City of Corunna, MI Chapter 16 Marihuana Operations; Licensing; Police Powers

§ 16-1 Legislative intent.

[Ord. No. 21-01, 2-1-2021]

(a) The purpose of this chapter is to exercise the police, regulatory, and land use powers of the City by licensing and regulating marihuana operations to the extent permissible under state and federal laws and regulations and to protect the public health, safety, and welfare of the residents of the City; and as such this chapter constitutes a public purpose.

(b) The City finds that the activities described in this chapter are significantly connected to the public health, safety, security, and welfare of its citizens and it is therefore necessary to regulate and enforce safety, security, fire, police, health and sanitation practices related to such activities and also to provide a method to defray administrative costs incurred by such regulation and enforcement.

(c) The City further finds and declares that economic development, including job creation and training, and the protection of the public health, safety, and welfare of City neighborhoods and residents are public purposes.

(d) Except as may be required or permitted by law or regulation, it is not the intent of this chapter to diminish, abrogate, or restrict the protections for medical use of marihuana found in the Michigan Medical Marihuana Act, the Medical Marihuana Facilities Licensing Act, or restrict the protections of marihuana use under the Michigan Regulation and Taxation of Marihuana Act.

§ 16-2 Definitions, interpretation and conflicts.

[Ord. No. 21-01, 2-1-2021]

For the purposes of this chapter:

(a) Any term defined by the Michigan Medical Marihuana Act, MCL 333.26421 et seq., as amended ("MMMA"), the Medical Marihuana Facilities Licensing Act, MCL 333.2701 et seq. ("MMFLA"), as amended, the Marihuana Tracking Act ("MTA"), MCL 333.27901 et seq., the Michigan Regulation and Taxation of Marihuana Act ("MRTMA"), MCL 333.27951 et seq., shall have the definition given in those acts; if the definition of a word or phrase set forth in this chapter conflicts with the definition in the MMMA, MMFLA or MTA, or if a term is not defined but is defined in the MMMA, MMFLA MTA, or MRTMA then the definition in the MMMA, MMFLA, MTA, or MRTMA shall apply.

(b) This chapter shall not limit an individual or entity's rights under the MMMA, MMFLA, MTA, or MRTMA, and these acts supersede this chapter where there is a conflict between them and the immunities and protections established in the MMMA and MRTMA unless superseded or preempted by the MMFLA and/or MRTMA.

(c) All activities related to medical marihuana, including those related to a medical marihuana provisioning center, a medical marihuana grower facility, a medical marihuana secure transporter, a medical marihuana processor or a medical marihuana safety compliance facility shall be in compliance with the rules of the Marihuana Regulatory Agency, the rules of the Michigan Department of Licensing and Regulatory Affairs, or any successor agency, the rules and regulations of the City, the MMMA, MMFLA and the MTA.

(d) All activities related to nonmedical marihuana shall be in compliance with the rules of the Michigan Department of Licensing and Regulatory Affairs, or any successor agency, the rules and regulations of the City and MRTMA.

(e) Any use which purports to have engaged in the cultivation or processing of marihuana into a usable form, or the distribution of marihuana, or the testing of marihuana either prior to or after enactment of this chapter without obtaining the required licensing set forth in this chapter shall be deemed to be an illegally established use and therefore not entitled to legal nonconforming status under the provisions of this chapter, and/or state law. Any license granted pursuant to this chapter shall be exclusive to the licensee, and is a revocable privilege. Granting a license does not create or vest any right, title, franchise, or other property right.

(f) The following terms shall have the definitions given:

APPLICATION/LICENSE APPLICATION

An application for a license pursuant to the terms and conditions set forth in §§ 16-4 and 16-5 of this chapter.

APPLICATION FOR A LICENSE RENEWAL

An application for a license renewal pursuant to the terms and conditions of § 16-7.

BUFFERED USE

A use subject to the buffering and dispersion requirements of §§ 16-10 and 16-11.

BUILDING

An independent, enclosed structure having a roof supported by columns or walls, intended and/or used for shelter or enclosure of persons or chattels. When any portion of a structure is completely separated from every other part by dividing walls from the ground up, and without openings, each portion of such structure shall be deemed a separate structure, regardless of whether the portions of such structure share common pipes, ducts, boilers, tanks, furnaces, or other such systems. This definition refers only to permanent structures, and does not include tents, sheds, greenhouses and private garages on residential property, stables, or other accessory structures not in compliance with MMMA or MRTMA. A building does not include such structures with interior areas not normally accessible for human use, such as gas holders, tanks, smokestacks, grain elevators, coal bunkers, oil cracking towers or similar structures.

CHAPTER

This Chapter 16, Marihuana Operations; Licensing; Police Powers.

CHURCH

An entire space set apart primarily for purposes of public worship, and which is tax exempt under the laws of this state, and in which religious services are held, and the entire building structure of which is kept for that use and not put to any other use inconsistent with that use.

CITY

The City of Corunna, Michigan.

CLERK

The City Clerk of Corunna, Michigan.

CO-LOCATION AND STACKING

Multiple licenses at the same location as allowed by the State of Michigan Department of Licensing and Regulatory Affairs subject to any limitations set by this ordinance or in the City of Corunna Zoning Code.

COUNCIL or CITY COUNCIL

The City Council of Corunna, Michigan.

EMPLOYEE

Any individual who is employed by an employer in return for the payment of direct or indirect monetary wages or profit, under contract, and any individual who volunteers his or her services to an employer for no monetary compensation, or any individual who performs work or renders services, for any period of time, at the direction of an owner, lessee, or other person in charge of a place.

LICENSE

A license issued for the operation of a medical marihuana facility or marihuana establishment pursuant to the terms and conditions of this chapter and includes a license which has been renewed pursuant to § 16-7.

LICENSEE

A person issued a license for a medical marihuana facility or marihuana establishment pursuant to this chapter.

LIMIT

A competitive application process by which the City selects applicants who are best suited to operate in compliance with the Michigan Regulation and Taxation of Marihuana Act and this chapter and prevents the Department of Licensing and Regulatory Affairs from issuing a state license within the City's jurisdiction if the applicant is not selected, in compliance with MCL §§ 333.27956(1) and § 333.27959(4).

MARIHUANA ESTABLISHMENT

Any marihuana operation that is required to be licensed under this chapter and possesses a license or approval to operate under the MRTMA, including a marihuana microbusiness, a marihuana retailer, a marihuana grower, a marihuana processor, a marihuana secure transporter, a marihuana safety compliance facility, and a designated consumption establishment.

MARIHUANA GROWER

A licensee that is a commercial or business entity located in the City that is licensed or approved to operate by the state pursuant to the MMFLA or MRTMA and is licensed by the City pursuant to terms and conditions of this chapter that cultivates, dries, trims or cures and packages marihuana in accordance with state law.

MARIHUANA MICROBUSINESS

A person or entity 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, located in the City that is licensed or approved to operate by the state pursuant to the MRTMA and is licensed by the City pursuant to the terms and conditions of this chapter.

MARIHUANA OPERATION/OPERATOR

All types of medical and nonmedical marihuana establishments and facilities operating in the City that are required to be licensed under this chapter and possess a license or approval to operate under state law.

MARIHUANA PROCESSOR or MEDICAL MARIHUANA PROCESSOR FACILITY

A commercial entity located in the City that is licensed or approved to operate by the state pursuant to the MMFLA or MRTMA and is licensed by the City pursuant to the terms and conditions of this chapter, that extracts resin from the marihuana or creates a marihuana-infused product, processes and packages marihuana, and sells or otherwise transfers marihuana to marihuana operations, to the extent permitted by state law and rules.

MARIHUANA REGULATORY AGENCY or MRA

The agency within the State of Michigan Department of Licensing and Regulatory Affairs created pursuant to Executive Order 2019-07 to regulate medical and recreational marihuana.

MARIHUANA RETAILER

A licensee located in the City that is licensed or approved to operate by the state pursuant to the MRTMA and is licensed by the City pursuant to the terms and conditions of this chapter to obtain marihuana from marihuana establishments and to sell or otherwise transfer marihuana to a marihuana establishment and to individuals who are 21 years of age or older.

MARIHUANA SAFETY COMPLIANCE FACILITY or MEDICAL MARIHUANA SAFETY COMPLIANCE FACILITY

A commercial or business entity located in the City that is licensed or approved to operate by the state pursuant to the MMFLA or MRTMA and is licensed by the City pursuant to the terms and conditions of this chapter, that tests marihuana, including certification for potency, the presence of contaminants, and tetrahydrocannabinol and other cannabinoids.

MAYOR

The City of Corunna Mayor.

MEDICAL MARIHUANA FACILITY

Any facility or center that is required to be licensed under this chapter and possesses a license or approval to operate from the state under the MMFLA, including a medical marihuana provisioning center, a medical marihuana processor, a medical marihuana grower facility, a marihuana secure transporter, and a medical marihuana safety compliance facility.

MEDICAL MARIHUANA PROVISIONING CENTER

A commercial or business entity located in the City that is licensed or approved to operate by the state pursuant to the MMFLA and is licensed by the City pursuant to the terms and conditions of this chapter, that sells, supplies, or provides marihuana to registered qualifying patients only as permitted by state law. Medical marihuana provisioning center, as defined in the MMMA, MMFLA and MTA, includes any commercial property or business where marihuana is sold in conformance with state law and regulation. A noncommercial or nonbusiness location used by a primary caregiver to assist a qualifying patient, as defined in the MMMA, MMFLA or MTA connected to the caregiver through the state's marihuana registration process in accordance with the MMMA, MMFLA or MTA is not a medical marihuana provisioning center for purposes of this chapter.

MMFLA

The Medical Marihuana Facilities Licensing Act, MCL 333.2701 et seq., as amended from time to time.

MMMA

The Michigan Medical Marihuana Act, MCL 333.26421 et seq., as amended from time to time.

MRTMA

The Michigan Regulation and Taxation of Marihuana Act, MCL 333.27951 et seq., as amended from time to time.

MTA

The Marihuana Tracking Act, MCL 333.27901 et seq., as amended from time to time.

MANAGER

The City Manager of Corunna, Michigan.

ORDINANCE

The ordinance adopting this Chapter 16.

PARK

An area of land designated by the City as a park on its master plan or on a Council-approved list of City parks.

PERSON

An individual, partnership, firm, company, corporation, association, sole proprietorship, limited liability company, joint venture, estate, trust, or other legal entity.

SCHOOL

Includes buildings used for school purposes to provide instruction to children and youth in grades prekindergarten through 12, and Head Start when that instruction is provided by a public, private, denominational, or parochial school.

SECURE TRANSPORTER OR MEDICAL MARIHUANA SECURE TRANSPORTER

A commercial or business entity that is licensed or approved to operate by the state pursuant to the MMFLA and is licensed to operate by the City pursuant to the terms and conditions of this chapter, that stores marihuana and transports marihuana between medical marihuana facilities or marihuana establishments for a fee and in accordance with state law.

SECURITY PLAN

(1) A plan preventing unauthorized access to, or theft and pilferage from, a licensed facility approved for operation in the City. The plan shall be subject to review and reasonable approval by the City Manager or his designated City staff, and shall include at a minimum the following components:

a. Adequate perimeter fencing for security and visual requirements set by the state and City;

b. An exterior lighting system;

c. A building security system;

d. An off-site official contact list;

e. Established hours of operation;

f. Such other conditions as may be suitable for the particular license.

(2) A security plan must be approved by the City Manager.

STAKEHOLDER

With respect to a trust, the trustee and beneficiaries; with respect to a limited liability company, the managers and members; with respect to a corporation, whether profit or nonprofit, the officers, directors, or shareholders; and with respect to a partnership or limited liability partnership, the partners, both general and limited.

STATE

The State of Michigan.

WARD

The three wards of the City as outlined in the City Charter.

(g) Any term defined by the MMMA, the MMFLA, MTA, or MRTMA and not defined in this chapter shall have the definition given in the MMMA, MMFLA, MTA, or MRTMA, as applicable.

§ 16-3 Operation without license prohibited.

[Ord. No. 21-01, 2-1-2021]

(a) Every marihuana operation in the City shall be licensed pursuant to the terms and provisions set forth in this chapter. No person shall operate a marihuana operation in the City without first obtaining a license from the City Clerk. A marihuana operation operating without a license under the provisions of this chapter or without a state license or approval pursuant to the MMFLA or MRTMA, as amended from time to time, is hereby declared to be a public nuisance.

(b) The term of each license for a proposed location shall be one year. A license issued under this chapter for a proposed location may be conditioned on the approval of the operator by the state pursuant to the MMFLA and/or MRTMA at the location licensed under this chapter.

§ 16-4 License application submission.

[Ord. No. 21-01, 2-1-2021]

(a) Each marihuana operation must be licensed by the City. Applications for a license shall be made in writing to the Clerk. All applications submitted to the Clerk in accordance with the provisions of this chapter shall be considered for the issuance of a license. An applicant may apply for multiple licenses under this chapter of the same or different natures simultaneously, as permitted by law.

(b) A complete application for a license or licenses required by this chapter shall be made under oath on forms provided by the Clerk, and shall contain all of the following:

(1) If the applicant is an individual, the applicant's name, date of birth, physical address, email address, one or more phone numbers, including emergency contact information, and a copy of a government-issued photo identification card of the applicant.

(2) If the applicant is not an individual, the names, dates of birth, physical addresses, email addresses, and one or more phone numbers of each stakeholder of the applicant, including designation of a stakeholder as an emergency contact person and contact information for the emergency contact person, articles of incorporation or organization, Internal Revenue Service SS-4 EIN confirmation letter, and the operating agreement or bylaws of the applicant, if a limited liability company.

(3) The name, date of birth, physical address, copy of photo identification, and email address for any operator or employee if other than the applicant.

(4) The name and address of the proposed marihuana operation and any additional contact information deemed necessary by the Clerk.

(5) The applicant or licensee shall keep records of the results of the criminal history background checks performed pursuant to MMFLA and/or MRTMA requirements and shall provide copies for every applicant, licensee, stakeholder, and employee to the Clerk within five business days of receipt.

(6) An affirmation under oath as to whether the applicant or operator has had a business license revoked or suspended, and if revoked or suspended, then the reason for such revocation or suspension.

(7) A copy of the proposed business plan for the marihuana operation, including, but not limited to, the following:

a. The proposed ownership structure of the marihuana operation, including percentage ownership of each person; and

b. A current organization chart that includes position descriptions and the names of each person holding each position.

(8) One of the following:

a. Proof of ownership of the entire premises wherein the marihuana operation is to be operated; or

b. Written consent from the property owner for use of the premises in a manner requiring licensure under this chapter along with a copy of any lease for the premises.

(9) Verify compliance with state-mandated security measures as outlined in Emergency Rule 35 of the Department of Licensing and Regulatory Affairs: Adult-Use Marihuana Establishments Emergency Rules of July 3, 2019, as may be updated or amended from time to time.

(10) A floor and site plan of the marihuana operation, as well as a scale diagram illustrating the property, including all available parking spaces, all available handicapped-accessible parking, and noting storage spaces for any flammable or combustible substances.

(11) Verify compliance with state-mandated marketing and advertising restrictions as outlined in Emergency Rule 52 of the Department of Licensing and Regulatory Affairs: Adult-Use Marihuana Establishments Emergency Rules of July 3, 2019, as may be updated or amended from time to time.

(12) A location area map, as measured pursuant to § 16-10, of the marihuana operation and surrounding area that identifies the relative locations and the distances, as measured pursuant to § 16-10(d), to the buffered uses set forth in § 16-10(a).

(13) An affidavit that neither the applicant nor any stakeholder of the applicant is in default to the City; specifically, that the applicant or stakeholder of the applicant has not failed to pay any property taxes, special assessments, fines, fee or other financial obligation to the City.

(14) A signed acknowledgment that the applicant is aware and understands that all matters related to marihuana, growing, cultivation, possession, dispensing, testing, safety compliance, transporting, distribution, and use are currently subject to state and federal laws, rules, and regulations, and that the approval or granting of a license hereunder does not exonerate or exculpate the applicant from abiding by the provisions and requirements and penalties associated with those laws, rules and regulations or exposure to any penalties associated therewith; and further, the applicant waives and forever releases any claim, demand, action, legal redress, or recourse against the City, its elected and appointed officials and its employees and agents for any claims, damages, liabilities, causes of action, damages, and attorney fees the applicant may incur as a result of the violation by the applicant, its officials, members, partners, shareholders, employees and agent of those laws, rules, and regulations and hereby waives, and assumes the risk of, any such claims and damages, and lack of recourse against the City, its elected and appointed officials, employees, attorneys, and agents.

(15) Proof of Insurance Policy.

a. Proof of an insurance policy covering each license and naming the City, its elected and appointed officials, employees, and agents as additional insured parties, available for the payment of any damages arising out of an act or omission of the applicant or its stakeholders, agents, employees, or subcontractors, in the amount of:

1. At least $1,000,000 for property damage;

2. At least $1,000,000 for injury to one person; and

3. At least $2,000,000 for injury to two or more persons resulting from the same occurrence.

b. The insurance policy underwriter must have a minimum A.M. Best Company insurance ranking of B+, consistent with state law. The policy shall provide that the City shall be notified by the insurance carrier 30 days in advance of any cancellation. The insurer must be licensed in the State of Michigan.

(16) Proof of Surety Bond.

a. The City may require proof of a surety bond in the amount of $50,000 with the City listed as the obligee to guarantee performance by applicant of the terms, conditions and obligations of this chapter in a manner and surety approved by the City Attorney; or

b. In the alternative, the City may require creation of an escrow account as follows:

1. The account must be provided by a state or federally regulated financial institution or other financial institution; and

2. The account must be for the benefit of the City to guarantee performance by the licensee in compliance with this chapter and applicable law; and

3. The account must be in the amount of $20,000 and in a form prescribed by the City Attorney.

(17) Projected or actual annual budget and revenue based upon generally accepted accounting principles (GAAP standards) demonstrating sufficient financial resources to fund and execute the submitted business plans and building plans.

(18) An estimate of the number and type of full-time equivalent jobs that the marihuana operation expects to create and the amount and type of compensation for each position, including but not limited to health care, retirement, and paid time off.

(19) Submission of an odor plan to address any potential odors stemming from the use, storage, growing, or processing of marihuana subject to § 16-9(d) of this chapter.

(20) Execution of the Financial Resources Litigation History form made available by the City Clerk.

(21) Execution of the Morals, Good Order and General Welfare Litigation History form made available by the Clerk.

(22) Any other information requested by the Clerk to assist in the review of the application. Failure to provide required or requested information may result in an incomplete application determination and may result in denial or revocation of licensure.

(23) Copies of any proposed community investment or philanthropic plan to the City of Corunna.

(24) Must submit a security plan which will be approved by the City Manager.

(25) There is an ongoing obligation to provide updated information to the Clerk. Should there be a change to any portion of an application, the applicant must advise the Clerk within seven days from the date of the change and provide any documentation to support the change in application. Failure to provide documentation shall result in an incomplete application determination and is subject to denial of licensure.

(c) Each application shall be accompanied by a license application fee in an amount of $5,000.

(d) Upon receipt of a completed application meeting the requirements of this section and the appropriate license application fee, the Clerk shall refer a copy of the application to each of the following for their review: the City Attorney, the Building Inspector's Office, the Police Department, the Zoning Administrator, and the City Treasurer.

(e) No application shall be approved unless:

(1) The Building Inspector or his designated person has inspected the proposed location or approved proposed site plans for compliance with all laws for which they are charged with enforcement and for compliance with the requirements of this chapter.

(2) The Zoning Administrator has confirmed that the proposed location complies with the Zoning Code[1] and this chapter.

[1] Editor's Note: See Ch. 86, Zoning.

(3) The City Treasurer has confirmed that the applicant and each stakeholder of the applicant are not in default to the City, including, but not limited to, nonpayment of property taxes.

(4) The Police Department has reviewed the criminal history background checks for each applicant, stakeholder, and employee provided by the applicant.

(5) The City Attorney's office has reviewed and approved as to form the insurance and either the surety bond or escrow account documentation for compliance with state and local laws.

§ 16-5 License application evaluation.

[Ord. No. 21-01, 2-1-2021]

(a) The Manager shall assess, evaluate, score and rank all complete medical marihuana provisioning center, marihuana retailer, medical marihuana grow, marihuana grow, medical marihuana processor, marihuana processor, marihuana microbusiness, and designated consumption establishment applications submitted according to the provisions of this chapter. Assessment, evaluation, scoring, and ranking shall be completed for each license type. Additionally, the Manager shall assess, evaluate, score and rank marihuana microbusiness and designated consumption establishment applications. No application will be evaluated, scored, or ranked unless such application contains the approvals required by § 16-4(e) and the application contains all required information outlined in § 16-4. All other types of marihuana operation licenses shall be assessed for completeness and compliance with the terms of this chapter.

(b) The Manager's assessment, evaluation, score, and rank of each application that requires scoring shall be based upon a scoring criterion created by the Manager consistent with the requirements and conditions of this chapter, and as modified by the Manager from year to year. Scoring shall fall under the following general categories: content and sufficiency, consistency with surrounding land use and resident safety, demonstration of sufficient financial resources, and promotion of local business and economic development. The Manager shall award conditional approval or licenses to the top-scoring complete applications for the number of licenses available. Overall scoring and ranking shall be conducted and applied by the Manager on the basis of assigned points from zero points to 100 points with the lowest overall total score as zero points and the highest possible total-score being 100 points. The Manager retains the right to award fewer licenses than the number available if the remaining license application scores fall below 80/100, however, no license shall be awarded to an applicant whose score falls below 60/100.

(c) In the assessment, evaluation, score, and ranking of license applications, the Manager may give preference to locations that show a favorable tax base and increased good jobs to the City, improve access to medical marihuana patients, are consistent with surrounding and nearby land use, and limit potential exposure or disturbance of neighborhoods.

(d) In the event of an evaluation scoring tie which causes there to be more applicants than licenses or locations available, the scoring-tied applicants will be entered into a random draw using procedures set by the Manager. Those applications randomly selected shall be eligible to receive the license applied for consistent with this chapter.

(e) Nothing in this section is intended to confer a property or other right, duty, privilege or interest in a license of any kind or nature whatsoever, including, but not limited to, any claim of entitlement.

(f) The Manager may engage professional expert assistance in performing the Manager's duties and responsibilities under this chapter.

(g) If the applicant applies for a state license, the applicant must notify the Clerk of the pending state application within seven days in writing by certified mail.

(h) If the applicant has not applied for a state license, the applicant must apply for a state license within 28 days of submitting an application to the City Clerk.

§ 16-6 Limits on licenses and locations.

[Ord. No. 21-01, 2-1-2021; amended Ord. No. 21-02. 4-5-2021]

(a) Based upon investigation, recommendations, review, and consideration from the public, relevant boards and commissions, Planning Commission review, maps, historical data, Council and/or its designated committees, and public hearings and meetings, the Council finds and determines that it is in the public interest and serves a public purpose to limit, as defined, the following licenses:

(1) Medical marihuana provisioning centers/marihuana retailers. The maximum number of locations for both medical marihuana provisioning centers and marihuana retailers shall be 2 (two) in the C-1 (Central Business District), 2 (two) in the C-2 (Service/Business District) and 2 (two) in the C-3 (General Business District). A single location may serve as both a medical marihuana provisioning center and a marihuana retailer.

(2) Microbusinesses. The maximum number of locations for marihuana microbusinesses shall be 2 (two).

(3) Designated consumption establishments. The maximum number of locations for a designated consumption establishment shall be as follows: standalone, (0) zero; stacked within a licensed provisioning center, 2 (two); and stacked within a licensed microbusiness, (2) two.

(4) Marihuana indoor grower. Upon the effective date of the ordinance from which this section is derived, the maximum number of locations for indoor medical marihuana grows and indoor marihuana grows shall be 2 (two). A single location may serve as both a medical marihuana grow and marihuana grow. Indoor grows must be located in a building, as defined under § 16-2, and shall not be allowed inside a greenhouse or hoop house.

(5) Marihuana outdoor grower. Upon the effective date of the ordinance from which this section is derived, the maximum number of locations for outdoor medical marihuana grows and outdoor marihuana grows (to include marihuana grows conducted inside a greenhouse or hoop house) shall be 2 (two). At no time shall the maximum number of acres dedicated to a marihuana outdoor grower exceed 50, exclusive of Parmenter Road right-of-way, but inclusive of any stacked license. A single location may serve as both a medical marihuana grow and marihuana grow.

(6) Marihuana processor or medical marihuana processor facility. The maximum number of locations for both marihuana or medical marihuana processing centers shall be 6 (six).

(7) Marihuana safety compliance facility or medical marihuana safety compliance facility safety compliance center. the maximum number of locations for safety compliance facilities shall be 2 (two).

(8) Secure transporter or medical marihuana secure transporter. The maximum number of locations for a marihuana transporter shall be 2 (two).

(9) Event/other licenses. The maximum number of locations for an event or any other license allowable by the State of Michigan Department of Licensing and Regulatory Affairs and not otherwise defined within this ordinance is 0 (zero).

(b) All license, application, renewal or other fees called for under this chapter are nonrefundable.

§ 16-7 License renewal application.

[Ord. No. 21-01, 2-1-2021]

(a) Application for a license renewal required by this chapter shall be made in writing to the Clerk at least 28 days prior to the expiration of an existing license.

(b) An application for a license renewal required by this chapter shall be made under oath on forms provided by the City, and shall contain all of the information required by § 16-4(b).

(c) An application for a license renewal shall be accompanied by a renewal fee in an amount of $5,000. The renewal fee is established to defray the costs of the administration and enforcement of this chapter expended by the City Clerk's Office, Police Department, City Attorney's Office, Treasury, Building Safety office, Zoning Administrator, and other relevant City departments.

(d) Upon receipt of a completed application for a license renewal meeting the requirements of this chapter and the license renewal fee, the City Clerk shall refer a copy of the renewal application to each of the following for their approval: the City Attorney's Office, the Building Officials Office, the Police Department, the Zoning Administrator, the Manager, and the City Treasurer.

(e) No application for a license renewal shall be approved unless:

(1) The Building Officials Office has inspected the proposed location and/or approved proposed site plans for compliance with all laws for which they are charged with enforcement within the past license year.

(2) The Zoning Administrator has confirmed that the location complies with the Zoning Code[1] and this chapter.

[1] Editor's Note: See Ch. 86, Zoning.

(3) The City Treasurer has confirmed that the applicant and each stakeholder of the applicant and the location of the marihuana operation are not currently in default to the City, including but not limited to property taxes.

(4) The Police Department has reviewed the criminal history background checks for each applicant, stakeholder, and employee, as provided by the applicant.

(5) The City Attorney's Office has reviewed and approved as to any requirements or compliance for insurance and either the surety bond or escrow account documentation for compliance with state and local laws.

(6) The applicant possesses the necessary state licenses or approvals.

(7) The applicant has operated the marihuana operation in accordance with the conditions and requirements of this chapter as well as federal and state laws and regulations.

(8) The marihuana operation has not been declared a public nuisance.

(9) The applicant has complied with the scored and approved Manager's license application evaluation for the past license year. The Manager will evaluate and approve the renewal application as provided for in § 16-5, License application evaluation.

(f) If approval is given by each individual, department, or entity identified in Subsection (e), the Clerk confirms compliance with Subsection (b) and receipt of the renewal fee, the Clerk shall issue a license renewal to the applicant. The renewal shall be deemed approved if the City has not issued formal notice of denial within 60 days of the filing date of the application, unless the applicant is advised of noncompliance under § 16-7(e) during such period.

§ 16-8 Licenses generally.

[Ord. No. 21-01, 2-1-2021]

(a) To the extent permissible under law, all information submitted in conjunction with an application for a license or license renewal required by this chapter is confidential and exempt from disclosure under the Michigan Freedom of Information Act, 1976 PA 442, MCL 15.231 et seq., including the trade secrets or commercial or financial information exemptions available under Section 13(f) of the Michigan Freedom of Information Act. Furthermore, no personal or medical information concerning the applicant shall be submitted to the City.

(b) Licensees may transfer a license issued under this chapter to a different location upon receiving written approval from the Clerk. In order to request approval to transfer a license location, the licensee must make a written request to the Clerk, indicating the current license location and the proposed license location. Upon receiving the written request, the Clerk shall refer a copy of the written request to each of the following for their approval: the City Attorney's Office, the Building Official's Office, the Police Department, the Zoning Administrator, the Manager and the City Treasurer. No license transfer shall be approved unless each department and entity give written approval that the licensee and the proposed license location meet the standards identified in this chapter, including but not limited to § 16-4(e), and the City Clerk has determined that the proposed location meets the requirements of § 16-5. Applicants may not change locations during the application review period.

(c) A licensee may transfer a license issued under this chapter to a different individual or entity upon receiving written approval by the Manager. In order to request approval to transfer a license to a different individual or entity, the licensee must make a written request to the Clerk, indicating the current licensee and the proposed licensee. Upon receiving the written request, the Clerk shall review the application for conformity with §§ 16-4 and 16-5, including submission of the license application fee. Application fees are nontransferable.

(d) A licensee shall report any other change in the information required by this chapter to the Clerk within seven business days of the change. Failure to do so may result in suspension or revocation of the license.

§ 16-9 Minimum operational standards of marihuana operation.

[Ord. No. 21-01, 2-1-2021]

Except as may be preempted by state law or regulation:

(a) Every medical marihuana provisioning center, marihuana retailer, marihuana microbusiness, and designated consumption establishment must be located in a building, as defined under § 16-2.

(b) No medical marihuana provisioning center, marihuana retailer, marihuana microbusiness, or designated consumption establishment shall be open between the hours of 10:00 p.m. and 9:00 a.m.

(c) Consumption of marihuana shall be prohibited on the premises of a marihuana operation except as permitted by, state law, local ordinance, and a designated consumption establishment license has been obtained.

(d) No marihuana operation shall be operated in a manner creating noise, dust, vibration, glare, fumes, or odors beyond the boundaries of the property on which the marihuana operation is operated that exceed allowances defined and approved under the required odor plan that must be submitted by the applicant, or any other nuisance that hinders the public health, safety and welfare of the residents of the City. All odor plans required and approved for any outdoor grow must have appropriate berms, and/or screening and plantings to help eradicate offensive odors. All indoor marihuana growing facilities shall manage odor by installation of an operable filtration to ventilation and exhaust equipment, and odors must otherwise be effectively confined to the interior of the building or dwelling from which the odor is generated.

(e) The license required by this chapter shall be prominently displayed on the premises of a marihuana operation.

(f) The premises shall be open for inspection during the stated hours of operation and at such other times as anyone is present on the premises. Refusal to permit inspection may result in revocation or suspension of licensure.

(g) It shall be prohibited to display any signs that are inconsistent with local laws or regulations or state law.

(h) No other accessory uses are permitted within the same establishment or facility unless expressly permitted by state or local law.

(i) All processing activity shall be performed indoors in a building.

(j) All persons working in direct contact with marihuana shall conform to hygienic practices while on duty, including but not limited to:

(1) Maintaining adequate personal cleanliness;

(2) Washing hands thoroughly in adequate hand-washing areas before starting work and at any other time when the hands may have become soiled or contaminated;

(3) Refraining from having direct contact with medical marihuana if the person has or may have an illness, open lesion, including boils, sores or infected wounds, or any other abnormal source of microbial contamination, until the condition is corrected.

(k) Marihuana operations must be kept clean and in good repair, including proper disposal of all waste and litter.

(l) No medical marihuana provisioning center, marihuana retailer, marihuana microbusiness, or designated consumption establishment shall permit the sale, consumption, or serving of alcohol.

(m) For a facility using artificial lighting, a plan to contain demonstrating that the owner can contain all artificial light to the interior space of the facility.

(n) All lighting, and associated equipment, such as but not limited to lamps, lights, ballasts, switches, controllers, computers, and any and all other electrical, electromechanical, or electronic devices employed on the premises must meet and fully comply with all applicable rules as required by the Federal Communications Commission ("FCC"), including, but not limited to, 47 CFR 15 (FCC Part 15) and 47 CFR 18 (FCC Part 18). Further, there must be no harmful radio communications, on or off the premises. Compliance with FCC rules and regulations is a condition of licensure by the City.

§ 16-10 Location, buffering, dispersion, and zoning requirements for medical marihuana provisioning centers and marihuana retailers.

[Ord. No. 21-01, 2-1-2021; amended Ord. No. 21-02. 4-5-2021]

(a) No medical marihuana provisioning center, or marihuana retailer, shall be located within:

(1) One thousand feet of an operational school, including prekindergarten that is located within a school; or

(2) One hundred feet of the following buffered uses: public parks; a commercial child care organization (non-home occupation) that is required to be licensed or registered with the Michigan Department of Health and Human Services, or its successor agency; a church; a facility at which substance use disorder prevention services or substance use disorder treatment and rehabilitation services and those terms are defined in the Mental Health Code, PA 258 of 1974, MCL 330.1001 et seq.

(b) Medical marihuana provisioning centers and marihuana retailers shall be limited to C-1 (Central Business District) and C-2 (Service/Business District) and C-3 (General Business District), as such districts are described and designated as provided in the Zoning Code[1] provisions of this Code.

[1] Editor's Note: See Ch. 86, Zoning.

(c) No medical marihuana provisioning center or marihuana retailer shall be stacked within another business except as permitted by the Marijuana Regulatory Agency and subject to any City requirements under this chapter.

(d) For the purpose of calculating the buffering and dispersion requirements of this section, the distance shall be measured along the center line of the street or streets of address between two fixed points on the center line determined by projecting straight lines, at right angles to the center line, from the part of the buffered use nearest to the contemplated location of the marihuana operation and from the part of the contemplated location nearest to the buffered use. The distances from the marihuana operation to the point on the center line and from the buffered use to the point on the center line shall be included in the calculation.

(e) No marihuana operation shall be located in an unzoned area or in an area subject to an agreement entered into pursuant to Public Act 425 of 1984.

§ 16-11 Location of marihuana growers, marihuana safety compliance facilities, marihuana processors, marihuana secure transporters, marihuana microbusinesses, and designated consumption establishment.

[Ord. No. 21-01, 2-1-2021; amended Ord. No. 21-02. 4-5-2021]

(a) All marihuana growers shall be limited to I (Industrial zoned property) bordering on the west side of Parmenter Road, South Comstock Street, and Sleeseman Drive as identified on the current City Zoning Map. Marihuana microbusinesses shall be limited to I (Industrial zoned property) bordering on the west side of Parmenter Road, South Comstock Street, and Sleeseman Drive and C-3 (General Business District) as identified on the current City Zoning Map.

(b) All marihuana safety compliance facilities, marihuana processors, and marihuana secure transporters shall be limited to I (Industrial zoned properties) bordering on the west side of Parmenter Road, South Comstock Street, and Sleeseman Drive as identified on the current City Zoning Map.

(c) All designated consumption establishments shall be limited to C-3 (General Business District) and I (Industrial zoned properties) as such districts are described and designated as provided in the Zoning Code[1] provisions of this code as identified on the current City Zoning Map.

[1] Editor's Note: See Ch. 86, Zoning.

(d) No marihuana operation shall be located in an unzoned area or in an area subject to an agreement entered into pursuant to Public Act 425 of 1984.

(e) No marihuana grower or marihuana microbusiness shall be located within:

(1) One thousand feet of an operational school, including pre-kindergarten and Head Start that is located within a school; or

(2) Three hundred feet of the following buffered uses: public parks; a commercial child-care organization (non-home occupation) that is required to be licensed or registered with the Michigan Department of Health and Human Services, or its successor agency; a church; a facility at which substance use disorder prevention services or substance use disorder treatment and rehabilitation services and those terms are defined in the Mental Health Code, PA 258 of 1974, MCL 330.1001 et seq., or another medical marihuana provisioning center or marihuana retailer.

(f) For the purpose of calculating the buffering and dispersion requirements of this section, the distance shall be measured along the center line of the street or streets of address between two fixed points on the center line determined by projecting straight lines, at right angles to the center line, from the part of the buffered use nearest to the contemplated location of the marihuana operation and from the part of the contemplated location nearest to the buffered use. The distances from the marihuana operation to the point on the center line and from the buffered use to the point on the center line shall be included in the calculation.

§ 16-12 Application denial or license revocation; bases for revocation; appeal of license denial or revocation.

[Ord. No. 21-01, 2-1-2021]

(a) Any license issued under this chapter may be revoked by the Manager after an administrative hearing if the Manager finds and determines that grounds for revocation exist. Any grounds for revocation must be provided to the licensee at least 10 days prior to the date of the hearing by first-class mail to the address given on the license application or any address provided to the City Clerk in writing subsequent to the filing of an application.

(b) A license applied for or issued under this chapter may be denied or revoked, including but not limited to any of the following bases:

(1) A material violation of any provision of this chapter, including, but not limited to, the failure to provide the information required by this chapter, or a material violation of the MMFLA, MRTMA, or the corresponding rules promulgated by the MRA; or

(2) Any conviction of a disqualifying felony by the licensee, stakeholder, or any person holding an ownership interest in the license; or

(3) Commission of fraud or misrepresentation or the making of a false statement by the applicant, licensee, or any stakeholder of the applicant or licensee while engaging in any activity for which this chapter requires a license; or

(4) Failure to obtain or maintain a license or renewed license from the Clerk pursuant to this chapter; or

(5) Failure of the licensee or the medical marihuana establishment to obtain or maintain a license or approval from the state pursuant to the MMFLA or MRTMA; or

(6) The medical marihuana establishment is determined by the City to have become a public nuisance or otherwise is operating in a manner detrimental to the public health, safety or welfare.

(7) Cultivation, processing, sale, or display of marihuana or marihuana accessories that are visible from a public place.

(c) Appeal of denial of an application or revocation of a license. The Clerk shall notify an applicant of the reason(s) for denial of an application for a license or license renewal or for revocation of a license or any adverse decision under this chapter and provide the applicant with the opportunity to request reconsideration. An appeal of denial of application for licensure shall be a paper hearing. Any applicant aggrieved by the denial or revocation of a license or adverse decision under this chapter may appeal to the City Council. Such appeal shall be taken by filing with the Clerk, within seven days after notice of the action complained of has been mailed to the applicant's last known address on the records of the Clerk, a written statement setting forth fully the grounds for the appeal. The City Council shall review the appeal and make a decision on the matter. Any decision by the City Manager shall be final for purposes of judicial review. The Manager and/or City Council may engage professional experts to assist with the proceedings under this § 16-12.

§ 16-13 Penalties; temporary suspension of license.

[Ord. No. 21-01, 2-1-2021]

(a) The City may require an applicant or licensee of a marihuana operation to produce documents, records, or any other material pertinent to the investigation of an application or alleged violation of this chapter. Failure to provide the required material may be grounds for application denial or license revocation.

(b) Any person in violation of any provision of this chapter, including the operation of a marihuana operation without a license issued pursuant to this chapter, shall be subject to a civil fine of $500, plus costs, per day of violation. The Chief of Police or his or her designee is hereby designated as the authorized City official to issue municipal civil infraction citations directing alleged violators to appear in court or pay a fine.

(c) All fines imposed under this chapter shall be paid within 45 days after the effective date of the order imposing the fine or as otherwise specified in the order.

(d) The Manager may temporarily suspend a license without a prior hearing if the Mayor finds that public safety or welfare requires emergency action affecting the public health, safety, or welfare. The Clerk shall cause the temporary suspension by issuing a suspension notice in connection with institution of proceedings for notice and a hearing.

(e) If the Manager temporarily suspends a license without a prior hearing, the licensee is entitled to a hearing within 30 days after the suspension notice has been served on the licensee or posted on the licensed premises. In the case of a license issued for a marihuana grower, the hearing shall be held within 14 days after the notice has been served on the licensee or posted on the premises of the licensed facility. The hearing shall be limited to the issues cited in the suspension notice.

(f) If the Clerk does not hold a hearing within 30 days after the date the suspension was served on the licensee or posted on the licensed premises or, in the case of a marihuana grower, 14 days, then the suspended license shall be automatically reinstated and the suspension vacated.

(g) The penalty provisions of this chapter are not intended to foreclose any other remedy or sanction that might be available to, or imposed by, the City, including criminal prosecution.

§ 16-14 Consumption in public place.

[Ord. No. 21-01, 2-1-2021]

Consumption of marihuana in any public place within the City is prohibited except as provided by state law and as allowed by the City under this chapter.

§ 16-15 Designated consumption establishments.

[Ord. No. 21-01, 2-1-2021]

(a) Any licensed space that legally permits the use of marihuana shall designate a consumption area accessible only by persons 21 years of age or older, and shall obtain and maintain a license from the state and City. An application for licensure shall be awarded upon submission of a complete application containing the documentation required in § 16-4(b)(1), (2), (3), (6), (8), (9), (10), (11), (12), (16), (17), (20), and (21).

(b) A designated consumption establishment must comply with all laws and rules pursuant to the MRTMA, including, but not limited to, a ventilation system that directs air from the marihuana consumption area to the outside of the building through a filtration system sufficient to remove visible smoke consistent with all applicable building codes and ordinances and adequate to eliminate odor at the property line. The sale of marihuana is limited only to establishments licensed to conduct sales of marihuana.

(c) An initial license application fee of $5,000 is required.

(d) An application for renewal shall include any updated information required in §§ 16-4 and 16-5 as well as a renewal fee of $5,000.

§ 16-16 No vested rights.

[Ord. No. 21-01, 2-1-2021]

A property owner, lessor, license applicant, or licensee shall not have vested rights or nonconforming use rights that would serve as a basis for failing to comply with this chapter or any amendment of this chapter.