Federal Judge Halts Detroit’s Cannabis Licensing Over ‘Legacy’ Provisions Lawsuit

A federal judge on Wednesday issued a temporary restraining order halting Detroit, Michigan’s adult-use cannabis licensing process over its legacy licensing plan that gives Motor City residents preferential status and fee discounts, MLive reports. The lawsuit by Crystal Lowe, who hopes to open a retail cannabis shop in the city, claims the rules run afoul of both the state and U.S. Constitution.

Kevin M. Blair, of Honigman law firm who is representing Lowe, claims in the motion the city’s rules amount to “pure economic protectionism.”

“Time and again, Michigan courts have struck down municipal licensing schemes for private businesses that discriminate based on residency.” – Blair, in the lawsuit, via MLive

Detroit’s retail cannabis licensing plan calls for 50% of up to 75 new retail businesses be owned by legacy residents and the 50% legacy minimum applies to most other industry license types. Legacy applicants also receive a 99% discount on fees this year, a 75% discount next year, and the opportunity to purchase city-owned land at a 25% discount.

Legacy applicants are defined by the city as individuals that have lived in Detroit for 15 of the last 30 years; 13 of the last 30 years and are low income; or for 10 of the last 30 years and have a cannabis conviction or a parent with a cannabis conviction.

U.S. District Judge Bernard Friedman issued the temporary restraining which prohibits city officials from receiving any more industry applications until at least April 21 or April 22, when a hearing will be held to determine if a preliminary injunction will be issued. A preliminary injunction could mean no industry licenses are issued until the lawsuit is settled.

The city’s ordinance includes language that says no licenses will be issued or renewed if any part of the local law is deemed unconstitutional or otherwise struck down. The city had planned to begin issuing licenses on May 1.

Detroit Corporation Counsel Lawrence Garcia indicated that Detroit’s Civil Rights, Inclusion and Opportunity Office would “reach out to certified Legacy Detroiters to offer general advice and support while the litigation is pending.”

Originally Published on 2021 04 09 by TG Branfalt | Ganjapreneur.com

Thank you for joining us today for our latest news post. If you have any questions or comments about this post, we’d love to hear from you in the comments! Join the FindHempCBD.com newsletter to stay up to date on the latest Industry News and keep an eye out for our next news article!

Disclaimer: This content was sourced from Ganjapreneur.com and republished to our website to add value and additional content for our readers. In order to maintain the safety, functionality, and integrity of FindHempCBD.com, the sourced content may have been altered. To access the original content, please click the link below:


Share on email
Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Share on reddit
Share on tumblr
The Editor

The Editor

FindHempCBD.com is the internet's largest CBD stores directory. Browse 100s of CBD businesses, find CBD near you, and more!
  • Comments are closed.
  • Sign Up For Our Newsletter

    Stay informed with the latest articles on our CBD blog

    Related Posts

    CBD hemp oil, Hand holding bottle of Cannabis oil against Marijuana plant. Herbal Treatment, Alternative Medicine

    How CBD Can Help You

    With more and more CBD products entering the market every year, the CBD industry is growing at a rapid pace. The industry is projected to

    Pin It on Pinterest