A. 
The maximum number of each type of medical marihuana facility permitted in the City is as follows:
Type of Facility
Number
Grower
No limit
Processor
No limit
Secure transporter
No limit
Provisioning center
No limit
Safety compliance facility
No limit
B. 
The maximum number of each type of adult-use marihuana establishment permitted in the City is as follows:
[Amended 6-20-2023 by Ord. No. 2066]
Type of Establishment
Grower
No limit
Processor
No limit
Secure transporter
No limit
Retailer
No limit
Microbusiness
No limit
Safety compliance facility
No limit
Marihuana-related businesses:
Designated consumption lounge
No limit
Marihuana event organizer
Not presently permitted
Temporary marihuana event
Not presently permitted
Excess grower
No limit
Class A microbusiness
No limit
Marihuana education research facility
Not presently permitted
A. 
No person shall establish or operate a marihuana commercial business in the City without first having obtained a permit from the City and a state operating license for each such marihuana business to be operated. Permit and license certificates shall be kept current and publicly displayed within the business. Failure to maintain or display current state and City certificates is a violation of this chapter.
B. 
There shall be an annual nonrefundable local permit fee to defray the administrative and enforcement costs associated with marihuana businesses located in the City of not more than $5,000 per licensed business as set by resolution adopted by the City Commission.
C. 
The annual nonrefundable local permit fee required under this section is due and payable with the application for a permit and upon the application for renewal of any such permit under this chapter. The permit and fee requirements of this chapter apply to all marihuana commercial businesses, whether operated for profit or not for profit.
D. 
The local permit fee requirement set forth in this chapter shall be in addition to, and not in lieu of, any other licensing and permitting requirements imposed by any state regulatory agency, or by City ordinance, including, by way of example, and not limited to, any applicable fees for site plan review, zoning review, inspections, or building permits.
E. 
The issuance of any permit pursuant to this chapter does not create an exception, defense, or immunity to any person regarding any potential criminal liability the person may have for the production, distribution, or possession of marihuana under federal law.
F. 
A separate permit is required for each marihuana business located at a premises from which a marihuana commercial business is operated. Operation of a grower and processor facility at the same location is authorized, provided that each facility is separately licensed and permitted. Operation of a provisioning center and/or retailer at the same location as a grower or processing facility is authorized when in conformance with the City Zoning Ordinances.
G. 
This chapter is not applicable to a registered primary caregiver operating a medical marihuana home occupation in accordance with the City Zoning Ordinances.
A. 
No marihuana business is eligible to receive a permit unless at the time the application for the marihuana business operating permit is submitted, the location of the proposed business operation complies with the requirements set forth in the City Zoning Ordinances as required for the specific type of marihuana commercial business for which the permit is being sought.
B. 
Mobile marihuana businesses and limited contact transaction operations, except for curbside service in a designated area at a marihuana sales location in compliance with applicable Department-issued rules and the City Zoning Ordinance, are prohibited.
C. 
A licensee shall not operate a marihuana business at any place in the City other than at the address provided in the application on file with the City Clerk. A permit issued under this chapter may be transferred to a different location upon receiving written approval from the City Clerk. In order to request approval to transfer the location of a permit, the licensee must make a written request to the City Clerk, indicating the current license location and the proposed license location. Upon receiving the written request, the City Clerk will forward a copy of the request to affected service areas and departments of the City to determine whether the proposed location complies with all applicable laws, rules and regulations. No permit transfer will be approved unless the proposed location meets the standards identified in this chapter and the City Zoning Ordinances.
A. 
A person seeking a permit pursuant to licensure by the state under the provisions of the Medical Marihuana Facilities Licensing Act or the Michigan Regulation and Taxation of Marihuana Act and the provisions of this chapter must submit an application in writing to the City Clerk on forms provided by the City. At the time of application, the application must be accompanied by a nonrefundable application fee to defray the costs incurred by the City for processing of the application. In addition, the applicant shall present a suitable copy of government-issued photographic identification to accompany the application.
B. 
The applicant must also provide the following information, under the penalty of perjury, on the City-provided form for the applicant, the proposed manager of the marihuana facility, and all persons who are true parties of interest in the marihuana business that is the subject of the application:
(1) 
If the applicant is an individual or sole proprietorship, the proprietor and their spouse, if any, shall provide their name, address, date of birth, business address, business telephone number, email address, social security number, and, if applicable, federal tax identification number;
(2) 
If the applicant is not an individual or sole proprietorship, information regarding the business entity, including, without limitation, the name and address of the entity, website address (if any), type of business organization, proof of registration with, or a certificate of good standing from, the State of Michigan, as applicable, and the names, dates of birth, addresses, email addresses, phone numbers of each applicant, and the federal tax identification number of the business entity;
(3) 
The identity of every person having an ownership or beneficial interest of more than 10% in the applicant with respect to which the license is sought; provided, however, a social equity-qualified business must be able to demonstrate 51% or more ownership by qualifying applicants;
(4) 
Proof that the Department has granted the applicant prequalification status;
(5) 
If the applicant is not the owner of the proposed licensed premises, a notarized statement from the owner of such property authorizing the use of the property for a marihuana business;
(6) 
A copy of any deed reflecting the applicant's ownership of, or lease reflecting the right of the applicant to possess, or an option reflecting the applicant's right to purchase or lease, the proposed licensed premises;
(7) 
A description of the type of the proposed marihuana commercial operation and its physical address;
(8) 
A to-scale diagram of the proposed licensed premises, no larger than 11 inches by 17 inches, showing, without limitation, building floor plan and layout, all entryways, doorways, or passageways, and means of public entry and exits to the proposed licensed premises, loading zones, available on-site parking spaces, fencing at the premises, and all areas in which marihuana will be stored, grown, manufactured or dispensed;
(9) 
A lighting plan showing the lighting outside of the marihuana business for security purposes and compliance with applicable City outdoor lighting requirements;
(10) 
A staffing plan which describes the anticipated or actual number of employees, including an estimate of the number and type of jobs that the business is expected to create, and the amount and type of compensation (including benefits) expected to be paid for such jobs;
(11) 
An explanation, with supporting factual data, of the economic benefits to the City and the job creation for local residents to be achieved by the facility, including plans for community outreach and worker training programs, through the grant of a marihuana business permit;
(12) 
A statement that no applicant is in default to the City for any property tax, special assessment, utility charges, fines, fees or other financial obligation owed to the City;
(13) 
A statement that the applicant has reviewed and agrees to conform its hiring and public accommodation practices to the City's Nondiscrimination Ordinance provisions as set forth in Chapter 18 of this Kalamazoo City Code;
(14) 
A social equity plan that a) promotes and encourages participation in the marihuana industry by local residents that have been disproportionately impacted by marihuana prohibition and enforcement, and b) positively impacts local residents;
(15) 
A statement that no applicant or true party of interest is ineligible from holding a state license to operate a marihuana commercial business;
(16) 
Attestation that the applicant consents to inspections, examinations, searches and seizures required or undertaken pursuant to enforcement of this chapter; and
(17) 
Any additional information that the City Clerk, Public Safety Chief, or City Planner or their designees reasonably determine to be necessary in connection with the investigation and review of the application.
C. 
Upon receipt of a completed application, the City Clerk may circulate the application to all affected service areas and departments of the City to determine whether the application is in full compliance with all applicable laws, rules and regulations.
D. 
If the City Clerk identifies or is informed of a deficiency in an application, the applicant has five business days to correct the deficiency after notification by the City Clerk.
A. 
The City Clerk shall reject any application that does not meet the requirements of the MMFLA, the MRTMA, the Rules, or this chapter. The City Clerk shall reject any application that contains any false, misleading, or incomplete information.
B. 
An applicant whose application is rejected or denied because of missing, incomplete, erroneous, false, or misleading information, or because of a lack of submission of the full amount of the fees due, does not have a right to appeal the decision of the City Clerk, whose decision is final.
A. 
Beginning June 1, 2020, the City Clerk will begin to accept permit applications for City-issued marihuana commercial business operating permits. A marihuana business whose inspection, background checks, and all other information available to the City verifies that the applicant has submitted a full and complete application, has made or has secured permits for making improvements to the business location consistent with the type of facility applied for, complies with applicable zoning and location requirements, and is prepared to operate the business as set forth in the application, will be reviewed by the office of the City Clerk for completeness and compliance with the requirements of this chapter.
B. 
The City Clerk shall issue a provisional marihuana business approval certificate to each applicant whose application is complete and if the inspection, background checks, and all other information available to the City verify that the applicant complies with applicable zoning and location requirements, and is prepared to operate the business as set forth in the application, and in compliance with the City Code of Ordinances and any other applicable law, rule, or regulation.
C. 
The applicant shall not locate or operate a marihuana business in the City without obtaining a state operating license approved by and issued by the Department. A provisional certificate issued by the City will expire and be void after two years, or on the date that state approval is denied by a final order to the applicant, whichever first occurs.
D. 
(Reserved)
E. 
If the Department issues a final determination denying an applicant a state operating license, then the provisional approval certificate will be canceled by the City Clerk.
F. 
Provisional certificates are not transferable to another person or entity without the submission of a local permit application by the person or entity to whom the certificate is to be transferred and the approval of the City Clerk.
A. 
An applicant holding an unexpired provisional certificate issued pursuant to this chapter and for which a marihuana facility or marihuana establishment state operating license has been issued shall provide proof of same to the City Clerk.
B. 
An inspection of the proposed marihuana business by the City is required prior to issuance of the City operating permit. Such inspection shall occur after the premises are ready for operation, but prior to the stocking of the business with any marihuana or marihuana-infused product, and prior to the opening of the business or commencement of operations, unless the applicant holds a state operating license and is seeking a permit for an equivalent license. The inspection is to verify that the business premises are constructed and can be occupied in accordance with the application submitted and the applicable requirements of this chapter and any other applicable law, rule, or regulation.
C. 
After verification that the business premises are constructed and can be occupied in accordance with the application submitted and the applicable requirements of this chapter and any other applicable law, rule, or regulation, and the issuance of a temporary or permanent certificate of occupancy for the building, the City Clerk shall issue a City marihuana business operating permit for a term of one year. The City-issued permit must be prominently displayed within the business.
D. 
Maintaining a valid state operating license is a condition for the issuance and maintenance of the City marihuana business operating permit issued under this chapter and the continued operation of any marihuana business.
E. 
Proof of insurance.
(1) 
A permittee shall at all times maintain in full force and effect, for duration of the permit, workers' compensation insurance as required by state law, and general liability insurance with minimum limits of $1,000,000 per occurrence and an aggregate limit of $2,000,000 issued from a company licensed to do business in Michigan having an AM Best rating of at least B++. A permittee 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 Kalamazoo and its officials and employees as additional insureds to the limits required by this section. A permittee or its insurance broker shall notify the City of any cancellation or reduction in coverage within seven days of receipt of the insurer's notification to that effect. The permittee shall obtain and submit proof of substitute insurance to the City Clerk within five business days in the event of expiration or cancellation of coverage.
(2) 
A secure transporter must provide proof of no-fault automobile insurance with a company licensed to do business in Michigan with limits of liability not less than $1,000,000 per occurrence combined single limit for bodily injury and property damage, vehicle registration, and registration as a commercial motor vehicle for all vehicles used to transport marihuana or marihuana-infused products.
(3) 
Any failure to maintain or lapse in the insurance coverage required by this chapter is grounds for revocation of the City-issued operating permit.
F. 
A condition of the issuance of a marihuana business operating permit includes, at a minimum, operation of the business in compliance with all the plans and the information provided to the City as part of the application. A permittee must update any material change in the information provided to the City as part of the application within 10 business days of such change during the term of the permit. The failure to timely update a material change in information will be grounds for suspension or revocation of the operating permit. The term "material change" includes, but is not limited to:
(1) 
Any change in owners, officers, members or managers;
(2) 
The addition or removal of a person named in the application for the local permit;
(3) 
Change in the name of the business;
(4) 
Any proposed transfer, sale, or other conveyance of an interest in the business or the business license;
(5) 
Any modification to the business premises which requires an inspection under the applicable code, alteration of ingress or egress, or changes that impact security, fire safety, or building safety;
(6) 
Any criminal charges and convictions, or civil judgements against the permittee in this state or any other jurisdiction;
(7) 
Any regulatory sanction disciplinary action taken against the permittee in this state or any other jurisdiction;
(8) 
The initiation or conclusion of any judgement, lawsuit, legal or bankruptcy proceeding, or governmental investigation of the permittee or a true party of interest in the business; or
(9) 
Any court-appointed conservator, receiver, or trustee of the permittee.
In the event that a marihuana business does not commence and maintain regular operations within one year of issuance of a City operating permit, the permit will be deemed forfeited; the business may not recommence operations and the permit is not eligible for renewal.
A. 
A valid marihuana business operating permit may be renewed on an annual basis by submission of a renewal application upon a form provided by the City Clerk and payment of the annual license fee set by City Commission resolution. An application to renew a marihuana business operating permit shall be filed no sooner than 120 days and no later than 75 days prior to the date of its expiration. Upon receipt of a timely filed application of renewal, the City Clerk, in consultation with EDC staff, may extend the term of the expiring permit for up to 90 additional days, at no cost to the permittee, to allow for the orderly consideration of the request for renewal. The failure to timely file for renewal is sufficient grounds to deny renewal of a permit to operate a marihuana business in the City and is not subject to appeal.
B. 
Prior to the issuance of a renewed marihuana business operating permit by the City, the premises must be inspected to assure that it and its systems comply with the requirements of this chapter and all other applicable City codes and ordinances.
C. 
In determining whether to grant a renewal of a permit, the members of the City's Economic Development Corporation Board will evaluate the permit holder's compliance with the statements it provided with its initial application and submission with its request for renewal of the following information:
(1) 
The staffing plan for the business, which describes the actual number of employees, including the number and type of jobs that the facility has created, and the amount and type of compensation (including benefits) paid for such jobs;
(2) 
An explanation, with supporting factual data, of the economic benefits to the City and the job creation for local residents achieved by the business, results of efforts for community outreach and worker training programs;
(3) 
An explanation, with supporting factual data, of the efforts and success achieved by the social equity plan of the business to promote and encourage participation in the marihuana industry by local residents that have been disproportionately impacted by marihuana prohibition and enforcement, and the positive impact of the social equity plan on local residents;
(4) 
A statement that the business is not in default to the City for any property tax, special assessment, utility charges, fines, fees or other financial obligation owed to the City;
(5) 
A statement that the hiring and public accommodation practices of the facility conform to the City's Nondiscrimination Ordinance provisions and documentation of the total number of employees broken out by managerial and operational employees, number of women and number of minority employees and number of employees disproportionately impacted by marihuana prohibition and enforcement;
(6) 
A statement, with supporting documentation, providing answers to the following questions:
(a) 
How many City residents do you currently employ?
(b) 
How many current employees reside in Census Tracts 1 (Eastside); 9, 10 (Edison) and/or 2.02, 3 (Northside)?
(c) 
What is your plan to employ residents of the identified census tracts?
(d) 
How many of your employees have prior marihuana convictions (excepting a conviction for delivery or distribution to a minor)?
(e) 
What is your plan for employees with a prior marihuana conviction to move up within your business and/or the marihuana industry?
(7) 
Proof that the marihuana business has received recognition and maintains the status as a Silver Level Social Equity All-Star or better with the Michigan Cannabis Regulatory Agency.
D. 
If a permittee demonstrates compliance with the requirements for renewal of an operating permit, the City Clerk shall renew the existing permit for a period of one year, on the condition that the state operating license for the facility is renewed. However, in its discretion, the EDC Board may recommend that the City Clerk issue a single ninety-day probationary renewal based upon a finding that the permittee has documented violations of City codes or ordinances for which the permittee has presented a written plan for correction of all violations which is determined by the EDC Board to be an acceptable resolution of the violations. If the City Clerk determines that the violations have been cured within the ninety-day probationary period, a one-year renewal of the permit will be issued, which shall include the ninety-day probationary period. If the violations are not cured within the ninety-day probationary period, the City Clerk will issue a notice of permit denial to the permittee.
E. 
If a permittee demonstrates full compliance with the requirements for the renewal of an operating permit, with no documented pending violations of City codes or ordinances, and the permittee has achieved Gold Level Social Equity All-Star status with the Cannabis Regulatory Agency, the City Clerk shall renew the existing permit for a period of two years on the condition that the state operating license for the facility is maintained.
A. 
A marihuana business permit is valid only for the owner named thereon, the type of business disclosed on the application for the permit, and the location for which the permit is issued.
B. 
Each operating permit is exclusive to the permittee. An applicant seeking to acquire a marihuana business must apply for a new permit with the City Clerk before an existing permit is rescinded. The attempted transfer, sale, or other conveyance of an interest in a permit without prior application for a City operating permit with the City Clerk is grounds for suspension or revocation of the existing permit and denial of a permit to the proposed new owner of the marihuana business.
An operating permit granted by this chapter is a revocable privilege granted by the City and is not a property right. The granting of a permit under this chapter does not create or vest any right, title, franchise, or other property interest. The production, processing and sale of marihuana is a highly regulated industry; therefore, strict compliance with the provisions of this chapter is required by holders of a City-issued operating permit.
A. 
The City Clerk may, after notice and hearing, suspend, revoke or refuse to renew a permit for any of the following reasons:
(1) 
The permit 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 chapter or with any applicable state or local law or regulation;
(2) 
The permit holder, or its agent, manager or employee, has failed to comply with any special terms or conditions of its license or permit pursuant to an order of the state or the City as the local permitting authority, including those terms and conditions that were established at the time of issuance of the license or probational renewal and those imposed as a result of any disciplinary proceedings held subsequent to the date of issuance of the license by the state;
(3) 
The Economic Development Corporation Board determined that the permit holder did not meet or failed to comply with one or more of the requirements set forth at § 20B-12C;
(4) 
The marihuana commercial business has been operated in a manner that adversely affects the local public health, safety or welfare; or
(5) 
The permit holder failed to timely submit all necessary documents and/or fees to renew the City-issued permit or state operating license.
B. 
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 business or in the immediate area surrounding such business, a continuing pattern of criminal conduct directly related to or arising from the operation of the marihuana business, or an ongoing nuisance condition emanating from or caused by the marihuana business. Criminal conduct is limited to the violation of a state law or regulation or City ordinance.
C. 
Except as otherwise provided in this chapter, the Planning Commission shall hear and decide questions that arise in the administration of this chapter, including appeals of suspension and revocations of City operating permits. The concurring vote of a majority of the members present of the Planning Commission is necessary to reverse an order, requirement, decision, or determination of an administrative official in the application of this chapter. The decision of the Planning Commission is final. This section is not to be construed to grant the Planning Commission authority to hear any matter that is within the powers and duties of the Zoning Board of Appeals.