TOWN OF VIEW ROYAL COMMITTEE OF THE WHOLE REPORT: MEDICAL MARIJUANA DISPENSARIES AND DRUG PARAPHERNALIA SALES

COMMITTEE OF THE WHOLE REPORT

TO: Committee of the Whole DATE: October 5, 2015 FROM: James Davison MCIP RPP, Planner MEETING DATE: October 13, 2015

MEDICAL MARIJUANA DISPENSARIES AND DRUG PARAPHERNALIA SALES

RECOMMENDATION

THAT Committee receive this report for information.

CHIEF ADMINISTRATIVE OFFICER'S COMMENTS

I concur with the recommendation.

DIRECTOR OF DEVELOPMENT SERVICES' COMMENTS

I concur with the recommendation.

DIRECTOR OF PROTECTIVE SERVICES AND BYLAW SERVICES' COMMENTS

I concur with the recommendation.

PURPOSE OF REPORT

The purpose of this report is to outline options for the regulation of medical marijuana dispensaries and drug paraphernalia stores.

BACKGROUND

Dispensaries On the issue of medical marijuana dispensaries, there are two approaches the Town can take: prohibition or regulation. The federal government has made it clear: they are illegal. Health Canada has not declared medical marijuana to be a legal drug or a medicine:

Dried marijuana is not an approved drug or medicine in Canada. The Government of Canada does not endorse the use of marijuana, but the courts have required reasonable access to a legal source of marijuana when authorized by a healthcare practitioner – Health Canada

The College of Pharmacists of British Columbia has informed the Town that the dispensing of marijuana is not a pharmaceutical function. It follows that a 'pharmacy' use in a zone would not permit a medical marijuana dispensary. In short, the Town does not have a use within its Zoning Bylaw which would permit a dispensary.

Health Canada has serious concerns over the public health impact of the proliferation of medical marijuana dispensaries. The vast majority of dispensaries are not licensed to produce or dispense medical marijuana, and are doing so illegally.

In what has been termed the 'Vancouver Approach', several local governments, including Victoria and Vancouver, have decided to take a regulatory approach to the dispensaries. The reasoning that these local governments have used is that the production and sale of marijuana has been an existing, unregulated and illegal (but thriving) industry for decades, that the recent Supreme Court of Canada decision on access to medical marijuana is a precursor to outright legalization, and the approach that marijuana is entirely illegal is at odds with the cities' current enforcement approach and capacity.

In the City of Vancouver, dispensaries are charged an annual $30,000 license fee and are prohibited from operating within 300 metres of community centres, schools and other dispensaries.

Drug Paraphernalia Sales These shops could be described as accessory to the consumption of marijuana. Unlike a dispensary, however, it is not illegal to sell smoking and other accessories. An outright prohibition on the sale of these is not possible within our Zoning Bylaw.

The Town of Esquimalt has taken the following regulatory approach:

"Drug Paraphernalia" means any product, equipment, thing or material of any kind primarily used to produce, process, package, store, inject, ingest, inhale or otherwise introduce into the human body a controlled substance as defined in the Controlled Drugs and Substances Act.

Drug Paraphernalia

(1) No person shall operate a business for the purposes of selling drug paraphernalia within a 0.5 kilometer radius from any point on the grounds of an Elementary, Junior Secondary or High School within the Municipality.

(2) No person carrying on a business shall display or permit to be displayed on a street or in any window facing a street, or elsewhere where it can be seen by a person outside the premises, any drug paraphernalia.

(3) No person carrying on a business shall sell drug paraphernalia to any person under the age of 19 years except where the premises are licensed as a pharmacy under the Pharmacists, Pharmacy Operations and Drug Scheduling Act.

(4) No person shall operate a business for the purposes of selling drug paraphernalia except between the hours of 8:00 a.m. and 6:00 p.m.

Drug Paraphernalia Sales $2,000.00

ISSUES AND ANALYSIS

Dispensaries Regulating and taxing dispensaries would require that the Town disregard federal regulations over the production and distribution of a controlled substance over an issue which has not been a pressing concern for the Town of View Royal. There is reason to speculate that the majority of marijuana procured at dispensaries is consumed recreationally, and that the typical dispensary's business model is around profiting from recreational use. There would be no mechanism to regulate the quality or content of the product being sold.

There is the issue of public health. Staff feels that there are significant public health concerns with permitting dispensaries. Marijuana is, according to Health Canada, a substance which can have serious negative health impacts; particularly in young people. Permitting the sale of marijuana is not a positive public health direction for the Town.

Staff believes that the Town should take the position that dispensaries are illegal and that they have a negative public health impact. The Town should prohibit them.

Drug Paraphernalia The sale of such paraphernalia would be permitted under any commercial zone which has 'retail store' as a permitted use. Similar to other 'vice' uses such as adult entertainment, staff advises that the Town should take the Esquimalt approach – to charge a high business license fee, to limit the hours of operation, and to limit the location and visibility of such stores. Below are possible amendments to the Business License Bylaw:

Definition

Regulation

No person shall operate a business for the purposes of selling drug paraphernalia within a 0.5 kilometer radius from any point on the grounds of an Elementary, Junior Secondary or High School within the Municipality.
No person carrying on a business shall display or permit to be displayed on a street or in any window facing a street, or elsewhere where it can be seen by a person outside the premises, any drug paraphernalia.
No person carrying on a business shall sell drug paraphernalia to any person under the age of 19 years except where the premises are licensed as a pharmacy under the Pharmacists, Pharmacy Operations and Drug Scheduling Act.
No person shall operate a business for the purposes of selling drug paraphernalia except between the hours of 8:00 a.m. and 6:00 p.m.

A business license for Drug Paraphernalia Sales would be $2,000.00