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Detroit City Council approves adult-use marijuana ordinance

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Posted at 3:16 PM, Nov 24, 2020
and last updated 2020-11-24 15:16:25-05

DETROIT (WXYZ) — The Detroit City Council unanimously voted to approve an adult-use recreational marijuana ordinance, which allows adult-use marijuana licensing in Detroit.

Licensing in Detroit will be allowed for the following state approved categories: adult-use retailer establishment, grower, processor, safety compliance facility, temporary marijuana event, microbusiness, designated consumption lounge and secure transporter.

The ordinance includes a social equity program, which guarantees that no less than 50% of all license types will be awarded to Detroit Legacy applicants.

Detroit Legacy applicants will have first access to applications, along with adult-use growers. Additionally, the ordinance mandates that at least $1 million generated annually from licensing sales will be used for various adult-use social equity initiatives. A portion of adult-use sales taxes will also fund substance use prevention programming for youth.

The legislation, introduced by Councilmember James Tate, also includes community outreach provisions and a good neighbor program that encourages industry participants to hire returning citizens and offer an equitable wage.

“I am thankful for the assistance of my colleagues, the social equity workgroup, my staff as well as Mayor Duggan and his team for help in crafting such a comprehensive ordinance," Tate said. “We have taken lessons learned from other cities around the state and country that opened up the adult-use market and applied elements that we believe will help provide opportunity for those seeking to enter and succeed in the cannabis industry. We have taken major steps to address the inequities found in the city’s current medical marijuana industry and included provisions that provides genuine opportunity for Detroiters to create generational wealth.”

The ordinance is expected to create a new revenue stream estimated to be between $7 million and $8 million annually.

For more information about the adult-use marijuana ordinance or the social equity program component, reach out to councilmembertate@detroitmi.gov or visit https://www.jamestated1.com/adult-use-marijuana-ordinance.