City prepares stage for public meeting on medical marijuana legislation
By Timothy Schafer
Although business licence fees proposed for a medical cannabis operation in the city are still considered to be “too high” according to public feedback, the city is sticking to its financial guns as it prepares for an early March public meeting showdown on the draft bylaw.
City council agreed to keep the cost of a medical cannabis business licence at $5,000, a sum which 16 of the 38 respondents to a city public feedback opportunity said was too high — the most frequently expressed comment.
The $5,000 fee the city will be charging for a dispensary business licence was established to provide for the regulation of the dispensaries solely by the city and reflects the regulatory and enforcement responsibility — or the costs — incurred by the city. Some cities, such as Vancouver, charge $30,000.
Although much of the draft bylaw is still open for debate at the upcoming public meeting, some councilors have opposed the existence of such a bylaw altogether. Coun. Janice Morrison said she would be voting against the bylaw no matter what.
“Unfortunately there is no legal mechanism in Canada that allows medical marijuana dispensaries, or compassion clubs, to sell marijuana to the public,” she said, whether a person has a licence to purchase or to produce it or not.
“For now it is still illegal and I will not support this bylaw.” Coun. Bob Adams agreed with Morrison.
Unlike prescription drugs and alcohol — which are regulated provincially and federally — the city would be completely responsible for regulating the dispensaries, read a city staff report to council.
Council recently chose to regulate short-term rentals and substantially increased these fees from those charged to bed and breakfasts.
The bylaw will impact four city departments — administration, business licence inspector, bylaw enforcement and police — while active enforcement of regulations is not required for other businesses receiving a business licence from the city.
In order to consider the new legislation, council moved to rescind Zoning Amendment (Marijuana Operation) Bylaw 3353, which had been on the books following council’s decision to reconsider adoption of this bylaw in November 2016.
In its place council passed the first three readings of Medical Cannabis Business Licence Bylaw No. 3363, as well as the first two readings of Zoning Amendment (Cannabis-related Business) Bylaw No. 3368. A public meeting has been scheduled for Monday, March 6.
Some communities have prohibited medical cannabis businesses, such as in Trail and Castlegar, and some have chosen not to regulate and issue business licenses at all under retail (Rossland, Kimberley and Invermere).
The city is introducing regulations for medical cannabis businesses, to reduce the community impacts of these businesses while maintaining access to medical cannabis.
Although it is pursuing legislation, adoption of the regulations by the city will not legalize or permit the sale of cannabis, which is the jurisdiction of the federal government.
“When we have federal regulations it will be ground zero and we will start again,” said Coun. Michael Dailly. “This really is a temporary business licence until we see what the federal government will do.”
“At that time provincial and federal governments will regulate,” said city manager Kevin Cormack.
The primary enforcement tool for the city will be through Bylaw Notice Enforcement where the maximum penalty is $500. The bylaw does include language that indicates a maximum penalty of $10,000 may be applied as is permitted under the Offence Act — which is a general provision included in all bylaws.
“This is standard language in all our bylaws?” asked Coun. Anna Purcell.
City director of corporate services Frances Long agreed.
The draft bylaws for Nelson are based on the best practices around the province, modeled after regulations established in the City of Victoria, City of Vancouver and the District of Squamish.
Under the bylaw the city will permit the use of cannabis dispensaries in specified downtown zones (C1 and MU4), with “additional requirements limiting proximity to certain facilities and each other.”
The separation limit is 300 metres east and west in the C-1 zone, and 150 m. of separation north and south in the same zone; in the MU-4 zone it would be 150 m. separation as well as 80 m. separation from schools, youth and recreation centres.
People will be able to apply to council to vary the proximity requirements in the Zoning Bylaw if necessary. The fee for a minor development variance permit will be either $500 or $750 depending on whether one or two variances are required.
There is also a cap of six licences for cannabis dispensaries in the city as council heard the current slate of dispensaries were meeting the needs of the community and region — one for every 1,800 residents.
Victoria has one dispensary for every 20,000 residents.
All six existing dispensaries would require a temporary use permit, because all are too close to each other, until they can apply for a variance to stay in their respective locations.
If someone wanted to open a seventh business they could apply for a
rezoning amendment. The number of dispensaries were limited and the distances were reduced to accommodate Nelson's smaller footprint, said Mayor Deb Kozak.
“If you are looking at the community of Nelson itself, it seems like it is already well served,” she said.
But the one thing that has not been addressed is what happens if the city gets more than six applications that meet requirements, asked Dailly.
“How are we as a council going to determine which six get a licence?” he asked. “I wonder if there is any best practice for that? If we do get more applicants than we are saying are allowed, I am dreading this because we don’t have criteria to determine who gets a licence.”
Cormack said first people who apply for a licence could get the licence. He also said council will likely look at the quality of the application as well.
“But council will ultimately have to make some choices, “ he said.
The licence would stay with the business owner. Although the business
can be sold, the business licence cannot be sold.
The security provisions presented in the bylaw are the same as in the other regulating communities bylaws, the report noted, which is also common practice in liquor stores and pharmacies.
“One dispensary owner indicated that they are already in compliance and the cost and installation is not onerous,” the report read.
The security requirements were reviewed by the Nelson police chief,
Paul Burkart.
“Because the dispensaries often deal in cash and have a desired product, they are at higher risk of being targeted in thefts, break and enters and robberies,” he said in a written comment.
He recommended that the security requirements in the bylaw remain as written.
In addition to beefing up security, cannabis-related businesses must not “allow a person under the age of 19 on the premises unless that person is accompanied by a parent or a legal guardian.”
But those who wish to operate a licensed medical marijuana dispensary will be required to apply. The existing cannabis dispensaries will be allowed to continue to operate until their application and any necessary variances are considered by council. If approved, a business license will be issued.
The bylaws would be in place until the federal and provincial
governments regulate both recreational and medicinal marijuana.
People can view the draft bylaws at:
- Medical Cannabis Business Licence Bylaw: See Here
- Zoning Amendment Bylaw: See Here
- Zoning Map: See Here