ZONING TOPIC: MARIHUANA PREPARING COMMUNITIES FOR NEW LEGISLATION REGARDING Marihuana – Medical & Recreational
Why Examine This Issue? Recent legislative changes in Michigan’s marihuana laws are prompting communities to evaluate whether or not to permit marihuana establishments. Laws are e being ng updat ated ed freque uent ntly. Marihuana laws in Michigan • Michigan Medical Marihuana Act (MMMA) – 2008 • Initiated Act 1 of 2008 (ballot measure approved by Michigan voters) • Medical Marihuana Facility Licensing Act (MMFLA) – 2016 • Public Acts 281, 282, and 283 of 2016 • Michigan Regulation & Taxation of Marihuana Act (MRTMA) – 2018 • Initiated Law 1 of 2018 2
Marihuana Definitions • Mari arihu huan ana (le lega gal term erm) or or Mari arijua uana na (commo mmon term erm): the plant Cannabis sativa L. with delta-9-THC concentrations above 0.3%. Includes products made from the marijuana plant, but excludes stalks, products made from the stalks, and some products made from seeds. • Ind ndus ustri rial al Hem emp: the plant Cannabis sativa L. with delta-9-THC concentrations below 0.3%. Includes products made from the industrial hemp plant. • CB CBD (Cannabidiol idiol): a substance derived from cannabis plants that does not have psychoactive effects. 3
Medical Marihuana Michigan Medical Marihuana Act (MMMA), November 2008 • Physicians are allowed to prescribe marihuana to registered patients upon diagnosis of certain medical conditions. • Michigan Department of Community Health established an identification card system for qualified patients and caregivers (small-scale growers). • Allows permitted individuals (caregivers) to grow limited amounts of marihuana for qualifying patients following specific regulations (up to 12 plants per patient, serving up to 5 patients). Certified patients may grow up to 12 plants for their personal use. • Accommodated small-scale grow operations for medical purposes. • Treats grow operations like other uses—zoning may not entirely exclude them. Dispensaries were not explicitly authorized. 4
Medical Marihuana Medical Marihuana Facility Licensing Act (MMFLA), 2016 On September 21, 2016 Governor Synder signed three bills that created the Medical Marihuana Facility Licensing Act (MMFLA) that expanded the types of medical marihuana activities permitted under state law to include: • Growers (commercial-scale operations): Class A, B and C • Processors (resins, edibles, etc.) • Transporters (secure transportation) • Safety Compliance Facilities (testing labs) • Provisioning Centers (dispensaries) 5
More on MMFLA (Medical) • The state has a seed-to-sale tracking system to ensure compliance and taxability (Public Act 282) that is shared with local law enforcement. • The Marihuana Regulatory Agency (MRA) within LARA issues licenses for newly permitted activities. Administrative rules for “Medical Marihuana Facilities” were effective November 27, 2018. • Medical Marihuana Facilities applicants do not apply directly to municipalities—they must approach the state first, which provides notice of application to the community. 6
More on MMFLA (Medical) • A licensed provisioning center may not allow a physician to conduct a medical examination or issue a medical certification document on their licensed premises to obtain a registry identification card. • Individuals should apply directly with the MMMP • The law provides that communities shall take action via ordinance to allow any of the permitted licensed facilities; if no action taken, the community does not permit such facilities. 7
More on MMFLA (Medical) • A Marihuana Grower is licensed to cultivate, dry, trim, or cure and package marihuana for sale to a processor or provisioning center. A Grower cannot be a registered primary caregiver. • Class A: 500 marihuana plants • Class B – 1,000 marihuana plants • Class C – 1,500 marihuana plants • Applicant, and each investor in the grower, must not have an interest in a secure transporter or safety compliance facility. • Must employ an individual with a minimum of 2 years’ experience as a caregiver (This restriction ends after December 31, 2021) • The licensee must not be an active caregiver and must not employ an active caregiver. • Cultivation must occur in industrial or agricultural zoned areas, or in unzoned areas that meet local ordinance requirements. 8
Licensed MMFLA Facilities in Michigan 09/10/19 https://www.michigan.gov/lara/0,4601,7-154-89334_79571_78089---,00.html 9
MMFLA (Medical) • In Oakland County, the following communities have opted- in with ordinances to permit some facilities licensed through the MMFLA (through 8/30/2019): • Ferndale • Hazel Park • Orion Charter Township • Pontiac • Walled Lake • These communities permit growers, processors, provisioning centers, safety compliance facilities and secure transporters. • Provisioning centers are capped at 3 for Ferndale, Hazel Park and Walled Lake. Orion Township does not permit provisioning centers. 09/10/19 10
MMFLA (Medical) • Revenue Implications • State law (MMFLA – Medical) allows communities to charge up to $5,000 to cover the cost of enforcement and administrating the law (actual costs must be demonstrated) • Currently there is a 3% tax on gross retail receipts in addition to the 6% sales tax at provisioning center on all products sold. • This will be repealed at the end of this year to comply with the MRTMA (Recreational facilities). 09/10/19 11
Recreational Marihuana Michigan Regulation and Taxation of Marihuana Act (MRTMA) November 2018 ballot proposal permits the recreational use and possession of marihuana for people 21 and older and will permit the following facilities following the establishment of licensing rules by the State : • Growers (commercial-scale operations) • Processors (resins, edibles, etc.) • Transporters (secure transportation) • Safety Compliance Facilities (testing labs) • Provisioning Centers (dispensaries) • Mic Microbusi siness ss (c (cul ultivation of le less t ss tha han n 150 p pla lants) s) – Ne New • This law requir uires communit munitie ies to take a actio ion b n by ordina inanc nce t to prohib hibit it one or more facilit ilitie ies. 12
Recreational Marihuana • What is a Microbusiness? In Michigan, a microbusiness license allows a person or company to: • Grow up to 150 cannabis plants, • Process cannabis into concentrates, edibles, or other infused products, • Package the finished products, and • Sell to adults who are over the age of 21. A microbusiness cannot sell or transfer any products to any other adult-use establishments. 13
Recreational Marihuana • Rules issued by the State of Michigan on July 3, 2019 (64 pages) • Note: the state is still required to establish a plan that promotes and encourages participation in the marihuana industry by people from communities that have been disproportionately impacted by marihuana prohibition and enforcement and to positively impact those communities. • State is accepting applications on Nov. 1. • Communities without ordinances taking action on facilities permitted by state law will be considered by the state to permit all types available for license. 14
Recreational Marihuana • The rules identified three new categories of licenses will be available that will also require local approval: • Marijuana event organizer • Temporary marijuana events, such as Cannabis Cup competitions, where cannabis can be sold and consumed. • Designated Consumption Establishments [DCE], or Social Clubs, where people can gather to use marijuana, but where nothing else can be sold, such as coffee or snacks. 15
Recreational Marihuana • The new licensing type ‘Marijuana Event Organizer’ allows anyone who receives this license the ability to apply for a Temporary Marijuana Event license. The license for event organizers is valid for one year. • Unlike many of the establishment licenses available under the MRTMA, there are no specific requirements to become a Marihuana Event Organizer or Temporary Marihuana Event licensee. 16
Recreational Marihuana • Temporary marijuana events, such as Cannabis Cup competitions, where cannabis can be sold and consumed. • A state license held by a marihuana event organizer for an event where the onsite sale or consumption of marihuana products, or both, are authorized at the location indicated on the state license during the dates indicated on the state license. 17
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