(a) No person shall operate a marihuana facility within the City without a valid marihuana facility license issued by the City pursuant to the provisions of this chapter, and state law.
(b) The license requirement in this chapter applies to all facilities whether operated for profit or not for profit.
(c) Every applicant for a license to operate a marihuana facility shall file an application in the Clerk's office upon a form provided by the City. The information required for the application shall not impose qualifications for the issuance of a medical/ adult-use (recreational) marihuana establishment license that conflict with the MMFLA, MRTMA, or rules promulgated by the Cannabis Regulatory Agency ("CRA"). A complete application for a license required under this chapter shall be made under oath and shall include all of the following information and any required attachments listed on the form:
(1) Business information including the name, physical address and parcel number(s), zoning district, mailing address if different from the physical address, phone number, building area, number of employees, and stated hours of operation.
(2) Applicant information including the name, address, phone number, email, and date of birth for highest level official or employee of the establishment to serve as the City's point of contact. This includes a copy of the applicant's state or federally issued photo identification and the applicant's State of Michigan Prequalification Status Letter.
(3) Operator information, if different from the applicant; the applicant information shall be provided for the individual(s) responsible for day-to-day operations.
(4) License information concerning if the applicant and/or operator has been denied an application or license for a marihuana establishment in any other jurisdiction and the reasons why, or if the applicant and/or operator has had a marihuana establishment license suspended or revoked in any other jurisdiction and the reasons why, and the subsequent business activity or occupation of the applicant and/or operator subsequent to such action of suspension or revocation.
(5) Property owner information including the name, primary residence address, phone number, real property interest in the medical/adult-use (recreational) marihuana establishment, and all tenants and their legal interest described in detail. This includes proof of ownership or a copy of the lease. If the premises is to be purchased by the applicant, proof of an executed purchase agreement contingent on approval for desired use. If the premises are leased, written permission from the owner of the premises for the medical/ adult-use (recreational) marihuana establishment shall be included.
(6) Facility information including the status of an alarm system with the alarm company name and contact information included. Required facility information includes the following:
A. Proof of insurance for fire damage in the amount of the value of the premises and liability insurance with the minimum limits of five hundred thousand dollars ($500,000), listing the City as an additional insured.
B. Description of storage facilities for all marihuana to be stored on site.
C. Description of security plan for the facility including, but not limited to, lighting, alarms, barriers, recording and monitoring devices, and security guard arrangements.
D. Copy of special use permit application submitted in accordance with the Zoning Ordinance.
E. A list of any Material Safety Data Sheets for all nutrients, pesticides, and other chemicals proposed for use in the facility.
F. Description and plan of all equipment and methods proposed to stop any impact to adjacent uses, including enforceable assurances that no odor will be detectable from outside of the establishment property.
G. A plan for the disposal of any marihuana and related byproducts proposed to be used as the establishment.
H. Statement providing information regarding any other marihuana establishment/facility licenses that the applicant and/or operator is authorized to operate in any other jurisdiction within the state, or another state, and the applicant's involvement with each establishment/facility.
(7) Proof of insurance policy.
A. Proof of an insurance policy covering each license and naming the City, its elected and appointed officials, employees, and agents as additional insured parties, available for the payment of any damages arising out of an act or omission of the applicant or its stakeholders, agents, employees, or subcontractors, in the amount of:
1. At least one million dollars ($1,000,000) for property damage;
2. At least one million dollars ($1,000,000) for injury to one person; and
3. At least two million dollars ($2,000,000) for injury to two or more persons resulting from the same occurrence.
B. The insurance policy underwriter must have a minimum A.M. Best Company insurance ranking of B+, consistent with state law. The policy shall provide that the City shall be notified by the insurance carrier thirty days in advance of any cancellation. The insurer must be licensed in the State of Michigan.
(8) Proof of a surety bond in the amount of fifty thousand dollars ($50,000) with the City listed as the obligee to guarantee performance by applicant of the terms, conditions and obligations of this chapter in a manner and surety approved by the City Attorney; or, in the creation of an escrow account as follows:
A. The account must be provided by a state or federally regulated financial institution or other financial institution;
B. And the account must be for the benefit of the City to guarantee performance by licensee in compliance with this chapter and applicable law; and
C. The account must be in the amount of twenty thousand dollars ($20,000) and in a form prescribed by the City Attorney.
(9) Oath of application provided on the application form.
(10) Release of liability, indemnification, and waiver provided on the application form.
(11) Applications shall contain a clause requiring each applicant granted a license under this chapter to indemnify and hold harmless the City, its officers, agents, employees and servants from all claims, suits or actions of every name, kind and description, brought by the applicant for, or on account of damages resulting from litigation, pending, current or future, due to the denial or revocation of a license granted hereunder or any other loss or cost, including but not limited to that caused by the concurrent active or passive negligence of the City, its officers, agents, employees or servants, resulting from granting or denial of a license under this chapter.
(d) Applications to operate any marihuana facility shall include a photocopy of the "State of Michigan Prequalification Status Letter." Any application delivered to the City without the aforementioned prequalification status letter will be deemed incomplete and shall be rejected. Any delay due to the filing of an incomplete application shall be deemed the fault of the applicant and not the City.
(e) Upon an applicant's completion of said form and furnishing of all required information and documentation, City staff shall receive the application and assign it a unique application identifier based on the date and time of receipt. The City staff shall act to approve or deny an application as fully complete no later than five business days from the date the application was received.
(f) Applicant's receipt of a conditional license from the City shall provide for reasonable time, but not more than twelve months, to secure any and all subsequent and/or collateral permits as required by the state and/or City. Any applicant with a conditional license that has not completed every task as required by the state and/or the City, twelve months after receipt of the conditional license from the City will result in revocation of applicant's City issued conditional license and denial of license.
(1) An extension of time may be granted upon the applicant's written request and showing of good cause for delay. A request for an extension of time shall also include the estimated time to remedy the delay. Any extension of time shall be at the sole discretion of the City.
(g) Within twenty business days from the applicant submitting proof of obtaining all other required permits and approvals and payment of the license fee, City staff shall approve or deny the marihuana facility license.
(h) Maintaining a valid marihuana facility license issued by the state is a condition for the issuance and maintenance of a marihuana facility license under this chapter and continued operation of any marihuana facility.
(i) A marihuana facility license issued under this chapter is exclusive to the licensee and facility location and may be transferable or relocated, if all of the following are met:
(1) The licensee submits to the City Clerk a written request to transfer license or relocate indicating the current licensee/location and the proposed licensee/location;
(2) The proposed location/proposed licensee meet(s) all of the conditions for obtaining a license under this chapter;
(3) Proposed licensee or current licensee with new location delivers the application fee, in full, as required by Section 860.04(d);
(4) Proposed licensee or current licensee with new location submits a complete license application as required by this chapter; and
(5) As soon as reasonably possible, after the City Clerk is in receipt of the aforementioned items, licensee's request to transfer a license issued under this chapter to a different location, or individual or entity shall be reviewed by Council. At the sole discretion and satisfaction of the Council, the transfer shall be approved by resolution. After Council's resolution granting the approval, transfer or relocation will not be completed until all state requirements are fulfilled.
The attempted transfer, sale, or other conveyance of an interest in a license without resolution approving transfer by Council is grounds for suspension or revocation of the license.
(Ord. 366. Passed 9-1-22.)