Public Engagement Session South Branch Township Medical Marihuana Facilities Licensing Act – Public Act 281 of 2016

Session Contents Overview of Law Definitions of Facility License Types Reasons to Consider Suitable Locations Discussion Next steps

Overview of Law Public Act 281 of 2016 Allows for 5 types of facilities to be licensed by the State through the Dept. of Licensing and Regulatory Affairs (LARA). Gives Townships the ability to ‘opt in’ or ‘opt out’. Pertains to the Commercial production and sale of medical marihuana. Does NOT change the non-commercial process for registered primary caregivers and qualified patients relationship. Provides for a tax collection and redistribution back to the communities which allow commercial marihuana facilities. Provides additional regulation and oversight of the industry.

Overview of Law Public Act 281 of 2016 LARA will not issue licenses to applicants of a township which has not ‘opted-in’ Townships may ‘opt-out’ initially and ‘opt-in’ at a later date The opposite is not desired as any licensed facilities initially allowed by a township would then be a ‘legal non-conforming’ use after a township ‘opts-out’ Townships that ‘opt-out’ will not receive tax revenues from the program

Definitions of Facility License Types Grower: License authorizes cultivation, drying, trimming, or curing and packaging marihuana for sale to a processor, provisioning center, or another grower. 3 classes of Grower Licenses Class A: allowed 500 marihuana plants Class B: allowed 1,000 marihuana plants Class C: allowed 1,500 marihuana plants Processor: License authorizes purchase of marihuana from a grower and sale of infused-products or marihuana to a provisioning center.

Definitions of Facility License Types Secured Transporter: License authorizes storage and transportation of marihuana and associated money between facilities. Provisioning Center: Licensee can sell marihuana to a qualified patient or registered primary caregiver. Safety Compliance Facility: License authorizes the facility to receive marihuana from, test marihuana for, and return marihuana to only a marihuana facility.

Reasons to Consider Public demand Business opportunities In fiscal year 2016 the total number of qualifying patients in Crawford County was 392. Total number of primary caregivers approved for Crawford County was 69 for the same time period. (reported 12/22/16 by LARA) Business opportunities According to a Feb 4th 2018 article by the Business Insider http://www.businessinsider.com/more-marijuana-industry-workers-than-dental-hygienists-in-the-us-2018-2 The total number of job postings for the cannabis industry increased 445% in 2017, according to job-search website ZipRecruiter. There are now more people working in the legal cannabis industry than there are dental hygienists in the US. The legal cannabis industry could be a $21 billion industry by 2021. Consumers spent around $9 billion on cannabis in 2017, according to the industry research firm BDS Analytics.

Reasons to Consider Tax revenue $9,866,902.40* The amount collected from the medical marihuana program application and renewal fees authorized in section 5 of the Michigan medical marihuana act, 2008 IL 1, MCL 333.26425. $4,470,222.86* The costs of administering the medical marihuana program under the Michigan medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430. Townships may collect up to $5,000 per licensee as an annual non-refundable fee. State shared revenues of 3% of gross retail receipts as allocated to counties and municipalities in which a marihuana facility is located. *Source: LARA: Medical Marihuana Act Statistical Report with Program Information and Financial Data For Fiscal Year 2016, published December 22, 2016

Suitable Locations The MMFL Act is specific to Commercial Regulations Should all marihuana facilities be limited to Commercial Business district? Restrict to indoor locations only? Should Resource Conservation and Farm Forest districts be considered? Minimum acreage restrictions? Should Low Density Residential district be considered? Should all marihuana facilities be limited to a highway corridor area such as along M-18 exclusively?

Discussion Medical Marihuana is NOT going away anytime soon… Do we embrace the possible opportunities for revenue and growth? Does promoting expansion of business development conflict with our Master Plan to preserve the character of our surrounding natural resources and the recreational use of those resources? Real possibility of legal recreational use of marihuana in the near future… Should we be preparing for recreational use of marihuana as business opportunity in our community?

Next Steps Close website survey and tally results SM-Data-MMJ survey-3-1-18.pdf Additional Public Engagement Sessions? Decide and vote on ‘opt-in’ or ‘opt-out’ Prepare Ordinance Amendment to support decision Make recommendation to Township Board