Cannabis Regulation

Survey on Cannabis Related Costs

UBCM, in collaboration with GFOABC, has prepared a survey with regard to the costs to local government of cannabis legalization. The data from this survey will support UBCM in its ongoing discussions with the province on the appropriate sharing of the excise tax on cannabis so that the one time and ongoing costs to local government to implement the legalized cannabis framework are not funded through the property tax. All local governments are asked to complete the survey no later than June 1, 2019.

Survey on Cannabis Related Costs [XLSX - 15 KB] (send completed surveys to bsihota@ubcm.ca)
Overview of LG Tracking Model for Incremental Costs Associated with Cannabis Legalization [PDF - 395 KB]
LG Guide for Recording Incremental Costs Associated with Cannabis Legalization [PDF - 508 KB]

Cannabis Production in the ALR

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Cannabis Legalization in Your Community: A Primer for Local Governments

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. The primer also includes a list of resources and provincial contacts.

2018-10-17 Cannabis Legalization in Your Community.pdf [PDF - 199 KB]

Cannabis Excise Tax Revenue Sharing

A two-year Federal-Provincial-Territorial Agreement on Cannabis Taxation sees the federal government retain 25% of excise tax revenue (up to a maximum of $100 million per year), with the remaining 75% (or more) going to provinces and territories. The federal government will not directly provide local governments a share of the excise tax revenue, leaving that responsibility to provinces and territories. As of May 2019, only Alberta, Ontario and Quebec have committed to cannabis taxation revenue sharing with local governments.

On September 13, 2018, the UBCM membership endorsed Special Resolution 1 (SR1): Cannabis Excise Tax Revenue Sharing with Local Governments. Admitted for debate by the UBCM Executive, this resolution seeks to advance a short- and long-term strategy to guide the negotiation of a provincial-local government cannabis excise tax revenue sharing agreement. These strategies are based on the principled approached, as well as the findings from a study contracted by UBCM.

The short-term strategy intends to adopt a revenue sharing framework that would entail the provincial government providing local governments with 40% of the projected provincial cannabis excise tax revenue over the first two years of legalization. Any excess revenue would be shared 50-50 between the Province and BC local governments. Excise tax revenue would be distributed to BC local governments on a per capita basis, with all municipalities and regional districts receiving a minimum of $10,000 regardless of population. The long-term strategy seeks to develop a permanent agreement that either continues with the short-term framework; or increases the provincial sales tax on cannabis from 7% to not more than 10% with a committment of this portion to local governments in place of excise tax revenue sharing.

During the Convention, UBCM President Wendy Booth met with Minister of Finance Carole James to discuss the short- and long-term strategy. UBCM and the Province also agreed to continue discussions around excise tax revenue sharing.

The provincial government also applies a 15% mark-up on the landed price of cannabis, in addition to the federal excise tax.

Legalization of Non-Medical Cannabis

Joint Provincial-Local Government Committee on Cannabis Regulation
UBCM and the provincial government have established the Joint Provincial-Local Government Committee on Cannabis Regulation (JCCR), a forum for local governments to share their experiences and knowledge and discuss issues of interest or concern with the Cannabis Legalization and Regulation Secretariat. The JCCR webpage includes all Committee reports, the Terms of Reference, and other pertinent documents. 

Federal Background Information

The federal government, in April 2017, introduced cannabis legalization and enforcement legislation, Bills C-45 (the Cannabis Act) and C-46 (amends the Criminal Code). Legislation places 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. The Cannabis Act came into force on October 17, 2018.

Provincial Background Information

The Province of British Columbia has enacted its own legislation for the legalization and regulation of non-medical cannabis, in the form of two new bills and key amendments to the Motor Vehicle Act. The 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. A Community Safety Unit will have the authority to deal with illegal sales outside the legalized framework. Under the CCLA, the Community Safety Unit will have the authority to enter illegal cannabis premises without a warrant, seize illegal product and records, and impose monetary fines. Changes to the Motor Vehicle Act will allow for a 90-day Administrative Driving Prohibition to be placed on drug-affected drivers, as well as impose a zero tolerance policy for the presence of THC for drivers in the Graduated Licensing Program.

Medical Cannabis

Released in 2013, the Marijuana for Medical Purposes Regulation (MMPR) took effect on April 1, 2014. The regulatory framework administered by Health Canada ended the practice of individuals growing medical marijuana in private dwellings by creating a licensing system for a limited number of third parties to produce and distribute medical marijuana.

Originally, only dried marijuana was to be produced, sold and possessed. This regulation was changed in June 2015, after the Supreme Court ruled that this restriction violated the right to liberty and security in a manner contrary to the principles of fundamental justice. This ruling game medical patients the right to access and produce other cannabis products. In February 2016, a federal judge struck down the federal regulations that had prohibited patients from growing their own medical cannabis. As a result of this ruling, the new Access to Cannabis for Medical Purposes Regulations (ACMPR) were introduced on August 24, 2016, thus replacing the MMPR.

Correspondence

UBCM to Minister Lana Popham re: Local Government Consultation on Bill 15 [PDF - 76 KB] - May 2019
UBCM to Minister Doug Donaldson re: Cannabis Production in the ALR [PDF - 196 KB]
- May 2019
UBCM to Minister Carole James re: Cannabis Excise Tax Revenue Sharing [PDF - 77 KB]
 - Aug 2018
UBCM to Minister Carole James re: Cannabis Excise Tax Revenue Sharing [PDF - 76 KB] - June 2018
UBCM to Minister Doug Donaldson re: Cannabis Production on ALR Land [PDF - 93 KB] - May 2018
BC Minister of Public Safety & Solicitor General 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 Public Safety & Solicitor General re: Legalization of Marijuana [PDF - 123 KB] – Mar 2017
UBCM to BC Minister of Justice & 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 Legalization & Regulation Secretariat to UBCM re: Legalization of Marijuana [PDF - 498 KB] – Dec 2016
UBCM to Cannabis Legalization & Regulation Secretariat re: Legalization of Marijuana [PDF - 432 KB] – Aug 2016

Articles

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

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, Policy Analyst
bsihota@ubcm.ca
604 270 8226 ext. 114

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