Amendment to the Kalamazoo City Charter

City Commission to Enact Medical Marihuana Facilities Licensing Ordinances

SECTION 200.
(a) The purpose of this provision is to implement the goal and intent of PA 281 of 2016,
the Michigan Medical Marihuana Facilities Licensing Act, MCL 333.27101, et seq.
(b) The City Commission shall enact an ordinance to amend Sections 4.1 and 12.3 of
the City of Kalamazoo Zoning Ordinance regarding the location of medical marihuana
facilities, to read as follows:

CITY OF KALAMAZOO, MICHIGAN

ORDINANCE NO. ________________

AN ORDINANCE TO AMEND SECTIONS 4.1 AND 12.3 OF THE CITY OF

KALAMAZOO ZONING ORDINANCE REGARDING THE LOCATION OF
MEDICAL MARIHUANA FACILITIES

THE CITY OF KALAMAZOO ORDAINS:

Section 1. Section 4.1, Use Table, of the City of Kalamazoo Zoning

Ordinance is amended to add the following types of medical marihuana
facilities as permitted uses and/or special uses in the following zoning districts:

Grower: including Class A, Class B and Class C growers: Permitted Use in

the M-2, General Manufacturing District.

Processors: Permitted Use in the M-1, Limited Manufacturing District and in

the M-2, General Manufacturing District.

Safety Testing Facility: Permitted Use in the CBTR, Business, Technology and
Research District, in the M-1, Limited Manufacturing District and in the M-2,
General Manufacturing District.

Secure Transporter: Permitted Use in the M-1, Limited Manufacturing District

and in the M-2, General Manufacturing District.

Provisioning Center: Permitted Use in the CC, Community Commercial District,

Permitted Use in the M-1, Limited Manufacturing District, Permitted Use in the
M-2, General Manufacturing District, and Special Land Use in the CCBD,
Central Business District.

Section 2. Section 12.3, Definitions and Use Categories, of the City

of Kalamazoo Zoning Ordinance is amended to add the following definitions:

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GROWER A licensee that is a commercial entity located in this state that
cultivates, dries, trims, or cures and packages marihuana for sale to a
Processor or Provisioning Center.
(a) A Class A Grower is a licensed grower who is authorized to grow not
more than 500 marihuana plants.
(b) A Class B Grower is a licensed grower who is authorized to grow not
more than 1,000 marihuana plants.
(c) A Class C Grower is a licensed grower who is authorized to grow not
more than 1,500 marihuana plants.
MARIHUANA FACILITY A location at which a license holder is licensed to
operate under the M e d i c a l M a r i h u a n a F a c i l i t i e s L i c e n s i n g Act,
PA 281 of 2016.
MARIHUANA INFUSED PRODUCT 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.
PROCESSOR A 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 A 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 qualifying 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 Michigan Medical Marihuana Act,
2008 IL 1, MCL 333.26421 to 333.26430, is not a Provisioning Center for
purposes of the Act or this Chapter.
SAFETY COMPLIANCE FACILITY A 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.

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 SECURE TRANSPORTER A licensee that is a commercial entity located in
this state that stores marihuana and transports marihuana between Marihuana
Facilities for a fee.
STATE OPERATING LICENSE A license that is issued pursuant to the
Medical Marihuana Facilities Licensing Act, PA 281 of 2016, that allows the
licensee to operate as Marihuana Facilities.
Section 3. Repealer.

All former ordinances or parts of ordinances conflicting or inconsistent

with the provisions of this ordinance are repealed.

Section 4. Severability.

If any section, subsection, sentence, clause, phrase or portion of this

ordinance is for any reason held invalid or unconstitutional by any Court of
competent jurisdiction, said portion shall be deemed a separate, distinct and
independent provision and such holding shall not affect the validity of the
remaining portions of this ordinance.

Section 5. Effective Date.

Pursuant to Section 13(a) of the City Charter, this ordinance shall take
effect from and after 10 days from the date of its passage.

(c) The City Commission shall enact an ordinance to add a new Chapter 47 of the City
Code to read as follows:
CITY OF KALAMAZOO
ORDINANCE NO. ________________

AN ORDINANCE TO ENACT A NEW CHAPTER 47 OF THE KALAMAZOO

CITY CODE, MEDICAL MARIHUANA FACILITIES LICENSING
ORDINANCE

THE CITY OF KALAMAZOO ORDAINS:

Section 1. This ordinance is enacted pursuant to the authority set forth in

PA 281 of 2016 to amend the Code of the City of Kalamazoo to allow for the
establishment and permitting of medical marihuana facilities in the City of
Kalamazoo; to authorize the type and numbers of medical marihuana facilities
provided in the City; to provide permit application procedures, requirements
and standards for review; to provide a permit revocation procedure; to provide
for collection of fees; to require annual permit review and reissuance; and to
repeal all ordinances or parts of ordinances in conflict herewith.

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Section 2. A new Chapter 47 is enacted to read as follows:

CHAPTER 47
MEDICAL MARIHUANA FACILITIES LICENSING ORDINANCE

47-1 Title. This Ordinance creates Chapter 47 of the Kalamazoo City Code
and shall be entitled Medical Marihuana Facilities Licensing Ordinance.

47-2 Purpose.

The City finds that it is in the public interest to allow the permitting of state-
licensed medical marihuana facilities within its boundaries pursuant to PA 281
of 2016, the Medical Marihuana Facilities Licensing Act, MCLA 333.27101, et
seq. and to define the types and numbers of facilities permitted in the City. It is
the intention herein to promote the safe, regulated manufacturing, production,
and sale by state-licensed facilities of medical marihuana and to ensure the
safe access to medical marihuana for the City's patients; to protect the health,
safety, and general welfare of the residents of the City by minimizing unsafe
and unregulated medical marihuana production and sale; and to establish
standards and procedures by which the establishment, operation and
maintenance of Medical Marihuana Facilities shall be governed.
47-3 Conflict.
Nothing in this ordinance shall be construed in such a manner as to conflict
with the existing City of Kalamazoo Ordinances except as otherwise stated
herein.

47-4 Definitions.
A. As used in this Chapter, the following terms shall have the indicated
meanings unless the context clearly indicates or requires a different meaning:

(1) "Act" means PA 281 of 2016, the Medical Marihuana Facilities

Licensing Act.
(2) "Applicant" means a person who applies for a license under this article.
If an entity applies for a license, the term includes an officer, director,
or managerial employee of the entity when appropriate.
(3) "Grower" means a licensee that is a commercial entity located in this
state that cultivates, dries, trims, or cures and packages marihuana for
sale to a Processor or Provisioning Center.
(a) A Class A Grower is a licensed grower who is authorized to grow
not more than 500 marihuana plants.
(b) A Class B Grower is a licensed grower who is authorized to grow
not more than 1,000 marihuana plants.
(c) A Class C Grower is a licensed grower who is authorized to grow
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 not more than 1,500 marihuana plants.
(4) "Marihuana Facility" means a location at which a license holder is
licensed to operate under the Act.
(5) "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.
(6) "Permit" means a permit issued by the City under this chapter.
(7) Permittee means a person or entity that is granted a permit for
operation of Medical Marihuana Facility as authorized under this
Chapter.
(8) "Processor" means a 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.
(9) "Provisioning Center" means a 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
qualifying 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 Michigan Medical Marihuana Act, 2008 IL 1, MCL
333.26421 to 333.26430, is not a Provisioning Center for purposes of
the Act or this Chapter.
(10) "Safety Compliance Facility" means a 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.
(11) "Secure Transporter" means a licensee that is a commercial entity
located in this state that stores marihuana and transports marihuana
between Marihuana Facilities for a fee.
(12) "State operating license" means a license that is issued under the Act
that allows the licensee to operate as Marihuana Facilities.

B. All other terms used in this Chapter shall have the same definitions
ascribed to them in the Act.

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 47-5 Authorized Types and Numbers of Medical Marihuana Facilities.
Pursuant to Section 205(1) of the Act, the City authorizes the establishment
and operation of the following types and numbers of Medical Marihuana
Facilities:
A. Growers
(1) Class A Growers unlimited number.
(2) Class B Growers unlimited number.
(3) Class C Growers unlimited number.

B. Processors unlimited number.

C. Provisioning Centers not more than the number of licensed

pharmacies located and operating within the City as of the effective date of
this ordinance.

D. Secure Transporters unlimited number.

E. Safety Compliance Facilities unlimited number.

47-6 Medical Marihuana Permit Requirements and Application

Process.

A. Applicability

(1) No person or entity that was open or operating any facility purporting to
produce, manufacture, test, transfer or transport medical marihuana or
marihuana prior to the adoption of this ordinance by the City
Commission shall be considered a lawful use or lawful nonconforming
use.

(2) This Chapter does not apply to, or regulate, any protected patient or
caregiver conduct pursuant to the Michigan Medical Marihuana Act of
2008.
(3) Any person or entity that wishes to operate a Medical Marihuana Facility
in the City shall obtain a permit from the City and must also obtain a
State of Michigan Operating License prior to opening and operating a
Medical Marihuana Facility.
(4) No person or entity that has opened or operated a facility doing business
or purporting to do business under this Chapter or under the Medical
Marihuana Facilities Licensing Act without first obtaining a Permit from
the City shall be eligible for a Permit.

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

(2) The Applicant may be requested to provide any information required by

the Act and any other information deemed necessary by the City for the
consideration of a Permit.

(3) The City shall accept initial Permit applications for only a ten day period,
beginning on the effective date of this Ordinance. The City shall not
accept any initial Permit applications after the expiration of that ten day
period. Permit renewal applications may be accepted thereafter in
accordance with this Chapter.

(4) All Permits issued under this Chapter shall be renewable annually and
shall be subject to annual re-inspection and renewal fees as set from
time to time by resolution of the City Commission.

C. Permit Fees

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

(2) In addition to the annual reapplication and inspection fee, the City may
assess an annual fee of no more than $5,000 on each facility to help
defray the administrative and enforcement costs associated with the
operation of Medical Marihuana Facilities operating in the City.

(3) If the City approves a Permit application submitted by an Applicant to

the City but the State of Michigan does not approve a State of Michigan
Operating License for that Applicant, the City shall refund the Applicant
half of the application fee paid to the City by that Applicant.

D. Local Preference

(1) Any person who is awarded a Permit must be a Michigan resident. Any
entity that is awarded a Permit must be majority owned by a Michigan
resident.

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(2) At least thirty percent (30%) of Permits awarded for all Medical
Marihuana Facilities shall be issued to persons who are City of
Kalamazoo residents or entities which are majority owned by City of
Kalamazoo residents.
(3) At least thirty percent (30%) of Permits awarded for provisioning centers,
processing facilities and grow facilities shall be majority owned by minority
applicants.
(4) At least seventy percent (70%) of employees at each permitted
Marihuana Facility must be a resident of the greater Kalamazoo area.
E. Permit Evaluation and Award Process
The City shall apply the scoring system set forth in Section 47-7 to review and
evaluate Permit applications for Growers, Processors, and Provisioning
Centers, in accordance with the following requirements:
(1) The City shall appoint a panel to score applicants.

(2) The scoring panel shall include at least the following persons:
(a) One physician from the community with experience dealing with
medical marihuana;
(b) One board member of a community organization with experience
dealing with medical marihuana;
(c) One attorney with experience in the medical marihuana industry;
and
(d) Two members of the Kalamazoo City Commission.
(3) Applications for Permits for Growers, Processors and Provisioning
Centers shall be submitted to the scoring panel as non-identified
applications in which any identifying information of the applicants are
redacted.
(4) Permits shall be awarded first to members of the Coalition for Equitable
Cannabis Policies (CECP) which receive a passing score of at least 75
points, and thereafter Permits may be awarded as further provided in
this Section.
(5) Permits for Provisioning Centers shall be awarded by highest scores.
(6) Permits for Growers and Processors shall be awarded so long as they
receive a passing score of at least 75 points.
A Permit shall be approved if the Applicant meets all City requirements
unless a due diligence investigation discloses tangible evidence that the

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 conduct of the Applicants business would post a threat to the public
health, safety or general welfare.
F. Display and Transferability

(1) No Permit issued under this section shall be transferrable unless the
transfer is first approved by the State Medical Marihuana Licensing
Board.

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

47-7 Scoring System.

A. Quality of proposed team: 20 points

(1) Owners, officers and board members:

(a) Prior successes working with governmental agencies;
(b) Education and experience of the owners, officers and board
members;
(c) Ownership or financial interest in other Medical Marihuana
businesses.
(2) Operational team:
(a) Project team structure clearly defines roles and responsibilities;
(b) Knowledge and experience in the compassionate use of Medical
Marihuana;
(c) Clear definition of key team members.

B. Building and construction plans: 15 points

(1) Proposed building plans adequately address all state and local
regulations;
(a) Sites meet all applicable regulations;
(b) Floor plan includes adequate space for efficient operations and
includes all necessary facilities;
(c) Plans adequate to ensure approval by fire protection agency.
(2) Construction timeline:
(a) Completion date for construction is reasonable;
(b) Timeline provides sufficient detail to ensure completion.

C. Care, quality and safekeeping plan: 15 points

(1) Adequacy of security plan:

(a) Inventory control system is sufficient to comply with state and

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 local standards;
(b) Adequate physical security plan;
(c) Adequate plans for transportation to ensure safekeeping.
(2) Inclusion in security plan of adequate safeguards within the electronic
system to safeguard the privacy and confidentiality of records:
(a) Physical security restricting access to hardware;
(b) Plans include industry standard network security measures;
(c) Storage of data including archival data adequate to restrict
access to authorized users only.
(3) Inclusion of protections for the secure storage of products:
(a) Plan addresses the secure disposal of unused and old supplies;
(b) Safe and adequate packaging in accordance with state and local
standards;
(c) Plan to ensure products will not be packaged in a way that
appeals to minors, if applicable.

D. Operating plan: 20 points

(1) Adequacy of operations plan:

(a) Sufficient standard operating procedures for the proposed facility;
(b) Adequacy of plan to create and maintain accurate patient
records;
(c) Sufficiency of plan to safeguard protected health information.
(2) Adequacy of educational plan:
(a) Completeness and appropriateness of patient education plan, if
applicable;
(b) Adequacy of educational or training plan for employees to ensure
they are well qualified to assist patients with the medical use of
marihuana in order to be able to fulfill their respective roles.
(3) Environmental impact plan
(a) Plans to minimize environmental impact of facility;
(b) Sufficient odor control strategy to minimize odor that could impact
surrounding neighborhood;
(c) Waste disposal plan to ensure any hazardous, rejected or
contaminated material is properly disposed of;
(d) Wastewater plan if applicable.

E. Community Impact: 20 points

(1) Inclusion of a community benefit program designed to give back to the

local community;
(2) Inclusion of plan to provide low to no cost services to indigent patients.

F. Financial resources: 10 points

(1) Inclusion of sufficient financial information to understand the estimated

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 costs for building, operation, compensation of employees, equipment
costs, utility costs and other operations and maintenance costs as
needed.
(2) Attestation that if approved sufficient capital is in place to build, secure,
start up and operate the proposed establishment.

G. Business and marketing plan: 10 points

(1) Includes consistency of cash flow projections with size of market served;
(2) Acceptable plan for signage at proposed location of establishment;
(3) Acceptable plan for advertising.

H. Total points possible: 110.

47-8 Permit Revocation.

A. A Permit granted under this Chapter may be revoked for any of the
following reasons:
(1) Any fraud or misrepresentation contained in the Permit application;
(2) Any knowing violation of this ordinance;
(3) Loss of the Permittees State Medical Marihuana Facility License;
(4) Failure of the Permittee to obtain a State Medical Marihuana Facility
License within a reasonable time after obtaining a Permit under this
section and/or before beginning operation of the Medical Marihuana
Facility; or
(5) Conducting business in an unlawful manner or in violation of any City,
county or state ordinance, rule, regulation or law.
B. Prior to revocation of a permit, the City Commission shall provide the
Permittee with written notice of the Citys intent to revoke the permit and the
date on which the City Commission will hold a hearing on the proposed
revocation. The Permittee has a right to appear at the hearing and may be
represented by counsel, should the Permittee choose. The City shall not
revoke a permit without prior written notice and affording the Permittee the
opportunity to be heard on the matter at a City Commission meeting.

47-9 Violations and Enforcement.

A. Any person or entity who violates, disobeys, neglects or refuses to
comply with any provision of this Ordinance, or any order issued under the
Ordinance, including any conditions imposed thereon, or who causes, allows,

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or consents to any of same, shall be deemed to be responsible for a violation
of this ordinance.

B. Any person or entity responsible for a violation of this Ordinance shall

be liable as a principal. Each day that a violation exists shall constitute a
separate offense.

C. Any violation of this Ordinance shall constitute a basis for such

judgment, writ or order necessary to compel compliance with the Ordinance
and/or to restrain and prohibit continuation of the violation, or other appropriate
relief in any court of competent jurisdiction, in addition to any other relief or
sanction herein set forth or allowed by law.

D. A violation of this Ordinance is a municipal civil infraction as defined by

Michigan statute and shall be punishable by a civil fine determined in
accordance with the following schedule:
Minimum Maximum
Fine Fine

--- 1st offense $ 150.00 ---

--- 2nd offense $ 325.00 ---
--- 3rd or subsequent offense $ 500.00 ---

Additionally, the violator shall pay costs which may include all expenses, direct
and indirect, which the City has incurred in connection with the municipal civil
infraction.

E. The foregoing sanctions shall be in addition to the rights of the City to

proceed at law or equity with other appropriate and proper remedies.

F. Violation of this Ordinance will be considered a nuisance per se. The

City will thereafter have the right to pursue any appropriate remedies at law or
equity, including revocation of a Permit issued hereunder.

Section 3. Repealer.

All former ordinances or parts of ordinances conflicting or inconsistent with the

provisions of this ordinance are repealed.

Section 4. Savings Clause.

Legal proceedings presently pending or taking place under a prior City

Ordinance which is hereby repealed may proceed to judgement or decision
under the Ordinance as it existed prior to repeal.

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 Section 5. Severability.

If any section, subsection, sentence, clause, phrase or portion of this ordinance

is for any reason held invalid or unconstitutional by any Court of competent
jurisdiction, said portion shall be deemed a separate, distinct and independent
provision and such holding shall not affect the validity of the remaining portions
of this ordinance.

Section 6. Effective Date.

Pursuant to Section 13(a) of the City Charter, this ordinance shall take effect
from and after 10 days from the date of its passage.

(d) Conflicts. To the extent of any conflict between this Section and Section 199 of
this Charter, the requirements of this Section and the ordinances enacted pursuant to this
Section shall prevail. To the extent of any conflict between this Section or the ordinances
enacted pursuant to this Section and Michigan law, the requirements of Michigan law
shall prevail.
(e) Severability. If any section, subsection, sentence, clause, phrase or portion of
this City Charter Section is for any reason held invalid or unconstitutional by any Court
of competent jurisdiction, said portion shall be deemed a separate, distinct and
independent provision and such holding shall not affect the validity of the remaining
portions of this City Charter Section.

(f) Restriction on Powers of City commission.

(1) The City Commission shall not have the power to enact any ordinance
which has the effect of disallowing the types of medical marihuana facilities approved
by the ordinances enacted pursuant to this Section.

(2) The City Commission shall not have the power to enact any ordinance
which has the effect of reducing, altering or eliminating the zoning districts in which
medical marihuana facilities are allowed to operate by the ordinances enacted
pursuant to this Section.

(3) The City Commission may by ordinance add zoning districts in which
marihuana facilities are allowed to operate by the ordinances enacted pursuant to this
Section.

(4) The City Commission shall not have the power to enact any ordinance
which has the effect of reducing the number of medical marihuana facilities approved
by the ordinances enacted pursuant to this Section.

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