NEWS & ANNOUNCEMENTS

CHARTER TOWNSHIP OF CALUMET, COUNTY OF HOUGHTON

STATE OF MICHIGAN

ORDINANCE NO. 47

AMENDMENT TO ORDINANCE NO. 45 TO PROVIDE FOR THE ISSUANCE OF TOWNSHIP OPERATING LICENSES TO STATE-LICENSED MARIHUANA RETAILERS

An ordinance amending Ordinance No. 45 to provide for the issuance of township operating licenses to state-licensed marihuana retailers.

Purpose

 In December 2020, the Township adopted Ordinance No. 45 authorizing the issuance of Township operating licenses to state-licensed marihuana microbusinesses, as defined by Michigan Regulation and Taxation of Marihuana Act, MCL 333.27951, et. seq. (“MRTMA”), and limiting the number of Township operating licenses to three.

Ordinance No. 45 indicated that the Township might consider the licensing of one or more of the other types of marihuana establishments after the Township and other municipalities had more experience with marihuana establishments. Having had the opportunity to observe the operations of state-licensed marihuana retailers in nearby municipalities, the Township believes that state-licensed marihuana retailers should also have the opportunity to be licensed by the Township.

The Township continues to believe that the total number of licensed marihuana establishments within the Township should be limited to three.

Ordinance No. 45 is therefore amended to read as provided in this ordinance.

THE CHARTER TOWNSHIP OF CALUMET ORDAINS:

 SECTION I

TITLE

This ordinance shall be known as and may be cited as the “Amendment to Ordinance No. 45 to Provide for the Issuance of Township Operating Licenses to State-Licensed Marihuana Retailers.”

SECTION II

ADOPTION OF THIS ORDINANCE PURSUANT TO MCL 333.27956 AS AN AMENDMENT TO ORDINANCE NO. 45

This ordinance is adopted pursuant to MCL 333.27956 and amends Ordinance No. 45 titled, “Charter Township of Calumet Ordinance Providing for the Issuance of Township Operating Licenses to State-Licensed Marihuana Microbusinesses.

SECTION III

INTENT OF THE ORDINANCE

This Ordinance authorizes issuance of Township Operating Licenses to State-Licensed Marihuana Retailers and Marihuana Microbusinesses, as defined in the Michigan Regulation and Taxation of Marihuana Act, MCL 333.27951, et. seq. (“MRTMA”), within the Township’s Manufacturing-Industrial Districts, subject to an Applicant obtaining a special use permit pursuant to the Township’s Zoning Ordinance and a Township Operating License pursuant to this ordinance and further subject to compliance with MRTMA and rules adopted by the Michigan Department of Licensing and Regulatory Affairs (“LARA”). No other type of marihuana establishment shall be licensed within the Township.

This ordinance is adopted to protect the public health, safety, and welfare. Strict compliance with all applicable state laws and regulations is deemed a requirement for the issuance or renewal of any Township Operating License issued under this ordinance, and noncompliance with any applicable state law or regulation is grounds for the revocation or nonrenewal of any Township Operating License issued under the terms of this ordinance. 

Applicants for licensing under this ordinance are advised that although the State of Michigan has recognized and authorized the use of marihuana pursuant to MRTMA and has provided for a statewide monitoring system as authorized by the administrative rules adopted by LARA, the use, distribution, cultivation, production, possession, and transportation of marihuana remains illegal under federal law and marihuana remains classified as a "controlled substance" under federal law. Nothing in this ordinance can grant or is intended to grant immunity from arrest and/or prosecution under federal law or seizure and/or forfeiture of assets as allowed by federal law.

By accepting a Township Operating License issued pursuant to this ordinance, the holder waives and releases the Charter Township of Calumet, its officers, elected officials, employees, attorneys, and agents from any liability for injuries, damages, or liabilities of any kind that result from any arrest or prosecution of Marihuana Retailer or Marihuana Microbusiness owners, operators, employees, clients or customers for a violation of state or federal laws, rules or regulations and agrees to indemnify, defend and hold harmless the Charter Township of Calumet, its officers, elected officials, employees, attorneys, agents, 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 Retailer or Marihuana Microbusiness. 

The Township Board reserves the right to amend or repeal this ordinance in any manner, including, but not limited to the complete prohibition of any type of marihuana establishment or further limiting the number and types of Marihuana Retailers and Marihuana Microbusinesses authorized to operate in the Township. 

Unless defined by this ordinance, any term used in this ordinance that is defined by MRTMA or the administrative rules promulgated by LARA implementing MRTMA shall have the definition given in MRTMA and those rules. 

SECTION IV

ORDINANCE PROVISIONS

Definitions

Applicant: A person or entity who applies for a Township Operating License to operate a Marihuana Retailer or Marihuana Microbusiness in accordance with the terms of this ordinance and the Township Zoning Ordinance.

Application Fee:  A fee to be paid by an Applicant upon application for issuance or renewal of a Township Operating License to defray the administrative costs associated with processing applications in an amount to be established by the Board of Trustees.

Compliance Certificate: An attestation by the Township Clerk that an Applicant has submitted a complete application pursuant to this ordinance, that the application has been reviewed and found to be satisfactory, and that the Applicant is eligible to receive a Township Operating License for a Marihuana Retailer or Marihuana Microbusiness upon issuance of a State License.

LARA: The Michigan Department of Licensing and Regulatory Affairs, or its successor agency.

License Fee:  An annual nonrefundable fee to defray the administrative and enforcement costs associated with Marihuana Retailers and Marihuana Microbusinesses located in the Township in an amount to be established by the Board of Trustees, not to exceed the maximum statutory amount.

Marihuana:  All parts of the plant Cannabis sativa L. or of the genus cannabis, growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds or resin, including marihuana concentrate and marihuana-infused products. For purposes of this ordinance, marihuana does not include industrial hemp.

Marihuana-Infused Product: A topical formulation, tincture, beverage, edible substance, or similar product containing any usable marihuana and other ingredients that is intended for human consumption in a manner other than smoke inhalation.

MRTMA: Michigan Regulation and Taxation of Marihuana Act, 2018 Initiated Law 1, MCL § 333.27951 et seq., as may be amended.

Marihuana Microbusiness:  A marihuana business authorized by LARA to cultivate not more than 150 marihuana plants, process and package marihuana, and sell or transfer marihuana to individuals 21 years of age and older and to a safety compliance facility, but not to other marihuana establishments.

Marihuana Retailer:  An individual, corporation, limited liability company, partnership of any type, trust, or other legal entity licensed by LARA to obtain marihuana from marihuana establishments and to sell or otherwise transfer marihuana to marihuana establishments and to individuals who are 21 years of age or older.

State License:  A license that is issued by the Department under MRTMA that allows the licensee to operate a Marihuana Retailer or Marihuana Microbusiness.

Township Operating License: The license issued pursuant to this ordinance authorizing the operation of a Marihuana Retailer or Marihuana Microbusiness in the Township.

Township Licensee: A person who holds a Township Operating License issued by the Township pursuant to this ordinance to operate a Marihuana Retailer or Marihuana Microbusiness.

Rules:  The general administrative rules promulgated and from time to time amended by the Department to implement MRTMA.

Licensing of Marihuana Retailers and Marihuana Microbusinesses

Maximum Number of Marihuana Retailers and Marihuana Microbusinesses: The combined maximum number of Marihuana Retailers and Marihuana Microbusinesses in the Township shall be three.

Section 9(4) of MRTMA provides that, “If a municipality limits the number of marihuana establishments that may be licensed in the municipality … and that limit prevents the department from issuing a state license to all applicants who meet the requirements [of Section 9(3)], the municipality shall decide among competing applications by a competitive process intended to select applicants who are best suited to operate in compliance with this act within the municipality.” 

In the event the limitation of three Marihuana Retailers and Marihuana Microbusinesses set forth in this ordinance prevents LARA from issuing a state license to all applicants who meet the requirements of Section 9(3) of MRMTA, the Township Board of Trustees shall review the competitive information submitted by each applicant, as set forth on Appendix A to this Ordinance. and select the applicants for licensure who are best suited in the Board’s judgment to operate in compliance with MRTMA within the Township. The Board shall afford all applicants the opportunity to be heard by the Board prior to making its selections, and the Board shall give each applicant at least ten (10) days prior notice of its hearing date. In making its selections, the Board may give more weight to certain factors than to other factors, in its sole discretion. The Board’s selections and the reasons for the Board’s selections among competing applicants shall be set forth in writing within thirty (30) days after completion of the hearings and shall be transmitted to LARA.

State License and Township Operating License to be Obtained and Displayed: No person shall establish or operate a Marihuana Retailer or Marihuana Microbusiness in the Township without first having obtained a State License and Township Operating License for each such Marihuana Retailer or Marihuana Microbusiness to be operated. The State License and Township Operating License shall be kept current and publicly displayed within the business. Failure to maintain or display a current State License and Township Operating License is a violation of this ordinance.

Annual Non-Refundable License Fee: There shall be an annual License Fee in an amount set by the Township Board of Trustees not to exceed the maximum statutory amount. The annual nonrefundable License fee is due and payable upon the issuance and upon the annual renewal of a Township Operating License. A separate Township Operating License is required for each location from which a Marihuana Retailer or Marihuana Microbusiness is operated. The License Fee shall be in addition to, and not in lieu of, any other fees imposed by the Township, including but not limited to, any applicable fees for site plan review, zoning review, inspections, or building permits.

Zoning Compliance Required: No Marihuana Retailer or Marihuana Microbusiness is eligible to receive a Township Operating License unless, at the time the application for the Township Operating License is submitted, the location of the proposed business operation complies with the requirements set forth in the Township’s Zoning Ordinance.

Township Operating License Application Procedure: An Applicant seeking a Township Operating License must submit an application in writing to the Township Clerk on forms provided by the Township. The application must be accompanied by the Application Fee. The application form must require the Applicant to provide the following information under penalty of perjury:

• The identity of the person presenting the Application;


• If the Applicant is an individual or sole proprietorship, the name, address, date of birth, business address, business telephone number, email address, social security number, and, if applicable, federal tax identification number of Applicant and Applicant’s spouse;


• If the Applicant is not an individual or sole proprietorship, information regarding the business entity, including, without limitation, the name and address of the entity, website address, (if any), type of business organization, proof of registration with, or a certificate of good standing from the State of Michigan, as applicable, and the federal tax identification number of the business entity;


• The physical address of the proposed Marihuana Retailer or Marihuana Microbusiness;


• A statement that the Applicant or Person associated with the Applicant is not in default to the Township for any property tax, special assessment, utility charges, fines, fees or other financial obligation owed to the Township;


• A statement that no Applicant or person associated with the Applicant is ineligible from holding a state License to operate a Marihuana Retailer or Marihuana Microbusiness; and


• The “competitive information” as set forth in Appendix A to this ordinance.

If the Township Clerk identifies a deficiency in an application, the Applicant has five business days to correct the deficiency after notification by the Township Clerk.

Denial of application:  The Township Clerk shall reject any application that does not meet the requirements of this ordinance. The Township Clerk shall reject any application that he or she believes contains any false, misleading, or incomplete information.

An Applicant whose application is rejected or denied because of missing, incomplete, erroneous, false, or misleading information, or because of a lack of submission of the full amount of the Application Fee, does not have a right to appeal the decision of the Township Clerk whose decision is final.

Issuance of Compliance Certificate:  The Township Clerk will begin to accept Township Operating License applications upon the effective date of this ordinance. The Township Clerk shall issue Compliance Certificates to Applicants whose applications are complete and in compliance with this ordinance and the Township’s Zoning Ordinance and otherwise satisfactory to the Clerk. A Compliance Certificate means that the Applicant has submitted a complete application pursuant to this ordinance, that the application has been reviewed by the Township Clerk and found to be satisfactory, and that the Applicant is eligible to receive a Township Operating License for a Marihuana Retailer or Marihuana Microbusiness upon issuance of a State License. The Applicant shall not locate or operate a Marihuana Retailer or Marihuana Microbusiness in the Township without obtaining a State License issued by LARA. A Compliance Certificate will expire and be void after one year if State approval is not diligently pursued to completion by the Applicant, or on the date that State approval is denied by a final order to the Applicant, whichever first occurs.

Within 30 days from the issuance of a Compliance Certificate, the Applicant must submit proof to the Township Clerk that the Applicant has submitted a pre-qualification application or full application with LARA for a State License. If the Applicant fails to submit such proof, then the Compliance Certificate will be canceled by the Township Clerk.  Further, if LARA issues a final determination either denying an Applicant prequalification for a state license or denying a full application for a state license, then the Compliance Certificate will be canceled by the Township Clerk. 

Compliance Certificates are not transferable to another person or entity without the submission of an application by the person or entity to whom the certificate is to be transferred and the approval of the Township Clerk.

If an Applicant has previously received a Compliance Certificate from the Township to operate a Marihuana Microbusiness, the Applicant may, upon submission of written notice to the Township Clerk, convert that Compliance Certificate to allow the Applicant to, instead, operate a Marihuana Retailer in the Township and submit a full application with LARA for a State License to operate a Marihuana Retailer.

Issuance of Township Operating License:  When an Applicant holding an unexpired and unrevoked Compliance Certificate obtains a State License for a Marihuana Retailer or Marihuana Microbusiness, Applicant shall provide proof of same to the Township Clerk. The Township Clerk shall then issue a Township Operating License to Applicant for a term of one year upon payment of the annual License Fee for the first year of operation.

Maintaining a valid State License is a condition for the issuance and maintenance of a Township Operating License and operation of a Marihuana Retailer or Marihuana Microbusiness. If an Applicant’s State License is suspended or revoked, the Applicant’s Township Operating License shall also be automatically suspended or revoked without further action by the Township Clerk.

A Township Licensee shall not operate a Marihuana Retailer or Marihuana Microbusiness at any place in the Township other than the address provided in the application on file with the Township Clerk. A Township Operating License may be transferred to a different location upon receiving written approval from the Township Clerk. In order to request approval to transfer the location of a Township Operating License, the Township Licensee must make a written request to the Township Clerk, indicating the current Township Operating License location and the new proposed Township Operating License location. Upon receiving the written request, the Township Clerk will determine whether the proposed location complies with the Zoning Ordinance and all other applicable laws, rules and regulations. No Township Operating License transfer will be approved unless the proposed location meets the standards identified in this ordinance and the Township’s Zoning Ordinance.

Township Operating License forfeiture:  In the event that a Marihuana Retailer or Marihuana Microbusiness does not commence and maintain operations within one year of issuance of a Township Operating License, the Township Operating License and first-year License Fee will be deemed forfeited and the business may not commence operations without re-applying for a new Township Operating License and paying a new Application fee, and if the application is approved, a new License Fee.

Township Operating License renewal:  A Township Operating License may be renewed on an annual basis by submission of a renewal application upon a form provided by the Township Clerk and payment of the annual License Fee. An application to renew a Township Operating License shall be filed no sooner than 90 days and at least 60 days prior to the date of its expiration. The failure to timely file for renewal is sufficient grounds to deny renewal of a Township Operating License and is not subject to appeal. A Township Operating License shall not be renewed if the Township Licensee is in default to the Township for any property tax, special assessment, utility charges, fines, fees or other financial obligation owed to the Township. Issuance of a renewal Township Operating License requires payment of the annual License Fee.

Transfer of Township Operating License: A Township Operating License is valid only for the Township Licensee named thereon and the location for which the Township Operating License is issued. Each Township Operating License is exclusive to the Township Licensee and a Township Licensee or any other person must apply for a Township Operating License with the Township Clerk before a Township Operating License is transferred, sold, or purchased. The attempted transfer, sale, or other conveyance of an interest in a Township Operating License without prior application for a Township Operating License with the Township Clerk is grounds for suspension or revocation of the existing Township Operating License.

Nonrenewal, Suspension or Revocation of Township Operating License:  The Township Clerk may, after notice and hearing, suspend, revoke or refuse to renew a Township Operating License for any of the following reasons:

• The Township Licensee is in default to the Township for any property tax, special assessment, utility charges, fines, fees or other financial obligation owed to the Township.


• The Township Licensee or an agent, manager or employee of the Township Licensee, has violated, does not meet, or has failed to comply with any of the terms, requirements, conditions or provisions of this ordinance or with any applicable state or local law or regulation;


• The Township Licensee or an agent, manager or employee of the Township Licensee has failed to comply with any special terms or conditions of its State License pursuant to an order of LARA, including those terms and conditions that were established at the time of issuance of the State License and those imposed as a result of any disciplinary proceedings held subsequent to the date of issuance of the State License;


• The Marihuana Retailer or Marihuana Microbusiness has been operated in a manner that adversely affects the local public health, safety or welfare; or


• The Township Licensee failed to timely submit all necessary documents and/or fees to renew the Township Operating License or State License.

Evidence to support a finding that a Marihuana Retailer or Marihuana Microbusiness has been operated in a manner that adversely affects the local public health, safety or welfare may include, without limitation, a pattern of drug-related criminal conduct within the premises of the Marihuana Retailer or Marihuana Microbusiness or in the immediate area surrounding the Marihuana Retailer or Marihuana Microbusiness, a continuing pattern of criminal conduct directly related to or arising from the operation of the Marihuana Retailer or Marihuana Microbusiness, or an ongoing nuisance condition emanating from or caused by the Marihuana Retailer or Marihuana Microbusiness.

Unless otherwise provided in this ordinance that a decision of the Township Clerk is final and not appealable, the Township Board of Trustees shall hear and decide questions that arise in the administration of this ordinance, including appeals of suspension and revocations of Township Operating Licenses. The concurring vote of a majority of the members of the Township Board of Trustees is necessary to reverse an order, requirement, decision, or determination of an administrative official in the application of this ordinance. The decision of the Township Board of Trustees is final.

Marihuana Retailer and Marihuana Micro-Business General Operating Requirements

The Township Licensee, manager, operator and employees of a Marihuana Retailer or Marihuana Microbusiness shall strictly comply with all LARA rules addressing security (including but not limited to an operating video surveillance system), storage of marihuana and marihuana-infused products to prevent direct customer access and use of a separate room as a point-of-sale area.

It is unlawful for the licensee, manager, operator or employees of a Marihuana Retailer or Marihuana Microbusiness to:

• Permit the sale, consumption, or use of alcoholic beverages or tobacco products on the licensed premises or prepare food or drink for direct consumption by members of the public through service on the premises;


• Sell, give, dispense or otherwise distribute marihuana, marihuana-infused products, or marihuana paraphernalia from any outdoor location on the licensed premises;


• Deliver Marihuana or Marihuana Infused Products from the seller’s location to another location within the Township or Deliver Marihuana or Marihuana Infused Products from a seller’s location to any residential location, whether within the Township or not. These prohibitions against the delivery of Marihuana or Marihuana Infused Products apply to all forms of delivery, regardless of the means or methods employed, including but not limited to postal services, courier services, personal delivery services, or any other means of direct delivery.


• Offer or distribute samples of marihuana or marihuana-infused products to a consumer free of charge;


• Permit the use or consumption of marihuana or marihuana-infused products on the licensed premises; or


• Open the Marihuana Retailer or Marihuana Microbusiness to the public at any time other than between the hours of 7:00 a.m. and 10:00 p.m. daily.

Marihuana Retailers and Marihuana Microbusinesses shall prominently display a sign near the point-of-sale area which carries the following warning:

WARNING: Marihuana use by pregnant or breastfeeding women, or by women planning to become pregnant, may result in fetal injury, preterm birth, low birth weight, or developmental problems for the child.

Signage and advertising:  All signage and advertising for a Marihuana Retailer or Marihuana Microbusiness shall comply with all applicable provisions of the Township Zoning Ordinance, other applicable Township ordinances and state laws and regulations.

SECTION V

VIOLATIONS AND PENALTIES

A violation of this ordinance is a municipal civil infraction and this ordinance shall be enforceable under the Charter Township of Calumet Municipal Penalty, Civil Infractions and Appearance Tickets Ordinance” (Ordinance No. 41).  Each day during which any violation of this ordinance continues shall be deemed a separate offense and shall be subject to penalties or sanctions as a separate offense.

Enforcement of this ordinance under Ordinance No. 41 shall be in addition to the rights of the Township to proceed at law or equity with other appropriate and proper remedies, including but not limited to bringing an action for injunctive relief to restrain, prevent, or abate any violation of this ordinance.

By applying for a Township Operating License, an Applicant agrees to pay all enforcement costs which may include all legal fees, court costs and other expenses, direct and indirect, which the Township incurs in connection with a violation of this ordinance by the Applicant.

SECTION VI

SEVERABLITY

The provisions of this ordinance are hereby declared to be severable. If any clause, sentence, word, section or provision is hereafter declared void or unenforceable for any reason by a court of competent jurisdiction, it shall not affect the remainder of such ordinance which shall continue in full force and effect.

SECTION VII

PROCEDURES AND EFFECTIVE DATE

This Ordinance No.47 will be introduced at a Township board meeting on August 25, 2023. 

Following introduction of this ordinance, the Township Clerk shall publish or post the complete text of this ordinance in the manner required by law, indicating when it shall be considered for adoption, and the Township Clerk shall file an affidavit of publication from the newspaper or an affidavit of posting in the Township ordinance records.

The ordinance shall then be considered for adoption by motion approved by the majority of the Township Board members voting, on roll call vote, at the regular meeting on September 22, 2023.

If this ordinance is adopted by motion approved by the majority of the Township Board members voting on roll call vote at the regular meeting on September 22, 2023, then the Township Clerk shall: (i) publish the complete text of this ordinance or legally proper summary of the ordinance as adopted in the manner required by law or post the complete ordinance as adopted, within 30 days of adoption; (ii) file in the Township ordinance records an affidavit of publication from the newspaper or an affidavit of posting (iii) file an attested copy of the ordinance with the Houghton County Clerk; (iv) record a complete copy of the ordinance in the Township book of ordinances within one week after publication or posting with a certificate of the Township Clerk recording how each member voted, stating the date of publication or posting, and stating the name of the publishing newspaper (if applicable), and the date of filing.

The Township Supervisor and Township Clerk shall authenticate the record by their official signatures on the record.

First Reading (Date of Introduction):                                                August 25, 2023

Publication or Posting of Introduced Ordinance:                          ___________, 2023

Date of Adoption (Following Publication or Posting):                 ___________, 2023

Publication or Posting of Adopted Ordinance:                             ___________, 2023

Effective Date:                                                                          ___________, 2023

_____________________________ Charter Township of Calumet Robin Hicks, Clerk 25880 Red Jacket Road Calumet, MI 49913 Tel: (906) 337-2410

_____________________________ Charter Township of Calumet Timothy Gasperich, Supervisor 25880 Red Jacket Road Calumet, MI 49913 Tel: (906) 337-2410

 

APPENDIX A

Competitive Information to Be Provided by Applicants for Township Operating Licenses

Each applicant shall submit a business plan which contains, but is not limited to, the following:

1. The applicant’s experience in operating other similarly permitted or licensed businesses and the applicant’s general business management experience;


2. An estimate of the number and type of jobs that the marihuana establishment is expected to create and the amount and type of compensation expected to be paid for such jobs;


3. The applicant’s planned tangible capital investment in the Township;


4. An explanation of the economic benefits to the Township and job creation, if any, to be achieved through the award of a municipal license, with supporting factual data;


5. The financial structure and financing of the proposed marihuana establishment; and


6. Any Community outreach/education plans and strategy.

Each applicant shall also set forth the following:

1. Whether the applicant or any shareholder, director, officer, manager, member or partner of the applicant has been convicted of a criminal offense under the laws of any jurisdiction, either felony or misdemeanor (but not including traffic violations that are only civil infractions), and if so, describing the dates and details of all convictions; and


2. Whether the applicant or any shareholder, director, officer, manager, member or partner of the applicant has been found to be in violation of any federal, state, or local business regulations, and if so, describing the dates and details of all violations.