The purpose of this article is to establish standards and procedures for the issuance, renewal, suspension, and revocation of business licenses for medical marijuana facilities and adult-use marijuana establishments consistent with the Michigan Medical Marihuana Facilities Licensing Act, being MCL 333.27101, et seq., and the Michigan Regulation and Taxation of Marihuana Act, being MCL 333.27951, et seq., respectively, to:
(1) Serve and protect the health, safety, and welfare of the general public through reasonable regulation of marijuana business operations including noise, odor, air and water quality, food safety and public safety;
(2) Establish an application fee and a licensing fee for medical marijuana facilities and adult-use marijuana establishments to cover the City’s costs in administering this ordinance;
(3) Establish procedures for application, renewal, suspension, and revocation of a business license for medical marijuana facilities, and for adult-use marijuana establishments;
(4) Minimize adverse effects, if any, from the cultivation, processing, dispensing and storage of marijuana;
(5) Adopt reasonable regulations as needed pursuant to the city’s general police power granted to cities by the Michigan Constitution of 1963 and the Home Rule City Act, being MCL 117.1 et seq.;
(6) Recognize that social equity in the marijuana industry is required to address the historical disproportionate impact of marijuana prohibition and enforcement on Detroiters, and that the City of Detroit has been expressly named by the State of Michigan’s Social Equity Program as a community that has been disproportionately impacted by marijuana prohibition and enforcement;
(7) Recognize that long term residents of the City of Detroit have historically been excluded from ownership opportunities in the legal marijuana industry due to the disproportionate impact of marijuana prohibition, enforcement, and the lack of access to capital, land, and resources; that more than 30% of Detroiters live below the federal poverty level; that Detroit has a marijuana-related criminal conviction rate that exceeds the average marijuana-related criminal conviction rate in the State of Michigan; and that long term Detroit residents have substantially contributed to the economy in the form of taxes and fees to the extent that a reduction in fees, and reservation of adult-use retailer, adult-use grower, adult-use processor, designated consumption, marijuana event organizer, and microbusiness licenses for long term Detroit residents under this article is appropriate as a form of social equity;
(8) Recognize that long term residents of the City of Detroit are uniquely invested, personally and financially, in the success of the City’s marijuana programs and that long term residence is a key predictor of the likelihood that an applicant will operate in compliance with the MRTMA, as applicable.
(9) Recognize that employment opportunities in the legal marijuana industry are essential for Detroiters, and to strongly encourage and incentivize licensees under this article to ensure that at least 50% of its employees are Detroit residents, specifically those Detroit residents who are veterans, low income, or have a prior controlled substance record, as such terms are defined in Section 20-6-2, and that the jobs provided pay at least $15 an hour;
(10) Facilitate real property ownership opportunities for Detroit residents, for the purpose of operating adult-use marijuana establishments licensed under this article and MRTMA; the City of Detroit shall use good faith efforts to transfer eligible City owned real property to one of the City’s economic development agencies or authorities, for the specific purpose of transferring the property to Detroit legacy applicants or licensees, as defined in Section 20-6-2, at 25% of the property’s fair market value. Such a transfer would be subject to applicable approvals by the City of Detroit and the economic development agency or authority board, as well as certain program rules that may be developed. The development and use of the transferred property would be subject to all requirements of this Code and MRTMA;
(11) Recommend that, subject to appropriation, amounts equal to $500,000 of the fees generated from the licenses issued pursuant to this article, and $500,000 from an allocation to the City of Detroit pursuant to M.C.L. 333.27964 be used annually to further social equity goals, including, but not limited to, addressing the challenges set forth in Subsections (6), (7), (8), and (9) of this section; and to
(12) Clarify that licensure of either a medical marijuana facility or an adult-use marijuana establishment is a revocable privilege and not a right in the City. There is no property right for an individual or business to have a medical marijuana facility business license or an adult-use marijuana establishment business license in the City of Detroit.
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2020-44 (JCC. 11/17/20, Pass. 11/24/20, App. 11/30/20, Pub. 12/18/20, Eff. 1/11/21); Amended by Ord. No. 2021-13 (JCC. 3/16/21, Pass. 3/30/21, App. 3/31/21, Pub. 4/6/21, Eff. 3/31/21).
The following words, terms and phrases, when used in this article, shall have the meanings provided in this section:
Adult-use marijuana establishment means a business licensed under the MRTMA and this article operate as a grower, processor, retailer, secure transporter, safety compliance facility, microbusiness, excess marijuana grower, marijuana event organizer, temporary marijuana event, or designated consumption establishment, or any other type of marijuana-related business licensed to operate in accordance with the MRTMA.
Applicant means the entity or individual making application for a license under this article, and includes all members, partners, directors, shareholders, officers, and owners of the entity applying for licensure.
Authorized local official means a Detroit police officer, or other City of Detroit employee or agent designated by the director of the Department, who is authorized to issue violations and perform inspections in accordance with this Code.
Cap, or numerical cap, means a limit on the number, within a category of license type, of adult-use marijuana establishments and medical marijuana facilities.
Co-location means a property that has been zoned to allow more than one type of medical marijuana facility or adult-use marijuana establishment to operate on the same premises, subject to the applicable rules promulgated in accordance with the MMFLA, the MRTMA, and this Code.
Co-location license means a license required under this Article when a property has been zoned to allow more than one medical marijuana facility or adult-use marijuana establishment to operate on the same premises, and the property owner is not the licensee of all the businesses operating on the premises.
Common ownership means two or more state operating licenses or two or more equivalent licenses held by one individual or one entity.
Community outreach means any outreach meeting, technology aided outreach, or outreach alert intended to ensure community awareness of licensing activities under this article.
Community outreach plan means a plan for ongoing efforts by a licensee under this article to continually engage and inform the community that surrounds the licensee’s business location of employment and social equity opportunities at the licensee’s place of business.
Community outreach report means a report of the efforts taken by a license applicant to inform and engage the community that surrounds the applicant’s proposed business location of the applicant’s proposed business operation, and any employment or social equity opportunities that the applicant intends to offer.
Cultivation or cultivate means:
(1) all phases of growth of marijuana from seed to harvest; or
(2) preparing, packaging or repackaging, labeling, or relabeling of any form of marijuana.
Department means the City of Detroit Buildings, Safety Engineering, and Environmental Department
Designated consumption establishment means a business that is licensed under the MRTMA and this Article to permit adults 21 years of age and older to consume marijuana products at a commercial location designated by the state operating license.
Detroit legacy applicant or licensee means an individual who has, or an entity that is at least 51% owned and controlled by one or more individuals who have, as certified by the Civil Rights, Inclusion, and Opportunity Department, been a City of Detroit resident at the time of application for at least one year, and upon renewal, and additionally has been:
(1) a City of Detroit resident for 15 of the past 30 years preceding the date of application, and continues to so reside throughout the period of licensure; or
(2) a City of Detroit resident for 13 of the past 30 years preceding the date of application, and continues to so reside throughout the period of licensure, and is a low income applicant at the time of application, as defined in this Section; or
(3) a City of Detroit resident for the 10 of the past 30 years preceding the date of application, and continues to so reside throughout the period of licensure, and has a prior controlled substance record, as defined in this section, or a parent with a prior controlled substance record as defined in this section under the following circumstances:
a. the parent is named on the applicant’s birth certificate, and the parent’s conviction took place before the applicant’s 18th birthday; or
b. the parent has claimed the applicant as a dependent regularly on federal income tax filings, and the parent’s conviction took place before the applicant’s 18th birthday.
Digital notification means any form of electronic communication.
Equivalent licenses means any of the following held by a single licensee:
(1) A marijuana grower license, of any class, issued under MRTMA and a grower license, of any class, issued under the MMFLA;
(2) A marijuana processor license issued under the MRTMA and a processor license under the MMFLA;
(3) A marijuana retailer license issued under the MRTMA and a provisioning center license issued under the MMFLA;
(4) A secure transporter license issued under the MRTMA and a secure transporter license issued under the MMFLA; or
(5) A safety compliance facility license issued under the MRTMA and a safety compliance facility license issued under the MMFLA.
Excess marijuana grower means a state operating license holder holding five class C marijuana grower licenses under the MRTMA.
Grower means a business licensed under the MMFLA or MRTMA and this article, located in this slate, which cultivates, dries, trims, or cures and packages marijuana for sale or transfer to a medical marijuana facility or an adult-use marijuana establishment, and is licensed as follows:
(1) class A adult-use marijuana grower means a state operating license holder who is authorized to grow 100 marijuana plants;
(2) class B adult-use marijuana grower means a state operating license holder who is authorized to grow 500 marijuana plants;
(3) class C adult-use marijuana grower means a state operating license holder who is authorized to grow 2000 marijuana plants;
(4) class A medical marijuana grower means a state operating license holder who is licensed to grow 500 medical marijuana plants;
(5) class B medical marijuana grower means a state operating license holder who is licensed to grow 1000 medical marijuana plants; or
(6) class C medical marijuana grower means a state operating license holder who is licensed to grow 1500 medical marijuana plants.
License competition means a competitive process to select licenses that are best suited to operate in compliance with the MRTMA.
Licensee means an individual or entity that holds a state operating license and a business license under this article.
Low income applicant means an individual who, at the time of licensing, lives in a household with household income that is less than 80% of the existing Detroit median household income.
Marijuana event organizer means a state license holder authorized to apply for a temporary marijuana event license in accordance with the MRTMA.
Medical marijuana facility means any facility, entity, establishment, or center that is required to be licensed under the MMFLA, and this article, including a grower, processor, provisioning center, safety compliance facility, or a secure transporter.
Marijuana-infused product means a topical formulation, tincture, beverage, edible substance, or similar product containing any usable marijuana that is intended for human consumption in a manner other than smoke inhalation.
Microbusiness means a business licensed under MRTMA and this article that cultivates up to 150 marijuana plants or more as allowed by the State of Michigan, processes, and packages marijuana, and sells or otherwise transfers marijuana to individuals who are 21 years of age or older or to a safety compliance facility, but not to other adult-use marijuana establishments or medical marijuana facilities.
MMFLA means the Michigan Medical Marihuana Facilities Licensing Act, Public Act 281 of 2016, being MCL 333.27101, et seq.
MMMA means the Michigan Medical Marihuana Act, means Initiated Law 1 of 2008, being MCL 333.26421, et seq.
MRTMA means the Michigan Regulation and Taxation of Marihuana Act, Initiated Law 1 of 2018, being MCL 333.27951 et seq.
Outreach alert means any form of one way communication that informs a community or neighborhood of an issue, problem, opportunity or decision.
Outreach meeting means any in person or virtual meeting that provides for public discussion of a topic.
Person means an individual, partnership, firm, company, corporation, association, sole proprietorship, limited liability company, joint venture, estate, trust, or any other legal entity.
Primary caregiver means the term as defined by the MMMA.
Prior controlled substance record means to have been convicted, or adjudged to be a ward of the juvenile court, for any crime relating to the sale, possession, use, cultivation, processing, or transport of marijuana prior to November 7, 2018.
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.
Processor means a business licensed under the MRTMA or the MMFLA and this article, located in this state, that obtains marijuana from a medical marijuana facility or an adult-use marijuana establishment and that processes marijuana for sale and transfer in packaged form to a medical marijuana facility or an adult-use marijuana establishment.
Provisional certificate means a placeholder pre-licensure document granted under this article to a Detroit legacy applicant who does not yet have an approved location to operate the business for which the applicant seeks a license, which will be converted to a full license if the applicant secures an approved location and meets all the requirements of this article within twelve months of being granted the provisional certificate. A provisional certificate will not be counted as a full license for purposes of the numerical caps established under Section 20-6-34 of this Code, nor in determining whether the requirements of Section 20-6-31(d) and (e) are met, until it has been converted to a full license.
Provisioning center means a business licensed under the MMFLA that is a commercial entity located in this state that purchases marijuana from a grower or processor and sells, supplies, or provides marijuana to qualifying patients, directly or through the registered primary caregivers of patients. Provisioning center includes any commercial property where marijuana is sold at retail to qualifying patients or primary caregivers. A noncommercial location used by a primary caregiver to assist a qualifying patient connected to the caregiver through the state’s marijuana registration process in accordance with the MMMA, is not a provisioning center for purposes of this article.
Qualifying patient means the term as defined by the MMMA. Registered user means any person or entity that has submitted their email address of telephone number of the purpose of receiving digital notifications.
Retailer means a business licensed under the MRTMA and this article that may obtain marijuana from adult-use marijuana establishments and sell or transfer marijuana to individuals who are 21 years of age or older and to other adult-use marijuana establishments.
Safety compliance facility means a business licensed under the MRTMA or the MMFLA and this article that tests marijuana for contaminants and potency or as required by the MRTMA or the MMFLA for a primary caregiver, medical marijuana facility, or adult-use marijuana establishment.
Secure transporter means a business licensed under the MRTMA or the MMFLA and this article, that stores marijuana and transports marijuana between medical marijuana facilities or adult-use marijuana establishments for a fee.
Social equity program or SEP means a program authorized by the MRTMA, which is designed to encourage participation in the marijuana industry by people who live in certain Michigan communities designated by the State of Michigan, who have been disproportionately impacted by marijuana prohibition and enforcement.
State operating license means a license that is issued under the MMFLA or the MRTMA that allows the licensee to operate as a medical marijuana facility or an adult-use marijuana establishment, respectively.
Technology aided outreach means any form of electronic communication transmitted by digital surveys or an online comment process that allows residents to provide comments.
Temporary marijuana event permit means a permit held by a marijuana event organizer under this article and the MRTMA, which the state has approved, authorizing an event where the onsite sale or consumption of marijuana products, or both, are authorized at the location and on the dates indicated on the state operating license.
Tiebreaking lottery means a process, conducted under the observation of affected applicants, by which licenses are randomly selected from a pool of similarly situated applicants with identical scores.
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2020-44 (JCC. 11/17/20, Pass. 11/24/20, App. 11/30/20, Pub. 12/18/20, Eff. 1/11/21); Amended by Ord. No. 2021-13 (JCC. 3/16/21, Pass. 3/30/21, App. 3/31/21, Pub. 4/6/21, Eff. 3/31/21).
(a) Pursuant to Section 205(1) of the MMFLA, the City shall authorize licenses in accordance with the provisions of this article for the following types of medical marijuana facilities:
(1) Growers;
(2) Processors;
(3) Provisioning centers;
(4) Safety compliance facilities; and
(5) Secure transporters.
(b) Pursuant to Section 6(3) of the MRTMA, the City may authorize licenses in accordance with the provisions of this article for the following types of marijuana establishments:
(1) Growers;
(2) Retailers;
(3) Processors;
(4) Safety compliance;
(5) Secure transporters;
(6) Temporary marijuana events;
(7) Marijuana event organizers;
(8) Designated consumption establishments; and
(9) Microbusinesses.
(c) The City may sign attestations or other documents to evidence municipal approval for a state operating license as required by the State of Michigan Marijuana Regulatory Agency only upon issuance of a license under this article.
(d) Detroit City Council is exercising its discretion to permit adult-use marijuana establishments in Detroit as supported by the legal opinion of the Corporation Counsel that the ordinance is lawful, and on the condition that licenses for Detroit legacy applicants shall be prioritized in accordance with the legislative purpose of this ordinance. Should any provision of this ordinance governing adult-use marijuana establishments be ruled invalid, unconstitutional or struck down by a court of law. Subsection (b) of this section will be thereto repealed, and future adult-use marijuana establishments will be prohibited in accordance with Section 6(1) of the MRTMA, excluding those adult-use marijuana establishments previously licensed under this article, which licenses shall continue in effect until their expiration date, after which time they will not be renewed.
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2020-44 (JCC. 11/17/20, Pass. 11/24/20, App. 11/30/20, Pub. 12/18/20, Eff. 1/11/21).
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2019-36 (JCC. 10/22/19, Pass. 11/5/19, App. 11/12/19, Pub. 11/18/19, Eff. 11/18/19); Amended by Ord. No. 2020-1 (JCC. 1/21/20, Pass. 1/28/20, App. 1/29/20, Pub. 2/6/20, Eff. 2/6/20); Amended by Ord. No. 2020-6 (JCC. 3/17/20, Pass. 3/24/20, App. 3/25/20, Pub. 7/30/20, Eff. 7/30/20); Amended by Ord. No. 2020-27 (JCC. 7/14/20, Pass. 7/28/20, App. 7/29/20, Pub. 8/19/20, Eff. 8/19/20); Amended by Ord. No. 2020-37 (JCC. 10/13/20, Pass. 10/27/20, App. 10/28/20, Pub. 11/4/20, Eff. 11/4/20); Amended by Ord. No. 2020-38 (JCC. 11/10/20, Pass. 11/17/20, App. 11/23/20, Pub. 11/24/20, Eff. 11/24/20); Amended by Ord. No. 2020-44 (JCC. 11/10/20, Pass. 11/17/20, App. 11/23/20, Pub. 11/24/20, Eff. 11/24/20); Amended by Ord. No. 2020-44 (JCC. 11/17/20, Pass. 11/24/20, App. 11/30/20, Pub. 12/18/20, Eff. 1/11/21).