Ron Strider
Well-Known Member
Kalamazoo has a choice to make. The Medical Marihuana Facilities Licensing Act, signed by Gov. Rick Snyder in September 2016, gives Michigan cities the option to allow medical marijuana to be distributed in their jurisdictions. At a Monday work session, Kalamazoo City Attorney Clyde Robinson told the City Commission what steps it would need to take to implement laws regarding the creation and sale of marijuana to patients.
There are 4,081 medical marijuana patients and 521 caregivers registered with state of Michigan in Kalamazoo County. Robinson said medical marijuana has been a hot issue since the new law was signed.
"Not a week has passed without some kind of inquiry about what the city will do in light of the legislative enactments of last fall," he said.
Local municipalities have the option to allow five types of medical marijuana facilities to operate, or not. The city could simply do nothing and wait for larger communities to work out any kinks in the law.
If the city decides to wait, it would miss out on the other kind of green.
Three percent of medical marijuana retail sales will be taxed and distributed proportionally to local units of government based on their number of facilities. Taxes also support law enforcement departments at the state and local level.
Robinson said some high estimates state there will be up to $1 billion in sales next year.
The Senate Fiscal Agency projects Michigan's medical marijuana market to be worth $711.4 million, and related taxes under the new law would raise about $21.3 million per year.
"That's why we have commercialization of marijuana in Michigan," Robinson said. "There's money to be made."
One-quarter of the tax will go to municipalities, while 30 percent goes to counties that are home to medical marijuana facilities, 5 percent goes to the county's sheriff's department, 30 percent goes to the state and 5 percent goes to the Michigan Commission on Law Enforcement Standards.
Kalamazoo would likely receive around $100,000, Robinson said.
At the same time, he acknowledged that the marijuana laws are ultimately aimed at providing a safe product for patients who need it.
"Let's make sure were talking about this as a medical treatment," said Democratic Congressional candidate David Benac. "Marijuana can be a way to combat opioid addiction in this community. I'd like to see us earmark some of this money for that cause."
Other communities, especially townships and villages, have decided to wait until "some of the smoke has cleared," Robinson said.
Kalamazoo could also adopt an ordinance or resolution that prohibits medical marijuana facilities from operating in the city, though this option received little discussion.
The third, and most likely, option is to adopt an ordinance authorizing one or more types of facilities and create some regulations, so long as they don't conflict with the state law.
Robinson said if the city decided to allow medical marijuana facilities to do business, it would need to amend the zoning code to bring it up to date with recent changes in the law and define where types of marijuana facilities can be located.
Changes to the city Code of Ordinances would also be needed to set any limits on marijuana facilities, create a licensing process that compliments the state's process, and define the responsibilities and obligations of facility operators. The Planning Commission will begin work on potential zoning issues.
If the city decides to move forward, Robinson said the goal is to have all necessary ordinance changes adopted before Dec. 15 of this year, the date applications for one of five licenses can be filed.
The five types of licenses include:
-Growers (who cultivate the product)
-Processors (who refine the product into concentrates and edibles)
-Safety compliance facilities (which test the product for potency and contamination)
-Secure transporters (who transport the product between facilities)
-Provisioning Centers (also known as dispensaries)
A task force created to recommend actions to the City Commission endorsed having one provisioning center per 10,000 city residents, and three dispensaries as defined by a 2012 Kalamazoo charter amendment. Under the city charter, dispensaries must be operated by at least one registered patient and primary caregiver.
State operating licenses will be granted by the Bureau of Medical Marijuana Regulation, also known as BUMMR, created within the Department of Licensing and Regulatory Affairs. The board consists of five members appointed by the governor to four-year terms.
Ten days after an application is submitted to the state, the local municipality must be notified. A municipality has to adopt an ordinance authorizing medical marijuana facilities for dispensaries and other facilities to open under the state law, but can't impose regulations on the purity or pricing of marijuana.
Robinson recommended licenses be distributed by lottery.
Most of these medical marijuana facilities would be placed in industrial and manufacturing zones, Robinson said, of which Kalamazoo has plenty on the east side of downtown.
At the same time, medical marijuana facilities are also addressed by a 2012 charter amendment.
Kalamazoo voters overwhelmingly approved an amendment allowing up to three dispensaries within city limits. Section 199 of the Kalamazoo charter was passed just before a 2013 Michigan Supreme Court ruling determined patient-to-patient sales many dispensaries facilitated were not protected under the law.
Though Robinson said aspects of the amendment were short-sighted and contradict the state law, it represents the will of citizens. He said aspects of the amendment will be honored if possible.
The citizen-initiated ballot proposal in Kalamazoo passed by nearly a 2-1 margin. However, Gov. Rick Snyder sent a letter to the city disapproving the charter, saying it was inconsistent with state law at the time.
According to the amendment, a permit can't be provided to people who have been Michigan residents for less than two years. The city would also collect an annual $3,000 fee each year, to cover administration and enforcement costs incurred by the city.
Kalamazoo's city charter states dispensaries must be located in visible store-front locations and be at least 500 feet from any public or private school and existing dispensaries.
Robinson recommended a requirement that marijuana facilities be 1,000 feet from schools and playgrounds, and 500 feet from child care centers, places of worship, parks and recreational facilities, correctional facilities, substance abuse or treatment facilities and residential districts.
Commissioner David Anderson surmised that though there is no limit on how many facilities can be created, the location restrictions would create an artificial restriction.
Don't expect to see any pot-leaf billboards either; it's illegal to advertise except in certain trade publications.
Robinson said that marijuana facilities are primarily cash-oriented business because some banks are afraid of "aiding a criminal enterprise" under federal law. This makes it an attractive target of theft.
"That's what concerns me the most, is having very vulnerable targets because of the target being sold and the cash flow coming through it," said Kalamazoo Department of Public Safety Chief Jeff Hadley. "We need to think through those things very comprehensively."
Hadley said his role is to enforce the law, but he does think the city is trying to look at the issue proactively.
Commissioners had little to say about their support of medical marijuana facilities.
Mayor Bobby Hopewell said he believes Robinson's task force took a "reasonable approach" in trying to determine how the law applies to Kalamazoo.
The trio of bills to legalize and regulate dispensaries and legalize edibles cleared in the Michigan Senate before passing in the House of Representatives last year.
Public Act 281 creates the Medical Marijuana Facilities Licensing Act to license and regulate the growth, processing, transport and provisioning of medical marijuana.
The voter-initiated Michigan Medical Marijuana Act was amended by Public Act 282 to allow for the manufacture and use of marijuana-infused products by qualified patients.
The Marijuana Tracking Act was created by Public Act 283. It implements a seed-to-sale tracking system to keep tabs on all medical marijuana before it is sold.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Medical marijuana licenses require Kalamazoo ordinance changes | MLive.com
Author: Malachi Barrett
Contact: MLive contacts, services and support | MLive Contacts - MLive.com
Photo Credit: Kyle Nelson
Website: Michigan Local News, Breaking News, Sports & Weather - MLive.com
There are 4,081 medical marijuana patients and 521 caregivers registered with state of Michigan in Kalamazoo County. Robinson said medical marijuana has been a hot issue since the new law was signed.
"Not a week has passed without some kind of inquiry about what the city will do in light of the legislative enactments of last fall," he said.
Local municipalities have the option to allow five types of medical marijuana facilities to operate, or not. The city could simply do nothing and wait for larger communities to work out any kinks in the law.
If the city decides to wait, it would miss out on the other kind of green.
Three percent of medical marijuana retail sales will be taxed and distributed proportionally to local units of government based on their number of facilities. Taxes also support law enforcement departments at the state and local level.
Robinson said some high estimates state there will be up to $1 billion in sales next year.
The Senate Fiscal Agency projects Michigan's medical marijuana market to be worth $711.4 million, and related taxes under the new law would raise about $21.3 million per year.
"That's why we have commercialization of marijuana in Michigan," Robinson said. "There's money to be made."
One-quarter of the tax will go to municipalities, while 30 percent goes to counties that are home to medical marijuana facilities, 5 percent goes to the county's sheriff's department, 30 percent goes to the state and 5 percent goes to the Michigan Commission on Law Enforcement Standards.
Kalamazoo would likely receive around $100,000, Robinson said.
At the same time, he acknowledged that the marijuana laws are ultimately aimed at providing a safe product for patients who need it.
"Let's make sure were talking about this as a medical treatment," said Democratic Congressional candidate David Benac. "Marijuana can be a way to combat opioid addiction in this community. I'd like to see us earmark some of this money for that cause."
Other communities, especially townships and villages, have decided to wait until "some of the smoke has cleared," Robinson said.
Kalamazoo could also adopt an ordinance or resolution that prohibits medical marijuana facilities from operating in the city, though this option received little discussion.
The third, and most likely, option is to adopt an ordinance authorizing one or more types of facilities and create some regulations, so long as they don't conflict with the state law.
Robinson said if the city decided to allow medical marijuana facilities to do business, it would need to amend the zoning code to bring it up to date with recent changes in the law and define where types of marijuana facilities can be located.
Changes to the city Code of Ordinances would also be needed to set any limits on marijuana facilities, create a licensing process that compliments the state's process, and define the responsibilities and obligations of facility operators. The Planning Commission will begin work on potential zoning issues.
If the city decides to move forward, Robinson said the goal is to have all necessary ordinance changes adopted before Dec. 15 of this year, the date applications for one of five licenses can be filed.
The five types of licenses include:
-Growers (who cultivate the product)
-Processors (who refine the product into concentrates and edibles)
-Safety compliance facilities (which test the product for potency and contamination)
-Secure transporters (who transport the product between facilities)
-Provisioning Centers (also known as dispensaries)
A task force created to recommend actions to the City Commission endorsed having one provisioning center per 10,000 city residents, and three dispensaries as defined by a 2012 Kalamazoo charter amendment. Under the city charter, dispensaries must be operated by at least one registered patient and primary caregiver.
State operating licenses will be granted by the Bureau of Medical Marijuana Regulation, also known as BUMMR, created within the Department of Licensing and Regulatory Affairs. The board consists of five members appointed by the governor to four-year terms.
Ten days after an application is submitted to the state, the local municipality must be notified. A municipality has to adopt an ordinance authorizing medical marijuana facilities for dispensaries and other facilities to open under the state law, but can't impose regulations on the purity or pricing of marijuana.
Robinson recommended licenses be distributed by lottery.
Most of these medical marijuana facilities would be placed in industrial and manufacturing zones, Robinson said, of which Kalamazoo has plenty on the east side of downtown.
At the same time, medical marijuana facilities are also addressed by a 2012 charter amendment.
Kalamazoo voters overwhelmingly approved an amendment allowing up to three dispensaries within city limits. Section 199 of the Kalamazoo charter was passed just before a 2013 Michigan Supreme Court ruling determined patient-to-patient sales many dispensaries facilitated were not protected under the law.
Though Robinson said aspects of the amendment were short-sighted and contradict the state law, it represents the will of citizens. He said aspects of the amendment will be honored if possible.
The citizen-initiated ballot proposal in Kalamazoo passed by nearly a 2-1 margin. However, Gov. Rick Snyder sent a letter to the city disapproving the charter, saying it was inconsistent with state law at the time.
According to the amendment, a permit can't be provided to people who have been Michigan residents for less than two years. The city would also collect an annual $3,000 fee each year, to cover administration and enforcement costs incurred by the city.
Kalamazoo's city charter states dispensaries must be located in visible store-front locations and be at least 500 feet from any public or private school and existing dispensaries.
Robinson recommended a requirement that marijuana facilities be 1,000 feet from schools and playgrounds, and 500 feet from child care centers, places of worship, parks and recreational facilities, correctional facilities, substance abuse or treatment facilities and residential districts.
Commissioner David Anderson surmised that though there is no limit on how many facilities can be created, the location restrictions would create an artificial restriction.
Don't expect to see any pot-leaf billboards either; it's illegal to advertise except in certain trade publications.
Robinson said that marijuana facilities are primarily cash-oriented business because some banks are afraid of "aiding a criminal enterprise" under federal law. This makes it an attractive target of theft.
"That's what concerns me the most, is having very vulnerable targets because of the target being sold and the cash flow coming through it," said Kalamazoo Department of Public Safety Chief Jeff Hadley. "We need to think through those things very comprehensively."
Hadley said his role is to enforce the law, but he does think the city is trying to look at the issue proactively.
Commissioners had little to say about their support of medical marijuana facilities.
Mayor Bobby Hopewell said he believes Robinson's task force took a "reasonable approach" in trying to determine how the law applies to Kalamazoo.
The trio of bills to legalize and regulate dispensaries and legalize edibles cleared in the Michigan Senate before passing in the House of Representatives last year.
Public Act 281 creates the Medical Marijuana Facilities Licensing Act to license and regulate the growth, processing, transport and provisioning of medical marijuana.
The voter-initiated Michigan Medical Marijuana Act was amended by Public Act 282 to allow for the manufacture and use of marijuana-infused products by qualified patients.
The Marijuana Tracking Act was created by Public Act 283. It implements a seed-to-sale tracking system to keep tabs on all medical marijuana before it is sold.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Medical marijuana licenses require Kalamazoo ordinance changes | MLive.com
Author: Malachi Barrett
Contact: MLive contacts, services and support | MLive Contacts - MLive.com
Photo Credit: Kyle Nelson
Website: Michigan Local News, Breaking News, Sports & Weather - MLive.com
