MI: Ann Arbor Outlines Potential Permit Process For Marijuana Businesses

Ron Strider

Well-Known Member
The city of Ann Arbor is taking steps to ensure its process for licensing medical marijuana facilities complies with the state's new Medical Marihuana Licensing Facilities Act.

The state law, which took effect in December 2016, outlines different types of commercial medical marijuana facilities that can be licensed in Michigan. The state plans to begin accepting licensing applications Dec. 15.

Any dispensary that is going to apply for a state license must first go through the city's licensing process, said Councilmember Chip Smith at a meeting on Monday, Oct. 16.

The city council approved a first reading Monday of a proposed amendment that would repeal Ann Arbor's current "medical marijuana licenses for medical marijuana dispensaries" ordinance and add a new "medical marijuana facilities" ordinance that complies with the state's regulations.

The city's planning commission also is expected to propose changes to the zoning ordinance to reflect the state's new medical marijuana licensing regulations.

"These proposed amendments apply only to Chapter 55 Zoning of city code. They address where various newly-defined medical marijuana uses may be appropriately located, and reasonable restrictions to protect people and other uses in that zoning district. Permitting for medical marijuana facilities is being addressed in a separate code section," states a report reviewed by the planning commission on Tuesday.

The city council decided Monday to move forward with a first reading of the medical marijuana licensing ordinance, rather than wait to review it in tandem with the proposed zoning ordinance changes. A second reading on the licensing ordinance is scheduled for Nov. 9.

"We think it's prudent (to move forward) for a number of reasons, one of which is to express our support to both our local businesses and our local patients," Smith said at Monday's meeting. "To show that we do support medical marijuana, that we are interested in continuing to permit these uses in the city of Ann Arbor and that we are organized so that our providers can go through the state process as quickly as possible."

Councilmember Jason Frenzel, who sponsored the medical marijuana licensing ordinance with Smith, said he hopes the city's ordinance will guide local businesses as questions remain about implementation of the state's new licensing process.

"I just want to make sure that we're setting a goal post for our local businesses so that they know what they'll need to respond to in the city regulations so they can respond more directly to the state when need be," Frenzel said.

Under the proposed ordinance, Ann Arbor would allow the following types of medical marijuana facilities to operate, provided they have a state license:

-Grower, including Class A grower (up to 500 marijuana plants), Class B grower (up to 1,000 marijuana plants) and Class C grower (up to 1,500 marijuana plants);

-Processor, which is an operation that purchases marijuana from a grower and extracts resin to create packaged marijuana-infused products;

-Provisioning center, which is a commercial entity that sells marijuana to qualifying patients;

-Secure transporter, which stores and transports marijuana between facilities for a fee; and

-Safety compliance facility, which tests marijuana for contaminants and then may return it to a marijuana facility.

Existing medical marijuana facilities in Ann Arbor would be required to apply for city permits once the new ordinance goes into effect. The permits would be valid for one year.

An application fee would be part of the permit process, and the proposed ordinance says the amount would be determined a resolution of the city council.

Mayor Christopher Taylor said he hopes establishing a city ordinance for licensing for medical marijuana facilities will allow businesses to continue operating undisrupted as the new state law is implemented.

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