Pubdate: Thu, 22 Oct 2015
Source: Winnipeg Free Press (CN MB)
Copyright: 2015 Winnipeg Free Press
Contact: http://www.winnipegfreepress.com/opinion/send_a_letter
Website: http://www.winnipegfreepress.com/
Details: http://www.mapinc.org/media/502
Author: Kristin Annable
Page: A4

POT FOR THE PEOPLE

Tax Windfall Among Potential Benefits of Legalized Marijuana

MEDICINAL marijuana stocks and the spirits of those in the industry 
in Winnipeg are flying high with the news a pot-friendly prime 
minister will soon be in office.

In the aftermath of Justin Trudeau's election, stock prices for 
medical marijuana producers have jumped as companies across the 
nation anticipate what could be a huge boon for the industry.

Private companies such as Delta 9 Bio-Tech, Winnipeg's first 
medical-marijuana production facility, are waiting with bated breath 
to see how expected changes to the law take shape and what role they 
can take in this new frontier.

"It's an exciting decision for our industry, and I guess there is lot 
of factors in play and a lot of questions that have not been answered 
at this point," said one of Delta 9's owners, John Arbuthnot.

Arbuthnot said the tightly regulated supply chain they have in place 
to ship medical marijuana can transition to the recreation side. He 
believes is there will be federally regulated production of 
marijuana, coupled with provincially regulated distribution through 
either privately or publicly owned stores.

Joining in the celebration is Manitoba's justice minister, who says 
"it's time to get with the program" on the issue, adding it is 
important legislators get in step with the expected changes.

"North Americans are getting ahead of their legislators on this, and 
it is time to get to the table to make it work safely," Gord Mackintosh said.

Prime minister-designate Justin Trudeau famously announced in 2013 
the Liberal party would legalizemarijuana - selling it and taxing 
like alcohol or cigarettes. He also made headlines when he admitted 
to taking a few tokes while serving as an MP that same year.

On the campaign trail in September, he told reporters in Surrey, 
B.C., the party would begin work on legalization "right away" if 
elected. Trudeau said legalization could take anywhere from a month 
to two years, but said it would be an early priority.

The plan from the party is to remove marijuana consumption and 
incidental possession from the Criminal Code.

This is predicted to result in a boon to government coffers once 
taxes begin to flow from the sale of marijuana. In Colorado, revenue 
from the taxation of marijuana, along with licensing fees, have 
created more than US$70 million in revenue for the state government this year.

Trudeau didn't factor the revenue from marijuana tax into his 
campaign platform budget, but said he will be looking to Colorado as a model.

The promise to legalize marijuana is raising concerns among Quebec's 
political class.

Some cabinet ministers didn't hide their discomfort when asked 
Wednesday about the prospect of legalized pot in the near future.

Quebec Public Security Minister Lise Theriault said questions of 
public safety are paramount and must prevail, adding many people 
share that concern.

"We should be worried, definitely. It's something that can really 
upset a lot of people, including me," Theriault said.

While it hasn't rejected the idea outright, the Quebec government 
wants to see detailed plans from Ottawa.

While Ottawa will be behind the legislation, the provincial 
government will likely shoulder the enforcement. Mackintosh said 
there are questions that will need to be addressed, including what 
will happen to those who have faced marijuana-related charges, age 
restrictions and what amounts will be legalized.

"It has to be done right, and we are prepared to fully co-operate," 
said Mackintosh. "There will be some shifts in how this is overseen 
and enforcement, and I think it'll be important to learn from 
experiences in Colorado, organized crime and impaired driving have to 
continually be fought against."

A 2012 policy resolution by the Liberal party called to extend 
amnesty to all Canadians previously convicted of simple and minimal 
marijuana possession, and ensure the elimination of all related 
criminal records. That would be music to Glenn Price's ears.

The Winnipeg medical-pot shop owner had his Main Street store shut 
down in July because he wasn't licensed by Health Canada to sell 
medical cannabis. He was subsequently charged with drug trafficking 
and possession offences in August after cops raided his reopened 
shop. During a stop in Winnipeg in July, Trudeau said marijuana 
storefronts such as Price's Your Medical Cannabis Headquarters should 
be allowed to operate.

"Now Winnipeg is not a Conservative city, it is a Liberal city," said 
Price, whose next court date is Nov. 2. "My legal case is still in 
front of the courts, hopefully now that Liberals got in... I am 
hoping the (charges) will go away. It is a big hope but hopefully now 
the Crown is going to see where the government is going with this and 
they aren't going to waste any more of taxpayer's money."

- - with files from The Canadian Press

*

[sidebar]

Where and what you can hold

Case studies in recreational marijuana legalization:

Colorado: Voters said yes to recreational marijuana legalization in 
2012, and since opening its first dispensary 2014, the state has made 
more than US$110 million in revenue through a 10 per cent state tax, 
a 2.9 per cent sales tax, a 15 per cent excise tax, and licence and 
application fees; $40 million of the revenue is supposed to be 
earmarked annually to go toward the construction of new schools in the state.

Washington state: In a similar vein to Colorado, voters chose to 
legalize marijuana in 2012, and within a year of opening its first 
dispensary in 2014, the state has made US$70 million. The retail 
consumer pays a 37 per cent tax. Similar to Colorado, The law allows 
for the creation of a licenced and regulated system of marijuana 
production and distribution, similar to the state's liquor controls.

Alaska: Marijuana was made legal earlier this year, allowing adults 
to possess up to one ounce of marijuana and/or to grow up to six 
marijuana plants for recreational use. The retail sale component is 
still in the process of being regulated.

Oregon: Beginning this month, limited amounts of recreational 
marijuana (flower and dry leaf products, plants and seeds) will be 
available for purchase through medical marijuana dispensaries to 
adults 21 and older. State legalization of marijuana does not preempt 
federal law, and marijuana is still considered illegal in the United 
States, meaning residents involved in marijuana production/retailing 
could still be subject to prosecution if the federal government 
chooses to step in.
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MAP posted-by: Jay Bergstrom