Three Rivers Cannabis Ordinances

CHAPTER 31 - MARIHUANA ESTABLISHMENTS

31-1 DEFINITIONS.

The following words, terms and phrases in this Chapter shall have the following meanings, except where the context clearly indicates otherwise:

ACT means the Michigan Regulation and Taxation of Marihuana Act, or MRTMA, Initiated Law 1 of 2018. AGENCY or MRA means the Marihuana Regulatory Agency.

APPLICANT means a person who applies for a State license. Applicant includes, with respect to disclosures in an application, for purposes of ineligibility for a license, or for purposes for a transfer of interest, a managerial employee of the applicant, a person holding an indirect ownership interest of 10% or more in the applicant and the following for each type of applicant:

(a) For an individual or sole proprietorship: the proprietor and spouse.

(b) For a partnership and limited liability partnership: all partners and their spouses.

(c) For a partnership and limited liability limited partnership: all general and limited partners, not including a limited partner holding a direct or indirect ownership interest of less than 10% and who does not exercise control over or participate in the management of the partnership, and their spouses.

(d) For a limited liability company: all members and managers, not including a member holding a direct or indirect ownership interest of less than 10% and who does not exercise control over or participate in the management of the partnership, and their spouses.

(e) For a privately held corporation: all corporate officers or persons with equivalent titles and their spouses, all directors and their spouses, and all stockholders, not including those holding a direct or indirect ownership interest of less than 10, and their spouses.

(f) For a publicly held corporation: all corporate officers or persons with equivalent titles and their spouses, all directors and their spouses, and all stockholders, not including those holding a direct or indirect ownership interest of less than 10, and their spouses.

(g) For a multilevel ownership enterprise: any entity or person that receives or has the right to receive 10 or more of the gross or net profit from the enterprise during any full or partial calendar or fiscal year.

(h) For a nonprofit corporation: all individuals and entities with membership or shareholder rights in accordance with the articles of incorporation or the bylaws and their spouses.

CO-LOCATION means the aggregation of multiple types of licenses, additional licenses, or equivalent licenses permitted under the MRTMA and MMFLA and State rules and located on one, or more, lots of record owned by an existing MRTMA and/or MMFLA licensee, approved for operation in the City.

COMMON OWNERSHIP means two or more State licenses or two or more equivalent licenses held by one person.

CULTIVATE or CULTIVATION means to propagate, breed, grow, harvest, dry, cure, or separate parts of the marihuana plant by manual or mechanical means.

DEPARTMENT means the Michigan Department of Licensing and Regulatory Affairs (LARA).

EMPLOYEE means a person performing work or service for compensation. An employee does not mean individuals providing trade services who are not normally engaged in the operation of a marihuana establishment.

EQUIVALENT LICENSES means any of the following held by a single licensee:

(a) A marihuana grower license, of any class, issued under the MRTMA and a grower license, of any class, issued under the MMFLA.

(b) A marihuana processor license issued under the MRTMA and a processor license issued under the MMFLA.

(d) A marihuana secure transporter license issued under the MRTMA and a secure transporter license issued under the MMFLA.

(e) A marihuana safety compliance facility license issued under the MRTMA and a safety license issued under the MMFLA.

GROWER mean a person licensed to cultivate marihuana and sell or otherwise transfer marihuana to marihuana establishments.

INDUSTRIAL HEMP means a plant of the genus cannabis and any part of that plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration that does not exceed 0.3 on a dry-weight basis, or per volume or weight of marihuana-infused product, or the combined percent of delta-9-tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of the plant of the genus cannabis regardless of moisture content.

LICENSEE means a person holding a State operating license.

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 marihuana concentrate and marihuana-infused products. For purposes of this Chapter, marihuana does not include:

(1) the mature stalks of the plant, fiber produced from the stalks, 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 marihuana to prepare topical or oral administrations, food, drink, or other products.

MARIHUANA ACCESSORIES means any equipment, product, material, or combination of equipment, products, or materials, which is specifically designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, containing, ingesting, inhaling, or otherwise introducing marihuana into the human body.

MARIHUANA CONCENTRATE means the resin extracted from any part of the plant of the genus cannabis.

MARIHUANA ESTABLISHMENT means a marihuana grower, marihuana safety compliance facility, marihuana processor, marihuana microbusiness, marihuana retailer, marihuana secure transporter, or any other type of marihuana-related business licensed by LARA.

MARIHUANA-INFUSED PRODUCT means a topical formulation, tincture, beverage, edible substance, or similar product containing marihuana and other ingredients and that is intended for human consumption.

MARIHUANA MICROBUSINESS means a person licensed to cultivate not more than 150 marihuana plants; process and package marihuana; and sell or otherwise transfer marihuana to individuals who are 21 years of age or older or to a marihuana safety compliance facility, but not to other marihuana establishments.

MARIHUANA PROCESSOR means a person licensed to obtain marihuana from marihuana establishments; process and package marihuana; and sell or otherwise transfer marihuana to marihuana establishments.

MARIHUANA REGULATORY AGENCY (MRA) means the Marihuana Licensing Agency created within LARA in order to regulate and administer State licenses.

MARIHUANA RETAILER means a person licensed to obtain marihuana from marihuana establishments and to sell or otherwise transfer marihuana to marihuana establishments and to individuals who are 21 years of age or older.

MARIHUANA TRACKING ACT means Public Act 282 of2016, MCL 333.27901 et seq., as may be amended.

MICHIGAN MARIHUANA FACILITIES LICENSING ACT (MMFLA) means Public Act 281 of 20 16, MCL 333.27101 et seq., as may be amended.

MICHIGAN MEDICAL MARIHUANA ACT (MMMA) means Initiated Law 1 of 2008, MCL 333.26421 et seq., as may be amended.

MUNICIPAL LICENSE means a license issued by a municipality pursuant to Section 6 of the Act that allows a person to operate a marihuana establishment in that municipality.

MUNICIPALITY means the City of Three Rivers, Michigan. PERSON means an individual, corporation, limited liability company, partnership of any type, trust, or other legal entity.

PLANT means that term as defined in Section 102 of the MMFLA, MCL 333.27102.

PROPOSED MARIHUANA ESTABLISHMENT means a location at which an applicant plans to operate a marihuana establishment under the Act and LARA rules if the applicant is issued a State license.

RULES means rules promulgated by LARA in consultation with the MRA to implement the MRTMA.

SECURITY PLAN means a plan for preventing unauthorized access to, or theft and pilferage from, a marihuana establishment, approved for operation in the City. A security plan must be approved by the City Manager in consultation with the Chief of Police. The plan shall be subject to review by the City Commission, but shall include, at a minimum, the following components:

a. Perimeter fence as necessary.

b. An exterior lighting system.

c. A building security system.

d. An on-site security guard program.

e. An off-site official contact list.

f. Established hours of operation.

g. Appropriate signage.

h. A plan for facility inspection by the City’s Police and Fire Departments, which shall include no less than an annual comprehensive fire and security inspection.

i. Such other conditions required by this Chapter, the MRTMA, LARA rules, and as may be deemed appropriate for the particular license or marihuana establishment to be operated by the MRTMA licensee

SAFETY COMPLIANCE ESTABLISHMENT means a person licensed to test marihuana, including certification for potency and the presence of contaminants.

SCHOOL means a public or private licensed pre-school, or a public, private, or charter elementary, middle, junior high, or high school, vocational school, and secondary school.

SECURE TRANSPORTER means a person licensed to obtain marihuana from marihuana establishments in order to transport marihuana to marihuana establishments.

SPECIAL LICENSE means a State license described under Section 8 of the Act and issued pursuant to Section 9 of the Act.

STACKED LICENSE means more than one State license issued to a single licensee to operate as a Class C marihuana grower as specified in each State license at a marihuana establishment.

STATE OPERATING LICENSE means a license issued by LARA that allows a person to operate a marihuana establishment.

UNREASONABLY IMPRACTICABLE means that the measures necessary to comply with the rules or ordinances adopted pursuant to the Act subject licensees to unreasonable risk or require such a high investment of money, time, or any other resource or asset that a reasonably prudent businessperson would not operate the marihuana establishment.

ZONING ORDINANCE means Chapter 30 of the City Code, as amended, commonly known as the Zoning Ordinance.

31-2 FEDERAL AND STATE LAW.

31-2.1

Nothing in this Chapter is intended to grant immunity from any criminal prosecution under Federal law.

31-2.2

Relationship to State Law.

(A) Nothing in this Chapter is intended to grant immunity from criminal or civil prosecution, penalty or sanction for the cultivation, manufacture, possession, use, sale, distribution or transport of marihuana or hemp in any form, that is not in strict compliance with the MRTMA, the MMMA, the MMFLA, the Marihuana Tracking Act, and all applicable rules promulgated by the State of Michigan regarding marihuana. Strict compliance with any applicable State law or regulation and this Chapter shall be a requirement for the issuance or renewal of any license issued under this Chapter. Noncompliance with any applicable State law or regulation or this Chapter shall be grounds for revocation or nonrenewal of any license issued under the terms of this Chapter.

(B) Except as otherwise provided by the MRTMA and this Chapter, a person who owns or leases real property upon which a marihuana establishment is located and who has no knowledge that the licensee is violating or violated the MRTMA or a provision of this Chapter, is not subject to criminal or civil prosecution under the City Code or any applicable City ordinance regulating marihuana.

31-3

CITY LIABILITY AND INDEMNIFICATION.

31-3.1

By accepting a license issued under the MRTMA and the Agency, and pursuant to this Chapter, the licensee waives and releases the City, its officers, elected officials, employees, and agents from any liability for injuries, damages or liabilities of any kind that result from any arrest, prosecution or civil enforcement of marihuana establishment owners, licenses, operators, employees, clients or customers for a violation of this Chapter, State or Federal laws, rules or regulations.

31-3.2

By accepting a license issued under the MRTMA and the Agency, and pursuant to this Chapter, all licensees agree to indemnify, defend and hold harmless the City, its officers, elected officials, employees, agents and insurers, against all liability, claims or demands arising on account of bodily injury, sickness, disease, death, property loss or damage or any other loss of any kind, including but not limited to, any' claim of diminution of property value by a property owner whose property is located in proximity to a licensed operating marihuana establishment, arising out of, claimed to have arisen out of, or in any manner connected with the operation of a marihuana establishment or use of a product cultivated, processed, distributed or sold that is subject to the license, or any claim based on an alleged injury to business or property by reason of a 5 claimed violation of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. §1964(c) or any other alleged violation of law.

31-3.3

By accepting a license issued under the MRTMA and the Agency, and pursuant to this Chapter, a licensee agrees to indemnify, defend and hold harmless the City, its officers, elected officials, employees, agents and insurers, against all liability, claims, penalties, or demands arising on account of any alleged violation of any existing law including the Federal Controlled Substances Act, 21 U.S.C. §801 et seq. or Article 7 of the Michigan Public Health Code, MCL 333.7101 et seq.

31-4

LOCATION AND NUMBER OF PERMITTED ESTABLISHMENTS (FACILITIES).

31-4.1

The location and maximum number of each type of marihuana establishment and commercial entities under the Act permitted in the City is governed by applicable location and zoning regulations or as set forth in the table below.

31-4.2

Establishments and Licenses.

Marihuana establishments and corresponding licenses will by limited as follows; including, but not limited to, by zoning following Section 31-5 of this Chapter and the City's Zoning Ordinance (Ch. 30 of Three Rivers City Code).

Marihuana Establishments in the City of Three Rivers include: Marihuana Retailers, Microbusinesses, Growers (Class A, B & C), Processors, Safety Compliance Facilities and Secure Transporters. Marihuana establishments, including retailers and other facility types, will follow appropriate zoning designations as defined below (and in Ch. 30).

31-4.3

Special Exception Use Permit Required.

Each proposed marihuana establishment shall make an application for a special exception use (SEU) permits following §30-34 and must have an approved SEU Permit for the particular zoning district in which they are applying.

31-4.4

Establishments Types and Applicable Zoning.

Type of Establishment	Permitted Zoning Districts
Marihuana Retailer	B-1, B-2, B-3*
Marihuana Microbusiness	B-2, I-3, I-4
Marihuana Safety Compliance Facility	B-2, B-3*, I-1, I-2, I-3, I-4
Marihuana Secure Transporter	B-2, I-1, I-3, I-4
Marihuana Processor	I-1, I-2, I-3, I-4
Marihuana Grower (Class A)	I-1, I-2, I-3, I-4
Marihuana Grower (Class B and C)	I-2, I-3, I-4

*except for the first block of N. Main St., downtown- potential parking issue [note: SEU provisions already provide a level of review to ensure that the establishment of the special exception use will not impede the normal and orderly development and improvement of the surrounding property for uses permitted in the zoning district; § 30-34 (A)(3).]

31-5

LOCATION AND ELIGIBILITY.

31-5.1

No marihuana establishment shall be eligible to be issued a State or City operating license unless the applicant complies with this Chapter, Zoning Ordinance (Ch. 30), and all other applicable provisions of the City Code.

31-5.2

No marihuana establishment shall be located within 1,000 feet of an existing school, and no marihuana establishment will be located within 500 feet of a church or City park.

31-5.3

A licensee shall not operate a marihuana establishment at any place in the City other than the address provided in the application on file with the City Clerk.

31-5.4

Marihuana establishment licenses permitted under this Chapter are governed by type and location requirements, as follows:

(A) MARIHUANA RETAILER LICENSE:

1. The location at which a retail establishment is a Permitted Use in the following Zoning Districts: B-1, B-2, and B-3 except for the first block of N. Main Street (i.e., all addresses North of Michigan Avenue on N. Main St. up to 99 N. Main St.) so as to not further impede on already-limited temporary parking, as provided by and subject to the requirements of the Zoning Ordinance.

2. All retail establishments must be within an enclosed, secured structure.

3. All retail sales must follow the provisions of the Act and any LARA rules.

4. Retailers which operate within the City shall secure a license from the City.

5. A retailer shall submit to the City and receive an approved security plan in compliance with this Chapter prior to commencement of operations.

(B) MARIHUANA MICROBUSINESS LICENSE:

1. The location at which a microbusiness grows, processes, packages and sells marijuana in a limited capacity (as regulated by state laws and local zoning regulations) is a Permitted Use in the following Zoning Districts: B-2, I-3, and I-4, as provided by and subject to the requirements of the Zoning Ordinance.

2. Microbusinesses must meet the following requirements:

(a) limited to growing no more than 150 marihuana plants,

(b) shall only process marihuana into concentrates, edibles, or other infused products,

(d) sell to adults only who are over the age of 21.

3. All microbusinesses must be within an enclosed, secured structure.

4. All microbusinesses must follow the provisions of the Act and any LARA rules.

5. Microbusinesses which operate within the City shall secure a license from the City.

6. A microbusiness shall submit to the City and receive an approved security plan in compliance with this Chapter prior to commencement of operations.

1. The location at which a safety compliance facility tests marihuana and marihuana -infused products is a Permitted Use in the following Zoning Districts: B-2, B-3, I-1, I-2, I-3 and I-4 except for the first block of N. Main Street (i.e., all addresses North of Michigan Avenue on N. Main Street up to 99 N. Main St.) so as to not further impede on already-limited temporary parking, as provided by and subject to the requirements of the Zoning Ordinance.

2. Safety compliance facility must meet the following requirements:

(a) An approved security plan; and

(b) Location of this license shall be permitted up to, but not beyond, any applicable lot coverage limitations set forth in the Zoning Ordinance.

3. All testing must be conducted within an enclosed, secured structure and consistent with the provisions of the Act and any LARA rules.

4. A licensed safety compliance establishment is authorized to:

(a) Take marihuana from, test marihuana for, and return marihuana to only a licensed marihuana grower, marihuana processor, marihuana retailer or microbusiness.

(b) Collect a random sample of marihuana at the marihuana establishment of a marihuana grower, marihuana processor, marihuana retailer, or marihuana microbusiness for testing.

5. A safety compliance establishment must be accredited by an entity approved by the Agency by one (1) year after the date the license is issued or have previously provided drug testing services to this state or Michigan’s court system and be a vendor in good standing in regard to those services. The Agency may grant a variance from this requirement upon a finding that the variance is necessary to protect and preserve the public health, safety, or welfare.

6. An applicant and each investor with any interest in a safety compliance establishment cannot have an interest in a grower, secure transporter, processor, marihuana retailer or marihuana microbusiness.

7. A safety compliance establishment shall comply with all of the following:

(a) Perform safety tests to certify that marihuana is reasonably free of known contaminants in compliance with the standards established by the Agency.

(b) Use validated test methods to perform all safety tests and to determine tetrahydrocannabinol (THC), tetrahydrocannabinol acid (THC-A), cannabidiol (CBD), and cannabidiol acid (CBD-A) concentrations.

(c) Perform other tests necessary to determine compliance with any other good manufacturing practices as prescribed in LARA rules.

(d) Enter all transactions, current inventory, and other information into the statewide monitoring system as required by the Act, LARA rules, or Marihuana Tracking Act.

(e) Have a secured laboratory space that cannot be accessed by the general public.

(f) Retain and employ at least one (1) laboratory manager with a relevant advanced degree in a medical or laboratory science, to include, but not limited to ensure compliance with the Act and LARA rules.

(D) MARIHUANA SECURE TRANSPORTER LICENSE:

1. The location at which a secure transporter stores marihuana and transports marihuana from is a Permitted Use in the following Zoning Districts: B-2, I-1, I-3 and I-4, as provided by and subject to the requirements of the Zoning Ordinance.

2. Secure transporter must meet the following requirements:

(a) An approved security plan; and

(b) Location of a transporter’s license shall be permitted up to, but not beyond, any applicable lot coverage limitations set forth in the Zoning Ordinance.

3. Secure transporter license is limited to the storage and transport of marihuana, marihuana-infused products and money associated with the purchase or sale of marihuana and marihuana-infused products between marihuana establishments at the request of a person with legal custody of the marihuana, marihuana-infused products, or money.

4. An applicant and each investor with an interest in a secure transporter license cannot have an interest in a grower, processor, marihuana retailer, marihuana microbusiness or safety compliance facility.

5. Secure transporter which operates from a marihuana establishment located within the City shall secure a license from the City.

6. Secure transporter shall comply with all of the following:

(a) Each driver operating pursuant to this Section shall have a valid chauffeur's license issued by the State of Michigan.

(b) Each vehicle must be operated with a two (2) person crew with at least one (1) individual remaining with the vehicle at all times during the transportation of marihuana or marihuana-infused product.

(c) A route plan and manifest shall be entered into the statewide monitoring system, and a copy shall be carried in the transporting vehicle and presented to a law enforcement officer upon request.

(d) The marihuana and marihuana-infused products shall be transported in one or more sealed containers and shall not be accessible while in transit.

(e) A secure transporter is subject to administrative inspection by a law enforcement officer at any point during the transportation of marihuana or marihuana-infused products to determine compliance with this Chapter and the Act.

(f) A secure transporter shall enter all transactions, current inventory, and other information into the statewide monitoring system if such is required by the Act, LARA rules, or the Marihuana Tracking Act.

(g) A secure transporting vehicle shall not bear markings or other indication that it is carrying marihuana or a marihuana-infused product.

(h) When determining and reporting the route to take, a secure transporter shall select the most direct route that provides efficiency and safety.

(E) MARIHUANA PROCESSOR LICENSE:

1. The location at which a processor establishment extracts resin from the marihuana or creates a marihuana-infused product is a Permitted Use in the following Zoning Districts: I-1, I-2, I-3 and I-4, as provided by and subject to the requirements of the Zoning Ordinance; Chapter 30 of the City Code. The City will restrict locations and only one marihuana processor establishment license shall be permitted per parcel or lot. As measured from the property lot line, processor facilities shall not be within 500 feet of another processing facility or grower facility licensed under the MRTMA, or processing or grower facility licensed under the MMFLA.

2. All processor establishments and operations must be within an enclosed, secured structure.

3. A licensee may occupy the same premises if holding a grower and processor license for the premises, and otherwise consistent with the Act, and any LARA rules.

4. A processor license authorizes the purchase of marihuana only from a grower and sale of marihuana-infused products or marihuana only to a marihuana retailer, unless otherwise provided for under LARA rules.

5. An applicant and each investor in a processor license shall not have an interest in a secure transporter, safety compliance establishment or microbusiness.

6. A processor shall comply with all of the following:

(a) Location of processor establishment shall be permitted up to, but not beyond, any applicable lot coverage limitations set forth in the Zoning Ordinance.

(b) Have and maintain an approved security plan.

(c) Enter all transactions, current inventory, and other information as required by the MRTMA, LARA rules, the Marihuana Tracking Act, and all other applicable laws and regulations.

(d) Transfer marihuana and marihuana-infused products only by means of a secure transporter, or in compliance with LARA rules.

(e) Processor shall not produce any products other than useable marihuana products intended for human consumption.

(F) MARIHUANA GROWER LICENSE:

1. The location at which a grower establishment cultivates marihuana is a Permitted Use in the following Zoning Districts: I-1, I-2, I-3 and I-4 for Class A Growers, and I-2, I-3 and I-4 for Class B and Class C Growers, as provided by and subject to the requirements of this Chapter and the Zoning Ordinance (Ch. 30) of the City Code. The City will restrict locations and applicants but shall not restrict number of licenses managed by licensees. As measured from the property lot line, grower facilities shall not be within 500 feet of another grower or processor facility licensed under the MRTMA, or grower or processor facility licensed under the MMFLA. Subject to the provisions of the MRTMA, more than one grower establishment license may be permitted per parcel or lot.

2. All grower establishments and operations must be within an enclosed, secured structure.

3. A licensee may occupy the same premises if holding a grower and processor license for the premises, and otherwise consistent with the Act and any rules promulgated by LARA.

4. A grower may hold more than one class of grower license.

5. Consistent with the provisions of the Act, an applicant and each investor in a Grower license cannot have an interest in a secure transporter, safety compliance establishment, or microbusiness.

6. A Grower shall comply with all of the provisions of the MRTMA and shall:

(a) Have and maintain an approved security plan.

(b) Locations of main and accessory buildings for Growers may be established up to, but not beyond, any and all applicable lot coverage limitations set forth in this Chapter and the Zoning Ordinance (Ch. 30).

(c) Enter all transactions, current inventory, and other information as required by the MRTMA, LARA rules, the Marihuana Tracking Act, and all other applicable laws and regulations.

(d) Sell or transfer marihuana seeds or marihuana plants only to another grower by means of a secure transporter, consistent with LARA rules.

(e) Sell or transfer marihuana, other than seeds, only to a processor or marihuana retailer by means of a secure transporter, consistent with LARA rules.

(f) Use no pesticides or insecticides which are prohibited by applicable law for fertilization or production of edible produce shall be used on any marihuana cultivated, produced, or distributed by a marihuana business.

(f) Ventilate the marihuana establishment so that the odor of marihuana cannot be detected by a person with a normal sense of smell at the exterior of the marihuana establishment property line or at any adjoining use or property. Odor must be managed at the establishment site and by the installation of an operable filtration to ventilation and exhaust equipment and odors must otherwise be effectively confined to the interior of the building or dwelling from which the odor is generated.

7. A grower shall submit to the City and receive an approved security plan in compliance with this Chapter prior to commencement of operations.

8. Co-location and stacking of grower licenses shall be permitted up to, but not beyond, any applicable lot coverage limitations set forth in this Chapter and the Zoning Ordinance. 9. All buildings and structures shall be subject to inspection at any time by the City’s Fire Department to ensure compliance with all applicable statutes, codes and ordinances.

31-6

LICENSE REQUIRED.

31-6.1

No person shall establish or operate a marihuana establishment or marihuana commercial entity in the City without a valid municipal license issued by the City and a State license for each such establishment to be operated. License certificates shall be kept current and publicly displayed within the establishment.

(A) City licenses are required as follows:

1. A nonrefundable application fee per license in the amount as permitted by the Act and its regulations, as established by City Resolution, must be paid to defray administrative and review costs associated with processing an application for a marihuana establishment. If more than one type of marihuana license is to be located at a specified location, each proposed establishment shall require a separate license application and fee.

2. The nonrefundable application fee required under this Section shall be due and payable upon submission of the application.

3. The application fee requirement set forth in this Section shall be in addition to, and not in lieu of, any other licensing and permitting requirements imposed by any other Federal, State, or City law or ordinance, including, by way of example, any applicable zoning or building permits.

4. The issuance of any license pursuant to this Section does not create an exception, defense, or immunity to any person in regard to any potential criminal liability the person may have for the production, distribution, or possession of marihuana under Federal law.

5. Licenses may be allowed to be stacked for multiple uses per premise, subject to the City's determination that such uses are compatible together at that location, are consistent on a shared basis with all the provisions of the MRTMA and applicable rules, and each use is consistent with zoning and other provisions of the City Code, including but not limited to this Chapter and the Zoning Ordinance. If those conditions are met, more than one different marihuana establishment licensee may be located on one parcel, as permitted under this Chapter.

31-7 GENERAL LICENSE APPLICATION REQUIREMENTS.

31-7.1

A person seeking a license pursuant to the MRTMA and the provisions of this Chapter shall submit an application to the City on City-issued forms. At the time of application, each applicant shall pay a nonrefundable license application fee as provided in this Chapter to defray the costs incurred by the City for background investigations and inspection of the proposed premises, as well as any other costs associated with the processing of the application. In addition, the applicant shall present a suitable form of government- issued identification.

31-7.2

The application shall also provide the following information in this Subsection, under the penalty of perjury, on the City-issued forms. Such information is required for the applicant, the proposed manager of the marihuana establishment and commercial entity, and all persons who are in the marihuana commercial entity that is the subject of the application:

(A) If the applicant is an individual, the applicant's name, date of birth, social security number, physical address, including residential and any business address; copy of government-issued photo identification, email address, one or more phone numbers, including emergency contact information; and, if applicable, federal tax identification number of the applicant.

(B) If the applicant is a business entity, information regarding the entity, including, without limitation, the name and address of the entity, its legal status, and proof of registration with, or a certificate of good standing from the State of Michigan, as applicable.

(C) The identity of every applicant and person having any ownership interest in the establishment with respect to which the license is sought.

(D) If the applicant is not the owner of the proposed licensed premises, a notarized statement from the owner of such property authorizing the use of the property for a marihuana establishment.

(E) A copy of any deed reflecting the applicant's ownership of, or lease reflecting the right of the applicant to possess, or an option reflecting the applicant's right to purchase or lease, the proposed licensed premises.

(F) Three (3) stamped and sealed twenty-four by thirty-six inch (24x36") drawings of the proposed licensed premises showing, without limitation, building layout, all entryways and exits, ingress and egress to the proposed licensed premises, loading zones and all areas in which marihuana will be grown, manufactured, processed, stored, or dispensed.

(G) A location area map of the marihuana establishment and surrounding area that identifies the relative locations and the distances (closest property line to the subject marihuana establishment's building/structure) to the closest real property comprising a school or City park.

(H) A comprehensive operation plan for the marihuana establishment which shall contain, at a minimum, the following:

1. A security plan, consistent with the definition of Security Plan within, and general requirements of this Chapter including, but not limited to, provisions listed in 31-17.3. The security plan shall indicate how the applicant will comply with the requirements of this Chapter and any other applicable law, rule, or regulation.

2. For grower and processing establishments, a plan that specifies the methods to be used to prevent the growth of harmful mold and compliance with limitations on discharge into the wastewater system of the City.

3. A lighting plan showing the lighting outside of the marihuana establishment for security purposes and compliance with applicable City requirements.

4. A plan for disposal of any marihuana or marihuana-infused product that is not sold to a customer, in a manner that protects any portion thereof from being possessed or ingested by any person or animal.

5. A plan for ventilation of the marihuana establishment that describes the ventilation systems that will be used to prevent any odor of marihuana off the premises of the business. For marihuana establishments that grow marihuana plants, such plan shall also include all ventilation systems used to control the environment for the plants and describe how such systems operate with the systems preventing any odor leaving the premises. For marihuana businesses that produce marihuana-infused products, such plan shall also include all ventilation systems used to mitigate noxious gases or other fumes used or created as part of the production process.

6. A description of all toxic, flammable, or other materials regulated by a Federal, state, or local authority that will be used or kept at the marihuana business, the location of such materials, and how such materials will be stored.

7. For grower and processing establishments, an applicant must submit water main plans including projected peak daily and seasonal 24-hour water usage requirements to the City’s Department of Public Services for review. The applicant may be required to construct the needed water system to City standards at their cost. Should a new water main be required to become part of the City's water system all required permits shall be submitted with the required plans and profiles to City staff for submittal to the State of Michigan. No installation of water mains shall be completed prior to receipt of the proper permits from the State.

8. The associated costs may include but are not limited to:

(a) Connection Fees

(b) Costs for analysis and review

(d) The City reserves the right to deny or curtail water service to any applicant based on the applicant's failure to meet the requirements of the City’s water system or any other use that causes a negative impact to the water system.

(I) Prior to making a modification to a structure that would require a building permit or which would alter or change items required by this Subsection, the licensee shall submit to the City detailed construction drawings showing at minimum, a full site plan, interior and exterior lighting requirements, the full mechanical heating and ventilation plan, a detailed security plan, before and after floor plans and specifications, non-rated and rated separation details and locations, accessible route from the public way to the accessible entrance, accessible route to the primary function and within the facility and accessible bathrooms. The licensee shall make application for a plan review and a building permit for the modifications to the premises, on forms provided by the City. Additional specifications may be required. A building or structure constructed or renovated for use as a marihuana establishment shall not be used or occupied in whole or in part until a certificate of use and occupancy has been issued by the City.

(J) Proof of Insurance. A licensee shall at all times maintain in force and effect for duration of the license, worker's compensation insurance as required by State law, and general liability insurance with minimum limits of $1,000,000 per occurrence and a $2,000,000 aggregate limit issued from a company licensed to do business in Michigan. A licensee shall provide evidence to the City Clerk of the ability to obtain a certificate of insurance for a valid and effective policy which discloses the limits of each policy, the name of the proposed insurer, the effective date and expiration date of each policy, the policy number, and the names of the additional insureds. When issued, the policy shall name the City and its officials and employees as additional insureds to the limits required by this Section. A licensee or its insurance broker shall notify the City of any cancellation or reduction in coverage within seven days of receipt of insurer's notification to that effect. The licensee, permittee, or lessee shall forthwith obtain and submit proof of substitute insurance to the City Clerk within five (5) business days in the event of expiration or cancellation of coverage.

(K) Whether an applicant has been indicted for, charged with, arrested for, or convicted of, pled guilty or nolo contendere to, forfeited bail concerning any criminal offense under the laws of any jurisdiction, either felony or controlled-substance-related misdemeanor, not including traffic violations, regardless of whether the offense has been reversed on appeal or otherwise, including the date, the name and location of the court, arresting agency, and prosecuting agency, the case caption, the docket number, the offense, the disposition, and the location and length of incarceration. Prior criminal history will be addressed/considered consistent with the provisions of the MRTMA, including but not limited to MCL 333.27958(l)(c).

(L) Whether an applicant has ever applied for or has been granted any commercial license or certificate issued by a licensing authority in Michigan or any other jurisdiction that has been denied, restricted, suspended, revoked, or not renewed and a statement describing the facts and circumstances concerning the application, denial, restriction, suspension, revocation, or nonrenewal, including the licensing authority, the date each action was taken, and the reason for each action.

(M) Whether an applicant has filed, or been served with, a complaint or other notice filed with any public body, regarding the delinquency in the payment of, or a dispute over the filings concerning the payment of, any tax required under Federal, state, or local law, including the amount, type of tax, taxing agency, and time periods involved. (N) A description of the type of marihuana establishment; and the anticipated or actual number of employees.

(O) An acknowledgment and consent that the City may conduct a background investigation, including a criminal history check, and that the City will be entitled to full and complete disclosure of all financial records of the marihuana commercial entity, including records of deposit, withdrawals, balances and loans; and

(P) Any additional information that the City Manager or Police Department reasonably determines to be necessary in connection with the investigation and review of the application.

31-7.3

Consistent with the MRTMA, including but not limited to MCL 333.27959(7), and the Freedom of Information Act, MCL 15.231 et seq., the information provided to the City Clerk pursuant to this Section relative to licensure is exempt from disclosure.

31-7.4

All marihuana establishment and marihuana commercial entities shall obtain all other required permits or licenses related to the operation of the marihuana commercial entity, including, without limitation, any development approvals or building permits required by City Code.

31-7.5

If a deficiency is identified in an application, the applicant shall have ten (10) business days to correct the deficiency after notification.

31-7.6

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 an application number by establishment type.

31-7.7

Upon receipt of a completed application, the City Clerk shall circulate the application to the City Manager, Police and Fire Departments, City Attorney, Assessor, Department of Public Services and Planning Commission (as well as any other City Department that the City Manager may determine is pertinent to review of such applications) to determine whether the application is in full compliance with all applicable laws, rules and regulations.

31-7.8

License Evaluation Criteria.

Section 9 of the Act requires that the City establish a competitive process to select applicants who are best suited to operate in compliance with the Act and this Chapter when a municipality limits the number of marihuana establishments that may be licensed in the municipality. In the event that the City receives more applications for a marihuana establishment than available and permitted by this Chapter, the City requires that applicants submit a business plan including:

(A) The applicant's experience in operating other licensed marihuana businesses in Michigan.

(B) The applicant's general business management experience.

(C) An estimate of the number and type of jobs that the marihuana establishment is expected to create and the amount and type of compensation expected to be paid for such jobs.

(D) A current organizational chart that includes position descriptions.

(E) Planned tangible capital investment in the City, including if multiple licenses are proposed, an explanation of the economic benefits to the City with supporting factual data.

(F) If a marihuana grower establishment is proposed, the number of plants anticipated. (G) Financial structure and financing of the proposed marihuana establishment(s).

31-8 DENIAL OF APPLICATION.

31-8.1

AMERICA'S 1st CANNABIS LAW FIRM.

Since 1999

Three Rivers Cannabis Ordinances