 by Ord. No. 2020-06]
The following words, terms and phrases, when used in this article, shall have the meanings ascribed as follows:
Unless specifically stated to mean a state license, means an individual, organization, partnership, company, corporation, enterprise, or other entity that applies for a municipal license as well as the person or persons associated with the applicant.
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 herein 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, as may be amended.
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 concerning the licensing of intellectual property, including, but not limited to, brands and recipes.
An application for a municipal license under this article and includes all supplemental documentation attached or required to be attached thereto; the person filing the application shall be known as the "applicant."
The items required as part of an application submitted to the City prior to them being accepted as complete as provided in § 435-4.
The Marihuana Licensing Board, as anticipated by the MRTMA to be created at LARA in order to regulate and administer state licenses.
The City of Royal Oak Clerk or his/her designee.
Marihuana businesses holding two or more types of state operating licenses under the MRTMA and MMFLA operating within a single location.
To propagate, breed, grow, harvest, dry, cure, or separate parts of the marihuana plant by manual or mechanical means.
The Michigan State Department of Licensing and Regulatory Affairs or any authorized designated Michigan agency authorized to regulate, issue, or administer a Michigan license for a marihuana establishment.
A commercial space that is licensed by the Department and authorized to permit adults 21 years of age and older to consume marihuana products at the location indicated on the state license.
[Amended 6-26-2023 by Ord. No. 2023-06]
A license issued to a person holding five class C marihuana grower licenses and licensed to cultivate marihuana and sell or otherwise transfer marihuana to marihuana establishments.
A person licensed to cultivate marihuana and sell or otherwise transfer marihuana to marihuana establishments.
A current and valid license for a marihuana establishment issued by the State of Michigan.
A person holding a current and valid Michigan license for a marihuana establishment.
That term as defined in Section 3 of the MRTMA, MCLA 333.27953, as may be amended.
Any equipment, product, material, or combination of equipment, products, or materials, which is specifically designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, containing, ingesting, inhaling, or otherwise introducing marihuana into the human body.
The resin extracted from any part of the plant of the genus cannabis.
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 by the Department pursuant to MCLA 333.27951, as may be amended.
A person licensed to apply for a temporary marihuana event license under these rules.
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 topical formulation, tincture, beverage, edible substance, or similar product containing marihuana and other ingredients and that is intended for human consumption.
Public Act 281 of 2016, MCLA 333.27101 et seq., as may be amended.
Public Act 282 of 2016, MCLA 333.27901 et seq., as may be amended.
2008 IL 1, MCLA 333.26421 et seq., as may be amended.
A current and valid license for a marihuana establishment issued under this article, which shall be granted to a municipal license holder only for and limited to a specific municipally licensed premises and a specific municipally licensed property. Said municipal license shall be in addition to the special use permit and site plan approval required to be obtained pursuant to the City Zoning Ordinance.
An individual, organization, partnership, company, corporation, enterprise, or other entity that holds a current and valid municipal license issued under this article as well as the person or persons associated with the municipal license holder as applicant(s) for that municipal license.
An unissued permit available to be issued to an applicant.
The particular building, buildings, or tenant space within which the municipal license holder will be authorized to conduct the facility's activities pursuant to the municipal license.
The real property comprised of a lot, parcel, or other designated unit of real property upon which the municipally licensed premises is situated.
A natural person, company, partnership, profit or nonprofit corporation, limited liability company, or any joint venture for a common purpose.
The particular building, buildings, section of land, or tenant space within which a particular use is conducted.
Any area in which the public is invited or generally permitted in the usual course of business.
Rules promulgated by the Department in consultation with the Board to implement the Act, including the LARA Rules, as may be amended.
A person licensed to test marihuana, including certification for potency and the presence of contaminants.
A preexisting public or private school with a curriculum equivalent to kindergarten through 12th grade.
A person licensed to obtain marihuana form marihuana establishments in order to transport marihuana to marihuana establishments.
More than one state license issued to a single licensee to operate as a Class C marihuana grower as specified in each state license at a marihuana establishment.
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.
The time period set by the City Manager to receive applications for evaluation by the competitive process as specified in this article.
A.
The City hereby authorizes the operation of the following types of marihuana establishments:
B.
The following number of municipal licenses can be issued for each authorized marihuana establishment type:
(1)
Growers, Class A: one.
(2)
Growers, Class B: one.
(3)
Growers, Class C: one.
(4)
Processors: one.
(5)
Retailers: two total but only in the General Business Zone (as defined by § 770-41 of the City of Royal Oak Zoning Ordinance and the Zoning Map) or General Industrial Zone (as defined by § 770-44 of the City of Royal Oak Zoning Ordinance and the Zoning Map), except that no more than one may be located in the General Business Zone.
(6)
Safety compliance facilities: one.
(7)
Secure transporters: one.
(8)
Marihuana microbusiness: two total but only in the General Business Zone (as defined by § 770-41 of the City of Royal Oak Zoning Ordinance and the Zoning Map) or General Industrial Zone (as defined by § 770-44 of the City of Royal Oak Zoning Ordinance and the Zoning Map), except that no more than one may be located in the General Business Zone.
C.
No person shall operate a marihuana establishment at any time or any location within the City unless a currently effective municipal license for that person at that location has been issued under this article. No marihuana establishments are allowed nor shall a municipal license be considered or granted for those activities and facilities defined as a "special license," being a state license described under Section 8 of the MRTMA and issued by the State pursuant to Section 9 of the MRTMA, MCLA §§ 333.2795 and 333.27959, as may be amended, including, but not limited to, designated consumption establishment, excess marihuana grower, marihuana event organizer, temporary marihuana event, and any special license types hereafter recognized by the State.
[Amended 2-12-2024 by Ord. No. 2024-02]
D.
Marihuana establishments shall operate only as allowed under this article.
E.
The City Manager is granted the power to fully and effectively implement and administer the municipal license application process.
F.
The requirements set forth in this article shall be in addition to, and not in lieu of, any other licensing or municipal licensing requirements imposed by applicable federal, state, or local laws, regulations, codes, or ordinances.
G.
As specified in this article, each applicant shall pay nonrefundable review fees, application fees, annual fees, renewal fees and inspection fees for municipal licenses to the City to defray the costs incurred by the City for inspection, administration and enforcement of the local regulations regarding marihuana establishments. The City Commission shall by resolution set the fees in an amount not to exceed any limitations imposed by Michigan law. The municipal license fee requirement shall be in addition to, and not in lieu of, any other licensing and permitting requirements imposed by any other federal, state or City law or ordinance, including, by way of example, any applicable zoning or building permits.
H.
The City has no obligation to process or approve any incomplete application.
I.
A municipal license shall remain valid for one year following removal of all stipulations on an issued municipal license.
J.
It is the sole and exclusive responsibility of each municipal license holder or applicant at all times during the application period and during its operation to immediately provide the City with all material changes in any information submitted on an application and any other changes that may materially affect any state license or its City municipal license.
K.
No municipal license issued under this article may be assigned or transferred to another person or entity except as specified in this article. No municipal license issued under this article is transferrable to any other location except for the municipally licensed premises on the municipally licensed property.
L.
The original municipal license issued under this article shall be prominently displayed at the municipally licensed premises in a location where it can be easily viewed by the public, law enforcement and administrative authorities.
M.
A municipal license holder may not engage in any other marihuana establishment in the municipally licensed premises or on the municipally licensed property, or in its name at any other location within the City, without first obtaining a separate municipal license.
N.
No municipal license shall be granted or renewed for a marihuana establishment in a residence.
O.
Co-located facilities are subject to state law for multiple uses per premises, subject to the City Manager or his designee's determination that such uses are compatible together at that location, are consistent on a shared basis with all the provisions of the MRTMA and each use is consistent with zoning and other provisions of the City Code of Ordinances. If these conditions are met, more than one business may be located on one parcel.
In addition to the terms of this article, any marihuana establishment shall comply with all City ordinances, including, without limitation, the City Zoning Ordinance, and with all other applicable state and local ordinances, laws, codes and regulations.
A.
Application documents. Application documents for a municipal license for a marihuana establishment shall be submitted to the City Clerk and on or after the effective date of this article shall contain the following information. Information obtained from the applicant is exempt from public disclosure under state law. Upon receipt, review, and approval as outlined in this article of all application documents by City staff, the documents will be considered a complete application.
(1)
The name, address, phone number and email address of the applicant and the proposed marihuana establishment.
(2)
The names, home addresses and personal phone numbers for all applicants and the marihuana establishment.
(3)
One copy of the following:
(a)
Prequalification for a recreational marihuana establishment license or a medical marihuana facility license by the State of Michigan.
[Amended 10-12-2020 by Ord. No. 2020-12]
(b)
For Class A, B, or C growers or processors or microbusinesses, documentary evidence by a licensed engineer demonstrating the electric system's ability to deliver the estimated peak capacity (kW) and energy (kWh) of the marihuana establishment.
(c)
All documentation of the applicant's valid tenancy, ownership, or other legal interest in the proposed municipally licensed property and municipally licensed premises. If the applicant is not the owner of the proposed municipally licensed property and municipally licensed premises, a notarized statement from the owner of such property authorizing the use of the property for a marihuana establishment.
(d)
If the applicant is a corporation, nonprofit organization, limited liability company or any other entity other than a natural person, indicate its legal status, attach a copy of all company formation documents (including amendments), proof of registration with the State of Michigan, and a certificate of good standing.
(e)
A valid, unexpired driver's license or state-issued ID for all applicants for the proposed marihuana establishment.
(f)
Evidence of a valid sales tax license for the business if such a license is required by state law or local regulations.
(g)
Nonrefundable marihuana establishment application document review fee.
(h)
Business and operations plan, showing in detail the marihuana establishment's proposed plan of operation, including, without limitation, the following:
[1]
A description of the type of marihuana establishment proposed and the anticipated or actual number of employees.
[3]
A description by category of all products to be sold.
[4]
An affidavit indicating the applicant will, prior to applying for a building permit:
[a]
Submit a list of material safety data sheets for all nutrients, pesticides, and other chemicals proposed for use in the marihuana establishment.
[b]
Submit a comprehensive report identifying all hazardous materials and processes that will be utilized by the marihuana establishment. This list must include all cleaning supplies, as well as chemicals used and/or produced either as products or as waste products in the processes at the establishment. The report shall determine the acceptability of technologies, processes, products, facilities, materials and uses attending the design, operation, or use of a building or premises. All hazardous materials and chemicals must be listed as to how to handle the disposal of these materials. The opinion and report shall be prepared by a qualified third person, firm or corporation approved by the City.
[5]
A description and plan of all equipment and methods that will be employed to stop any impact to adjacent uses, including enforceable assurances that no odor will be detectable from outside of the municipally licensed premises.
[6]
A plan for the disposal of marihuana and related by-products that will be used at the marihuana establishment.
(i)
Whether any applicant has ever applied for or has been granted any commercial license or certificate issued by a licensing authority in Michigan or any other jurisdiction that has been denied, restricted, suspended, revoked, or not renewed and a statement describing the facts and circumstances concerning the application, denial, restriction, suspension, revocation, or nonrenewal, including the licensing authority, the date each action was taken, and the reason for each action.
(j)
A site plan of the municipally licensed premises and the municipally licensed property prepared in accordance with § 770-12, Site plan review, of the City Zoning Ordinance, signed and sealed by a registered architect, or professional engineer site plan must include the distance between the municipally licensed premises and all applicable buffered uses identified in § 435-5A(5) of this article, unless those uses are greater than 1,500 feet from the municipally licensed premises.
(k)
The amount of water usage estimated for the facility, including the estimated average gallons per day and peak gallons per minute as well as estimated needs for fire suppression, if applicable.
(l)
Information regarding any other marihuana establishment or medical marihuana facility that the applicant or any of the applicant's owners, directors, officers or managers is authorized to operate in any other jurisdiction within the state, or another state, and their involvement in each marihuana establishment or medical marihuana facility.
(4)
Any other information reasonably requested by the City to be relevant to the processing or consideration of the application.
B.
Review of application documents. Applications must be complete and shall be considered on a competitive basis as required and set forth by MCLA 333.27959.4, as may be amended. All application documents submitted by a potential applicant will be reviewed by City staff for completeness with the requirements of § 435-4 of this article before being considered a complete application. All application documents will be stamped or otherwise identified by City staff at the date and time they are submitted by a potential applicant.
(1)
City staff has a reasonable amount of time to review the application documents and determine if they are complete.
(2)
Complete application documents will be accepted as an application under this article and processed. A determination of a complete application shall not prohibit the City from requiring supplemental information at any time during the application process.
(3)
If application documents are found to be incomplete, the prospective applicant will be notified in writing of the deficiencies and given 10 business days to correct those deficiencies.
(a)
If the deficiencies are corrected within the 10 business days, the application documents will be considered complete and accepted as an application under this article.
(b)
If deficiencies are not corrected within the 10 business days, the application documents will be returned to the prospective applicant. If the prospective applicant wishes to resubmit application documents, they must be resubmitted in their entirety with a new application document review fee. This resubmission will be considered a new set of application documents and will be newly date and time stamped.
C.
Competitive process per MCLA 333.27959.4, as may be amended.
(1)
If a marihuana establishment type has a limited number of municipal licenses available to be issued due to a cap imposed herein, the City Manager shall open a window. The timing and duration of the window shall be determined by the City Manager. If a municipal license is available for a marihuana establishment type limited by cap, the City Manager must open a window at least once per calendar year.
(2)
At the end of a window, if the number of applications for a marihuana establishment municipal license exceeds the number of available municipal licenses, the City shall decide among applications by a competitive process intended to select the applicant(s) who are best suited to operate in compliance with the Act within the City.
(3)
Applications to be included in the competitive process include all those whose application documents were date and time stamped as submitted prior to the end of the window and which were able to be considered complete and accepted as an application.
(4)
The applicants and their applications will be ranked in the order of which is best suited to operate in compliance with the Act within the City as determined by the City Manager or his or her designee. This ranking will be used to fill available municipal license slots, starting with the best-suited applicant and application, until all available municipal license slots are filled. The competitive criteria to be used shall be as follows:
(a)
Review of the applicant's completely submitted, detailed application (including plans which address the provisions of this section and related provisions, such as security, lighting, processing, handling of hazardous waste, site plans, recordkeeping, disposal, water/utility, ventilation, odor, etc.), which illustrates the likely success of the proposed business, in harmony with surrounding properties at the proposed site;
(b)
Whether the applicant is currently in default/arrears on any taxes or fees otherwise due to the City, has a history of noncompliance or violations with City ordinances or applicable laws, or has been served with any complaint or notice filed by or with any public body regarding the delinquency in the payment of any tax required under federal, state or local law;
(c)
Whether the applicant is/was a business operating in the City of Royal Oak within the past two years;
(d)
Whether the applicant has a history of criminal conviction/plea, other than as specified by the MRTMA, MCLA 333.27958.1(c), as may be amended;
(e)
Whether the applicant has ever applied for or has been granted any commercial license or certificate issued by a licensing authority in Michigan or any other jurisdiction that has been denied, restricted, suspended, revoked, or not renewed, or has proceedings pending related to such;
(f)
Whether the applicant filed, or had filed against it/him/her, a proceeding for bankruptcy or been involved in any formal process to adjust, defer, suspend or otherwise work out payment of a debt in the past seven years;
(g)
Whether there is planned future outreach on behalf of the proposed business and whether the applicant has made, or plans to make, significant physical improvements to the building housing the marihuana establishment;
[Amended 10-12-2020 by Ord. No. 2020-12]
(h)
Whether the applicant has taken steps to encourage employee retention, attract highly capable workers, train employees, and any other employee-employer factors tending to show a successful workforce;
(i)
Whether the applicant has taken steps to include equity, diversity, and inclusion in their operations that would tend to yield greater profitability, innovation, and more-effective teamwork; and
(j)
Whether the proposed plan incorporates sustainable infrastructure and energy-efficient elements and fixtures.
D.
Processing and review of applications.
(1)
An application will be held until a window is established to select the applications to fill an available municipal license slot.
(2)
An application will be considered for a municipal license slot through the competitive process as specified in this article. When an applicant is awarded the municipal license slot through the competitive process, the applicant will be notified and will be given five business days to pay the marihuana establishment application fee. If an applicant does not pay the fee within the time allotted, the next application as ranked by the competitive process during the applicable window will be issued the municipal license slot.
(3)
Upon payment of the marihuana establishment application fee by an applicant, the City Clerk shall refer a copy of the application to the department head or designated staff person of the following for their review and approval: the Police Department, the Fire Department, the Community Development Department (Building Division, Engineering Division and Planning Division) and any other applicable departments.
(4)
In order for a marihuana establishment application to be approved and a municipal license to be issued, all of the following conditions must be met:
(a)
The applicant has passed a criminal background check conducted by the City of Royal Oak Police Department.
(b)
The Engineering Division will complete a preliminary review of the wastewater plan submitted.
(c)
The Engineering Division will confirm that the necessary amount of water for the marihuana establishment is available and complete preliminary review of the plan submitted that includes the requested water pressure and fire flow protections.
(d)
The Community Development Department will review all provided plans to ensure conformity with their previously supplied determination on the ability to supply electricity to the proposed marihuana establishment and general site requirements.
(e)
The Planning Division has confirmed that the proposed location complies with the buffer requirements, and a preliminary review of the plan submitted.
(f)
A special land use permit and site plan application has been submitted, permit fees have been paid, and the special land use permit and site plan has been approved by the City Commission after recommendation from the Planning Commission.
(g)
The applicant must not have a conviction of or release from incarceration for a felony under the laws of this state, any other state, or the United States within the past 10 years or conviction of a controlled-substance-related felony within the past 10 years, except that, consistent with MCLA 333.27958.1(c), as may be amended, a prior conviction solely for a marihuana-related offense does not disqualify an individual or otherwise affect eligibility for licensure, unless the offense involved distribution of a controlled substance to a minor.
(h)
Other than as set forth in MCLA 333.27958.1(c), as may be amended, within the past five years, conviction of a misdemeanor involving a controlled substance, theft, dishonesty, or fraud in any state or having been found responsible for violating a local ordinance in any state involving a controlled substance, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state.
(i)
The applicant has not knowingly submitted an application for a license that contains false, misleading, or fraudulent information, or has not intentionally omitted pertinent information on the application for a municipal license.
(5)
Following review by City departments and prior to approval of a special land use permit and site plan, if deficiencies are found in the application, the applicant is notified in writing of the areas of deficiency and given 30 days to correct those deficiencies. If the deficiencies are considered by City staff to be corrected, the applicant's special land use permit and site plan will be considered by the Planning Commission. If the deficiencies are not considered to be corrected within the thirty-day time period, the application will be deemed incomplete and denied. Another application will then fill the municipal license slot.
(6)
All inspections, review and processing of the application shall be completed within 90 days of payment of the marihuana establishment application fee or within 120 days if the location of the municipally licensed premises is proposed to be amended from an existing municipally licensed location. The processing time may be extended upon written notice by the City for good cause, and any failure to meet the required processing time shall not result in the automatic grant of the municipal license.
(7)
If all the conditions of this article have been met, the City Clerk shall issue the municipal license to the applicant.
[Amended 6-26-2023 by Ord. No. 2023-06; 4-8-2024 by Ord. No. 2024-04]
(a)
All municipal licenses issued have the following stipulations:
[1]
Issuance of license qualification by the State of Michigan for the municipal license holder under state law and the City of Royal Oak receiving a copy of that license qualification prior to occupancy.
[2]
Issuance of final certificate of occupancy for the municipally licensed premises by the Community Development Department. All construction must be in accordance with applicable zoning ordinances, building codes, and any other applicable state or local laws, rules, or regulations.
[3]
For processors and Class A, B, and C growers and microbusinesses proposing to connect to or to contribute to the POTW, a wastewater discharge permit.
[4]
Issuance of final approval by the State of Michigan and the City of Royal Oak receiving a copy of the final approval prior to the business opening.
(b)
A municipal license holder has one year from the date of issuance to meet all stipulations of the municipal license. If all stipulations are not met in this time frame, the municipal license is revoked and considered denied. A municipal license holder may request one extension not to exceed six months from the license's original expiration date, which may be granted by the City Clerk.
(c)
If a municipal license holder obtains a first extension but has not met all stipulations of the municipal license at the end of the extended period, it may request up to four additional subsequent extensions not to exceed six months from the end of each extended period, upon payment of the nonrefundable application fee for the municipal license renewal. The City Clerk may grant an extension only upon receipt of written evidence supplied by the municipal license holder that either of the following conditions exists:
[1]
The license holder has a current, unexpired building permit and is actively engaged in construction of the approved improvements on the municipally licenses property. For purposes of this subparagraph, "actively engaged in construction" means that the license holder demonstrates that workers are on-site performing construction and are being paid for their work, and that the license holder has complied with all conditions of the building permit, including but not limited to obtaining regular, required inspections.
[2]
All approved improvements on the municipally licensed property are complete, the license holder has applied to the Department for a state marihuana license, and the license holder has not received a response to its application from the Department. If the municipal license holder receives a state license from the Department, the renewal fee paid with the request for a second extension shall be valid for one year from the effective date of the state license.
|
If neither of the foregoing conditions exists, the municipal license is revoked and considered denied at the end of the first extension period.
|
(8)
If a municipal license is denied, the denial must be in writing and must state the reason(s) for denial.
(a)
Applications which are denied will not be refunded the marihuana establishment application fee.
(b)
If the applicant of a denied application chooses to resubmit, this resubmission will be considered a new set of application documents and will be date and time stamped at the date and time they are resubmitted. A new marihuana establishment application fee will be required.
(9)
Upon denial, withdrawal, or failure for any reason of an application within six months of a competitive process being used to rank applicants and their applications as detailed in § 435-4C, the available municipal license slot will be awarded to the next best suited applicant and application as determined in that process. However, if more than six months have passed since the last competitive process, a new window must be opened to fill the municipal license slot and all applications will be treated as new submissions.
(10)
Denial of an application or nonrenewal of a municipal license may be appealed to the City Manager, who will set a date and time within 10 business days to conduct a hearing where the applicant can be heard. The City Manager may uphold the denial, reverse the denial, or take such other action deemed appropriate. Appeals from the final determination of the City may be taken to a court of competent jurisdiction; during appeal, another applicant for a municipal license slot may be considered by the City.
E.
Renewal application. Renewal applications shall require City approval.
(1)
Renewal applications for a marihuana establishment maintaining the location of the municipally licensed premises shall be received by the City Clerk not less than 90 days prior to the expiration of the annual municipal license. Renewal applications for a marihuana establishment requesting a change in the location of the municipally licensed premises shall be submitted and received not less than 120 days prior to the expiration of the municipal license.
(2)
A renewal application must follow the same approval process as all new applications with the exception of the following:
[Amended 6-26-2023 by Ord. No. 2023-06]
(a)
With the renewal application, a municipal license holder must pay the nonrefundable application fee for annual renewal of a recreational marihuana establishment license.
(b)
A municipal license holder that submits an application for a renewal municipal license at a previously municipally licensed premises shall be deemed in compliance with the spacing requirements set forth in § 435-5A(5) of this article.
(c)
For any information required as part of the application process that has not changed, the municipal license holder may submit an affidavit of no changes in place of the information when submitting a renewal application. If any of the items requested in the application process has changed, such items must be submitted as required in this article.
(d)
A municipal license holder, as a stipulation of a renewal municipal license issued by the City, must provide proof of having submitted a license renewal application no later than 30 days after expiration of their state license. Once a renewed state license has been granted, a copy must be provided to the City of Royal Oak.
(e)
A renewal municipal license issued by the City takes effect on the date of expiration of the original municipal license issued, and the municipal license holder has one year from that date until renewal is again required.
(3)
A municipal license holder whose municipal license expires and for which a complete renewal application has not been received by the expiration date shall be deemed to have forfeited the municipal license under this article. They will be considered denied. The City will not accept renewal applications after the expiration date of the municipal license.
(4)
A municipal license holder issued a renewal municipal license by the City that is either denied a renewal license by the State of Michigan or that does not meet all stipulations within six months of the renewal municipal license being issued will have their municipal license revoked and considered denied.
F.
Changes to application or municipal license.
(1)
If, at any time before or after a municipal license is issued pursuant to this article, any information required in the municipal license application, the MMFLA, MRTMA, or any rule of regulation promulgated thereunder, changes in any way from that which is stated in the application, the applicant or municipal license holder shall supplement such information in writing within 10 days from the date upon which such change occurs.
(a)
Changes to a new application will be considered a minor or major change as determined by the City Clerk.
[1]
Minor changes include a change to person or persons associated with the applicant entity, additional MSDS pages being provided, updating power, water or wastewater calculations or other similar information. Minor changes will be accepted as part of the application.
[2]
Major changes include changing the location of the marihuana establishment, whether it be to a different site or changing the size of any new buildings, a change of marihuana establishment type, a change of applicant entity, or other similar changes. A major change will result in the application being returned to the applicant. If the applicant wishes to resubmit, the resubmission will be considered a new set of application documents and will be date and time stamped for processing at the date and time they are resubmitted. Any fees will not be waived.
(2)
An applicant or municipal license holder has a duty to notify the City in writing of any pending criminal charge, and any criminal conviction, of a felony or other offense involving a crime of moral turpitude by the applicant, any owner, principal officer, director, manager, or employee within 10 days of the event.
(3)
An applicant or municipal license holder has a duty to notify the City in writing of any pending criminal charge, and any criminal conviction, whether a felony, misdemeanor, petty offense, or any violation of a local law related to the cultivation, processing, manufacture, storage, sale, distribution, testing or consumption of any form of marihuana, the MMMA, the MMFLA, the MRTMA, any building, fire, health or zoning statute, code or ordinance related to the cultivation, processing, manufacture, storage, sale, distribution, testing or consumption of any form of marihuana by the applicant, any owner, principal officer, director, manager, or employee within 10 days of the event.
(4)
A municipal license may be assigned or transferred only if all of the following are true:
(a)
A municipal license has been issued and all stipulations for that license have been met including written final approval by the State of Michigan for state licensure.
(b)
All current municipal license holders submit an affidavit approving the transfer.
(c)
The person(s) or entity proposed to receive the transferred municipal license submit application documents and are issued a municipal license transfer approval. Issuance of a municipal license transfer approval includes the following:
[1]
Certification of a completed application per the process of this article. The applicant may submit an affidavit of no change to the municipally licensed premises to forego the application requirements as they pertain to the municipally licensed premises if no physical changes will be completed as part of the assignment or transfer.
[2]
Payment of a license transfer review fee as set by the City Commission.
[3]
Review of the application per § 435-4D(4)(c)-(f). If an affidavit of no change to the municipally licensed premises is submitted, review of corresponding information and the requirement for a special land use permit and site plan approval would be considered satisfied.
[4]
Issuance or denial of the municipal license transfer approval will be completed per § 435-4D(4)(g)-(i). Stipulations of § 435-4D(7)(a) will be considered met when the applicant has all required licenses or permits in their name. Where an affidavit of no change to the municipally licensed premises has been filed, the stipulation for a required proof of final occupancy will be waived.
[5]
Until the municipal license transfer approval is issued, the existing municipal license will remain with the current municipal licensee holder. Transfer of the municipal license will not change its date of expiration.
G.
Expiration of application. If an application has been held waiting for a municipal license window to open for one year, the City will contact the applicant and request, in writing, confirmation that the application is accurate and that the application should be kept on file. If the applicant asks the application to be removed, or if confirmation in writing is not received in 10 business days, the application will be removed from the list of applications and a letter sent to the applicant. If the applicant wishes to resubmit after this point, this resubmission will be considered a new set of application documents and will be date and time stamped for processing order at the date and time they are resubmitted. A new marihuana establishment application fee will be required.
A.
A marihuana establishment issued a municipal license under this article and operating in the City shall at all times comply with the following operational requirements, which the City may review and amend from time to time as it determines reasonable.
(1)
Scope of operation. Marihuana establishments shall comply with all respective applicable codes of the local zoning, building, and health departments. The marihuana establishment must hold a valid local municipal license and state marihuana establishment license for the type of marihuana establishment intended to be carried out on the municipally licensed property. The marihuana establishment operator, owner or licensee must have documentation available that local and state sales tax requirements, including holding any licenses, if applicable, are satisfied.
(2)
Permanent location. Each permanent marihuana establishment shall be operated from the municipally licensed premises on the municipally licensed property. No permanent marihuana establishment shall be municipally licensed to operate from a movable, mobile or transitory location, except for a municipally licensed or licensed secure transporter when engaged in the lawful transport of marihuana. No person under the age of 18 shall be allowed to enter into the municipally licensed premises without a parent or legal guardian.
[Amended 2-12-2024 by Ord. No. 2024-02]
(3)
Security. Municipal license holders shall at all times maintain a security system that meets state law requirements and, in addition, shall also include the following:
(a)
Robbery and burglary alarm systems which are professionally monitored and operated 24 hours a day, seven days a week, and which will contact local law enforcement if triggered;
(b)
A locking safe permanently affixed to the municipally licensed premises that shall store all marihuana and cash remaining in the marihuana establishment overnight;
(c)
All marihuana in whatever form stored at the municipally licensed premises shall be kept in a secure manner and shall not be visible from outside the municipally licensed premises, nor shall it be grown, processed, exchanged, displayed or dispensed outside the municipally licensed premises; and
(d)
All security recordings and documentations shall be preserved for at least 30 days by the municipal license holder and made available to any law enforcement upon request for inspection.
(4)
Operating hours. No retailer or retail portion of a microbusiness shall operate between the hours of 8:00 p.m. and 8:00 a.m.
(5)
Required spacing.
[Amended 6-26-2023 by Ord. No. 2023-06]
(a)
The following spacing requirements for marihuana establishments are required:
[1]
Except as provided in Subsection A(5)(c), no marihuana establishment shall be permitted within a 1,000-foot radius of any school.
[2]
Except as provided in Subsection A(5)(c), no marihuana retailer or marihuana microbusiness shall be permitted within a 1,000-foot radius of any existing retailer or microbusiness.
[3]
Measurement of either radius shall be made from the outermost boundaries of the lot or parcel upon which the respective establishments are or would be situated.
(b)
Except as provided in Subsection A(5)(c), spacing requirements become effective upon issuance of a municipal license, whether conditional or not.
(c)
Deviation from, including reduction of, the required spacing set forth in Subsection A(5)(c), may be granted by the City Commission, provided there are features or elements demonstrated by an applicant and deemed adequate by the City Commission to protect the public health, safety and general welfare from excessive noises, traffic, obnoxious and unhealthy odors, and any detrimental effects from the general operation of the establishment, and to minimize any adverse effect on the character of the surrounding area.
(6)
Amount of marihuana. The amount of marihuana on the municipally licensed property and under the control of the municipal license holder, owner or operator of the marihuana facility shall not exceed that amount permitted by the state license or the City's municipal license.
(7)
Sale of marihuana. The marihuana offered for sale and distribution must be packaged and labeled in accordance with state law. The marihuana establishment is prohibited from selling, soliciting, or receiving orders for marihuana or marihuana products over the internet.
(8)
Sign restrictions. No signs, pictures, photographs, drawings or other depictions shall appear on the outside of any municipally licensed premises nor be visible outside of the municipally licensed premises on the municipally licensed property nor advertise in a way that is inconsistent with the provisions of the MRTMA, LARA rules, or the City of Royal Oak Sign Ordinance.
(9)
Use of marihuana. The sale, consumption or use of alcohol or tobacco products on the municipally licensed premises is prohibited. Smoking or consumption of controlled substances, including marihuana, on the municipally licensed premises is prohibited except for a properly licensed temporary marihuana event.
[Amended 2-12-2024 by Ord. No. 2024-02]
(10)
Indoor operation. All activities of marihuana establishment, including, without limitation, distribution, growth, cultivation, or the sale of marihuana, and all other related activity municipally licensed under the municipal license holder's license or municipal license, must occur indoors. The marihuana establishment's operation and design shall minimize any impact to adjacent uses, including the control of any odor by maintaining and operating an air filtration system so that no odor is detectable outside the municipally licensed premises. No consumption of marihuana shall take place on the premises of a marihuana establishment except for a properly licensed temporary marihuana event.
[Amended 2-12-2024 by Ord. No. 2024-02]
(11)
Distribution. No person operating a marihuana establishment shall provide or otherwise make available marihuana to any person who is not legally authorized to receive marihuana under state law.
(12)
Permits. All necessary building, electrical, plumbing and mechanical municipal licenses must be obtained for any part of the municipally licensed premises in which electrical, wiring, lighting or watering devices that support the cultivation, growing, harvesting or testing of marihuana are located.
(13)
Waste disposal. The municipal license holder, owner and operator of the marihuana establishment shall use lawful methods in controlling waste or by-products from any activities allowed under the license or municipal license. All waste or by-products stored must be contained in a dumpster that is locked or located within a locked enclosure.
(14)
Proof of insurance. A municipal license holder shall at all times maintain in full force and effect for the duration of the license workers' compensation insurance as required by state law, and general liability insurance with minimum limits of $1,000,000 per occurrence and a $2,000,000 aggregate limit issued from a company licensed to do business in Michigan. A municipal license holder shall provide proof of insurance to the City Clerk in the form of a certificate of insurance evidencing the existence of a valid and effective policy which discloses the limits of each policy, the name of the insurer, the effective date and expiration date of each policy, the policy number, and the names of the additional insureds. The policy shall name the City of Royal Oak and its officials and employees as additional insureds to the limits required by this subsection. A licensee or its insurance broker shall notify the City of any cancellation or reduction in coverage within seven days of receipt of insurer's notification to that effect. The licensee, permittee, or lessee shall forthwith obtain and submit proof of substitute insurance to the City Clerk within five business days in the event of expiration or cancellation of coverage.
(15)
Transportation.
(a)
Marihuana may be transported by a secure transporter within the City under this article, and to effectuate its purpose, only:
(b)
No vehicle used for the transportation or delivery of marihuana under this article shall have for markings the words "marihuana," "marijuana" or "cannabis" or any similar words; pictures or other renderings of the marihuana plant; advertisements for marihuana or for its sale, transfer, cultivation, delivery, transportation or manufacture; or any other word, phrase or symbol indicating or tending to indicate that the vehicle is transporting marihuana.
(c)
No vehicle may be used for the ongoing or continuous storage of marihuana, but it may only be used incidental to, and in furtherance of, the transportation of marihuana.
(16)
Additional conditions. The City may impose such reasonable terms and conditions on a marihuana establishment special use as may be necessary to protect the public health, safety and welfare and to obtain compliance with the requirements of this article and applicable law.
A.
In addition to any other penalties or legal consequences provided under applicable federal, state and local law, regulations, codes and ordinances, a violation of the provisions of this article or failure to comply with any of the requirements of this article shall constitute a misdemeanor, punishable by up to 93 days in jail and/or a fine of up $500, plus the costs of prosecution. Each day a violation continues shall be considered a separate offense.
B.
The owner of record or tenant of any building, structure or premises, or part thereof, and any architect, builder, contractor, agent or person who commits, participates in, assists in or maintains such violation may each be found guilty of a separate offense and suffer the penalties and forfeitures provided above, except as excluded from responsibility by state law.
C.
In addition to any other remedies, the City may institute proceedings for injunction, mandamus, abatement, or other appropriate remedies to prevent, enjoin, abate, or remove any violations of this article. The rights and remedies provided herein are both civil and criminal in nature. The imposition of any fine, jail sentence or forfeiture shall not exempt the violator from compliance with the provisions of this article.
A.
By accepting a municipal license issued pursuant to this article, the municipal license holder waives and releases the City, its officers, elected officials, and employees from any liability for injuries, damages or liabilities of any kind that result from any arrest or prosecution of marihuana establishment owners, operators, employees, clients or customers for a violation of state or federal laws, rules or regulations.
B.
By accepting a municipal license issued pursuant to this article, all municipal license holders agree to indemnify, defend and hold harmless the City, its officers, elected officials, employees, and insurers, against all liability, claims or demands arising on account of bodily injury, sickness, disease, death, property loss or damage or any other loss of any kind, including, but not limited to, any claim of diminution of property value by a property owner whose property is located in proximity to a municipally licensed property, arising out of, claimed to have arisen out of, or in any manner connected with the operation of a marihuana establishment or use of a product cultivated, processed, distributed or sold that is subject to the municipal license, or any claim based on an alleged injury to business or property by reason of a claimed violation of the federal Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1964(c), or any other alleged violation of the law.
C.
By accepting a municipal license issued pursuant to this article, a municipal license holder agrees to indemnify, defend and hold harmless the City, its officers, elected officials, employees and insurers, against all liability, claims, penalties, or demands arising on account of any alleged violation of any existing law, including the federal Controlled Substances Act, 21 U.S.C. § 801 et seq., or Chapter 7 of the Michigan Public Health Code, MCLA 333.7101 et seq., as may be amended.
A.
A municipal license granted by this article is a revocable privilege granted by the City and is not a property right. Granting a license does not create or vest any right, title, franchise, or other property interest. Each municipal license is exclusive to the municipal license holder, and a municipal license holder or any other person must apply for and receive the City's approval before a municipal license is transferred, sold, or purchased. A municipal license holder 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 municipal license without prior state and local approval is grounds for suspension or revocation of the municipal license or for other sanction considered appropriate by the City.
B.
Nonrenewal, suspension or revocation of municipal license. The City may, after notice and hearing as provided in § 434-4D(10) of this article, suspend, revoke, or refuse to renew a municipal license for any of the following reasons:
(1)
The applicant or municipal license holder, or his or her agent, manager or employee, has violated, does not meet, or has failed to comply with, any of the terms, requirements, conditions or provisions of this section or with any applicable state or local law or regulation.
(2)
The applicant or municipal license holder, or his or her agent, manager or employee, has failed to comply with any special terms or conditions of its municipal license pursuant to an order of the state or local licensing authority, including those terms and conditions that were established at the time of issuance of the municipal license and those imposed as a result of any disciplinary proceedings held subsequent to the date of issuance of the municipal license.
(3)
The marihuana establishment has been operated in a manner that adversely affects the public health, safety, or welfare.
C.
Evidence to support a finding under this section may include, without limitation, a continuing pattern of conduct, a continuing pattern of drug-related criminal conduct within the premises of the marihuana establishment or in the immediate area surrounding such marihuana establishment, a continuing 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 conduct shall be limited to the violation of a state law or regulation or City ordinance.
A marihuana establishment and all articles of property in the establishment are subject to inspection, search and examination at any time by a member of the Royal Oak Police Department, the Department of State Police, or the Royal Oak Building Department, and the application for a marihuana establishment constitutes consent by the applicant, and all owners, managers, and employees of the marihuana establishment, and the owner of the property to permit the City Manager to conduct routine examination and inspection of the marihuana establishment to ensure compliance with this article or any other applicable law, rule, or regulation without a search warrant and consent to seizure of any surveillance records, camera recordings, reports, or other materials required as a condition of a municipal license without a search warrant.
