Pubdate: Tue, 28 Mar 2017
Source: Toronto Star (CN ON)
Copyright: 2017 The Toronto Star
Contact:  http://www.thestar.com/
Details: http://www.mapinc.org/media/456
Authors: Robert Benzie, Tonda MacCharles, Bruce Campion-Smith, and Rob 
Ferguson

MARIJUANA SALES COULD BE MIXED BAG

Awaiting federal legislation, Ontario distribution system might
involve private sector

Ottawa's plan to roll out legalized marijuana on July 1, 2018, will
make it Cannabis Day as well as Canada Day.

But next month's federal legislation amending the Criminal Code also
means provincial laws need to be changed and a distribution system
developed to ensure cannabis sales are restricted to adults.

It is an industry that a Deloitte report last fall estimates could be
worth $22.6 billion annually, eclipsing the combined sales of beer,
wine and spirits.

The Ontario government has bureaucrats from a dozen departments
developing the province's marijuana strategy, examining health, road
safety, youth and justice issues as well as the fiscal
implications.

Premier Kathleen Wynne has said regulating cannabis and limiting
access for children and teenagers will be critical as Queen's Park
develops its own legislative framework.

Attorney General Yasir Naqvi said Monday the province is "looking at
all policy options that will ensure that we have regulated use of
cannabis in the province of Ontario."

But Naqvi emphasized that the provincial government is awaiting the
federal legislation - expected the week of April 10 - before
determining how recreational weed will be sold in Ontario.

"That is going to give us the parameters under which we will be
working. We haven't made any decisions about what kind of distribution
and retail model we will have," Naqvi said.

The federal task force that studied legalization outlined its vision
for distributing marijuana, noting that a well-functioning system
"where the chain of custody is well-controlled" would be critical.

It recommended the wholesale distribution of cannabis be regulated by
provinces and territories, noting that they already had
"well-established and sophisticated" government-controlled sales
networks that sold alcohol.

Free for all? Not likely A free-for-all system in which anyone could
sell marijuana is a nonstarter with federal, provincial and municipal
officials.

Even a system modelled on the U.S. state of Colorado, where regulated,
privately owned recreational marijuana shops have been up and running
since 2014, may be a tough sell in Ontario, which still has strict
prohibitions on the sale of alcohol.

Although the federal task force heard support for storefront sales of
marijuana, concerns were voiced about the "unchecked proliferation" of
unregulated dispensaries.

Some provinces and territories and public health experts cited
concerns that the private model could oversupply the market if outlets
were allowed to open unchecked, according to the blue-ribbon panel led
by former deputy prime minister Anne McLellan.

"This could lead to overconsumption and overuse by at-risk
populations," her task force found. Wynne and Toronto Mayor John Tory
have railed against the scores of illegal marijuana"dispensaries" that
have opened in the city, exploiting what is still seen as a legal grey
area.

Many have been raided by police with owners and staff charged and, in
some cases, operators have not even reported armed robberies of their
shops.

Ontario Finance Minister Charles Sousa signalled Tuesday that many of
the pot shops will not be in business once the new regime takes shape
after marijuana is legalized.

"They shouldn't be there in the first place because they're illegal,"
Sousa said.

Liberal MP Bill Blair (Scarborough Southwest), the former Toronto
police chief and Prime Minister Justin Trudeau's point man on
marijuana strategy, said cannabis regulation is analogous to tobacco
control.

"Much of that evolved from great work that was done in cities and in
towns bringing forward their own bylaws and regulations that
controlled where tobacco could be consumed, and in many jurisdictions
much of that has been incorporated into provincial regulation," Blair
said.

"I think municipalities have a role to play in this thing and, most
certainly, the provinces under the constitution have a significant say
in what that retail environment can and should look like."

A little government, a little private sector Wynne has always said
there should be some provincial involvement in marijuana
distribution.

"It may not even be sold out of the LCBO. Because I've had people say
to me we don't want to have marijuana and alcohol sold out of the same
places," the premier told the Star last July, but the government
agency could instead be involved in "regulation and distribution and
monitoring it in some way."

There was broad support for some form of retail store where marijuana
users can engage with knowledgeable staff and the products before
making their purchases, according to the federal task force.

This model was cited as a way to ensure access and encourage
competitive pricing which might help to limit the illegal market.

But there would have to be measures to control the density and
location of retail stores to keep them away from schools, community
centres and other public institutions.

Queen's Park could mandate that the LCBO control distribution, with
government-regulated marijuana - probably supplied by existing
federally licensed medical cannabis producers - being sold through
pharmacies such as Shoppers Drug Mart or Rexall.

This could dovetail with a mail-order business. Medical marijuana is
currently available from licensed producers and delivered via
registered mail by Canada Post.

The federal task force said this would be "especially important" to
marijuana users in rural and remote communities who would not have
access to a retail storefront.

But there were concerns, too, that mail-order alone would not be able
to handle demand for non-medical cannabis.

In the end, the task force said there were merits to both a
government-run model and a private-enterprise model.

"Either model could achieve the goals of protecting public health and
safety, reducing the illicit market and controlling youth access," it
said, adding that the decision best rests with individual
jurisdictions.

Government-owned pot shops How does the Liquor and Cannabis Board of
Ontario sound?

Wynne has left open the possibility of government-owned pot shops, a
model that has the backing of some public health experts who see it as
an effective control on the supply of marijuana.

"Government-controlled outlets might be more likely to demand proof of
age, refuse sales to underage or apparently impaired customers, sell
only products supplied by licensed producers and comply with other
federal regulatory limits," the federal task force said.

However, McLellan's panel cautioned against selling weed in the same
location as alcohol or tobacco.

"Concerns were raised about product promotion and exposing a larger
population to cannabis products should sales be co-located." NDP
Leader Andrea Horwath noted Monday that the LCBO's unionized employees
have the training and know-how to keep underaged users from buying
marijuana.

"The big issue is the social responsibility piece, so, we know that
the LCBO has that kind of capacity, if you will - they have a
distribution method that is already in place," she said.

Blair, who once suggested LCBOs were the most reasonable place from
which to control legal cannabis sales because of the ability to
restrict youth access to the drug, now says he hasn't abandoned such a
model.

"I'm not advocating around any position," Blair insisted, noting every
province and territory except for Alberta has a regulatory framework
and system of retail for alcohol sales.

"When you're trying to explain to people how the retail environment
could be regulated, I find it a really good example to point to that
most people are familiar with," he said.

"I think there are certain efficiencies and economies that might be
realized by building upon what's already in place as opposed to
building a new infrastructure, but at the same time, it's not my
intention to get out in front of the provinces and territories on this."
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MAP posted-by: Matt