Detroit Ordinance 2022-005 created a tiered adult-use marijuana licensing scheme reserving roughly half of new licenses for legacy Detroiters, surviving a 2021 federal challenge in modified form. Equity applicants get reduced fees and priority review.
Following the 2021 Lowe v. City of Detroit ruling that struck down the original residency tier, Detroit Council adopted Ordinance 2022-005 amending Chapter 21 of the City Code. The revised ordinance defines Detroit Legacy applicants as those meeting any of three criteria such as 15 years residency, residency in a low-income neighborhood, or having a parent with a marijuana conviction. Roughly 50 percent of each license category, including retailer, microbusiness, and consumption establishment, is set aside for equity applicants. The city pairs licensing with technical assistance, fee reductions of up to 75 percent, and a real estate fund. State licensing through the Cannabis Regulatory Agency under MCL §333.27951+ is still required in addition to the local Detroit license.
Misrepresenting equity status, transferring an equity license to a non-equity owner within the holding period, or operating without dual state-and-local licensure leads to license revocation, fines, and CRA enforcement.
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