Staff Report: Retail Sales of Cannabis and Cannabis Related Products

Purpose

In light of impending changes to Federal and Provincial legislation with respect to the non-medicinal use of cannabis, Council may now wish to allow for the retail sale of cannabis, by way of Temporary Use Permits (TUP). The intent of this report is to outline guiding principles with respect to the potential issuance of TUP’s for retail cannabis. This report also outlines a proposed approach for determining the businesses that may receive a TUP.

Background

The Province is in the process of unveiling its regulatory framework for cannabis. At present, the Province has made the following regulatory decisions:

• British Columbia’s minimum age to possess, purchase and consume cannabis will be 19 years old (consistent with alcohol and tobacco);
• The Liquor Distribution Branch will be the wholesale distributor of non-medical cannabis in BC;
• Adults aged 19 and above will be allowed to possess up to 30 grams of non-medical cannabis in a public place;
• BC will generally allow adults to use non-medical cannabis in public spaces where tobacco smoking and vaping are permitted (however, to minimize child and youth exposure, smoking and vaping of non-medical cannabis will be banned in areas frequented by children, including community beaches, parks and playgrounds);
• Use of cannabis, in any form, will also be banned for all occupants in vehicles;
• Local governments will be able to set additional restrictions regarding both the retail and use of cannabis;
• Landlords and strata councils will be able to restrict or prohibit non-medical cannabis cultivation and smoking at tenanted and strata properties;
• BC will align with the proposed federal legislation and allow adults to grow up to four cannabis plants per household, but the plants must not be visible from public spaces off the property;
• Home cultivation of non-medical cannabis will be banned in dwellings that are also used as daycares;
• Drug impaired driving will continue to be illegal in BC (the Province will increase training for law enforcement and toughen provincial regulations to give police more tools to remove drug-impaired drivers from the road and deter drug-affected driving); and
• British Columbians of legal age will be able to purchase non-medical cannabis through privately run cannabis only retail stores or government-operated retail stores and online sales.

Many of the above regulatory decisions align with the feedback the City of Langford provided on the proposed cannabis regulatory framework in November and in February (attached).

Importantly (and further discussed below), the Province has of yet not stated that it will provide additional resources to local governments to offset the anticipated increase in administrative and policing costs.

Note: Langford’s current zoning regulation prohibiting the sale of cannabis (except as a licensed pharmacy, which the Province won’t allow) will remain valid.1 The Supreme Court has upheld a municipality’s right to regulate land use, notwithstanding a product’s legal status.

As such, nothing will change for Langford once cannabis is no longer a controlled substance. A company or individual will not be able to obtain a business license for this form of retailing and the City can shut down any unlicensed business then as much as it can now. The only thing that will change will be the demand from retailers for Council to soften its zoning regulation.

If Council wishes to permit the sale of cannabis in Langford (per the Province’s regulations), the best way forward may be to consider each retail store on a case by case basis through a temporary use permit (TUP). In this manner, Council could limit the overall number of outlets within the community, allow for a “pilot” period, impose conditions to mitigate possible negative effects, and lastly provide an opportunity for community feedback.

1 Sec. 3.02.02(5) of Zoning Bylaw No. 300

Commentary on Retail Sales

Should Council wish to proceed with allowing the retail of cannabis, establishing the following as guiding principles regarding the location of the retail sale of Cannabis Products could be helpful:

That the retail sale of Cannabis Products for non-medicinal use is preferred to not be located within:

• 500 metres of any other location where the retail sale of Cannabis Products for non-medicinal use has been authorized (with the exception of Goldstream Avenue, where two locations may be considered);
• 300 metres of any school;
• 300 metres of any group daycare;
• 150 metres of Centennial Park, Veterans Memorial Park, City Centre Park, Westhills YMCA, any regional or Provincial park, or Langford, Glen or Florence Lakes; and,
• 50 metres of any land zoned R1 (One-family Residential) or R2 (One- and Two-Family Residential), except within the designated City Centre.

These guiding principles should allow for a limited number of retail cannabis outlets spread throughout the City in existing areas of commercial retail, depending on what property is available for lease or purchase. It is not possible to determine definitively how many outlets are possible given the above guiding principles, but staff recommend that during the “pilot” period, the total number of retail outlets be capped at five.

In addition to these geographic requirements, Council may also wish to establish an application process to ensure a rigorous but fair way of determining which cannabis retailers can locate within Langford.

Application requirements

The application process would require each applicant to provide/demonstrate a number of important factors, including:

• A detailed description of the Proponent’s current business undertakings, including a description of the Proponent’s experience in retail sales in a commercial sector specifically regulated by Canada or British Columbia (e.g., age restricted sales and/or controlled substance sales);

• A detailed description of any enforcement actions or proceedings brought by Canada, British Columbia, a local government, or an agent or branch of either of them against the Proponent in relation to the past or current business undertakings of the Proponent or its principals, or against the past or current business undertakings of third parties with whom the Proponent or its principals were or are associated;

• A detailed description of the Proponent’s proposed business plan for undertaking the retail sale of Cannabis Products for non-medicinal use within the City’s boundaries, including a detailed description of the following:

  • Proposed hours of operation;

  • Proposed plan for:

    • Ensuring that the retail sale of Cannabis Products for non-medicinal use is in compliance with the Regulatory Framework and all applicable City bylaws;
    • Providing appropriate security measures associated with the premises from which the retail sale of Cannabis Products for non-medicinal use will occur;
    • Minimizing the impact on the neighbourhood of the retail sale of Cannabis Products for non-medicinal use;
    • Addressing nuisance issues relating to public use of Cannabis Products for non-medicinal purposes;
    • Addressing impairment issues relating to public use of Cannabis Products for non-medicinal purposes; and,
    • Providing educational initiatives and materials associated with the above impacts and related social concerns;

• A description of the Proponent’s ability to obtain bonding, if necessary, and a minimum of $5 million insurance coverage;

• While not a requirement, a description of the Proponent’s preferred location or locations for undertaking the retail sale of Cannabis Products for non-medicinal use within the City’s boundaries;

• Where the Proponent has a legal interest in the preferred location or locations, or has an enforceable commitment to acquire a legal interest in the preferred location or locations, details of the legal interest or enforceable commitment;

• While not a requirement, information on the potential form, character and design of the proposed retail outlet; and,

• A description of the Proponent’s expected timeframe for commencing the retail sale of Cannabis Products for non-medicinal use within the City’s boundaries.

It should be noted that in addition to the above, Council will have the ability to further regulate, if it wishes, additional land use issues (e.g. signage) through the TUP process.

Staff recommend that the application process would open on May 1st and close on June 1st.

For full details of the proposed application process, please see the attached RFP.

Financial Implications

It is anticipated that the general decriminalization of cannabis will place an extra burden on policing and bylaw enforcement. For example, police officers may be required to perform more roadside checks, may need to provide additional education to the public, and may be given the authority to inspect cannabis retailers to ensure conformance to legislation. Further, smoke and odor from cannabis consumption may elicit additional complaints at City Hall.

Despite this, the Province has of yet not stated that it will provide additional resources to local governments to offset the anticipated increase in administrative and policing costs.

Council, therefore, may wish to ask, as part of the application process, for each potential cannabis retailer to provide their proposed plan for financially assisting the City with policing and bylaw enforcement costs, including the costs of additional training and administrative costs, associated with:

• Ensuring that the retail sale of Cannabis Products for non-medicinal use in a particular location is in compliance with the Regulatory Framework and all applicable City bylaws;
• Minimizing the impact on the neighbourhood of the retail sale of Cannabis Products for non-medicinal use;
• Addressing nuisance issues relating to public use of Cannabis Products for non-medicinal purposes;
• Addressing impairment issues relating to public use of Cannabis Products for non-medicinal purposes; and,
• Providing educational initiatives and materials associated with the above impacts are related social concerns.

Legal Implications

The attached RFP for the Retail Sales of Cannabis and Cannabis Related Products has been prepared in consultation with the City’s lawyers.

It is anticipated that the Province will outline remaining details of BC’s Non-Medical Cannabis Regulatory Framework in the coming months.

Options

That Council:

1. Establish as guiding principles that the retail sale of Cannabis Products for non-medicinal use is preferred to not be located within:

   a. 500 metres of any other location where the retail sale of Cannabis Products for non-medicinal use has been authorized (with the exception of Goldstream Avenue, where two locations may be considered);
   b. 300 metres of any school;
   c. 300 metres of any group daycare;
   d. 150 metres of Centennial Park, Veterans Memorial Park, City Centre Park, Westhills YMCA, any regional or Provincial park, or Langford, Glen or Florence Lakes; and,
   e. 50 metres of any land zoned R1 (One-family Residential) or R2 (One- and Two-Family Residential), except within the designated City Centre.

AND

2. That Council direct staff to issue the RFP for the Retail Sales of Cannabis and Cannabis Related Products to run from May 1st to June 1st;

AND

3. That Council direct staff to wait to see how the Province and the CRD will be regulating and enforcing issues of cannabis odour and nuisance prior to granting any temporary use permits related to Retail Sales of Cannabis and Cannabis Related Products.

Respectfully submitted,

Submitted by:
Braden Hutchins, MPA, Director of Corporate Services
Matthew Baldwin, MCIP, RPP Director of Planning and Subdivision
Lorne Fletcher, Manager of Community Safety and Municipal Enforcement

Concurrence:
Cory Manton, Manager of Parks and Recreation

Concurrence:
Michelle Mahovlich, P.Eng, P.Geo, Director of Engineering

Concurrence:
Leah Stohmann, MCIP, RPP, Deputy Director of Planning

Concurrence:
Michael Dillabaugh, CPA, CA, Director of Finance

Concurrence:
Darren Kiedyk, Chief Administrative Officer

Attachments

• Attachment 1: Letter to Minister Farnworth dated November 1, 2017
• Attachment 2: Letter to Minister Farnworth dated February 3, 2018
• Attachment 3: B.C. Cannabis Private Retail Licensing Guide
• Attachment 4: RFP for the Retail Sales of Cannabis and Cannabis Related Products