180514 ar115 zoning amendment bylaw no 2419, 2018 regulation of cannabis uses in the city

REQUEST FOR DECISION File # 3360 3360--20, 3900 3900--20, RZ2018 RZ2018--001 Report To:

Mayor and Council

From:

Director of Development

Presenter:

Ashley Murphey

Subject:

Administration Report No. 0115/18 Zoning Amendment Bylaw No. 2419, 2018 - Regulation of Cannabis Uses in the City

Meeting:

Regular Council

Meeting Date:

14 May 2018

RECOMMENDATION: "WHEREAS Council wishes to be proactive and prepared for the upcoming Cannabis legislation changes; AND WHEREAS the Provincial Cannabis Control and Licensing Act received First Reading on April 26, 2018, and Council considers that additional time to consider the permitting of cannabis-related uses in select areas is necessary; BE IT RESOLVED THAT, Zoning Bylaw Amendment No. 2419, 2018, to amend Zoning Bylaw No. 2181, 2014 and those properties zoned under Peace River Regional District Zoning Bylaw No. 1343, 2001, as shown on Schedule A, to include the definition of Cannabis and Cannabis Operation and to prohibit Cannabis Operations in all zones, be read for the first and second times by title only; AND FURTHER THAT a Public Hearing be scheduled for May 28, 2018 at 6:00 p.m. in City Hall Council Chambers."

CITY MANAGER'S COMMENTS: Support recommendation as this is the process recommended by our legal advisor. It protects the City's interests until such time as Council has designated a zone as well as the terms and condition for cannabis retail in our community.

ALTERNATIVE RECOMMENDATION: OPTION 1 1:: “THAT, Admin Report No. 0039/18 (RZ2018 (RZ2018--001 – Cannabis) be received for information,

AND FURTHER THAT, staff be directed to proceed with a report to consider the permitting of cannabis cannabis--related uses in select areas within the City, based upon the direction received from Council in the Committee of the Whole Administration Report No. 0003/18.

0003/18.””

KEY ISSUES(S)/ CONCEPTS DEFINED: The intent of this report is to amend both the City City’’s Zoning Bylaw and those properties within the City which remain zoned under Peace River Regional District (PRRD) Zoning Bylaw No. 1343, 2001, to prohibit the use "Cannabis Operation" in all zones, pursuant to Council Resolution No. 136/18. At this time, the Province has just released its proposed cannabis legislation and staff have estimated that conducting proactive and transparent public engagement and preparing a draft bylaw to consider permitting the use "Cannabis Operation" within the City, will exceed the July 1, 2018 date that the Federal government has proposed to have cannabis legalized by. Solicitor advice has also been to proactively take this approach towards cannabis, and numerous other communities such as Taylor, Dawson Creek and Comox, have already prohibited the sale of cannabis within their communities to enable greater ability to consult with their residents and develop effective policies surrounding cannabis cannabis--related uses.

Cannabis Operation is a new definition proposed as:

"The cultivating, growing, producing, packaging, storing, distributing, dispensing, advertising, trading or selling of cannabis or its derivatives but excludes a Medical Marihuana Production Facility."

This report is in response to Council Resolution No. 136/18. Please refer to Administration Report No. 0039/18 for background information for this report [Attachment 1: Admin Report No. 0039/18].

Subject to today today’’s Council Meeting, staff will begin preparing a public engagement plan for a Zoning Bylaw Amendment addressing considerations for permitting cannabis cannabis--related uses within the City, pursuant to Council Council’’s direction, received during Committee of the Whole Administration Report No. 0003/18.

BACKGROUND BACKGROUND::

On March 26, 2018, staff presented Zoning Bylaw Amendment No. 2419, 2018 to Council.

Council deferred the report, requesting additional wording be added to the resolution pursuant to the following resolution:

Administration Report No. 0039/18 Zoning Amendment Bylaw No. 2419, 2018 - Regulation of Cannabis Uses in the City

RESOLUTION NO. 136/18 MOVED/SECONDED

"THAT, discussion on Zoning Amendment Bylaw No. 2419, 2018 be deferred to a future meeting pending a further report from staff, including details in the proposed recommendation explaining the context of the bylaw and why it is needed."

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This report is in response to the above mentioned resolution.

RELEVANT POLICY: ANALYSIS:

Based on the recently released Cannabis Control and Licensing Act Act,, staff have requested direction from Council through Committee of the Whole Administration Report No. 0003/18, as to how they would like to see Cannabis Operations regulated within the City.

Staff are anticipating that a new Zoning Bylaw Amendment for Council to consider permitting the use "Cannabis Operation" within the City will not be ready prior to the proposed Federal legalization date of July 1, 2018. This is due to staff being required to conduct public

engagement pursuant to Council Council’’s direction, analyse all data collected, prepare a draft bylaw, complete both internal and external agency referrals and prepare a new report for Council Council’’s consideration.

KEY INFORMATION INFORMATION::

Staff have prepared a Zoning Amendment which will be applicable throughout all zones within the City of Fort St. John, as well as those properties still zoned under PRRD Zoning Bylaw No. 1343, 2001, within the City of Fort St. John John’’s boundaries. This proposed Zoning Bylaw may be repealed and replaced by a subsequent Zoning Bylaw Amendment which will consider permitting the use "Cannabis Operation" within the City, upon completion of public engagement, analysis of data collected and pursuant to Council Council’’s resolution. The following provides further information on the need to amend the PRRD Zoning Bylaw.

Pursuant to Section 34 of the Local Government Act Act:: 1. The bylaws and resolutions of the municipality to which an addition is made apply to the additional area, and continue in force until altered or repealed by the council.

2. Despite subsection (1) but subject to section 44 (6) [continuation of regional district jurisdiction] and the letters patent, if a municipality is incorporated or the area of a municipality is extended, a provision of a) A bylaw adopted by a regional district, other than an establishing bylaw, or b) A bylaw adopted by a local trust committee under the Islands Trust Act that applies to the area continues in force as if it were a bylaw of the municipality until it is amended or repealed by the council.

This means that Council is able to amend PRRD Zoning Bylaw No. 1343, 2001, for those properties that are now located within the boundary of the City of Fort St. John.

IMPLICATIONS OF RECOMMENDATION

COMPLIANCE WITH STRATEGIC GOALS: Goal No. 1 - Enhance community economic development to provide opportunities and sustainability for Fort St. John.

Goal No. 3 - Build and manage public assets and human resources that support the current and future needs of the community.

Goal No. 5 - Actualize downtown Fort St. John as a social, vibrant, liveable hub as articulated in the Fort St. John Downtown Action Plan.

COMPLIANCE WITH STRATEGIC PRIORITIES: GENERAL: ORGANIZATIONAL: Status quo with no amendment to the Zoning Bylaw may result with implications to the municipality regarding cannabis uses occurring in the City without control. This could potentially impact administrative resources to resolve adverse or negative effects from the unaddressed matters within provincial regulations.

FINANCIAL: No additional staff identified at this time. Upon legalization by Federal and Provincial governments, the City anticipates Business Licence applications for dispensary use.

FOLLOW UP ACTION: Should Council give first and second readings, the required notification will proceed and a Public Hearing will be scheduled.

COMMUNITY CONSULTATION: A Public Hearing will be scheduled for May 28, 2018 pursuant to Section 464 of the Local Government Act.

COMMUNICATION: The following are links to additional information surrounding cannabis legalization in Canada: https://news.gov.bc.ca/releases/2018PSSG0028 https://news.gov.bc.ca/releases/2018PSSG0028--000739 https://www.leg.bc.ca/parliamentary https://www.leg.bc.ca/parliamentary--business/legislation business/legislation--debates debates-proceedings/41st proceedings/41st--parliament/3rd parliament/3rd--session/bills/progress session/bills/progress--of of--bills

https://news.gov.bc.ca/releases/2018PSSG0006 https://news.gov.bc.ca/releases/2018PSSG0006--000151 https://news.gov.bc.ca/files/Cannabis_Private_Retail_Licensing_Guide.pdf https://www.canada.ca/en/services/policing/justice/legalization https://www.canada.ca/en/services/policing/justice/legalization--regulation regulation-marijuana.html http://www.parl.ca/DocumentViewer/en/42 http://www.parl.ca/DocumentViewer/en/42--1/bill/C 1/bill/C--45/third 45/third--reading

DEPARTMENTS CONSULTED ON THIS REPORT: Planning Legislative Services

Attachments: Attachment 1: Administration Report No. 0039/18 Attachment 2: Zoning Bylaw Amendment No. 2419, 2018

RESPECTFULLY SUBMITTED: Ashley Murphey, Planner 30 Apr 2018

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REQUEST FOR DECISION

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File # RZ2018 RZ2018--001, 3360 3360--20, 3900 3900--20 Mayor and Council

From:

Director of Development

Presenter:

Ashley Murphey

Subject:

Administration Report No. 0039/18 Zoning Amendment Bylaw No. 2419, 2018 - Regulation of Cannabis Uses in the City

Meeting:

Regular Council

Meeting Date:

26 Mar 2018

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Report To:

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RECOMMENDATION:

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"THAT, Zoning Bylaw Amendment No. 2419, 2018, to amend Zoning Bylaw No. 2181, 2014 and those properties zoned under Peace River Regional District Zoning Bylaw No. 1343, 2001, as shown on Schedule A, to include the definition of cannabis and the prohibition of cannabis uses in all zones, be read for the first and second times by title only, AND FURTHER THAT, a Public Hearing be scheduled for April 9, 2018 at 6:00 p.m. in City Hall Council Chambers."

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CITY MANAGER'S COMMENTS:

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For Council's discussion and debate.

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ALTERNATIVE RECOMMENDATION: OPTION 1 1::

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“THAT, Zoning Bylaw Amendment No. 2419, 2018, to amend Zoning Bylaw No. 2181, 2014 and those properties zoned under Peace River Regional District Zoning Bylaw No. 1343, 2001, as shown on Schedule A, to include the definition of cannabis and the prohibition of cannabis cannabis-related uses in all zones, be read for the first and second times by title only, AND FURTHER THAT, a Public Information Meeting be held to gather feedback from stakeholders and community members."

OPTION 2 2:: “THAT, Administration Report No. 0039/18, Zoning Amendment Bylaw No. 2419, 2018 Regulation of Cannabis Uses in the City, be received for information."

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KEY ISSUES(S)/ CONCEPTS DEFINED: The intent of this report is to amend both the City City’’s Zoning Bylaw and those properties within the City which remain zoned under Peace River Regional District (PRRD) Zoning Bylaw No. 1343, 2001, to prohibit the sale of cannabis in all zones, except pursuant to a zoning amendment to expressly permit such use. This is based on solicitor advise to communities in review of current and proposed Federal and Provincial regulations.

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At this time the Province has yet to release their final proposed cannabis legislation and there remains numerous questions in relation to the regulation of cannabis. Staff propose to act proactively in advance of the final legislation release, to allow the utmost control over cannabis operations within the City of Fort St. John.

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This report covers a brief history of cannabis legislation released to date, an outline of education, research and reports completed by the City in relation to cannabis to to--date, as well as an outline and analysis of outstanding items which form the rationale for this zoning amendment.

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It is anticipated that after July 2018 staff may prepare another report to Council outlining further amendments to the Zoning Bylaw, based on current legislation and best practice.

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BACKGROUND BACKGROUND::

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On April 13, 2017, the Government of Canada introduced Bill C C--45 (Cannabis Act), intended to be in force by July 2018, subject to the approval of Parliament and Royal Assent. This proposed Act defines “Cannabis Cannabis””, as follows:

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Cannabis: 1. Means any part of a cannabis plant, including the phytocannabinoids produced by, or found in, such a plant, regardless of whether that part has been processed or not.

2. Any substance or mixture of substances that contains or has on it any part of such a plant.

3. Any substance that is identical to any phytocannabinoid produced by, or found in, such a plant, regardless of how the substance was obtained.

4. Cannabis does not include: a. b. c. d.

A non-viable seed of a cannabis plant.

A mature stalk, without any leaf, flower, seed or branch, of such a plant.

Fibre derived from a stalk referred to in item 2.

The root or any part of the root of such a plant.

In November 2017, Health Canada released a consultation paper to solicit public input on the proposed regulations as set forth by the Federal Government. On January 8, 2018, Council authorized staff to provide feedback to the Health Canada Cannabis Legalization and Regulation Secretariat pursuant to the following resolution:

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RESOLUTION NO. 10/18 MOVED/SECONDED

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"THAT, Administration Report No. 0004/18 - Regulation of Cannabis Consultation Discussion Paper Commentary be received for information, AND FURTHER THAT, Council directs staff to provide feedback to the Health Canada Cannabis Legalization and Regulation Secretariat."

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CARRIED

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Over the last year the City has continued to increase its education around the legalization of cannabis by attending various seminars and legal workshops.

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On February 5, 2018, the Ministry of Public Safety and Solicitor General (Province of B.C.), published a news release outlining some of the Province Province’’s proposed Cannabis legislation.

Within this news release, a link to the Province Province’’s retail framework was included and within both documents the following key items relating to planning, were mentioned [See Attachment 1: Province of BC News Release & Attachment 2: Provincial Retail Licensing Guide]:

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1. British Columbians of legal age (19 years) will be able to purchase non-medical cannabis through privately run retail stores or government-operated retail stores and government online sales.

2. B.C.’s Liquor Distribution Branch (LDB) will operate a new standalone network of public retail stores.

3. B.C.’s Liquor Control and Licensing Branch (LCLB) will be responsible for licensing private stores and monitoring the retail sector.

4. The operating rules governing public and private retail stores will be similar to those currently in place for liquor.

5. Cannabis sales will not be permitted to be sold in the same stores as liquor or tobacco.

6. In urban areas (ie. the City of Fort St. John), licensed retailers will only be permitted to sell cannabis and cannabis accessories, and will be prohibited from selling other products, such as food, gas, clothing and lottery.

7. The Province will be launching an early registration process for individuals and businesses who are interested in applying for a cannabis retail license.

8. Licenses will not be issued without the support of the Local Government.

The Province of B.C. will generally allow adults to use non 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 non--medical cannabis will be banned in areas frequented by children, including community beaches, parks and playgrounds. [See Attachment 2: Provincial Retail Licensing Guide].

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RELEVANT POLICY:

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ANALYSIS:

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Based on the information gathered to date from legal workshops and the information provided by the Provincial and Federal governments, the following outstanding items have been identified:

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1. As of July 2018 the sale of recreational cannabis will be considered a retail use, unless expressly defined and prohibited within the City's Zoning Bylaw.

Pursuant to the current Zoning Bylaw, this means that the sale of cannabis would be permitted in the C-1, C-2, C-3 and C-4 zones, and on C-2 zoned properties which are located within the City, but remain zoned pursuant to PRRD Zoning Bylaw No. 1343, 2001.

Staff are proposing this bylaw amendment to prevent the development of cannabis operations in advance of the Province releasing their final legislation. This will ensure that no cannabis operations are developed without thorough review and public consultation.

2. The Province has stated that the sale of recreational cannabis will not be permitted within liquor stores, however it is unclear if there will be a minimum distance required between liquor stores and cannabis stores (similar to how there is a minimum 1 km distance required between liquor stores).

Once this information is released, further research, review and public consultation may be required to determine if additional amendments to the Zoning Bylaw are warranted.

3. The Province has stated that municipalities will be able to regulate the following:

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a. Whether the Province issues a license for the sale of recreational cannabis to an applicant or not: Applicants must have the support of the local government in the community where the proposed store would be located prior to the Province issuing a license.

This proposed amendment will ensure that all applicants go through a rezoning process prior to Council considering a license to sell recreational cannabis. b. Number of retail (recreational) cannabis stores: The Province has stated that municipalities will be able to regulate the total number of cannabis stores permitted within that municipality.

Further research and public consultation may be required to determine if the City of Fort St. John wishes to regulate. c. Proximity of retail (recreational) cannabis stores to: i. other cannabis stores ii. schools iii. institutional uses iv. daycares v. other existing uses as identified by Council » Further research and public consultation may be required to determine if the City of Fort St. John wishes to regulate. d. Municipalities will be able to impose additional security requirements Further research and public consultation may be required to determine if the City of Fort St.

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John wishes to regulate. e. The Province will allow cannabis retail stores to operate between the hours of 9am and 11pm, unless the municipality imposes further restrictions. Š Further research and public consultation may be required to determine if the City of Fort St. John wishes to regulate. f. The Province has indicated that in the future there will be a potential review of other types of licenses such as:

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Upon release of any future legislation, further research and public consultation may be required.

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i. Offsite sales for events ii. Consumption lounges

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As a result, staff do not currently have enough information to recommend specific land use and zoning amendments to Council, and therefore present an approach to prohibit all cannabis operations until further details allow for a more refined amendment. Upon legalization it is anticipated that staff will be asked to prepare a new report to Council with recommendations on items such as required setbacks, appropriate zones for this use to be located and other items as mentioned above. With this proposed amendment, the City will be positioned to relax Bylaw restrictions as opposed to catching up with tighter control which may subsequently result in undesirable operations that become existing non non--conforming.

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IMPLICATIONS OF RECOMMENDATION

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COMPLIANCE WITH STRATEGIC GOALS: Goal No. 1 - Enhance community economic development to provide opportunities and sustainability for Fort St. John.

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Goal No. 3 - Build and manage public assets and human resources that support the current and future needs of the community.

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Goal No. 5 - Actualize downtown Fort St. John as a social, vibrant, liveable hub as articulated in the Fort St. John Downtown Action Plan.

COMPLIANCE WITH STRATEGIC PRIORITIES: GENERAL:

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Staff have prepared a Zoning Amendment which will be applicable throughout all zones within the City of Fort St. John, as well as those properties still zoned under PRRD Zoning Bylaw No. 1343, 2001, within the City of Fort St. John’s boundaries. The following provides further information on the need to amend the PRRD Zoning Bylaw.

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Pursuant to Section 34 of the Local Government Act: 1. The bylaws and resolutions of the municipality to which an addition is made apply to the additional area, and continue in force until altered or repealed by the council.

2. Despite subsection (1) but subject to section 44 (6) [continuation of regional district jurisdiction] and the letters patent, if a municipality is incorporated or the area of a municipality is extended, a provision of

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a. A bylaw adopted by a regional district, other than an establishing bylaw, or b. A bylaw adopted by a local trust committee under the Islands Trust Act

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that applies to the area continues in force as if it were a bylaw of the municipality until it is amended or repealed by the council.

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This means that Council is able to amend PRRD Zoning Bylaw No. 1343, 2001, for those properties that are now located within the boundary of the City of Fort St. John.

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ORGANIZATIONAL: Should the amendment be received for information (not approved), then there may be implications to the organization regarding cannabis uses occurring in the City without municipal control, potentially impacting administration resources to resolve negative effects not yet known.

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FINANCIAL: Same as above.

FOLLOW UP ACTION: Should Council give first and second readings, the required notification will proceed and a Public Hearing will be scheduled.

COMMUNITY CONSULTATION: A Public Hearing will be scheduled for April 9, 2018 pursuant to Section 464 of the Local Government Act.

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COMMUNICATION: Should Council choose Alternative Recommendation 1, staff will prepare and host a Public Information Meeting which may include, an Open House, survey, round table or other forms of public engagement.

The following are links to additional information surrounding cannabis legalization in Canada:

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DEPARTMENTS CONSULTED ON THIS REPORT: Planning Legislative Services

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https://news.gov.bc.ca/releases/2018PSSG0006-000151 https://news.gov.bc.ca/files/Cannabis_Private_Retail_Licensing_Guide.pdf https://www.canada.ca/en/services/policing/justice/legalization-regulation-marijuana.html http://www.parl.ca/DocumentViewer/en/42-1/bill/C-45/third-reading

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Attachments: Attachment 1: Ministry of Public Safety and Solicitor General (Province of B.C.) News Release Attachment 2: Provincial Retail Framework Attachment 3: Zoning Amendment Bylaw No. 2419, 2018

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RESPECTFULLY SUBMITTED: Ashley Murphey, Planner 07 Feb 2018

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Cannabis retail, driving laws amongst new firm-on-safety policy decisions

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February 5, 2018

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As British Columbia works towards the federal timeline for legalization of non-medical cannabis in July 2018, the Province continues to set policy direction to meet the needs and expectations of British Columbians.

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“As a result of months of engagement, additional research and analysis, we continue to build the Province’s regulatory framework and have set policy direction on other key aspects of how nonmedical cannabis will be regulated in B.C.,” said Mike Farnworth, Minister of Public Safety and Solicitor General. “These decisions include safeguards for the retail sales of non-medical cannabis and are driven by our priorities of protecting youth, promoting health and safety, keeping the criminal element out of cannabis and keeping our roads safe.”

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The following decisions will inform the development of legislation in preparation for federal legalization of non-medical cannabis in July.

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Retail framework

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As was announced in December 2017, government is releasing details on the Province’s proposed retail framework. British Columbians of legal age will be able to purchase non-medical cannabis through privately run retail stores or government-operated retail stores and government online sales. B.C.’s Liquor Distribution Branch (LDB) will operate a new standalone network of public retail stores and the Liquor Control and Licensing Branch (LCLB) will be responsible for licensing private stores and monitoring the retail sector.

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The operating rules governing public and private retail stores will be similar to those currently in place for liquor. However, to promote responsible use, licensed retailers will not be able to sell cannabis in the same stores as liquor or tobacco. In urban areas, licensed retailers will only be allowed to sell cannabis and cannabis accessories, and will be prohibited from selling other products, such as food, gas, clothing and lottery.

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The B.C. government recognizes that retail access for people in rural areas will require a different approach than those used in urban communities and will establish exceptions for rural non-medical cannabis retail stores, similar to those of rural liquor stores. The criteria for determining these rural areas are currently under development.

This spring, the Province will launch an early registration process for individuals and businesses who are interested in applying for a cannabis retail licence. Although B.C. will not cap the number of retail licences available, licences will not be issued without the support of local governments, which will have the authority to make local decisions, based on the needs of their communities.

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Additional details on the retail framework, including frequently asked questions for potential applicants, are available at: https://news.gov.bc.ca/files/Cannabis_Private_Retail_Licensing_Guide.pdf

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Personal public possession limits

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Adults aged 19 years and older will be allowed to possess up to 30 grams of non-medical cannabis in a public place, which aligns with the federal government's proposed possession limit for adults.

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Those under the legal age of 19 years will be prohibited from possessing any amount of nonmedical cannabis. Additionally, cannabis transported in a motor vehicle will need to be in a sealed package, or inaccessible to vehicle occupants.

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Places of use

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B.C. 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.

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Local governments will be able to set additional restrictions, as they do now for tobacco use. In addition, landlords and strata councils will be able to restrict or prohibit non-medical cannabis smoking and vaping at tenanted and strata properties.

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Personal cultivation

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B.C. 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 used as day cares. In addition, landlords and strata councils will be able restrict or prohibit home cultivation.

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Drug-impaired driving

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Drug-impaired driving will continue to be illegal and B.C. will increase training for law enforcement in this area. B.C. will also toughen provincial regulations to give police more tools to remove drug-impaired drivers from the road and deter drug-affected driving, including:

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B.C. will create a new 90-day administrative driving prohibition (ADP) for drug-affected driving; and The current zero-tolerance restrictions for the presence of alcohol for drivers in the Graduated Licensing Program (GLP) will be expanded to include zero tolerance for the presence of THC, the active ingredient in cannabis.

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“National legalization of non-medical cannabis represents an historic shift in public policy. This provincial regulatory framework provides a sound foundation to support the provincial goals that prioritize public health and safety,” Farnworth said. “That said, July 2018 is only the beginning of our journey, and these changes will not happen overnight. We fully anticipate all levels of government will need to continue to assess and refine cannabis policy and regulation in the months and years to come.”

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In December 2017, the Province announced that British Columbia’s minimum age to possess, purchase and consume non-medical cannabis will be 19 years old, and that the LDB will be the wholesale distributor of non-medical cannabis in B.C.

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Government plans to introduce legislation in the spring legislative session to affect these policy decisions. It will also launch a public education campaign to ensure broad public awareness of the provincial rules before they come into force. For more detailed information, please visit: https://www2.gov.bc.ca/gov/content/safety/public-safety/cannabis

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Learn More:

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The draft federal Cannabis Act (Bill C-45) can be found here: http://www.parl.ca/LegisInfo/BillDetails.aspx?billId=8886269

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To learn more about B.C.’s cannabis public engagement, visit: http://engage.gov.bc.ca/BCcannabisregulation/

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B.C. Cannabis PRIVATE RETAIL LICENSING GUIDE Applications and Operations

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Copyright Š February 2018, Province of British Columbia.

All rights reserved.

This material is owned by the Government of British Columbia and protected by copyright law. It may not be reproduced or redistributed without the prior written permission of the Province of British Columbia.

B. C . Ca n n a b i s P R I VAT E R E TA I L L I C E N S I N G G U I D E A p p l i c a t i o n s a n d O p e ra t i o n s

APPLICATIONS AND OPERATIONS

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WHO IS THIS GUIDE FOR?

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WHO IS ELIGIBLE?

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APPLICATION PROCESS Eligibility Application: Required Information Application: Local Government Requirements

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Contents

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5 LICENCES

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6 OPERATIONS 6 Operations: Physical store 7 Operations: General

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INSPECTIONS AND COMPLIANCE

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RURAL AREAS

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FURTHER RESOURCES

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B.C. Cannabis PRIVATE RETAIL LICENSING GUIDE

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Applications and Operations 01

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In B.C., the wholesale distribution of non-medical cannabis will be solely through the Liquor Distribution Branch (LDB). The LDB will be the operator of government-run retail stores and the Liquor Control and Licensing Branch (LCLB) will be responsible for licensing and monitoring the retail sector using a mixed public/private model.

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Who is this guide for?

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The rules governing retail stores will be similar to those currently in place for liquor, and public and private retailers will have similar operating rules. Note that while this document sets out Government’s intentions for B.C.’s retail framework, it is subject to legislation yet to be passed at both the federal and provincial levels.

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This guide provides information for those who are considering applying for a provincial licence to retail non-medical cannabis. It contains preliminary information to help applicants make business decisions and describes the application process. This information will also assist local governments in preparing for potential retail store applications within their communities.

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The Province recognizes that retail access in rural areas will require a different approach than the one employed in urban communities. There is a separate section related to rural areas at the end of this document.

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Engagement with Indigenous governments and organizations is an important element in the development of the provincial regulatory framework for non-medical cannabis. To ensure the retail model appropriately addresses the unique considerations that must be taken into account with respect to Indigenous peoples, the Province remains committed to working in partnership with Indigenous peoples, governments and organizations. These discussions are ongoing and will continue beyond the initial date of federal legalization of cannabis.

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Who is eligible?

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All applicants will be assessed using the same evaluation criteria, which includes obtaining local government support and background checks of police/criminal records which will be examined on a case by case basis.

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Application Process TI N M EE

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■■ What is the process for applying for a non-medical cannabis retail licence?

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In spring 2018, the Province will launch an online application portal for individuals and businesses who are interested in applying for a non-medical cannabis retail licence. Additional information on applicant registration will be posted on the website https://www2.gov.bc.ca/gov/content/ employment-business/business/liquor-regulation-licensing/cannabis-regulation as it becomes available.

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When the application portal opens, you may start the application process by entering the required information and documents. This will allow you to provide the required information early so that the assessment of your application can begin as soon as possible once the applicable legislation is passed.

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■■ How long will the application process take?

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The Province is committed to conducting thorough reviews of applicants and applications in order to ensure that licensed retailers will operate in a safe and lawful manner. A significant number of applications are anticipated, and plans are being put in place to enable the applications to be processed as efficiently as possible.

■■ Will there be an application fee?

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Yes, each applicant will be required to pay an application fee and a licensing fee. The amount of the fees has not yet been determined. Once the fees have been determined, they will be posted here https://www2.gov.bc.ca/gov/content/employment-business/business/liquor-regulationlicensing/cannabis-regulation.

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Eligibility

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■■ If I operated an illegal dispensary prior to legalization, am I prohibited from

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receiving a licence to operate legally?

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Having operated an illegal dispensary will not, on its own, exclude you from being considered for a licence.

All applicants will be assessed using the same evaluation criteria, including background checks and local government support. Persons who have operated dispensaries prior to legalization will not receive preferential treatment in the provincial application process.

■■ Does having a record of criminal activity exclude me, or a shareholder in my

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company, from obtaining a non-medical cannabis retail licence?

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Having a record of criminal activity will not necessarily exclude you from obtaining a licence. As part of the required background check, police/criminal records will be examined on a case by case basis and evaluated in relation to their relevance to the application and the recentness of the activity or offence(s) committed. For example, low risk criminal activity may not exclude a person from becoming a licensee whereas associations with organized crime will exclude a person from becoming a licensee.

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■■ I already have a liquor and/or tobacco licence. Am I automatically allowed to sell

non-medical cannabis at my liquor store?

■■ If I, a family member, or a business partner, have an interest in a federally

licensed producer or processor, can I be considered for a retail licence?

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Yes, a person or company may have an interest in both a producer and a retailer. However, the LCLB will place restrictions on the business relationship between the producer and the retailer. Where there is a close association (financial or otherwise) between a licensed producer and a non-medical cannabis retail business, the retail business will be prohibited from selling any products from the licensed producer. This restriction ensures that the market remains diverse and larger participants do not consolidate and control the market. The Province may create exceptions in the future to support micro-producers.

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No, you must apply for a non-medical cannabis retail licence. In addition, if you are granted a licence, you will be required to operate the non-medical retail cannabis store in a completely separate business location from any liquor and/or tobacco sales.

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Application: Required Information

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■■ Will I have to undergo a background check?

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Yes, you will be required to consent to a background check in order to be considered for a licence. Policy work is currently underway to determine which members of a corporation, partnership, or other legal business will be required to undergo a background check.

■■ What kind of information do I need to supply to the Province about my company?

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Depending on the type of entity your company is (corporation, partnership, society, etc.) the application system will prompt you to supply the related documents and names of partners, shareholders, directors, officers, and/or senior management.

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■■ What information do I have to provide about my proposed location?

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You will need to provide the parcel identifier number (PID), proof of ownership or a copy of a fully executed lease that does not expire for at least 12 months from the date of licence approval, and a floor plan. If additional information is necessary it will be requested during the application process.

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■■ Does my store have to be a certain distance from schools or other retailers?

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The Province will not impose distance requirements for non-medical cannabis retailers. However, local governments will have the authority to impose additional requirements. Therefore, you should inquire with your local government about local requirements before committing to a location.

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■■ Are there any rules about what I can name my store?

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Your store name must be approved by the LCLB. The name of your store cannot be misleading as to what type of business you operate. As a non-medical cannabis retailer, you cannot choose a name that would lead people to believe you are a provider of medical cannabis. For example, the words “pharmacy”, “apothecary”, and “dispensary” all have meanings linked to the selling of medicines, so these words cannot be used in association with a non-medical cannabis store.

You must also comply with federal legislation and regulations respecting advertising and promotion.

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Application: Local Government Requirements

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The Province will permit local governments to decide whether they wish to have a non-medical cannabis retail store in their community. For the Province to issue a licence, applicants must have the support of the local government in the community where the proposed store would be located.

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■■ What is the process for obtaining local government support?

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The local government must ask residents in the vicinity of the proposed retail location to comment on how the store would impact the community. The local government must consider this public input when deciding whether or not to support the application and must notify the LCLB of their decision by way of a council resolution.

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■■ Can I get local government support in advance of the provincial application?

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The Province is working with local governments and the Union of B.C. Municipalities to develop the application process, including what information local governments will need to have in order to provide informed comments on the application. Further details will be announced once they are available. In the interim, it is recommended you check with your local government to ensure that you meet any criteria that are specific to your jurisdiction and to ensure that proper zoning is in place.

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Yes, public stores must also have local government support.

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■■ Do public stores have to go through the local government process?

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To sell non-medical cannabis in British Columbia, retailers will be required to obtain a licence from the Province. There will be two types of retail licences for:

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self-contained cannabis stores, and

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stores in rural communities.

■■ Will there be a cap on the number of non-medical cannabis retail licences issued

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in B.C.?

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The Province is not capping the number of licences issued. However, local governments will have the authority to make local decisions based on the needs of their communities. This means that some local governments may choose not to allow retail cannabis stores, while others may choose to cap the number of stores that are permitted to operate within their jurisdiction.

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■■ I only want to sell medical cannabis; can I apply for a medical cannabis

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retail licence?

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No, medical cannabis will continue to be sold online by federally licensed producers only. However, like other Canadians, medical users will be able to buy cannabis from retailers of non-medical cannabis.

The federal government has committed to conducting a review of the medical cannabis system in five years.

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■■ Will there be any restrictions on where a non-medical cannabis retail outlet can

be located?

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other events?

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■■ Will sales of non-medical cannabis be permitted at outdoor festivals and

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No, not at this time. The Province is focussed on introducing a safe and responsible retail non-medical cannabis sector; consideration will be given to other types of licences at a later date.

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■■ Will the Province be licensing consumption lounges?

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Initially, non-medical cannabis sales will only be permitted at the licenced retail site. Offsite sales may be considered in the future.

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Operations E

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Provincial and federal governments are committed to ensuring that non-medical cannabis is sold in a lawful, responsible manner. To this end, a range of requirements will be put in place; from who a retailer can buy product from, to who may enter a store, to what type of products may be sold.

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Operations: Physical store

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■■ Are there any rules about the physical layout or construction of my store?

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To protect youth, the federal government requires that cannabis products must not be visible from outside your store. There will be many different ways for you to achieve this requirement (e.g. window designs).

In addition, please remember that you must comply with federal requirements respecting advertising and promotion.

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■■ Are there any security requirements for my location?

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You have a strong incentive to secure your premises both during and after operating hours to protect your inventory from theft. The Province is considering what security requirements will be necessary. In addition, local governments may also choose to impose security requirements.

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■■ Can I sell non-medical cannabis as part of another business such as a liquor store

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or pharmacy?

There will be exceptions for rural stores, similar to rural liquor stores. The criteria for determining rural areas are currently under development.

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Not at this time. The Province may consider exceptions in the future, but for now, your non-medical cannabis retail store must be a self-contained business.

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The Province is not regulating the location of stores. However, local governments may choose to do so.

For example, local governments may set requirements about the proximity of a store to another cannabis store, schools, daycares or other places.

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Operations: General ■■ Can minors enter my store?

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No. Unlike liquor stores, where minors are permitted if they are accompanied by a parent or guardian, minors must not enter your cannabis retail store.

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■■ What hours can I be open?

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There will be exceptions for rural stores to allow entrance by minors. The criteria for determining rural areas are under development.

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Cannabis retail stores can operate between 9 am to 11 pm unless further restrictions are put in place by your local government.

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■■ Are there any rules around pricing?

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Policy work is ongoing and information on pricing will be made available as soon as possible.

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■■ Is there a limit on how much non-medical cannabis I can sell to a person?

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The proposed federal Cannabis Act prohibits an individual from possessing in a public place a total amount of non-medical cannabis, in any authorized form, that is equivalent to more than 30 grams of dried cannabis. Non-medical cannabis must not be sold in amounts greater than this.

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This means that if you sell different forms of non-medical cannabis to a single customer, the combined total amount sold must not exceed the equivalent amount of 30 grams of dried cannabis.

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Equivalent amounts to 30 grams of dried non-medical cannabis for other cannabis products are listed in Schedule 3 of the proposed federal Cannabis Act.

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■■ Can I sell products online?

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No, only the public retailer will be permitted to sell non-medical cannabis products online at this time.

Consideration may be given to allowing private online sales in the future.

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■■ Can people consume non-medical cannabis in my store?

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No. Consumption of any kind will not be permitted in the store, and providing samples will not be permitted.

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■■ Can I deliver my products?

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No, retailers will not be permitted to offer a delivery service.

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■■ Do my employees and/or I need any special training or background checks?

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In collaboration with industry, the Province will develop a mandatory training program for non-medical cannabis retail employees, which will be implemented over time. The Province will also be developing a registration requirement for employees which will include background checks. Details of this program are still being developed. Information will be provided as soon as that work is complete.

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■■ Where do I have to store my inventory?

All cannabis products will be required to be stored at your retail site. No offsite storage will be permitted.

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■■ Can I advertise my product?

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The federal government has committed to creating a national seed-to-sale tracking system. This is currently under development and more information on retailers’ responsibilities in relation to this system will be announced as it becomes available.

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■■ Will I be required to have a certain product tracking/inventory control system?

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The federal government is regulating the advertisement of cannabis under the proposed Cannabis Act (Bill C-45). See the “Further Resources” section at the end of this document for a link to the Bill.

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■■ Can my store sponsor events or teams?

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The federal government is regulating sponsorship under the proposed Cannabis Act (Bill C-45). See the “Further Resources” section at the end of this document for a link to the Bill.

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Supply

■■ How do I obtain non-medical cannabis to sell in my store?

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The LDB will be the only source of legal wholesale non-medical cannabis. Retailers will not be permitted to purchase any cannabis products directly from licensed producers or any other source.

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■■ Can I make financial arrangements with federally licensed producers?

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You cannot accept or request any inducement from a producer. This means you must not:

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pay money to secure access to a supplier’s product;

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shelf space;

accept money in exchange for agreeing not to stock a competitor’s product.

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product line.

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make agreements that give a retailer exclusive access to a producer’s product, or

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■■ What types of non-medical cannabis can I sell?

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You can sell dried cannabis, cannabis oils and seeds that comply with federal requirements.

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■■ Can I sell edibles?

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No, the proposed federal Cannabis Act does not permit the commercial production of edibles at this time.

Therefore, you cannot legally sell them. The federal government has stated that edibles will be regulated within 12 months of legalization.

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■■ What else can I sell besides dried cannabis and cannabis oil?

You may sell “cannabis accessories,” as defined in the proposed federal Cannabis Act:

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“Cannabis accessory” means a thing, including rolling papers or wraps, holders, pipes, water pipes, bongs and vaporizers that is represented to be used in the consumption of cannabis or a thing that is represented to be used in the production of cannabis.

You cannot sell snacks, tobacco or other non-cannabis related items.

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■■ What format will cannabis products be distributed in?

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LDB will distribute pre-packaged product only, with labelling compliant with federal standards, in readyto-sell formats (no bulk products). The product brands belong to the licensed federal producers.

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Inspections and Compliance

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Retailers will not be authorized to re-package the product with their own branding. Information about specific size formats will be confirmed at a later date.

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To ensure that non-medical cannabis is being sold in a lawful and responsible manner, the Province will establish a compliance program that will include education, inspection and enforcement activities. The focus will be on encouraging voluntary compliance.

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■■ How often will I be inspected?

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Your store will be inspected at least once annually and any time the LCLB investigates a complaint about your store.

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■■ What happens if I am found to be out of compliance?

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If an inspector observes a contravention of the provincial legislation at your establishment, you will be issued a Contravention Notice and the inspector may recommend enforcement action. Penalties for contraventions are under development, but could include a monetary penalty or a licence suspension or cancellation. There will be a reconsideration process for licensees that wish to challenge the result of an enforcement hearing.

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■■ Can the police enter and inspect my store?

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Yes, police can enter and inspect your store to ensure you are operating in compliance with the legal requirements.

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■■ What should I do with any product I have obtained from unlicensed sources?

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Once you have been issued your licence you must not sell cannabis obtained from a source other than the LDB.

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Rural Areas TI N

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The Province is aware that it may be necessary to introduce special provisions for rural areas in order to provide access to non-medical cannabis to rural populations.

■■ Can an existing business in a rural area be authorized to sell non-medical

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cannabis, like they are for liquor?

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The Province is considering this possibility because a self-contained non-medical cannabis retail store may not be a viable business in some rural areas.

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■■ Will the rural agency store model (RAS) used for liquor be used for cannabis?

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Many of the operational requirements of the RAS model used for liquor may be applied to non-medical cannabis. However, the Province is still evaluating how to best meet the need for rural access.

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■■ If I operate a RAS, will I automatically be able to sell non-medical cannabis?

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No, if a current RAS operator is interested in retailing non-medical cannabis, they will be required to apply for a licence specifically for non-medical cannabis.

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Further Resources

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Contact information: cannabisregs@gov.bc.ca

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Bill C-45 the draft federal Act can be found here http://www.parl.ca/LegisInfo/BillDetails. aspx?billId=8886269

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G TI N M EE R LA U EG R 8 01 ,2 26 C H M AR E TH AT IL C N U O C TO TE D EN ES PR LY AL IN IG R O

B. C . Ca n n a b i s P R I VAT E R E TA I L L I C E N S I N G G U I D E A p p l i c a t i o n s a n d O p e ra t i o n s

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CITY OF FORT ST. JOHN BYLAW NO. 2419, 2018

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A bylaw to amend City of Fort St. John Zoning Bylaw No. 2181, 2014 and Peace River Regional District Zoning Bylaw No. 1343, 2001

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In accordance with Sections 34 and 479 of the Local Government Act, the Council of the City of Fort St. John, in open meeting assembled, enacts as follows: Fort St. John Zoning Bylaw No. 2181, 2014 is hereby amended in the following manner:

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Section 3 – Definitions be amended to include the following:

means cannabis as defined in the Controlled Drugs and Substances Act or Cannabis Act and includes any products containing cannabis;

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means the cultivating, growing, producing, packaging, storing, distributing, dispensing, advertising, trading or selling of cannabis or its derivatives but excludes a MEDICAL MARIHUANA PRODUCTION FACILITY.

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Cannabis Operation

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Cannabis

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means a facility used for the cultivation, growth, processing, testing, storage, destruction, packaging, shipping or distribution of marihuana for medical purposes as lawfully permitted and authorized under the Federal Access to Cannabis for Medical Purposes Regulations (ACMPR) or any subsequent legislation which may be enacted in substitution thereof.

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Medical Marihuana Production Facility

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Section 3 – Definitions be repealed and replaced by the following:

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Section 4 - General Regulations be repealed and replaced by the following:

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Section 4.3 – Permitted Uses

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No land, building or structure in any zone shall be used for any purpose other than a specified permitted use for the zone in which it is located. Without limiting the foregoing, unless otherwise specifically permitted in this bylaw, the following uses are prohibited in all zones:

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1. Cannabis Operation 2. Medical Marihuana Production Facility except as an allowable farm use on lands within the Agricultural Land Reserve.

Zoning Amendment Bylaw No. 2419, 2018

Peace River Regional District Zoning Bylaw No. 1342, 2001 in respect of the land shaded and described as the extension area on the attached map in Schedule A Letters Patent of the City of Fort St. John which is attached to and forming part of this bylaw is hereby amended in the following manner:

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2.

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Part II – DEFINITIONS Section 3 – Definitions be amended to include the following:

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Cannabis means cannabis as defined in the Controlled Drugs and Substances Act or Cannabis Act and includes any products containing cannabis;

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Cannabis Operation means the cultivating, growing, producing, packaging, storing, distributing, dispensing, advertising, trading or selling of cannabis or its derivatives but excludes a MEDICAL MARIHUANA PRODUCTION FACILITY;

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Medical Marihuana Production Facility means a facility used for the cultivation, growth, processing, testing, storage, destruction, packaging, shipping or distribution of marihuana for medical purposes as lawfully permitted and authorized under the Federal Access to Cannabis for Medical Purposes Regulations (ACMPR) or any subsequent legislation which may be enacted in substitution thereof.

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Section 6 – General Prohibition

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Part III – BASIC PROVISIONS

No person shall: (a) Use or occupy any land, building or structure; or (b) Construct, or site, or alter any building or structure; or (c) Create a parcel by subdivision; other than specifically permitted by this bylaw;

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be amended to include the following: Without limiting the foregoing, unless otherwise specifically permitted in this Bylaw, the following uses are prohibited in all zones:

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2.

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(a) (b)

Cannabis Operation Medical Marihuana Production Facility except as an allowable farm use on lands within the Agricultural Land Reserve.

If any section, subsection sentence, clause or phrase of this bylaw is for any reason held to be invalid by the decision of any court of competent jurisdiction, the invalid portion shall be severed and the part that is invalid shall not affect the validity of the remainder.

This Bylaw may be cited as Zoning Amendment Bylaw No. 2419, 2018.

READ FOR A FIRST TIME THIS

DAY OF

2018

READ FOR A SECOND TIME THIS

DAY OF

2018

2018

READ FOR A THIRD TIME THIS

DAY OF

2018

2018

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DAY OF

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ADOPTED THIS

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DAY OF

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PUBLIC HEARING HELD THIS

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and advertised in the

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Notice of Public Hearing posted to the City’s website on Alaska Highway News on

JANET PRESTLEY, DIRECTOR OF LEGISLATIVE AND ADMINISTRATIVE SERVICES

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LORI ACKERMAN MAYOR

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Zoning Amendment Bylaw No. 2419, 2018

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CITY OF FORT ST. JOHN BYLAW NO. 2419, 2018 A bylaw to amend City of Fort St. John Zoning Bylaw No. 2181, 2014 and Peace River Regional District Zoning Bylaw No. 1343, 2001 In accordance with Sections 34 and 479 of the Local Government Act, the Council of the City of Fort St. John, in open meeting assembled, enacts as follows: 1.

Fort St. John Zoning Bylaw No. 2181, 2014 is hereby amended in the following manner: Section 3 – Definitions be amended to include the following: Cannabis

Cannabis Operation

means cannabis as defined in the Controlled Drugs and Substances Act or Cannabis Act and includes any products containing cannabis; means the cultivating, growing, producing, packaging, storing, distributing, dispensing, advertising, trading or selling of cannabis or its derivatives but excludes a MEDICAL MARIHUANA PRODUCTION FACILITY.

Section 3 – Definitions be repealed and replaced by the following: Medical Marihuana Production Facility

means a facility used for the cultivation, growth, processing, testing, storage, destruction, packaging, shipping or distribution of marihuana for medical purposes as lawfully permitted and authorized under the Federal Access to Cannabis for Medical Purposes Regulations (ACMPR) or any subsequent legislation which may be enacted in substitution thereof.

Section 4 - General Regulations be repealed and replaced by the following: Section 4.3 – Permitted Uses No land, building or structure in any zone shall be used for any purpose other than a specified permitted use for the zone in which it is located. Without limiting the foregoing, unless otherwise specifically permitted in this bylaw, the following uses are prohibited in all zones: 1. Cannabis Operation 2. Medical Marihuana Production Facility except as an allowable farm use on lands within the Agricultural Land Reserve.

Zoning Amendment Bylaw No. 2419, 2018 2.

Page 2

Peace River Regional District Zoning Bylaw No. 1342, 2001 in respect of the land shaded and described as the extension area on the attached map in Schedule A Letters Patent of the City of Fort St. John which is attached to and forming part of this bylaw is hereby amended in the following manner: Part II – DEFINITIONS Section 3 – Definitions be amended to include the following: Cannabis means cannabis as defined in the Controlled Drugs and Substances Act or Cannabis Act and includes any products containing cannabis; Cannabis Operation means the cultivating, growing, producing, packaging, storing, distributing, dispensing, advertising, trading or selling of cannabis or its derivatives but excludes a MEDICAL MARIHUANA PRODUCTION FACILITY; Medical Marihuana Production Facility means a facility used for the cultivation, growth, processing, testing, storage, destruction, packaging, shipping or distribution of marihuana for medical purposes as lawfully permitted and authorized under the Federal Access to Cannabis for Medical Purposes Regulations (ACMPR) or any subsequent legislation which may be enacted in substitution thereof.

Part III – BASIC PROVISIONS Section 6 – General Prohibition 1.

No person shall: (a) Use or occupy any land, building or structure; or (b) Construct, or site, or alter any building or structure; or (c) Create a parcel by subdivision; other than specifically permitted by this bylaw;

be amended to include the following: 2.

Without limiting the foregoing, unless otherwise specifically permitted in this Bylaw, the following uses are prohibited in all zones: (a) (b)

Cannabis Operation Medical Marihuana Production Facility except as an allowable farm use on lands within the Agricultural Land Reserve.

3.

If any section, subsection sentence, clause or phrase of this bylaw is for any reason held to be invalid by the decision of any court of competent jurisdiction, the invalid portion shall be severed and the part that is invalid shall not affect the validity of the remainder.

4.

This Bylaw may be cited as Zoning Amendment Bylaw No. 2419, 2018.

Zoning Amendment Bylaw No. 2419, 2018

Page 3

READ FOR A FIRST TIME THIS

DAY OF

2018

READ FOR A SECOND TIME THIS

DAY OF

2018

Notice of Public Hearing posted to the Cityâ&#x20AC;&#x2122;s website on Alaska Highway News on

and advertised in the

PUBLIC HEARING HELD THIS

DAY OF

2018

READ FOR A THIRD TIME THIS

DAY OF

2018

ADOPTED THIS

LORI ACKERMAN MAYOR

DAY OF

2018

JANET PRESTLEY, DIRECTOR OF LEGISLATIVE AND ADMINISTRATIVE SERVICES

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