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Tate, Duggan to give details on proposed ordinance allowing recreational marijuana shops in Detroit - Crain's Detroit Business

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Rules for recreational marijuana shops in Detroit are to be proposed Monday, with priority given to Detroit residents.

Councilman James Tate and Mayor Mike Duggan are scheduled to give details Monday afternoon about the proposed ordinance for adult-use marijuana licensing, according to a news release. It would guarantee at least half of all such licenses would go to "Legacy" residents as part of a social equity program, the release stated.

Passage of the proposed ordinance would allow licensing for state-approved categories including medical marijuana provisioning center, adult-use retailer establishment, grower, processor, safety compliance facility, temporary marijuana event, microbusiness, designated consumption lounge and secure transporter.

"We have taken the necessary time to craft legislation that is not aimed at excluding anyone from their goals to succeed in this market but to ensure that we legally provide a pathway towards inclusion and opportunity for residents of our city, which has been disproportionately impacted by marijuana convictions", Tate said in the release. "Many are now profiting from the same plant that has led to countless criminal convictions which devastated countless families within our city. The time has come for equity currently not present within Detroit's cannabis industry."

The SEP part of the ordinance allows the city to provide significant reductions in application fees for Detroiters who have lived in the city for an extended period of time, including those who have been convicted of marijuana-related offenses in the past as well as low-income Detroiters. It would also allow discounts on certain city-owned properties for residents certified as Legacy Detroiters.

"In the past when licenses for marijuana businesses become available, they tend to go to non-residents, rather than those who live in this community," Duggan said in the release. "What Councilman Tate has crafted here in partnership with our law department ensures that longtime Detroit residents will have the opportunity to build real wealth as part of this lucrative new industry."

The use and sale of medical marijuana has been legal in Michigan since December 2016.

Michigan voters approved a ballot proposal to legalize adult-use of recreational marijuana in November 2018. But municipalities are allowed to ban marijuana businesses from opening in their communities. Detroit officials have barred such sales and use as they worked to craft rules on how businesses operate and ensure city residents can participate in what has been called a potential billion-dollar industry.

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