To the City Clerk of the City of Clawson: We, the undersigned qualified and registered electors, residents in the City of Clawson, Oakland County, State of Michigan, respectively, petition to amend the city charter of the City of Clawson by adding a new Chapter 16, Section 16.17 pursuant to the Home Rule City Act, Act 279 of 1909.

Summary Ballot Language: The proposed “Local Marijuana Control” city charter amendment, if adopted, would impose local controls and limits for two Marijuana Retailer Permits, annual regulatory fees, and applications requiring community benefits commitment plans.

Shall the Proposal be Adopted? □Yes □No

Full Text of Proposed Charter Amendment

Clawson City Charter

Chapter 16, Section 16.17 Local Marijuana Control

(a) Definitions.

1. “MRTMA” means the Michigan Regulation and Taxation of Marihuana Act
2. ”MMFLA” means the Medical Marihuana Facilities Licensing Act.
3. All definitions provided in MRTMA and MMFLA are hereby incorporated by reference into this provision, except as otherwise provided herein.
4. “CRA” means Michigan Cannabis Regulatory Agency and is synonymous with the term Michigan Marijuana Regulatory Agency, or any successor agency.
5. The term “Pre-Qualified Applicant” means an applicant that has received and maintained continuous adult use and medical Pre-qualification status or licensure from CRA, pursuant to both MRTMA and MMFLA, respectively, prior to July 30, 2024.
6. “Marijuana retailer” means a commercial retail business allowed under this charter provision to engage in commercial activity relating to the retail sale of marijuana products pursuant to MRTMA and/or MMFLA, respectively.

(b) Ordinances. The council may at any time enact related police power and zoning ordinances that are not unreasonably impracticable, and which do not conflict with this provision, MRTMA, MMFLA or rules promulgated pursuant to MRTMA and MMFLA, and until such time this charter provision is self-executing. Drive-thru window service and home delivery service are prohibited unless allowed by CRA rules. Marijuana retailers are considered equivalent in all respects to other general retail businesses permitted in the city. Any ordinances or resolutions inconsistent with this charter provision are hereby amended or repealed only to the extent necessary to give the provision full force and effect.

(c) Two Marijuana permits; fees; renewals; operations.

1. Only two Marijuana retailer permits shall be issued for marijuana retailers, and all other marijuana establishment types are prohibited unless approved by city council. A city marijuana permit is required for any marijuana establishment to operate in the city.
2. A $5,000.00 annual permit fee and subsequent renewal fees shall be timely paid as a condition to retail operation. A Marijuana retailer permit is suspended or revoked during any period of CRA suspension or revocation of a corresponding state facility license. Substantial performance of a submitted Community Commitment Plan is a pre-condition to renewal. A Marijuana retailer permit shall be renewed annually and not otherwise be suspended, revoked, or denied without good cause shown upon 30-days written notice and opportunity to cure, subject to timely payment of all regulatory assessments.
3. A Marijuana retailer permit authorizes, but does not require, the Permit holder to operate a state licensed medical marihuana provisioning center at the same location as, and incidental to, the permit holder’s Adult Use Retail Establishment without any additional city permit or fee.
4. Marijuana retailer permits and provisional permits are nontransferable, but members, shareholders, and owners may at any time assign their ownership interests in a permit holder or provisional permit holder or applicant, conditioned upon the approval by CRA of any CRA license amendment application for transfer of equity interest in an applicant, permit, or provisional permit holder. The applicant shall deliver said Permit amendment application and all supporting documentary evidence of CRA agency approval to the City clerk promptly on approval by CRA as evidence of assignment. 
5. Pursuant to MRTMA restrictions, marijuana retailers are prohibited within any area zoned exclusively for residential use, or within 1,000 feet of a pre-existing public or private school providing education in kindergarten or any of grades 1 through 12.

(d) Applications. After the effective date of this provision and for an application window period of 14 days thereafter, a Pre-Qualified Applicant may submit a complete written application for city Marijuana retailer permit with payment of a $5,000.00 non-refundable fee to the City Clerk. An application fee shall be credited to an applicant’s first annual City Permit regulatory assessment. Time is of the essence for this application window period, and in the event of subsequent permit vacancy the clerk shall set a similar application window period.

The complete application for city Permit shall contain each of the following:

1. a cover sheet with the name, assumed name, physical and mailing address, email and phone contact for the applicant, its directors and officers, managers, and any direct or indirect owner or applicant disclosed in CRA license or prequalification documents.
2. the proposed facility location address and parcel ID number.
3. applicant’s current adult use and medical CRA license pre-qualification status approval letters with evidence of time issued and duration.
4. documentary evidence to demonstrate the proposed marijuana retailer location would not violate the restrictions hereof, including location maps showing buffer zone compliance from sensitive uses identified therein.
5. documentary evidence of a recorded real property interest in the proposed location, if any; and
6. a Community Benefits Commitment Plan that proposes detailed tangible economic commitments to local community organizations that support programs of art, community development, mental health, housing or food insecurity, or animal welfare with an acknowledgment by the applicant that any failure to substantially perform the plan may be good cause for nonrenewal of a permit. By submitting a community benefits commitment plan the applicant commits to the substantial performance of the Plan as a condition of future permit renewal.

(e) Selection Process. Within 30 days of application, after the close of the application window period, the city clerk shall select applicants and issue provisional Marijuana retailer permits to the applicants at locations that would not violate the restrictions above, and thereafter shall issue marijuana permits to such provisional permit holders immediately upon CRA issuance of a corresponding retail establishment license. If more than two applicants apply for the two marijuana permits allowed in the city, then the city clerk shall within 30 days of application, after the close of the application window period, objectively score each application according to the factors and the weights provided below to select applicants best suited to operate in compliance with MRTMA in the city. The clerk shall issue provisional Marijuana retailer permits, and thereafter shall issue marijuana retailer permits to such provisional marijuana retailer permit holders immediately upon CRA issuance of corresponding retail establishment licenses to the two applicants with the top point scores.

1. If the applicant has received and maintained continuous adult use and medical Pre-qualification status or licensure from CRA, pursuant to both MRTMA and MMFLA, respectively, prior to July 30, 2024, then the applicant shall receive 50 Points.
2. For each month prior to July 30, 2024 that the pre-qualified applicant has maintained continuous adult use and medical Pre-qualification status or licensure from CRA, pursuant to both MRTMA and MMFLA, respectively, the applicant shall receive 1 additional Point for each such month, up to a maximum of 30 additional Points.
3. If the pre-qualified applicant has held a recorded real property interest in the proposed location prior to July 30, 2024, then the applicant shall receive 50 Points.
4. For each day prior to July 30, 2024 that the pre-qualified applicant has held a recorded real property interest in the proposed location, the applicant shall receive 1 additional point for each such day, up to a maximum of 30 additional Points.
5. If a pre-qualified applicant, who shares ownership with the main applicant being considered for a permit, applies for an additional store location during the application submission period, and this additional applicant has maintained a recorded real property interest in the proposed location since before July 30, 2024, then both the main applicant and the applicant for the additional location will each receive an extra 25 points.
6. If the applicant’s community benefits commitment plan proposes tangible economic benefits to the City, then 10 points shall be awarded for each $10,000.00/year of cash payments committed to the Community Benefits Commitment Plan, up to a $50,000/year cash payments commitment with a maximum 50 points awarded.

(f) Severability. If any section, sub-section, clause, or provision of this this charter provision shall be declared to be unconstitutional, void, illegal, in conflict with state law or rules, or ineffective by any court of competent jurisdiction; such section, sub-section, clause, or provision shall thereby cease to be a part of this charter provision, but the remainder of this charter provision shall stand and be in full force and effect.