Item - 2017.LS21.2

The Licensing and Standards Committee recommends that:

1.  City Council endorse the Province of Ontario's plans for a provincially-operated retail model for cannabis sales that does not permit sales by private entities.

2.  City Council request the Province of Ontario, in the development of provincial cannabis regulations, work with the City of Toronto and the Toronto Police Service to develop appropriate enforcement strategies, including provincially funded and/or provided enforcement to support efforts to eliminate illegal cannabis sales.

 
3.  City Council request the Province of Ontario to ensure that municipal concerns and input form a part of the consideration when determining locations of provincially-operated cannabis retail outlets.

4.  City Council request that the Government of Canada and the Province of Ontario ensure that the City of Toronto is adequately funded on a full cost recovery basis for the City's role in implementation and enforcement arising from the legalization of cannabis, including enforcement costs related to the operations of illegal cannabis sales and use.
 

5.  City Council request the Province of Ontario enhance the City's enforcement authorities and tools to address illegal sales of cannabis through cannabis specific legislation or by amendments to the City of Toronto Act, 2006, the Planning Act, the Provincial Offences Act  and/or any other applicable statute to:

a.  Prohibit sales of cannabis outside the legal regime and provide authorities for the City to enforce the prohibition;

b.  Authorize and/or establish higher maximum penalties/fines for offences relating to sales of cannabis outside of the legal regime;

c.  Provide the City with the appropriate authority to effectively combat illegal cannabis storefronts, such as the power to expediently issue or obtain closure orders for premises; and

d.  Authorize the City to establish additional regulation and offences to address concerns related to cannabis, including illegal sales, consumption or other nuisance-related concerns, as may be required.

 
6.  City Council request the Province of Ontario consult with the City when developing regulations related to places of consumption for cannabis and that the Province provide the City with detailed guidance and adequate resources and authorities to enforce regulations.

 
7.  City Council request the Province of Ontario consult with the City when developing regulations for home cultivation of cannabis and that the Province provide the City with detailed guidance and adequate resources and authorities to enforce regulations.
 

8.  City Council request the Government of Canada closely oversee cannabis production sites, ensure rigorous safety and security standards are met, and ensure that federal licensing is subject to City regulations including that the City can continue to regulate the location of production facilities through zoning.

 
9.  City Council ask the Government of Canada and the Province of Ontario to earmark funding for public education, ongoing research and monitoring on cannabis use and health impacts, and evaluation of the new legal regime.
 

10.  City Council forward this report to the Province of Ontario's Legalization of Cannabis Secretariat, the Government of Canada's Cannabis Legalization and Regulation Secretariat, the Federation of Canadian Municipalities, and the Association of Municipalities of Ontario.

 
11.  City Council request the Executive Director, Municipal Licensing and Standards, in consultation with the interdivisional cannabis working group, report back to the appropriate committee once federal and provincial governments have finalized the regulatory frameworks for cannabis with recommendations on next steps for the City of Toronto.

The Executive Director, Municipal Licensing and Standards gave a presentation on the City of Toronto Recommendations for Cannabis Legalization.

On April 13, 2017, the federal government introduced legislation to legalize and regulate cannabis. If passed, Bill C-45, the Cannabis Act, would impose measures to control access to non-medical cannabis, including fresh and dry cannabis, seedlings and plants, and cannabis oil, through restrictions on age and possession, by establishing criminal penalties for sale of cannabis outside of the legal framework, and by introducing rules around promotion, labelling, and packaging. For now, the federal government has not proposed to permit edible cannabis products.

Under the proposed rules, the federal government would regulate cannabis production and the provincial government would regulate cannabis distribution and retail sales. 

Throughout the summer, the Province of Ontario has been conducting consultations to determine the potential impacts of cannabis legalization and to inform the future provincial legislation. On September 8, 2017, the provincial government announced its framework for cannabis legalization. The province plans to:

- Establish a provincially-operated retail model, with stores operated by a subsidiary to the Liquor Control Board of Ontario (LCBO) that sell only cannabis (no co-location with alcohol);

- Restrict places where cannabis can be used to private residences only;

- Set minimum age of purchase at 19 years old;

- Develop a prevention and harm reduction approach to educate the public;

- Develop an enforcement strategy with municipalities, local police services, the Ontario Provincial Police (OPP) and the federal government to help shut down illegal retailers; and

- Hold an enforcement summit with police, public health experts, and stakeholders to inform enforcement efforts.
 

City staff have convened an interdivisional working group to identify municipal concerns relating to the legalization of cannabis and the resources and tools needed to assist the City in their potential role within the legalized system. The interdivisional group consists of: Municipal Licensing and Standards, Toronto Public Health, City Planning, Toronto Fire Services, Toronto Building, Corporate Finance, Toronto Police Service, City Manager's Office, Economic Development and Culture, and Legal Services.

In June 2017, the Board of Health (BOH) adopted recommendations to the provincial and federal governments to consider as they develop and finalize legislation to legalize cannabis. This report builds on and complements recommendations adopted by the BOH.

This report supports the province's plan to sell cannabis through a provincially-operated retail model. This model is preferred as it is a stronger regulatory mechanism than a private retail model, and would allow the province to closely oversee the operations of retailers and ensure that they operate in a responsible and accountable manner to uphold public health and safety. A provincially-operated retail model guided by public health objectives and social responsibility would help ensure that public health and safety is paramount, thereby reducing local impacts that would require extensive municipal oversight and enforcement.

Further, this report proposes that the City make the following recommendations to the province:

- Ensure that the City's concerns are considered when determining locations of cannabis storefronts.

- Commit to fully recover municipal costs of implementing and enforcing the new framework for legalized cannabis.

- Empower the City with municipal enforcement tools to use against storefronts operating illegally.

- Consult with the City when developing regulations for home cultivation of cannabis.
 

Staff will continue to work interdivisionally and with the province to ensure that the City is represented as the provincial government finalizes its plans for legalization. Staff will report to the appropriate committee with recommendations on next steps for the City of Toronto, as needed.