AMCTO Municipal Law Enforcement Forum. Legalization of Cannabis May 2017

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1 AMCTO Municipal Law Enforcement Forum Legalization of Cannabis May 2017

2 Introduction Comprehensive panel discussion with a group of experts representing a broad range of expertise and insight Panel will provide perspective from a federal, provincial and municipal perspective Following the panel discussion, there will be an interactive session to look at municipal concerns within the compliance and enforcement field

3 Introduction Eric Costen, Director General, Cannabis Legalization & Regulation Secretariat Anne Marie Predko, Executive Director, Ontario Legalization of Cannabis Secretariat Pat Burke, District Manager, Municipal Standards and Licensing, City of Toronto Craig Reid, Senior Advisor, Policy and government Relations, AMO Geoffrey Uyeno, Solicitor, Legal Services Division, City of Toronto

4 Current Situation Federal gov t intention to legalize cannabis Bills C-45 and C-46 introduced on April 13th Bill C-45 distinguishes areas of jurisdiction between federal and provincial governments

5 Government of Canada An Overview of the Government of Canada s Approach to Legalize, Regulate and Restrict Access to Cannabis Eric Costen, Director General, Cannabis Legalization & Regulation Secretariat

6 I m here today to provide 1 Context for the Government of Canada s plan to legalize, regulate and restrict access to cannabis 2 An overview of the proposed Cannabis Act 3 Information on Government of Canada activities in support of this initiative 6

7 Percent Current Context Cannabis is the most used illicit substance in Canada Source: Canadian Tobacco Alcohol and Drugs Survey

8 Current Context (cont.) and Canadian youth use cannabis more than their peers in most developed countries. Source: Health Behaviour in School-Aged Children Study: Report from 2013/2014 Survey 8

9 Current Context (cont.) Public health and safety concerns Health risks from early and heavy use No control on product safety, potency and quality Drug-impaired driving Broad, entrenched illicit market Burden on justice system, and associated social impacts Laws not well understood, inconsistently applied 9

10 Government of Canada Objectives To create a new system for cannabis that will: restrict youth access to cannabis protect young people from enticements to use cannabis provide for a legal cannabis market capable of displacing the illegal market deter criminal activity by imposing serious criminal penalties for those breaking the law protect public health through strict product safety and quality requirements reduce the burden on the criminal justice system allow adults to possess and access regulated, quality controlled cannabis 10

11 Lessons Learned Canada has experience regulating access to alcohol, tobacco, pharmaceuticals and medical cannabis. One other country (Uruguay) and 8 U.S. states and the District of Columbia have taken steps to legalize and regulate cannabis. Key Takeaways: Complex, multi-year initiative Adaptability and flexibility Public education Consultation and collaboration Enforcement Monitoring and ongoing system refinement 11

12 The Task Force on Cannabis Legalization and Regulation June 30, Task Force created to advise on new system for cannabis. The final report includes more than 80 recommendations. Guiding Principles Precautionary approach - start restrictive; monitor and adapt Public health - reduce harms and risks of use Public safety - focus on serious offences, enforceability 12

13 Proposed legislation Bill C-45 On April 13, 2017, Bill C-45 (the Cannabis Act) was introduced in the House of Commons by the Minister of Justice. The Act would use federal criminal law power to create a strict framework to control and regulate the production, distribution, sale and possession of cannabis. The Cannabis Act proposes: many rules that would protect youth from accessing cannabis offences targeting those acting outside the legal framework, such as those involved in organized crime Penalties would be set in proportion to the seriousness of the offence. Sanctions would range from warnings and tickets for minor offences to criminal prosecution and imprisonment for more serious offences. 13

14 Proposed legislation Bill C-45 (cont.) Federal, provincial and territorial governments would all have roles under the new system. The federal government would: license and set strict requirements for producers who grow and manufacture cannabis set industry-wide rules and standards, such as: o types of cannabis products that will be allowed for sale o prohibiting the use of certain ingredients o restrictions on promotional activities 14

15 Proposed legislation Bill C-45 (cont.) The provinces and territories would license and oversee the distribution and sale of cannabis, subject to federal conditions. They could also: o o o o increase the minimum age in their province or territory (but not lower it) lower the personal possession limit create additional rules for growing cannabis at home, such as lowering the number of plants per residence restrict where adults can consume cannabis, such as in public or in vehicles 15

16 Proposed legislation Bill C-45 (cont.) Protecting Youth Two new criminal offences with maximum penalties of 14 years in jail for: giving or selling cannabis to any person under the age of 18, and using a youth to commit a cannabis-related offence The Act would also prohibit: products that are appealing to youth packaging or labelling cannabis in a way that makes it appealing to youth selling cannabis through self-service displays or vending machines promoting cannabis, except in circumstances where the promotion is factual and could not be seen by a young person 16

17 Proposed legislation Bill C-45 (cont.) Other features Access to cannabis for medical purposes would be maintained. It would be illegal to import or export except for: medical and scientific purposes industrial hemp Industrial hemp would transition to the new Act. hemp industry would continue to be subject to current rules 17

18 Proposed legislation Bill C-45 (cont.) Subject to approval by Parliament, the Act would come into force no later than July At that time, adults who are 18 years or older would be able to legally: purchase dried or fresh cannabis and cannabis oil from a provincially-licensed retailer Other products, such as edibles, would be made available for purchase once appropriate rules for their production and sale are developed In those provinces that do not have a regulated retail framework, individuals would be able to purchase cannabis online from a federally-licensed producer 18

19 Proposed legislation Bill C-45 (cont.) Should the Cannabis Act become law in July 2018, adults who are 18 years or older would be able to legally: possess up to 30 grams of legal dried cannabis or equivalent in non-dried form share up to 30 grams of legal cannabis with other adults grow up to 4 cannabis plants, up to a maximum height of 100cm, per residence for personal use from legal seeds or seedlings make cannabis products, such as food and drinks, at home provided that organic solvents are not used 19

20 Data and Monitoring: Measuring the Impact Proactive data collection, monitoring, surveillance and analysis prior and after legalization will be valuable for policy development and monitoring the health and safety impacts. Canada is engaged in a number of surveillance and research activities: Development and implementation of a core and expanded set of baseline data indicators Canadian Cannabis Survey Canadian Surveillance System for Poison Information Development of a National Drugs Observatory Development of a National Research Agenda on cannabis for non-medical purposes Budget 2017 committed $9.6 million to public awareness campaign to inform Canadians, especially youth, of the health and safety risks of cannabis consumption, and to surveillance activities. 20

21 Public Education and Awareness Activities Work has begun, with social media activities delivering credible, consistent, evidence-informed messages to: raise awareness of health and safety risks, especially for youth provide advice to parents for talking with their teens inform the public of the dangers of drug impaired driving convey what is legal and what is not (and when) 21

22 Engagement and Collaboration The design, implementation and evaluation of the new framework requires engagement and collaboration with a diverse and informed community. 22

23 Next steps Over the coming months, Bill C-45 (the Cannabis Act) and Bill C-46 (on drug- and alcohol-impaired driving) will be debated in both the House of Commons and the Senate, and studied by Parliamentary committees. Work on regulations to support the proposed Cannabis Act: The results of the Canadian Cannabis Survey will be released in fall Public education and awareness activities will continue. 23

24 Contact: Cannabis Legalization and Regulation Secretariat 24

25 Province of Ontario Anne Marie Predko Executive Director Ontario Legalization of Cannabis Secretariat Ministry of the Attorney General Province of Ontario

26 Ontario s Goals Ontario is committed to building a balanced regulatory framework that complements the federal framework and emphasizes: The protection of youth and vulnerable people The promotion of public health; The promotion of public safety, particularly road safety; Prevention of harm and harm reduction. These guiding principals will inform the choices that Ontario makes to respond to this federal initiative.

27 Ontario s Approach Legalization of Cannabis Secretariat: Ontario has established a dedicated Legalization of Cannabis Secretariat to coordinate legal, policy and program development across government, and align cannabis policy with other policy and program development. A Horizontal Approach: Ontario s response to legalization is collaborative across government. Thirteen ministries and Cabinet Office actively participate in a Steering Committee which oversees the work of six crossministerial working groups.

28 Municipal Interests There are many areas of municipal interest in the legalization of cannabis: licensing and zoning, enforcement, public health, and home growing of cannabis are just a few Ontario is committed to working with AMO and other municipalities to discuss these interests, consider potential solutions to respond to concerns municipalities have and to build a solution that mitigates municipal impacts Engagement will happen at an AMO sponsored table, directly with the City of Toronto (if they do not join the AMO table), through existing forums like the fire safety technical table and the Ontario Association of Chiefs of Police and through speaking opportunities like today

29 Municipal Governments and Legal Cannabis Craig Reid Association of Municipalities of Ontario

30 Context Federal Legislation in April 2017 legalization before July 2018 legal age four plant personal growing 30 gram possession federal licensing of growers/supply tools for driving enforcement provincial licensing of access to recreational cannabis including age and distribution channels, taxation/revenue

31 Context Left to provincial legislation and regulation Minimum Age 18 + Distribution System Default to Federal Public or Private Monopoly Private Market Mix Municipal Role? Business Licensing Proximity to Certain Establishments Schools, Day Cares Recreation Centres Etc.

32 AMO Taskforce AMO principles based on recognition that: municipal provision of safety, public health, infrastructure and other services is likely to be impacted by marijuana legalization Principles Municipal government flexibility (to have distribution outlets and decide how many) Recognition of local community impacts across province/nation (health and emergency services are likely to be impacted in all communities) Local governments need to be able to respond to local Information needed for municipal governments to make decisions on how to regulate locally (issues for consideration, powers and authorities, funding, etc.) Where growing/distribution concentration occurs, local governments should have financial stake (revenue tool for

33 AMO Position Includes: Licensing of growers and distribution outlets (including provincial monopoly) to respond to community concerns Municipal option of veto/opt out either officially or through licensing controls Recognizing that municipal governments will have increased pressure from cannabis for public health and safety services across provinces funding Current medical marijuana regulations should be revised to ensure local government licensing/influence esp. nuisance (noise, odour, etc.) Consumption venues should conform to tobacco smoking rules at least municipal governments

34 Why Municipalities Need to Be Included Municipal governments deliver physical and other services depended upon for economic development and daily life industrial grows need water, waste, roads, transit for workers, etc. Local communities need strong influence over businesses local tolerance for proximity, redress for nuisance, and ability to resolve behaviour if needed Cannabis use, for better or worse, still has social stigma imposing it on communities will reinforce stigma/resentment Municipal governments understand their communities, have preexisting land use plans, licensing, and economic development strategies built in consultation They can effectively control proximity and concentration issues and community relations needs through these tools Implications for municipal human resources and organizational management

35 Emergency and Health Services Impacts Recognize that individuals have access to cannabis NOW But, increases in consumption by legal age adults have occurred after legalization in other jurisdictions Ambulance calls Hospital visits Police road safety programs In US legalized states there has been an increase in illegal activity and growing by-product of state-by-state market Public health education Requires new tools and training for municipal staff

36 Emergency and Health Services Impacts Drugged driving requires new tests saliva test and blood test included in federal legislation with new penalties test kits are thought to be hundreds of dollars each Police training to recognize and administer tests will likely increase costs Impacts may be seen on greater scale in communities with fewer resources to manage them Funds needed to ensure there is a common level of safety and health service

37 Why Municipal Licensing? Local communities must have a strong say in how cannabis is produced and distributed in Ontario Balance between control and demand is delicate and best done at local level Provincial or federal governments are too far away from local concerns/environments to effectively site businesses and gauge community tolerance Response to evolving concerns is faster especially nuisance Major tool for local economic development planning can effectively develop clusters/concentrations (wineries in Niagara, craft brewers, etc.) Ability to include/require neighborhood relations plan as part of a license proactively mitigates community concerns and creates process for longer-term engagement If conditions not met local government can effectively suspend license or put in place terms and conditions

38 What Would a Municipal Licensing Regime Include?

39 Growing Operations Ownership criteria funding, prior convictions of owners Indoor/outdoor location Industrial water and wastewater services, waste management, energy Site security measures in place Odour control/nuisance/neighborhood relationship plan Transit, transportation of workers and product Municipal governments need a way to take action on bad actors/issues Health Canada may be remote

40 Ownership Criteria Security Monopoly or Private? Concentration in neighbourhoods Provincial/Municipal Distribution and Retail Location of Outlet Proximity to youth establishment Proximity to residential

41 Consumption Venues Some US jurisdictions did not legalize social consumption venues personal home consumption was the only option Denver passed Proposition 300 in 2017 allows licensing of certain venues (bars and restaurants, clubs) cannot smoke inside or in view of public and cannot sell cannabis where alcohol or food is sold If cannabis is legal to consume, people that choose to use it need a place to consume it Can lead to continued prohibition and public use with criminalization of those without a legal venue Need to consider whether dedicated places of consumption are within the local public interest Municipal governments would be better placed to designate consumption venues than the province or federal government non-smokers rights considered

42 Potential Opportunities Colorado $1.3 billion in sales, $200M state revenues $40 million to Public School Fund Pueblo County - $425,000 Cannabis Funded Scholarship For local postsecondary students

43 Potential Opportunities Canadian Market for Cannabis $5 - $7 billion

44 Potential Opportunities New Brunswick Investments in/incentives for growers College training program for grow workers Capitalize on legalization 300 jobs in 2 growers

45 Potential Opportunities British Columbia Kwantlen Polytechnic University Cannabis Professional Series growing facilities management marketing and business

46 Potential Opportunities Ontario Possible transition of tobacco farming Northern/rural communities in cannabis cultivation Craft cannabis? Growing and retail

47 Illegal Marijuana Storefront Locations in Toronto and the Legalization of Cannabis A M C T O M u n i c i p a l L i c e n s i n g a n d L a w E n f o r c e m e n t Forum M a y 1 1, P a t B u r k e, M u n i c i p a l L i c e n s i n g a n d S t a n d a r d s, C i t y o f T o r o n t o

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49 Timeline Feb Illegal Dispensaries May 2016 Project Claudia Oct 2016 Injunction Application Canna Clinic 4/20 April 2016 MLS Enforcement Initiative Re- Inspections March 9 Project Gator Cannabis Culture Continued Enforcement by ML&S and TPS 49

50 Zoning and Licensing Zoning Bylaw Licensing Bylaw Enforcement 50

51 Zoning and Licensing Bylaw Provisions (cont d) Zoning Bylaw Definition: Medical Marijuana Production Facility premises used for growing, producing, testing, destroying, storing or distribution of medical marihuana or cannabis authorized by licence issued by the federal Minister of Health. Licensing Bylaw: There shall be taken out by the following persons a licence from the Municipal Licensing and Standards Division authorizing them respectively to carry on their several trades, businesses, and occupations in the City of Toronto for which licence the person obtaining the same shall pay to the Municipal Licensing and Standards Division at the time of taking out such licence the fee fixed by this chapter, and no person shall, within the City of Toronto, carry on or engage in any of the said trades, businesses or occupations until he or she has procured such licence so to do. Every person who owns or keeps a place where foodstuffs intended for human consumption are made for sale, offered for sale, stored or sold. 51

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53 Illegal storefront enforcement Storefront cannabis dispensaries are not allowed under both the Health Canada Federal Regulations (Access to Cannabis for Medical Purposes - ACMPR) and the City's Zoning and Licensing Bylaws. Municipal Licensing and Standards and the Toronto Police Service have pursued the following enforcement activities: Notified sites of their illegal activities; issued caution letters regarding zoning breach and letters pursuant to Civil Remedies Act Executed search warrants and conduct ongoing inspections of sites Laid charges against employees, managers, property owners; and Notified encumbrances/banks that their clients may be utilizing properties for illegal purposes. Injunction applications pending court date September 24, TPS - CRIA submissions pending outcome 53

54 Applicable Zoning and Licensing Offences Business Owner Charge - Zoning Within a Commercial Residential ("CR") zone, use land, building or structure for a non-permitted use: to wit: Marihuana Dispensary. Contrary to sections 2.1.1(1) and of the Zoning By-law for the City of Toronto as amended; and contrary to section 67(1) of the Planning Act R.S.O CH 13, as amended. Property Owner Charge - Zoning Within a Commercial Residential ("CR") zone, permit the use of land, building or structure for a non-permitted use: to wit: Marihuana Dispensary. Contrary to sections 2.1.1(1) and of the Zoning By-law for the City of Toronto as amended; and contrary to section 67(1) of the Planning Act R.S.O CH 13, as amended. Business Owner Charge - Licensing Owner of Foodstuffs for sale No License; City of Toronto Municipal Code Chapter 545; Section 2A (16)), as Amended. Keeper of Foodstuffs for sale No License; City of Toronto Municipal Code Chapter 545; Section 2A (16), as Amended. (keepers are employees and/or managers). 54

55 Storefront dispensaries: enforcement outcomes Overview 188 illegal marihuana storefront operations investigated inspections year to date. 65 dispensaries currently open/operating 12 dispensaries that closed as result of ML&S enforcement now operate as online or mail delivery services. 4 Planning Act Search Warrants executed. Charges 89 property owners charged 208 business owners charged 168 employees charged 465 total charges to date 55 convictions to date Summary of Orders/Fines 24 prohibition orders 5 probation orders 4 closure orders $54,700 total fine amount 55

56 Municipal Concerns City of Toronto staff have convened an internal interdivisional working group on the Legalization of Cannabis. Highlighted issues to consider as the Federal and Provincial governments proceed to legalize cannabis and permit retail sales. These concerns include: o o o o o Locations and concentration of retail outlets Resources/tools for local enforcement (funds, taxation powers, information sharing) Enforcement/oversight of personal cultivation Nuisance and fire hazards (production sites and personal cultivation) Clear communication of rules in the interim retail is currently illegal. 56

57 Personal Cultivation Fire hazard: o Home-based cultivation can pose a fire hazard, particularly if oil extraction and refining is taking place. o Extraction will be prohibited, but how will we ensure that individuals do not try this at home? Home Cultivation: o Potential abuse of growing more plants than allowed o Impact on residents residing in apartment/condo buildings, townhomes etc..(odour, mold, air quality, waste disposal) 57

58 353 Eglinton Ave West - Extraction 58

59 103 West Lodge Extraction 59

60 Designated Grower s Licence 60

61 Next Steps: reviewing the tabled bill to determine possible considerations and impacts to the City working with Province to provide feedback and input into developing options for retail distribution model reviewing current zoning bylaws regarding possible distribution models transparency and open lines communication key to properly implementing and enforcing the new and current Federal regulations 61

62 MLS will continue to enforce the law as it is written new Federal regulations are in place. 62

63 PROJECT CLAUDIA & THE FUTURE MUNICIPAL REGULATION OF CANNABIS Geoff Uyeno, Solicitor, City of Toronto Noushin Mazrooyi, Prosecutor, City of Toronto The information and comments expressed in this presentation are the personal thoughts and perspectives of the authors (except where otherwise attributed or footnoted) and do not reflect the opinions of the City of Toronto.

64 Why was it called Project Claudia? Chief Saunders said the name was chosen to reflect the way the problem was growing so rapidly, but did not elaborate. Constable Wendy Drummond said the name was chosen to resemble the way weather services name hurricanes, likening the growth of pot dispensaries across the city to a fastdeveloping storm. Laurent Bastien And Jeff Gray, The Globe and Mail, Published Friday, May 27, :22AM EDT

65 WHAT S IN YOUR WEED?... A GLOBE AND MAIL INVESTIGATION

66 Grant Robertson and Greg McArthur The Globe and Mail Last updated: Friday, Aug. 12, :50PM EDT

67 The current status of charges in Toronto June 2016 Present Employee Business Property Total Number of charges completed Number of charges ongoing Number of orders issued Total Amount in Fines = $54,700.00*

68 Convictions have been registered against: employees, dispensary owners and operators as well as landlords. Court orders have been issued for Probation Orders under the Provincial Offences Act; Closing Orders under the City of Toronto Act for edibles and business licensing offences; and Prohibition Orders under the Planning Act for zoning offences.

69 BILL C-45 AN ACT RESPECTING CANNABIS AND TO AMEND THE CONTROLLED DRUGS AND SUBSTANCES ACT, THE CRIMINAL CODE AND OTHER ACTS

70 What will it bring on a Municipal level

71 Municipal Challenges Provincial Distribution Model Input and Consultation Timing Zoning and Legal Non-Conforming Uses Local Needs and Concerns Sensitive Locations and vulnerable sectors Density and Proximity/Separation Distances Hours of Operation Open Entry or Cap on Numbers Local Level Licensing Regime - Smart Serve or Handler s Certification - Criminal Records Checks and Proof of Insurance

72 Legislative Challenges o Administrative Monetary Penalties Implementing an AMP hearing system in each local jurisdiction o Dual Enforcement Regimes Federal - Criminal Law Provincial and Municipal - Quasi-Criminal Regulatory Offences Example: Dangerous Driving vs. Careless Driving o Ticketable Offences Who will be authorized or delegated the enforcement responsibility - Peace Officer or Inspector or Police Officer

73 Regulatory Watch List o Permits and Licences Appeal process Conditions for Suspension or Revocation o Hours of Operation and Right of Inspection o Delegation of Enforcement Authority o Consumption in a public place Offence to smoke or hold lighted cannabis o Non-Compliance Penalties, Court Closing Orders, Piercing the Corporate Veil, Forfeiture of Illicit Cannabis, Imprisonment?

74 Bill Blair MP and Parliamentary Secretary to the Minister of Justice Until Parliament has enacted new legislation and new rules are in place to ensure that marijuana is carefully regulated, current laws remain in force and should be obeyed.

75 Now time for a break After the break: A group discussion on municipal issues of interest