Ardian, MI MMFLA & MRTMA Opt-In Ordinances

ARTICLE XI. - COMMERCIAL MEDICAL MARIHUANA FACILITIES AND ADULT USE ESTABLISHMENTS


Sec. 46-500. - Legislative intent.

The purpose of this article is to implement the provisions of the Michigan Marihuana Facilities Licensing Act, Public Act 281 of 2016, and the Michigan Regulation and Taxation Act Initiated Law 1 of 2018, which authorizes the licensing and regulation of commercial medical marihuana facilities or commercial adult use establishments; affords the city the option to allow commercial medical marihuana facilities or commercial adult use establishments; and the authority to regulate commercial medical marihuana facilities or commercial use establishments by requiring a permit and compliance with requirements as provided in this article, in order to maintain the public health, safety and welfare of the public.


Nothing in this article is intended to grant immunity from criminal or civil prosecution, penalty, or sanction for the cultivation, manufacture, possession, use, sale, or distribution of marihuana, in any form, that is not in compliance with the Michigan Medical Marihuana Act, Initiated Law of 2008, MCL 333.26421 et seq.; the Michigan Medical Marihuana Facilities Licensing Act, MCL 333.27101 et seq.; the Michigan Marihuana Tracking Act, MCL 333.27901 et seq.; the Michigan Regulation and Taxation of Marihuana Act MCL 333.27951 et seq.; and all other applicable rules promulgated by the State of Michigan.


As of the effective date of this article, marihuana remains classified as a Schedule 1 controlled substance under the Federal Controlled Substances Act, 21 U.S.C. § 801 et seq., which makes it unlawful to manufacture, distribute, or dispense marihuana, or possess marihuana with the intent to manufacture, distribute, or dispense marihuana. Nothing in this article is intended to grant immunity from any criminal prosecution under federal laws.


(Ord. No. 17-035, 12-13-2017; Ord. No. 18-009, 6-7-2018; Ord. No. 19-001, 6-3-2019)


Sec. 46-501. - Denitions.

For the purpose of this article the following words, terms, and phrases shall have the meanings ascribed to them in this section, except when the context clearly indicates a different meaning.


Any term defined by the Michigan Medical Marihuana Act, MCL 333.2621 et seq., shall have the definition given in the Michigan Medical Marihuana Act.


Any term defined by the Michigan Medical Marihuana Facilities Licensing Act, MCL 333.27101 et seq., shall have the definition given in the Michigan Medical Marihuana Facilities Licensing Act.


Any term defined by the Michigan Medical Marihuana Tracking Act, MCL 333.27901 et seq., shall have the definition given in the Michigan Medical Marihuana Tracking Act.


Any term defined by the Michigan Regulation and Taxation of Marihuana Act, MCL 333.27951 et seq., shall have the definition given in the Michigan Regulation and Taxation of Marihuana Act.


Adult use means recreational marihuana as defined in the Michigan Regulation and Taxation of Marihuana Act.


City means the City of Adrian.


Commercial marihuana facility means all types of medical or recreational facilities


Department 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 commercial medical marihuana facility.


Enclosed building means a combination of materials forming a structure affording a facility or shelter for use or occupancy by individuals or property in which a proper ventilation system allows for all windows, entrances, and exits to safely remain closed, with the exceptions of normal entry and exit of the building for business purposes, and safety or emergency purposes i.e. fire. Building includes a part or parts of the building and all equipment in the building. A building shall not be construed to mean a building incidental to the use for agricultural purposes of the land on which the building is located.


Grower or grower facility means a commercial entity that cultivates, dries, trims, or cures and packages marihuana for sale to a processor or provisioning center. Grower facilities are divided into classes: class A facility—up to 500 plants; class B facility—up to 1,000 plants; class C facility—up to 1,500 plants, and excess grower—expansion of grower who already holds five adult use class C grower licenses.


License means a current, valid license for a commercial medical marihuana facility issued by the State of Michigan.


Licensee means a person holding a current, valid Michigan license for a commercial medical marihuana facility.

Marihuana means that term as defined in Section 7106 of the Public Health Code, 1978 PA 368, MCL 333.7106.


Marihuana plant(s) means any plant of the species Cannabis sativa L.


Medical marihuana means that term as defined in the Public Health Code, MCL 333.1101 et seq.; the Michigan Medical Marihuana Act, MCL 333.26421 et seq.; the Michigan Medical Marihuana Facilities Licensing Act, MCL 333.27101 et seq.; and the Michigan Medical Marihuana Tracking Act, MCL 333.27901 et seq.


Medical marihuana facility(s) means any facility, establishment and/or center at a specific location which is licensed under this chapter to operate under the Michigan Medical Marihuana Facilities Licensing Act, MCL 333.27101 et seq., including a provisioning center, grower, processor, safety compliance facility, and secure transporter. The term does not include or apply to a "primary caregiver" or "caregiver" as the term is defined in the Michigan Medical Marihuana Act, MCL 333.26421 et seq.


Permit means a current, valid permit for a commercial marihuana facility issued pursuant to this article, granted to a permit holder valid for a specific permitted premises and a specific permitted property.


Permit holder means the person that holds a current, valid permit under this article.


Permitted premises means the particular building or buildings within which the permit holder will be authorized to conduct the facility's activities pursuant to the permit.


Permitted property means the real property comprised of the lot, parcel or other designated unit of real property upon which the permitted premises is situated.


Person means a natural person, company, partnership, profit or non-profit corporation, limited liability company, or any joint venture for a common purpose.


Processor or processor facility means a commercial entity that purchases marihuana from a grower and that extracts resin from the marihuana or creates a marihuana-infused product for sale and transfer in packaged form to a provisioning center.


Provisioning center or retail establishment means a commercial entity that purchases marihuana from a grower or processor and sells, supplies, or provides marihuana to registered qualifying patients, directly or through the patients' registered primary caregivers. Provisioning center or retail establishment includes any commercial property where marihuana is sold at retail to registered qualifying patients or registered primary caregivers. The term does not include or apply to a non-commercial location used by a primary caregiver to assist a qualifying patient connected to the caregiver through the department's marihuana registration process in accordance with the MMMA.


Recreational marihuana means that term as defined in the Public Health Code, MCL 333.1101 et seq. and Michigan Regulation and Taxation of Marihuana Act, MCL 333.27951 et seq.


Recreational marihuana facility(s) means any facility, establishment and/or center at a specific location which is licensed under this chapter to operate under the Michigan Regulation and Taxation of Marihuana Act, MCL 333.27951 et seq., including a provisioning center, grower, excess grower, processor, safety compliance facility, secure transporter, marihuana event organizer, temporary marihuana event, and designated consumption establishment.


Safety compliance facility means a commercial entity that receives marihuana from a medical marihuana facility or registered primary caregiver, tests it for contaminants and for tetrahydrocannabinol and other cannabinoids, returns the test results, and may return the marihuana to the medical marihuana facility.


School (as defined in MCL 257.627a) means an educational institution operated by a local school district or by a private, denominational, or parochial organization. School does not include either of the following:


  1. An educational institution that the department of education determines has its entire student population in residence at the institution.

  2. An educational institution to which all students are transported in motor vehicles.


Secure transporter means a commercial entity that stores medical marihuana and transports medical marihuana between medical marihuana facilities for a fee.


(Ord. No. 17-035, 12-13-2017; Ord. No. 18-009, 6-7-2018; Ord. No. 19-001, 6-3-2019; Ord. No. 20-002, 2-3-2020)


DIVISION 2. - PERMITS

Sec. 46-502. - Generally.

a) No person shall operate a commercial marihuana facility, establishment or other business which requires state licensure, in the city without first obtaining a permit from the city clerk. Further, any permit application approved pursuant to this article should not be effective and no marihuana facility, establishment, or other business which requires state licensure may operate unless said operation is pursuant to a license or approval issued under the authorized state licensing agency.


b) The issuance of any permit or renewal permit pursuant to this article shall not confer any vested rights, property or other right, duty, privilege or interest in a permit of any kind or nature whatsoever including, but not limited to, any claim of entitlement or reasonable expectation of subsequent renewal on the applicant or permit holder and shall remain valid only for one year immediately following its approval.


c) A permit holder may transfer a permit issued under this article to a different location upon receiving approval from the city commission. In order to request approval to transfer a permit location, the permit holder must make a written request to the city clerk, indicating the current permit location and the proposed permit location. Upon receiving the written request, the city clerk shall refer a copy of the written request to each of the following for their approval: the fire department, the building inspection department, the police department, the zoning administrator, and the city treasurer. Prior to final approval of transfer the permit holder must submit an updated application and any supporting documents. No permit transfer shall be recommended for approval unless each individual department gives written approval that the permit holder and the proposed permit location meet the standards identified in this article, including but not limited to section 46-505, and the city clerk has determined the proposed location meets the requirements of section 46- 505.


d) A permit holder may transfer a valid permit issued under this article to a new individual or entity upon obtaining approval from the city commission. A request for transfer of a valid permit to a new individual or entity must be made in writing, to the city clerk. The permit holder must provide documentation from the state agency indicating the state license may be transferred. Upon receiving the written request the city clerk shall consider the request as a new application for a permit and the procedures set forth in section 46-505 shall be followed including submission of the non-refundable permit application fee. Application fees are nontransferable.


e) A permit holder must submit to the city a copy of their valid state license within 180 days of issuance of the permit under this article. Failure to provide such proof may result in suspension or revocation of the permit.


f) If a permit holder has not obtained a valid state license at the end of 180 days, they may request an extension of time on a form provided by the city clerk. The city clerk may require additional/supplemental information to confirm the reasons for delay. Failure to provide the required information may result in denial of extension. Extensions will be granted or denied by the city clerk. The granting of an extension shall not exceed 120 days or the expiration date of the current permit.


g) If the facility is a new build/construction and State licensing has not been issued within 180 days, the permit holder may request a form from the city clerk to apply for building and/or fire inspection waivers. A waiver will be granted or denied by the city clerk. The granting of a waiver shall not exceed one year or the expiration date of the current permit.


h) To the extent permissible under law, all information submitted in conjunction with an application for a permit or permit renewal required by this article 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 medical marihuana commission. (Ord. No. 17-035, 12-13-2017; Ord. No. 18-009, 6-7-2018; Ord. No. 19-001, 6-3-2019)


Sec. 46-503. - Authorization and prohibition of commercial marihuana acilities/establishments in the city.

a) The following types of commercial medical marihuana facilities are authorized to operate in the city:

  1. Growers: class A, B, and C.

  2. Marihuana processor.

  3. Marihuana provisioning center.

  4. Marihuana secure transporter.

  5. Marihuana safety compliance facility.


The following types of commercial adult-use marihuana establishments are authorized to operate in the city:

  1. Growers: class A, B, and C and excess growers. Marihuana processor.

  2. Marihuana retailer.

  3. Marihuana secure transporter.

  4. Marihuana safety compliance facility.

The following types of commercial adult-use marihuana establishments and/or license holders are prohibited from operating in the city:

  1. Marihuana microbusinesses.

  2. Marihuana event organizers.

  3. Temporary marihuana events.

  4. Designated consumption establishments.


(Ord. No. 17-035, 12-13-2017; Ord. No. 19-013, 10-7-2019)


Sec. 46-505. - Requirements for permit application submission.

a) Every marihuana facility, establishment, or other business in the city shall be subject to the terms and provisions set forth in this article. No person shall operate a marihuana facility, establishment, or other business in the city without a current, valid permit issued by the city pursuant to the provisions of this article. The permit requirements set forth in this article shall be in addition to, not in lieu of any other licensing and/or permitting requirements imposed by any other federal, state, or local law.


b) Applications for permits shall be made annually. Each complete application for a permit or permits required by this article shall be made on forms provided by the city clerk.


c) Every applicant for a marihuana facility, establishment, or other business permit shall complete and file the application form provided by the city clerk's office. Any application missing information in any required field will be deemed incomplete and is subject to denial of the permit by the city clerk. Each question in the (1) (2) (3) (4) (5) (6) (7) application must be answered in its entirety and all the information requested and required by this article must be submitted with the application. Failure to comply with these rules and the application requirements in this article is grounds for denial of the application. An application for a commercial marihuana facility permit shall contain all of the following:


  1. Current documentation from the State of Michigan showing approved pre-qualification status for any state required commercial marihuana license or a copy of a valid state required commercial marihuana license.

  2. If the applicant is an individual, the applicant's name, date of birth, physical address, email, one or more phone numbers, including emergency contact information, and a copy of a valid unexpired driver's license or state ID for the applicant. Acceptable ID will be issued by the state in accordance with the Medical Marihuana Facilities Licensing Act, MCL 333.27101 et seq., the Michigan Regulation and Taxation of Marihuana Act MCL 333.27951 et seq.; and all other applicable rules promulgated by the State of Michigan.

  3. 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, a copy of a valid unexpired driver's license or state ID for each applicant or stakeholder of the applicant. Acceptable ID will be issued by the state in accordance with the Medical Marihuana Facilities Licensing Act, MCL 333.27101 et seq., the Michigan Regulation and Taxation of Marihuana Act MCL 333.27951 et seq.; and all other applicable rules promulgated by the State of Michigan. Additionally, if the applicant is a limited liability company, articles of incorporation of organization, internal revenue service SS-4 EIN confirmation letter, and the operating agreement or bylaws of the applicant, are required.

  4. The name and address of the proposed commercial marihuana facility and any additional contact information deemed necessary by the city clerk including name, address, and telephone number of the owner(s) of all real property where the facility is located.

  5. One of the following: (a) proof of ownership of the entire premises wherein the commercial marihuana facility is to be operated; or (b) a notarized statement from the property owner for use of the premises in a manner requiring licensure under this article along with a copy of any lease for the premises.

  6. A signed release shall be provided, on a form included with the application, permitting the city police department to perform a criminal background check to ascertain whether any person named on the application has been convicted of any disqualifying felony or any controlled-substance-related misdemeanor under Michigan law or the law of any other state or the United States.

  7. A signed acknowledgement 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 laws, rules and regulations, and that the approval or granting of a permit 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, and attorney fees that applicant may incur as a result of a violation by applicant, its officials, members, partners, shareholders, employees and agents, 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.

  8. A signed acknowledgement that all cultivation must be performed in an enclosed building.

  9. 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, fees or other financial obligation to the city.

  10. For each permit type the following documentation is required: a) Proof of a surety bond in the amount of $100,000.00 with the city listed as the obligee to guarantee the performance by applicant of the terms, conditions and obligations of this article in a manner and surety approved by the city attorney; or, in the alternative, b) Proof of 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 approved by the city attorney based upon an objective assessment of the institution's financial stability; and 2. The account must be for the benefit of the city to guarantee performance by licensee in compliance with this article and applicable law; and 3. The account must be in the amount of $20,000.00 and in a form prescribed by the city attorney.

  11. Proof of an insurance policy covering each facility 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 (a) at least $1,000,000.00 for property damage; (b) at least $1,000,000.00 for injury to one person; and (c) at least $2,000,000.00 for injury to two or more persons resulting from the same occurrence. 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.

  12. Any other information deemed by the city to be required for consideration of a permit.


d) All applications shall be accompanied by a non-refundable permit application fee for each permit type. The renewal fee is established to defray the costs of the administration of this article and is set by resolution of the city commission.


(Ord. No. 17-035, 12-13-2017; Ord. No. 18-009, 4-16-2018; Ord. No. 18-009, 6-7-2018; Ord. No. 19-001, 6-3-2019; Ord. No. 20- 002, 2-3-2020)


Sec. 46-506. - Requirements for application for renewal of annual permit.

a) A completed application for a renewal permit must be received by the city clerk no later than 90 days prior to the expiration of the current permit. Pending applications for annual renewal or amendments of existing permits shall be reviewed, and granted or denied by the city commission prior to new permit applications being considered.


b) Applications for renewal of permits shall be made annually. Each complete application for a permit or permits required by this article shall be made on forms provided by the city clerk and must meet all requirements of section 46-505.

1. Applications for renewal of permits issued in 2018 only shall qualify for an exception

to subsection 46-505(c)


c) All renewal applications shall be accompanied by a non-refundable permit application fee for each permit type. The renewal fee is established to defray the costs of the administration of this article, and is set by resolution of the city commission.


(Ord. No. 19-001, 6-3-2019; Ord. No. 20-002, 2-3-2020) Editor's note— See note at § 46-507


Sec. 46-507. - Issuance or denial of new or renewal permit.

a) Upon submission of an applicant's completed application, including all required information and documentation, the city clerk shall accept the application and assign it a sequential number based on the date and time the application was accepted and refer a copy of the application to each of the following for their approval: the fire department, the building inspection department, the police department, the zoning administrator, the city treasurer, and the legal department.


b) A permit means only that the applicant has submitted a valid application for a marihuana facility, establishment, or other business permit, and that the applicant shall not locate or operate a marihuana facility without obtaining all other permits and approvals required by all other applicable ordinances and regulations of the city, as well as, all statutes and regulations of the State of Michigan including but not limited to the Public Health Code, MCL 333.1101 et seq.; the Michigan Medical Marihuana Act, MCL 333.26421 et seq.; the Michigan Medical Marihuana Facilities Licensing Act, MCL 333.27101 et seq.; the Michigan Medical Marihuana Tracking Act, MCL 333.27901 et seq.; the Michigan Regulation and Taxation of Marihuana Act, MCL 333.27951 et seq., and all other applicable rules promulgated by the State of Michigan.


c) A permit is valid only for the permit holder and location identified on the permit and may only be transferred by approval of the city commission pursuant to subsections 46-502(c) and (d) of