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7/25/2019 2016 AKBLG Resolutions
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THE CORPORATION OF THE CITY OF NELSONREQUEST TO APPEAR AS A DELEGATION
DATE: February 1, 2016 RegularTOPIC: Call for 2016 AKBLG ResolutionsPROPOSAL: Second call for 2016 resolutions for the Association of Kootenay
Boundary Local Governments (AKBLG) to be held in Kimberley in
April 2016PROPOSED BY: Staff
_____________________________________________________________________ ANALYSIS SUMMARY:In advance of the 2016 AKBLG Annual General Meeting (in Kimberley) the City ofNelson has received two requests and a final call for resolutions for consideration at the
AGM to be held in Kimberley from April 27 – 29, 2016. Council direction is required fortimely submission of resolutions from the City of Nelson.
BENEFITS OR DISADVANTAGES AND NEGATIVE IMPACTS: Each year local governments in the Kootenay Boundary region receive notice of the
AKBLG Annual General Meeting and are requested to submit resolutions for the AGM inadvance of the meeting. The deadline for resolutions is Monday, February 26, 2016.
Resolutions are required in the format specified on or before the deadline in order to beconsidered at the 2016 AGM. Resolutions that pass at the AKBLG AGM are presentedat the Union of British Columbia Municipalities (UBCM) Annual Convention each year.
AKBLG Resolutions for the past two years can be reviewed on the AKBLG website.
LEGISLATIVE IMPACTS, PRECEDENTS, POLICIES:Section 10 of the AKBLG Constitution provides firm rules resolutions. It is important to
note that- Special Resolutions are any resolution pertaining to a new issue that hasarisen between the deadline and the AGM. Special Resolutions require a two-thirdsvote in support of consideration prior to being introduced onto the floor of the AGM, andmay only be introduced after all Ordinary Resolutions have been considered or if twothirds of the Delegates present determine to hear the resolution immediately; and- Late Resolutions are held over to the next AGM.
Background materials and a brief statement of any previous actions taken on the matterare also required in support of each resolution. Resolutions may only contain two‘Whereas’ clauses.
COSTS AND BUDGET IMPACT - REVENUE GENERATION: There are no costs associated with preparation of AKBLG Resolutions.
IMPACT ON SUSTAINABILITY OBJECTIVES AND STAFF RESOURCES:Certified Council resolutions with relevant background information are sent to the
AKBLG as directed by Council each year.
COMMUNICATION:
Resolutions are submitted electronically to the AKBLG on City letterhead.
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OPTIONS AND ALTERNATIVES: 1. Prepare and submit City of Nelson resolutions for 2016 AKBLG AGM2. Do not submit resolutions for the 2016 AKBLG AGM3. Refer to staff with other direction
ATTACHMENTS:Final call for 2016 AKBLG Resolutions
Proposed resolutions with background information relating to1. Capital funding for hospitals2. Improvements to the income assistance service delivery3. Marijuana legislation4. Marijuana revenues
RECOMMENDATION: That Council direct staff regarding City of Nelson resolutions for submission to the
Association of Kootenay and Boundary Local Government Association Annual GeneralMeeting to be held April 27-29, 2016 in Kimberley, BC.
AUTHOR: REVIEWED BY:
_______________________________ ______________________________DEPUTY CORPORATE OFFICER CITY MANAGER
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DRAFT RESOLUTION #1
THAT the following recommendation be endorsed by Nelson City Council and submittedto the Association of Kootenay & Boundary Local Governments at the Annual GeneralMeeting to be held in Kimberley on April 27 - 29, 2016
Regional Hospi tal District Capital Funding
WHEREAS Regional Hospital Districts were created by provincial legislation to raise a
‘local share’ of capital costs for hospital equipment and building through property
taxation with the ‘local share’ historically held at 40% for regional hospital capital
projects with the Province contributing 60%;
AND WHEREAS: local governments have limited ways to generate funding to pay for
local services and infrastructure since property taxes are the primary source of revenue
and are being stretched to meet the diverse demands local governments already face
and cannot sustain the increased load in meeting hospital board expenditures.
THEREFORE BE IT RESOLVED THAT:
The Union of BC Municipalities petition the provincial government to acknowledge that
property tax revenue is an unsuitable avenue to fund hospital infrastructure renewal
projects, and prioritizes the urgent review of the historic cost sharing ratio with a
recommendation to amend current policy accordingly.
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1Note: PHSA was not included in the study as none of their programs have an RHD partner
7/25/2019 2016 AKBLG Resolutions
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2The RHD Observations were included in an update report from 2007 and do not necessarily reflect the views of the other two
partners in this process – the MOHS or the HAs.
7/25/2019 2016 AKBLG Resolutions
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DRAFT RESOLUTION #2
THAT the following recommendation be endorsed by Nelson City Council and submittedto the Association of Kootenay & Boundary Local Governments at the Annual General
Meeting to be held in Kimberley on April 27 - 29, 2016
Improvements to Income Assistance Service Delivery
WHEREAS; in recent years the Ministry of Social Development and Social Innovation
has changed its service delivery model such that in-person, direct services have been
dramatically reduced and income assistance services are now primarily provided
remotely by centralized telephone line and over the internet;
AND WHEREAS; these service delivery changes have introduced significant barriers to
people on or seeking income assistance and made it excessively difficult for many
individuals to receive the support they require.
THEREFORE BE IT RESOLVED THAT:
The Association of Kootenay Boundary Local Government requests that the Union ofBC Municipalities work with the Ministry of Social Development and Social Innovation to
ensure that people requiring help to access income assistance receive such help
appropriate to their needs and abilities (in-person where required) in a timely manner,
and in a way that does not place additional economic burden on that person (e.g.
repeatedly using pay as you go cell phone minutes waiting on hold for excessive
lengths of time, paying for computer/internet usage, travelling long distances to Ministry
offices from surrounding areas due to local office closures, etc.) and further, in a
manner that does not download the responsibility for this assistance to other service
providers without compensation for such additional work.
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Welfare Service Delivery Problems at MSDSI
WELFARE SERVICE DELIVERY ISSUES AT
THE MINISTRY OF SOCIAL DEVELOPMENT AND SOCIAL INNOVATION
Backgrounder
Individuals receiving income assistance have very little money. Many live in unstable
housing and some are homeless. This means that many do not own a phone, and
many that do own phones use “pay as you go” plans that run out quickly. Most
income assistance recipients do not own a computer and many are not computer
literate. For those that do have a computer, few can afford internet access.
CHANGES TO MINISTRY’S SERVICE DELIVERY
Over the last five years, the Ministry of Social Development and Social Innovation
(“Ministry” or “MSDSI”) has made radical changes to the way it delivers its services:
• Income assistance services are now delivered primarily through a centralized
phone line and over the internet.
• While local Ministry offices still exist, in-person, face to face services have
been dramatically reduced. Fourteen Ministry offices have been closed
completely since 2005, and in September 2014, 11 more offices across the
province (including the Nelson and Trail offices) reduced their hours to onlythree hours a day, making it impossible for many in communities in the North
and Interior regions to be able to speak to Ministry staff in person. These
offices regularly have long lineups, and many people in surrounding
communities cannot get to the office during the short window it is open due to
limited bus schedules and ride availability.
• Wait times on the centralized phone line are long (averaging almost an hour
as of September 2015), and when callers finally get through the Ministry
places limits on the length of the call.
• The initial application for income assistance is confusing, lengthy and must be
done online, with no dedicated Ministry services available to assist applicants
with its completion.
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Welfare Service Delivery Problems at MSDSI
OMBUDSPERSON COMPLAINT
In May 2015, BC Public Interest Advocacy Centre (BCPIAC), a public interest law
office, filed a complaint with the BC Ombudsperson, asking that it review access and
service delivery issues at the Ministry. BCPIAC represented nine non-profit
advocacy and social service agencies from across BC (including The AdvocacyCentre in Nelson) in this systemic complaint to the BC Ombudsperson.
This complaint set out how the current administrative design of income assistance
services creates serious barriers for the most vulnerable people in the province to
access essential funding for their basic needs.
Then Ombudsperson Kim Carter declined to investigate the issues at a systemic
level, and said that they would prefer to continue to devote their resources to
investigating individual complaints. BCPIAC is currently working to assist individuals
in filing individual complaints about service delivery.
HOW MUNICIPALITIES CAN HELP
It is critical that these issues be raised and acknowledged at every possible
opportunity. Many of the people most impacted by the service delivery problems are
those least in a position to complain about them—many fear retaliation against them
by the Ministry if they complain, some have been so disempowered by their
interactions with the Ministry that they do not see service quality as something they
have a right to complaint about, and for many, entering yet another bureaucratic
process (i.e. the complaint process) is not possible when they are trying to secure
shelter and feed their families.
In November 2015 the Select Standing Committee on Finance and Government
Service issued the following recommendation after their provincial tour where they
heard from individuals and groups about the barriers in accessing welfare:
Improve access to Ministry of Social Development and Social Innovationservices and resources by providing more in-person support to augmenttelephone and online service delivery models to ensure that those in needcan gain timely and efficient access.
We need more voices to call for changes to the way services are delivered so that
the most vulnerable are able to access the basic benefits to which they are legally
entitled. Municipalities taking a stand against these service delivery changes that
deny basic access would assist in demonstrating to the provincial government that
current way welfare services are delivered is unacceptable.
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Welfare Service Delivery Problems at MSDSI
BACKGROUND ON WAIT TIMES AND CUTS TO IN-PERSON SERVICE CUTS
i. WAIT TIMES ON THE CENTRALIZED PHONE LINE
Data from the MSDSI on the wait times on the Automated Telephone Inquiry (ATI)
phone line in response to an FOI request made by BCPIAC indicates that wait timesat the centralized phone line had reached an average of almost one hour in the
summer of 2015.
ii . OFFICE CLOSURES AND SERVICE HOUR REDUCTIONS
Since 2005, the following 15 MSDSI offices have closed:
• 610 St. John’s Street in Port Moody (2005)
• 5021 Kingsway in Burnaby (2006)
• 33 3rd Avenue in Burns Lake (2006)
• 1023 Davie Street in Vancouver (2006)
• 2100 Lableux Road in Nanaimo (2006)
• 7388 Vedder in Sardis (2007)
• 504 Cottonwood Avenue in Coquitlam (2009)
• 7953 Scott Road in Delta (2010)
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Welfare Service Delivery Problems at MSDSI
• 828 West 8th Avenue in Vancouver (2013)1
• 2484 Renfrew St, in Vancouver (2013)
• 60 Needham St, in Nanaimo (2013)
• 475 E. Broadway in Vancouver (“China Creek”) (2014)2
• 2280 Kingsway in Vancouver (“Killarney”) (2014)
• 10095 Whalley Blvd in Surrey (2014)
Since 2011 the Ministry has also reduced the number of hours clients can get
help from a Ministry staff person in at least 14 offices:
• As of May 2011, the Ministry office in Hope went from being open five days a
week to two days a week.
• In September 2014, the following 11 Ministry offices in the North and the
Interior reduced office hours to only three hours a day from 1pm to 4pmMonday to Friday:
o Nelson
o 100 Mile House
o West Kelowna
o Oliver
o Prince Rupert
o Smithers
o Trail
o Grand Forkso Merritt
o Dawson Creek
o Fort St John
• the Kiwassa and Dockside Ministry offices in the Downtown Eastside have
limited their drop-in hours to two hours per day from 9am-10am and 1pm-
2pm
1 This office did not technically close but stopped providing face to face services to income assistance and
disability assistance recipients; these recipients were transferred based on postal code to the China Creek,Mountainview, and Killarney offices. The Killarney and China Creek offices both closed the following year, withthese clients then all being transferred to the Moutainview location.
2 These clients were transferred to the Mountainview location.
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DRAFT RESOLUTION #3
THAT the following recommendation be endorsed by Nelson City Council and submittedto the Association of Kootenay & Boundary Local Governments at the Annual GeneralMeeting to be held in Kimberley on April 27 - 29, 2016
Integration of federal marijuana legislation with regional and local regulation
WHEREAS the Liberal Government of Canada has publicly declared its intention to
legalize, regulate and restrict access to marijuana with creation of a
federal/provincial/territorial task force with input from experts in public health, substance
abuse and law enforcement to design a new system of marijuana sales and distribution
with appropriate federal and provincial excise taxes applied;
AND WHEREAS the Liberal Government of Canada Standing Policy Committee has
committed to working with the provinces and local governments of Canada on a
coordinated regulatory approach to marijuana, respecting provincial health jurisdiction
and particular regional concerns and practices;
THEREFORE BE IT RESOLVED THAT the Government of Canada formally recognizes
the importance of partnership with provincial and municipal governments in ending the
prohibition of marijuana in Canada; commits to consultations with provincial and
municipal governments, and adopts a coordinated approach when introducing
regulation of marijuana by providing provincial and municipal governments adequate
time to align and integrate regional and local regulations and practices with new federal
laws when they are enacted.
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“Bearing in mind $1 million/ year buys roughly 12 new cops, 14 teachers or public
health nurses, ask yourself: Couldn’t ($400 million in law enforcement, court and
corrections) be bett er spent? The federal Liberal Party obviously thinks so…” – Ian Mulgrew, Vancouver Sun, January 18, 2012
Table of Contents
Introduction ................................................................................................................................................ 3
Policy Resolution 117: Legalize and Regulate Marijuana ............................................................................ 4
Overview ..................................................................................................................................................... 5Questions .................................................................................................................................................... 8
Policy.........................................................................................................................................................9
International Response ........................................................................................................................ 11
Legal ...................................................................................................................................................... 11
Public Health ....................................................................................................................................... 121
Logistics ................................................................................................................................................ 13
Summary of Conclusions and Recommendations ..................................................................................... 17
Next Steps ................................................................................................................................................. 38
“Legalize weed, yes, but the devil is in the details…Although polls suggest
Canadians support the idea of legalizing marijuana in general, they’ll want to see
a detailed plan before backing the idea unreservedly. That’s where the work
needs to be done now by the drug reform proponents.” – Gary Mason, Globe and Mail, Feb 2012
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INTRODUCTION
In January 2012, close to 80% of delegates attending the Liberal Party of Canada's Biennial
Policy convention in Ottawa voted in favour of a policy resolution co-sponsored by the Liberal
Party of Canada - British Columbia (LPC-BC) and the Young Liberals of Canada (YLC) to:
LEGALIZE marijuana and ensure the regulation and taxation of its production,
distribution, and use, while enacting strict penalties for illegal trafficking, illegal
importation and exportation, and impaired driving
INVEST significant resources in prevention and education programs designed to
promote awareness of the health risks and consequences of marijuana use and
dependency, especially amongst youth
EXTEND amnesty to all Canadians previously convicted of simple and minimal marijuana
possession, and ensure the elimination of all criminal records related thereto
WORK with the provinces and local governments of Canada on a coordinated regulatory
approach to marijuana which maintains significant federal responsibility for marijuana
control while respecting provincial health jurisdiction and particular regional concerns
and practices
Since the resolution was approved a growing number of Canadians and community leaders
have joined the call to end marijuana prohibition in Canada. At the same time, LPC-BC’s
Standing Policy Committee has been working with the YLC to prepare this paper.
In addition to capturing progress over the past year, the goal of this paper is to provide some
answers to legitimate questions Canadians have about the impact of implementing this policy.
Some questions are answered in one sentence. Others are more complex and require ongoingcivil dialogue. In total, close to 40 questions have been identified in five categories:
1.
Policy
2.
International Response
3. Legal
4. Public Health
5.
Logistics
From the answers to these questions, a framework for legalization emerges – which is
summarized at the conclusion of this paper with suggested next steps.
This paper is not an academic research essay. It is intended to be a practical, plain language
and political document that takes the policy resolution approved by Liberals across Canada in
January 2012 to its next logical step.
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POLICY RESOLUTION 117: LEGALIZE AND REGULATE MARIJUANA
Passed January 15 2012 at the Ottawa 2012 Biennial Convention
WHEREAS, despite almost a century of prohibition, millions of Canadians today regularly consume
marijuana and other cannabis products;
WHEREAS the failed prohibition of marijuana has exhausted countless billions of dollars spent onineffective or incomplete enforcement and has resulted in unnecessarily dangerous and expensive
congestion in our judicial system;
WHEREAS various marijuana decriminalization or legalization policy prescriptions have been
recommended by the 1969-72 Commission of Enquiry into the Non-Medical Use of Drugs, the 2002
Canadian Senate Special Committee on Illegal Drugs, and the 2002 House of Commons Special
Committee on the Non-Medical Use of Drugs;
WHEREAS the legal status quo for the criminal regulation of marijuana continues to endanger Canadians
by generating significant resources for gang-related violent criminal activity and weapons smuggling – a
reality which could be very easily confronted by the regulation and legitimization of Canada’s marijuana
industry;
BE IT RESOLVED that a new Liberal government will:
legalize marijuana and ensure the regulation and taxation of its production, distribution, and
use, while enacting strict penalties for illegal trafficking, illegal importation and exportation, and
impaired driving;
invest significant resources in prevention and education programs designed to promote
awareness of the health risks and consequences of marijuana use and dependency, especially
amongst youth;
extend amnesty to all Canadians previously convicted of simple and minimal marijuana
possession, and ensure the elimination of all criminal records related theretowork with governments of Canada on a coordinated regulatory approach to marijuana
which maintains significant federal responsibility for marijuana control while respecting
provincial health jurisdiction and particular regional concerns and practices.
“After the resolution on marijuana today, there is going to be a group of even happier people
in the Liberal Party…If you want to be part of a free-thinking, innovative, thoughtful,
pragmatic, hopeful, positive, happy people, come and join the Liberal Party of Canada.”
- Interim Liberal Party of Canada Leader Bob Rae, January 15, 2012
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OVERVIEW
A growing number of community and opinion leaders agree the current prohibition of cannabis
is only serving to protect the status quo for organized crime of rich profits, stockpiled weapons
and public executions.
Opinion polls reaffirm the Canadian public is ahead of the current federal government on this
issue. A 2012 poll from Toronto’s Forum Research just after the resolution to lega lize marijuana
was approved at the Liberal Party of Canada’s Policy Convention determined:
60% of respondents in every province support reform of marijuana laws - BC is most
supportive (73%)
the largest demographic group that supports reform of current law is 55 to 64
most favour full legalization and taxation over decriminalization of possession (40-26%)
NDP supporters were the most likely to say they were for easing of current laws (71%),
followed by Liberal supporters (64%) and Conservative supporters (59%)
Subsequent polls have suggested support continues to rise for legalization and regulation.
Here is a summary of other reports that have been published since January:
January 16, 2012 - “A new spirit of openness and a policy in favour of legalizing and
regulating pot will help breathe life into the Liberal Party in western Canada, party members
said Sunday...” – Peter O’Neil, Vancouver Sun
January 17, 2012 – “It is an excellent idea, and the resolution ticks all the correct boxes by
way of justifying it: marijuana’s widespread and safe use, revenue savings and generationthrough taxation, and the fact that it would make Canadians safer from criminal violence.” -
Chris Selly, National Post
January 19, 2012 – “The Liberals are right to make it a political issue…One (Liberal) goal must
be to better differentiate the party from the ruling Conservatives, and in that respect, a new
policy on cannabis legalization represents a start.” (Globe and Mail editorial)
February 15, 2012 – Four former BC Attorneys Generals write an open letter saying, “The
case demonstrating the failure and harms of marijuana prohibition is airtight. The evidence?
Massive profits for organized crime, wide-spread gang violence, easy access to illegal cannabis
for our youth, reduced community safety, and significant – and escalating – cost to taxpayers.”
“ Hallelujah! Canadians agree it’s time to legalize marijuana”
- January 18, 2012 , Vancouver Sun Headline
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February 17, 2012 – The Vancouver Sun endorses legalizing marijuana.
March 28, 2012 – BC’s Provincial Health Officer and Nova Scotia’s Chief Public Health Officer
say Canada should consider the model used to control and tax the sale of tobacco and alcohol
with marijuana as a way to crack down on organized crime, control availability and influence
“cultural norms”. (Globe and Mail)
April 27, 2012 – Eight BC Mayors write a letter to provincial political leaders calling for an
end to marijuana prohibition...North Vancouver Mayor Darrell Mussatto says, “We think our
communities will be safer and our children better protected from criminal elements if we
overturn marijuana prohibition.” Burnaby Mayor Derek Corrigan says, “We put our citizens and
communities at risk by not talking action now.” (Province Newspaper)
July 2, 2012 – A nationwide survey concludes 66% of Canadians think the law should be
changed so people caught with small amounts of marijuana no longer face criminal penalties.
Support is strongest in Atlantic Canada (72%) followed by BC, Saskatchewan, Manitoba and
Ontario (69%). Support is lowest in Alberta (42%). (Postmedia, Global TV)
August 24, 2012 – Due to a lack of resources, “Canadian border agents have been told to
stop looking for illegal drugs leaving the country and instead focus on stopping the export of
illicit nuclear material and stolen cars. The directive is unlikely to make US and other countries
very happy.” (Postmedia News)
September 27, 2012 – Hundreds of BC municipal leaders joined a vote for a policy resolution
at their annual conference to encourage the provincial government to research the regulation
and taxation of marijuana.
December 1, 2012 – A shortage of treatment facilities where drug-addicted parents can stay
with their children is having a devastating impact on at-risk youth in BC, advocates say. (Victoria
Times Colonist)
December 5, 2012 – Health Canada is preparing to publish new regulations to its medical
marijuana access program that could make doctors the sole gatekeepers of the drug. The
President of the Canadian Medical Association says the proposed changes could see fewer
doctors willing to prescribe it. (Sharon Kirkey, Postmedia News)
“As Washington State and Colorado voters now have shown, measures for legalizing the recreational use of
pot increasingly appear to make sense. They may even help turn some young people off the drug. How thento proceed? Well, we obviously have to sort out the various federal/provincial jurisdictional niceties. And we
have to find a workable means of licensing, distributing and selling cannabis. Actually, we in BC already have
one – our provincial liquor store system, which for all its faults, appears well-suited to handle
the drug and ensure it isn’t sold over the counter to kids.”
– Jon Ferry, Province Newspaper, November 2012
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December 7, 2012 – Seattle smokes up – legally. First state to allow personal marijuana use
stands to fill coffers. (Vancouver Sun)
“The result (of marijuana prohibition) is that thousands of otherwise respectable
people, including lawyers, professors, bus drivers and yes, even journalists, engage in arecreational habit that risks a criminal record. But it’s not them I’m particularly
concerned with.
Aside from making an ass of the law, the marijuana business – one of the most
lucrative in BC – enriches all the wrong people, and at no benefit to the community.
The scum who kill in cold blood to protect their turf are the beneficiaries of a
gratuitous shower of riches even Croesus would envy.
Would legalization make marijuana more widely available? Rather the opposite if itwere subject to proper retail controls, as is liquor.
Would it be safer for white-collar professionals indulging at weekends? Certainly.
Would we have at our disposal greater resources for research into addictions, both
alcohol and drug related? Of course. Would legal marijuana put us on a slippery stop
to moral decay? I doubt it.
But I do know it would put a crippling dent in the obscene profits of the drug lords and
their trigger-happy assassins for whom the present law is just dandy, thank you.” -
-
Alan Ferguson, Province Newspaper column, June 3, 2008
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“Everyone believes…that the current approach is not working, but it’s not clear
what we should do.”
– Prime Minister Stephen Harper, April 17, 2012
QUESTIONS
As support for the policy to legalize, tax and regulate marijuana has increased over the past
year, Canadians have asked legitimate questions about how this policy can be implemented in a
practical and organized way. This happened at the end of alcohol prohibition too.
The goal of this paper is to answer common questions and gather the answers into a draft
policy framework. The questions are identified in five categories:
1. Policy
2. International Response
3.
Legal
4. Public Health
5. Logistics
The answers are based on survey responses, new laws in Colorado and Washington, existingCanadian laws and policies, literature and publication reviews.
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POLICY
WHY DO WE WANT TO LEGALIZE MARIJUANA?
While there are many, we focus on five reasons Canada should legalize and regulate marijuana.
1. Fight organized crime.
2. Use the new revenue to support important government services.
3. The current law does more harm than good. In addition to filling bank accounts of
criminals, prohibition delivers:
uncontrolled access for youth – and first contact with organized crime
no product safety and labeling standards for millions of consumers
criminal records for thousands of average Canadians
a significant burden on government budgets to enforce and prosecute
4.
Millions already consume marijuana in Canada each year.
5. Promotion of evidence-based policy instead of political ideology. The current law is not
achieving its goal to prevent use – particularly among youth who enjoy uncontrolled
access now. A growing number of community leaders, researchers, opinion leaders andvoters agree it is time to reconsider prohibition.
COMMONLY ASKED POLICY QUESTIONS ABOUT LEGALIZING MARIJUANA:
1.
WHY DO WE WANT TO LEG ALIZE IT?2. WHY NOT DECRIMINALIZATION INSTEAD OF LEGALIZATION?
3. WHO WILL BE RESPONSIBLE FOR THE TAXATION AND REGULATION?
4. SHOULD IT BE PART OF A FEDERAL/PROVINCIAL AGREEMENT?
5. WHAT WOULD BE THE LEGAL AGE TO CONSUME IT?
6. WILL PEOPLE BE ALLOWED TO CONSUME IN PUBLIC OR AROUND CHILDREN?
7. SHOULD LEGALIZATION EXTEND TO OTHER DRUGS?
8.
HOW WOULD THIS IMPACT PEOPLE AUTHORIZED TO USE IT FOR MED ICAL PURPOSES?
9. WHAT WILL BE THE TOTAL ECONOMIC IMPACT?
10 . HOW WILL WE GUARANTEE THAT THERE WILL NOT CONTINUE TO BE A BLACK MARKET?
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WOULD A SYSTEM OF PARTIAL LEGALIZATION LIKE DECRIMINALIZATION
BE OPTIMAL INSTEAD?
No. Decriminalization of small amounts would lead to a system where it is legal to possess but
not supply. Without legalizing production, sale and consumption together, organized crime
will continue to meet the market demand and law enforcement agencies and health care
professionals will remain in limbo.
WHO WILL BE RESPONSIBLE FOR THE TAXATION AND REGULATION OF
MARIJUANA? SHOULD LEGALIZATION BE PART OF A
FEDERAL/PROVINCIAL AGREEMENT?
While the implementation of a regulated system must include collaboration with provincial
and local governments, the Government of Canada must demonstrate leadership and take
the first step. We recommend this first step to be a legal framework which:
Is led by federal Ministers of Justice and Health
Developed by a special Cabinet Committee on Organized Crime
Reflects feedback from provinces and provides administrative flexibility
Includes a federal/provincial regulatory and revenue-sharing agreement based on
models established for the production, distribution and sale of alcohol and tobacco
Establishes an interim authority to oversee implementation
Is subject to review by a House of Commons Standing Committee
Once the law is approved in Parliament, provincial and local governments would be expected to
respect its provisions – as they do now with other controlled substances.
WHAT WOULD BE THE LEGAL AGE FOR CONSUMPTION?
We recommend the legal age for consumption be the same as alcohol for each province.
SHOULD LEGALIZATION EXTEND TO OTHER DRUGS?
No. Police, justice and correction resources should be redirected to support violent crime
investigations and attack other revenue streams of organized crime.
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WILL PEOPLE BE ALLOWED TO CONSUME MARIJUANA IN PUBLIC OR
AROUND CHILDREN?
Provincial and municipal governments should have some flexibility within the federal regulatory
framework to place reasonable restrictions on where people can consume and purchase
cannabis – as is currently done with alcohol and tobacco use. This would include activities to
protect the health and well-being of children and employees.
Washington State is proposing to prohibit the consumption of marijuana in public places where
alcohol is banned and federal facilities (military bases, national parks, etc). Failure to comply in
Washington is subject to a fine of $100 however police officers are not yet issuing tickets.
WHAT WILL BE THE TOTAL ECONOMIC IMPACT OF LEGALIZATION?
The economic impact of legalizing marijuana in Canada would be very positive for the
government and taxpayers. The full scale of this benefit is the only question and it has beenthe subject of increasing study. Here are some recent examples:
Washington State estimates a fully functioning marijuana market will generate over $1.9
billion over five years – based on 360,000 annual consumers.
A November 2012 research paper from Simon Fraser University published in the
International Journal of Drug Policy concluded legalizing marijuana in BC may generate
$2.5 billion in government tax and licensing revenues over five years – based on a
domestic provincial market of over 400,000 annual consumers
A 2009 report from the RAND Corporation for the European Commission concluded
global retail expenditures on cannabis ranged from €40-120 billion ($60-180 billion CDN)
– based on a global market of over 200 million consumers.
RAND’s 2009 report estimates Canada’s annual retail cannabis market at .29% of GDP or
€2.769 billion ($3 – 4 billion CDN) – based on a market of 3 million annual consumers
A 2004 Fraser Institute study estimated BC’s marijuana crop’s value at 2-4% of the
province’s GDP.
New revenues will be complemented by the ability to reallocate law enforcement, correction,
border and justice resources.
Thousands of Canadians will also find direct and indirect employment. Opportunities include:
agriculture, technology and energy supply
specialty retail stores
transportation, distribution, packaging and manufacturing
inspectors, engineers, quality controllers, licensing officers and health researchers
legal, insurance, financial and accounting services
marketing, communication, tourism and public education
alternative products - non-smokable, cosmetic products, building materials, fabrics
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WOULD PEOPLE CONSUMING MARIJUANA FOR MEDICAL PURPOSES
CONTINUE TO BE IN A SPECIAL CATEGORY?
The regulations exempting medical use of marijuana are only necessary because of the current
law. With the end of prohibition, there will be no need for this legal exemption – which has
proven difficult to manage for many patients, doctors, designated growers, municipal
authorities and law enforcement personnel.
In addition to saving tax dollars, replacing the federal medical marijuana program with a new
legal framework may encourage doctors and researchers to more freely explore health impacts,
alternatives to smoking and potential for inclusion of medical use in provincial health insurance
programs.
HOW WILL WE GUARANTEE THAT THERE STILL WON’T BE A BLACK
MARKET FOR MARIJUANA?While ending prohibition will put many criminals out of work, it won’t end organized crime.
That said, black market sales of illegal alcohol and tobacco have not become a problem post-
prohibition.
Ongoing vigilance will be required and the federal government should develop a
comprehensive set of policies to attach organized crime through the Special Cabinet Committee
we have proposed.
However, strategic elements of a legal framework can help prevent a marijuana black market
from re-emerging:
ensure the legal price is lower than the current price and quality is equal – or better
ensure packaging reflects consumer demand and product is accessible for adults
establish zero-tolerance on import/export
increase criminal penalties for export, unregulated suppliers and trafficking to minors
reallocate some police and law enforcement resources to border patrol
allow opportunities for Canadians to continue to grow limited amounts of marijuana
for personal use
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INTERNATIONAL RESPONSE
Background – United Nations
Canada is a party to three international conventions that regulate drug control:
Single Convention on Narcotic Drugs, 1961 (“1961 Convention”)
Convention on Psychotropic Substances, 1971 (“1971 Convention”)
1988 United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic
Substances (“1988 Convention”).
Article 3, paragraph 2 of the 1988 UN Convention requires that:
“Each Party shall adopt such measures as may be necessary under its domestic law, when
committed intentionally, the possession, purchase or cultivation of narcotic drugs or
psychotropic substances for personal consumption contrary to the provisions of the 1961
Convention, the 1961 Convention as amended or the 1971 Convention.” (Marijuana is one
such substance)
COMMONLY ASKED QUESTIONS ABOUT THE POTENTIAL INTERNATIONAL RESPONSE TO
ENDING MARIJUANA PROHIBITION IN CANADA:
1. ARE WE ALLOWED TO LEGALIZE IT UNDER INTERNATIONAL LAW? IS IT AGAINST
CANADA’S TREATY?
2.
HOW CAN WE DO THIS W ITH THE UNITED STATES SO OPPOSED?
3. HOW WILL WE CONTROL CROSS-BORDER TRAFFICKING?
4. IS THE ILLICIT MARIJUANA TRADE IN C ANADA CONNECTED TO VIOLENT CARTELS IN
MEXICO, CENTRAL AND SOUTH AMERICA?
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ARE WE ALLOWED TO LEGALIZE IT UNDER INTERNATIONAL LAW?
IS IT AGAINST CANADA’S TREATY OBLIGATIONS?
This question is more common with government than the general public. Here are four answers:
1.
Canada is a sovereign country - free to make our own laws through a democraticallyelected government in the House of Commons.
2.
Other UN member countries have already improved their marijuana laws without
sanction.
3. Canada should lead a movement to amend out-of-date international conventions to
reflect changes in medical evidence and international consumption rates. They have
been used as an excuse for inaction and regressive thinking for too long.
4.
Canada has rights to withdraw from these UN conventions, as granted in the articles ofeach convention - exercisable by written notification to the UN Secretary-General.
Withdrawal would take effect one year after the date notification was received.
While some may still make the case that legalization is prima facie inconsistent with Canada’s
international legal obligations, Canada’s Special Senate Committee on Illegal Drugs identified
a number of factors in 2002 that provide state parties to these conventions with leeway
around strict application. For example:
Review, amendment and withdrawal mechanisms exist in the Conventions. (see answer
four above)
The conventions impose moral obligations on states, not legal ones. There are nopenalties or sanctions for violating the conventions other than a public rebuke by some
of the signatories.
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HOW CAN WE LEGALIZE MARIJUANA IF THE UNITED STATES IS SO
OPPOSED TO IT?
This is an important question because the US is Canada’s most important international ally and
trading partner. The issue will continue to evolve against prohibition in the US with successful
November 2012 state referendums to legalize, tax and regulate marijuana in Colorado and
Washington state. This is reinforced by the subsequent reluctance of the US President to
enforce federal laws in these states.
In this light of these recent developments and estimates more than 25 million Americans
consume marijuana each year (RAND 2009), here are two answers to this question:
1.
Public opinion is changing in the United States which does not appear to be as opposed
to the idea of legalization as they may have been in the past.
2. Canada is a sovereign country and our domestic policies regarding crime prevention and
public health should not be dictated from Washington DC. While, federal Liberal
governments have a long history of co-operation with the US on a wide range of social,
economic and global issues, we also are not afraid of respectful disagreement. Recent
examples include made in Canada decisions to:
stay out of the Iraq war
recognize gay marriage
aggressively label tobacco products with health warnings
legalize marijuana for compassionate medical purposes
HOW WILL WE CONTROL INTERNATIONAL TRADE OF CANNABIS? WILL
CANADIANS BE ABLE TO TRAVEL WITH IT?
Out of respect to other countries that may not share Canada’s progressive views, we
recommend the government maintain a zero-tolerance of any import or export of marijuana –
including countries and states that have decriminalized or ended prohibition.
To enforce this zero-tolerance policy, we recommend dramatically increasing criminal penalties
for the export of marijuana and reallocation of some domestic marijuana enforcement
resources to border patrol and intelligence. The vast majority of these resources would be
allocated at US border crossings.
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“It is time to stop being dumb witnesses to a global deceit.” - Guatemala President Otto Perez, April 13, 2012
IS CANADA’S MARIJUANA TRADE CONNECTED TO VIOLENT CARTELS IN
MEXICO, CENTRAL AND SOUTH AMERICA?
Numerous public and public police reports connect Canada’s marijuana industry to
international drug and weapons smuggling – including violent cartels operating in Mexico,
Central and South America. Here are some recent examples:
April 18, 2012 - Linking the trade in B.C.-grown marijuana to drug violence in Mexico
and the United States, a former U.S. federal prosecutor has added his voice to a growing
chorus in favour of legalizing pot. “Gangs affiliated with dangerous drug cartels are
distributing marijuana grown in British Columbia – it’s being exchanged for guns and
cocaine that come up here [to BC]” John McKay, a former U.S. federal prosecutor, said
at a press conference in a downtown Vancouver hotel on Wednesday. “So the negative
impact of that is more than just proceeds going to Mexican drug cartels, but also what’s
coming back to Canada because of this production.” (Globe and Mail)
August 29, 2012 – “A fugitive Hells Angel wanted in connection with an alleged drug-
trafficking operation turned himself in at the Burnaby RCMP detachment Tuesday…The
charges follow a 21-month investigation into allegations that marijuana grown in BC’s
southeast was being sold in BC and elsewhere to fund the import of cocaine to
Canada…Mounties seized $4 million in the weekend ra id, including a plastic bag of $100
bills that was spotted with mould.” (Vancouver Sun)
September 13, 2012 – “The number of gang-affiliate federal prisoners has increased
32% to more than 2300 in the past five years…Considering what smart people around
the globe have said for half a century, I say legalize pot. We have created a massive
underground global economy that generates billions for organized crime – drug profits
are the vital lifeblood of gangs, the primary source of disposable income supporting
their lifestyle and conspicuous consumption…The recent spate of killings should trigger
a realistic public discussion, one that considers radical solutions and broadens our
approach to dealing with gangs.” – Ian Mulgrew, Vancouver Sun
November 21, 2012 – Police allege marijuana grow-ops in the BC Okanagan area
were used to fund the importation of cocaine into Canada. They say they seized more
than $4 million in drug money during the 20 month operation. (Province Newspaper)
Over the past year, leaders of Mexico, Central and South America have called on the United
States to reconsider the war on drugs and join a growing discussion about a new approach
that attacks the profit and business model of organized crime.
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LEGAL
WHAT CANADIAN LAWS NEED TO BE CHANGED?
A new legal framework must repeal Schedule II of the Controlled Drugs and Substances Act ,
establish new penalties for operating outside of the legal system, create a new taxation and
regulatory structure that reflects discussions with provinces and other stakeholders.
WHAT HAVE THE COURTS SAID ABOUT THE CURRENT LAW?
We feel legalization of marijuana should be achieved through the political process – not
imposed by courts. It is important for the Liberal Party of Canada to include ending prohibition
in its next platform as a strategy to combat organized crime. This will ensure a mandate for
change is offered to the majority of Canadians who want cannabis regulated and taxed.
Most recent court rulings on the legalization of marijuana have been focused on medical use.
Judgments have regularly favoured more access over less. Conclusions from these decisions
should be considered as a legal framework is developed. These may include:
It is likely possession can’t be legalized without provisions for purchase and supply -
an argument against a half-measure of decriminalizing possession of small amounts
any new policy framework would likely need to allow for alternative uses and
derivatives - including non-smokable and food products
people would likely be free to grow their own for personal use under a legalized
system – just as some make their own beer or wine today
the government should not overly limit supply options for consumers
In the absence of a progressive federal government, proponents may continue to initiate
expensive court challenges against prohibition in the future.
COMMONLY ASKED QUESTIONS ABOUT LEGAL ISSUES ASSOCIATED WITH THE LEGALIZATION OF
MARIJUANA:
1.
WHAT LAW(S) NEED TO BE CHANGED?2. WHAT HAVE THE COURTS SAID ABOUT THE CURRENT LAW?
3. IS THE CURRENT LAW BEING ENFORCED? HOW MANY RESOURCES ARE ALLOCATED TO
MARIJUANA CONTROL NOW AND WOULD THOSE COSTS BE ELIMINATED IF IT WAS LEGALIZED?
4. WILL PEOPLE BE ALLOWED TO GROW IT IN THEIR HOMES IF WE LEGALIZE IT?
5. SHOULD THERE BE LIMITS PLACED ON THE A MOUNT ONE CAN POSSESS A ND/OR PURCHASE?
6. WHAT WILL BE THE PENALTIES FOR PEOPLE WHO OPERATE OUTSIDE THE LEGAL SYSTEM?
7. HOW WILL WE ENFORCE IMPAIRED DRIVING LAWS? WILL THEY NEED TO CHANGE?
8. WHAT WILL HAPPEN TO CRIMINAL RECORDS OF PEOPLE CHARGED FOR MARIJUANA RELATED
OFFENCES?
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“Across Canada 28,183 people were charged with possession of marijuana last
year, or about 81 charges per 100,000 people. According to a 2011 Health Canada
survey, about 9% of Canadians over 15 used marijuana in the past year. That
suggests one in 90 pot users was criminally charged.” - Vancouver Sun, Zoe McKnight, November 2012
IS THE CURRENT LAW BEING ENFORCED? HOW MANY RESOURCES ARE
ALLOCATED TO MARIJUANA CONTROL AND WOULD THEY BE
ELIMINATED OR REDUCED IF MARIJUANA WAS L EGALIZED?
The current law is not being enforced equally across Canada. In some jurisdictions, possession
is prosecuted vigorously. In others, charges are often not filed. Sentencing provisions are
similarly unequal across Canada.
Regarding the costs of enforcing the current law, these are often buried in operating budgets ofthe border agency, police, correction service and courts – making them difficult to calculate.
However, 2005 federal Treasury Board documents published by the Canadian HIV/AIDS Legal
Network suggest $368 million was spent that year on addressing illicit drugs. Of this, 73% ($271
million) was targeted to enforcement initiatives such as border control ($80 million), RCMP
investigations ($75 million), drug analysis services ($8 million) and federal prosecutions ($90
million).
While a legal framework will not eliminate these costs, we expect they will be reduced
significantly with opportunities to redirect savings to youth programs, border protection,addressing violent crimes, attacking other profits of organized crime and community
partnerships with provincial and municipal governments.
WILL PEOPLE BE ALLOWED TO GROW IT IN THEIR HOMES FOR
PERSONAL CONSUMPTION OR PRIVATE SALE?
Yes. While we expect the interest or need for individuals to grow their own to be greatly
reduced post-prohibition, it should not – and likely could not - be eliminated. At the same time,
sale of marijuana should be limited to businesses and require proper licensing.
The State of Colorado is planning to impose a limit of six plants per person as part of their
legalization plan scheduled to take effect in January 2013. We believe a maximum number of
plants for personal use should be determined following consultation with provinces, local
governments and other stakeholders.
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SHOULD THERE BE LIMITS PLACED ON THE AMOUNT OF MARIJUANA
ONE CAN POSSESS AND/OR PURCHASE?
Yes. While we expect there will be little need for Canadian adults to “stock-up” on product if
quality cannabis is legal and readily available, we are concerned about the potential for
organized crime to easily stockpile legal product for smuggling to other countries.
According to consumption statistics (RAND 2009), monthly marijuana users in Canada consume
an average of 1 gram per day – or one ounce (28 grams) each month. Washington State plans
to allow adults to possess only one ounce of marijuana at a time.
We feel Washington’s one ounce limit may create unnecessary, ongoing enforcement
requirements and restrict people growing their own for personal use - where one plant may
yield more than an ounce of product.
In this light we recommend a four ounce (.10 kg) limitation be considered for the amount a
non-licensed vendor or distributor can purchase or possess without obtaining a special permit,
subject to consultation with consumers, distributors, law enforcement and producers. We feel
this is reasonable and akin to purchasing a 40 or 60 oz. bottle of vodka or whisky a couple times
a year instead of buying a small bottle each month.
Other limits would need to be established for cannabis-infused goods, plants for personal use
and marijuana in liquid form. Washington State has established a 16 ounce (.45kg) possession
limit on cannabis-infused goods or up to 72 ounces (2.4kg) for cannabis in liquid form.
WHAT WILL BE THE PENALTIES FOR PEOPLE WHO OPERATE OUTSIDE
THE LEGAL SYSTEM?
As marijuana will be legal, tougher penalties and sentences are justified for those operating
outside the legal system – particularly those attempting to sell marijuana to minors and/or
smuggle it into other countries for cash, other drugs and weapons. That said, experience with
the end of alcohol prohibition and tobacco regulation suggests few Canadians will be interested
in the black market as long as the product is more accessible, as good and less expensive.
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What is THC?
“THC is Tetrahydrocannabinol - the principal psychoactive constituent of the cannabis plant. The amount
of THC in marijuana ranges from 1% to 20% and depends on how it was grown, the genetic makeup of the
plant and the amount of flower parts, leaves, stems and seeds. In hash THC amounts vary depending on
the source and how it is prepared. Hash oil generally contains 10% to 20% and considered the most
concentrated form of the drug.” – Health Canada | November 2012
HOW WILL WE ENFORCE IMPAIRED DRIVING LAWS? WILL THEY NEED
TO CHANGE?
Driving impaired as a result of marijuana use is already against the law in all jurisdictions in
Canada. Provincial governments are able to introduce new regulations regarding impaired
driving as they choose this should be reaffirmed in a new federal framework.
However, we support increased penalties for all impaired drivers and providing police with
more accurate tools to detect when motorists are under the influence of marijuana. With
legalization, we recommend the federal government invest revenues to improve detection
technology, training support and research regarding effects of cannabis use and intoxication.
We also recommend monitoring the results of Washington State’s proposal to establish
presumptive levels of intoxication for THC concentration when a driver is arrested for suspicion
of being under the influence. These have been set at 0.0 for drivers under the age of 21 and 5
nanograms/milliliter of blood for drivers aver 21. Washington’s Licensing Department will be
able to revoke the driver’s license of a person who tests above the presumptive level of THC.
WHAT WILL HAPPEN TO CRIMINAL RECORDS OF CANADIANS CONVICTED
OF MARIJUANA RELATED OFFENCES?
A survey prepared for this paper invited federal Liberals and British Columbians to answer this
question. Of the 1000 respondents, approximately 80% said Canadians with prior convictions
for marijuana possession should have their records cleared. We agree.
Canadians convicted of trafficking marijuana or those who have been charged outside of
Canada should continue to have access to exiting processes associated with pardons, clemency
and the purging of records where minor infractions are involved.
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“A 2010 Health Canada survey indicates that about 366,000 Br itish Columbians use
marijuana, almost exactly the number as in Washington State. “ - Province Newspaper, November 21, 2012
PUBLIC HEALTH
Common questions about the public health implications of marijuana use and the impact
legalization may or may not have:
1. How many Canadians use it, how much do they use and how many are under 18?
2. What are the health implications of chronic, moderate and occasional consumption?
3. What are the public health impacts of legalizing it – or not?
4.
Would legalization increase the number of consumers?
HOW MANY CANADIANS CONSUME MARIJUANA ON A REGULAR BASIS?
HOW MUCH DO THEY USE AND HOW MANY ARE UNDER THE AGE OF18?
In its 2011 report, the UN Office for Drugs and Crime estimated 5% of the world’s population
(230 million) used illegal drugs at least once in 2010. Cannabis was identified as the mostwidely used illegal drug in the world (estimated at 125 to 200 million people).
A breakdown of 2005 UN figures estimate Canada’s consumption rate to be one of the highest
in the world at 17% of the population aged 15 to 64 – much higher than Asia (2%), Europe (5%)
and the United States (12%). This translates to 3 million Canadians using marijuana each year.
These figures are similar to a 2009 report from the RAND Corporation for the European
Commission that generated country-level consumption and retail expenditure estimates for
cannabis. Among other things, the RAND report concluded:
global retail expenditures on cannabis range from €40-120 billion ($50-150 billion CDN)each year
Canada’s annual retail cannabis market is best estimated at €2.769 billion ($4 – 5 billion
CDN) or .29% of GDP
An estimated 2 million Canadians over 15 consume cannabis at least once a month and
3.4 million once a year
Monthly users consume an average of 2.5 cigarettes – or 1 gram – each day
Annual users in Canada consume an average of 1.25 cigarettes - or .5 grams – each day
Average total of marijuana in each Canadian marijuana cigarette is just under .5 grams
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“Numbers supplied by the Toronto-based Centre for Addiction and Mental Health
study show the percentage of the population 50 and older indulging (in marijuana)
has increased 500% since a 1977 report, with them now making up 14% of dope
smokers. When the study looked at the general population, it found puffing pot
was going up in almost every age group. People who admitted smoking cannabis intheir latest study jumped from just under 9% to more than 13%; 30-49 year olds
had doubled their use.”- Postmedia News, David Sherman, November 24, 2012
HOW MANY CANADIANS CONSUME MARIJUANA HOW MANY ARE
UNDER THE AGE OF18? (CONT.)
Regarding youth consumption, we believe unregulated access to marijuana has contributed
to growing rates of use – as opposed to tobacco where regulatory controls have led to
declining youth smoking rates. Here are some recent reports:
A 2007 Health Canada report concluded 8.2% of young Canadians used cannabis on a
daily basis.
In August 2012, the BC Centre for Excellence in HIV/AIDS reported more than half of
adolescent drug users surveyed said they could access marijuana, heroin, cocaine or
crystal meth within 10 minutes.
We recommend the new framework include significant direct investments on youth
engagement initiatives ranging from prevention, awareness and treatment services to
recreation, employment, community and cultural programs.
We also recommend increasing penalties for those convicted of trafficking to minors.
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WHAT ARE THE HEALTH IMPLICATIONS OF CHRONIC, MODERATE AND
OCCASIONAL MARIJUANA CONSUMPTION?
As marijuana has been legalized for medical use and more accepted in general, an increasing
amount of research is emerging on its effects. Canadian doctors prescribe marijuana to more
than 20,000 people to treat conditions ranging from Alzheimer’s, premenstrual syndrome,
seizures and migraines to glaucoma, MS, OCD, ADD and HIV/AIDS.
As this paper is not presented as a scientific document, we don’t make any conclusions based
on recent research findings on the health impacts of marijuana – or lack of them.
Instead we have conducted a scan of media reports over the past year and explored what a few
doctors have to say. All demonstrate conflicting views and the need for more research in a
regulated legal environment instead of the murky edges of the black market.
Here is a sample of some reports that have appeared in various media over the past couple
years about cancer and cannabis use:
2012 US HMO Study of 61,000 insured patients showed no increased risk of lung,
colorectal, melanoma, or breast cancers in current or former cannabis smokers versus
those who have never smoked or experimenters when controlled for tobacco use,
alcohol intake and socioeconomic status.
2012 report from the British Lung Foundation warned smoking marijuana is hazardous
to the lungs and can also cause tuberculosis and Legionnaires’ disease. The study
showed public awareness of the health consequences was low with almost one-third ofthe British population believing it is not harmful.
2011 University of Colorado Cancer Centre Study concluded that there is little direct
evidence that THC or other cannabinoids are carcinogenic.
A 2007 study by Harvard University researchers found that THC in marijuana cut tumor
growth in half in common lung cancer tumours and significantly reduced the cancer’s
ability to spread.
2005 University of California study concluded that smoking marijuana - even regularlyand heavily - does not lead to lung cancer.
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“The University of Victoria Centre for Addiction found alcohol causes more than
twice as many deaths as all major illicit drugs combined, and tobacco causes on
average five times more deaths than alcohol.” – Globe and Mail, November 4, 2008
WHAT ARE THE HEALTH IMPLICATIONS OF CHRONIC, MODERATE AND
OCCASIONAL MARIJUANA CONSUMPTION? (CONT.)
Addiction Impact
The Lancet has compared the harm of 20 drugs using a 0-3 scale to measure addiction. Theresults:
Heroin – 3.00
Cocaine – 2.37
Tobacco – 2.23
Barbiturates – 2.01
Alcohol - 1.93
Benzodiazepines - 1.83
Amphetamine – 1.67
Cannabis – 1.51
LSD – 1.23
Ecstasy – 1.13
IQ Impact
In August 2012, Reuters reported on one of the world’s largest and longest running
marijuana research studies that concluded people who wait until they are adults to take
up cannabis do not show any significant mental declines in their memory and
intelligence. However, the unprecedented study concluded that teenagers who become
hooked on cannabis before they reach 18 may be causing lasting damage.
“A recent report in the Proceedings of the National Academy of
Sciences about a long-term study of more than 1000 pot-using teens
in New Zealand said that those who continued smoking into their
30s suffered significant cognitive deficits related to memory,
reasoning and ability to process information.”- Globe and Mail, November 23, 2012
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ASK THE DOCTOR
We decided to get a rural doctor’s opinion on the health impacts of marijuana use. Here is what PortAlberni’s Dr. Michael I. McGuire told us:
“ In recent years, pharmaceutical companies have worked to license THC (the active ingredient in cannabis) for
medical purposes, in particular Nabilone (an oral medication used for nausea from cancer chemotherapy and
as an appetite stimulant in the cancer setting) and Sativex (an oral spray licensed for treating neuropathic
pain in multiple sclerosis). In the extensive testing required for licensing by Health Canada, virtually no serious
side effects were encountered.
There is addiction potential with cannabis, in fact some authorities estimate as many as 10% of regular users
will develop an addiction syndrome and suffer personal, social and occupational harm as a consequence. To
keep a proper perspective, the frequency and severity of cannabis addiction is on the low end of the scalecompared to alcohol and tobacco. In addition, the withdrawal syndrome resulting from sudden cessation is
relatively mild, consisting of drug craving and irritability lasting 3-7 days.
There is an observed statistical correlation between cannabis and the onset of schizophrenia with psychotic
symptoms. However, there is no evidence that there is a causal relationship between cannabis and
schizophrenia. Over the past 50 years, cannabis use in North America has increased several-fold, whereas
schizophrenia rates have remained constant.
Studies have not demonstrated a link between lung cancer and cancers of the neck and throat despite
researcher’s expectation to the contrary. Cannabis has not been shown to cause chronic lung disease,
although it does cause worsening of symptoms in those already suffering from cigarette induced chronic
obstructive lung disease.
A Canadian performed study reported in the CMAJ (Dr. Peter Fried 2002) showed that current heavy cannabis
smokers demonstrated a 4% drop in measured IQ compared to pre-adolescent testing. Light smokers showed
no change, and previous heavy smokers similarly showed no change. Conclusion: you are dumber while you
are stoned but there does not seem to be any lasting effects on intelligence. “
DR. MELDON KAHAN, MEDICAL DIRECTOR OF THE SUBSTANCE USE SERVICE AT WOMEN’S
COLLEGE HOSPITAL IN TORONTO SAYS, “(BUT) THERE’S NO ROLE, OR HARDLY ANY ROLE FOR
SMOKED CANNABIS IN THE TREATMENT OF CHRONIC PAIN. THERE ARE SAFER ALTERNATIVESSUCH AS CANNABIS IN PILL FORM OR INHALERS. THERE ARE TOXINS IN CANNABIS SMOKE THAT
ARE CARCINOGEN AND ACCELERATE HEART DISEASE. SMOKED CANNABIS IS ADDICTING, UNSAFE
DURING PREGNANCY AND ESPECIALLY DANGEROUS FOR YOUNG PEOPLE IN TERMS OF
TRIGGERING PSYCHOSIS, DEPRESSION AND MOOD DISORDERS.” - GLOBE AND MAIL, NOVEMBER 2012
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“By moving from a violent, unregulated market whose motive is profit to a strictly
regulated market whose goals are public health
– we can actually reduce rates of use.” – Dr. Evan Wood, Simon Fraser University researcher, Vancouver Sun, November 21, 2013
WHAT ARE THE PUBLIC HEALTH IMPACTS OF LEGALIZING MARIJUANA –
AND/OR NOT DOING IT?
We conclude legalizing marijuana and regulating its sale, distribution, promotion and price
will have a positive impact on public health and safety by:
Making it easier to prohibit youth access – as has been the case for tobacco.
Ensuring marijuana is grown in a controlled and regulated setting with strict labeling
provisions to better protect the health of consumers and producers.
Delivering billions of dollars in new revenue that government can reinvest in public
health care – including mental illness, treatment, education and awareness initiatives.
Encouraging the private sector and academic organizations to expand research into
health impacts.
Reducing profits for organized crime which results in safer communities and less
opportunity for young people to join gangs.
Forcing fewer Canadians to live with stress and stigma associated with having a criminalrecord for doing something 3 million other Canadians do each year.
Increasing availability of marijuana for people who use it for medical reasons or already
have prescriptions for a doctor.
Increasing availability of police resources to control violent crime and other revenue
streams of organized crime.
Reducing disincentives for people to reveal personal use will lead to earlier treatment as
needed.
Creating a responsible and accountable industry that becomes a co-regulator and
complies with improving regulations.
In contrast, maintaining the current prohibition will protect the status quo for organized
crime, guarantee ongoing and uncontrolled access to marijuana for youth and continue to
create more harm than good.
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“But what about the innocent children who will be exposed to these drugs if they
become freely available throughout society? The answer is nothing that d oesn’t
happen to them now. There is no city and few rural areas in the developed world
where you cannot buy any illegal drug known to man within half an hour, for an
amount of money that can be raised by any enterprising 14-year old. Indeed, the
supply of really nasty drugs would probably diminish if prohibition ended because they
are mainly a response to the level of risk the dealers must face.”– Gwynne Dyer, January 14, 2007
WOULD A LEGALIZED SYSTEM OF MARIJUANA REDUCE OR INCREASE
THE NUMBER OF CONSUMERS?
There are already a significant number of
Canadians consuming cannabis. Studies
identified in this paper estimate more than 3
million Canadians use marijuana each year –
and 2 million do it every month. Children and
youth under 18 are accessing marijuana easily
with the current prohibition.
Some countries that have introduced decriminalization policies have seen drug use and petty
crime rates decline. Since Portugal abolished criminal penalties for possession in 2001, teenage
drug use has declined while referrals to addiction treatment have doubled. The rate of cannabis
use in the Netherlands is 5% compared to 12% in the United States.
There is little evidence to suggest that consumption rates will rise dramatically if marijuana is
legalized – particularly since cannabis is not as addictive as most drugs.
In Canada, some doctors and researchers have said a strictly regulated legal marijuana market
has the potential to meaningfully reduce rates of marijuana use, in the same way that
regulatory tools have dramatically cut rates of tobacco use.
We recommend that a new federal framework include particular emphasis on restricting access
for youth, promoting prevention partnerships with local school districts to educate students
and teachers and tough penalties for anyone convicted of selling to minors. This will be
particularly important since we expect the price of legal marijuana to be lower than it is now.
Students who tried cigarettes in 1998: 56%.
Students who tried cigarettes in 2008: 26%.-
McReary Centre Society, April 15, 2009
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LOGISTICS
WILL A LEGAL SYSTEM OF MARIJUANA CULTIVATION, DISTRIBUTION
AND SALES RESEMBLE ALCOHOL, TOBACCO OR NEITHER? ARE THERE
OTHER MODELS TO CONSIDER?
Since marijuana is an intoxicant, we recommend the federal/provincial system of alcoholproduction, distribution and sale provides the best model for Canada’s legal marijuana
framework. This approach would include:
consultation with provincial and municipal governments
elements of tobacco control policy – particularly as it relates to packaging, labeling
youth strategy and restrictions on promotion, point of sale and marketing
consultation with retailers, producers and consumers
elements of other national regulatory regimes such as natural health products, medical
marijuana, fisheries, agriculture and hemp cultivation
COMMON QUESTIONS ABOUT LOGISTICAL CHALLENGES AND OPPORTUNITIES THAT MAY BE
ASSOCIATED WITH THE LEGALIZATION OF MARIJUANA:
1. WILL A LEGAL SYSTEM RESEMBLE THE CURRENT WAY WE BUY AND SELL ALCOHOL AND
TOBACCO?
2. WHICH FEDERAL AND PROVINCIAL AGENCIES WOULD BE INVOLVED?
3. HOW WILL LEGALIZATION IMPACT CURRENT CONSUMERS AND PRODUCERS?
4.
HOW MUCH WILL IT COST? WHERE WILL PEOPLE PURCHASE IT AND HOW WILL IT BE
PACKAGED?
5. HOW WILL IT BE TAXED? HOW WILL THE REVENUE BE REALLOCATED?
6. WHAT TERMS AND CONDITIONS WILL BE APPLICABLE TO THE PRODUCERS AND
DISTRIBUTERS?
7. HOW MUCH WOULD CANADIAN PRODUCERS NEED TO G ROW?
8. WOULD WE LIMIT THE MARKET TO CANADIAN COMPANIES AND DOMESTIC SUPPLIERS?
9. WHO WILL GROW IT?
10.
WILL COMPANIES AND INDIVIDUALS BE ABLE T O PUT COMMERCIAL PRO TECTIONS ON
CERTAIN STRAINS, AND BRANDS? WHAT WILL BE THE POTENCY?
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WHICH FEDERAL AND PROVINCIAL DEPARTMENTS WOULD BE INVOLVED
IN THE REGULATION, INSPECTION AND MONITORING OF PRODUCTION,
DISTRIBUTION AND RETAIL SALES?
We recommend federal Ministers of Justice and Health be responsible for leading a policy
that would be developed with the support of a Special Cabinet Committee on Organized
Crime. The Committee would include Ministers for other federal departments with an
interest in the policy:
Solicitor General/RCMP
Ministry of Agriculture
Department of Finance
Department of Foreign Affairs
Canada Revenue Agency
Industry Canada
Human Resources DevelopmentPrivy Council Office/Intergovernmental Affairs
These federal agencies will be required to work with provincial counterparts and include an
emphasis on municipal affairs. We recommend this work be supported by an interim project
management authority and refer items to relevant House of Commons Committees.
Washington State’s proposal to transition from prohibition to taxation provides a preview of
the some administrative requirements agencies may need to consider in Canada. They
estimate a five-year cost of $65 million to fully implement a licensing, regulatory and taxation
plan for a market of 360,000 consumers. Supported by a Dedicated Marijuana Fund, theseoperating requirements include:
Liquor Control Board (LCB) for rulemaking, licensure and enforcement - $13.6 million
Departments of Social and Health Services for implementation services - $10 million
Washington State Patrol for additional training on marijuana impairment - $2 million
Department of Licensing to revoke licenses for driving under the influence - $425,000
Office of the Attorney General for legal services to LCB - $318,000
Washington State Patrol Toxicology Laboratory for blood testing cases - $125,000
Offices of the Attorney General and Administrative Hearings for appeals - $125,000
Department of Revenue to administer tax collection from license holders - $90,000Washington State Patrol for background checks for LCB license applicants - $28,000
Department of Agriculture to develop testing laboratory accreditation standards -
$26,000
Administrative Office of the Courts for information technology changes to the Judicial
Information System - $3,000
Washington State is proposing a one-year timeline to fully implement their system.
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HOW WILL LEGALIZATION IMPACT CURRENT CONSUMERS?
We believe marijuana legalization will have a positive impact on the 3 million-plus annual
adult consumers in Canada. Among other things they will experience:
no more contact with illegal drug dealers and organized crimeaccess to safer and labeled product
reliable and convenient access
lower prices
increased access to treatment as needed
public benefits associated with reallocation of new government revenues
Non-adult marijuana users will experience significantly reduced access to marijuana and
more exposure to more education, awareness and prevention programs.
HOW MUCH WILL LEGAL MARIJUANA COST, WHERE WILL PEOPLE BE
ABLE TO PURCHASE IT AND HOW WILL IT BE PACKAGED?
COST
To be successful and prevent organized crime from maintaining a black market, the price of
legal marijuana must be lower than it is now. At the same time, the product’s quality must be
at least as good – if not better.
In Canada, pricing legal marijuana should consider:
the black market cost of marijuana differs from one region to another
bulk purchase is encouraged in the black market - the more you buy, the cheaper it is
consumers commonly purchase either one gram, seven grams (1/4 ounce), 14 grams
(1/2 ounce) or 28 grams (one ounce) at a time
very few consumers purchase more than one or two ounces (28-56 grams) at a time
legal growers, distributors and retailers will still need to make a profit in a legal system
The 2009 RAND Corporation Report for the European Commission measured the street price of
cannabis around the world. They concluded the average price in Canada per bulk gram was
$6.50. The federal government initially set their price of medical marijuana in Canada at $5 persingle unit gram but with new rules it is expected to increase to at least $8 per single unit gram.
Meanwhile, Washington State expects their average retail price under their legalized system
will be $12 per gram. They have based this price on medical marijuana dispensaries and do not
assume any increased consumption or competition will reduce prices. Washington’s estimate
assumes a $3 per gram producer price and a $6 per gram processor price.
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HOW MUCH WILL LEGAL MARIJUANA COST, WHERE WILL PEOPLE BE
ABLE TO PURCHASE IT AND HOW WILL IT BE PACKAGED? (CONT.)
COST (CONT.)
Based on these factors, we recommend the price of legal marijuana be lower than whatWashington State is proposing and at least 30-35% lower than the current black market price.
We think this is achievable because marijuana is relatively easy to produce and process. One of
the most significant costs of production now is the risk of being caught by authorities or being
robbed by a violent criminal.
We also recommend a new legal framework allow provinces to adopt pricing variations which
could facilitate the sale and marketing of “premium brands” – as is the case with alcohol today.
Subject to discussions with provincial authorities, consumers, potential producers and
distributors, here is a basic proposed price list for legal marijuana in Canada compared to thecurrent black market rates (all taxes included):
PACKAGING
Product packaging will be determined almost exclusively by market research and demand. The
vast majority of black market marijuana is sold in dried plant form in bag pouches.
Other than established labeling and product safety requirements, we recommend the new
framework allow consumers to have access to a variety of packaging options, which could
include rolled cigarettes, bag pouches, plastic jars/bottles, edible products and teas.
ILLEGALALL PROCEEDS TO ORGANIZED CRIME
1 gram - $10-$15
7 grams (quarter ounce) - $65-$80
14 grams (half ounce) - $120-$150
28 grams (ounce) - $220-$260
LEGALALL PROCEEDS TO TAXPAYERS
1 gram - $6-$10
7 grams (quarter ounce) - $40-$50
14 grams (half ounce) - $90-$100
28 grams (ounce) - $140-$170
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“Liquor store locations are usually discreet and not near schools and don’t have the product in window displays and have age-restriction protocols in place. It would be
the simplest business model that currently exists to use, so I would recommend it and
then gain consumer feedback over three years and see what changes the consumer
would like, balanced with any public safety concerns.”– Marc Emery, Province Newspaper, November 9, 2012
HOW MUCH WILL LEGAL MARIJUANA COST, WHERE WILL PEOPLE BE
ABLE TO PURCHASE IT AND HOW WILL IT BE PACKAGED? (CONT.)
POINT OF PURCHASE
To many Canadians, point of purchase will be the most visible element of a new legal framework.
For those who chose not to grow their own for personal use, we recommend legal marijuana be
sold to the public through specialty private stores and/or anywhere regulated liquor sales take
place. Limiting point of purchase to these locations will help ensure minors cannot come in
contact with the product.
We do not recommend allowing marijuana to be sold at convenience stores and gas stations as
is the case with tobacco, however provincial and municipal governments will have flexibility to
place reasonable restrictions on where people can consume and purchase cannabis – as is
currently done with alcohol and tobacco use. A license to sell would need to be obtained.
This approach reflects Washington’s State’s plan to require purchase through a Liquor Control
Board (LCB) licensee. Their plan makes no assumptions that a portion of users will purchase
from the illegal market or from medical marijuana retailers. They also make no assumptions
about consumer migration from out of state or the consumption of marijuana-infused products.
Washington’s proposal includes a $250 application fee and a $1,000 issuance/renewal fee for
each licensee. All fees will be deposited into the state’s Dedicated Marijuana Fund. Some
recovery fees will also be applied to licensees for activities related to enforcement of quality
control measures such as product sampling, testing, labeling and inspection.
To determine the number of retail outlets/licenses, Washington State plans to allow LCB to
caps retail licenses by county, consider population, security issues and discouraging purchases
from illegal markets. They expect over 320 retail outlets will serve their domestic annual
market of 360,000 consumers – or over 1100 per location.
At the same rate, Canadian businesses and non-profit organizations would need to staff over
2,700 retail locations to serve Canada’s three million annual consumers – creating significant
direct and indirect employment opportunities.
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HOW WILL MARIJUANA BE TAXED, HOW WILL THIS REVENUE BE SHARED
BETWEEN VARIOUS LEVELS OF GOVERNMENT AND HOW WILL IT BE
REALLOCATED?
When considering the taxation rate on legal marijuana, it is worth noting that in some regions
of Canada, as much of 45% of the total cost of a package or carton of cigarettes is tax for the
government.
Washington State is projecting annual revenue of over $565 million by 2015 based on 360,000
annual consumers and excise taxes of 25% on the selling price on each wholesale and retail sale
of marijuana from a licensed producer, processor or retailer. State business and occupation
taxes will also apply to these activities.
Based on Washington State’s projections (363,000 consumers = $565 million annual revenue)
and in light of similar consumption and price trends in Canada, we conclude annual government
revenue in Canada from legalized marijuana based on 3 million annual consumers would likely
exceed $4 billion/year.
We recommend that 30-35% as the preferred tax rate of legalized marijuana in Canada. This
would include HST, GST and PST wherever relevant and some flexibility for provinces to
adjust rates.
In addition to the final tax rate, we also recommend local and provincial governments adopt a
cost recovery approach to the collection of business, licensing, inspection and workplace safety
fees and services.
We recommend the majority of new revenue from legalization be reinvested to strengthen
Canada’s public health care system in partnership with provincial governments. This should
include a special emphasis on mental illness, health promotion, addiction treatment and
community youth partnerships.
As an example, Washington State has identified funding priorities for some of their new
revenue. These include (figures are annual):
Health Care - $135 million
General Revenue - $45.7 millionInitiatives to prevent and reduce substance abuse - $36.6 million
Marijuana education and public health program - $24.4 million
University of Washington and Washington State University for research on effects of
marijuana use and development of web-based public education materials - $2.5 million
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WHAT TERMS AND CONDITIONS WILL BE APPLICABLE TO THE
PRODUCERS AND DISTRIBUTERS?
In cooperation with provincial governments, we recommend the new framework include
comprehensive provisions to ensure quality control based on established standards for tobacco,
alcohol and hemp production – and compliance with municipal by-laws and business licensingrules.
In addition to site safety requirements and inspection powers for relevant federal agencies,
these guidelines should allow for various levels of THC, other cannabinoid content and cannabis
strains.
Washington State’s prohibition transition plan acknowledged a lack of sufficient data to
estimate the number of marijuana producers and marijuana processers they expect to apply for
a license. However, for 363,000 annual consumers they expect 100 marijuana producers and
55 processers. They also assume 50% of marijuana is produced and processed by the sameseller - with the rest produced and sold to a processor.
HOW MUCH MARIJUANA WOULD CANADIAN PRODUCERS NEED TO
GROW?
Producers will grow as much marijuana as needed to meet public demand – recognizing that
cannabis is a storable product that will maintain its quality over extended periods of time.
The 2009 RAND Corporation Report for the European Commission calculated the amount of
marijuana consumed in countries around the world. The report concluded that Canada’s 3
million annual cannabis consumers use 410 metric tonnes of marijuana – or 410 million grams.
Washington State measured frequency of consumption using the pattern contained in the UN
Office on Drug and Crime. The frequency ranged from a low of 18% using once a year to 3%
consuming daily. Applying this pattern and assuming 2 grams of marijuana per use, they
estimate 85 million grams are consumed annually per year to serve 360,000 annual consumers.
The same formula applied to Canada’s domestic market of 3 million annual consumers would
require the production of at least 800 million grams per year – or 800 metric tonnes.
WOULD WE LIMIT THE MARKET TO CANADIAN COMPANIES AND
DOMESTIC SUPPLIERS?
Based on our recommendation to apply a zero-tolerance to import/export of marijuana, we
recommend that the new Canadian legal framework limit market access to domestic suppliers.
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WHO IS GOING TO GROW IT?
In addition to allowing individual Canadians to grow a limited number of marijuana plants for
personal use, we expect Canada’s private sector and local non-profit societies will likely be the
main producers, distributors and retailers of marijuana products.
We recommend that before final decisions are made about the structure of this new industry,
the federal government consult the sector and other interested parties as the new framework
is constructed. These discussions should focus on the roles of each level of government,
identifying consumer demands and the scope of a new regulatory framework. Among other
things, we recommend these discussions include the following policy objectives:
government should regulate but not have any direct ownership in any corporation that
produces marijuana
the market should be open to a large range of Canadian businesses from very small
farms to medium size and large-scale operationsdiscretion regarding the purchasing of marijuana rest primarily with entities that have
been licensed by provinces to sell it
flexibility for packaging options
establishment and enforcement of quality control and product safety standards by
relevant federal health and agriculture agencies
price controls to curtail black market
WILL COMPANIES AND INDIVIDUALS PLACE COMMERCIAL PROTECTIONS
ON STRAINS AND BRANDS? WHAT WILL BE THE POTENCY?
The new framework will respect Canada’s current laws and processes regarding patent and
trademark protection. However, we recommend this issue be explored more thoroughly to
consider which protections currently exist and new discoveries associated with a decade of
legal medical marijuana production. These discussions may also consider current models
applied in the agriculture sector regarding particular strains of products.
With regard to THC levels, as noted earlier in the paper, the new framework must ensure legal
marijuana is at least the same quality as to what is found on the street today – if not better.
According to the RCMP, Health Canada found an average THC level of 4.8% in marijuana sold on
the street in 1988. The average level was 11.1% in 2008.
We recommend the new framework allow for variance in THC rates and be subject to
consultation with various levels of government and potential sector partners. Marketing of
various premium brands should be allowed with the understanding that growing conditions
and THC level must be included on the product label. This can be based on current alcohol
content requirements for beer, wine and spirits.
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SUMMARY OF CONCLUSIONS AND
RECOMMENDATIONS
1.
A growing number of Canadians and community leaders have joined the call to endmarijuana prohibition in Canada. However, there are legitimate questions about how
legalization would work and what the public impact will be.
2. The five best reasons to end the current prohibition are:
Fight organized crime.
Significant new revenue will support important government services.
The current law does more harm than good.
Commitment to evidence-based policy instead of political ideology.
Millions are using cannabis now.
3.
Decriminalization of small amounts of marijuana is a compromise that will please no
one. It would result in a system where it is legal to possess but not to sell or purchase.
Law enforcement agencies would remain in limbo.
4. Changing opinions in the Unites States are weakening a long-standing obstacle to ending
the prohibition of cannabis in Canada.
5.
While ending prohibition will require partnership with provincial and municipal
governments, the federal government must take the first step by introducing
legislation in the House of Commons that would be:
led by federal Ministers of Justice and Health and a special Cabinet Committeeon Organized Crime
responsive to feedback from provinces and provide administrative flexibility
overseen by an interim authority to implement and consult with stakeholders
subject to review by House of Commons Standing Committee
6. Ending prohibition will have a positive impact of the Canadian economy. In addition to
generating an estimated $4 billion each year in new government revenue, there will be
thousands of new direct and indirect employment opportunities.
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SUMMARY OF CONCLUSIONS AND
RECOMMENDATIONS (CONT.)
7. Ending prohibition will have a positive impact on public health and safety in Canada
by:
Regulating the sale, distribution, promotion and price of marijuana, making it
easier for government to prohibit youth access
Ensuring marijuana is grown in controlled and regulated settings with strict
labeling provisions to better protect the health of consumers and producers
Delivering billions in new government revenue which can be reinvested in public
health care – including mental illness, treatment, education and awareness
Expanding private sector and academic research into health impacts
Decreasing profit for organized crime, creating safer streets and communities –
and less opportunity for young people to join gangs
Increasing availability of police resources to fight violent crime and other
revenue streams of organized crime
8.
The new federal legal framework should include the following elements:
The minimum age of consumption should be same as alcohol for each province.
A revenue-sharing template with provinces.
Significant investments for youth health promotion initiatives.
Provisions for provincial and municipal governments to place reasonable
restrictions on where people can consume and purchase cannabis.
Comprehensive packaging, labeling, promotion, point of sale, price, quality andmarketing regulations
Provisions that allow individual Canadians to grow limited number of marijuana
plants for personal use.
Establish zero-tolerance and increase criminal penalties for import/export,
unregulated suppliers and trafficking to minors.
Reallocate police and law enforcement resources.
Tougher penalties for impaired driving
Limitation on the amount of marijuana a non-licensed vendor or distributor can
purchase or possess without obtaining a special permit.
Limit point of purchase to specialty stores and regulated liquor stores.
Enable open marketplace for wide range of Canadian businesses
Flexibility for variety of packaging options.
Process to clear records for Canadians with prior convictions for marijuana
possession.
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NEXT STEPS
LPC-BC and YLC should distribute this policy paper to:
YLC and LPC-BC members and post on-line for public comment.
Liberal Party of Canada provincial associations across the country.
Federal Liberal Caucus members and invite their response.
Candidates seeking the leadership of the Leader of the Liberal Party of Canada with a
recommendation to:
include the policy resolution to legalize marijuana that was approved by close
80% of delegates at the January 2012 Biennial Policy Conference in the next
election platform
consider paper as a foundation for the establishment of new policy framework
to facilitate the end of marijuana prohibition in Canada and proactively respond
to questions Canadians are rightfully asking about the proposal
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DRAFT RESOLUTION #4
THAT the following recommendation be endorsed by Nelson City Council and submittedto the Association of Kootenay & Boundary Local Governments at the Annual GeneralMeeting to be held in Kimberley on April 27 - 29, 2016
Revenue sharing from sale and distribution of legalized marijuana
WHEREAS the Liberal Government of Canada has publicly declared its intention to
legalize, regulate and restrict access to marijuana with creation of a new system of
marijuana sales and distribution with appropriate federal and provincial excise taxes
applied;
AND WHEREAS the new legal framework will not completely eliminate the costs
associated with enforcement initiatives related to drugs in Canada, it is expected they
will be significantly reduced, providing the federal government opportunities to redirect
savings and invest in youth engagement and prevention programs and initiatives that
include community partnerships with provincial and municipal governments;
THEREFORE BE IT RESOLVED THAT:
The Union of BC Municipalities petition the Government of Canada to share a portion of
revenues realized from the legalization and regulation of marijuana together with a
share of savings realized from reduced enforcement costs with provincial and municipal
governments given the marked impact that marijuana sales and distribution will have
upon Canadian communities and the need for direct investments to youth engagement
initiatives not limited to recreation, employment, community and cultural programs.
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“Bearing in mind $1 million/ year buys roughly 12 new cops, 14 teachers or public
health nurses, ask yourself: Couldn’t ($400 million in law enforcement, court and
corrections) be bett er spent? The federal Liberal Party obviously thinks so…” – Ian Mulgrew, Vancouver Sun, January 18, 2012
Table of Contents
Introduction ................................................................................................................................................ 3
Policy Resolution 117: Legalize and Regulate Marijuana ............................................................................ 4
Overview ..................................................................................................................................................... 5Questions .................................................................................................................................................... 8
Policy.........................................................................................................................................................9
International Response ........................................................................................................................ 11
Legal ...................................................................................................................................................... 11
Public Health ....................................................................................................................................... 121
Logistics ................................................................................................................................................ 13
Summary of Conclusions and Recommendations ..................................................................................... 17
Next Steps ................................................................................................................................................. 38
“Legalize weed, yes, but the devil is in the details…Although polls suggest
Canadians support the idea of legalizing marijuana in general, they’ll want to see
a detailed plan before backing the idea unreservedly. That’s where the work
needs to be done now by the drug reform proponents.” – Gary Mason, Globe and Mail, Feb 2012
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INTRODUCTION
In January 2012, close to 80% of delegates attending the Liberal Party of Canada's Biennial
Policy convention in Ottawa voted in favour of a policy resolution co-sponsored by the Liberal
Party of Canada - British Columbia (LPC-BC) and the Young Liberals of Canada (YLC) to:
LEGALIZE marijuana and ensure the regulation and taxation of its production,
distribution, and use, while enacting strict penalties for illegal trafficking, illegal
importation and exportation, and impaired driving
INVEST significant resources in prevention and education programs designed to
promote awareness of the health risks and consequences of marijuana use and
dependency, especially amongst youth
EXTEND amnesty to all Canadians previously convicted of simple and minimal marijuana
possession, and ensure the elimination of all criminal records related thereto
WORK with the provinces and local governments of Canada on a coordinated regulatory
approach to marijuana which maintains significant federal responsibility for marijuana
control while respecting provincial health jurisdiction and particular regional concerns
and practices
Since the resolution was approved a growing number of Canadians and community leaders
have joined the call to end marijuana prohibition in Canada. At the same time, LPC-BC’s
Standing Policy Committee has been working with the YLC to prepare this paper.
In addition to capturing progress over the past year, the goal of this paper is to provide some
answers to legitimate questions Canadians have about the impact of implementing this policy.
Some questions are answered in one sentence. Others are more complex and require ongoingcivil dialogue. In total, close to 40 questions have been identified in five categories:
1.
Policy
2.
International Response
3. Legal
4. Public Health
5.
Logistics
From the answers to these questions, a framework for legalization emerges – which is
summarized at the conclusion of this paper with suggested next steps.
This paper is not an academic research essay. It is intended to be a practical, plain language
and political document that takes the policy resolution approved by Liberals across Canada in
January 2012 to its next logical step.
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POLICY RESOLUTION 117: LEGALIZE AND REGULATE MARIJUANA
Passed January 15 2012 at the Ottawa 2012 Biennial Convention
WHEREAS, despite almost a century of prohibition, millions of Canadians today regularly consume
marijuana and other cannabis products;
WHEREAS the failed prohibition of marijuana has exhausted countless billions of dollars spent onineffective or incomplete enforcement and has resulted in unnecessarily dangerous and expensive
congestion in our judicial system;
WHEREAS various marijuana decriminalization or legalization policy prescriptions have been
recommended by the 1969-72 Commission of Enquiry into the Non-Medical Use of Drugs, the 2002
Canadian Senate Special Committee on Illegal Drugs, and the 2002 House of Commons Special
Committee on the Non-Medical Use of Drugs;
WHEREAS the legal status quo for the criminal regulation of marijuana continues to endanger Canadians
by generating significant resources for gang-related violent criminal activity and weapons smuggling – a
reality which could be very easily confronted by the regulation and legitimization of Canada’s marijuana
industry;
BE IT RESOLVED that a new Liberal government will:
legalize marijuana and ensure the regulation and taxation of its production, distribution, and
use, while enacting strict penalties for illegal trafficking, illegal importation and exportation, and
impaired driving;
invest significant resources in prevention and education programs designed to promote
awareness of the health risks and consequences of marijuana use and dependency, especially
amongst youth;
extend amnesty to all Canadians previously convicted of simple and minimal marijuana
possession, and ensure the elimination of all criminal records related theretowork with governments of Canada on a coordinated regulatory approach to marijuana
which maintains significant federal responsibility for marijuana control while respecting
provincial health jurisdiction and particular regional concerns and practices.
“After the resolution on marijuana today, there is going to be a group of even happier people
in the Liberal Party…If you want to be part of a free-thinking, innovative, thoughtful,
pragmatic, hopeful, positive, happy people, come and join the Liberal Party of Canada.”
- Interim Liberal Party of Canada Leader Bob Rae, January 15, 2012
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OVERVIEW
A growing number of community and opinion leaders agree the current prohibition of cannabis
is only serving to protect the status quo for organized crime of rich profits, stockpiled weapons
and public executions.
Opinion polls reaffirm the Canadian public is ahead of the current federal government on this
issue. A 2012 poll from Toronto’s Forum Research just after the resolution to lega lize marijuana
was approved at the Liberal Party of Canada’s Policy Convention determined:
60% of respondents in every province support reform of marijuana laws - BC is most
supportive (73%)
the largest demographic group that supports reform of current law is 55 to 64
most favour full legalization and taxation over decriminalization of possession (40-26%)
NDP supporters were the most likely to say they were for easing of current laws (71%),
followed by Liberal supporters (64%) and Conservative supporters (59%)
Subsequent polls have suggested support continues to rise for legalization and regulation.
Here is a summary of other reports that have been published since January:
January 16, 2012 - “A new spirit of openness and a policy in favour of legalizing and
regulating pot will help breathe life into the Liberal Party in western Canada, party members
said Sunday...” – Peter O’Neil, Vancouver Sun
January 17, 2012 – “It is an excellent idea, and the resolution ticks all the correct boxes by
way of justifying it: marijuana’s widespread and safe use, revenue savings and generationthrough taxation, and the fact that it would make Canadians safer from criminal violence.” -
Chris Selly, National Post
January 19, 2012 – “The Liberals are right to make it a political issue…One (Liberal) goal must
be to better differentiate the party from the ruling Conservatives, and in that respect, a new
policy on cannabis legalization represents a start.” (Globe and Mail editorial)
February 15, 2012 – Four former BC Attorneys Generals write an open letter saying, “The
case demonstrating the failure and harms of marijuana prohibition is airtight. The evidence?
Massive profits for organized crime, wide-spread gang violence, easy access to illegal cannabis
for our youth, reduced community safety, and significant – and escalating – cost to taxpayers.”
“ Hallelujah! Canadians agree it’s time to legalize marijuana”
- January 18, 2012 , Vancouver Sun Headline
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February 17, 2012 – The Vancouver Sun endorses legalizing marijuana.
March 28, 2012 – BC’s Provincial Health Officer and Nova Scotia’s Chief Public Health Officer
say Canada should consider the model used to control and tax the sale of tobacco and alcohol
with marijuana as a way to crack down on organized crime, control availability and influence
“cultural norms”. (Globe and Mail)
April 27, 2012 – Eight BC Mayors write a letter to provincial political leaders calling for an
end to marijuana prohibition...North Vancouver Mayor Darrell Mussatto says, “We think our
communities will be safer and our children better protected from criminal elements if we
overturn marijuana prohibition.” Burnaby Mayor Derek Corrigan says, “We put our citizens and
communities at risk by not talking action now.” (Province Newspaper)
July 2, 2012 – A nationwide survey concludes 66% of Canadians think the law should be
changed so people caught with small amounts of marijuana no longer face criminal penalties.
Support is strongest in Atlantic Canada (72%) followed by BC, Saskatchewan, Manitoba and
Ontario (69%). Support is lowest in Alberta (42%). (Postmedia, Global TV)
August 24, 2012 – Due to a lack of resources, “Canadian border agents have been told to
stop looking for illegal drugs leaving the country and instead focus on stopping the export of
illicit nuclear material and stolen cars. The directive is unlikely to make US and other countries
very happy.” (Postmedia News)
September 27, 2012 – Hundreds of BC municipal leaders joined a vote for a policy resolution
at their annual conference to encourage the provincial government to research the regulation
and taxation of marijuana.
December 1, 2012 – A shortage of treatment facilities where drug-addicted parents can stay
with their children is having a devastating impact on at-risk youth in BC, advocates say. (Victoria
Times Colonist)
December 5, 2012 – Health Canada is preparing to publish new regulations to its medical
marijuana access program that could make doctors the sole gatekeepers of the drug. The
President of the Canadian Medical Association says the proposed changes could see fewer
doctors willing to prescribe it. (Sharon Kirkey, Postmedia News)
“As Washington State and Colorado voters now have shown, measures for legalizing the recreational use of
pot increasingly appear to make sense. They may even help turn some young people off the drug. How thento proceed? Well, we obviously have to sort out the various federal/provincial jurisdictional niceties. And we
have to find a workable means of licensing, distributing and selling cannabis. Actually, we in BC already have
one – our provincial liquor store system, which for all its faults, appears well-suited to handle
the drug and ensure it isn’t sold over the counter to kids.”
– Jon Ferry, Province Newspaper, November 2012
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December 7, 2012 – Seattle smokes up – legally. First state to allow personal marijuana use
stands to fill coffers. (Vancouver Sun)
“The result (of marijuana prohibition) is that thousands of otherwise respectable
people, including lawyers, professors, bus drivers and yes, even journalists, engage in arecreational habit that risks a criminal record. But it’s not them I’m particularly
concerned with.
Aside from making an ass of the law, the marijuana business – one of the most
lucrative in BC – enriches all the wrong people, and at no benefit to the community.
The scum who kill in cold blood to protect their turf are the beneficiaries of a
gratuitous shower of riches even Croesus would envy.
Would legalization make marijuana more widely available? Rather the opposite if itwere subject to proper retail controls, as is liquor.
Would it be safer for white-collar professionals indulging at weekends? Certainly.
Would we have at our disposal greater resources for research into addictions, both
alcohol and drug related? Of course. Would legal marijuana put us on a slippery stop
to moral decay? I doubt it.
But I do know it would put a crippling dent in the obscene profits of the drug lords and
their trigger-happy assassins for whom the present law is just dandy, thank you.” -
-
Alan Ferguson, Province Newspaper column, June 3, 2008
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“Everyone believes…that the current approach is not working, but it’s not clear
what we should do.”
– Prime Minister Stephen Harper, April 17, 2012
QUESTIONS
As support for the policy to legalize, tax and regulate marijuana has increased over the past
year, Canadians have asked legitimate questions about how this policy can be implemented in a
practical and organized way. This happened at the end of alcohol prohibition too.
The goal of this paper is to answer common questions and gather the answers into a draft
policy framework. The questions are identified in five categories:
1. Policy
2. International Response
3.
Legal
4. Public Health
5. Logistics
The answers are based on survey responses, new laws in Colorado and Washington, existingCanadian laws and policies, literature and publication reviews.
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POLICY
WHY DO WE WANT TO LEGALIZE MARIJUANA?
While there are many, we focus on five reasons Canada should legalize and regulate marijuana.
1. Fight organized crime.
2. Use the new revenue to support important government services.
3. The current law does more harm than good. In addition to filling bank accounts of
criminals, prohibition delivers:
uncontrolled access for youth – and first contact with organized crime
no product safety and labeling standards for millions of consumers
criminal records for thousands of average Canadians
a significant burden on government budgets to enforce and prosecute
4.
Millions already consume marijuana in Canada each year.
5. Promotion of evidence-based policy instead of political ideology. The current law is not
achieving its goal to prevent use – particularly among youth who enjoy uncontrolled
access now. A growing number of community leaders, researchers, opinion leaders andvoters agree it is time to reconsider prohibition.
COMMONLY ASKED POLICY QUESTIONS ABOUT LEGALIZING MARIJUANA:
1.
WHY DO WE WANT TO LEG ALIZE IT?2. WHY NOT DECRIMINALIZATION INSTEAD OF LEGALIZATION?
3. WHO WILL BE RESPONSIBLE FOR THE TAXATION AND REGULATION?
4. SHOULD IT BE PART OF A FEDERAL/PROVINCIAL AGREEMENT?
5. WHAT WOULD BE THE LEGAL AGE TO CONSUME IT?
6. WILL PEOPLE BE ALLOWED TO CONSUME IN PUBLIC OR AROUND CHILDREN?
7. SHOULD LEGALIZATION EXTEND TO OTHER DRUGS?
8.
HOW WOULD THIS IMPACT PEOPLE AUTHORIZED TO USE IT FOR MED ICAL PURPOSES?
9. WHAT WILL BE THE TOTAL ECONOMIC IMPACT?
10 . HOW WILL WE GUARANTEE THAT THERE WILL NOT CONTINUE TO BE A BLACK MARKET?
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WOULD A SYSTEM OF PARTIAL LEGALIZATION LIKE DECRIMINALIZATION
BE OPTIMAL INSTEAD?
No. Decriminalization of small amounts would lead to a system where it is legal to possess but
not supply. Without legalizing production, sale and consumption together, organized crime
will continue to meet the market demand and law enforcement agencies and health care
professionals will remain in limbo.
WHO WILL BE RESPONSIBLE FOR THE TAXATION AND REGULATION OF
MARIJUANA? SHOULD LEGALIZATION BE PART OF A
FEDERAL/PROVINCIAL AGREEMENT?
While the implementation of a regulated system must include collaboration with provincial
and local governments, the Government of Canada must demonstrate leadership and take
the first step. We recommend this first step to be a legal framework which:
Is led by federal Ministers of Justice and Health
Developed by a special Cabinet Committee on Organized Crime
Reflects feedback from provinces and provides administrative flexibility
Includes a federal/provincial regulatory and revenue-sharing agreement based on
models established for the production, distribution and sale of alcohol and tobacco
Establishes an interim authority to oversee implementation
Is subject to review by a House of Commons Standing Committee
Once the law is approved in Parliament, provincial and local governments would be expected to
respect its provisions – as they do now with other controlled substances.
WHAT WOULD BE THE LEGAL AGE FOR CONSUMPTION?
We recommend the legal age for consumption be the same as alcohol for each province.
SHOULD LEGALIZATION EXTEND TO OTHER DRUGS?
No. Police, justice and correction resources should be redirected to support violent crime
investigations and attack other revenue streams of organized crime.
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WILL PEOPLE BE ALLOWED TO CONSUME MARIJUANA IN PUBLIC OR
AROUND CHILDREN?
Provincial and municipal governments should have some flexibility within the federal regulatory
framework to place reasonable restrictions on where people can consume and purchase
cannabis – as is currently done with alcohol and tobacco use. This would include activities to
protect the health and well-being of children and employees.
Washington State is proposing to prohibit the consumption of marijuana in public places where
alcohol is banned and federal facilities (military bases, national parks, etc). Failure to comply in
Washington is subject to a fine of $100 however police officers are not yet issuing tickets.
WHAT WILL BE THE TOTAL ECONOMIC IMPACT OF LEGALIZATION?
The economic impact of legalizing marijuana in Canada would be very positive for the
government and taxpayers. The full scale of this benefit is the only question and it has beenthe subject of increasing study. Here are some recent examples:
Washington State estimates a fully functioning marijuana market will generate over $1.9
billion over five years – based on 360,000 annual consumers.
A November 2012 research paper from Simon Fraser University published in the
International Journal of Drug Policy concluded legalizing marijuana in BC may generate
$2.5 billion in government tax and licensing revenues over five years – based on a
domestic provincial market of over 400,000 annual consumers
A 2009 report from the RAND Corporation for the European Commission concluded
global retail expenditures on cannabis ranged from €40-120 billion ($60-180 billion CDN)
– based on a global market of over 200 million consumers.
RAND’s 2009 report estimates Canada’s annual retail cannabis market at .29% of GDP or
€2.769 billion ($3 – 4 billion CDN) – based on a market of 3 million annual consumers
A 2004 Fraser Institute study estimated BC’s marijuana crop’s value at 2-4% of the
province’s GDP.
New revenues will be complemented by the ability to reallocate law enforcement, correction,
border and justice resources.
Thousands of Canadians will also find direct and indirect employment. Opportunities include:
agriculture, technology and energy supply
specialty retail stores
transportation, distribution, packaging and manufacturing
inspectors, engineers, quality controllers, licensing officers and health researchers
legal, insurance, financial and accounting services
marketing, communication, tourism and public education
alternative products - non-smokable, cosmetic products, building materials, fabrics
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WOULD PEOPLE CONSUMING MARIJUANA FOR MEDICAL PURPOSES
CONTINUE TO BE IN A SPECIAL CATEGORY?
The regulations exempting medical use of marijuana are only necessary because of the current
law. With the end of prohibition, there will be no need for this legal exemption – which has
proven difficult to manage for many patients, doctors, designated growers, municipal
authorities and law enforcement personnel.
In addition to saving tax dollars, replacing the federal medical marijuana program with a new
legal framework may encourage doctors and researchers to more freely explore health impacts,
alternatives to smoking and potential for inclusion of medical use in provincial health insurance
programs.
HOW WILL WE GUARANTEE THAT THERE STILL WON’T BE A BLACK
MARKET FOR MARIJUANA?While ending prohibition will put many criminals out of work, it won’t end organized crime.
That said, black market sales of illegal alcohol and tobacco have not become a problem post-
prohibition.
Ongoing vigilance will be required and the federal government should develop a
comprehensive set of policies to attach organized crime through the Special Cabinet Committee
we have proposed.
However, strategic elements of a legal framework can help prevent a marijuana black market
from re-emerging:
ensure the legal price is lower than the current price and quality is equal – or better
ensure packaging reflects consumer demand and product is accessible for adults
establish zero-tolerance on import/export
increase criminal penalties for export, unregulated suppliers and trafficking to minors
reallocate some police and law enforcement resources to border patrol
allow opportunities for Canadians to continue to grow limited amounts of marijuana
for personal use
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INTERNATIONAL RESPONSE
Background – United Nations
Canada is a party to three international conventions that regulate drug control:
Single Convention on Narcotic Drugs, 1961 (“1961 Convention”)
Convention on Psychotropic Substances, 1971 (“1971 Convention”)
1988 United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic
Substances (“1988 Convention”).
Article 3, paragraph 2 of the 1988 UN Convention requires that:
“Each Party shall adopt such measures as may be necessary under its domestic law, when
committed intentionally, the possession, purchase or cultivation of narcotic drugs or
psychotropic substances for personal consumption contrary to the provisions of the 1961
Convention, the 1961 Convention as amended or the 1971 Convention.” (Marijuana is one
such substance)
COMMONLY ASKED QUESTIONS ABOUT THE POTENTIAL INTERNATIONAL RESPONSE TO
ENDING MARIJUANA PROHIBITION IN CANADA:
1. ARE WE ALLOWED TO LEGALIZE IT UNDER INTERNATIONAL LAW? IS IT AGAINST
CANADA’S TREATY?
2.
HOW CAN WE DO THIS W ITH THE UNITED STATES SO OPPOSED?
3. HOW WILL WE CONTROL CROSS-BORDER TRAFFICKING?
4. IS THE ILLICIT MARIJUANA TRADE IN C ANADA CONNECTED TO VIOLENT CARTELS IN
MEXICO, CENTRAL AND SOUTH AMERICA?
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ARE WE ALLOWED TO LEGALIZE IT UNDER INTERNATIONAL LAW?
IS IT AGAINST CANADA’S TREATY OBLIGATIONS?
This question is more common with government than the general public. Here are four answers:
1.
Canada is a sovereign country - free to make our own laws through a democraticallyelected government in the House of Commons.
2.
Other UN member countries have already improved their marijuana laws without
sanction.
3. Canada should lead a movement to amend out-of-date international conventions to
reflect changes in medical evidence and international consumption rates. They have
been used as an excuse for inaction and regressive thinking for too long.
4.
Canada has rights to withdraw from these UN conventions, as granted in the articles ofeach convention - exercisable by written notification to the UN Secretary-General.
Withdrawal would take effect one year after the date notification was received.
While some may still make the case that legalization is prima facie inconsistent with Canada’s
international legal obligations, Canada’s Special Senate Committee on Illegal Drugs identified
a number of factors in 2002 that provide state parties to these conventions with leeway
around strict application. For example:
Review, amendment and withdrawal mechanisms exist in the Conventions. (see answer
four above)
The conventions impose moral obligations on states, not legal ones. There are nopenalties or sanctions for violating the conventions other than a public rebuke by some
of the signatories.
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HOW CAN WE LEGALIZE MARIJUANA IF THE UNITED STATES IS SO
OPPOSED TO IT?
This is an important question because the US is Canada’s most important international ally and
trading partner. The issue will continue to evolve against prohibition in the US with successful
November 2012 state referendums to legalize, tax and regulate marijuana in Colorado and
Washington state. This is reinforced by the subsequent reluctance of the US President to
enforce federal laws in these states.
In this light of these recent developments and estimates more than 25 million Americans
consume marijuana each year (RAND 2009), here are two answers to this question:
1.
Public opinion is changing in the United States which does not appear to be as opposed
to the idea of legalization as they may have been in the past.
2. Canada is a sovereign country and our domestic policies regarding crime prevention and
public health should not be dictated from Washington DC. While, federal Liberal
governments have a long history of co-operation with the US on a wide range of social,
economic and global issues, we also are not afraid of respectful disagreement. Recent
examples include made in Canada decisions to:
stay out of the Iraq war
recognize gay marriage
aggressively label tobacco products with health warnings
legalize marijuana for compassionate medical purposes
HOW WILL WE CONTROL INTERNATIONAL TRADE OF CANNABIS? WILL
CANADIANS BE ABLE TO TRAVEL WITH IT?
Out of respect to other countries that may not share Canada’s progressive views, we
recommend the government maintain a zero-tolerance of any import or export of marijuana –
including countries and states that have decriminalized or ended prohibition.
To enforce this zero-tolerance policy, we recommend dramatically increasing criminal penalties
for the export of marijuana and reallocation of some domestic marijuana enforcement
resources to border patrol and intelligence. The vast majority of these resources would be
allocated at US border crossings.
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“It is time to stop being dumb witnesses to a global deceit.” - Guatemala President Otto Perez, April 13, 2012
IS CANADA’S MARIJUANA TRADE CONNECTED TO VIOLENT CARTELS IN
MEXICO, CENTRAL AND SOUTH AMERICA?
Numerous public and public police reports connect Canada’s marijuana industry to
international drug and weapons smuggling – including violent cartels operating in Mexico,
Central and South America. Here are some recent examples:
April 18, 2012 - Linking the trade in B.C.-grown marijuana to drug violence in Mexico
and the United States, a former U.S. federal prosecutor has added his voice to a growing
chorus in favour of legalizing pot. “Gangs affiliated with dangerous drug cartels are
distributing marijuana grown in British Columbia – it’s being exchanged for guns and
cocaine that come up here [to BC]” John McKay, a former U.S. federal prosecutor, said
at a press conference in a downtown Vancouver hotel on Wednesday. “So the negative
impact of that is more than just proceeds going to Mexican drug cartels, but also what’s
coming back to Canada because of this production.” (Globe and Mail)
August 29, 2012 – “A fugitive Hells Angel wanted in connection with an alleged drug-
trafficking operation turned himself in at the Burnaby RCMP detachment Tuesday…The
charges follow a 21-month investigation into allegations that marijuana grown in BC’s
southeast was being sold in BC and elsewhere to fund the import of cocaine to
Canada…Mounties seized $4 million in the weekend ra id, including a plastic bag of $100
bills that was spotted with mould.” (Vancouver Sun)
September 13, 2012 – “The number of gang-affiliate federal prisoners has increased
32% to more than 2300 in the past five years…Considering what smart people around
the globe have said for half a century, I say legalize pot. We have created a massive
underground global economy that generates billions for organized crime – drug profits
are the vital lifeblood of gangs, the primary source of disposable income supporting
their lifestyle and conspicuous consumption…The recent spate of killings should trigger
a realistic public discussion, one that considers radical solutions and broadens our
approach to dealing with gangs.” – Ian Mulgrew, Vancouver Sun
November 21, 2012 – Police allege marijuana grow-ops in the BC Okanagan area
were used to fund the importation of cocaine into Canada. They say they seized more
than $4 million in drug money during the 20 month operation. (Province Newspaper)
Over the past year, leaders of Mexico, Central and South America have called on the United
States to reconsider the war on drugs and join a growing discussion about a new approach
that attacks the profit and business model of organized crime.
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LEGAL
WHAT CANADIAN LAWS NEED TO BE CHANGED?
A new legal framework must repeal Schedule II of the Controlled Drugs and Substances Act ,
establish new penalties for operating outside of the legal system, create a new taxation and
regulatory structure that reflects discussions with provinces and other stakeholders.
WHAT HAVE THE COURTS SAID ABOUT THE CURRENT LAW?
We feel legalization of marijuana should be achieved through the political process – not
imposed by courts. It is important for the Liberal Party of Canada to include ending prohibition
in its next platform as a strategy to combat organized crime. This will ensure a mandate for
change is offered to the majority of Canadians who want cannabis regulated and taxed.
Most recent court rulings on the legalization of marijuana have been focused on medical use.
Judgments have regularly favoured more access over less. Conclusions from these decisions
should be considered as a legal framework is developed. These may include:
It is likely possession can’t be legalized without provisions for purchase and supply -
an argument against a half-measure of decriminalizing possession of small amounts
any new policy framework would likely need to allow for alternative uses and
derivatives - including non-smokable and food products
people would likely be free to grow their own for personal use under a legalized
system – just as some make their own beer or wine today
the government should not overly limit supply options for consumers
In the absence of a progressive federal government, proponents may continue to initiate
expensive court challenges against prohibition in the future.
COMMONLY ASKED QUESTIONS ABOUT LEGAL ISSUES ASSOCIATED WITH THE LEGALIZATION OF
MARIJUANA:
1.
WHAT LAW(S) NEED TO BE CHANGED?2. WHAT HAVE THE COURTS SAID ABOUT THE CURRENT LAW?
3. IS THE CURRENT LAW BEING ENFORCED? HOW MANY RESOURCES ARE ALLOCATED TO
MARIJUANA CONTROL NOW AND WOULD THOSE COSTS BE ELIMINATED IF IT WAS LEGALIZED?
4. WILL PEOPLE BE ALLOWED TO GROW IT IN THEIR HOMES IF WE LEGALIZE IT?
5. SHOULD THERE BE LIMITS PLACED ON THE A MOUNT ONE CAN POSSESS A ND/OR PURCHASE?
6. WHAT WILL BE THE PENALTIES FOR PEOPLE WHO OPERATE OUTSIDE THE LEGAL SYSTEM?
7. HOW WILL WE ENFORCE IMPAIRED DRIVING LAWS? WILL THEY NEED TO CHANGE?
8. WHAT WILL HAPPEN TO CRIMINAL RECORDS OF PEOPLE CHARGED FOR MARIJUANA RELATED
OFFENCES?
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“Across Canada 28,183 people were charged with possession of marijuana last
year, or about 81 charges per 100,000 people. According to a 2011 Health Canada
survey, about 9% of Canadians over 15 used marijuana in the past year. That
suggests one in 90 pot users was criminally charged.” - Vancouver Sun, Zoe McKnight, November 2012
IS THE CURRENT LAW BEING ENFORCED? HOW MANY RESOURCES ARE
ALLOCATED TO MARIJUANA CONTROL AND WOULD THEY BE
ELIMINATED OR REDUCED IF MARIJUANA WAS L EGALIZED?
The current law is not being enforced equally across Canada. In some jurisdictions, possession
is prosecuted vigorously. In others, charges are often not filed. Sentencing provisions are
similarly unequal across Canada.
Regarding the costs of enforcing the current law, these are often buried in operating budgets ofthe border agency, police, correction service and courts – making them difficult to calculate.
However, 2005 federal Treasury Board documents published by the Canadian HIV/AIDS Legal
Network suggest $368 million was spent that year on addressing illicit drugs. Of this, 73% ($271
million) was targeted to enforcement initiatives such as border control ($80 million), RCMP
investigations ($75 million), drug analysis services ($8 million) and federal prosecutions ($90
million).
While a legal framework will not eliminate these costs, we expect they will be reduced
significantly with opportunities to redirect savings to youth programs, border protection,addressing violent crimes, attacking other profits of organized crime and community
partnerships with provincial and municipal governments.
WILL PEOPLE BE ALLOWED TO GROW IT IN THEIR HOMES FOR
PERSONAL CONSUMPTION OR PRIVATE SALE?
Yes. While we expect the interest or need for individuals to grow their own to be greatly
reduced post-prohibition, it should not – and likely could not - be eliminated. At the same time,
sale of marijuana should be limited to businesses and require proper licensing.
The State of Colorado is planning to impose a limit of six plants per person as part of their
legalization plan scheduled to take effect in January 2013. We believe a maximum number of
plants for personal use should be determined following consultation with provinces, local
governments and other stakeholders.
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SHOULD THERE BE LIMITS PLACED ON THE AMOUNT OF MARIJUANA
ONE CAN POSSESS AND/OR PURCHASE?
Yes. While we expect there will be little need for Canadian adults to “stock-up” on product if
quality cannabis is legal and readily available, we are concerned about the potential for
organized crime to easily stockpile legal product for smuggling to other countries.
According to consumption statistics (RAND 2009), monthly marijuana users in Canada consume
an average of 1 gram per day – or one ounce (28 grams) each month. Washington State plans
to allow adults to possess only one ounce of marijuana at a time.
We feel Washington’s one ounce limit may create unnecessary, ongoing enforcement
requirements and restrict people growing their own for personal use - where one plant may
yield more than an ounce of product.
In this light we recommend a four ounce (.10 kg) limitation be considered for the amount a
non-licensed vendor or distributor can purchase or possess without obtaining a special permit,
subject to consultation with consumers, distributors, law enforcement and producers. We feel
this is reasonable and akin to purchasing a 40 or 60 oz. bottle of vodka or whisky a couple times
a year instead of buying a small bottle each month.
Other limits would need to be established for cannabis-infused goods, plants for personal use
and marijuana in liquid form. Washington State has established a 16 ounce (.45kg) possession
limit on cannabis-infused goods or up to 72 ounces (2.4kg) for cannabis in liquid form.
WHAT WILL BE THE PENALTIES FOR PEOPLE WHO OPERATE OUTSIDE
THE LEGAL SYSTEM?
As marijuana will be legal, tougher penalties and sentences are justified for those operating
outside the legal system – particularly those attempting to sell marijuana to minors and/or
smuggle it into other countries for cash, other drugs and weapons. That said, experience with
the end of alcohol prohibition and tobacco regulation suggests few Canadians will be interested
in the black market as long as the product is more accessible, as good and less expensive.
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What is THC?
“THC is Tetrahydrocannabinol - the principal psychoactive constituent of the cannabis plant. The amount
of THC in marijuana ranges from 1% to 20% and depends on how it was grown, the genetic makeup of the
plant and the amount of flower parts, leaves, stems and seeds. In hash THC amounts vary depending on
the source and how it is prepared. Hash oil generally contains 10% to 20% and considered the most
concentrated form of the drug.” – Health Canada | November 2012
HOW WILL WE ENFORCE IMPAIRED DRIVING LAWS? WILL THEY NEED
TO CHANGE?
Driving impaired as a result of marijuana use is already against the law in all jurisdictions in
Canada. Provincial governments are able to introduce new regulations regarding impaired
driving as they choose this should be reaffirmed in a new federal framework.
However, we support increased penalties for all impaired drivers and providing police with
more accurate tools to detect when motorists are under the influence of marijuana. With
legalization, we recommend the federal government invest revenues to improve detection
technology, training support and research regarding effects of cannabis use and intoxication.
We also recommend monitoring the results of Washington State’s proposal to establish
presumptive levels of intoxication for THC concentration when a driver is arrested for suspicion
of being under the influence. These have been set at 0.0 for drivers under the age of 21 and 5
nanograms/milliliter of blood for drivers aver 21. Washington’s Licensing Department will be
able to revoke the driver’s license of a person who tests above the presumptive level of THC.
WHAT WILL HAPPEN TO CRIMINAL RECORDS OF CANADIANS CONVICTED
OF MARIJUANA RELATED OFFENCES?
A survey prepared for this paper invited federal Liberals and British Columbians to answer this
question. Of the 1000 respondents, approximately 80% said Canadians with prior convictions
for marijuana possession should have their records cleared. We agree.
Canadians convicted of trafficking marijuana or those who have been charged outside of
Canada should continue to have access to exiting processes associated with pardons, clemency
and the purging of records where minor infractions are involved.
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“A 2010 Health Canada survey indicates that about 366,000 Br itish Columbians use
marijuana, almost exactly the number as in Washington State. “ - Province Newspaper, November 21, 2012
PUBLIC HEALTH
Common questions about the public health implications of marijuana use and the impact
legalization may or may not have:
1. How many Canadians use it, how much do they use and how many are under 18?
2. What are the health implications of chronic, moderate and occasional consumption?
3. What are the public health impacts of legalizing it – or not?
4.
Would legalization increase the number of consumers?
HOW MANY CANADIANS CONSUME MARIJUANA ON A REGULAR BASIS?
HOW MUCH DO THEY USE AND HOW MANY ARE UNDER THE AGE OF18?
In its 2011 report, the UN Office for Drugs and Crime estimated 5% of the world’s population
(230 million) used illegal drugs at least once in 2010. Cannabis was identified as the mostwidely used illegal drug in the world (estimated at 125 to 200 million people).
A breakdown of 2005 UN figures estimate Canada’s consumption rate to be one of the highest
in the world at 17% of the population aged 15 to 64 – much higher than Asia (2%), Europe (5%)
and the United States (12%). This translates to 3 million Canadians using marijuana each year.
These figures are similar to a 2009 report from the RAND Corporation for the European
Commission that generated country-level consumption and retail expenditure estimates for
cannabis. Among other things, the RAND report concluded:
global retail expenditures on cannabis range from €40-120 billion ($50-150 billion CDN)each year
Canada’s annual retail cannabis market is best estimated at €2.769 billion ($4 – 5 billion
CDN) or .29% of GDP
An estimated 2 million Canadians over 15 consume cannabis at least once a month and
3.4 million once a year
Monthly users consume an average of 2.5 cigarettes – or 1 gram – each day
Annual users in Canada consume an average of 1.25 cigarettes - or .5 grams – each day
Average total of marijuana in each Canadian marijuana cigarette is just under .5 grams
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“Numbers supplied by the Toronto-based Centre for Addiction and Mental Health
study show the percentage of the population 50 and older indulging (in marijuana)
has increased 500% since a 1977 report, with them now making up 14% of dope
smokers. When the study looked at the general population, it found puffing pot
was going up in almost every age group. People who admitted smoking cannabis intheir latest study jumped from just under 9% to more than 13%; 30-49 year olds
had doubled their use.”- Postmedia News, David Sherman, November 24, 2012
HOW MANY CANADIANS CONSUME MARIJUANA HOW MANY ARE
UNDER THE AGE OF18? (CONT.)
Regarding youth consumption, we believe unregulated access to marijuana has contributed
to growing rates of use – as opposed to tobacco where regulatory controls have led to
declining youth smoking rates. Here are some recent reports:
A 2007 Health Canada report concluded 8.2% of young Canadians used cannabis on a
daily basis.
In August 2012, the BC Centre for Excellence in HIV/AIDS reported more than half of
adolescent drug users surveyed said they could access marijuana, heroin, cocaine or
crystal meth within 10 minutes.
We recommend the new framework include significant direct investments on youth
engagement initiatives ranging from prevention, awareness and treatment services to
recreation, employment, community and cultural programs.
We also recommend increasing penalties for those convicted of trafficking to minors.
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WHAT ARE THE HEALTH IMPLICATIONS OF CHRONIC, MODERATE AND
OCCASIONAL MARIJUANA CONSUMPTION?
As marijuana has been legalized for medical use and more accepted in general, an increasing
amount of research is emerging on its effects. Canadian doctors prescribe marijuana to more
than 20,000 people to treat conditions ranging from Alzheimer’s, premenstrual syndrome,
seizures and migraines to glaucoma, MS, OCD, ADD and HIV/AIDS.
As this paper is not presented as a scientific document, we don’t make any conclusions based
on recent research findings on the health impacts of marijuana – or lack of them.
Instead we have conducted a scan of media reports over the past year and explored what a few
doctors have to say. All demonstrate conflicting views and the need for more research in a
regulated legal environment instead of the murky edges of the black market.
Here is a sample of some reports that have appeared in various media over the past couple
years about cancer and cannabis use:
2012 US HMO Study of 61,000 insured patients showed no increased risk of lung,
colorectal, melanoma, or breast cancers in current or former cannabis smokers versus
those who have never smoked or experimenters when controlled for tobacco use,
alcohol intake and socioeconomic status.
2012 report from the British Lung Foundation warned smoking marijuana is hazardous
to the lungs and can also cause tuberculosis and Legionnaires’ disease. The study
showed public awareness of the health consequences was low with almost one-third ofthe British population believing it is not harmful.
2011 University of Colorado Cancer Centre Study concluded that there is little direct
evidence that THC or other cannabinoids are carcinogenic.
A 2007 study by Harvard University researchers found that THC in marijuana cut tumor
growth in half in common lung cancer tumours and significantly reduced the cancer’s
ability to spread.
2005 University of California study concluded that smoking marijuana - even regularlyand heavily - does not lead to lung cancer.
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“The University of Victoria Centre for Addiction found alcohol causes more than
twice as many deaths as all major illicit drugs combined, and tobacco causes on
average five times more deaths than alcohol.” – Globe and Mail, November 4, 2008
WHAT ARE THE HEALTH IMPLICATIONS OF CHRONIC, MODERATE AND
OCCASIONAL MARIJUANA CONSUMPTION? (CONT.)
Addiction Impact
The Lancet has compared the harm of 20 drugs using a 0-3 scale to measure addiction. Theresults:
Heroin – 3.00
Cocaine – 2.37
Tobacco – 2.23
Barbiturates – 2.01
Alcohol - 1.93
Benzodiazepines - 1.83
Amphetamine – 1.67
Cannabis – 1.51
LSD – 1.23
Ecstasy – 1.13
IQ Impact
In August 2012, Reuters reported on one of the world’s largest and longest running
marijuana research studies that concluded people who wait until they are adults to take
up cannabis do not show any significant mental declines in their memory and
intelligence. However, the unprecedented study concluded that teenagers who become
hooked on cannabis before they reach 18 may be causing lasting damage.
“A recent report in the Proceedings of the National Academy of
Sciences about a long-term study of more than 1000 pot-using teens
in New Zealand said that those who continued smoking into their
30s suffered significant cognitive deficits related to memory,
reasoning and ability to process information.”- Globe and Mail, November 23, 2012
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ASK THE DOCTOR
We decided to get a rural doctor’s opinion on the health impacts of marijuana use. Here is what PortAlberni’s Dr. Michael I. McGuire told us:
“ In recent years, pharmaceutical companies have worked to license THC (the active ingredient in cannabis) for
medical purposes, in particular Nabilone (an oral medication used for nausea from cancer chemotherapy and
as an appetite stimulant in the cancer setting) and Sativex (an oral spray licensed for treating neuropathic
pain in multiple sclerosis). In the extensive testing required for licensing by Health Canada, virtually no serious
side effects were encountered.
There is addiction potential with cannabis, in fact some authorities estimate as many as 10% of regular users
will develop an addiction syndrome and suffer personal, social and occupational harm as a consequence. To
keep a proper perspective, the frequency and severity of cannabis addiction is on the low end of the scalecompared to alcohol and tobacco. In addition, the withdrawal syndrome resulting from sudden cessation is
relatively mild, consisting of drug craving and irritability lasting 3-7 days.
There is an observed statistical correlation between cannabis and the onset of schizophrenia with psychotic
symptoms. However, there is no evidence that there is a causal relationship between cannabis and
schizophrenia. Over the past 50 years, cannabis use in North America has increased several-fold, whereas
schizophrenia rates have remained constant.
Studies have not demonstrated a link between lung cancer and cancers of the neck and throat despite
researcher’s expectation to the contrary. Cannabis has not been shown to cause chronic lung disease,
although it does cause worsening of symptoms in those already suffering from cigarette induced chronic
obstructive lung disease.
A Canadian performed study reported in the CMAJ (Dr. Peter Fried 2002) showed that current heavy cannabis
smokers demonstrated a 4% drop in measured IQ compared to pre-adolescent testing. Light smokers showed
no change, and previous heavy smokers similarly showed no change. Conclusion: you are dumber while you
are stoned but there does not seem to be any lasting effects on intelligence. “
DR. MELDON KAHAN, MEDICAL DIRECTOR OF THE SUBSTANCE USE SERVICE AT WOMEN’S
COLLEGE HOSPITAL IN TORONTO SAYS, “(BUT) THERE’S NO ROLE, OR HARDLY ANY ROLE FOR
SMOKED CANNABIS IN THE TREATMENT OF CHRONIC PAIN. THERE ARE SAFER ALTERNATIVESSUCH AS CANNABIS IN PILL FORM OR INHALERS. THERE ARE TOXINS IN CANNABIS SMOKE THAT
ARE CARCINOGEN AND ACCELERATE HEART DISEASE. SMOKED CANNABIS IS ADDICTING, UNSAFE
DURING PREGNANCY AND ESPECIALLY DANGEROUS FOR YOUNG PEOPLE IN TERMS OF
TRIGGERING PSYCHOSIS, DEPRESSION AND MOOD DISORDERS.” - GLOBE AND MAIL, NOVEMBER 2012
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“By moving from a violent, unregulated market whose motive is profit to a strictly
regulated market whose goals are public health
– we can actually reduce rates of use.” – Dr. Evan Wood, Simon Fraser University researcher, Vancouver Sun, November 21, 2013
WHAT ARE THE PUBLIC HEALTH IMPACTS OF LEGALIZING MARIJUANA –
AND/OR NOT DOING IT?
We conclude legalizing marijuana and regulating its sale, distribution, promotion and price
will have a positive impact on public health and safety by:
Making it easier to prohibit youth access – as has been the case for tobacco.
Ensuring marijuana is grown in a controlled and regulated setting with strict labeling
provisions to better protect the health of consumers and producers.
Delivering billions of dollars in new revenue that government can reinvest in public
health care – including mental illness, treatment, education and awareness initiatives.
Encouraging the private sector and academic organizations to expand research into
health impacts.
Reducing profits for organized crime which results in safer communities and less
opportunity for young people to join gangs.
Forcing fewer Canadians to live with stress and stigma associated with having a criminalrecord for doing something 3 million other Canadians do each year.
Increasing availability of marijuana for people who use it for medical reasons or already
have prescriptions for a doctor.
Increasing availability of police resources to control violent crime and other revenue
streams of organized crime.
Reducing disincentives for people to reveal personal use will lead to earlier treatment as
needed.
Creating a responsible and accountable industry that becomes a co-regulator and
complies with improving regulations.
In contrast, maintaining the current prohibition will protect the status quo for organized
crime, guarantee ongoing and uncontrolled access to marijuana for youth and continue to
create more harm than good.
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“But what about the innocent children who will be exposed to these drugs if they
become freely available throughout society? The answer is nothing that d oesn’t
happen to them now. There is no city and few rural areas in the developed world
where you cannot buy any illegal drug known to man within half an hour, for an
amount of money that can be raised by any enterprising 14-year old. Indeed, the
supply of really nasty drugs would probably diminish if prohibition ended because they
are mainly a response to the level of risk the dealers must face.”– Gwynne Dyer, January 14, 2007
WOULD A LEGALIZED SYSTEM OF MARIJUANA REDUCE OR INCREASE
THE NUMBER OF CONSUMERS?
There are already a significant number of
Canadians consuming cannabis. Studies
identified in this paper estimate more than 3
million Canadians use marijuana each year –
and 2 million do it every month. Children and
youth under 18 are accessing marijuana easily
with the current prohibition.
Some countries that have introduced decriminalization policies have seen drug use and petty
crime rates decline. Since Portugal abolished criminal penalties for possession in 2001, teenage
drug use has declined while referrals to addiction treatment have doubled. The rate of cannabis
use in the Netherlands is 5% compared to 12% in the United States.
There is little evidence to suggest that consumption rates will rise dramatically if marijuana is
legalized – particularly since cannabis is not as addictive as most drugs.
In Canada, some doctors and researchers have said a strictly regulated legal marijuana market
has the potential to meaningfully reduce rates of marijuana use, in the same way that
regulatory tools have dramatically cut rates of tobacco use.
We recommend that a new federal framework include particular emphasis on restricting access
for youth, promoting prevention partnerships with local school districts to educate students
and teachers and tough penalties for anyone convicted of selling to minors. This will be
particularly important since we expect the price of legal marijuana to be lower than it is now.
Students who tried cigarettes in 1998: 56%.
Students who tried cigarettes in 2008: 26%.-
McReary Centre Society, April 15, 2009
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LOGISTICS
WILL A LEGAL SYSTEM OF MARIJUANA CULTIVATION, DISTRIBUTION
AND SALES RESEMBLE ALCOHOL, TOBACCO OR NEITHER? ARE THERE
OTHER MODELS TO CONSIDER?
Since marijuana is an intoxicant, we recommend the federal/provincial system of alcoholproduction, distribution and sale provides the best model for Canada’s legal marijuana
framework. This approach would include:
consultation with provincial and municipal governments
elements of tobacco control policy – particularly as it relates to packaging, labeling
youth strategy and restrictions on promotion, point of sale and marketing
consultation with retailers, producers and consumers
elements of other national regulatory regimes such as natural health products, medical
marijuana, fisheries, agriculture and hemp cultivation
COMMON QUESTIONS ABOUT LOGISTICAL CHALLENGES AND OPPORTUNITIES THAT MAY BE
ASSOCIATED WITH THE LEGALIZATION OF MARIJUANA:
1. WILL A LEGAL SYSTEM RESEMBLE THE CURRENT WAY WE BUY AND SELL ALCOHOL AND
TOBACCO?
2. WHICH FEDERAL AND PROVINCIAL AGENCIES WOULD BE INVOLVED?
3. HOW WILL LEGALIZATION IMPACT CURRENT CONSUMERS AND PRODUCERS?
4.
HOW MUCH WILL IT COST? WHERE WILL PEOPLE PURCHASE IT AND HOW WILL IT BE
PACKAGED?
5. HOW WILL IT BE TAXED? HOW WILL THE REVENUE BE REALLOCATED?
6. WHAT TERMS AND CONDITIONS WILL BE APPLICABLE TO THE PRODUCERS AND
DISTRIBUTERS?
7. HOW MUCH WOULD CANADIAN PRODUCERS NEED TO G ROW?
8. WOULD WE LIMIT THE MARKET TO CANADIAN COMPANIES AND DOMESTIC SUPPLIERS?
9. WHO WILL GROW IT?
10.
WILL COMPANIES AND INDIVIDUALS BE ABLE T O PUT COMMERCIAL PRO TECTIONS ON
CERTAIN STRAINS, AND BRANDS? WHAT WILL BE THE POTENCY?
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WHICH FEDERAL AND PROVINCIAL DEPARTMENTS WOULD BE INVOLVED
IN THE REGULATION, INSPECTION AND MONITORING OF PRODUCTION,
DISTRIBUTION AND RETAIL SALES?
We recommend federal Ministers of Justice and Health be responsible for leading a policy
that would be developed with the support of a Special Cabinet Committee on Organized
Crime. The Committee would include Ministers for other federal departments with an
interest in the policy:
Solicitor General/RCMP
Ministry of Agriculture
Department of Finance
Department of Foreign Affairs
Canada Revenue Agency
Industry Canada
Human Resources DevelopmentPrivy Council Office/Intergovernmental Affairs
These federal agencies will be required to work with provincial counterparts and include an
emphasis on municipal affairs. We recommend this work be supported by an interim project
management authority and refer items to relevant House of Commons Committees.
Washington State’s proposal to transition from prohibition to taxation provides a preview of
the some administrative requirements agencies may need to consider in Canada. They
estimate a five-year cost of $65 million to fully implement a licensing, regulatory and taxation
plan for a market of 360,000 consumers. Supported by a Dedicated Marijuana Fund, theseoperating requirements include:
Liquor Control Board (LCB) for rulemaking, licensure and enforcement - $13.6 million
Departments of Social and Health Services for implementation services - $10 million
Washington State Patrol for additional training on marijuana impairment - $2 million
Department of Licensing to revoke licenses for driving under the influence - $425,000
Office of the Attorney General for legal services to LCB - $318,000
Washington State Patrol Toxicology Laboratory for blood testing cases - $125,000
Offices of the Attorney General and Administrative Hearings for appeals - $125,000
Department of Revenue to administer tax collection from license holders - $90,000Washington State Patrol for background checks for LCB license applicants - $28,000
Department of Agriculture to develop testing laboratory accreditation standards -
$26,000
Administrative Office of the Courts for information technology changes to the Judicial
Information System - $3,000
Washington State is proposing a one-year timeline to fully implement their system.
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HOW WILL LEGALIZATION IMPACT CURRENT CONSUMERS?
We believe marijuana legalization will have a positive impact on the 3 million-plus annual
adult consumers in Canada. Among other things they will experience:
no more contact with illegal drug dealers and organized crimeaccess to safer and labeled product
reliable and convenient access
lower prices
increased access to treatment as needed
public benefits associated with reallocation of new government revenues
Non-adult marijuana users will experience significantly reduced access to marijuana and
more exposure to more education, awareness and prevention programs.
HOW MUCH WILL LEGAL MARIJUANA COST, WHERE WILL PEOPLE BE
ABLE TO PURCHASE IT AND HOW WILL IT BE PACKAGED?
COST
To be successful and prevent organized crime from maintaining a black market, the price of
legal marijuana must be lower than it is now. At the same time, the product’s quality must be
at least as good – if not better.
In Canada, pricing legal marijuana should consider:
the black market cost of marijuana differs from one region to another
bulk purchase is encouraged in the black market - the more you buy, the cheaper it is
consumers commonly purchase either one gram, seven grams (1/4 ounce), 14 grams
(1/2 ounce) or 28 grams (one ounce) at a time
very few consumers purchase more than one or two ounces (28-56 grams) at a time
legal growers, distributors and retailers will still need to make a profit in a legal system
The 2009 RAND Corporation Report for the European Commission measured the street price of
cannabis around the world. They concluded the average price in Canada per bulk gram was
$6.50. The federal government initially set their price of medical marijuana in Canada at $5 persingle unit gram but with new rules it is expected to increase to at least $8 per single unit gram.
Meanwhile, Washington State expects their average retail price under their legalized system
will be $12 per gram. They have based this price on medical marijuana dispensaries and do not
assume any increased consumption or competition will reduce prices. Washington’s estimate
assumes a $3 per gram producer price and a $6 per gram processor price.
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HOW MUCH WILL LEGAL MARIJUANA COST, WHERE WILL PEOPLE BE
ABLE TO PURCHASE IT AND HOW WILL IT BE PACKAGED? (CONT.)
COST (CONT.)
Based on these factors, we recommend the price of legal marijuana be lower than whatWashington State is proposing and at least 30-35% lower than the current black market price.
We think this is achievable because marijuana is relatively easy to produce and process. One of
the most significant costs of production now is the risk of being caught by authorities or being
robbed by a violent criminal.
We also recommend a new legal framework allow provinces to adopt pricing variations which
could facilitate the sale and marketing of “premium brands” – as is the case with alcohol today.
Subject to discussions with provincial authorities, consumers, potential producers and
distributors, here is a basic proposed price list for legal marijuana in Canada compared to thecurrent black market rates (all taxes included):
PACKAGING
Product packaging will be determined almost exclusively by market research and demand. The
vast majority of black market marijuana is sold in dried plant form in bag pouches.
Other than established labeling and product safety requirements, we recommend the new
framework allow consumers to have access to a variety of packaging options, which could
include rolled cigarettes, bag pouches, plastic jars/bottles, edible products and teas.
ILLEGALALL PROCEEDS TO ORGANIZED CRIME
1 gram - $10-$15
7 grams (quarter ounce) - $65-$80
14 grams (half ounce) - $120-$150
28 grams (ounce) - $220-$260
LEGALALL PROCEEDS TO TAXPAYERS
1 gram - $6-$10
7 grams (quarter ounce) - $40-$50
14 grams (half ounce) - $90-$100
28 grams (ounce) - $140-$170
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“Liquor store locations are usually discreet and not near schools and don’t have the product in window displays and have age-restriction protocols in place. It would be
the simplest business model that currently exists to use, so I would recommend it and
then gain consumer feedback over three years and see what changes the consumer
would like, balanced with any public safety concerns.”– Marc Emery, Province Newspaper, November 9, 2012
HOW MUCH WILL LEGAL MARIJUANA COST, WHERE WILL PEOPLE BE
ABLE TO PURCHASE IT AND HOW WILL IT BE PACKAGED? (CONT.)
POINT OF PURCHASE
To many Canadians, point of purchase will be the most visible element of a new legal framework.
For those who chose not to grow their own for personal use, we recommend legal marijuana be
sold to the public through specialty private stores and/or anywhere regulated liquor sales take
place. Limiting point of purchase to these locations will help ensure minors cannot come in
contact with the product.
We do not recommend allowing marijuana to be sold at convenience stores and gas stations as
is the case with tobacco, however provincial and municipal governments will have flexibility to
place reasonable restrictions on where people can consume and purchase cannabis – as is
currently done with alcohol and tobacco use. A license to sell would need to be obtained.
This approach reflects Washington’s State’s plan to require purchase through a Liquor Control
Board (LCB) licensee. Their plan makes no assumptions that a portion of users will purchase
from the illegal market or from medical marijuana retailers. They also make no assumptions
about consumer migration from out of state or the consumption of marijuana-infused products.
Washington’s proposal includes a $250 application fee and a $1,000 issuance/renewal fee for
each licensee. All fees will be deposited into the state’s Dedicated Marijuana Fund. Some
recovery fees will also be applied to licensees for activities related to enforcement of quality
control measures such as product sampling, testing, labeling and inspection.
To determine the number of retail outlets/licenses, Washington State plans to allow LCB to
caps retail licenses by county, consider population, security issues and discouraging purchases
from illegal markets. They expect over 320 retail outlets will serve their domestic annual
market of 360,000 consumers – or over 1100 per location.
At the same rate, Canadian businesses and non-profit organizations would need to staff over
2,700 retail locations to serve Canada’s three million annual consumers – creating significant
direct and indirect employment opportunities.
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HOW WILL MARIJUANA BE TAXED, HOW WILL THIS REVENUE BE SHARED
BETWEEN VARIOUS LEVELS OF GOVERNMENT AND HOW WILL IT BE
REALLOCATED?
When considering the taxation rate on legal marijuana, it is worth noting that in some regions
of Canada, as much of 45% of the total cost of a package or carton of cigarettes is tax for the
government.
Washington State is projecting annual revenue of over $565 million by 2015 based on 360,000
annual consumers and excise taxes of 25% on the selling price on each wholesale and retail sale
of marijuana from a licensed producer, processor or retailer. State business and occupation
taxes will also apply to these activities.
Based on Washington State’s projections (363,000 consumers = $565 million annual revenue)
and in light of similar consumption and price trends in Canada, we conclude annual government
revenue in Canada from legalized marijuana based on 3 million annual consumers would likely
exceed $4 billion/year.
We recommend that 30-35% as the preferred tax rate of legalized marijuana in Canada. This
would include HST, GST and PST wherever relevant and some flexibility for provinces to
adjust rates.
In addition to the final tax rate, we also recommend local and provincial governments adopt a
cost recovery approach to the collection of business, licensing, inspection and workplace safety
fees and services.
We recommend the majority of new revenue from legalization be reinvested to strengthen
Canada’s public health care system in partnership with provincial governments. This should
include a special emphasis on mental illness, health promotion, addiction treatment and
community youth partnerships.
As an example, Washington State has identified funding priorities for some of their new
revenue. These include (figures are annual):
Health Care - $135 million
General Revenue - $45.7 millionInitiatives to prevent and reduce substance abuse - $36.6 million
Marijuana education and public health program - $24.4 million
University of Washington and Washington State University for research on effects of
marijuana use and development of web-based public education materials - $2.5 million
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WHAT TERMS AND CONDITIONS WILL BE APPLICABLE TO THE
PRODUCERS AND DISTRIBUTERS?
In cooperation with provincial governments, we recommend the new framework include
comprehensive provisions to ensure quality control based on established standards for tobacco,
alcohol and hemp production – and compliance with municipal by-laws and business licensingrules.
In addition to site safety requirements and inspection powers for relevant federal agencies,
these guidelines should allow for various levels of THC, other cannabinoid content and cannabis
strains.
Washington State’s prohibition transition plan acknowledged a lack of sufficient data to
estimate the number of marijuana producers and marijuana processers they expect to apply for
a license. However, for 363,000 annual consumers they expect 100 marijuana producers and
55 processers. They also assume 50% of marijuana is produced and processed by the sameseller - with the rest produced and sold to a processor.
HOW MUCH MARIJUANA WOULD CANADIAN PRODUCERS NEED TO
GROW?
Producers will grow as much marijuana as needed to meet public demand – recognizing that
cannabis is a storable product that will maintain its quality over extended periods of time.
The 2009 RAND Corporation Report for the European Commission calculated the amount of
marijuana consumed in countries around the world. The report concluded that Canada’s 3
million annual cannabis consumers use 410 metric tonnes of marijuana – or 410 million grams.
Washington State measured frequency of consumption using the pattern contained in the UN
Office on Drug and Crime. The frequency ranged from a low of 18% using once a year to 3%
consuming daily. Applying this pattern and assuming 2 grams of marijuana per use, they
estimate 85 million grams are consumed annually per year to serve 360,000 annual consumers.
The same formula applied to Canada’s domestic market of 3 million annual consumers would
require the production of at least 800 million grams per year – or 800 metric tonnes.
WOULD WE LIMIT THE MARKET TO CANADIAN COMPANIES AND
DOMESTIC SUPPLIERS?
Based on our recommendation to apply a zero-tolerance to import/export of marijuana, we
recommend that the new Canadian legal framework limit market access to domestic suppliers.
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WHO IS GOING TO GROW IT?
In addition to allowing individual Canadians to grow a limited number of marijuana plants for
personal use, we expect Canada’s private sector and local non-profit societies will likely be the
main producers, distributors and retailers of marijuana products.
We recommend that before final decisions are made about the structure of this new industry,
the federal government consult the sector and other interested parties as the new framework
is constructed. These discussions should focus on the roles of each level of government,
identifying consumer demands and the scope of a new regulatory framework. Among other
things, we recommend these discussions include the following policy objectives:
government should regulate but not have any direct ownership in any corporation that
produces marijuana
the market should be open to a large range of Canadian businesses from very small
farms to medium size and large-scale operationsdiscretion regarding the purchasing of marijuana rest primarily with entities that have
been licensed by provinces to sell it
flexibility for packaging options
establishment and enforcement of quality control and product safety standards by
relevant federal health and agriculture agencies
price controls to curtail black market
WILL COMPANIES AND INDIVIDUALS PLACE COMMERCIAL PROTECTIONS
ON STRAINS AND BRANDS? WHAT WILL BE THE POTENCY?
The new framework will respect Canada’s current laws and processes regarding patent and
trademark protection. However, we recommend this issue be explored more thoroughly to
consider which protections currently exist and new discoveries associated with a decade of
legal medical marijuana production. These discussions may also consider current models
applied in the agriculture sector regarding particular strains of products.
With regard to THC levels, as noted earlier in the paper, the new framework must ensure legal
marijuana is at least the same quality as to what is found on the street today – if not better.
According to the RCMP, Health Canada found an average THC level of 4.8% in marijuana sold on
the street in 1988. The average level was 11.1% in 2008.
We recommend the new framework allow for variance in THC rates and be subject to
consultation with various levels of government and potential sector partners. Marketing of
various premium brands should be allowed with the understanding that growing conditions
and THC level must be included on the product label. This can be based on current alcohol
content requirements for beer, wine and spirits.
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SUMMARY OF CONCLUSIONS AND
RECOMMENDATIONS
1.
A growing number of Canadians and community leaders have joined the call to endmarijuana prohibition in Canada. However, there are legitimate questions about how
legalization would work and what the public impact will be.
2. The five best reasons to end the current prohibition are:
Fight organized crime.
Significant new revenue will support important government services.
The current law does more harm than good.
Commitment to evidence-based policy instead of political ideology.
Millions are using cannabis now.
3.
Decriminalization of small amounts of marijuana is a compromise that will please no
one. It would result in a system where it is legal to possess but not to sell or purchase.
Law enforcement agencies would remain in limbo.
4. Changing opinions in the Unites States are weakening a long-standing obstacle to ending
the prohibition of cannabis in Canada.
5.
While ending prohibition will require partnership with provincial and municipal
governments, the federal government must take the first step by introducing
legislation in the House of Commons that would be:
led by federal Ministers of Justice and Health and a special Cabinet Committeeon Organized Crime
responsive to feedback from provinces and provide administrative flexibility
overseen by an interim authority to implement and consult with stakeholders
subject to review by House of Commons Standing Committee
6. Ending prohibition will have a positive impact of the Canadian economy. In addition to
generating an estimated $4 billion each year in new government revenue, there will be
thousands of new direct and indirect employment opportunities.
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SUMMARY OF CONCLUSIONS AND
RECOMMENDATIONS (CONT.)
7. Ending prohibition will have a positive impact on public health and safety in Canada
by:
Regulating the sale, distribution, promotion and price of marijuana, making it
easier for government to prohibit youth access
Ensuring marijuana is grown in controlled and regulated settings with strict
labeling provisions to better protect the health of consumers and producers
Delivering billions in new government revenue which can be reinvested in public
health care – including mental illness, treatment, education and awareness
Expanding private sector and academic research into health impacts
Decreasing profit for organized crime, creating safer streets and communities –
and less opportunity for young people to join gangs
Increasing availability of police resources to fight violent crime and other
revenue streams of organized crime
8.
The new federal legal framework should include the following elements:
The minimum age of consumption should be same as alcohol for each province.
A revenue-sharing template with provinces.
Significant investments for youth health promotion initiatives.
Provisions for provincial and municipal governments to place reasonable
restrictions on where people can consume and purchase cannabis.
Comprehensive packaging, labeling, promotion, point of sale, price, quality andmarketing regulations
Provisions that allow individual Canadians to grow limited number of marijuana
plants for personal use.
Establish zero-tolerance and increase criminal penalties for import/export,
unregulated suppliers and trafficking to minors.
Reallocate police and law enforcement resources.
Tougher penalties for impaired driving
Limitation on the amount of marijuana a non-licensed vendor or distributor can
purchase or possess without obtaining a special permit.
Limit point of purchase to specialty stores and regulated liquor stores.
Enable open marketplace for wide range of Canadian businesses
Flexibility for variety of packaging options.
Process to clear records for Canadians with prior convictions for marijuana
possession.
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NEXT STEPS
LPC-BC and YLC should distribute this policy paper to:
YLC and LPC-BC members and post on-line for public comment.
Liberal Party of Canada provincial associations across the country.
Federal Liberal Caucus members and invite their response.
Candidates seeking the leadership of the Leader of the Liberal Party of Canada with a
recommendation to:
include the policy resolution to legalize marijuana that was approved by close
80% of delegates at the January 2012 Biennial Policy Conference in the next
election platform
consider paper as a foundation for the establishment of new policy framework
to facilitate the end of marijuana prohibition in Canada and proactively respond
to questions Canadians are rightfully asking about the proposal