Cannabis legalisation in Canada: The challenges in a federated country

Transcription

1 Cannabis legalisatin in Canada: The challenges in a federated cuntry Dr Marian Shanahan, NDARC, UNSW & Prfessr Philippe Cyrenne, University f Winnipeg

2 Outline Backgrund Legalisatin f cannabis verview Lessns frm ther prducts A framewrk fr cnsidering plicy ptins 2

3 Backgrund 12.2% f Canadians reprted cnsuming cannabis in past year (2012 data) A third (33.3%) f 18 t 24 year-lds reprted using in the past year & 4.9% reprt daily use Prjectins: Canadians will cnsume 655 metric tnes f cannabis in 2018 Incnsistent applicatin f cannabis laws with accusatins f racial prfiling 2015 electin prmise by Justin Trudeau and the Liberal Party t legalise, regulate, and restrict yuths access t marijuana 3

4 Medicinal cannabis histry 1999 Medicinal cannabis permitted by issuing exemptins (challenged in Supreme Curt) 2001 Regulatry framewrk fr cannabis (MMAR) nly persnal cultivatin permitted 2014 Marijuana fr Medical Purpses Access Regulatins (MMPR) fllwing further curt challenges cmmercial prductin nly prducers licenced by Health Canada 2016 Cnstitutinal challenge: cmmercial prductin did nt prvide reasnable access Access t Cannabis fr Medical Purpses Regulatins licenced prducers and hme grwing permitted This has led t > 60 cmpanies listed as trading in cannabis/ cannabis prducts/ cannabis implements 4

5 Canadian Cannabis Act (Bill C-45) Intrduced int Canadian Parliament n April 2017 Intent - recreatinal cannabis t be legalised n 1/7/2018 Parliamentary hearings nging Stated bjectives t restrict yung persns access t cannabis t prtect public health and safety thru strict prduct safety and quality regulatins t deter criminal activity by impsing serius criminal penalties fr perating utside the law t reduce the burden n the criminal justice system 5

6 Devil is in the detail (r nt) The Act (as it is currently prpsed) Permits pssessin f 30 grams f dried cannabis (r equivalent) per persn & up t 4 plants per husehld N sale f edibles at this time Restricted t thse at least 18 years f age Permits n-line sales fr regins nt able t supply Authrises persns t pssess, sell r distribute cannabis if they are authrised t d s under a prvincial Act Prhibits any prmtin, packaging and labelling that might be appealing t yung persns Authrises making f regulatins re: quality, testing, cmpsitin, packaging and labelling f cannabis 6

7 Devil is in the detail (r nt) Creates indictable ffences fr: Illegal pssessin: ptential penalties f fines up t $5000 &/r imprisnment f nt mre than 6 mnths Illegal distributin: ptential penalties f fines up t $15,000 &/r imprisnment f nt mre than 18 mnths Fr an rganisatin a fine f nt mre than $100,000 7

8 Prvincial and territry respnsibilities Federal Act recgnises cnstitutinal rles f the prvinces and transfers cnsiderable respnsibility fr, e.g. Enfrcement f the distributin and retail structure (gvernment mnply, private r mix) Establishing zning regulatins Restrictins n where cannabis can be cnsumed Safe driving laws and enfrcement Minimum age, as lng as it is at least 18 years Decide wh gets prductin rights Setting prices and tax rates Federal GST is 5% and PST frm 0% t 10% 8

9 Trade-ff between taxatin and markets Surce: R Wynch CD Hwe Institute 2017

10 Prvincial prpsals t date: Ontari (prpsed): Minimum age 19 years Cnsume nly in private residences (nt in public places, wrkplaces, r in mtr vehicles) Illegal dispensaries will be shut dwn Sld in 150 standalne stres, gvernment cntrlled Staff trained fr scially-respnsible sales Prduct will all be behind the cunter Driving: zer tlerance (n detectable cannabis) if aged 21, nvice drivers, and all cmmercial drivers 10

11 New Brunswick (NB) Created a Crwn Crpratin t versee sales f recreatinal cannabis Signed supply agreements with 2 federally licensed medical cannabis prducers British Clumbia (BC) suggestins that Distributin might vary by lcatin (& include private wned dispensaries) Municipalities will likely have decisin making pwers Likely will nt fllw Ontari Age likely t be harmnised with alchl (19 years) 11

12 Lessns frm Alchl sales Cnstitutinally the sale f alchl is a prvincial respnsibility Traditinally limited mvement acrss brders but there has always been illegal mvement f alchl acrss prvincial brders (recent challenges in Supreme Curt) Sales taxes vary by prvince frm 5% t 15% f price; Prices have varied cnsiderably frm ne prvince t anther Prvinces can set the prices fr prducts where they cntrl retail sales 12

13 Lcatin f alchl sales (10 prvinces) Cnvenience / Grcery Stres Gv t run utlets/ r licenced franchise Sme private sectr utlets Private Sectr nly Beer Wine Spirits

14 Legal age fr alchl & taxes n gds/services Minimum Legal Age Fr alchl 18 years 5% 5% 5% All ther Prvinces 19 years 14.97% 15% 12% 5% 11% 13% 13% 14

15 Supply management agricultural marketing bards Federal gvernment has limited the imprt f certain agricultural prducts permitted prducers t act cllectively t crdinate the prductin thrugh qutas manage distributin f certain agricultural prducts t stabilise prices and nt rely n taxpayer subsidies 15

16 Wheat marketing bard (WMB) All prairie farmers were required t sell t WMB (est 1935) farmers were cncerned abut individual pricing pwer an initial average price was paid t farmers nce n-sld a residual payment was distributed Single-desk mdel was discntinued in 2012, and the CWB became a vluntary marketing rganisatin despite plebiscite where 62% f wheat farmers wanted it t remain (disparity east t west, between large and small farmers) based n a plebiscite shuldn t trump the individual rights f farmers t market their wn grain (PM Harper). Mdel used fr ther agricultural prducts in Canada WMB ppsed by WTO and US (NAFTA) 16

17 Canadian dairy industry Managed supply 2 nd largest agricultural industry in Canada Planned dmestic prductin Pricing and dairy prduct imprt cntrls Highly cntested by the US (which has versupply and lwer prices) Currently under threat 17

18 Scial csts, state regulatin and legal sanctins 100 A Degree f legal sanctin 0 B Degree f scial csts Degree f gvernment regulatin Cyrenne & Shanahan. Twards a Regulatry Framewrk fr the Legalizatin f Cannabis: Hw d we get t there frm here? (under review) 18

19 Thank-yu 19

20 Other Issues Cntaminated cannabis wh is respnsible? suggestin that nne f the available fungicides are suitable fr a prduct which will underg cmbustin Internatinal drug cntrl treaties Appears Canada has nt applied t withdraw Optins Withdraw (timing) Ignre (prblematic) Apply fr special exceptin (special snwflake as the press puts it) Amend the cnstitutin (difficult if nt impssible) 20

21 Cannabis start-up Majr Canadian stck market refusing t list cmpanies prducing/ selling cannabis if they als d business in the US (b/c cannabis illegal in the US) There TSX Venture Exchange Canadian Securities Exchange Many CEOs, CFOs, investrs have strng plitical cnnectins US Federal banks and gvernment 21