Sec. 5.9.19. Marihuana Facilities.
A. Purpose. The concentration of any one use within a smaller geographic area can be burdensome for reasons of excessive parking needs and/or traffic congestion where there is high demand and can limit the type and variety of businesses that might otherwise exist if there is an oversaturation. The City of Grand Rapids Master Plan describes the desire for Mixed-Use Commercial Zone Districts and encourages a variety of land uses. It the intent of these provisions to ensure that quality of life is not impaired, neighborhood character is preserved, commercial retail viability and variety is enhanced and encouraged, or the stability of industrial areas is maintained.
B. Applicability. Any land use that requires a license from the Department of Licensing and Regulatory Affairs (LARA) in the administration of Michigan Medical Marihuana Facilities Licensing Act (MMFLA), Michigan Regulation and Taxation of Marihuana Act (MRTMA) or other state law providing for the sale, transport, testing, growing, distribution, and processing of marihuana or any other activity involving a marihuana-related use shall require review and approval as specified in Table 5.9.19.D. Any facility not specifically authorized in Table 5.9.19.D. is prohibited. Provisions of this Section do not apply to the medical use of marihuana in compliance with the Michigan Medical Marihuana Act (MMMA).
C. The Planning Commission is prohibited from waiving any portion of this Section, except as specifically authorized by Section 5.9.19.E.6. At the Director's discretion, any Director Review application may be forwarded to the Planning Commission for Special Land Use approval if the Director deems that the application could benefit from a review by the Commission.
D. Approval Procedures for Marihuana Facilities.
1. License Type. Marihuana facilities are permitted in accordance with the approval procedures described in Table 5.9.19.D. Licensed facilities may be co-located on the same parcel as allowed by Section G.2. and each license type shall be separately subject to the approval procedures described below.
2. Conversion. Conversion between license types is permitted in accordance with the approval procedures described in Table 5.9.19.D.
3. Considerations.
i. During the approval process regulations for these facilities must take into consideration the use type and type of activities, hours of operation, excessive use of police resources which could reasonably be anticipated to be generated by the proposed establishment, both outside and inside, with particular emphasis upon noise, calls for service, trespass enforcement, parking, vehicular use by patrons, and vandalism and the secondary effects resulting from these uses. More specifically, these may include the hours of operation of the proposed establishment will have upon neighboring properties, with attention to the effects of noise, odors, litter, loitering, parking, and glare from exterior lighting or headlights on nearby residential properties. ii. A marihuana facility is not eligible for a state operating license until the Planning Director or Planning Commission grants approval using the defined process, as described in Table 5.9.19.D. and in Article 12, Section 5.12.09. The City Clerk will grant final authorization for the facility upon receipt of the signed resolution of approval.
E. Separation Distances and Waivers.
1. Purpose.
i. Marihuana businesses have demonstrated a strong demand for storefront spaces and other business locations. It has been observed that without separation distances between these facilities and certain other land uses marihuana facilities can tend to concentrate in clusters. It is further recognized that these uses which, because of their very nature, have serious objectionable operational characteristics, particularly when concentrated under certain circumstances. ii. Special regulations of marihuana facilities have been deemed necessary to limit the intensity and density of this use, and to recognize that separation distances are necessary from certain uses as described in this Section.
2. Separation Distance Measurements. The distances described in this subsection shall be computed by measuring a straight line from the nearest property line of the parcel used for the purposes stated in this subsection to the nearest property line of the parcel used as a marihuana facility. 3. Applicability. The location and co-location of authorized facilities shall be determined as follows:
a. The following minimum-distancing regulations shall apply to marihuana provisioning centers and retailers, except for provisioning centers or retailers co-located in an IT-District, pursuant to 5.9.19.E.4. A provisioning center or retailer shall not be located within:
i. One thousand (1,000) feet of a child care center, or a school; ii. One thousand (1,000) feet of a youth center; iii. One thousand (1,000) feet of a publicly owned park or playground; iv. One thousand (1,000) feet of a religious institution; v. One thousand (1,000) feet of a Substance Use Disorder Program licensed by the State of Michigan; vi. One thousand (1,000) feet of a Residential Zone District, as defined in this Chapter, as measured along the primary street frontage on which the use is located; vii. Two thousand (2,000) feet of another provisioning center or retailer location that is located within a mixed-use commercial zone district and one thousand (1,000) feet of another provisioning center or retailer location that is located within an industrial zone district; and viii. One thousand (1,000) feet of another marihuana facility location, other than a provisioning center or retailer.
b. The following minimum-distancing regulations shall apply to marihuana processors, marihuana growers, and marihuana provisioning centers or retailers co-located in an IT-District pursuant to 5.9.19.E.4. A facility shall not be located within:
i. One thousand (1,000) feet of a child care center, or a school; ii. One thousand (1,000) feet of a youth center; iii. One thousand (1,000) feet of a publicly owned park or playground; iv. One thousand (1,000) feet of a religious institution; v. One thousand (1,000) feet of a Substance Use Disorder Program licensed by the State of Michigan; vi. One thousand (1,000) feet of a Residential Zone District, as defined in this Chapter, as measured along the primary street frontage on which the use is located; and vii. One thousand (1,000) feet of another facility location (see 5.9.19.E.4.a.).
c. The following minimum-distancing regulations shall apply to marihuana microbusinesses. A microbusiness shall not be located within:
i. One thousand (1,000) feet of a child care center, or a school; ii. One thousand (1,000) feet of a youth center; iii. One thousand (1,000) feet of a publicly owned park or playground; iv. One thousand (1,000) feet of a religious institution; v. One thousand (1,000) feet of a Substance Use Disorder Program licensed by the State of Michigan; vi. Five hundred (500) feet of a Residential Zone District, as defined in this Chapter, as measured along the primary street frontage on which the use is located; vii. When located in a TCC or C Zone District facility must be five hundred (500) feet of another marihuana facility location; and viii. When located in a TOD or TBA Zone District facility must one thousand (1,000) feet of another marihuana facility location.
d. Exception. A marihuana facility or marihuana establishment which has received Special Land Use and/or Director Site Plan approval prior to September 29, 2020 shall not be subject to the minimum distancing regulations for a youth center.
4. For the purpose of determining a separation distance described in this Section the following definitions shall apply:
a. A marihuana facility is defined as a location at which the proposed land use has been approved and is effective pursuant to this Section. This does not include Secure Transporters or Safety Compliance Facilities. b. School is defined as any building, playing field, or property used for school purposes to impart instruction to children in grades kindergarten through 12, when provided by a public, private, denominational, or parochial school, except those buildings used primarily for adult education or college extension courses.
5. An application seeking land use approval at a location does not foreclose the filing or consideration of an application for another location located within a minimum distance requirement outlined in this Section. However, once land use approval has been granted to a marihuana facility no other application within the applicable minimum distance requirement shall be considered. 6. Sensitive Use Waiver. Waivers granted by the Planning Commission for a medical marihuana land use are applicable only to that land use, except that any sensitive use waiver granted before September 29, 2020 for a marijuana provisioning center may be applied to the consideration of a marijuana retail use at the same location as part of the Planning Commission Special Land Use consideration and in accordance with the standards of Section 5.12.09.
F. Co-Location and Stacked Licenses. There may be only one (1) state operating license per parcel, except co-location and stacked grower licenses are permitted as permitted in subsections 2. and 3. below.
1. Once the initial license has been approved the application of separation distance requirements is not applicable. A facility with a stacked grower license counts as a single grower for the purposes of facility separation distance requirements. 2. In Mixed-Use Commercial Zone Districts co-location is allowed if each license is for a separate use (other than stacked grower licenses), subject to Table 5.9.19.D, all applicable state laws, rules and regulations concerning co-location, including but not limited to, LARA requirements for the separation of facilities. 3. In the IT Industrial-Transportation District, co-location is allowed if each license is for a separate use (other than stacked grower licenses), subject to Table 5.9.19.D, all applicable state laws, rules and regulations concerning co-location, including but not limited to, LARA requirements for the separation of facilities and GFA requirements in this Chapter. Retailers or provisioning centers may be co-located with a grower or processor as long as the retail GFA is not more than twenty-five (25) percent of the combined GFA.
G. Application Requirements. Each application shall be accompanied by a detailed site plan and any information necessary to describe the proposed use or change of use. Each request shall be considered a new application, including those for class change, stacking, expansion, transfers or other modifications that require Director Review or Special Land Use approval. If more than one (1) use is being requested for a parcel at the same time (e.g. co-location) only one (1) application shall be processed. Only one (1) application shall be processed per parcel at a time; once and application is submitted, any other applications for the same parcel will be rejected until the first application is decided. The following shall be submitted as part of an application in addition to the requirements of Section 5.12.09. All items must be satisfactorily completed for an application to be considered eligible for review.
1. Verification. A signed statement by the applicant indicating the proposed facility type, including if the proposed facility type involves stacked licenses or co-location and the number of licenses. 2. Consent. A notarized statement by the property owner that acknowledges use of the property for a marihuana facility and agreement to indemnify, defend and hold harmless the City, its officers, elected officials, employees, and insurers, against all liability, claims or demands arising out of, or in connection to, the operation of a marihuana facility. Written consent shall also include approval of the owner and operator for the City to inspect the facility at any time during normal business hours to ensure compliance with applicable laws and regulations. 3. LARA. A copy of official paperwork issued by LARA as follows:
a. For grower, processor, and provisioning center applications: Paperwork indicating that the applicant has successfully completed the prequalification step of the application for the state operating license associated with the proposed land use. b. For secure transporter and safety compliance facility applications: Paperwork indicating that the applicant has successfully completed the prequalification step of the application for the state operating license associated with the proposed land use, or proof that the applicant has filed such application for the prequalification step with LARA, including all necessary application fees. c. For all marihuana facility applications: Required LARA marihuana facility plans and security plans shall be submitted. Copies of all documents submitted to LARA in connection with the initial license application, subsequent renewal applications, or investigations conducted by LARA shall be made available upon request when such information is necessary and reasonably related to the application review.
4. Proof of Insurance. Evidence of a valid and effective policy for general liability insurance within minimum limits of one million dollars ($1,000,000.00) per occurrence and a two million dollar ($2,000,000.00) aggregate limit issued from a company licensed to do business in Michigan having an AM Best rating of at least B++ shall be produced that includes the name/s of the insured, effective and expiration dates, and policy number. The City of Grand Rapids and its officials and employees shall be named as additional insureds. The City shall be notified of any cancellation, expiration, reduction in coverage, or other policy changes within five (5) business days of the event. 5. Building Elevations. Existing and proposed building elevations shall be provided, including building materials, window calculations, descriptions of glass to be used, and other pertinent information that describes building construction or structural alterations. 6. Site Plan. Existing and proposed site changes must be submitted that demonstrate compliance with this Chapter. 7. Sign and Lighting Plan. A sign plan for the exterior of the building and any interior signs that will be visible to the public from the public right-of-way shall be submitted with sizes, lighting, and locations. All lighting fixtures visible to the public shall be identified by location, type, and intensity. 8. Radius. A map, drawn to scale, containing all child care centers, schools, publicly owned parks or playgrounds, religious institutions, Substance Use Disorder Programs, Residential Districts, and any marihuana facilities within one thousand (1,000) feet of the proposed location. 9. Crime Prevention Through Environmental Design (CPTED) Plan. The plan shall address surveillance methods, access control strategies, territorial reinforcement, maintenance, and target hardening; including the experience of customers, employees, and neighbors (residents, offices, businesses, etc.). The GRPD shall review the CPTED Plan prior to acceptance of the application and shall approve the Plan prior to the Planning Commission public hearing. 10. Operations and Management Plan. An operations and management plan shall be submitted. The O&M plan should describe security measures in the facility; this may include the movement of the product, methods of storage, cash handling, etc. See also Section 5.9.19.G. 11. Good Neighbor Plan (GNP). A GNP shall be submitted in accordance with the requirements of Section 5.12.06.D. and Table 5.9.19.D. An updated GNP may be required for expansion requests and applications for Director Review. 12. Marihuana Industry Voluntary Equitable Development Agreement (MIVEDA). A MIVEDA may be voluntarily offered and submitted as part of the application. If submitted as part of an application, the terms offered in the MIVEDA will be required and implemented into the final approval of the project. The contents of the agreement shall be developed within the framework of City Commission policy.
H. Operations. Marihuana facilities must be operated in compliance with all applicable state laws, LARA rules, all conditions of the facility's state operating licenses, and all applicable city ordinances. In addition, such facilities shall comply with the following regulations:
1. Use. Where located in a Mixed-Use Commercial Zone District, the use shall contribute to the vibrancy and walkability of the district. Uses shall be presented as being for retail purposes, unless ground-floor office use is permitted with administrative approval. 2. Facility Exterior. The exterior appearance of a facility must be compatible with surrounding businesses and any descriptions of desired future character, as described in the Master Plan or an Area-Specific Plan.
a. No marihuana or equipment used in the growing, production, sale, processing, or transport of marihuana can be placed or stored outside of an enclosed building. This Section does not prohibit the placement or storage of motor vehicles outside of an enclosed building so long as money or marihuana is not left in an unattended vehicle. b. Site and building lighting shall be sufficient for safety and security, but not cause excessive glare or be designed so as to be construed as advertising with the intent to attract attention. Outdoor lighting will comply with Section 5.2.19. c. Drive-through facilities and mobile facilities are prohibited.
3. Interior of Facility. A facility will not be designed to attract attention, limit the life of the structure in which the facility is located, or create a nuisance.
a. Interior construction and design of a facility will not impede the future use of a building for other uses as permitted in the assigned zone district. b. Neither marihuana nor marihuana-infused products may be directly visible from the exterior of the facility. c. Interior security measures shall not be visible from the public right-of-way (e.g. security shutters, bars, or other methods) during operating business hours. d. Interior walls between waiting rooms and display areas shall be forty (40) percent clear glass if the separation wall is thirty (30) feet or less away from the inside of the exterior building wall for the purposes of maintaining an active storefront. e. Interior lighting shall not be so bright so as to create a nuisance to neighboring property owners or passersby. f. Provisioning centers may not be open to customers between the hours of 9:00 p.m. and 9:00 a.m. The main entry of the business establishment will be wheelchair accessible. g. The separation of plant resin by butane extraction or another method that utilizes a substance with a flashpoint below one hundred (100) degrees Fahrenheit shall only be allowed in the IT Industrial-Transportation Zone District. h. Ventilation, by-product and waste disposal, and water management (supply and disposal) for the facility will not produce contamination of air, water, or soil; or reduce the expected life of the building due to heat and mold; or create other hazards that may negatively impact the structure and/or surrounding properties. i. Air contaminants must be controlled and eliminated by the following methods:
i. The building must be equipped with an activated air scrubbing and carbon filtration system that eliminates all air contaminants prior to leaving the building. Fan(s) must be sized for cubic feet per minute (CFM) equivalent to the volume of the building (length multiplied by width multiplied by height) divided by three (3). The filter(s) shall be rated for the applicable CFM. ii. Air scrubbing and filtration system must be maintained in working order and must be in use at all times. Filters must be changed per manufacturers' recommendation to ensure optimal performance. iii. Negative air pressure must be maintained inside the building. iv. Doors and windows must remain closed, except for the minimum time length needed to allow people to ingress or egress the building. v. An Administrative Departure may be granted for an alternative odor control system, in accordance with the Michigan Mechanical Code, if a mechanical engineer licensed in the State of Michigan submits a report that sufficiently demonstrates the alternative system will be equal to or better than the air scrubbing and carbon filtration system otherwise required. vi. For purposes of this section, "air contaminants" means stationary local sources producing air-borne particulates, heat, odors, fumes, spray, vapors, smoke or gases in such quantities as to be irritating or injurious to health.
I. Annual fee. A licensee must pay a registration fee of five thousand dollars ($5,000.00), for each license used within the City to help defray administrative, compliance monitoring and enforcement costs. The holder of stacked or co-located licenses must pay a separate fee in the amount of five thousand dollars ($5,000.00) for each license. The initial annual registration fee(s) must be paid when the application for City approval is submitted. In each subsequent year, registration fees are due on the date of the City license approval. Fees assessed for marihuana land use approvals or licensing in addition to, not in lieu of, any licensing, land use or other permitting requirements of any law, state regulatory agency, or by City ordinance. J. Violations.
1. A marihuana facility shall not be granted a state operating license until the findings and approvals of this Section are completed. 2. Civil infraction. It is unlawful to disobey, neglect, or refuse to comply with any provision of this Chapter. A violation is a municipal civil infraction. Each day the violation continues shall be a separate offense. Notwithstanding any other provision of this ordinance to the contrary, violators shall be subject to fines as determined by the City Commission. 3. Failure to comply with the requirements of this Section shall be considered a violation and may jeopardize the Director or Special Land Use approval and/or license. 4. Consumption. It shall be a violation of this Chapter for smoking, inhalation, or other consumption of marihuana, or for a person to knowingly allow this behavior to take place on or within the premises of any facility. All of the following will give rise to the rebuttable presumption that a person allowed the consumption of marihuana on or within the premises:
a. The person had control over the premises or the portion of the premises where the marihuana was consumed; b. The person knew or reasonably should have known that the marihuana was consumed; and c. The person failed to take corrective action.
K. Loss of State Operating License. If at any time an authorized facility violates this Chapter or any other applicable City ordinance, the City Commission may request that LARA revoke or refrain from renewing the facility's state operating license.
1. Revocation of Special Land Use approval. Any approval granted for a facility may be revoked or suspended for any of the following reasons:
a. Revocation or suspension of the licensee's authorization to operate by LARA. b. A finding by LARA that a rule or regulation has been violated by the licensee. After an automatic revocation of a Special Land Use approval, a new Special Land Use application shall be required for a facility to commence operation at the same location.
2. Failure to obtain state license. In addition to the requirements stated in Section 5.12.09.H.(2) or 5.12.16.B.(6), whichever is applicable, if the applicant fails to obtain the necessary license from LARA within the one (1) year approval period or any extension, the Director or Special Land Use approval shall expire. 3. Cessation of operations. Cessation of operations for one (1) year, including failure to maintain state licenses necessary to engage in the approved land use is cause for revocation of the Director or Special Land Use approval.
L. Rights. The operation of a licensed marihuana facility is a revocable privilege and not a right, in conformance with applicable state law. Nothing in this Chapter is to be construed to grant a property right for an individual or business entity to engage in the use, distribution, cultivation, production, possession, transportation or sale of marihuana as a commercial enterprise. Any individual or business entity which purports to have engaged in these activities either prior to or after the enactment of this amendment without obtaining the required authorization is deemed to be an illegally established use and is not entitled to nonconforming use status. Nothing in this Chapter may be held or construed to grant a vested right, license, permit or privilege to continued operations within the City. M. State Law. Nothing in this Chapter shall be construed in such a manner as to conflict with the MMMA, MMFLA, MRTMA, or other applicable state marihuana law or rules. N. Federal Law.
1. Nothing in this Chapter, or in any companion regulatory provision adopted in any other provision of this Code, is intended to grant, nor shall they be construed as granting, immunity from criminal prosecution for growing, sale, consumption, use, distribution, or possession of marihuana not in strict compliance with that Act and the General Rules. 2. Also, since Federal law is not affected by that Act or the General Rules, nothing in this Chapter, or in any companion regulatory provision adopted in any other provision of this Code, is intended to grant, nor shall they be construed as granting, immunity from criminal prosecution under Federal law. The Michigan Acts do not protect users, caregivers or the owners of properties on which the use of marihuana is occurring from Federal prosecution, or from having their property seized by Federal authorities under the Federal Controlled Substances Act.
O. Receipt of Applications. The Planning Department shall accept complete applications for any recreational marihuana land use that requires a license from LARA in the administration of MRTMA beginning on October 20, 2020. Applications for medical-only marihuana land uses shall be accepted on a continuous basis.
(Ord. No. 2018-45, § 8, 7-24-18; Ord. No. 2018-70, § 4, 12-18-18; Ord. No. 2020-21, § 9, 7-7-20; Ord. No. 2020-43, §§ 1—4, 9-29-20)
Chapter 105 CANNABIS RELATED MUNICIPAL LICENSING[1]
Sec. 7.361. Purpose and Intent.
The City of Grand Rapids intends to license and regulate cannabis facilities and establishments as authorized under the Michigan Medical Marihuana Facilities Licensing Act (MMFLA), Public Act 281 of 2016, MCL 333.27101 et seq., and the Michigan Regulation & Taxation of Marijuana Act (MRTMA), Public Act 1 of 2018, MCL 333.27951 et seq., and to exercise authority as a home rule city to enforce ordinances under its police power in order to preserve the public health, safety, and welfare. By requiring a license and compliance with the requirements of this Chapter, the City intends to protect the public health, safety, and welfare by:
(1) Promoting the safe, regulated manufacturing, production, and sale by state-licensed cannabis establishments and facilities; (2) Discouraging the sale of unsafe and unlicensed cannabis products; (3) Preserving and protecting the health, safety, and welfare of the residents of the City and the general public by minimizing unsafe and unregulated cannabis production and sale; (4) Minimizing the impact of the cannabis industry's intensive use of water and energy, particularly the growing process of cannabis plants. It is the City of Grand Rapids' intention to minimize the impact cannabis establishments have on public infrastructure and the environment by maximizing efficiency and reducing the need for the use of nonrenewable resources wherever possible; (5) Promoting and encouraging participation in the cannabis industry by people from communities that have been disproportionately impacted by cannabis prohibition and enforcement and to positively impact those communities.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.362. Definitions.
The following terms shall have the definitions indicated for the purposes of this Chapter:
(1) Terms contained in the Michigan Medical Marihuana Facilities Licensing Act (MMFLA), Public Act 281 of 2016, MCL 333.27101 et seq., and the Michigan Regulation and Taxation of Marijuana Act, Public Act 1 of 2018, MCL 333.27954 et seq., as amended (MRTMA), apply to the terms found herein. This Chapter contains some words and phrases that are defined in the MMFLA and the MRTMA. As used in this Chapter, they have the same meaning as provided in the MMFLA & MRTMA, unless the term is otherwise defined in this Chapter or the context requires a different meaning. (2) "Applicant" means a person who applies for a Cannabis Related Municipal License under this Chapter. (3) "Cannabis" shall have the same meaning as "marihuana" as defined in the MRTMA, MCL 333.27953(e). The term "cannabis" shall be the preferred term used in this ordinance, unless the term "marihuana" occurs in a proper name, including a state statute or agency name. (4) The words "Establishments" and "Facilities" are used interchangeably and refer to any cannabis related locations at which a licensee is licensed to operate under either MMFLA, MRTMA, or both. (5) "Licensee" means a person or entity issued a cannabis establishment or facility license under this Chapter or by the State, including safety compliance facilities, cannabis event organizers, temporary events, and secure transporters. (6) "Municipal cannabis license" or "license" means a required Cannabis Related Municipal License issued pursuant to this Chapter that allows the licensee to operate within the City as one (1) of the following, as specified in the license:
(a) Grower, including Class A Grower, Class B Grower, Class C Grower, and Excess Grower; (b) Processor; (c) Provisioning Center; (d) Retailer; (e) Designated Consumption Establishment; (f) Microbusiness; (g) Safety Compliance Facility; (h) Secure Transporter; (i) Cannabis Related Event Coordinator; (j) Cannabis Related Temporary Event.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.363. Cannabis Establishments and Licensees Authorized to Operate within the City.
(1) Pursuant to the MMFLA and MRTMA, the City of Grand Rapids authorizes the operation in the City of the following cannabis licenses, provided they possess a state operating license issued under the MMFLA, MRTMA, or both, and they comply with the additional requirements of this Chapter, Chapter 61 (Zoning), and all other applicable laws and ordinances:
(a) Class A Grower, Class B Grower, Class C Grower, and Excess Marijuana Grower; (b) Processor; (c) Provisioning Center; (d) Retailer; (e) Microbusiness; (f) Secure Transporter; (g) Safety Compliance Facility.
(2) Pursuant to the MRTMA, the City of Grand Rapids does not currently authorize operation in the City of the following cannabis licenses:
(a) Designated Consumption Establishment; (b) Cannabis Related Temporary Event.
(3) A Cannabis Related Event Coordinator may be located within the City of Grand Rapids without a municipal license, so long as none of the coordinated events are held within the City of Grand Rapids. (Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.364. Cannabis Related Municipal License Required.
(1) No person shall operate a cannabis establishment in the City of Grand Rapids without first obtaining a municipal license and/or permit to do so as required by this Chapter. (2) For co-located cannabis establishments, as authorized by this Code and state law, a separate Cannabis Related Municipal License is required for each type of establishment operated. (3) For cannabis establishments with stacked and/or excess grow operations as authorized by this Code and state law, a license is required for each stacked and excess cannabis grower license. (4) The license requirement in this Chapter shall be in addition to any other requirements imposed by any other state or local law, including but not limited to state or local laws applicable to commercial entities performing functions similar to the functions performed by cannabis establishments. (5) A license issued under this Chapter shall be valid for one (1) year after the date of issuance, unless the City Clerk issues a longer license as authorized by this chapter. The expiration date of the state operating license that corresponds to a cannabis facility license issued under this Chapter constitutes the expiration date of the Cannabis Related Municipal License. Expiration of the Cannabis Related Municipal License does not affect a person's licensure under MMFLA or MMRTA but does affect the person's ability to operate a cannabis establishment in the City. (6) This Chapter does not apply to, or regulate, any patient or caregiver conduct protected by the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 et seq. (MMMA).
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.365. General Provisions.
(1) A Cannabis Related Municipal License is a revocable privilege and not a right. Nothing in this Chapter may be held or construed to grant a vested right, license, permit or privilege to continued operations within the City. (2) A license issued under this Chapter is valid only for the applicant named on the license, the location of the establishment, and type of establishment identified on the license. Each license is personal and exclusive to the licensee. (3) The revocation, suspension, and placement of restrictions by the State on a state operating license apply equally to a license issued by the City. (4) An applicant or licensee has a continuing duty to provide information requested by the City and to cooperate in any investigation, inquiry, or hearing conducted by the City. (5) Acceptance of a license from the City under this Chapter constitutes consent by the licensee for the City to conduct inspections of the licensed premises to ensure compliance with this Chapter. (6) The issuance of any license pursuant to this Chapter does not create an exception, defense, or immunity to any person with regard to any potential criminal or civil liability the person may have under any federal or state law or city ordinance. (7) No Cannabis Related Municipal License may be sold, assigned, mortgaged or otherwise transferred.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.366. Application Requirements.
(1) An application for a cannabis facility license shall be submitted to the City Clerk in a form provided by the City. Any application that does not include all information requested by the application form or is not supported by the materials required by this Chapter or the license application shall be denied and/or rejected. (2) The application may require information that will enable the City Clerk to make a fair determination as to the applicant's fitness and ability to comply with the provisions of this Code and all other applicable laws, ordinances and regulations, including but not limited to:
(a) The name and address of the facility and any other contact information requested on the application form. (b) The name and address of all owners (entities and individuals) of the real property where the facility is located. (c) A copy of official paperwork issued by the State indicating that the applicant has successfully completed the prequalification step of the application for a state operating license. (d) Proof of applicant's ownership, legal possession, or otherwise legal interest in the premises. (e) Proof that the appropriate zoning approval has been received. (f) Copy of the security plan required by State Administrative Rule 35, R. 333.235, or MRTMA Emergency Rule 35, or their successor regulations. (g) Evidence of a valid and effective policy for general liability insurance within minimum limits of one million dollars ($1,000,000.00) per occurrence and a two million dollars ($2,000,000.00) aggregate limit issued from a company licensed to do business in Michigan having an AM Best rating of at least B++ shall be produced that includes the name/s of the insured, effective and expiration dates, and policy number. The City of Grand Rapids and its officials and employees shall be named as additional insureds. The City shall be notified of any cancellation, expiration, reduction in coverage, or other policy changes within five (5) business days of the event. (h) If the application is for a grower's license, the maximum number of plants that the applicant intends to grow. (i) Proof of environmental sustainability plan conforming to the requirements of this Chapter. (j) Proof of social equity plan conforming to the requirements of this Chapter. (k) Any information and materials required by City Policy. (l) Other information and materials specific to the type of establishment or activity being licensed as indicated on the license application.
(3) Payment of a non-refundable application fee per cannabis license sought and/or proof that the applicant has, within the prior three hundred sixty-five (365) days, paid the zoning application fee for zoning approval associated with the cannabis facility type identified in the application as required in Chapter 61, Section 5.9.19. Fees shall be offset to ensure the annual fees required by cannabis facility ordinances or zoning regulations promulgated pursuant to the MMFLA & MRTMA do not exceed five thousand dollars ($5,000.00) annually, per application.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.367. Environmental Sustainability.
(1) All establishments shall enroll in the Grand Rapids 2030 District prior to operation. Enrollment shall be, at a minimum, as a building owner or substantially similar enrollment option that enables the confidential reporting of cannabis facility performance data, which shall be reported via Energy Star Portfolio Manager on at least an annual basis and no later than sixteen (16) months after operations commence. (2) A grower of any class and microbusinesses shall be required to meet the following environmental sustainability requirements:
(a) Create and submit an analysis of predictive energy load, including design energy use intensity (EUI) to the City's Office of Sustainability as well as all energy utilities serving the applicant, including electricity, natural gas, and steam, at the time of the Cannabis Related Municipal License application. (b) Create and submit an environmental sustainability plan to the City's Office of Sustainability at the time of the Cannabis Related Municipal License application, that includes the following items:
(i) Estimated greenhouse gas (GHG) emissions for the coming year and reporting on the past year's GHG emissions; (ii) Identification of water efficiency measures planned; (iii) A list of wastewater pollutant loadings and toxics; and (iv) A solid waste management plan detailing disposal plans and anticipated amounts for plants, soils and other wastes that will be generated.
(c) At least fifty (50) percent of plant canopy area that is partially or fully illuminated by electric lighting shall be illuminated by fixtures with photosynthetic photon efficacy of at least 1.9 μmol/J at the time operations commence. (d) Submit a whole building energy audit meeting ASHRAE Level II guidelines or better to the City's Office of Sustainability within sixteen (16) months after operations commence. (e) All applications for renewal of any license shall include the environmental sustainability plan submission required by this section and proof of compliance with the annual reporting requirements under this Section.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.368. Conduct of Business at Licensed Cannabis Establishment.
(1) The operations at a licensed cannabis facility shall be conducted in compliance with the MMFLA and the MRTMA, and any rules promulgated pursuant to other laws, rules, and regulations of the state of Michigan and the City of Grand Rapids. (2) All security measures required by the State shall be maintained.
(a) Security devices and all components of those devices required by the State, including but not limited to, video surveillance systems, alarm systems, and locks, shall be in good working order. (b) Licensees shall register their video surveillance systems with the Grand Rapids Police Department.
(3) All cannabis in any form on the premises of a licensed cannabis facility shall be cultivated, manufactured, tested, sold, and packaged in the State of Michigan. (4) Access to the licensed cannabis establishment is restricted to the licensee, employees of the licensee, and adult patrons age 21 or older in establishments licensed for recreational cannabis, and the department, through its investigators, agents, auditors, or the State Police or authorized City employees acting within the scope of their employment. A separate waiting area may be created for visitors not authorized to enter the cannabis establishment. (5) Recreational cannabis products must be separated from medical cannabis products in accordance with State law. (6) A licensee shall display all cannabis facility licenses issued under this Chapter and state operating licenses in plain view clearly visible to patrons, clients, city officials, and state authorized agents. (7) A licensee shall not permit or allow the sale, consumption, or use of alcohol or tobacco products on licensed premises unless it is licensed to do so by the State and the City, and/or as otherwise permitted by law. (8) A licensee shall not permit or otherwise allow the use, smoke, inhalation, or consumption of cannabis, in any form, anywhere within a licensed cannabis establishment or on the property of a licensed establishment unless it is licensed to do so by the State and the City. (9) A licensee shall comply with the Michigan Construction Code and Americans with Disabilities Act Amendment Act of 2008 (ADAA) meeting ANSI A117.1.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.369. Social Equity Plan.
(1) All cannabis license applicants shall provide a social equity plan detailing any practices, initiatives, or policies the applicant will implement to promote and encourage participation in the cannabis industry by people from communities that have been disproportionately impacted by cannabis prohibition and enforcement and to positively impact those communities. (2) The social equity plan shall address, at a minimum:
(a) Employment practices regarding recruitment, hiring, promotion, or transfer of individuals that have been impacted by cannabis prohibition and enforcement or individuals from communities that have been disproportionately impacted by cannabis prohibition and enforcement; (b) Supplier practices to promote and encourage individuals that have been disproportionately impacted by cannabis prohibition and enforcement or individuals from communities that have been disproportionately impacted by cannabis prohibition and enforcement to participate in the cannabis industry as suppliers; (c) Public accommodation practices to promote and encourage people from communities that have been disproportionately impacted by cannabis prohibition and enforcement to participate in the cannabis industry; (d) Community impact practices and initiatives that positively impact communities disproportionately impacted by cannabis prohibition and enforcement; (e) Anti-discrimination policies that prohibit discrimination in employment and public accommodations in accordance with Chapter 176 of this Code (Human Rights Ordinance); and (f) A summary outlining the licensee's social equity plan that will be published and made publicly available on a licensee website, if available, or another method reasonably calculated to reach clients, patrons, suppliers, and the public, if the licensee does not maintain an online presence.
(3) All licensees shall make good faith effort to meet the objectives of the social equity plan submitted with the application or license renewal. "Good faith effort" means efforts designed to implement the established objectives of the licensee's Social Equity Plan which by their scope, intensity and appropriateness to the objective, can reasonably be expected to fulfill the Plan objective. License renewals shall require reporting on the licensee's good faith efforts under this Section.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.370. License Denial, Suspension, or Revocation.
(1) A license issued under this Chapter may be denied, suspended, revoked, or nonrenewed for any of the following reasons:
(a) The applicant or licensee is ineligible or does not hold the appropriate state operating license under the MMFLA or MRTMA. (b) The applicant or licensee, 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, City Code, or with any applicable state law. (c) A license application contains any misrepresentation or omission of any material fact, or false or misleading information, or the applicant has provided the city with any other false or misleading information related to the establishment. (d) Cannabis is grown, dispensed, possessed, distributed, or sold on the premises in violation of this Chapter or any other applicable state or local law, rule or regulation. (e) The establishment is operated or is operating in violation of the specifications of the license application, license, any conditions of approval by the City or any other applicable state or local law, rule or regulation. Voluntary commitments made pursuant to City Policy are included within the specifications of the license application and the City may deny, suspend, revoke, or non-renew the license based on non- compliance with those commitments. (f) The City, the county, or any other governmental entity with jurisdiction, has closed the establishment temporarily or permanently or has issued any sanction for failure to comply with health and safety provisions of this Chapter or other applicable state or local laws related to public health and safety. (g) The establishment's state operating license has been suspended, revoked, denied, or not renewed. (h) The cannabis establishment has been operated in a manner that adversely affects the public health, safety or welfare. Evidence to support a finding under this Section may include, without limitation, a recurring pattern of conduct that violates City Code directly related to or arising from the operation of the cannabis establishment; a recurring pattern or drug-related criminal conduct within the premises of the cannabis establishment or in the immediate area surrounding the establishment; a recurring pattern of criminal conduct directly related to or arising from the operation of the cannabis establishment; or an ongoing nuisance condition emanating from or caused by the cannabis establishment. Criminal drug-related conduct considered under this Section shall be limited to the violation of a State law, state regulation, or city ordinance.
(2) These grounds for denial, suspension or revocation of a license provided for in this Chapter shall be in addition to other grounds for denial, suspension or revocation of licenses or permits provided for in Chapter 91 and elsewhere in this Code. (3) Prior to suspension, revocation, or nonrenewal of any license issued under this Chapter, the licensee shall be entitled to a hearing as provided in Section 7.16 of Chapter 91 of this Code. (4) An applicant has the right to appeal the denial of a license as provided in Section 7.16 of Chapter 91 of this Code.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.371. Revocation Not Exclusive Penalty or Remedy.
Nothing in this Chapter shall be deemed to prohibit the City from imposing other penalties or seeking other remedies authorized by the Grand Rapids City Code or other ordinance of the City, including filing a public nuisance action or any other legal action in a court of competent jurisdiction.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.372. Fees.
(1) The annual license fee shall be as specified in Chapter 92 of this Code. (2) License fee discounts may be provided in accordance with City Policy.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.373. Renewal of Existing Licenses.
(1) The same procedures that apply to applying for a new license shall apply to the renewal of existing licenses. (2) An application for renewal of an existing license shall be submitted no sooner than sixty (60) days before the existing license expires and no later than thirty-one (31) days before the expiration date. (3) If a license renewal is not submitted by the license expiration date, the license may be renewed within sixty (60) days after its expiration date upon application, payment of applicable fees and penalties, and satisfaction of any renewal requirements if state licensure is still active. (4) Multi-year license renewals may be provided in accordance with City Policy for a duration not to exceed three (3) years.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.374. Issuance of License and Authorization to Operate Under License.
(1) If, after investigation, the City Clerk shall be reasonably satisfied that the applicant has successfully demonstrated compliance with all requirements for issuance of a license, the City Clerk shall issue the applicable Cannabis Related Municipal License or grant renewal of an existing license. (2) A licensee is authorized to operate under a municipal license issued pursuant to this Chapter only after the following additional requirements are met.
(a) The licensee also holds a valid current state operating license for that location and establishment type. A copy of the valid current state operating license shall be provided to the City Clerk. (b) A certificate of occupancy has been issued. (c) The licensee is not operating in violation of any City ordinances or state law. (d) Zoning is deemed appropriate by the City for the location and any and all Special Land Use permits and/or waivers have been approved. (e) Any other license specific requirements as stated herein and in the license application have been met.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.375. Penalty for Violations.
(1) Any person who violates a provision of this Chapter shall be responsible for a municipal civil infraction and shall be subject to such civil infraction fines and costs as provided in Chapter 170, but the fee will not exceed the fee limitation set by the state. (2) Each day of violation shall be a separate violation.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.376. Coordination with State Licensing Authorities.
The City Clerk shall coordinate with the Michigan Marijuana Regulatory Agency (MRA) to provide information that LARA or the MRA deems necessary to carry out licensing under the MMFLA and MRTMA, including but not limited to:
(1) Attestation as to ordinances and zoning regulations adopted by the City relating to cannabis establishments, and amendments thereto. (2) Information regarding a licensee or applicant for a state operating license including:
(a) Information that the board deems necessary to determine whether a state operating license should be issued or renewed; (b) Description of a violation of an ordinance or a zoning regulation committed by the licensee, but only if the violation relates to activities licensed under this Chapter, zoning regulations relating to cannabis establishments, or applicable cannabis laws; (c) Denial, suspension, revocation, or nonrenewal of a cannabis facility license; or (d) Whether there has been a change to an ordinance or zoning regulation relating to cannabis establishments and/or licensing since the state operating license was issued, and a description of the change.
(3) Recommendation to LARA that a state operating license for a cannabis establishment located in Grand Rapids be restricted or not renewed. The Clerk shall provide specific written input and information necessary for LARA to consider the recommendation.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.377. Conflicts with Other Laws or Regulations.
Nothing in this Chapter shall be construed in such a manner as to conflict with the MMFLA, MMMA, MMRTA, or other applicable state cannabis law or rules. If any provision of this Chapter differs from a provision of any other applicable law, ordinance, rule or regulation, both the provision of this Chapter and the differing provision shall apply if possible. If the two (2) provisions are in conflict, then the provision establishing the higher or stricter standard shall apply, consistent with state law.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.378. Severability.
The various parts, sections, and clauses of this Chapter are hereby declared to be severable. If any part, sentence, paragraph, section or clause is adjudged unconstitutional or invalid by a Court of competent jurisdiction, the remainder of the Chapter shall not be affected thereby.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.379. Acceptance of Licensing Applications.
(1) The City Clerk will begin accepting license applications as follows:
(a) On July 20, 2020 for grower, processor, provisioning center, retailer, safety compliance facility, and secure transporter license applications; (b) On October 20, 2020 for microbusiness license applications; (c) The City Commission may provide for an earlier acceptance date by resolution.
(2) Medical Cannabis Facilities not in violation of this Chapter that were previously licensed under MMFLA and granted zoning approval prior to the date that the City begins accepting applications may continue to operate as a Medical Cannabis Facility (only) using their zoning approval as a temporary license until January 20, 2021 provided they submit a complete application by August 20, 2020. Operation of such a facility absent a temporary or regular license to do so once the City begins accepting applications is prohibited. (3) The City shall give priority processing preference to applications in accordance with City Policy. (4) This section may be amended if in the public interest to do so.
(Ord. No. 2020-20, § 1, 7-7-20)
Sec. 7.651. No Immunity or Indemnification from Federal Law.
A registered primary caregiver, in compliance with the General Rules of the Michigan Department of Community Health, the Michigan Medical Marihuana Act, P.A. 2008, Initiated Law, MCL 333.26423(d) and the requirements of this Chapter, shall be allowed as a home occupation. Nothing in this Chapter, or in any companion regulatory provision adopted in any other provision of this Code, is intended to grant, nor shall they be construed as granting, immunity from criminal prosecution for growing, sale, consumption, use, distribution, or possession of marihuana not in strict compliance with that Act and the General Rules. Also, since Federal law is not affected by that Act or the General Rules, nothing in this Chapter, or in any companion regulatory provision adopted in any other provision of this Code, is intended to grant, nor shall they be construed as granting, immunity from criminal prosecution under Federal law. The Michigan Medical Marihuana Act does not protect users, caregivers or the owners of properties on which the medical use of marihuana is occurring from Federal prosecution, or from having their property seized by Federal authorities under the Federal Controlled Substances Act.
(Ord. No. 2010-32, § 1, 6-22-10)
Sec. 9.935. Applicability.
The requirements of this Article apply to a place of business that is licensed by the State of Michigan for tobacco, alcohol (off-premises consumption) and marijuana; provides "bodyworks" personal services; and businesses engaged in retail sales and assembly uses that have hours that extend past midnight. Businesses where repeated zoning, nuisance, building and other public safety issues arise that meet this Chapter's criteria of a chronic nuisance and where the public would benefit from the application of this Chapter for reasons of health, safety and welfare shall also be considered eligible.
(Ord. No. 2019-44, § 1, 8-27-19)
[1]Editor's note(s)—Ord. No. 2020-20, § 1, adopted July 7, 2020, amended chapter 105 in its entirety to read as herein set out. Former chapter 105, §§ 7.361—7.379, pertained to marihuana related municipal licensing, and derived from Ord. No. 2019-66, § 1, 10-8-19; Ord. No. 2020-08, § 1, 3-17-20.