It has been just over two years since the state of Michigan implemented comprehensive medical marihuana regulations. Subsequently, in November 2018, voters approved a ballot proposal to allow the sale of marihuana for recreational use in Michigan. Following these developments, a number of municipalities chose to allow the sale of medical and/or recreational marihuana within their borders, triggering the need for municipalities to establish procedures for businesses to become licensed to sell in accordance with local regulations, as well as the Michigan Marihuana Facilities Licensing Act (MMFLA).
Kirk, Huth, Lange & Badalamenti, which has long been a leading law firm for municipalities in Michigan, helps its municipal clients navigate the complexities of marihuana licensing issues. From the establishment of ordinances, to the design of application processes, to ongoing enforcement of regulations, our firm has the experience and expertise necessary to establish systems and procedures that work—for municipalities, their residents, and businesses.
There are many legal standards and practical considerations that municipalities must grapple with when establishing processes for the sale of marihuans in their communities. In general, under the MMFLA, a municipality that has opted-in to allow the sale of marihuan may enact an ordinance to authorize marihuana facilities and restrict the number of each type of facility; charge an annual fee up to $5,000 on licensees; and create other ordinances related to marihuana facilities, such as zoning ordinances.
Because the process of establishing criteria for businesses seeking marihuana licenses, and reviewing business applications for licenses, is complex, municipalities routinely rely on experienced legal counsel to help guide them through the process. For example, Kirk, Huth, Lange & Badalamenti has been integrally involved in advising the City of Pontiac in connection with its Medical Marihuana Facilities Ordinance 2357(B).
Among other roles and responsibilities, the firm advises Pontiac on (i) the legal consequences and effects of applicant criminal background information and staff/employee training and education materials and (ii) compliance of scored provisioning center applications to ensure criteria has been consistently applied by members of the scoring team. To help ensure compliance and guide the process, the firm works closely with the team responsible for establishing and evaluating the city’s scoring system.
As has been demonstrated in a number of municipalities across Michigan, the failure to establish compliant protocols and systems can lead to litigation which increases costs and slows down application and approval processes. Lansing, Troy, Detroit, and other municipalities in Michigan have faced lawsuits challenging aspects of their medical marihuana processes.
As the “green rush” continues to gain momentum in Michigan, an increasing number of businesses will be looking to cash in, which means it’s incumbent upon municipalities to invest in protocols that will allow for Michigan’s newest industry to flourish while protecting the public. At Kirk, Huth, Lange & Badalamenti, we stand ready to help our municipal clients navigate the challenges and capitalize on the opportunities presented by legal marihuana. To learn more about our services, please contact Rob Huth at rhuth@kirkhuthlaw.com or 586.412.4900.
