[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.
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 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]
(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 a second extension, not to exceed
six months from the end of the first extended period, upon payment
of the nonrefundable application fee for municipal license renewal.
The City Clerk may grant a second 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 licensed property. For purposes of this subsection,
"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.
(d)
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)
Required documentation. Each marihuana establishment shall be operated
from the municipally licensed premises on the municipally licensed
property. No 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.
(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.
(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.
(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.
