Posted on 03/06/2021 4:02:40 PM PST by csvset
Detroit’s marijuana ordinance took a long time to create and could take less time to undo, if a lawsuit challenging it succeeds.
The lawsuit seeks to invalidate Detroit’s carefully constructed retail marijuana licensing program designed to ensure city residents aren’t shut out by deep-pocketed outsiders before any recreational cannabis business opens its doors.
Prospective marijuana business owner Crystal Lowe in a civil lawsuit filed in Wayne County Circuit Court on Tuesday, March 2 claims the program’s preferential residency requirements are illegal, a violation of both the state and federal constitutions.
If successful, Detroit leaders, who’ve already received criticism for being late to the recreational marijuana game, may be forced to start from scratch.
While Detroit’s recreational marijuana market works toward opening this summer or fall, other communities, like Ann Arbor, have a significant head start, with dozens of licensed businesses already in operation.
Related: Michigan communities to split $10 million in tax revenue
As if prepared for the possibility of a legal challenge, Detroit’s 48-page licensing ordinance passed unanimously by City Council in November states no license will be issued or renewed if any portion of the law is struck down or deemed unconstitutional.
Rather than open the city to recreational marijuana business out of the gate in December 2019, Detroit lawmakers spent nearly a year creating a framework that benefits “Detroit legacy” applicants.
Legacy applicants are those who have lived in the city for 15 of the last 30 years; have lived in the city for 13 of the last 30 years and are low income; or have lived in the city for 10 of the last 30 years and have a marijuana conviction or a parent with a marijuana conviction.
The intent of the ordinance aligns with the state marijuana law that voters passed in 2018. The law includes support for the concept of “social equity,” with the intention of supporting or at least to avoid penalizing anyone who’s been negatively impacted by prior marijuana prohibition.
Lowe, according to the lawsuit filed on her behalf by attorney Kevin M. Blair of the Lansing-based Honigman law firm, doesn’t qualify as a Detroit legacy resident despite living in the city for 11 of the last 30 years.
Lowe, 33, hopes to open a marijuana store in the city but will “almost certainly” be denied that opportunity based on the framework that gives preferential treatment to legacy Detroiters and existing medical marijuana businesses, the lawsuit said.
Detroit is allowing up to 75 retailers to open in the city, but half must be owned by qualifying legacy residents.
Legacy residents also receive a 99% discount on licensing fees in 2021, a 75% discount on licensing fees in 2022, and the opportunity to purchase city-owned land for 25% of the market value.
The city plans to review legacy business applications between May 1 and June 15, existing medical businesses applications between June 16 and July 31; and the rest of the applications, including Lowe’s, beginning in August.
According to the lawsuit, “it’s almost certain” the city will award all 75 licenses to legacy applicants “before it even considers any non-legacy applicants.”
For the first five years, any legacy resident awarded a license may only transfer or sell to another qualified legacy resident.
“This creates a significant and long-lasting hurdle preventing non-Detroit legacy applicants from obtaining a license,” the complaint said.
The lawsuit alleges the ordinance violates the Michigan Constitution, which ensures “no person shall be denied the equal protections of laws” and the U.S. Constitution Commerce Clause, which blocks states from creating laws infringing on interstate commerce.
Legacy applicants are those who have lived in the city for 15 of the last 30 years; have lived in the city for 13 of the last 30 years and are low income; or have lived in the city for 10 of the last 30 years and have a marijuana conviction or a parent with a marijuana conviction.
For goodness sakes. This is right out of Central Planning. Reserve a big chunk of licenses to folks who have no clue how to run a business. I hope Crystal’s lawsuit prevails, this BS plan needs to be nipped in the bud. Forget for a moment that the product is weed, I would think that Detroit would want to approve applicants who have a business plan, experience and $$$$, whether they plan to sell bagels, boots or buds. Let’s face it, this is about money, right ?
In the suit, they should point out it discriminates against illegal aliens. They will be more likely to succeed.
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