Only 75 medical cannabis dispensaries will be able to legally operate in the city of Detroit in Michigan. This was the decision unanimously reached by the city council after they voted on the matter on Tuesday.
The ordinance that sets a limit to the number of licensed cannabis facilities in Detroit and puts in place more regulations on the city’s young cannabis industry was proposed by council member James Tate.
The ordinance establishes regulations for five types of medical cannabis licenses, as well as locations where cannabis plants could be cultivated, tested, processed, transported, and sold to patients holding legitimate medical cannabis cards. It was passed by the council without any objections.
Moreover, the ordinance encourages prospective cannabis business owners to offer community benefits as a part of their license application. It likewise regulates how medical cannabis dispensaries and other cannabis operations would be approved and that size they can be.
According to the Detroit Free Press, the timing of this new city ordinance is crucial for about 62 cannabis dispensaries that are operating under emergency rules. If these retail shops do not get a state-issued license by Sept. 15, they will be forced to shut down or to risk their chances of getting one.
In December 2016, the Legislature approved the regulation and the imposition of tax on the medical cannabis industry. Before the year ended, they started receiving license applications.
The Bureau of Medical Marijuana Regulation has accepted 627 cannabis business applications. Last month, the Medical Marijuana Licensing Board has awarded the first seven licenses. It will meet again next week to check more applications.