OWOSSO — Owners of medical and recreational marijuana licenses can now transfer them to other entities, members of the Owosso City Council have decided.
On Monday, following a public hearing, the council voted 6-0 to permit the transfers, which are allowed under state law but until now not local ordinances.
“I think we missed this with our draft ordinance,” City Manager Nathan Henne said. “It’s unrealistic to think these licenses won’t transfer locally. They would mostly occur through a sale.”
The ordinance amendment will allow license transfer under the following conditions:
n The licensee must submit to the city clerk a written request to transfer license indicating the current licensee and the proposed licensee.
n Proposed licensee delivers the application fee in full, as already required by city ordinances, and submits an application.
n The application will be reviewed by city council, at whose sole discretion the transfer will be approved by resolution.
The ordinance amendments would make the attempted transfer, sale, or other conveyance of an interest in a license without resolution approving transfer by council grounds for suspension or revocation of the license.
The city of Owosso will receive a $5,000 license fee for each license transfer. Henne said license holders can transfer their licenses even if they never opened a marijuana business.
As a practical matter, because recreational and medical marijuana must be sold from the same location and owner, license holders can’t separately transfer licenses for the different types of marijuana sales, city attorney Scott Gould said.
Henne previously said in a memo to council that the state’s vetting process for all license holders is sufficient to ensure that any transferee is eligible to hold a marijuana license in the city.
The vote approving the transfers was 6-0. Council member Dan Law was absent.