City Commission Packet 10-09-2017

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                           CITY OF MUSKEGON
                     CITY COMMISSION WORKSESSION

                           Monday, October 9, 2017
                                  5:30 p.m.
                          City Commission Chambers

                                   AGENDA



1. Muskegon County Health Project – Presentation regarding events

2. BID Discussion

3. Michigan’s Medical Marihuana Licensing Facilities Act

4. Any Other Business

5. Adjournment




     CRD IMMEDIATELY FOLLOWING
                               CITY OF MUSKEGON
                           MUSKEGON COUNTY, MICHIGAN
                               ORDINANCE NO. ____



THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:


    1. Chapter 34, Article IV of the Code of Ordinances of the City of Muskegon,
       Michigan, Sections 34-201 through 34-208 are adopted as follows:

    Sec. 34-201          Purpose and Intent.

        It is the intent of this ordinance to give effect to the intent of the Medical
    Marihuana Facilities Licensing Act, PA 281 of 2016, MCL 333.27101, et seq, (the
    MMFLA), and not to determine and establish an altered policy with regard to medical
    marihuana. It is the intent of Muskegon City Code Sections 34-101 through 34- ___
    to give effect to the intent of the Michigan Medical Marihuana Act, Initiated Act 1 of
    2008, MCL 333.26421, et seq., (the MMMA) as approved by the electors, The
    purpose of this ordinance is to serve and protect the health, safety and welfare of the
    general public and establish a set of rules and regulations which are fair and equitable
    for those interested in establishing a Marihuana Facility pursuant to the MMFLA.

    Section 34-202       Definitions.

    Applicant means a person who applies for a license under this section. If an entity
    applies for a license, the term includes an officer, director, managerial employee or
    has a direct or indirect ownership interest in the applicant.

    Grower means an MMFLA licensee that is a commercial entity located in this state
    that cultivates, dries, trims, cures or packages marihuana for sale to a Processor or
    Provisioning Center.

    Marihuana Facility means a location at which a license holder is licensed to operate
    under the MMFLA.

    Marihuana-infused product means a topical formulation, tincture, beverage, edible
    substance, or similar product containing any usable marihuana that is intended for
    human consumption in a manner other than smoke inhalation.

    MMFLA means the Medical Marihuana Facilities Licensing Act, PA 281 of 2016,
    MCL 333.27101, et seq.




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    MMMA means the Michigan Medical Marihuana Act, Initiated act 1 of 2008, MCL
    333.26421, et seq.

    MMMA Caregiver Facility means any building(s) or structure(s) located on non-
    residential property that is utilized by one or more than one primary caregiver
    engaged in the medical use of marihuana pursuant to the MMMA.

    Permit means a permit issued by the City under this section.

    Primary caregiver or caregiver means a person as defined by the MMMA.

    Processor means an MMFLA licensee that is a commercial entity located in this state
    that purchases marihuana from a Grower and that extracts resin from the marihuana
    or creates a marihuana-infused product for sale and transfer in package form to a
    Provisioning Center.

    Provisioning Center means an MMFLA licensee that is a commercial entity located
    in this state that purchases marihuana from a Grower or Processor and sells, supplies,
    or provides marihuana to registered qualify patients, directly or through the patients’
    registered primary caregivers. Provisioning Center includes any commercial property
    where marihuana is sold at retail to registered qualifying patients or registered
    primary caregivers. A noncommercial location used by a primary caregiver to assist a
    qualifying patient connected to the caregiver through the department’s marihuana
    registration process in accordance with the MMMA is not a Provisioning Center for
    purposes of the MMFLA or this section.

    Qualifying patient or patient means a person defined by the MMMA.

    Registry Identification Card means the document as defined by the MMMA.

    Safety Compliance Facility means an MMFLA licensee that is a commercial entity
    that receives marihuana from a Marihuana Facility or registered primary caregiver,
    tests it for contaminants and for tetrahydrocannabinol and other cannabinoids, returns
    the test results, and may return the marihuana to the Marihuana Facility.

    Secure Transporter means an MMFLA licensee that is a commercial entity located in
    this state that transports marihuana, with or without storage, between Marihuana
    Facilities for a fee.

    State operating license means a license that is issued under the MMFLA that allows
    the licensee to operate as a Marihuana Facility.

    All other terms used in this section have the same definitions ascribed to them in the
    MMFLA or MMMA.




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    Sec. 34-203          MMFLA Opt-In Provision

    Pursuant to Section 205(1) of the MMFLA, the City will authorize Permits for the
    following types of Marihuana Facilities: Growers (Class A only); Processors;
    Provisioning Centers; Safety Compliance Facilities; and Secure Transporters.

    Sec. 34-204          Permit Required for MMFLA Activity.

        (1)     Any person or entity that wishes to operate as a Marihuana Facility in the
    City shall obtain a Permit and must obtain a State Operating License prior to opening
    or operating.

        (2)     The application and inspection fee for the Permit required by this section
    shall be as set from time to time by the City by resolution.

        (3)      In addition to an annual reapplication and inspection fee, the City may
    assess an annual fee of no more to $5,000.00 to help defray the administrative and
    enforcement costs associated with the operation of the Marihuana Facilities operating
    in the City.

        (4)     No permit issued under this section shall be transferable.

        (5)     All Permits issued under this section shall be renewed annually and
    subject to annual inspection and renewal fees as set from time to time by the City by
    resolution.

       (6)     The City may limit the number of Permits issued under this section, and
    may revise this limit from time to time.

        (7)     A person or entity that receives a Permit under this section shall display its
    Permit and, when issued, its State Medical Marihuana Facility License in plain view
    clearly visible to City officials and State Medical Marihuana Licensing Board
    authorized agents.

        (8)    No person or entity that opened or operated a facility doing business or
    purporting to do business as a Marihuana Facility prior to the adoption of this
    ordinance shall be considered a lawful use.

    Sec. 34-205          MMFLA Location Requirements.

       (1)      Growers (Class A only), Processors, Provisioning Centers, Safety
    Compliance Facilities, and Secure Transporters are permitted in those zones and
    subject to requirements provided for in the City’s Zoning Ordinance.

       (2)    The Marihuana Facility shall meet all applicable written and duly
    promulgated standards of the City and, prior to opening, Applicants shall demonstrate


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    to the City that the location meets the rules and regulations promulgated by the State
    Medical Marihuana Facilities Licensing Board.

    Sec. 34-206          Application Procedure.

        (1)     All Applicants for Permits required by this section shall file an application
    with the Clerk. This application shall be signed by the Applicant if an individual, or
    by all partners if a partnership, by a managing member if a limited liability company,
    or by the president of a corporation.

       (2) The Applicant may be requested to provide any information required by the
    MMFLA and any other information deemed by the City to be required for the
    consideration of a Permit.

        (3)    The Permit shall be approved if the Applicant meets all City requirements
    unless a due diligence investigation discloses tangible evidence that the conduct of
    the Applicant’s business would pose a substantial threat to the public health, safety,
    or general welfare.

    Sec. 34-207          Permit Revocation and Review.

       (1)      A Permit granted under this section may be revoked or not renewed for
    any of the following reasons:

                (a)    Any fraud or misrepresentations contained in the Permit
                application;

                (b)      Any knowing violation of this ordinance;

                (c)      Loss of the Applicant’s State Medical Marihuana Facility License;

                (d)     Failure of the Applicant to obtain a State Medical Marihuana
                Facility License within a reasonable time after obtaining a Permit under
                this section; or

                (e)     Conducting business in an unlawful manner or in such a way as to
                constitute a menace to the health, safety, or general welfare of the public.

                (f)     The violation of any of the conditions of issuance or continuation
                of a certificate of registration.

                (g)    Fraud, misrepresentation or any false statement made in the
                operation of the business.

                (h)   Failure to pay personal property taxes, or timely file
                documentation or returns required for such taxes.


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                 (i)     Failure to pay city income taxes, failure to withhold city income
                 tax from employees, failure to remit to the City withheld city income
                 taxes, or timely file documentation or returns required for such taxes.

                 (j)     Failure to pay any outstanding amounts owed the city (such as fees
                 for inspections or property services, water or sewer bills, municipal civil
                 infraction fines applicable to the business or its premises, current special
                 assessment, installments, etc.).

                 (k)    Failure to pay registration fees imposed pursuant to this chapter
                 and resolution of the city commission.

                 (l)    Failure or inability of an applicant to meet and satisfy any of the
                 requirements and provisions of this chapter.

                 (m)    Failure to allow inspection of the business premises or hazardous
                 material storage records at a reasonable time..

2.      This Ordinance is to become effective ten (10) days after adoption.


Ayes:

Nays:

First Reading:

Second Reading:


                                         CERTIFICATE

        The undersigned, being the duly qualified Clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the ____ day of
_______________, 2017, at which meeting a quorum was present and remained
throughout, and that the meeting was conducted and public notice was given pursuant to
and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as amended,
and that minutes were kept and will be or have been made available as required thereby.

Date:_______________________, 2017


                                          ________________________________
                                          Ann Marie Meisch, MMC

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                                          City Clerk


Publish:        Notice of Adoption to be published once within ten (10) days of final
adoption.




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                                      CITY OF MUSKEGON
                                     NOTICE OF ADOPTION

TO: ALL PERSONS INTERESTED


        Please take notice that on ___________________, 2017, the City Commission of
the City of Muskegon amended Chapter____________, Article ___________ of the
Muskegon City Code, summarized as follows:

    1. Section __________ is amended to provide_____________.

    2. Section ____________ is amended to add ______________.


       Copies of the ordinance may be viewed and purchased at reasonable cost at the
Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan,
during regular business hours.

       This ordinance amendment is effective ten (10) days from the date of this
publication.

Published: _________________, 2017                             CITY OF MUSKEGON

                                                               By________________________
                                                                 Ann Marie Meisch, MMC
                                                                 City Clerk

------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE




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SECTION 2330: MEDICAL MARIHUANA FACILITIES OVERLAY DISTRICT

A Medical Marihuana Facilities Overlay District is hereby created as outlined in Figure
23-2. Within said overlay district only, Medical Marihuana Facilities to the extent
licensed pursuant to City Code Sections 34-201 through 34-208 are permitted.




Figure 23-2



                                                                                          1
MEDICAL MARIHUANA FACILITIES OVERLAY DISTRICT




                                                2

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