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No consensus on how to approach marijuana dispensary regulation in Nanaimo

Aug 25, 2016 | 5:40 PM

NANAIMO — Nanaimo Councillors will get their hands on some information about regulating marijuana dispensaries, but that will only be dipping a toe into what is an ocean of an issue.

Councillor Diane Brennan brought forward a motion on Monday night, which passed, calling for staff to review Victoria’s draft medical marijuana-related business bylaw and their proposed amendments to Victoria’s zoning bylaw.

The motion calls for an interim report to be in the hands of council in time for them to review it before heading off the UBCM conference in Victoria on September 26.

The call for that report comes as another, more in-depth report remains in the hands of staff at city hall, yet to be brought forward to council.

After several Nanaimo dispensaries were raided last December by RCMP, council decided it was time to tackle the growing issue and asked staff to prepare a report on regulating the quasi-illegal operations.

According to Nelda Richardson, the city’s manager of development support services and business licencing, that full document could land on the council table between mid-October and mid-November.

She says to the best of her knowledge there are about 10 to 14 of these dispensaries in Nanaimo. Richardson says it seemed to start with two, Trees and Phoenix Pain Management, which were the first to operate in the city.

At that point in time, she says, neither the city nor the RCMP seemed too concerned with them. But within the last 15 months, and certainly since the federal Liberals included legalization in their platform, the number has grown steadily in the harbour city.

While there are a myriad of issues when it comes to regulating these dispensaries, Richardson says a big one they found when they first began researching the issue in December was that 90 percent of them were registered not-for-profits.

She says there is an exemption in the city’s current business licensing bylaw that allows not-for-profits to operate without a business license.

Richardson says at this point, in her view, there are some key issues that must be considered.

The fact that marijuana is currently federally illegal and Nanaimo has a federal police force and the fact the city must abide by the Community Charter.

Richardson wonders what would happen if the city went through all of the work to create a framework and then the federal model, to be unveiled in 2017, is completely different.

While there seems to be some merit to the ‘wait-and-see’ approach, Nanaimo Councillors, as well as some expert opinions, would seem to suggest a more proactive approach.

On Monday night, several Nanaimo Councillors voiced a sense of urgency in getting out in front of the issue so they aren’t “caught with their pants down” when the Liberals make their move next year.

That view is echoed by Councillor Brennan, who says she wants the city to be ready to go when the feds set the rules. She feels the city would be behind the eight ball if they wait.

Appearing before council as a delegation, Dieter MacPherson, a member on the board of directors for the Canadian Association of Medical Cannabis Dispensaries, told council waiting would not be in their best interest, noting the federal process starting next April will take a long time to wind through the legislative process.

“The criminal code is not up to dealing with this issue, we’ve seen this here, which is why we’re dealing with the reality on the ground. This is an issue that isn’t going away, but you do have clear authority over issues of land use.”

References to the dispensaries in the harbour city being nuisances were also made, but the numbers don’t seem to back up that angle.

Richardson reports very few complaints to her department, noting only a few from other businesses complaining it’s unfair the dispensaries don’t have to pay licensing fees.

There was one issue where a dispensary was actively recruiting clients on their way in and out of a nearby acupuncture clinic, but Richardson says that was dealt with quickly and hasn’t come back up.

Nanaimo RCMP did not provide any information on frequency of call-outs to issues related to dispensaries, stating via email there are other drugs, like fentanyl, that are a higher policing priority and they will continue to monitor and respond to complaints as they receive them.

Richardson seemed to back-up a statement from Councillor Jerry Hong on Monday night, who said he wasn’t expecting much from the interim-report.

She says all of the information surrounding Victoria’s draft bylaws and regulations are already on their website for anyone to review.

It’s not likely Nanaimo staff will be offering any opinions or recommendations, after CAO Tracy Samra told the meeting it would be “inappropriate” for her staff to offer a comment on what legal counsel and staff did in Victoria.

The main report, which Richardson says has featured extensive consultations with stakeholders, Island Health, RCMP and the city’s solicitor, will offer much more detail and possible options for council to consider.

There appears to be a need for Nanaimo to focus on what they can control in the equation.

Councillor Ian Thorpe says his primary focus is about public safety, regulating the quality of product and regulating who are the deserving users who need marijuana for a legitimate medical concern.

However, Brennan says that is far outside the scope of Nanaimo’s jurisdiction, noting they can only control and regulate land use, or the location of the dispensaries, and things like nuisance, signage, adhering to bylaws.

MacPherson’s opinion also backs up that claim.

“As soon as you start to regulate an illegal product, not so much the business that’s selling it, you’ll run afoul of the CBSA and federal regulations, so you have to be very careful.”

He says cities can regulate the conduct of the business, set hours of operation, regulate how old people must be to enter the business, but when it comes to the content or access to products, no.

Brennan says she’s a fan of zoning similar to liquor stores. There is currently no zoning that allows for a liquor store, so every application requires rezoning, which allows council to scrutinize each application.

For now, Councillors will head to the UBCM armed with Victoria’s draft proposals. This issue is expected to be a hot topic in the capital city at the end of September.

There’s no doubt the issue isn’t going away, says Richardson, but there’s also no doubt it’s much bigger than the municipal level.