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(a) Marihuana Establishments Permitted. Pursuant to the MRTMA, the City of Battle Creek authorizes the operation in the City of the following marihuana adult use establishments, provided they possess a state operating license issued under the MRTMA and they comply with the additional requirements of this chapter, Chapter 1251
, Sections 23 through 31 related to Adult Use Marihuana Facilities and Establishments (Zoning), and all other applicable ordinances, laws, administrative rules, and ordinances:
(1) Marihuana grower, including Class A grower; Class B grower; Class C grower; and Excess Marihuana Grower.
(2) A marihuana processer.
(3) A marihuana secure transporter.
(4) A marihuana retailer.
(5) A marihuana safety compliance marihuana establishment.
(6) A marihuana microbusiness.
(b) Special Licenses Prohibited. Pursuant to the MRTMA, Section 6(1), the City elects to prohibit the following licensing and operation of special licenses within its boundaries to the extent it is permitted to prohibit them under the Act, which shall specifically prohibit:
(1) Designated consumption establishment license.
(2) Marihuana event organizer license.
(3) Temporary marihuana event license.
(Ord. 14-2019. Passed 10-15-19; Ord. 11-2022. Passed 11-1-22; Ord. 11-2023. Passed 10-17-23.)
(a) No person shall operate a marihuana establishment for which an annual AUME permit as provided for in this chapter has not been issued or has expired due to failure to timely renew as set out in Section 835.08
below.
(b) No person or entity that was open or operating any marihuana establishment purporting to produce, manufacture, test, transfer or transport medical marihuana or marihuana prior to the adoption of Ordinance 14-2019 by the City Commission shall be considered a lawful use or lawful nonconforming use.
(c) The AUME permit requirement in this chapter applies to all establishments that exist on the effective date of this chapter or are established after the effective date of this chapter. This includes all persons who engage or have engaged in any of the activities that are included in the definitions in the MRTMA of the types of entities that may obtain a state operating license, without regard to whether they called or call their businesses "dispensaries," "cultivation facilities," "clubs," "cooperatives," or any other similar label. A person who engaged in any of the activities that are included in the definitions in the MRTMA of the types of entities that may obtain a state operating license before the effective date of the MRTMA or before obtaining a state operating license does not have a vested right to obtain a City AUME permit.
(d) The AUME permit requirement in this chapter applies to all marihuana establishments whether operated for profit or not for profit.
(e) The AUME permit requirement in this chapter shall be in addition to any other requirements imposed by any other state or local law, including but not limited to state or local laws applicable to commercial entities performing functions similar to the functions performed by marihuana establishments.
(f) The issuance of any AUME permit pursuant to this chapter does not create an exception, defense or immunity to any person with regard to any potential criminal or civil liability the person may have under any federal or state law or city ordinance.
(g) This section does not apply to, or regulate, any protected patient or caregiver conduct pursuant to the Michigan Medical Marihuana Act of 2008.
(h) The term of the final AUME permit shall not exceed one year (except as provided below for permits issued in the month of December), and fees are not prorated. The permit year shall begin on January 1 in each year, or the date upon which the final AUME permit was approved, whichever occurs later, and shall terminate on December 31 unless earlier terminated as provided in Section 835.11
. An annual permit issued between December 1 and December 31 of any year shall expire on December 31 of the next calendar year following issuance thereof, unless terminated sooner under Section 835.11
. All permits issued pursuant to this chapter must be renewed on an annual basis. An AUME permit is automatically suspended on the date of expiration, and is subject to Section 835.08
below. To renew an existing permit the licensee shall submit an application in the same manner as is required to apply for a new permit no sooner than ninety days before the expiration date and no later than sixty days before the expiration date. An application for a permit renewal received after November 1 of each year shall be considered late and will be subject to a late fee. No renewal applications will be accepted after December 1 of each year. A new AUME permit application will be required for failure to submit a renewal application by December 1.
(Ord. 14-2019. Passed 10-15-19; Ord. 11-2023. Passed 10-17-23.)
(a) An AUME permit issued under this chapter is valid only for the location of the marihuana establishment and type of marihuana establishment that is listed on the AUME permit application, providing the marihuana establishment remains in compliance with all other requirements in this chapter and Chapter 1251.
(b) An AUME permit issued under this chapter is valid only if the permit holder also holds a valid current state operating license, and a copy of the valid current state license has been provided to the City of Battle Creek’s Cannabis Coordinator by the AUME permit holder.
(c) The revocation, suspension, and placement of restrictions by the state on a state operating license apply equally to an AUME permit issued by the City.
(d) The expiration date of the state operating license that corresponds to an AUME permit issued under this chapter constitutes the expiration date of the license, however, operation of the marihuana establishment under the expired license is permitted to the extent that operation under the expired state operating license is permitted under the MRTMA.
(e) An AUME permit issued by the City under this chapter and the State MRTMA establishment license shall be conspicuously posted in the marihuana establishment where it is easily open to public view, City officials, including BCPD and the Fire Department.
(f) Acceptance of an AUME permit from the city under this chapter constitutes consent by the permittee, owners, managers and employees to permit the City Administration or designee to conduct inspections of the marihuana establishment to ensure compliance with this chapter.
(Ord. 14-2019. Passed 10-15-19; Ord. 11-2022. Passed 11-1-22.)
(a) Application for New Annual AUME Permit. An application for a new annual AUME permit for a marihuana establishment shall be submitted in person by the applicant or their state licensed attorney to the City’s Cannabis Coordinator on a form provided by the City, which shall fulfill all of the requirements indicated on the form. An applicant shall truthfully and fully provide all of the information requested on the application, including but not limited to, the following:
(1) The name and address of the proposed marihuana establishment and any other contact information requested on the application form.
(2) The applicant's full name, business address, e-mail address and phone number and presentation of a valid, government-issued photo identification.
(3) The name and address of all owners of the real property where the proposed marihuana establishment is located.
(4) Name and address of all business managers of the marihuana establishment.
(5) A statement with respect to each person named on the application whether the person has:
A. Ever been convicted of a felony involving controlled substances as defined under the Michigan Public Health Code, M.C.L.A. 333.1101 et seq., the federal law, or the law of any other state and, if so, the date of the conviction and the law under which the person was convicted.
B. Ever been convicted of any other type of felony under the law of Michigan, the United States, or another state, and, if so, the date of the conviction and the law under which the person was convicted.
(6) Proof of an applicant's ownership or legal possession of the premises and, if the applicant is not the fee title owner, the written, notarized consent of the property owner where the marihuana establishment is proposed to be located to operate a marihuana establishment at that location.
(7) A City-issued zoning assurance letter, provided with the AUME permit application, signed by the applicant which affirms that the applicant has reviewed all applicable zoning ordinances relative to the proposed use, including Ch. 1251 and all regulations addressing site development including, but not limited to parking, setbacks, and signage.
(8) State of Michigan Department of Licensing and Regulatory Affairs document indicating approved prequalification status by the Cannabis Regulatory Agency for the applicant or applicant's entity.
(9) If the type(s) of marihuana adult use establishments under the MRTMA application consists of a marihuana grower's permit, the maximum number of plants that the applicant intends to grow. The application form for a marihuana grower's permit is the same for a Class A, Class B, Class C, or Express Grow license and one application fee for a grower's license shall apply without regard to the class of state operating license the permit application seeks. An application fee pursuant to Section 802.24 for each marihuana grower's license Class shall apply.
(10) Payment of a non-refundable application fee, which shall be established by resolution of the City Commission and set out in the fee, bond, and insurance schedule provided for in Section 802.24.
(11) AUME marihuana retailer and/or marihuana microbusiness pick list and supporting documentation, which shall be incorporated into the AUME marihuana retailer and/or marihuana microbusiness application regardless of any competing AUME permit marihuana retailer and/or marihuana microbusiness applications. Once items on the pick list have been voluntarily selected and submitted with the application, it is mandatory that those items be satisfied.
(12) If the license holder is not the on-site operator, indicate name and contract information of the on-site operator.
(b) Upon filing of the application for an AUME permit, the City’s Cannabis Coordinator shall review and evaluate the application, along with other necessary City departments. In determining whether an AUME permit should be issued, the City shall evaluate whether the application is complete.
(c) The City’s Cannabis Coordinator shall reject AUME permit marihuana retailer and/or marihuana microbusiness application(s) which selected fewer items in its pick list than a competing AUME permit marihuana retailer and/or marihuana microbusiness application(s) where each was submitted and determined to be complete during the same 24-hour period, defined as falling between 3:00 p.m. and 2:59 p.m. the following business day.
(1) The applicant of the denied application under this subsection may apply their submitted application fee from the denied application toward a new property location if submitted within ten business days after the initial application denial. If no new application is submitted within that period, a partial refund shall be provided as set out in Section 802.24 Fee, Bond and Insurance Schedule.
(d) Conditional Approval Permit. Initial approval of the new annual AUME permit application after review as set out in below Section 835.11
will result in the issuance of a 90-day Conditional Approval Permit, which authorizes the applicant to apply for and seek site plan review approval, and building/trade permits. A Conditional Approval Permit does not authorize use of a marihuana establishment. Within ninety days of issuance of the Conditional Approval Permit, the applicant shall submit proof of an approved City site plan review and building/trade permits to the City’s Cannabis Coordinator.
(1) If application for site plan approval and local permits as outlined above were made but are not obtained within ninety days, then the Conditional Approval Permit shall expire and a new permit application shall be submitted pursuant to Section 835.06
. Extensions may be approved by the City’s Cannabis Coordinator based on substantial work having been completed as determined by the City and at the request of the applicant thirty days prior to the expiration of the Conditional Approval Permit.
(2) If no site plan or building plans have been submitted for permits within the ninety days, then the Conditional Approval Permit expires, and an applicant will be required to wait thirty days before submitting a new application.
(3) If local permits expire without the work having been completed, then the Conditional Approval Permit shall expire. A new permit application may be submitted pursuant to Section 835.06
.
(4) If local permits expire without the work having been completed and an extension was not timely applied for, or was denied, then the Conditional Approval Permit shall expire. A new permit application shall be submitted pursuant to section 835.06
.
(5) In the event that the establishment does not obtain a Final AUME Permit within ninety days of issuance of a Certificate of Occupancy or ninety days from the issuance of a 90-day Conditional Approval Permit if a Certificate of Occupancy had previously issued, the 90-day Conditional Approval Permit shall expire. A new permit application may be submitted pursuant to Section 833.06
. The City Cannabis Coordinator may grant one extension for up to ninety days to obtain a Final AUME Permit and commence operations upon the receipt of a written request, submitted not later than seven days prior to the expiration date, but only upon the condition that the Applicant submitted its Step Two Final application request to the Agency for a state license within thirty days after having been granted a Certificate of Occupancy by the City, and the cause for delay rests solely with the Agency.
(Ord. 14-2019. Passed 10-15-19; Ord. 11-2022. Passed 11-1-22; Ord. 11-2023. Passed 10-17-23.)
(a) If the AUME permit applicant has successfully demonstrated compliance with all requirements included within the Conditional Approval Permit for issuance of a permit, including but not limited to all requirements of below subsection (c) and, the location conforming to all standards of the zoning district in which it is located, then the Cannabis Coordinator shall issue a final AUME permit to the applicant, or grant renewal of an existing AUME permit.
(b) An issued final AUME permit is active beginning the date of the issued permit and expires December 31 of same year except when a final AUME permit is issued during the month of December, which will expire on December 31 of the following year.
(c) The issuance of a final AUME permit under this chapter authorizes operation of the marihuana establishment only after the following additional requirements are met:
(1) The applicant has provided the Cannabis Coordinator with copies of the applicant's state operating license and the Certificate of Occupancy for the premises.
(2) The applicant has provided the Cannabis Coordinator a copy of the state approved premises security plan. The said security measures on the premises are subject to inspection and must be approved by the Battle Creek Police Department and comply with the following:
A. Fully operational security cameras shall monitor all areas of the premises as required by State Administrative Rules, including but not limited to Admin. Code R. 420.209.
B. Recordings from security cameras shall be maintained for a minimum of thirty days, except for in instances of investigation or inspection by the Agency, or the City Police Department (BCPD), in which case the AUME permittee shall retain the recordings and make them available to BCPD upon request until such time as the agency or the BCPD notifies the AUME permittee that the recordings may be destroyed.
C. The City Manager may adopt regulations implementing security measures, including but not limited to regulations on the design, location, maintenance, and access to the cameras and recordings so long as they do not conflict with state rules and regulations. City regulations shall take effect thirty days after being filed with the City Clerk unless modified or disapproved by the City Commission.
D. A monitored alarm system consistent with State Administrative Rules, including but not limited to Admin. Code R. 420.209.
E. A storage room for overnight storage of any marihuana product and cash on the premises consistent with State Administrative Rules, including but not limited to Admin. Code R. 420.212 27.
(3) The applicant has provided the Cannabis Coordinator proof that all City taxes and assessments owed by the applicant have been paid and any assessments, taxes, or liens on the real property to comprise the licensed premises and personal property located on the licensed premises are also paid.
(4) The applicant has provided the Cannabis Coordinator proof that the applicant is not in violation of any City ordinances on any other property under the applicant's ownership or control located within the City.
(d) Insurance.
(1) The applicant shall provide the City with proof of financial responsibility for liability for bodily injury in an amount not less than one hundred thousand dollars ($100,000), as well as a copy of an endorsement placed on each policy requiring ten days' notice by mail to the city before the insurer may cancel the policy for any reason:
A. Worker's compensation insurance in accordance with Michigan statutory limits and Employers Liability Insurance with a minimum limit of $100,000.00 for each accident for any employee.
B. A marihuana secure transporter shall show proof of auto insurance, vehicle registration, and registration as a commercial motor vehicle, as applicable, for any vehicles used to transport marihuana product as required by the Act.
(2) An original certificate of insurance may be provided as an initial indication of the required insurance. Applicant shall be required to continue without interruption during the term of the AUME permit the above named insurance coverages. If any of the above coverages expire by their terms during the term of a permit, the applicant shall deliver proof of renewal and/or new policies to the City Cannabis Coordinator at least ten days prior to the expiration date. Insurance companies, named insured and policy forms shall be subject to the approval of the City Insurance Loss Control Specialist or designee, within five business days. Insurance policies shall not contain endorsements or policy conditions which reduce coverage required under the terms of the AUME permit.
(Ord. 14-2019. Passed 10-15-19; Ord. 11-2022. Passed 11-1-22; Ord. 11-2023. Passed 10-17-23.)
(a) Renewal of Final AUME Permits.
(1) Only an issued AUME final permit may be renewed. Applicants seeking renewals shall file a new application pursuant to Section 835.06.
(b) Amendments.
(1) Amendment of AUME application without conditional or final AUME permit approval.
A. Prior to a decision of a conditional permit, an AUME application may be amended under any of the following circumstances:
1. Change in property ownership or property lessee/lessor name(s);
2. Clerical errors/omissions such as misspelling, wrong numbering, or other similar items in the submitted application; or
3. Any City required amendments of clarifications, clerical errors, additional entity background information, additional property information, or other relevant information required for City decision.
B. Applicants shall submit supporting documentation detailing basis for amendment and subsequent documents which amend the application.
C. Any amendments submitted as provided above shall be incorporated into the application and the amended terms shall be fully enforceable against the applicant.
(2) Non-substantive changes to approved conditional or final AUME permit:
A. After receiving an approved conditional or final AUME permit, and AUME application may be amended for any circumstance listed under subsection (b)(1)A.2.
B. Prior to receiving an approved final AUME permit, any change which will not increase the project intensity, as solely determined by the Zoning Administrator, including but not limited to: building size, number of marihuana plants, hours of operation, and type of AUME use. The Zoning Administrator's decision as to whether the change shall be permitted as not increasing the project intensity shall be considered a final determination. If the Zoning Administrator determines that such change requires the submittal of a new or amended site plan application or building/trade permits, then these items shall be mandatory and enforceable.
C. Applicants shall submit supporting documentation detailing basis for amendment and subsequent documents which amend the application.
D. Any amendments submitted as provided above shall be incorporated into the application and the amended terms shall be fully enforceable against the applicant.
(3) Substantive changes to an approved conditional or final AUME permits require the filing of a new application pursuant to Section 835.06. The following changes shall be considered "substantive," as intended by this subsection:
A. An increase in the project intensity as determined solely by the Zoning Administrator including, but not limited to: number of marihuana plants, hours of operation, or other aspects of the project which have an effect on the intensity, visual appearance, noise or odor levels, or other possible impacts to surrounding properties, public services/infrastructure.
B. Adding a new AUME use on the same property as the approved conditional or final AUME permit.
C. Lapse in the 90-day conditional permit period without having fulfilled requirements pursuant to Section 835.06(b).
D. A request to remove any item(s) selected on the submitted AUME marihuana retailer or microbusiness pick list.
(c) Transferring Approved Conditional or Final AUME Permit.
(1) The transferring of an approved conditional AUME permit which changes the listed applicant to a different entity or person is prohibited.
(2) The transferring of approved conditional or final AUME permits to another location is prohibited.
(3) The transferring of an approved final AUME permit which only changes the listed applicant to a different entity or person may be allowed with the submittal of:
A. Document consisting of a notarized and original signatures;
B. State of Michigan Licensing and Regulatory Affairs Department document indicating approval of applicant or applicant's entity of Department's Step 1: Prequalification Document Checklist; and
C. Fee as established in the fee, bond, and insurance schedule provided for in Section 802.24.
(d) Rescission of Approved Conditional or Final AUME Permit.
(1) An applicant may rescind an approved conditional or final AUME permit at any time to effectively remove such permit from the associated property.
(2) The rescission is effective as of the time and date of a City approval of a completed rescission City form.
(3) Once rescission is effective, an applicant receiving the approved rescission cannot file a new AUME application within ten business days anywhere within the City of Battle Creek.
(4) No fees paid in conjunction with the rescinded approved conditional or final AUME permits shall be refunded.
(Ord. 14-2019. Passed 10-15-19; Ord. 11-2022. Passed 11-1-22.)
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