One-stop marijuana shopping? State appears OK with it

LANSING -- Multiple marijuana establishments may be allowed by the state to locate in a shared facility once its licensing program takes effect, the Michigan Department of Licensing and Regulatory Affairs said Thursday. 

But the department, known as LARA, said in the same news release the decision could be subject to change.

Licensed establishments, according to LARA, including marijuana provisioning centers, growing facilities and processing facilities, will be allowed to "co-locate" in a single facility. 

Provisioning centers are commonly known in the Lansing area as dispensaries. City officials estimate there could be up to 80 of currently open. 

It's unclear if the state will eventually set a cap on the number of licensed provisioning centers that can operate in the same location.

"It is early, and there has not been any indication regarding that," said David Harns, a LARA spokesman. 

Each state-licensed establishment, according to LARA, will have to meet the following requirements to co-locate in a facility:

• Have separate working areas, entrances and exits; separate point of sale operations (if applicable), and separate record keeping systems. 
• Post each license on the wall of its working area.
• Be compliant with local ordinance and zoning regulations , and local and state regulations regarding building inspection, fire safety and public health.

Lansing likely won't allow multiple dispensaries to operate in a single facility because its recently passed ordinance has specific zoning requirements. 

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Lansing's ordinance sets a licensing cap of 25 for dispensaries. It also has zoning requirements that require dispensaries to be 1,000 feet from schools and 500 feet from other dispensaries, parks and churches. 

The city's ordinance also states dispensing of marijuana is prohibited at a processor or secure transporter facility "except as authorized by Lansing City Charter and state law." 

City Clerk Chris Swope said Thursday that Lansing's ordinance takes effect Oct. 7, but he has the authority to decide when local applications will be available and accepted. 

Dates for applications haven't been set yet, Swope said. 

The city isn't expected to grant licenses until state officials have their own licensing structure in place. The state is expected to have applications for licenses available on its website Dec. 15. 

Under the ordinance, Swope is expected to score each application according to several requirements the business is required to meet. His office will get assistance from paid marijuana experts.

Swope's office is expected to accept an unlimited number of license applications for marijuana establishments, including those for dispensaries.

During the first license application review process, up to 20 dispensary licenses could be granted by Swope. A second phase could grant dispensary licenses for up to five more establishments. 

"It's not first come, first serve," Swope said of the license granting process for dispensaries. "It's best quality." 

An unpaid five-member commission will be "an appeals body" for those who sought dispensary licenses but didn't get approved, Swope said. 

Under the city's ordinance, licenses for all establishments will be for one year and can be renewed. The ordinance doesn't set a cap for marijuana growing, processing, transport and testing facilities, although those establishments also will be required to get licensed by the city and state. 

At-Large City Council Member Carol Wood said LARA's news Thursday to allow co-location for establishments is proof that proposed marijuana regulations at the state level remain a moving target.

She questions why the majority of council members appeared in a hurry to pass an ordinance this month. The ordinance passed with a 5-3 vote.

"They are still flushing things out and will continue to flush things out until December," Wood said of the state.

After passage of Lansing's ordinance, Mayor Virg Bernero said it will "ensure quality product to those in need, help create hundreds of jobs and unleash millions of dollars in new investment in our city." 

The state licensing board's next meeting is 1:30 p.m. Oct. 17 at the Kellogg Hotel & Conference Center, 219 S. Harrison, in East Lansing. The meeting will be open to the public and is expected to be streamed live at michigan.gov/bmmr. 

Contact Eric Lacy at (517) 377-1206 or elacy@lsj.com. Follow him on Twitter @EricLacy.