(A) The purpose of this chapter is to implement the provisions of 2018 Initiated Law No. 1, being the Michigan Regulation and Taxation of Marihuana Act, the Michigan Medical Marihuana Act and the Michigan Marihuana Facilities Licensing Act so as to protect the public health, safety, and welfare of residents of the city by setting forth the manner in which certain marihuana establishments can be operated in the city. Further, the purpose of this chapter is to:
(1) Authorize the establishment of marihuana establishments within the city and provide standards and procedures for the review, issuance, renewal, and revocation of city issued permits for the same;
(2) Impose fees to defray and recover the cost to the city of the administrative and enforcement costs associated with marihuana establishments; and
(3) Coordinate with state laws and regulations addressing marihuana establishments.
(B) This chapter authorizes the establishment of certain adult use marihuana businesses within the city consistent with the provisions of the Michigan Regulation and Taxation of Marihuana Act, the Michigan Medical Marihuana Act and the Michigan Marihuana Facilities Licensing Act subject to the following:
(1) Use, distribution, cultivation, production, possession, and transportation of marihuana remains illegal under federal law, and marihuana remains classified as a "controlled substance" by federal law. Nothing in this chapter is intended to promote or condone the production, distribution, or possession of marihuana in violation of any applicable law. Nothing in this chapter is intended to grant immunity from any criminal prosecution under state or federal law. This chapter does not protect users of marihuana or the owners of properties on which a marihuana establishment is located from prosecution or having their property seized by federal law enforcement authorities. This chapter is to be construed to protect the public health, safety and welfare over marihuana establishments' interests. The operation of a licensed marihuana establishment in the city is a revocable privilege and not a right. Nothing in this chapter is to be construed to or shall grant a property right for an individual or business entity to engage, obtain, or have renewed a city issued permit to engage in the use, distribution, cultivation, production, possession, transportation or sale of marihuanain the city.
(2) Any individual or business entity which purports to have engaged in the use, distribution, cultivation, production, possession, transportation or sale of marihuana as a commercial enterprise in the city without obtaining the required authorization required by this chapter is deemed to be an illegally established nuisance, and as such is not entitled to legal nonconforming status under this chapter, the city zoning code, or state statutory or common law.
(3) Nothing in this chapter 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 all applicable rules and laws promulgated by the State of Michigan regarding the commercialization of marihuana. Strict compliance with all applicable state laws and regulations is deemed a requirement for the issuance or renewal of any permit issued under this chapter, and noncompliance with any applicable state law or regulation is grounds for the revocation or nonrenewal of any permit issued under the terms of this chapter.
(C) Any person or entity that accepts an authorization to operate a marihuana establishment pursuant to this chapter 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 marihuana establishment owners, operators, employees, clients or customers for a violation of state or federal laws, rules or regulations. The holder of such authorization shall, as a condition to authorization, indemnify, defend and hold harmless the city, its officers, elected officials, employees, and insurers, against all liability, claims or demands arising on account of any claim of diminution of property value by a property owner whose property is located in proximity to a licensed operating marihuana establishment, arising out of, claimed to have arisen out of, or in any manner connected with the operation of a marihuana business 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).
(D) The City Council reserves the right to amend or repeal this chapter in any manner, including, but not limited to the complete prohibition of any type of marihuana establishments or increasing or reducing the number and types of marihuana establishments authorized to operate in the city. Nothing in this chapter is to be construed to grant or grandfather any marihuana business or establishment with a vested right, license, permit or privilege for continued operations within the city.
(Ord. 209, passed 10-7-2020; Ord. 218, passed 4-4-2023)