AN ORDINANCE TO AMEND TITLE XI OF THE HAMTRAMCK CITY CODE ADDING CHAPTER 121, MARIJUANA BUSINESSES, PROVIDING FOR THE LICENSING OF MEDICAL MARIJUANA FACILITIES AND ADULT USE MARIJUANA ESTABLISHMENTS, TO THE CODE OF ORDINANCES FOR THE CITY OF HAMTRAMCK, WAYNE COUNTY, MICHIGAN; SETTING FORTH THE APPLICATION REQUIREMENTS FOR THE RECEIPT OF SUCH A LICENSE AND THE CONDITIONS UNDER WHICH SUCH A LICENSE MAY BE GRANTED; PROVIDING FOR AN APPEALS PROCESS TO HAMTRAMCK CITY COUNCIL FOR THE DENIAL OF SUCH A LICENSE BY THE CITY CLERK; AND THE IMPOSING OF A PENALTY FOR OPERATING A MARIJUANA ESTABLISHMENT IN VIOLATION OF THIS OR ANY OTHER APPLICABLE ORDINANCE OF THE HAMTRAMACK CITY CODE.
NOW THEREFORE, THE CITY OF HAMTRAMCK ORDAINS:
CHAPTER 121 shall be added to Title XI of the Code of Ordinances of the City of Hamtramck as follows:
Section 121.100. Purpose
A. It is the intent of this ordinance to authorize the establishment of certain types of marijuana establishments in the City of Hamtramck and provide for the adoption of reasonable restrictions to protect the public health, safety, and general welfare of the community at large; retain the character of neighborhoods; and mitigate potential impacts on surrounding properties and persons. It is also the Intent of this ordinance to help defray administrative and enforcement costs associated with the operation of a marijuana establishment in the City of Hamtramck through imposition of an annual, nonrefundable fee of not more than $5,000.00 on each marijuana establishment licensee, or other such fee as authorized in the Medical Regulation and Taxation of Marijuana Act, MCL 333. 27951 et. Seq.
B. Nothing in this ordinance is intended to grant immunity from criminal or civil prosecution, penalty, or sanction for the cultivation, manufacture, possession, use, sale, or distribution of marijuana, in any form, that is in compliance with the in the Medical Marihuana Facilities Licensing Act, MCL 333.27101 et seq, the Michigan Regulation and Taxation of Marijuana Act, MCL 333.27951 et seq.; the Marihuana Tracking Act, MCL 333.27901 et seq.; and all other applicable rules promulgated by the state of Michigan.
C. As of the effective date of this ordinance, marijuana remains classified as a Schedule 1 controlled substance under the Federal Controlled Substances Act, 21 U.S.C. Sec. 801 et seq., which makes it unlawful to manufacture, distribute, or dispense marijuana, or possess marijuana with intent to manufacture, distribute, or dispense marijuana. Nothing in this ordinance is intended to grant immunity from any criminal prosecution under federal laws.
Section 121.101. Definitions
For the purposes of this ordinance, all of the words, terms and phrases defined by the in the Medical Marihuana Facilities Licensing Act (MMFLA) and the Michigan Regulation and Taxation of Marijuana Act (MRTMA), as amended, are adopted herein by reference, As used in this chapter, they have the same meaning as provided in the MMFLA and the MRTMA. The following words, terms, and phrases when used in this chapter shall have the meaning ascribed to them in this section, except when the context clearly indicates a different meaning:
A. “Cultivate” means to propagate, breed, grow, harvest, dry, cure, or separate parts of the marijuana plant by manual or mechanical means.
B. “Department” means the department of licensing and regulatory affairs.
C. “Marijuana” or “Marihuana” means all parts of the plant of the genus cannabis, growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds or resin, including marijuana concentrate and marijuana-infused products. For the purposes of this act, marijuana does not include:
1. The mature stalks of the plant, fiber produced from the stalls, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks, except the resin extracted from those stalks, fiber, oil, or cake, or any sterilized seed of the plant that is incapable of germination.
2. Industrial hemp; or
3. Any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products.
D. “Marijuana” has the same meaning as “marihuana” under the MMFLA and MRTMA
E. “Marijuana establishment” means a marijuana grower, marijuana safety compliance facility, marijuana processor, marijuana microbusiness, marijuana retailer, marijuana secure transporter, designated consumption center, or any other type of marijuana-related business licensed by the department as defined in the MRTMA, MCL 333. 27951 et seq.
F. “Marijuana facility” means an enterprise at a specific location at which a licensee is licensed to operate under the Medical Marihuana Facilities Licensing Act, MCL 333.27101 et seq., including a marijuana grower, marijuana processor, marijuana provisioning center, marijuana secure transporter, or marijuana safety compliance facility. The term does not include or apply to a “primary caregiver” or “caregiver” as that term is defined in the Michigan Medical Marijuana Act, MCL 333. 26421 et seq.
G. “Marijuana grower” means a person licensed to cultivate marijuana and sell or otherwise transfer marijuana to marijuana establishments.
H. “Marijuana-infused product” means a topical formulation, tincture, beverage, edible substance, or similar product containing marijuana and other ingredients and that is intended for human consumption.
I. “Marijuana microbusiness” means a person licensed to cultivate not more than 150 marijuana plants; process and package marijuana; and sell or otherwise transfer marijuana to individuals who are 21 years of age or older or to a marijuana safety compliance facility, but not to other marijuana establishments.
J. “Marijuana processor” means a person licensed to obtain marijuana from marijuana establishments; process and package marijuana; and sell or otherwise transfer marijuana to marijuana establishments.
K. “Marijuana provisioning center” means a licensee that is commercial entity located in this state that purchases marihuana from a grower or processor and sells, supplies, or provides marijuana to registered qualifying patients, directly or through the patients’ registered primary caregivers. Provisioning center includes any commercial property where marijuana is sold at retail to registered qualifying patients or registered primary caregivers.
L. “Marijuana retailer” means a person licensed to obtain marijuana from marijuana establishments and to sell or otherwise transfer marijuana to marijuana establishments and to individuals who are 21 years of age or older.
M. “Marijuana secure transporter” means a person licensed to obtain marijuana from marijuana establishments in order to transport marijuana to marijuana establishments.
N. “Marijuana safety compliance facility” means a person licensed to test marijuana, including certification for potency and the presence of contaminants.
O. “MMFLA” means the Medical Marihuana Facilities Licensing Act, MCL 333. 2701, et seq.
P. “MRA” means the Michigan Marijuana Regulatory Agency, or other similar agency, established by the department of licensing and regulatory affairs to regulate marijuana business in Michigan.
Q. “MRTMA” means the Michigan Regulation and Taxation of Marihuana Act, Initiated Law 1 of 2018, MCL 333. 27951 et seq.
R. “Process” or “Processing” means to separate or otherwise prepare parts of the marijuana plant and to compound, blend, extract, infuse, or otherwise make or prepare marijuana concentrate or marijuana-infused products.
S. “Rules” means that portion of the Michigan Administrative Code, rules R420.1 through R420.1004, or any other rule or regulation promulgated by the Michigan Marijuana Regulatory Agency.
T. “State license” means a license issued by the department that allows a person to operate a marijuana establishment or marijuana facility.
U. “Marijuana” has the same meaning as “marihuana” under the MMFLA and MRTMA
Section 121.102. Authorization of Facilities and Fee
A. The following types of marijuana businesses or marijuana establishments are authorized to operate in the city of Hamtramck:
1. Marijuana Retailer that are in operation at the time of effective date of this ordinance or who have received a license to operate a marijuana retail establishment from the MRA prior to the effective date of this ordinance.
2. Marijuana provisioning centers located in marijuana retailer in operation at the time this ordinance is adopted, provided the operator holds an equivalent license from the MRA allowing sale of both adult use and medical marijuana in the same establishment.
B. No new marijuana retailers or marijuana provisioning centers will be authorized after the effective date of this ordinance.
C. All other uses authorized under either the MMFLA or MRTMA are prohibited.
Section 121.103. Requirements and Procedure for Issuing License
A. A nonrefundable application fee shall be paid by the applicant for each marijuana establishment or use sought to be licensed under this ordinance, in an annual amount not to exceed the state maximum, as set by resolution of the City of Hamtramck council as part of the annual budget process.
B. No person shall operate a marijuana establishment in City of Hamtramck without a valid marijuana establishment license issued by the City of Hamtramck pursuant to the provisions of this ordinance.
C. Every applicant for a license to operate a marijuana establishment shall fine an application in the City Clerk’s office upon a form provided by the City Clerk, which shall be signed and verified under oath by the applicant, if an individual, or by the authorized agent for any firm, partnership, association, corporation, company or organization and shall set forth and/or provide at a minimum, the following information and documentation:
1. If the applicant is an individual, he/she must provide their: name, address and telephone number;
2. If the applicant is a partnership, or an employee, it must provide: the name of the organization and each partner, residential and business address and telephone number of each partner and business;
3. If the applicant is a corporation, it must provide: the name of the organization, date of organization and certificate of good standing from the state under which the corporation was organized, the names of the principal officers, directors and local representatives of their organization, their residential and business addresses, and telephone numbers;
4. The length of time for which the right to do business as a marijuana establishment is sought;
5. A brief description of the product, products or services involved at the marijuana establishment
6. The name, address and telephone number of the organization’s registered agent or the party that has the full power and authority to accept service of process for and on behalf of applicant in respect to any matters connected with or arising out of the business transacted under said license with full acknowledgment that service on said agent shall be valid when personally served on him/her;
7. The location and mailing address and all telephone numbers where the marijuana establishment will be located;
8. The operator of the marijuana establishment shall be required to submit proof, in a form acceptable to the Clerk, of ownership of the property where the marijuana establishment to be operated. If the location/property/premises of the marijuana establishment to be licensed hereunder is not owned by the operator of the marijuana establishment, the operator shall submit alternate written proof in a form acceptable to the Clerk that the titled owner of the location/property/premises to be licensed has given notarized written consent to the operator to use the premises for the licensed use;
9. Proof that all fees imposed hereunder have been paid in full and that the applicant is not otherwise indebted to the City or in default of any other provision of the Hamtramck City Code;
10. A binding release of liability and agreement to hold harmless the City of Hamtramck from any liability arising out of the operation of the marijuana establishment; and
11. Proof of insurance providing coverage for fire and loss liability and claims arising our of conditions, activities, structures and facilities maintained in relation to the marijuana establishment, in an amount of no less than one million dollars umbrella coverage.
D. Every applicant for a license to operate a marijuana establishment shall submit with the application a photocopy of the applicant’s valid and current license issued by the State of Michigan in accordance with the Michigan Medical Marijuana Facilities Licensing Act, MCL 333.27101, et seq, or the Michigan Regulation and Taxation of Marijuana Act, MCL 333.27951 et seq., if it has been granted.
E. Upon an applicant’s completion of the above-provided form and furnishing of all required information and documentation, the City Clerk shall accept the application and assign it a sequential application number by establishment type based on the date and time of acceptance. The City Clerk shall notify an application not later than thirty (30) days from the date the application was accepted whether the application is complete, or if more information is required.
F. Within ninety (90) days from the applicant submitting a completed application, and payment of the application fee; the City Clerk shall approve or deny the provisional marijuana establishment license. The City Clerk shall issue marijuana establishment licenses in order of the sequential application number previously assigned.
G. A provisional license means only that the applicant has submitted a valid application for a marijuana establishment license, and the applicant shall not locate or operate a marijuana establishment without obtaining all other permits and approvals required by all other applicable ordinances and regulations of the City of Hamtramck. A provisional license will lapse and be void if such permits and approvals required by all other applicable ordinances and regulations of the City of Hamtramck. A provisional license will lapse ad be void if such permits and approvals are not diligently pursued to completion.
H. Maintaining a valid marijuana retailer license or medical marijuana provision center license issued by the state is a condition for the issuance and maintenance of a marijuana establishment license under this ordinance and continued operation of any marijuana establishment. The operator of the marijuana establishment must comply with all rules and regulations promulgated by the MRA.
I. A marijuana establishment license issued under this ordinance is not transferable.
J. The City Clerk shall issue a permit to the applicant unless the Clerk finds reason for denial including that the applicant’s permit has previously been revoked. The permit shall be for no more than one year in term. The standards for denial of the application by the City Clerk are as follows:
1. The application is not completely filled out as required by § 121.103 (C).
2. Verification of any of the information required by § 121.103 (C) shows the information provided by the applicant to be fraudulent, a misrepresentation, or a false statement.
3. Failure to pay the nonrefundable application fee.
4. Notification from the Michigan Marijuana Regulatory Agency that the applicants request for a marijuana establishment license has been denied or revoked by the Agency.
5. No permit shall be issued to any applicant until such applicant shall have obtained the age of 21 years.
6. Any other competent, material and substantial evidence indicating the applicant or any of the applicant’s proposed employees pose an apparent danger to the health, safety and welfare of the people of the city and/or the activity proposed to be permitted constitutes an apparent danger to the health, safety and welfare of the people of the city.
Section 121.104. Other requirements for Marihuana Establishments or Facilities.
A. No Marijuana Establishment shall be located within:
1. One thousand feet, of the following buffered uses: Public parks; a commercial child care organization (non-home occupation) that is required to be licensed or registered with the Michigan Department of Health and Human Services, or its successor agency; a church or other place of worship; or another Marihuana Establishment.
B. Every marijuana establishment or marijuana facility shall comply with the following sections of the Michigan Administrative Code:
1. Rule 420.208 regarding building and fire safety.
2. Rule 420.209 regarding security measures, required security plan and video surveillance system.
Section 121.105. Denial of Permit; Appeal Hearing.
A. The Clerk may refuse to issue a permit for the reasons stated in § 121.103 (J).
B. Any person whose permit application has been denied shall have the right to petition the City Council for an appeal. The City Council shall grant a public hearing on this appeal, and the applicant shall have the right to appear and present evidence on his/her behalf. Following such hearing, the Council shall submit to the applicant a written statement of its findings and determinations. The Council’s determination shall be based upon competent, material and substantial evidence showing failure to comply with the requirements of § 121.103 (J).
Section 121.106. License Renewal.
A. A marijuana establishment license shall be valid for one year from the date of issuance, unless revoked as provided by law.
B. A valid marijuana establishment license may be renewed on an annual basis by submitting a renewal application upon a form provided by the City of Hamtramck and payment of the nonrefundable annual license fee, in the amount as set by Council. Application to renew a marijuana establishment license shall be filed at least thirty (30) days prior to the date of its expiration.
Section 121.107. Applicability
The provisions of this ordinance shall be applicable to all persons and establishment described herein, whether the operations or activities associated with a marijuana establishment were established without authorization before the effective date of this ordinance.
Section 121.108. Penalties and Enforcement.
A. Any person who violates any of the provisions of this Ordinance shall be responsible for a municipal civil infraction and subject to the payment of a civil fine of not more than $500.00, plus costs. Each day a violation of this Ordinance continues to exist constitutes a separate violation. A violator of this Ordinance shall also be subject to such additional sanctions, remedies and judicial orders as are authorized under Michigan law.
B. A violation of this Ordinance is deemed to be a nuisance per se. In addition to any other remedy available at law, the City of Hamtramck may bring action for an injunction or other process against a person to restrain, prevent, or abate any violation of this Ordinance.
C. This Ordinance shall be enforced and administered by the City Clerk, or such other city official as may be designated from time to time by resolution of the council.
Section 121.109. Effect on other ordinances.
Hamtramck city ordinance 2020-04, Prohibition of Marijuana Establishments Ordinance, is hereby repealed and is no longer in effect.
Section 121.110. Severability.
In the event that any one or more sections, provisions, phrases or words of this Ordinance shall be found to be invalid by a court of competent jurisdiction, such holding shall not affect the validity or the enforceability of the remaining sections, provisions, phrases or words of this Ordinance.
Section 121.111. Effective Date
This Ordinance shall take effect upon publication of the ordinance in accordance with law and the city charter.