A COMMITTEE OF THE WHOLE MEETING WILL BE HELD IN THE MUNICIPAL COUNCIL CHAMBERS AT CITY HALL ON THURSDAY, NOVEMBER 16, 2017 AT 12:00 P.M.

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1 A COMMITTEE OF THE WHOLE MEETING WILL BE HELD IN THE MUNICIPAL COUNCIL CHAMBERS AT CITY HALL ON THURSDAY, NOVEMBER 16, 2017 AT 12:00 P.M. A G E N D A A. COMMITTEE OF THE WHOLE 1. Danielle Myles, Economic Development Manager, and Tara Irwin, City Planner, City of Terrace Cannabis Information Session & Discussion H. Avison Deputy Clerk

2 Cannabis Legalization Backgrounder November 16, 2017 Drafted By: Tara Irwin, City Planner and Danielle Myles, Manager Economic Development for Heather Avison CAO Section 1: Current regulations a) Medical Marijuana production and sale Authority to license and directly regulate the production of medical marijuana belongs to the federal government. It is administered by Heath Canada through the Marijuana for Medical Purposes Regulation (MMPR) which came into full force on April 1, 2014 This regulation allows for operation/siting of a Medical Marijuana Production Facility (MMPF), however, sales of medical marijuana happen directly, through shipping, to registered clients. This regulation gives three significant tools to municipalities to further regulate these production facilities: zoning, business licensing and community standards. In City of Terrace Zoning Bylaw : A MMPF is a permitted use in the AR1 zone (those lands along the Southside of Graham or south of the airport) but specifically only on lands within the mapped ALR Boundary. To date we have very few inquiries and no applications to construct MMPFs. b) Commercial/storefront/retail sales (i.e. dispensaries or compassion clubs) Retail sale of marijuana in any form is not currently permitted. Further, federal regulation does not currently authorize licensed producers to sell medical marijuana through storefronts. Some municipalities (most notably Vancouver and Victoria) have chosen to locally regulate retail sales and develop supporting bylaws and regulations. Section 2: Forthcoming regulation changes, engagement processes and timelines a) Federal The Government of Canada has introduced two pieces of legislation that it plans to pass in July, 2018; Bill C-45 the Cannabis Act and Bill C-46 An Act to amend the Criminal Code. The federal government is responsible for regulating production, setting general parameters regarding possession, advertising, tracking, cultivation and providing broad oversight to the regime. b) Provincial The Province of B.C. has established a Cannabis Secretariat with 10 staff and plans to hire additional personnel. City staff have learned from the Secretariat that upon closing of the public engagement process on November 1, 2017, Secretariat staff will immediately be seeking Cabinet direction for Page 1 of 4

3 legislation and regulation development. By the end of 2017 we may have further information on recommendations from the Cannabis Secretariat to the Provincial government. At minimum, basic provincial regulations will be in place by July, 2018 to coincide with legalization such as minimum age and consumption laws. Distribution and retail regulations are more complex and may come at a later date. The Secretariat has indicated they may be accepting license applications for processing before all regulations are in place. City staff understand from Cannabis Secretariat staff that they plan to work directly with a Cannabis Committee that UBCM will establish, for further engagement on policy and regulation development. Whether there will be further public engagement by the Province is unclear. When federal legislation comes into force, the Province of B.C. will need to have regulations in place to govern: Wholesale and retail models; Workplace safety, and Will have the discretion to set higher age limits or more restrictive possession limits. c) Municipal Municipal authority will stem from the provincial framework (which is currently in development). The City of Terrace will likely be most active in: Zoning; Business licensing; Implementation of the building code; Municipal workplace safety, and Enforcement of regulations related to public consumption and impaired driving. d) Timelines for City of Terrace Bylaw Amendments The City timeline for bylaw amendments will be directly influenced by the timing of provincial regulation development, as seamless implementation is important to ensure efficiency and clarity for the public, service providers and interested businesses. While we expect that there will be sufficient information from the Province by early spring 2018 with which to begin our bylaw update processes, we are unable to establish an exact timeline until they indicate the framework for their regulations and a timeline for implementation. Bylaw updates could include (depending on what direction the provincial regulations take) the following general changes: Update to Business License Bylaw: Includes defining and including types of cannabis businesses as well as determining license fee levels. Page 2 of 4

4 Update to Zoning Bylaw: determining in what zones to allow storefront cannabis retail use, as well as potential setbacks from uses such as schools etc. Section 3: Business and Economic Development Considerations The Government of Canada s Cannabis Task Force has recommended to Government that they encourage a diverse, competitive market that includes small scale producers. It is important to note that B.C in particular has a significant cannabis culture, more so than seen in other Provinces. Of the 48,000 submissions received by the Province in response to the recent public engagement process, it is clear that there is a strong desire from the public to find a way to support the existing industry and balance multiple interests. The federal, provincial and municipal levels of government all have different areas of responsibility, capacity and experience to regulate these distinct aspects of the cannabis industry. The cannabis supply chain includes: Production (cultivation and manufacturing); Distribution and Retail. Deloitte estimates that the retail value of the legalized cannabis market is between $4.9 to $8.7 billion in Canada, similar in size to that of Canadian spirits and analysis suggests that the total economic impact of this industry could be up to $22.6 billion (not including tourism, business taxes, licensing fees and other sales). Considering the business opportunities posed by the soon to be legalized recreational cannabis industry, a variety of community impacts need to be considered including the scale of allowed production, the different retail models and location of sales. Currently, any aspect of the recreational cannabis supply chain is illegal. Medicinal marijuana can be purchased and possessed by individuals with medical documentation and only from licensed producers who are heavily screened by the Government of Canada. In Terrace, we currently only allow production of medicinal marijuana in the AR1 zone which restricts businesses to locations around Graham Avenue or near the Skeena Industrial Development Park (As described under Section 1). We understand there is interest from one retailer to establish a business in the downtown and that they may have entered into a lease. Over the past several years, marijuana growers have considered Terrace as a site for their operations and we expect an influx of interest form businesses throughout the supply chain as we approach the legalization date. Page 3 of 4

5 Section 4: Regional Context City staff are staying connected with neighboring communities in the Northwest to share information and strategies related to the legalization of cannabis in Communities across the Province are utilizing a variety of approaches to develop municipal regulations for this new industry. City staff recognize that it is important to work collaboratively with our regional neighbors and will continue to do so. Section 5: Topics for Council to Consider Public and stakeholder engagement; Timeline for engagement and implementation of municipal regulations. Section 6: Sources and Further Reading Article: Canada Takes Big Steps.. (Forbes Magazine) billion-legal-marijuana-industry/# eb Cannabis Legalization Primer (Federation of Canadian Municipalities) BC Cannabis Regulation Engagement (website) Opportunities in Cannabis (Business in Vancouver) Page 4 of 4