July 12, 2017, Introduced by Reps. VanderWall, Victory, Hughes, Kahle, Lucido and Howell and referred to the Committee on Law and Justice.
A bill to amend 2016 PA 281, entitled
"Medical marihuana facilities licensing act,"
by amending sections 205 and 402 (MCL 333.27205 and 333.27402).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 205. (1) A marihuana facility shall not operate in a
municipality unless the municipality has adopted an ordinance that
authorizes that type of facility. A municipality may adopt an
ordinance to authorize 1 or more types of marihuana facilities
within
its boundaries, and to limit the number of each type of
marihuana facility, or to require that the distance between a
proposed marihuana facility and an authorized structure as that
term is defined in section 402 be greater than the distance
required under section 402. A municipality may adopt other
ordinances relating to marihuana facilities within its
jurisdiction, including zoning regulations, but shall not impose
regulations regarding the purity or pricing of marihuana or
interfering or conflicting with statutory regulations for licensing
marihuana facilities. A municipality shall provide the following
information to the board within 90 days after the municipality
receives notification from the applicant that he or she has applied
for a license under this act:
(a) A copy of the local ordinance that authorizes the
marihuana facility.
(b) A copy of any zoning regulations that apply to the
proposed marihuana facility within the municipality.
(c) A description of any violation of the local ordinance or
zoning regulations included under subdivision (a) or (b) committed
by the applicant, but only if those violations relate to activities
licensed under this act or the Michigan medical marihuana act.
(2) The board may consider the information provided under
subsection (1) in the application process. However, the board shall
not use the municipality's failure to provide information to the
board
shall not be used against the applicant.
(3) A municipal ordinance may establish an annual,
nonrefundable fee of not more than $5,000.00 on a licensee to help
defray administrative and enforcement costs associated with the
operation of a marihuana facility in the municipality.
(4) Information a municipality obtains from an applicant
related to licensure under this section is exempt from disclosure
under the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
Sec. 402. (1) The board shall issue a license to an applicant
who submits a complete application and pays both the nonrefundable
application fee required under section 401(5) and the regulatory
assessment established by the board for the first year of
operation, if the board determines that the applicant is qualified
to receive a license under this act.
(2) An applicant is ineligible to receive a license if any of
the following circumstances exist:
(a) The applicant has been convicted of or released from
incarceration for a felony under the laws of this state, any other
state, or the United States within the past 10 years or has been
convicted of a controlled substance-related felony within the past
10 years.
(b) Within the past 5 years the applicant has been convicted
of a misdemeanor involving a controlled substance, theft,
dishonesty, or fraud in any state or been found responsible for
violating a local ordinance in any state involving a controlled
substance, dishonesty, theft, or fraud that substantially
corresponds to a misdemeanor in that state.
(c) The applicant has knowingly submitted an application for a
license under this act that contains false information.
(d) The applicant is a member of the board.
(e) The applicant fails to demonstrate the applicant's ability
to maintain adequate premises liability and casualty insurance for
its proposed marihuana facility.
(f) The applicant holds an elective office of a governmental
unit of this state, another state, or the federal government; is a
member of or employed by a regulatory body of a governmental unit
in this state, another state, or the federal government; or is
employed by a governmental unit of this state. This subdivision
does not apply to an elected officer of or employee of a federally
recognized Indian tribe or to an elected precinct delegate.
(g) The applicant, if an individual, has been a resident of
this state for less than a continuous 2-year period immediately
preceding the date of filing the application. The requirements in
this subdivision do not apply after June 30, 2018.
(h) The board determines that the applicant is not in
compliance with section 205(1).
(i) The board determines that at the time of application the
applicant's proposed marihuana facility is located within 500 feet
of an authorized structure or, if a municipality has adopted an
ordinance under section 205(1) that requires a greater distance
between a proposed marihuana facility and an authorized structure,
the applicant's proposed facility would violate the ordinance. The
board shall measure the distance between the proposed marihuana
facility and the authorized structure by measuring along the
centerline of the street or streets of address between 2 fixed
points on the centerline determined by projecting straight lines,
at right angles to the centerline, from the part of the authorized
structure nearest to the proposed marihuana facility and from the
part of the proposed marihuana facility nearest to the authorized
structure. As used in this subdivision:
(i) "Authorized structure" means a church, school, child care
center, or building that is frequented by minors and that is owned
or operated by the Boy Scouts of America, the Girl Scouts of
America, the Young Men's Christian Association, Camp Fire, the Boys
and Girls Clubs of America, or another youth organization.
(ii) "Child care center" means that term as defined in section
1 of 1973 PA 116, MCL 722.111.
(j)
(i) The applicant fails to meet other criteria
established
by rule.
(3) In determining whether to grant a license to an applicant,
the board may also consider all of the following:
(a) The integrity, moral character, and reputation; personal
and business probity; financial ability and experience; and
responsibility or means to operate or maintain a marihuana facility
of the applicant and of any other person that does either of the
following:
(i) Controls, directly or indirectly, the applicant.
(ii) Is controlled, directly or indirectly, by the applicant
or by a person who controls, directly or indirectly, the applicant.
(b) The financial ability of the applicant to purchase and
maintain adequate liability and casualty insurance.
(c) The sources and total amount of the applicant's
capitalization to operate and maintain the proposed marihuana
facility.
(d) Whether the applicant has been indicted for, charged with,
arrested for, or convicted of, pled guilty or nolo contendere to,
forfeited bail concerning, or had expunged any relevant criminal
offense under the laws of any jurisdiction, either felony or
misdemeanor, not including traffic violations, regardless of
whether the offense has been expunged, pardoned, or reversed on
appeal or otherwise.
(e) Whether the applicant has filed, or had filed against it,
a proceeding for bankruptcy within the past 7 years.
(f) Whether the applicant has been served with a complaint or
other notice filed with any public body regarding payment of any
tax required under federal, state, or local law that has been
delinquent for 1 or more years.
(g) Whether the applicant has a history of noncompliance with
any regulatory requirements in this state or any other
jurisdiction.
(h) Whether at the time of application the applicant is a
defendant in litigation involving its business practices.
(i) Whether the applicant meets other standards in rules
applicable to the license category.
(4) Each applicant shall submit with its application, on forms
provided by the board, a passport quality photograph and 1 set of
fingerprints for each person having any ownership interest in the
marihuana facility and each person who is an officer, director, or
managerial employee of the applicant. The department may designate
an entity or agent to collect the fingerprints, and the applicant
is responsible for the cost associated with the fingerprint
collection.
(5) The board shall review all applications for licenses and
shall inform each applicant of the board's decision.
(6) A license shall be issued for a 1-year period and is
renewable annually. Except as otherwise provided in this act, the
board shall renew a license if all of the following requirements
are met:
(a) The licensee applies to the board on a renewal form
provided by the board that requires information prescribed in
rules.
(b) The application is received by the board on or before the
expiration date of the current license.
(c) The licensee pays the regulatory assessment under section
603.
(d) The licensee meets the requirements of this act and any
other renewal requirements set forth in rules.
(7) The department shall notify the licensee by mail or
electronic mail at the last known address on file with the board
advising of the time, procedure, and regulatory assessment under
section 603. The failure of the licensee to receive notice under
this subsection does not relieve the licensee of the responsibility
for renewing the license.
(8) If a license renewal application is not submitted by the
license expiration date, the license may be renewed within 60 days
after its expiration date upon application, payment of the
regulatory assessment under section 603, and satisfaction of any
renewal requirement and late fee set forth in rules. The licensee
may continue to operate during the 60 days after the license
expiration date if the license is renewed by the end of the 60-day
period.
(9) License expiration does not terminate the board's
authority to impose sanctions on a licensee whose license has
expired.
(10) In its decision on an application for renewal, the board
shall consider any specific written input it receives from an
individual or entity within the local unit of government in which
the applicant for renewal is located.
(11) A licensee must consent in writing to inspections,
examinations, searches, and seizures that are permitted under this
act and must provide a handwriting exemplar, fingerprints,
photographs, and information as authorized in this act or by rules.
(12) An applicant or licensee has a continuing duty to provide
information requested by the board and to cooperate in any
investigation, inquiry, or hearing conducted by the board.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.