LOCAL PROPOSAL PETITION

To the Honorable City Clerk of the City of Port Huron: We, the undersigned qualified and registered electors, residents in the City of Port Huron, in the County of
St. Clair, in the State of Michigan, respectively petition for initiation of an ordinance to amend the citizen initiative passed by the electors of the City of Port Huron
on November 3, 2020 in order to expedite medical marihuana licensing in the City, to ensure the City remains in compliance with State law in order to reduce
lawsuits against the City and to avoid wasting City funds. We respectfully request that this ordinance be adopted by the City Council, and that if it be not so
adopted, that it be submitted to a vote of the electors of the City of Port Huron for the August 3rd, 2021 Regular Election.

AMENDMENT TO INITIATED ORDINANCE NUMBER 2020-0001

COMPLIANCE WITH THE MRTMA

THE CITY OF PORT HURON ORDAINS:

The purpose of this Ordinance is to promote the general welfare of the City of Port Huron residents, and to ensure the City complies with the Michigan Regulation
and Taxation of Marihuana Act. This Ordinance is a limited amendment to Initiated Ordinance No. 2020-0001 which was passed by the voters of the City of Port
Huron on November 3rd, 2020. The provisions of this Ordinance are severable and self-executing. This Ordinance is hereby declared necessary to preserve the
public peace, health, safety and welfare of the People of the City.

This ordinance is an amendment to Initiated Ordinance No. 2020-0001. All other provisions of Initiated Ordinance No. 2020-0001 outside of and unaffected by
Section 16 below shall remain unchanged. The various parts, sections and clauses of this Ordinance are hereby declared to be severable and self-executing. If
any part, sentence, paragraph, section or clause is adjudged unconstitutional or invalid as to any person or circumstance by a court of competent jurisdiction, the
remainder of the Ordinance shall not be affected thereby and that invalidity or unenforceability shall not affect the validity, enforceability, or application of any other
portion of this Ordinance. Ordinances may be enacted to facilitate operation of this Ordinance. This subsection shall be liberally construed in favor of voters' rights
in order to effectuate its purpose. The provisions of this Ordinance are regulatory in nature and not intended to be interpreted as zoning laws. If any portion of this
subsection is held invalid or unenforceable as to any person or circumstance, that invalidity or unenforceability shall not affect the validity, enforceability, or
application of any other portion of this Ordinance. In cases where there is a conflict between the MMFLA and the MRTMA, the MRTMA shall control.

The following Section 16 shall be added to Initiated Ordinance Number 2020-0001 which was adopted by the voters of the City of Port Huron on November 3,
2020. (New language appears in bold and capitalized).

SECTION 16: NEW PROCESS REGARDING THE AWARDING OF PROVISIONAL LICENSES FOR MARIHUANA ESTABLISHMENTS

(A) THE CITY SHALL BE PROHIBITED FROM PERMITTING ANY MARIHUANA ESTABLISHMENTS LICENSED PURSUANT TO THE MRTMA TO
OPERATE IN THE CITY UNTIL AT LEAST THREE (3) MARIHUANA FACILITY PROVISIONING CENTERS HAVE BEEN APPROVED BY THE AGENCY TO
OPERATE IN THE CITY.

(B) SECTION 4(C) OF THE ORDINANCE SHALL BE REPEALED.

(C) ALL PROVISIONAL LICENSES PREVIOUSLY ISSUED FOR MARIHUANA RETAILERS AND DESIGNATED CONSUMPTION ESTABLISHMENTS
SHALL BE VOIDED AND IMMEDIATELY TERMINATED UPON THE ADOPTION OF THIS AMENDMENT, AND THE CITY SHALL RETURN ANY APPLICABLE
APPLICATION FEES TO ALL LOCAL APPLICANTS WHO SUBMITTED SUCH APPLICATIONS.

(D) THE EXISTING SCORING SYSTEM AND APPLICATION PROCESS FOR RECREATIONAL MARIHUANA ESTABLISHMENTS ARE HEREBY
REPEALED, BUT THE EXISTING SCORING SYSTEM AND APPLICATION PROCESS FOR MEDICAL MARIHUANA FACILITIES SHALL REMAIN IN PLACE.
WITHIN FIFTEEN (15) DAYS AFTER AT LEAST THREE (3) MARIHUANA FACILITY PROVISIONING CENTERS APPROVED BY THE AGENCY HAVE BEEN
OPERATING WITHIN THE CITY, THE CITY OF PORT HURON SHALL BEGIN ACCEPTING APPLICATIONS FOR MARIHUANA ESTABLISHMENTS AND
AWARD PROVISIONAL LICENSES USING A COMPETITIVE PROCESS INTENDED TO SELECT THOSE APPLICANTS WHO ARE BEST SUITED TO
OPERATE IN COMPLIANCE WITH THE MRTMA. THIS NEW APPLICATION WINDOW FOR MARIHUANA ESTABLISHMENTS SHALL REMAIN OPEN FOR
FIFTEEN (15) DAYS. THE CITY SHALL ISSUE PROVISIONAL LICENSES WITHIN THIRTY (30) DAYS AFTER THE APPLICATION WINDOW CLOSES.

(E) THIS AMENDMENT SHALL NOT IN ANY WAY AFFECT PROVISIONAL LICENSES THAT HAVE BEEN PREVIOUSLY ISSUED FOR MARIHUANA
FACILITIES (MEDICAL MARIHUANA FACILITIES) BY THE CITY NOR ALTER IN ANY WAY THE PROCESSES OR PROCEDURES FOR PROVISIONAL
LICENSES THAT HAVE BEEN ISSUED OR GRANTED FOR MARIHUANA FACILITIES BY THE CITY PRIOR TO THE ENACTMENT OF THIS AMENDMENT.