Cannabis Regulation

Cannabis Taxation Revenue Sharing

The two-year Federal-Provincial-Territorial Agreement on Cannabis Taxation sees the federal government retain 25% of excise tax revenue (up to $100 million per year), with the remaining 75% or more going to provinces and territories. This reflects a federal share that was reduced by 25% in recognition of the costs and responsibilities assumed by local governments. Other taxes applied to cannabis sold in BC include the GST, PST and a 15% provincial mark-up on the landed cost of cannabis. Despite the costs and responsibilities assumed by local governments, and evidence provided by UBCM (see below), the Province has not committed to a revenue sharing agreement. UBCM advocacy and work on this file has included:

  • Endorsed resolutions sponsored by the UBCM Executive (2017-SR1, 2018-SR1 and most recently 2020-SR2)
  • Developed short- and long-term strategies (included as part of 2018-SR1);
  • Prepared and delivered a report summarizing findings from UBCM's cannabis costs survey, which showed significant one-time and ongoing local government costs related to cannabis legalization. 

Legalization of Non-Medical Cannabis

Federal legislation (Bills C-45 and C-46) place the federal government in charge of production, health and safety standards, and criminal prohibitions, as well as establishing minimum conditions that provincial legislation must meet to ensure consistency. 

British Columbia's Cannabis Distribution Act establishes the Province’s exclusive jurisdiction over the wholesale distribution of non-medical cannabis, and provides authority for public retail and online sales. The Cannabis Control and Licensing Act (CCLA) establishes provincial control over the sale, supply and possession of non-medical cannabis, and establishes licensing of private retailers. The CCLA also outlines restrictions over the possession, personal cultivation and public consumption of cannabis.

UBCM Cannabis Policy Technical Working Group

This Working Group, in November 2019, replaced the Joint Provincial-Local Government Committee on Cannabis Regulation as the primary forum for local government engagement with the Province regarding cannabis-related issues.  

Local Government Resources

In addition to federal and provincial resources, UBCM has developed a broad guide examining local areas of responsibility, and other aspects of the non-medical cannabis regime that will impact local governments.

Cannabis Production in the ALR

This information has moved here

Correspondence

UBCM to Minister Carole James re: Cannabis Revenue Sharing [PDF - 65 KB] - Sept. 2019
DM Wes Shoemaker to UBCM re: Cannabis Production in the ALR [PDF - 41 KB] - July 2019
Minister Lana Popham to UBCM re: Local Gov. Consultation on Bill 15 [PDF - 32 KB] - July 2019
UBCM to Minister Carole James re: Pre-Convention Meeting [PDF - 226 KB]
 - Oct 2019
UBCM to Minister Lana Popham re: Local Gov. Consultation on Bill 15 [PDF - 76 KB]
- May 2019
UBCM to Minister Doug Donaldson re: Cannabis Production in ALR [PDF - 196 KB]
- May 2019
UBCM to Minister Carole James re: Cannabis Revenue Sharing [PDF - 77 KB]
 - Aug 2018
UBCM to Minister Carole James re: Cannabis Revenue Sharing [PDF - 76 KB] - June 2018
UBCM to Minister Doug Donaldson re: Cannabis Production on ALR [PDF - 93 KB] - May 2018
BC Minister of PSSG to UBCM re: Legalization of Marijuana [PDF - 467 KB]
– Apr 2017
Minister of Justice to UBCM re: Legalization of Marijuana [PDF - 808 KB] – March 2017
UBCM to Bill Blair, MP re: Legalization of Marijuana [PDF - 111 KB] – Mar 2017
UBCM to Minister of Health re: Legalization of Marijuana [PDF - 111 KB] – Mar 2017
UBCM to Minister of Justice re: Legalization of Marijuana [PDF - 111 KB] – Mar 2017
UBCM to BC Minister of PSSG re: Legalization of Marijuana [PDF - 123 KB] – Mar 2017
UBCM to BC Attorney General re: Legalization of Marijuana [PDF - 123 KB] – Mar 2017
UBCM to BC Minister of Health re: Legalization of Marijuana [PDF - 123 KB] – Mar 2017
Cannabis Secretariat to UBCM re: Legalization of Marijuana [PDF - 498 KB] – Dec 2016
UBCM to Cannabis Secretariat re: Legalization of Marijuana [PDF - 432 KB] – Aug 2016

Articles

Cannabis Edibles Now Legal - Oct. 2019
Cannabis Retail Licence Approval Information
 - Oct. 2019
Cannabis Tax Revenue Advocacy
 - Sept. 2019
Deadline Extended to Complete Cannabis Cost Survey - June 2019
ALC No Longer Reviewing Cannabis Production - May 2019
For CFOs: Cannabis Costs Survey
- May 2019
Survey on Legalized Cannabis Costs
- Apr 2019
Consultation on Edible Cannabis Regulations
- Jan 2019
Cannabis Legalization Now in Force
- Oct 2018
Moving Ahead on Cannabis Legalization
- Sept 2018
Special Resolution Seeks Cannabis Tax Sharing Agreement
- Sept 2018
Cannabis Production on the ALR
- Aug 2018
Cannabis Retail Information for Local Governments
- Aug 2018
Cannabis Legalization Legislation Passes Final Vote
- June 2018
Senate Passes Bill C-45 with Amendments - June 2018
Legislation for Cannabis Control & Licensing, Distribution - May 2018
Cannabis Legalization Guide Released - Apr 2018
UBCM Principles for Cannabis Taxation - Mar 2018
Submission on ALR/ALC Revitalization - Mar 2018
Cannabis Regulations Safeguard Local Choice, Jurisdiction - Feb 2018
UBCM Submission on Cannabis Legalization - Dec 2017
Health Canada Consultation on Cannabis Regulation – Nov 2017
One Week Left for Cannabis Engagement – Oct 2017
UBCM Focused on Cannabis Legalization, Housing – Sep 2017
Local Governments, Stakeholders Discuss Cannabis Legalization – Sep 2017
Cannabis Legalization Update – Sep 2017
Analysis of Marijuana Survey – June 2017
Federal Marijuana Legislation Introduced – May 2017
Marijuana Survey Underway – April 2017
Update on Marijuana Legalization – April 2017
Input Sought for Marijuana Regulation – Mar 2017
Ruling Allows Municipal Regulation of Dispensaries – Feb 2017

Documents

Findings from UBCM Cannabis Cost Survey - Sept 2019
Cannabis Legalization in Your Community: A Primer for BC Local Governments
- Last updated Nov 2018
2018 UBCM Convention: Local Government Issues and Collaboration - Sept 2018
2018 UBCM Convention: BC's Approach to Cannabis Legalization & Regulation - Sept 2018
2018 UBCM Convention: UBCM Position on Excise Tax Revenue Sharing - Sept 2018
UBCM Presentation on Cannabis Production on the ALR [PDF - 817 KB]
- July 2018
UBCM Submission to Province re: Cannabis Legalization - Nov 2017
Survey Report [PDF - 1.5 MB]
 - May 2017

Relevant Legislation

Federal Bill C-45 - June 2018   
Federal Bill C-46 - June 2018
Provincial Cannabis Control and Licensing Act (Bill 30) - May 2018
Provincial Cannabis Distribution Act (Bill 31) - May 2018
Provincial Motor Vehicle Amendment Act (Bill 17) - May 2018

Contact

Bhar Sihota
Senior Policy Analyst
bsihota@ubcm.ca
604 270 8226 ext. 114

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