November 1 is Deadline for Municipalities to "Opt Out" of Recreational Marijuana Establishments

In the November 2018 election, Michigan voters approved Initiated Law 1 of 2018, known as the Michigan Regulation and Taxation of Marihuana* Act, which makes the use of marijuana legal under state and local law for adults 21 years of age or older. The Act also allows for the commercial production and distribution of marijuana under a state licensing system.  

Importantly, the Act allows a municipality to completely prohibit or limit the number of "recreational" marijuana establishments within its boundaries through the adoption of an ordinance. If a municipality has not prohibited marijuana establishments when a marijuana business applies for a state license, then the state can authorize the business to operate in that municipality.  

The Michigan Marijuana Regulatory Agency ("MRA") recently issued emergency rules for the licensing of marijuana establishments (available online here). The MRA anticipates that it will begin issuing licenses to marijuana establishments - including growers, processors, retailers, microbusinesses, secure transporters, and safety compliance facilities - by November 1, 2019.  

This means that if a municipality does not wish to allow marijuana establishments in its jurisdiction, it should adopt an ordinance prior to November 1, 2019, to ensure that the state does not issue a license for a business in that municipality.

If your township, city, or village wishes to prohibit marijuana establishments (or allow them with regulations), we can help. Foster Swift shareholder Laura Genovich has drafted dozens of medical and recreational marijuana ordinances for municipal clients across the state and can offer a cost-effective package for municipalities wishing to prohibit or regulate marijuana establishments. 

Laura has advised municipal clients about Michigan's marijuana laws since the Michigan Medical Marihuana Act was adopted in 2008, and she has given many presentations around the state and published several articles about medical and adult-use marijuana regulations.  

*Marijuana is typically spelled with a "J" when mentioned in this article but is spelled with an "H" when referring to the title of the statute.

For further questions about the November deadline, you can contact Laura directly:

Laura J. Genovich
Foster Swift Collins & Smith PC
Phone: (616) 726-2238
lgenovich@fosterswift.com
www.fosterswift.com