Legal Update: Implications of the Recently Enacted Medical Marihuana Facilities Licensing Act on Municipalities
With the recent legalization of recreational marihuana in Massachusetts, Maine, Nevada and California, the total number of states in which recreational marihuana use is legal stands at eight. Twenty states have legalized marihuana for medicinal use. While nationwide legalization is far from a foregone conclusion, with over half of the country legalizing marihuana use in some form the marihuana industry is poised to be the next big growth industry. However, in Michigan, prospective marihuana entrepreneurs are in a holding pattern as the state comes to terms with a statutory scheme plagued by gray areas.
In September 2016, in an effort aimed at resolving some of the ambiguities in the Michigan Medical Marihuana Act, Governor Rick Snyder signed three bills into law (House Bills 4209, 4827 and 4210). These bills are aimed at creating a licensing and regulatory framework for medical marihuana, which must be implemented by December 15, 2017. Currently, the Department of Licensing and Regulatory Affairs is in the beginning stages of establishing the new regulatory framework and it is no longer accepting applications or issuing licenses for marihuana facilities. In the meantime, prospective marihuana facilities must work with their local governments to procure the licenses and permits necessary to operate a marihuana facility.
Section 205 of House Bill 4209, now known as the Medical Marihuana Facilities Licensing Act, imposes a licensing mandate on municipalities (defined as a city, township or village). Specifically, Section 205 requires municipalities to adopt an ordinance authorizing any marihuana facility. Municipalities may also, through ordinances or zoning regulations, limit the type of marihuana facilities and/or the number of facilities operating within its borders. However, municipalities are prohibited from imposing regulations regarding the purity or pricing of marihuana or conflicting with statutory regulations for licensing marihuana facilities. Municipalities may also impose on marihuana facilities an annual, nonrefundable fee of up to $5,000 to help defray administrative and enforcement costs.
Within 90 days of receipt of notification that a person or entity has applied for a license to open a marihuana facility, municipalities must provide the following information to the newly created Medical Marihuana Licensing Board:
- A copy of the local ordinance authorizing the facility;
- A copy of any zoning regulations that apply to the proposed facility; and
- A description of any violation of the local ordinance or zoning regulations committed by the application if those violations relate to activities licensed under the act.
This information is exempt from disclosure under the freedom of information act.
Licenses to operate a marihuana facility are exclusive to the licensee and may only be transferred upon approval from the municipality and the Licensing Board. Failure to obtain approval is grounds for suspension or revocation of the license.
Municipalities in which marihuana facilities operate receive 25% of the funds in the newly created Medical Marihuana Excise Fund, based on the number of facilities operating in the municipality. Counties receive a greater portion. Licensees are required to submit annual financial statements to the municipality.
Matt Cross is an attorney in our Traverse City office where he focuses his practice on insurance defense, law enforcement defense and litigation, and municipal law. He may be reached at (231) 922-1888 or mcross@cmda-law.com.
CMDA Law
Recent Posts
- Jim Acho Named 2024 MiLW Leader in the Law
- Richards’ Article on the Benefits and Challenges of the Ladybird Deed Featured in Urban Aging News
- Jim Acho Guests on “SportsWise” with NFL Network’s Gabe Feldman to Break Down NCAA Lawsuit
- Important Reminder: Under the CTA, a BOIR is Required to be Filed by January 1, 2025
- Jim Acho Guest At Premier For New Detroit Lions Book
Recent Comments
Archives
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- November 2021
- October 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- July 2012
- June 2012
- May 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- June 2011
- March 2011
- February 2011
- October 2010
- August 2010
- January 2010
- January 2009
- September 2008
- June 2008
- May 2008
Categories
- 50th Anniversary
- Allan C. Vander Laan
- Appeals and Litigation
- Appeals and Litigation Articles
- Barbara M. Moore
- Business Law
- Business Law Articles
- Carol A. Smith
- Christopher G. Schultz
- Community Association & Real Estate Law Practice Group
- Community Association and Real Estate Law Articles
- Community Association Law
- Daniel W. Ferris
- Douglas Curlew
- Education Law
- Education Law Articles
- Employment and Labor Law
- Employment and Labor Law Articles
- Estate Planning and Elder Law
- Estate Planning and Elder Law Articles
- Firm News
- Gary D. Klein
- Gerald C. Davis
- Gregory A. Roberts
- Gregory R. Grant
- Haider A. Kazim
- Insurance Defense
- Insurance Defense Articles
- Isa M. Kasoga
- Jacklyn P. Paletta
- James R. Acho
- James W. Taylor II
- Jeffrey R. Clark
- Joel Ashton
- John "Jay" Gillen
- John D Gwyn
- John M. McFarland
- Joshua J. Cervantes
- Kenneth M. Gonko
- Kevin J. Campbell
- Kimberly M. Coschino
- Kristen L. Rewa
- Latest News
- Law Enforcement Defense and Litigation Articles
- Law Enforcement Litigation and Defense
- Linda Davis Friedland
- Litigation
- Margaret A. Lourdes
- Matthew C. Wayne
- Matthew W. Cross
- Michael O. Cummings
- Michelle L. Richards
- Municipal Law
- Municipal Law Articles
- News & Events for Business Law
- News & Events for Municipal Law
- News Archive
- Norman E. Richards
- Owen J. Cummings
- Patrick R. Sturdy
- Plaintiff's Personal Injury
- Plaintiff’s Personal Injury Articles
- Presentations & Articles
- Published Articles
- Ray E. Richards II
- Real Estate Law
- Robert J. Hahn
- Robert L. Blamer
- Ronald G. Acho
- Ryan D. Miller
- Sarah L. Overton
- Shane R. Nolan
- Stanley I. Okoli
- Stephen C. Johnston
- Suzanne P. Bartos
- Timothy S. Ferrand
- Uncategorized
- Utility Law
- Utility Law Articles