Some recreational cannabis activities may open in Detroit despite bans because city leaders took too long to seize.
Detroit City Council introduced the ban on November 5 – five days after the state's Marijuana Regulatory Agency (MRA) began applying for recreational spot businesses, including dispensaries, growers and processors.
However, under the state law that legalized recreational marijuana, the MRA must "approve a state license application" if the proposed activity applies before a community imposes a ban and meets all qualifications.
MRA spokesman David Harns confirmed to the Metro Times that companies that applied for the ban are eligible for a license.
"If we receive an application and there were no prohibitive regulations in place, that application will be granted if all the criteria are met," says Harns.
Council members said the ban is temporary and intended to give the city more time to establish regulations for recreational activities for marijuana. It is unclear why the council waited a year before discussing regulations.
Detroit is among 79% of Michigan communities that banned recreational activities for marijuana, despite the promise of new tax dollars and economic development. Many have adopted a wait-and-see approach and could look into the matter later.
As of December 1
In the first full fiscal year, sales of marijuana are estimated to generate $ 180.5 million in taxes, according to the Michigan Senate Fiscal Agency. The number is expected to grow to $ 287.9 million by 2022-23.
Detroit's decision to wait until after the application process starts is good news for companies that applied before November 5. But for those proposed businesses that did not, they must wait until the council adopts new regulations and lifts the ban. This will create a competitive advantage for businesses that applied for the ban.
It is unclear which businesses or how many of those who applied for the ban came into force. The state withholds this information until applications are approved.
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