MI: Lansing Council Passes Marijuana Ordinance, Sets Cap On Dispensaries

Ron Strider

Well-Known Member
After at least two years of debate, multiple drafts and voting delays, Lansing City Council approved a medical marijuana ordinance for commercial establishments Thursday night.

The ordinance will cap provisioning centers, also known as dispensaries, at 25. A cap won't be set for other establishments including marijuana growing, processing and transporting facilities and testing labs.

For all establishments to operate in the city, officials will require licenses. Estimates put the current number of dispensaries and other establishments in the city between 50 and 80.

It likely will take a while before the ordinance goes into effect. The ordinance states it will take effect on "the 30th day after enactment unless given immediate effect by the City Council."

With its passage, council members and Mayor Virg Bernero now await guidelines from the state Medical Marijuana Licensing Board to determine how establishments like dispensaries can operate under state law. Those regulations are currently being developed by the state as part of a statue passed last fall.

After Thursday's council meeting, Bernero praised the five council members who approved the ordinance: At-Large Council Members Judi Brown Clarke, Patricia Spitzley and Kathie Dunbar, 2nd Ward Council Member Tina Houghton and 4th Ward Council Member Jessica Yorko.

The terms of Clarke, Dunbar, Houghton and Yorko expire Dec. 31. Clarke is running for mayor this fall against State Rep. Andy Schor; Dunbar and Houghton seek re-election.

"I commend the majority on the Lansing City Council for passing a model MMJ Ordinance tonight that will regulate medical marijuana in Lansing, ensure quality product to those in need, help create hundreds of jobs and unleash millions of dollars in new investment in our city," Bernero wrote on his Facebook page.

In addition to the cap of 25 dispensaries and their licensing, Lansing's ordinance also requires licenses for marijuana growing, transporting and processing facilities. Testing labs are also included.

Under the ordinance, licenses for all establishments will be for one year and can be renewed.

The city isn't expected to grant people licenses until state officials have their own licensing structure in place. The state Department of Licensing and Regulatory Affairs (LARA) is expected to have applications for licenses available on its website Dec. 15.

To operate in Lansing and other Michigan communities that opt into a licensing program, owners of medical marijuana businesses would likely be required to have approved licenses from the city and state.

The state licensing board's next meeting is noon Tuesday at the Hawk Hollow Golf Club in Bath Township, 15101 Chandler Road. It will be open to the public and is expected to be streamed live at michigan.gov/bmmr.

As of Friday morning, the topic of "existing medical marijuana facilities" was the only item posted on the agenda.

A determination will be made Tuesday regarding the board's authority "on several regulatory matters, including dispensaries currently in operation," said David Harns, a LARA spokesman.

In an email to the State Journal, Harns also said the state's Bureau of Medical Marihuana Regulation (BMMR) is currently reviewing the recommendations and discussion from the licensing board and "consulting with the (state) attorney general's office before any action is taken."

"BMMR will make recommendations and give guidance to the (licensing) board on how to best implement any potential actions to ensure that patients are protected and the delivery of services to licensees are fair and efficient," Harns said.

The three Lansing City Council members who opposed the ordinance on Thursday were At-Large Council Member Carol Wood, 1st Ward Council Member Jody Washington and 3rd Ward Council Member Adam Hussain.

Washington expressed frustration with the ordinance's passage. She posted Friday morning on her Facebook page that there should have been more time for members and the public to review amendments that were added to the most recent draft before votes were cast.

"I am not upset that this ordinance passed, even though I find it to be lacking in so many areas," Washington said. "I am extremely upset with the process that took place and lack of transparency that occurred throughout this process."

City Clerk Chris Swope will score each application with "26 elements" the business is required to meet. His office will get assistance from paid marijuana experts.

An unpaid five-member commission will be "an appeals body" for those who sought licenses, but didn't get approved, Swope said.

"We want to try and make everyone on a level playing field," Swope said of applicants.

The ordinance states the five-member appeals commission will be "appointed by the mayor with consent of City Council."

Each application for a local license will require a $5,000 fee. If the applicant doesn't receive a license, the ordinance states $2,500 of the fee will be returned. The fee to renew a license is also $5,000. If renewal isn't granted, then half of the fee will be returned.

The ordinance also states licensees may transfer a license to a different location "upon receiving written approval from the city clerk."

For now, Swope said those interested in license applications can contact his office so they will be notified of availability. For information, call (517) 483-4131 or email city.clerk@lansingmi.gov.

Dispensaries will, under the ordinance, have to abide by these zoning regulations:

-1,000 feet from an operational school, including pre-kindergarten located withing a school

-500 feet from another dispensary or provisioning center; public playground equipment located within a park; a commercial child care organization; a church; "a facility at which substance abuse prevent services are provided or substance abuse treatment and rehabilitation services are provided"

Establishments won't be allowed to operate within another business, and the city's ordinance also requires them to be in areas either zoned commercial, wholesale, light industrial or heavy industrial.

After Michigan voters approved a medical marijuana statute in 2008, commercial marijuana establishments had operated in a gray area. They were not mentioned in the statute and many law enforcement officials deemed them illegal. Lansing planned to regulate them but dropped local enforcement efforts after the Attorney General's Office said dispensaries were not legal under the statute at the time.

Since then, Lansing officials have generally turned a blind eye to dispensaries, letting them operate at their own peril.

Last fall Michigan lawmakers approved and Gov. Rick Snyder signed a statute creating a regulatory structure for medical marijuana businesses. The state law called for a regulatory board, creation of review standards, one-year licenses and $5,000 annual fees as well as a 3% tax on gross receipts. The state's licensing process is in development.

The statute also said local communities can decide whether or not they want commercial marijuana businesses to operate in their boundaries. If they do, they can set zoning and licensing requirements of their own, including setting caps and charging up to $5,000 annually in local license fees.

While the Lansing City Council worked on its ordinance, the city set a moratorium for the opening of new marijuana establishments on May 21, 2016.

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News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Lansing marijuana ordinance passes, sets cap on dispensaries
Author: Eric Lacy
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