Detroit dispensaries to battle state over rejected recreational marijuana applications – MLive.com

LANSING, MI -- Michigan recently denied recreational marijuana licenses to at least five Detroit businesses, their attorney says.

Now those businesses intend to fight, according to Denise Pollicella of Howell-based Cannabis Attorneys of Michigan.

Brightmoore Gardens, 420 Factory, HCM Provisioning, Utopia Gardens and Plan B Wellness Center, all licensed medical marijuana dispensaries in Detroit, met nearly all of the criteria for recreational marijuana licenses and applied at a time when Detroit didnt have a ban on recreational marijuana in place.

There was one problem: the Detroit City Clerk wouldnt sign off on a required form stating the city didnt have an ordinance in place forbidding recreational marijuana business.

Thats because Detroit has a temporary recreational marijuana ban in place -- but it didnt when the companies applied.

The state Marijuana Regulatory Agency began accepting applications Nov. 1, at which time Detroits elected officials hadnt passed a ban on the new industry. The Detroit businesses submitted their applications.

In the meantime, Detroit City Council took action and passed a temporary ban on recreational marijuana that took effect on Nov. 12.

The law says the state licensing agency shall approve a state license if the city doesnt notify the department that the proposed marijuana establishment is not in compliance with an ordinance ... at the time of application.

Pollicella said those five key words, at the time of application, mean her clients are due licenses.

Marijuana Regulatory Agency Director Andrew Brisbo foresaw situations like this one in Detroit and publicly asked every city, town and village in Michigan to move on opt-out laws prior to Nov. 1, if they intended to block recreational businesses from operating within their borders.

Brisbo even warned local governments that litigation was likely to arise if businesses applied when a ban wasnt in place and the municipality subsequently enacted one, such as happened in Detroit.

Instead of issuing licenses, the Marijuana Regulatory Agency took another route, Pollicella said.

They created in the rules a situation to make it so they could deny applicants in this circumstance, she said.

After the voter-passed recreational marijuana law took effect, the state Marijuana Regulatory Agency created a list of emergency rules to guide the licensing process. In those rules, applicants are required to obtain signed approval from their local clerk to operate.

This was not supposed to be a mass of bureaucratic red tape, Pollicella said. These businesses "followed the exact simple language of the statute and unfortunately there were rules created after the statute, not by the people of Michigan and not by the Legislature.

Lets remember, a ballot initiative referendum can only be amended by three-quarter vote of both houses. This was created by an administrative agency to basically undo that part of the statute.

While the licenses were pending response from the Marijuana Regulatory Agency, Pollicella sued the state in an effort to force them to respond to the applicants and issues the licenses.

Pollicella said the lawsuits became moot and were withdrawn when the state responded with denials. The businesses are now appealing their application rejections, which could result in what is referred to in the rules as a public investigative hearing," which is essentially an under-oath trial with witnesses and evidence that is conducted before an administrative law judge.

The rules allow an applicant 21 days to appeal but dont state how long the Marijuana Regulatory Agency has to schedule a hearing.

Marijuana Regulatory Agency spokesman David Harns declined comment for this story, citing pending litigation and a policy not to discuss pending applications.

While that process unfolds, Detroit City Council this week extended its ban on recreational marijuana until at least March 31.

Detroit Councilman James Tate Jr., whos spearheading the citys recreational marijuana legislation efforts, said hes not going to put forth a law for a vote until there are mechanisms in place to ensure Detroit residents benefit from and are sustainable in the new marijuana market.

Currently, Detroits market is dominated by outsiders, he said.

There are some people saying Detroit is behind on this green rush ... Tate said. " ... But we have over 1,400 municipalities that have opted out. Many have said that theyre not trying to opt in, period.

What were saying is, we need some additional time to address these very pertinent issues that we, as the city of Detroit, have to deal with that others do not.

-- Gus Burns is the marijuana beat reporter for MLive. Contact him with questions, tips or comments at fburns@mlive.com or follow him on Twitter, @GusBurns. Read more from MLive about medical and recreational marijuana.

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Detroit dispensaries to battle state over rejected recreational marijuana applications - MLive.com