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Home My WebLink AboutCLD-006-18Clarington Clerk's Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: January 22, 2018 Report Number: CLD -006-18 Resolution: GG -043-18 File Number: By-law Number: Report Subject: Impacts of Cannabis Legislation Recommendation: That Report CLD -006-18 be received for information. Municipality of Clarington Report CLD -006-18 Page 2 Report Overview This Report is to provide general information on Bill C-45, Bill C-46, and Bill 174 Cannabis, Smoke -Free Ontario and Road Safety Statute Law Amendment Act, 2017 and potential impacts on local services. 1. Background In April 2017, the federal government introduced legislation to legalize and regulate non- medical cannabis, with legislation coming into force by July 1, 2018 (Bills C-45 and C-46). The Government of Ontario has provided for the retail of cannabis through a subsidiary of the Liquor Control Board of Ontario (LCBO). The Province feels that this approach should meet the standards of control and social responsibility that Ontarians expect. On December 12, 2017, Bill 174 Cannabis, Smoke -Free Ontario and Road Safety Statute Law Amendment Act, 2017 received Royal Assent. This Bill enacts the Cannabis Act, 2017 (Schedule 1) and the Ontario Cannabis Retail Corporation Act, 2017 (Schedule 2). It also repeals the Smoke -Free Ontario Act and the Electronic Cigarettes Act, 2015 and replaces them with the Smoke -Free Ontario Act, 2017 (Schedule 3), and makes amendments to the Highway Traffic Act regarding driving with alcohol or drugs present in the body and other matters (Schedule 4). The purpose of these Acts is to protect youth, public health and safety, as well as to deter illicit activities in relation to cannabis through appropriate enforcement and sanctions. Key points to recognize within Bill 174 are: " Minimum age of 19 to consume, purchase posses, " Banning the use in public places, workplaces vehicles and boats, similar to alcohol, " Prohibiting the unlawful sale/distribution, similar to alcohol, " Authority for Police Officers to enforce the illegal possession/use/sale of cannabis, " Restricting the use of Medical Cannabis in workplaces and enclosed public places, " Immediate penalties/closures for illegal uses, and " Youth referral programs. Municipality of Clarington Resort CLD -006-18 Paae 3 What can 19+ year olds do under Bill C-45? " Possess up to 30 grams of legal dried cannabis or equivalent in non dried " Share up to 30 grams of legal cannabis with other adults " Purchase dried or fresh cannabis and cannabis oil " Grow (ie cultivate, propagate, harvest) up to 4 cannabis plants PER DWELLING PLACE 2. Discussion 2.1 Legalization Abroad Cannabis has been legal in other countries for various periods of time. Of note, in the USA approximately 29 states have varying laws from medical use, to decriminalization, to complete legalization for recreational use. The laws vary from state to state and federally it is still prohibited, which is in direct conflict with the state laws. Of the 29 states, 8 have legalized for recreational use, including the sale. These 8 states, and the cities within, may have faced similar issues and concerns as the municipalities across Canada are facing now. Staff continue to research and understand how these American cities approached and dealt with legalization to assist Clarington in preparing for the July 1 st targeted implementation date. 2.2 Canadian Provinces As the Province of Ontario has enacted Bill 174, each of the other provinces has also enacted similar corresponding provincial legislation. Attachment 1 is a map of Canada (provided by Loopstra Nixon LLP during a recent education workshop held by the Durham Insurance Pool) which highlights the rules regarding cannabis in each province. 2.3 Province of Ontario The Ontario Government plans on opening 40 stores in July 2018, increasing to 80 in 2019 followed by 150 in 2020. Currently 30 municipalities have been identified 2 of which are Ajax and Oshawa. The store locations are being selected to achieve geographic distribution across the province and to reduce the number of illegal stores, including dispensaries currently in operation. Initially it was understood that municipalities may have ability to delay after being selected, but this remains undetermined at this time. The Province and LCBO intend on Municipality of Clarington Report CLD -006-18 Page 4 working with municipalities on an ongoing basis to assist in selecting specific locations and addressing local concerns with in the municipality. 2.4 Region of Durham Region of Durham staff are recommending continuing to provide input to local municipalities regarding store locations, to determine feasibility and implications of designated establishments. The key concerns for store locations are proximity and density measures to child care facilities, schools, LCBO store, gaming facilities, health centers, and high priority neighborhoods, where there may be a higher socioeconomic disparity or crime rate. The Health Department of Durham, along other regional health units, are strongly recommending minimum distance from schools, youth centers and alcohol related businesses of approximately 500m. 2.5 Other Municipalities The City of Oshawa has been selected for a July 2018 store location. However, the City has requested the Ontario Government to delay the selection to allow for, Public consultation process and zoning review has been conducted, Preparation of report in regards to zoning matters, public consultation, a public meeting and communication plan, and Request from the Province to address any regional concerns such as financial impact on Region of Durham and City of Oshawa, impacts on Durham Region Police Services and by-law enforcement, impact on social services health care services, and impact of cannabis smoke on neighbours. The majority of these issues have been identified by the Federation of Canadian Municipalities (FCM) in their Cannabis Legalization Primer: How Municipalities Can Get Ready publication. On December 11, 2017, the Town of Whitby has been selected and Whitby Council passed the following resolution: RESOLUTION #603-17 Whereas the Town of Whitby has been notified by the Province that it has been identified as the location for an Ontario Cannabis Retail Corporation (OCRC) store to open by July, 2018; Municipality of Clarington Resort CLD -006-18 And Whereas the province will receive at least 75% of the tax revenue generated through the sale of marijuana, and to date has not agreed to sharing that revenue with municipalities; And Whereas tax revenues and cost savings from cannabis legalization should be shared with the Town of Whitby to benefit youth and social services, drug awareness education, and municipal law enforcement within Whitby; Now Therefore be it Resolved: That the Council of the Town of Whitby supports being a location for an Ontario Cannabis Retail Corporation (OCRC) store provided that: A revenue sharing formula has been developed and conveyed that provides a fair fixed percentage of annual net revenues to the Town of Whitby (and the Region of Durham); and, That the location be chosen in consultation with the Town of Whitby and sited to avoid negative social impacts, particularly in relation to our youth. Paae 5 On December 12, 2017, the Town of Ajax release a statement advising that they have been identified as a cannabis retail site and are in the process of understanding the municipal considerations and impacts. 2.6 Impacts on Municipality of Clarington 2.6.1 Enforcement At this time, and based on the information provided by the Federal and Provincial governments, as well as information received by staff through education workshops on this matter, it is understood that enforcement would be handled as follows: Possible Violation Enforcement Unit Illegal Sale Durham Regional Police Possession over the limit Durham Regional Police Under age purchase, possession Durham Regional Police More than permitted number of plants Durham Regional Police Recreation consumption in public spaces Durham Regional Police Medicinal consumption in public spaces Durham Region Health Department Municipality of Clarington Report CLD -006-18 Page 6 Possible Violation Enforcement Unit Nuisance regarding cannabis smoke Not enforced however calls would be directed to Durham Region Health Department Staff use of medicinal marijuana in the Employee's Manager/ Human Resources workplace 2.6.2 Store Distribution Locations / Land Use The Municipality of Clarington has not been selected for a cannabis sales outlet at this time. Under the present zoning by-laws, a cannabis sales outlet would be permitted in virtually every commercial zone as a :"retail commercial establishment", a catch-all for stores that are not otherwise defined. Given that sales outlets would be under a provincial corporation and relatively limited in number, Planning staff do not foresee an immediate urgency to regulate the location of stores through zoning. The land use impacts of a cannabis sales outlet are pretty much the same as other commercial uses and, indeed they would have much less impact than some commercial uses. As time progresses, the new stores can be monitored and, if necessary cannabis sales outlets will be examined through ZONEClarington. 2.6.3 Business Licensing As stated earlier in this Report, the Province is undertaking a controlled roll-out for sales distribution locations, and it is understood that the police would continue to enforce illegal sales. Therefore at this time, there is no requirement for Clarington to implement business licensing related to cannabis. Should the process change, however, such that there are fewer Provincial controls over locations, it may be appropriate at that time to consider enacting a business licensing model to standardize and control the requirements for operators and limiting the number of stores, similar to what was previously implemented in Clarington for adult entertainment establishments. 3. Concurrence This report has been reviewed by the Director of Planning Services, Director of Corporate Services, and the Municipal Solicitor who concur with the recommendations. 4. Conclusion While the targeted implementation date is July 1, 2018, recent news articles reporting feedback from the Federal Government suggest that this date may be delayed. Municipal staff will continue to work with area municipalities, Durham Region Police Services, Region of Durham Health Department and the Province to monitor and prepare for potential Municipality of Clarington Report CLD -006-18 Page 7 impacts while meeting the Provincial goal of social responsibility and standards of control that our residents expect. Areas of focus will include: " financial impacts to Municipal services, " storefront locations and impacts, " responsibilities within the legislative framework, and " communication with stakeholders. 5. Strategic Plan Application Not applicable. Submitted by: A� C. Anne Greentree, B.A., CMO, Municipal Clerk Reviewed by: Andrew C. Allison, B. Comm, LL.B CAO Staff Contact: Duncan Anderson, Manager Municipal Law Enforcement, 905-623-3379 or danderson@clarington.net There are no interested parties to be notified of Council's decision. Attachments Attachment 1 — Canadian Map Detailing Provincial Rules Governing Cannabis Map Depicting Cannabis Rules per Province Attachment1 Report CLD -006-18 NEW BRUNSWICK: • Smoking banned In Public • 19 min age UKON: NWT: Nunavut: • 30 grams possession limn • 19 min • 19 min age • No possession limit at Nothing yet home BUT storage age • MWT liquor Commission �, _requirements • Public an +Homo grows allowed Q private • Restrictions on locatlon of use 0 i NRD: retail QUEBEC: • Smoking BC: ALBERTA: ANITOBA: banned In • 18 min age ublie • Public min age ■ Gov't Ondine •Nothing • LGA will + No home + P • Public and sales Yet. regulate 19 min age. 1 Complain growlll • Private Com private • Private retail � retail •Personal retalkr sales underALGC, Its +MBLLwilll ONTARIO: possession limit NLCcontrol q • 18 min age secure at 154rams istribution Distributio and track - Provincial Retalle g In Brandt supply • 19 min age •Smoking restrictions like 0 10P age • No consumption in tobacco public . zero tolerance NOVA SCDTIA for drivers • 19 min age •30grams. and 4plants per r PEI household _ *Nova Scotia liquor Corp • Spring 201.8