Alpena Council To Consider Medical Marijuana Facility Establishments
Mon, 08 Nov 2021 06:02:58 EST


Alpena's City Council and Planning Commission members will be getting together in special session Tuesday to consider the future of all allowing recreational marijuana establishments in the City of Alpena.

The session starts at 6:090 p.m. at Alpena City Hall, as the two legislative bodies review a draft of a proposed ordinance governing the establishments.

If the council gives the green light, it won't mean immediate effect, but likely will take some time to refine and clean language further before final adoption of the ordinance. that could take up to a year.

Voters approved of recreational marijuana use in 2018, but local governments can prohibit or regulate sales.

A draft of the ordinance can be seen with this story on our news page at WATZ dot com.

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ORDINANCE NO. XXX
AN ORDINANCE OF THE CITY OF ALPENA, MICHIGAN, AMENDING CHAPTER 18 – BUSINESSES,
ARTICLE I. IN GENERAL, MARIHUNA FACILITIES AND ADULT USE MARIHUANA
ESTABLISHMENTS - BY REPEAL OF SAME AND ADOPTION OF NEW LANGUAGE IN LIEU THEREOF.
BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF ALPENA, STATE OF MICHIGAN, AS
FOLLOWS:
Sec. 18-1. - Medical Marihuana facilities and adult use marihuana establishments.
(a) Purpose, intent, relationship to other laws and city liability and indemnification
(1) Purpose. The purpose of this section is amend and establish a uniformed licensing and
regulatory process for Medical and Adult-Use Marihuana Businesses to the extent
permissible under to implement the provisions of the Michigan Medical Marihuana Act,
(MCL 333.26421 et seq.), the Michigan Marihuana Facilities Licensing Act (MCL 333.27101
et seq.) the Marihuana Tracking Act (MCL 333.27901 et seq.), and the Michigan Regulation
and Taxation of Marihuana Act (MCL 333.27951 et seq.) referred to herein as the "Acts", so
as to protect the public health, safety, and welfare of the residents and patients of the city
by setting forth the manner in which medical marihuana facilities and adult use marihuana
establishments can be operated in the city. Further, the purpose of this section is to:
a. Provide for a means of cultivation, processing, and distribution of medical marihuana
to patients who qualify to obtain, possess, and use marihuana for medical purposes
under the Acts and for eligible adults with proper qualifying identification to obtain,
possess, and use marihuana for legally allowable individual purposes under the Acts;
b. Protect public health and safety through reasonable limitations on marihuana
operations as they relate to noise, air and water quality, neighborhood and
patient/customer safety, security for the facility and its personnel, and other health and
safety concerns;
c. Protect residential neighborhoods by limiting the location and the concentration of
types of medical marihuana facilities and adult use marihuana establishments to
specific areas of the city;
d. Impose fees to defray and recover the cost to the city of the administrative and
enforcement costs associated with medical marihuana facilities and adult use
marihuana establishments;
e. Coordinate with laws and regulations that may be enacted by the state addressing
medical marihuana; and
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f. To restrict the issuance of medical marihuana facility and adult use marihuana
establishment licenses only to individuals and entities that have demonstrated an intent
and ability to comply with this section.
(2) Legislative intent. This section authorizes the establishment of marihuana facilities and
marihuana establishments within the city consistent with the Acts:
a. Marihuana cultivation and processing can have an impact on health, safety, and
community resources, and this section is intended to permit marihuana cultivation and
processing where it will have a minimal impact;
b. The regulations for medical marihuana facilities and adult use marihuana establishments
are not adequate at the State level to address the impacts on the city of the
commercialization of marihuana, making it appropriate for local regulation of the impact
of medical marihuana facilities and adult use marihuana establishment on communities
as provided for under the acts and expressly retained by municipal charter and any and
all powers and immunities, expressed and implied which cities and their officers are, or
hereafter may be, permitted to exercise or to provide for under the constitution and laws
of the State;
c. Nothing in this section is intended to promote or condone the distribution, or possession
of marihuana in violation of any applicable State law;
d. This section is to be construed to protect the public over medical marihuana facility and
adult use marihuana establishment interests. Operation of a medical marihuana facility
and adult use marihuana establishment is a revocable privilege and not a right in the city.
There is no property right for an individual or facility to engage or obtain a license to
engage in medical marihuana as a commercial business in the city.
(3) Relationship to federal law. As of the effective date of this section, marihuana is
classified as a schedule 1 controlled substance under federal law the Federal Controlled
Substances Act, 21 U.S.C. Sec. 801 et seq.,which makes it unlawful to manufacture,
distribute, cultivate, produce, possess dispense or transport marihuana. Nothing in this
section is intended to grant immunity from any criminal prosecution under federal law.
(4) Relationship to state law. As of the effective date of this section, as amended, and except
as otherwise provided by the Acts; and this section, a city licensee and its employees and
agents who are operating within the scope of a valid state-issued operating license are not
subject to criminal or civil prosecution under city ordinances regulating medical marihuana.
Nothing in this section 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 in any form, that is not in strict compliance with the Acts, all applicable
DC1 : Comment from Eric Foster:
This insertion is critical to tiebar the City’s expressed,
enumerated, and implied powers to regulate businesses in
general, which includes Commercial Marihuana businesses.
In most of the applicant driven lawsuits, they have tried to
argue that ordinances for Commercial Marijuana businesses
can’t apply any other regulatory powers except for what’s
written in the MMFLA & MRTMA. Both of the Commercial
laws, the MRTMA & MMFLA clearly segregate their
statutory effects from interfering or overruling any other
statutes and laws of Michigan (MRTMA-MCL 333.27954 &
MMFLA MCL 333.27201). To make things clear, add the
newly inserted language to tie all municipal rights and
powers to this ordinance.
3
rules promulgated by the state regarding medical marihuana and all local laws, ordinances,
rules and policies. Strict compliance with any applicable state law or regulation shall be
deemed a requirement for the issuance or renewal of any license issued under this section,
and noncompliance with any applicable state law or local law or regulation shall be
grounds for revocation or nonrenewal of any license issued under the terms of this section.
(5) Reservation of legislative prerogative.
a. The City of Alpena reserves the right to amend or repeal this Chapter in any manner,
including, but not limited to, the complete elimination of any type or number of medical
marihuana facilities or adult-use marihuana establishments authorized to operate in
the City.
b. Nothing in this Chapter may be held or construed to grant or "grandfather" any medical
marihuana facility a vested right, license, permit or privilege to continued operations
within the City, except as granted by approval through the application and/or
application renewal process and as consistent with all other applicable laws, rules,
regulations, and guidelines of the state of Michigan.
(6) City liability and indemnification.
a. By accepting a license issued pursuant to this section, the licensee waives and releases the
city, its officers, elected officials, and employees from any liability for injuries, damages
or liabilities of any kind that result from any arrest or prosecution of medical marihuana
facility and adult use marihuana establishment owners, operators, employees, clients or
customers for a violation of local, state or federal laws, rules or regulations.
b. By accepting a license issued pursuant to this section, all licensees, agree to indemnify,
defend and hold harmless the city, its officers, elected officials, employees, 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 facility or establishment, arising out of,
claimed to have arisen out of, or in any manner connected with the operation of a
medical marihuana facility and adult use 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 claimed violation of the Federal
Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1964(c).
c. By accepting a license issued pursuant to this section, a licensee agrees to indemnify,
defend and hold harmless, the city, its officers, elected officials, employees, and insurers,
against all liability, claims, penalties, or demands arising on account any alleged violation
of the Federal Controlled Substances Act, 21 U.S.C. § 801 et seq. or article 7 of the
Michigan Public Health Code, MCL 33.7101 et seq.
DC2 : Comment from Eric Foster:
Adding this provision strengthens the immunization of the
City from claims of grandfathering rights by Medical
Marijuana licensees who claim an un-inferred right to an
adult-use license due to receiving a medical Marijuana
ordinance. As identified in MCL 333.27954 and has been
upheld in in judicial decisions in Traverse City v. 314
Munson Ave LLC and City of Berkley v. Fire Farm, LLC et. al.
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(b) Definitions. Through this section, the city adopts all definitions contained in any of the state
rules, regulations, statutes, administrative code, enacted for the purpose of regulating
marihuana facilities and establishments.
(c) Licensing of medical marihuana facilities and adult use marihuana establishments.
(1) Local licensing authority.
a. The Alpena City Council is designated as the local licensing authority. The city council
may by resolution delegate its authority or a portion of such authority to a new
committee or other designee to act as the local licensing authority. The local licensing
authority shall have the duty and authority pursuant to the Medical Marihuana Facilities
Licensing Act (“MMFLA”) and Michigan Regulation and Taxation of Marihuana Act
(“MRTMA”) in this Ordinance to grant or deny an application described in this
Ordinance and to levy penalties against the licensee in the manner provided by law.
b. The local license authority shall consider applications for new business premises,
transfer of ownership, change of location, license premises modification, changes in
trade name, and any other appropriate application.
c. The local license authority shall have the power to promulgate rules and regulations
concerning the procedure for hearings before the local licensing authority.
d. The local license authority shall have the power to require any application or licensee
to furnish such information to the authority as may be reasonably necessary in order
for the authority to perform its duties and functions authorized by this Ordinance.
e. The local license authority shall have the power to administer oaths and issue
subpoenas to require the presence of persons and the productions of papers, books
and records at any hearing in which the authority is authorized to conduct. Any
subpoena shall be served in the same manner as a subpoena issued by a District Court
of the State. The District Court Judge shall have the power and authority to enforce such
subpoena.
(2) Number of permitted facilities. The maximum number of each type of medical
marihuana facility and adult use marihuana establishment permitted in the city is as follows:
Type Number Permitted in City
DC3 : Comment from Eric Foster:
We recommend the addition of this provision, which is
taken from the Village of Breedsville Ordinance 16-120319
Section 5 Composition of Local Licensing Authority. This
helps further codifies the municipality’s regulatory role and
powers.
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Grower Licenses of Class A (maximum of 100
marihuana plants) as defined in the MRTMA or Class A
(maximum of 500 marihuana plants) as defined in the
MMFLA
Unlimited
Grower Licenses of Class B (maximum of 250 marihuana
plants) as defined in the MRTMA or Class B (maximum
of 1,000 marihuana plants) as defined in the MMFLA
Unlimited
Grower Licenses of Class C (maximum of 2,000
marihuana plants) as defined in the MRTMA or Class C
(maximum of 1,500 marihuana plants) as defined in the
MMFLA
Unlimited
Marihuana Microbusiness Unlimited
Medical Marihuana Provisioning Centers/Marihuana
Retailers
Unlimited
Marihuana Processor or
Medical Marihuana Processor Facility
Unlimited
Marihuana Safety Compliance Establishment
or Medical Marihuana Safety Compliance Facility
Unlimited
Secure Transporter or
Medical Marihuana Secure Transporter
Unlimited
Excess Grower Prohibited
Designated Consumption Center Prohibited
Marihuana Event Organizer Prohibited
Temporary Event License Prohibited
(3) Location. No medical marihuana facility or adult use marihuana establishment shall be
eligible to be issued a license unless at the time of application for such license, the location
of the proposed facility complies with the zoning and separation distances from other uses
as set forth in the city zoning ordinance as required for the specific type of medical marihuana
facility or adult use marihuana establishment for which licensure is being sought;
(4) Operation at location provided on application only. A licensee shall not operate a medical
marihuana facility or adult use marihuana establishment at any place in the city other than
the address provided in the application on file with the city clerk.
(5) Combined facilities. Multiple types of medical marihuana facilities and adult use marihuana
establishments may operate from a single location pursuant to the Acts, State of Michigan
rules, and the city Zoning Ordinance. A combined facility shall pay one licensing fee upon
application if the combined facility is applied for concurrently. If a medical marihuana facility
or adult use establishment is added to an existing facility or establishment, a new application
and licensing fee shall be required. Annual renewal of the combined facility shall require one
fee.
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(6) Stacking of licenses. Any grower issued a license by the city may stack up to three class C
licenses at a single location without requiring any additional city licensing or approval,
provided that the exterior of the existing structure where the facility is located will not
require expansion. If expansion is required, the licensee must obtain all necessary permits
and approval required for such expansion.
(7) Expansion of license classification. Provided further that any licensed grower in the city that
holds anything less than a state issued class C license may, at any time, expand the license
classification without requiring city approval. By way of example: licensee holding a state
issued class A license may expand at any time to a state issued class B or C and may further
stack up to three class C licenses as provided above without city approval.
(8) License and annual fees required.
a. No person shall establish or operate a medical marihuana facility or adult use marihuana
establishment in the city without first having obtained from the city and the State of
Michigan a license for each such facility or establishment to be operated. License
certificates shall be kept current and publicly displayed within the facility or
establishment. Failure to maintain or display a current license certificate shall be a
violation of this section;
b. An annual, nonrefundable licensing fee to defray the administrative and enforcement
costs associated with medical marihuana facilities and adult use marihuana
establishments located in the city of not more than $5,000.00 per license or in an amount
established by resolution adopted by the city council or in an amount established by state
law;
c. The annual, nonrefundable application/reapplication fee, as determined by city council
resolution from time to time, per license required under this section shall be due and
payable with the application for a license and upon the application for renewal of any
such license under this section. This application/reapplication fee shall be considered
part of the licensing fee in subsection 6.b;
d. The annual, nonrefundable inspection fee, as determined by city council resolution
from time to time, per licensed facility required under this section shall be due and
payable with the application for annual inspection and upon the application for renewal
of any such license under this section; This inspection fee shall be considered part of the
licensing fee in subsection 6.b;
e. The fees set forth herein shall be in addition to, and not in lieu of, any other licensing
and permitting requirements imposed by any other federal, state, or city ordinance,
including, by way of example any applicable zoning or building permits;
f. The issuance of any license pursuant to this section does not create an exception,
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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;
g. A separate license shall be required for each facility or establishment type or premise
from which a medical marihuana facility or adult use marihuana establishment is
operated.
h. The term of each license shall be one year beginning when the licensee is granted a
certificate of occupancy and permit from the building and safety inspections division.
i. The annual license established pursuant to the above paragraph begins and commences
at the time of the receipt of the applicant's certificate of occupancy by the city.
(9) Application requirements.
a. A person seeking a license pursuant to the Acts and the provisions of this section shall
submit an application to the city on forms provided by the city. All documents submitted
to the city shall be submitted in both hardcopy and digital formats. At the time of
application, each applicant shall pay a nonrefundable application fee 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 identification.
b. The applicant shall also provide a complete copy of their application for State approval,
including, but not limited to:
1. Proof of ownership or authorization to use the property for a medical marihuana
facility or adult use marihuana establishment.
2. A notarized statement from the owner of such property authorizing the use of the
property for a medical marihuana facility or adult use marihuana establishment, if the
applicant is not the owner of the proposed licensed premises;
3. 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.
4. The non-refundable application fee for a medical marihuana facility or adult use
marihuana establishment license is $1,500.00 per license or as established by
resolution adopted by city council or in an amount established by state law. This
application fee shall be considered part of the licensing fee in subsection 6.b;
c. For medical marihuana provisioning centers, marihuana retailers, and marihuana
microbusinesses, the following shall apply:
DC4 : Eric Foster suggests this should apply
to ALL types of marijuana facilities and establishments – not
just retailers/provisioning centers:
To further immunize the Municipality from litigation and
Equal Protections claims (if an applicant applies for a
Vertical License, meaning a separate Grower, Processor and
Provisioning Center/Retailer application, the current
construction of the ordinance would create two different
procedural standards for making licensing decisions. This
could be grounds for a litigant to pursue both an equal
protection claim and a due process claim. To simplify the
process and eliminate the dueling licensing processes, make
this provision applicable to all applicants for licensing.
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1. At least one applicant shall demonstrate experience with owning (51% or more),
operating, and/or managing a business with inventory tracking and control (min. of 1
year) pursuant to MCL 125.3501, MCL 125.3502, MCL 125.3504, Article VII, § 34
Construction of constitution and law concerning counties, townships, cities, villages
and Article VII, § 22 Charters, resolutions, ordinances; enumeration of powers of the
Michigan Constitution.
2. At least one applicant shall demonstrate experience with owning (51% or more),
operating, and/or managing a business in a highly regulated industry (min. of 1 year).
Highly regulated means subject to regulation by LARA or a similarly regulated agency
(state or federal) pursuant to MCL 125.3501, MCL 125.3502, MCL 125.3504, Article VII,
§ 34 Construction of constitution and law concerning counties, townships, cities,
villages and Article VII, § 22 Charters, resolutions, ordinances; enumeration of powers
of the Michigan Constitution.
3. Applicant shall present a detailed description of estimated capital investment.
Capital investment is defined as a fixed asset, which is an asset purchased for a longterm
use and not likely to be converted quickly into cash such as land, buildings, and
equipment pursuant to MCL 125.3501, MCL 125.3502, MCL 125.3504, Article VII, § 34
Construction of constitution and law concerning counties, townships, cities, villages
and Article VII, § 22 Charters, resolutions, ordinances; enumeration of powers of the
Michigan Constitution.
4. Applicant shall include a business plan which includes a daily operations schedule.
5. Applicant shall present a proposed staffing plan, complete with descriptions of job
duties, proposed wages, and employee qualifications/hiring criteria pursuant to MCL
125.3501, MCL 125.3502, MCL 125.3504, Article VII, § 34 Construction of constitution
and law concerning counties, townships, cities, villages and Article VII, § 22 Charters,
resolutions, ordinances; enumeration of powers of the Michigan Constitution.
6. Applicant shall present a documented employee policy book and code of ethics to
ensure honesty and integrity of employees.
a. Applicant shall present a sworn attestation that the Applicant and/or parties with
25% or more interest in the company have not been subject to any civil monetary
judgements entered against it in the last 7 years, excluding family law matters or estate
disputes.
7. Applicant shall present a sworn attestation that the Applicant and/or parties with
25% or more interest in the company have not filed bankruptcy within the last 7 years.
8. Applicant shall present a plan to deter and prevent unauthorized entrance into
DC5 : Comment from Eric Foster (this
includes all insertions of this in the standards below:
Adding this clause to the ordinance further codifies your
legitimate economic purpose for exercising this type of
regulatory requirement for application submission. The
added citation and existing language are both factually
neutral and applied to all license classifications, meets a
legitimate purpose as provided for municipalities to
regulate businesses to promote the economic interest,
health, safety and welfare of the greater community. This
should provide additional support to meet both the Rational
Basis Test standard and the narrow tailored standard of the
Strict Scrutiny Test, if challenged in court.
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the facility.
9. Applicant shall present a plan to prevent theft and diversion.
10. Applicant shall present a plan for 24/7 video surveillance inside and outside of facility.
11. Applicant shall present a plan for secure storage of medical marihuana and proceeds.
12. Applicant shall present a detailed plan for record keeping and inventory management.
13. Applicant shall provide copies of material safety data sheets for hazardous
materials and their plan for storage and disposal (or a sworn attestation that no
hazardous materials will be on the premises at any time).
14. Applicant shall present a plan that included a security system in place to alert owner
of possible tampering with the facility or its contents.
15. Applicant shall propose a living wage (at least 200% of the Federal Poverty Level for
a family of two, at its hourly basis) to all employees pursuant to MCL 125.3501, MCL
125.3502, MCL 125.3504, Article VII, § 34 Construction of constitution and law
concerning counties, townships, cities, villages and Article VII, § 22 Charters,
resolutions, ordinances; enumeration of powers of the Michigan Constitution.
16. Applicant shall offer a benefits package in addition to wages or salary pursuant to MCL
125.3501, MCL 125.3502, MCL 125.3504, Article VII, § 34 Construction of constitution
and law concerning counties, townships, cities, villages and Article VII, § 22 Charters,
resolutions, ordinances; enumeration of powers of the Michigan Constitution.
(10) Review process.
a. Within fourteen (14) days of application submittal, city staff will determine if the
application is complete and will notify the applicant if there are deficiencies.
b. After receiving notification from city staff pursuant to subsection 8.a above, the applicant
shall have fourteen (14) days from the date of said notification to submit additional
information.
c. Within thirty (30) days of the application being determined to be complete, city staff will
review the application to determine compliance with this section and shall notify the
applicant that the applicant is approved to proceed with the inspection phase pursuant
to subsection 10.
(11) Denial of application and due process.
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a. The city shall reject any application that does not meet the requirements of the Acts or this
section, or any pertinent provision of any State of Michigan or City of Alpena laws, rules
or regulations.
b. In accordance with the Acts, an applicant may be ineligible to receive a license under this
section if any of the following circumstances:
1. The applicant has knowingly submitted an application for license that contains false,
misleading or fraudulent information, or who has intentionally omitted pertinent
information for the application for license.
2. The applicant fails to meet other criteria established by the Acts or other pertinent
law and/or obtain a state license.
3. The applicant does not submit proof of "approved for prequalification" with the state.
c. Denial of application; due process.
1. Those applicants denied a license based on qualifications may appeal the decision
within thirty (30) days of notification of denial. The city council shall hear and decide
questions or requests for due process that arise after city staff have reviewed and
provided a decision that the applicant wishes to further appeal.
2. The applicant must submit a narrative request for due process that includes
detailed information and all supporting documentation for any/all points they wish
to have city council consider.
i. Within thirty (30) days of notification of appeal by the applicant, a due process
review shall be conducted at a public meeting of the council and a concurring vote
of a majority of the members of the full city council is necessary to reverse an
order, requirement, decision or determination of an administrative official in
the interpretation of this section;
ii. The applicant must be present at the designated council meeting or forfeits their
right to due process;
iii. The decision of the city council is final.
(12) Issuance of city medical marihuana facility or adult use marihuana establishment
operating license.
a. Special use permit. The proposed medical marihuana facility or adult use marihuana
11
establishment shall obtain a Special Use permit from the Planning Commission.
b. Inspection. An occupancy inspection of the proposed medical marihuana facility or
adult use marihuana establishment by the city shall be required prior to the issuance of
the city operating license in accordance with the currently adopted Michigan Building
Code. Such inspection shall occur after the premises are ready for operation, but prior to
the stocking of the business with any marihuana and prior to the opening of the business
to any patients or the public. The inspection is to verify that the business facilities are
constructed and can be operated in accordance with the application submitted and the
applicable requirements of the code and any other applicable law, rule or regulation.
c. In the event that the medical marihuana facility or adult use marihuana establishment is
granted a license but fails to substantially comply with its original site plan or operates
inconsistent with the manner in which it was represented on the licensing application,
the city may revoke the license or may allow the licensee to present its case for
modification of its original facility and license to the Planning Commission. If the Planning
Commission approves the changes, then the city will take no further action regarding the
licensee’s license. If the licensee fails to address its substantial non-compliance with the
Planning Commission, then the city may revoke the license and may prohibit the licensee
from applying for a medical marihuana facility or adult use marihuana establishment
license in the future.
d. After verification that the business facilities are constructed and can be operated in
accordance with the application submitted and the applicable requirements of the code
and any other applicable law, rule or regulation, the city clerk shall issue a city medical
marihuana facility or adult use marihuana establishment license whose term shall run
concurrent with the State of Michigan license for the facility or establishment.
e. Maintaining a valid medical marihuana facility or adult use marihuana establishment
license issued by the State of Michigan is a condition for the issuance and maintenance of
the city medical marihuana facility or adult use marihuana establishment operating
license issued under this section and the continued operation of a medical marihuana
facility or adult use marihuana establishment.
f. The city will authorize approved medical marihuana facility or adult use marihuana
establishment license(s) to entities on the condition that the following have been
submitted, completed and approved:
1. Application on a form provided by the city; and
2. Paid all licensing fees due to the city; and
3. The entity(ies) holds an approved and fully authorized State of Michigan approved
medical marihuana facility or adult use marihuana establishment license to the city
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clerk; and
4. An approved Special Land Use permit from the Planning Commission; and
5. An approved certificate of occupancy from the applicable building official; and
6. All medical marihuana facilities or adult use marihuana establishments shall obtain a
State of Michigan license and all other required permits or licenses related to the
operation of the medical marihuana facility or adult use marihuana establishment,
including, without limitation, any development approvals or building permits required
by any applicable code or ordinance prior to opening to the public; including but not
limited to any approved building permits (as required for any
construction/deconstruction) by the city official as appropriate. Any such license and
required permits shall be acquired within one (1) year from the date of approval by
city council unless that period is extended by mutual agreement of the city council and
licensee.
7. Proof of insurance. A licensee shall at all times maintain full force and effect for
duration of the license, workers compensation as required by state law, and general
liability insurance with minimum limits of $1,000,000.00 per occurrence and a
$2,000,000.00 aggregate limit issued from a company licensed to do business in the
state having an AM Best rating of at least A-.
8. 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 (7) 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 business
days in the event of expiration or cancellation of coverage.
9. Applicant will provide any additional information that the city clerk, law enforcement,
fire chief, public works supervisor, zoning administrator, building official, city manager
and/or city attorney or their designees reasonably determines to be necessary in
connection with the investigation and review of the application.
(13) License forfeiture. In the event that a medical marihuana facility or adult use marihuana
establishment does not commence operations within one (1) year of issuance of a city
operating license, the license shall be deemed forfeited; the business may not commence
operations, unless extended by a majority vote of the full city council.
(14) License renewal. A valid medical marihuana facility or adult use marihuana establishment
license may be renewed on an annual basis by a renewal application upon a form provided
by the city and payment of annual fees.
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a. Timeline of renewal application. An application to renew a medical marihuana facility or
adult use marihuana establishment license shall be filed at least ninety (90) days prior to
the date of its expiration.
b. Late fee. In the event that the renewed application is not submitted in accordance with
this section, the city will assess a late fee as fixed by city council for each day that the
renewal application is submitted late.
c. Late fee after expiration. In the event that an application is not received by the date of
expiration, an additional late fee shall be assigned by the city council not to exceed
$2,000.00, in addition to the daily late fees outlined herein and annual renewal fee.
d. Expiration. In the event that an application is not received by the date of expiration, the
license will be considered null and void and all operations must immediately cease by
order of law enforcement.
e. Notice of revocation. A notice of local revocation will be issued to the State of Michigan
and the licensee will have to resubmit all documentation, fees, and receive all approvals
as a new entity should they wish to reopen their business.
f. Annual inspection. Prior to the issuance of a renewed medical marihuana facility or adult
use marihuana establishment license by the city, the premises shall be inspected to
assure that it and its systems are in compliance with the requirements of this section. The
annual, nonrefundable inspection fee, as assigned by the city council, per licensed facility
or establishment required under this section, shall be due and payable with the
application for annual inspection and upon the application for renewal of any such license
under this section.
(15) Transfer, sale, or purchase of license.
a. A medical marihuana facility or adult use marihuana establishment license is valid only
for the owner named thereon, the type of business disclosed on the application for the
license, and the location for which the license is issued. The licensees of a medical
marihuana facility or adult use marihuana establishment license are only those persons
disclosed in the application or subsequently disclosed to the city in accordance with this
section.
b. Each operating license is exclusive to the licensee and location. A licensee or any other
person must submit an application for licensure with the city clerk before a license is
transferred, sold, or purchased.
c. In compliance with any/all rules issued by the board regarding the sale, transfer or
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purchase of existing licenses; any entity that holds a city-issued license may transfer or
sell their license to a qualifying applicant.
1. Any entity purchasing or receiving a transferred license must submit an application
and all associated documentation and all fees;
2. The applicant who is receiving the transfer or purchasing the license must have
submitted all new application, license and inspection fees and received all local and
State of Michigan approvals, including "approved for prequalification" with the State
of Michigan on all applications and associated documentation as well as all inspections
as outlined in this section and the Acts prior to beginning or taking over operations.
d. The attempted transfer, sale, or other conveyance of an interest in a license without
prior board or city approval is grounds for suspension or revocation of the license or for
other sanction considered appropriate by the city.
e. The following actions constitute transfer of ownership and require a new application,
application fee and city council approval:
1. Persons. Any Transfer of more than 1% of an ownership interest in an Applicant or
Permit Holder between Persons constitutes a transfer of ownership.
2. Corporations. Any transfer of more than 1% of stock or any change in principal
officers or directors of any corporation holding a Permit constitutes a transfer of
ownership.
3. Limited Liability Companies. Any transfer of more than 1% of membership interest
or any change in members or change in the interest held by member(s) of any
Limited Liability Company holding a Permit constitutes a transfer of ownership.
4. Partnerships. Any change of more than 1% of a partnership interest or any change
in general or managing partners of any partnership holding a Permit constitutes a
transfer of ownership.
5. Assets. Any transfer of more than 1% of the assets held by an Applicant or Permit
Holder constitutes a transfer of ownership
f. Effect of transfer.
1. Immediately following the approval of a transfer of ownership by the city, the
transferee(s) will obtain all the interests, rights, obligations and responsibilities of
the previous license holder. Once a license holder has transferred his or her
ownership interest, any privileges enjoyed by that license holder under this
ordinance are terminated.
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2. For transfers, the renewal and termination dates of the license shall not change.
(16) License as revocable privilege.
a. An operating license granted by this section is a revocable privilege granted by the city
and is not a property right. Granting a license does not create or vest any right, title,
franchise, or other property interest.
b. Each license is exclusive to the licensee, and a licensee or any other person must apply
for and receive the city's approval before a license is transferred, sold, or purchased.
c. A licensee or any other person shall not lease, pledge, or borrow or loan money against a
license.
d. Any effort to circumvent the protocol listed in this section and/or the city zoning
ordinance will result in the immediate denial of application or complete revocation of the
city-issued medical marihuana facility or adult use marihuana establishment license.
(17) Nonrenewal, suspension, or revocation of license.
a. The city may, after notice, suspend, revoke or refuse to renew a license for any of the
following reasons:
1. 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 section or with any applicable state or local law or
regulation;
2. The applicant or licensee, or his or her agent, manager or employee, has failed to
comply with any special terms or conditions of its license pursuant to an order of the
State of Michigan or local licensing authority, including those terms and conditions
that were established at the time of issuance of the license and those imposed as a
result of any disciplinary proceedings held subsequent to the date of issuance of the
license; or
3. The medical marihuana facility or adult use marihuana establishment has been
operated in a manner that adversely affects the public health, safety or welfare;
4. The licensee has not submitted all necessary documentation and/or fees to renew
their license.
b. Evidence to support a finding under this section may include, without limitation, a
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continuing pattern of conduct, a continuing pattern of drug-related criminal conduct within
the premises or property occupied by the medical marihuana facility or adult use
marihuana establishment, a continuing pattern of criminal conduct directly related to or
arising from the operation of the medical marihuana facility or adult use marihuana
establishment, or an ongoing nuisance condition emanating from or caused by the
medical marihuana facility or adult use marihuana establishment or any other concerns
raised by city staff and/or other local, state or federal officials. Criminal conduct shall be
limited to the violation of a state law or regulation or city ordinance.
c. Any decision of nonrenewal, suspension or revocation has the right to due process and
may be eligible for appeal to the city council.
(d) General requirements and restrictions. All medical marihuana facilities or adult use marihuana
establishments operating within the city shall be subject to the following general requirements
and restrictions. To the extent there is a conflict between these requirements and restrictions
and the Act, the Act shall prevail.
(1) General requirements.
a. Exterior signage. Facilities and establishments may only use exterior signage that is in
compliance with the city’s zoning ordinance regarding signs and Michigan law. Facilities
may not use exterior signage or displays with neon, flashing lights, or similarly noxious or
obtrusive lighting or effects.
b. Hours of operation. Provisioning centers, retailers, and microbusinesses may only
operate between the hours of 8:00 a.m. and 9:00 p.m.
c. Indoor operations/no drive-thru service. All business operations of a facility or
establishment must occur indoors. Facilities and establishments may not provide drivethru
service.
d. Odors. Facilities and establishments may not emit noxious odors or fumes, in accordance
with the city's zoning ordinance regarding visibility of activities; control of emissions.
e. Artificial lighting. Any artificial grow lighting must not be visible from neighboring
properties, streets, or rights-of-way.
f. Security. Facilities and establishments shall have:
1. A monitored alarm system (24 hours per day and seven days a week);
2. A safe for all cash, cash equivalents, and marihuana stored in the facility or
establishment overnight shall be in a room secured by commercial grade security
doors;
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3. Monitored security cameras covering, at a minimum, all parking areas, entrances and
exits, points of sale, and all areas where marihuana is stored or handled. All security
recordings must be maintained for a minimum of forty-five (45) days and provided to
law enforcement upon request;
g. Display of permit. The permit issued by the city and the license issued by the state shall
be prominently displayed within the facility in a location where it can be easily viewed
by the public.
h. Systems. All facilities and establishments shall have electrical, fire safety, plumbing,
filtration and waste disposal systems, which are appropriate and consistent with best
industry practices for the business being conducted.
(2) Prohibited acts.
a. No person under the age of eighteen (18) shall be permitted to enter a facility unless
the person has a medical marihuana card and is accompanied by a legal guardian over
the age of eighteen (18).
b. No marihuana may be smoked, used, or consumed at any facility.
c. It shall be unlawful for any licensee to permit the consumption of alcohol beverages
on the licensed premises.
d. No facility or establishment may operate under a temporary certificate of occupancy.
Facilities and establishments shall be in full compliance with all applicable legal
requirements in order to operate.
e. It shall be unlawful for any licensee holding a provisioning center, retailer, or
microbusiness license, or for any agent, manager, or employee thereof to:
1. Sell, give, dispense or otherwise distribute medical marihuana or adult use marihuana
paraphernalia from any outdoor location;
2. Sell, give, dispense or otherwise distribute to any patient or primary caregiver who
is not a licensee more usable form of medical marihuana (including the useable
medical marihuana equivalent of medical marihuana-infused products) within any
seven-day period of time than they are allowed by the MMMA to possess;
3. It shall be unlawful for retail medical marihuana establishments a provisioning
center, retailer, or microbusiness to medical distribute marihuana or marihuanainfused
products to a consumer free of charge.
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(3) Inspection of licensed premises.
a. Application for medical marihuana facility or adult use marihuana establishment license
or operation of a medical marihuana facility or adult use marihuana establishment, or
leasing property to a medical marihuana facility or adult use marihuana establishment,
constitutes consent by the applicant, and all owners, managers, and employees of the
business, and the owner of the property to permit law enforcement, or their designee,
to conduct routine examinations and inspections of the medical marihuana facility or
adult use marihuana establishment to ensure compliance with this section or any other
applicable law, rule or regulation.
b. During all business hours and other times when the premises are occupied by the licensee
or an employee or agent of the licensee, all licensed premises shall be subject to
examination and inspection by law enforcement and any other city departments for the
purpose of investigating and determining compliance with the provisions of this section
and any other applicable state and local laws or regulations.
c. For the purposes of this section, examinations and inspections of medical marihuana
facilities and adult use marihuana establishments and recordings from security cameras
in such businesses are part of the routine policy of enforcement of this section for the
purpose of protecting the public safety, individuals operating and using the services of
the medical marihuana facilities and adult use marihuana establishments, and the
adjoining properties and neighborhoods.
d. A licensee, or an employee or agent of the licensee, shall not threaten, hinder or obstruct
a law enforcement officer or a city inspector or investigator in the course of making an
examination or inspection of the licensed premises and shall not refuse, fail, or neglect to
cooperate with a law enforcement officer, inspector, or investigator in the performance
of his or her duties to enforce this section, the Acts, or applicable state administrative
rules.
(e) Other laws remain applicable. To the extent the State of Michigan adopts in the future
any additional or stricter law or regulation governing the sale or distribution of medical
marihuana, the additional or stricter regulation shall control the establishment or
operation of any medical marihuana facility or adult use marihuana establishment in the
city. Compliance with any applicable state law or regulation shall be deemed an additional
requirement for issuance or denial of any license, and noncompliance with any applicable
state law or regulation shall be grounds for the revocation or suspension of any license.
(f) Grant of administrative authority. The city clerk is granted the power and duty, through
its official designation, to fully and effectively implement and administer the license
application process and issuance of operating licenses issued by the city under this section.
The city clerk, after consultation with other city departments, may promulgate such rules
as necessary to implement and administer this section.
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(g) Violations and penalties.
(1) In addition to the possible denial, suspension, revocation or nonrenewal of a license under
the provisions of this section, any person, including, but not limited to, any licensee, manager
or employee of a medical marihuana facility or adult use marihuana establishment, or any
customer of such business, who violates any of the provisions of this section, shall be guilty
of a misdemeanor punishable in accordance with this section unless a different penalty is
provided herein.
(2) If a facility is operated in violation of the Act or any applicable ordinance, or if the Licensee is
found to have submitted false or misleading information in its permit application, the city
may revoke the permit for such facility to operate within the city. The city retains the right to
alter the number and type of facilities and establishments authorized hereunder at any time.
Any permit granted hereunder is a revocable privilege granted by the city and is not a property
or other legal right.
(3) With respect to any facility that is in violation of any requirement or restriction set forth in this
section, the Licensee of a facility, all persons identified pursuant to the Acts, and any on-site
manager shall be subject to the following penalties:
a. Any violation shall be a misdemeanor and may be punished by a fine of not more than
$1,500.00 and/or imprisonment not exceeding ninety (90) days and the violator(s) shall
pay all court costs and expenses.
a. The penalties set forth herein are non-exclusive and cumulative, and nothing herein shall
be deemed to prevent city from enforcing any other applicable ordinance.
b. In addition to the remedies provided herein, the city may file for injunctive relief to abate
any violation hereof.
EFFECTIVE DATE
THE PROVISIONS OF THIS ORDINANCE SHALL TAKE EFFECT _________
I HEREBY CERTIFY THAT THE ABOVE ORDINANCE WAS ADOPTED BY THE MUNICIPAL COUNCIL OF
THE CITY OF ALPENA, MICHIGAN, AT A REGULAR MEETING HELD ON THE DAY OF 2021.




   

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