LANSING — City Council has introduced an ordinance that would allow up to 28 cannabis retailers and as many as four social clubs where patrons could use marijuana in Lansing.

Additionally, the rules would set a cap marijuana growers and eventually permit up to 55 of those facilities.

City Council plans to vote Sept. 30 on the new rules which would amend a medical marijuana ordinance adopted by the council in 2017. Medical marijuana use has been legal statewide since 2008. Michigan voters legalized recreational marijuana use in 2018.

A discussion of the amendments is set for 5:30 p.m Sept. 23 during council's Committee of the Whole.

Key provisions in the proposal include:

Raise cap on stores: The proposal, referred from council's public safety committee to the full council this week, would allow up to 28 stores to sell cannabis for recreational and/or medical use. Under Lansing's existing ordinance, as many as 25 medical marijuana dispensaries can sell the drug to patients. The latest proposal would also allow businesses, known as retailers, to sell the drug to people without state-issued medical marijuana cards. A single location could be licensed as both a medical dispensary and recreational retailer. Lansing Mayor Andy Schor asked council in July to raise its cap on stores from 25 to 28.

The proposal, referred from council's public safety committee to the full council this week, would allow up to 28 stores to sell cannabis for recreational and/or medical use. Under Lansing's existing ordinance, as many as 25 medical marijuana dispensaries can sell the drug to patients. The latest proposal would also allow businesses, known as retailers, to sell the drug to people without state-issued medical marijuana cards. A single location could be licensed as both a medical dispensary and recreational retailer. Lansing Mayor Andy Schor asked council in July to raise its cap on stores from 25 to 28. Allow up to four one-stop pot shops: Lansing would open its doors to up to four (one in each city ward) one-stop pot shops, defined as "microbusinesses" in Michigan regulations. The shops are perhaps analogous to microbreweries for beer. A cannabis microbusiness is allowed to grow up to 150 marijuana plants, process that product and then sell it to customers on site. That's in contrast to licensed retailers and dispensaries, which can sell marijuana but cannot grow or process it. City Council Vice President Peter Spadafore said he supports the microbusiness concept because the small-scale business model will be accessible "mom and pop" entrepreneurs.

Lansing would open its doors to up to four (one in each city ward) one-stop pot shops, defined as "microbusinesses" in Michigan regulations. The shops are perhaps analogous to microbreweries for beer. A cannabis microbusiness is allowed to grow up to 150 marijuana plants, process that product and then sell it to customers on site. That's in contrast to licensed retailers and dispensaries, which can sell marijuana but cannot grow or process it. City Council Vice President Peter Spadafore said he supports the microbusiness concept because the small-scale business model will be accessible "mom and pop" entrepreneurs. Allow up to four marijuana social clubs: Michigan's recreational marijuana rules create a new category of business known as a "designated consumption establishment." The intent is to create a supervised social space, where people can use marijuana legally and safely, At-Large City Council Member Patricia Spitzley said. Council's proposal would limit marijuana social clubs to one in each ward, or four total. Such a business could sell marijuana to customers if it also obtained a retailer or microbusiness license. If not, the business would be BYOW (Bring Your Own Weed) for customers ages 21 and over. The clubs would be prohibited from serving alcohol and could only be open between the hours of 9 a.m. and 10 p.m.

Michigan's recreational marijuana rules create a new category of business known as a "designated consumption establishment." The intent is to create a supervised social space, where people can use marijuana legally and safely, At-Large City Council Member Patricia Spitzley said. Council's proposal would limit marijuana social clubs to one in each ward, or four total. Such a business could sell marijuana to customers if it also obtained a retailer or microbusiness license. If not, the business would be BYOW (Bring Your Own Weed) for customers ages 21 and over. The clubs would be prohibited from serving alcohol and could only be open between the hours of 9 a.m. and 10 p.m. Set cap on growers: Council could allow up to 75 grow facilities initially and then lower that cap to 55 grow licenses by Jan. 1, 2021. The starter cap would grandfather in scores of establishments (as many as 75 by some estimates) that could receive medical marijuana grow licenses before council adopts new rules, Spitzley said. Lansing's existing medical marijuana ordinance does not limit the number of businesses that can receive licenses to cultivate cannabis. Marijuana business licenses in Lansing must be renewed annually, so the city could reduce the number of growers by choosing not to renew some licenses.

Council could allow up to 75 grow facilities initially and then lower that cap to 55 grow licenses by Jan. 1, 2021. The starter cap would grandfather in scores of establishments (as many as 75 by some estimates) that could receive medical marijuana grow licenses before council adopts new rules, Spitzley said. Lansing's existing medical marijuana ordinance does not limit the number of businesses that can receive licenses to cultivate cannabis. Marijuana business licenses in Lansing must be renewed annually, so the city could reduce the number of growers by choosing not to renew some licenses. Eliminate appeals board: Lansing's city clerk has the power to grant or deny cannabis business licenses. Under the current system, rejected applicants may appeal a license denial to the clerk's office and then to an appointed board of five citizens. The new proposal would eliminate the appeals board, known as Lansing's MedicalMarihuana Commission, and allow applicants to appeal only to the city clerk. It's been difficult for the volunteer appeals board to wrestle with the complexity of the city's application scoring system, Swope said. Members of the board are appointed by the mayor and approved by city council. Additionally, the process has been complicated because, although medical marijuana license applications are shielded from disclosure under the state's Freedom of Information Act, Medical Marihuana Commission meetings are public, Swope said. Businesses face revealing potentially confidential trade secrets from their applications in order to mount an appeal, according to the clerk. "It just creates one more layer of bureaucracy and delay," Spitzley said of the commission.

Council members expect the new rules will take effect by the start of November — 30 days after council's vote at the end this month.

After that, Swope anticipates it will take his office at least several months to issue the first licenses to new categories of recreational businesses.

Voters statewide, including 71% of voters within the city of Lansing, decided in November 2018 to legalize recreational marijuana. Cities and villages can't stop adults from using cannabis, but local officials have the authority to ban or limit marijuana businesses within their jurisdictions.

Schor supports the ordinance, although the mayor said he would have preferred some tweaks such as allowing more retailers.

The proposal respects the will of voters who legalized marijuana, Schor said, while also avoiding "the wild, wild West days" of unregulated businesses.

Contact Sarah Lehr at (517) 377-1056 or slehr@lsj.com. Follow her on Twitter @SarahGLehr.