COUNCIL AGENDA REPORT

Transcription

1 COUNCIL AGENDA REPORT Meeting Date: 19 March 2018 Subject: Boards Routed Through: Date: Legalization of Cannabis City of Airdrie Approach N/A N/A Issue: Council is being provided with an overview of federal and provincial regulations regarding the legalization of cannabis and is being asked to direct staff to seek public input on key items, including but not limited to consumption in public places and retail store locations and/or restrictions. Background: In April 2017, the Government of Canada introduced legislation to legalize the sale and use of cannabis. In response to the introduction of overarching federal legislation, the Government of Alberta initiated an extensive public consultation process to collect feedback from Albertans and municipal governments on items that fell within provincial jurisdiction. The City of Airdrie participated in the July 2017 consultation process. During the fall session of the Alberta Legislature two bills were proclaimed outlining the provincial approach to the sale and consumption of cannabis in Alberta. Subsequent to this the Alberta Government released detailed regulations on February 16, These regulations provide municipalities with the necessary guidelines to make amendments to local bylaws to accommodate the legalization of cannabis in August Overview of Legislation Federal The Government of Canada created the Cannabis Act which is the overarching national legislation that legalizes the sale and consumption of cannabis nation-wide. The Federal Government will regulate all aspects of cannabis production as well as medical cannabis sales The Act is being reviewed by the Senate and is expected to pass into law in June/July of this year which will allow cannabis to be legally purchased and consumed across Canada in August 2018.

2 The Government of Canada also introduced changes to the Criminal Code and drug/drunk driving legislation. Provisions included in the Cannabis Act establish new enhanced penalties for illegal sales and distribution of cannabis and stricter penalties for drug driving. Provincial The Government of Alberta proclaimed Bill 26 An Act to Control and Regulate Cannabis and Bill 29 An Act to Reduce Cannabis and Alcohol Impaired Driving on December 15, The Provincial Government will regulate non-medical sales, licensing, public consumption, safety and enforcement related to cannabis. The associated regulation was released on February 16, The regulations provide municipalities, retailers and consumers with the rules surrounding the sale and consumption of cannabis. Municipalities were given discretion in setting some local laws to best reflect the needs of their communities. Provisions are outlined in more detail below. Legislation Timeline Federal legislation is presently being reviewed in the Senate and is expected to pass in June and be proclaimed into law in July. Cannabis sales and consumption, with some restrictions, should be legal nation-wide in August Provincial legislation allows for Alberta Gaming and Liquor Control (AGLC) to begin accepting applications for retail sales as of March 6, AGLC expects to process 250 applications in the first year. The Government of Alberta is in the process of finalizing the provincial approach to cannabis taxation and is exploring measures to address workplace safety and public education. More details will be released in the coming months. City of Airdrie Cross-Departmental Team Approach To address this issue in a fulsome way, the City of Airdrie has assembled a crossdepartmental team of staff experts consisting of the following departments: Municipal Enforcement Business Licensing Economic Development Planning Building Inspections Legislative Services Corporate Communications This team has participated in numerous discussions and presentations and will continue to work together to ensure changes to City of Airdrie bylaws reflect the needs of the local community. City of Airdrie Bylaws and Options to Regulate Planning and the Land Use Bylaw The Provincial Government regulations set conditions on provincial licenses and some general standards on the location and operation of cannabis retail businesses. These

3 include security measures for the business/premises, requirements to track and report inventory, training and records checks for all employees who will be involved in the sale of cannabis and standards on the sale, assignment, or transfer of any portion of the business. Regulations that affect the Land Use Bylaw (LUB) are: a required 100 metre setback for any cannabis store from provincial health care facilities, schools, or parcels of land designated as School Reserve (SR) or Municipal School Reserve (MSR); a limit on hours of sale for cannabis stores between the hours of 10:00 a.m. and 2:00 a.m.; and requirements on the orientation and access for the business, including that it must be within a permanent facility and if sharing a portion of the building with other businesses, it must be fully separated and have its own entrance, exit, receiving and storage areas and prevent access between receiving/storage areas and other businesses or the public areas of the store. Further to these details, Section 624 of the Municipal Government Act requires that the City s Land Use Bylaw must enforce and align with provincial regulations. Existing regulation of cannabis-related businesses in Land Use Bylaw Airdrie s current Land Use Bylaw No. B-16/2016 provides a separate land use classification for Medical Marihuana Production, which is allowed as a Discretionary Use in the Heavy Industrial Employment (IB-3) and Rural Business: General (RB-G) districts. The Land Use Bylaw also provides regulations specific to Medical Marihuana Production facilities under Section These include requirements that all processes and functions of the use must be fully enclosed within a stand-alone building, that no outdoor storage of goods, materials, or supplies may be permitted, that a copy of any federal licenses and additional details to review suitability of the site and impact on neighbouring properties must be provided for review during the Development Permit application and limits the term of any Development Permit approval to ten years. Recently, Planning Services has also received applications for medical marihuana consulting and counselling practices where people are able to gather information about medical marihuana, speak with doctors and receive assistance in navigating the medical marihuana prescription and licensing processes. These typically function like a medical practice (consulting with medical specialists) and until the federal legislation passes, there is no cannabis sales or retail component to these businesses. Administration has been reviewing such applications under the Health Care, Limited discretionary use and granted temporary approvals expiring July 1, 2018 with the intention of reviewing them after all bylaws, legislation and supporting regulations are in place. In addition to these specific land use classes, Section 7.15 of the Land Use Bylaw also provides regulations and guidance on applications which the Bylaw deems sensitive land uses. This includes most vehicle sales and services uses, nightclubs, pawn shops and medical marihuana production facilities. For these uses, the Bylaw does not set minimum separation distances, but provides the Development Authority with discretion to consider the compatibility of the proposed use with the surrounding area and focuses first on identifying and mitigating potential impacts including visuals, noise, hours of operation, parking and accessibility and the concentration of similar uses in the surrounding area.

4 Updating the Land Use Bylaw In order for the Land Use Bylaw to effectively address the federal and provincial legislation and regulations on cannabis, there are four general questions that will have to be addressed: How will the Land Use Bylaw define and classify cannabis-related businesses? The provincial regulations and the separation distances required from health care facilities, schools and school reserve parcels limit the Land Use Bylaw from classifying cannabis retail and related businesses under a more general land use such as General Retail. A specific land use class or a set of use classes are likely required in order to address cannabis retail, production, processing and distribution and new definitions for these land uses will have to be created. The Land Use Bylaw also has the ability to define separate use classes by the scale or intensity of the operation, so it is possible for the LUB to separately define, for example, Cannabis Retail, Limited and Major, as long as there is clear definition (such as the size of the facility or the inclusion of some functions or details of the land use) for when the application is escalated between the two categories. Home Businesses, Health Care facilities and Public Assemblies are three existing land use classifications under the LUB which provide for different intensities of the land use. With these updates, Planning Staff would recommend incorporating updated classifications relating to current medical marihuana production facilities and marihuana consulting businesses so that all cannabis-related businesses can be covered under a complete set of updated land use standards and regulations. While edible cannabis products are not being covered under this set of federal and provincial legislation, Planning staff may also explore definitions and standards for lounges, cafés and other potential businesses that may need to be addressed if/when this legislation opens up to allow them in the future. Where will cannabis-related businesses be permitted? There are four basic approaches to how the City of Airdrie can regulate cannabis-related businesses once appropriate land use classifications are established. 1. Any land use classification can be listed as a Permitted or Discretionary land use within one or more established districts in the City of Airdrie. 2. An overlay may be created that identifies specific locations where any land use classification for a cannabis-related business may be permitted. 3. The City may choose to create one or more new land use districts allowing for cannabis-related businesses and other land use classifications that the City deems appropriate (the Land Use Bylaw took this approach in creating new residential estate and office park districts when Bylaw No. B-01/2016 was drafted and passed). 4. The City may choose to require land use classifications for cannabis-related businesses to only be provided within a Direct Control (DC) district. Each of these approaches have their own benefits and challenges but Administration would generally support either of options 1 and 2 above to best balance the need for appropriate controls on the location of cannabis-related businesses without being too restrictive on potential new business opportunities for the City of Airdrie. In addition to these general approaches, Administration and Council should carefully consider whether any cannabis-related land use classifications are listed as Permitted

5 or Discretionary uses within the Land Use Bylaw. Listing a land use as a Permitted Use streamlines the applications process, but requires that the City must issue a permit if all Land Use Bylaw standards are met. It also removes most avenues for appeal of any approvals. Discretionary Uses require additional public notification of approvals and may be appealed if any person deems that they are impacted by a decision of the Development Authority, but allows more flexibility in considering City policies, guiding documents and neighbourhood context during review of the application. Finally, when determining the potential locations for cannabis-related businesses, the Land Use Bylaw should consider the provincial setback distances and whether there are any additional setbacks or separation distances required between cannabis-related businesses and other land uses (e.g. from liquor stores, residential districts, child care facilities, another cannabis store or cannabis-related use, etc.). The City should also consider that these setback requirements apply both to the regulated businesses and those that are being protected. For example, if a cannabis-related business is permitted in any location, a future application for a health care facility, school, or another use requiring a separation may have to be refused if it is within the specified setback requirement. What additional regulations or restrictions will the Land Use Bylaw place on Development Permit applications? The Land Use Bylaw can set specific standards on any use classification or general subject matter that achieves planning objectives or addresses policies set by the City s statutory plans. Parts 6 (Land Use Regulations) and 7 (General Development Regulations) already achieve this for other land uses and subject areas, and new sections within these parts of the Bylaw can be drafted to create appropriate standards on cannabis-related businesses. The City may consider: Setting a term limit or expiry on Development Permits for cannabis-related business or requiring a probationary period for a first application which will allow assessment of potential impacts or unintended issues that may arise. Reflecting and cross-referencing the provincial limits on hours of sale for cannabis stores and consider setting additional limits on hours of operation for cannabisrelated businesses. This could be specific to locations of businesses within a specified distance of residential areas. Requiring proof of federal and provincial licenses or other supporting documentation as part of a Development Permit application. For this, Administration would have to confirm with other licensing agencies to ensure that we are not inadvertently creating a situation where each (Municipal vs. Provincial) approval is required for the other. Requiring that any Development Permit application meet certain site design considerations and principles. Public safety can often be impacted by the design and orientation of the site, but regulations to this effect must be well thought-out and clearly articulated to provide consistent interpretations and certainty for both applicants and staff. Setting standards and requirements on signage for cannabis-related businesses. This would also have to be clearly thought out and articulated and Council may choose to provide some direction to administration on what it would like to achieve through signage regulations. The Land Use Bylaw has not typically regulated any

6 sign copy (i.e. the actual words or images used on the sign), but general standards in the LUB require balancing the need for businesses to reasonably and appropriately identify their location, advertise goods and services and promote their development and growth, against maintaining public safety and limiting adverse effects on the surrounding community. An important consideration is that for any requirements or standards that are written into the Land Use Bylaw, it must be possible for Planning staff to monitor, review and enforce those requirements, if necessary. How will the City of Airdrie manage planning applications for cannabis-related businesses? The Land Use Bylaw has administrative requirements and processes that are set out for all planning applications within Part 2 of the Land Use Bylaw, but it is valuable to consider whether the typical processes will be appropriate for cannabis-related businesses, or if any special requirements or exceptions need to be written into the Bylaw to appropriately balance the business and public interests around this new legislation. In the section on the location of cannabis-related businesses we discussed some of the implications of allowing these as Permitted or Discretionary Uses, but this also impacts some of the City s typical administrative practices. Permitted Uses are typically reviewed and approved by the Development Officer and Discretionary Uses by the Municipal Planning Commission, but the City may consider whether this should be treated as typical practice for applications for cannabis-related businesses and where the development authority for these applications should lie. The City may also consider whether there should be any additional neighbourhood consultation or opportunities required for public input before an application is given a decision/approval, or any additional advertising or notice requirements to the community regarding applications or approvals for cannabis-related businesses. This also relates to the question of whether cannabis-related businesses should be Permitted or Discretionary Uses, and the City may not want to widely notify or advertise for Permitted Use decisions because there is no opportunity for input or appeal of a decision. This provides an overview of all the decisions and considerations that will need to be made as the City of Airdrie moves forward with updates to its Land Use Bylaw to align with cannabis legislation and licensing requirements. Smoking Bylaw Public Consumption The Alberta Act to Control Cannabis sets out where cannabis can be consumed. For instance, cannabis cannot be smoked in the following areas: Vehicles Cannabis retail outlets Anywhere smoking or vaping tobacco is already restricted. The City s Smoking Bylaw defines smoking as the carrying, holding or otherwise controlling of a lighted cigar, cigarette, pipe or any other lighted smoking equipment. The

7 bylaw goes on to prohibit smoking in areas such as bus shelters, buses, hotels and outdoor patios. If Council wishes, they can amend the Smoking Bylaw to further restrict the public places where cannabis can be consumed. The bylaw currently prohibits smoking within five metres of exits and entrances to public buildings including City buildings, public transportation vehicles and public transportation shelters and workplaces; however, Council has the ability to be more restrictive with these distances. The provincial legislation does not allow for consumption in areas frequented by children such as schools, hospitals and childcare properties and within five metres of skate parks, spray parks, sports or playing fields, zoos, outdoor theatres, pools or splash pads and playgrounds. The City has the ability to expand on these restrictions. For example, Council may choose to increase the area where smoking of cannabis is prohibited around playgrounds, sports fields and splash parks. In fact, Council may prohibit smoking in parks altogether, being mindful that if this legislation is in place, there will be an expectation of the public that it is tightly enforced. While this may change, at this point Bylaw Officers do not have the authority to enforce provincial cannabis legislation so at present time enforcement would fall only to the RCMP. It is important to note that Council does not have the authority to prohibit the smoking of cannabis on private property including residential backyards. Condominium associations will have the opportunity to amend their bylaws to prohibit the smoking of cannabis on the premises. This is not an area that the City is able to regulate and will not be responsible for enforcing. Business Licensing Bylaw With the Provincial Government outlining regulations for cannabis retailers in mid- February, there has been a strong interest in how Airdrie will be dealing with licensing retail cannabis operations. In discussion with Business Licensing and Economic Development, it is recommended that at this time, cannabis retailers be treated like any other retail operations in regards to the business licensing process. Traditionally, the City of Airdrie has not discriminated against businesses types or operations, and has not set quotas limiting the number of any one type of business, for example taxi companies or liquor stores. The Province has set out a stringent process for applicants to apply for commercial licenses, including background (criminal and financial) checks of both applicants and investors; it is the feeling of staff, that this would be sufficient due diligence to safeguard our community against the involvement of criminal elements in the retail cannabis industry. Currently the Business License Bylaw is under review, so it has been determined that if we need to review any minor changes for cannabis retailers it could happen at this time. Assessment and Taxation With changes made to the Municipal Government Act in 2017, Council can choose to tax cannabis retailers at a different rate as long as the rate falls within the 5:1, non-residential to residential ratio. Both the Federal and Provincial governments will be collecting taxes from the sale of cannabis, similar to taxes collected from the sale of alcohol and tobacco. There has been much discussion about the need to share these revenues with

8 municipalities, but to date no formal announcement has been made outlining how or if that may happen. Many municipalities are concerned about the local cost impacts of enforcement, regulation and education. Both the Alberta Urban Municipalities Association (AUMA) and Federation of Canadian Municipalities (FCM) have been advocating for revenue to be shared with municipalities. This is also an item of discussion at the March 2018 AUMA Municipal Leaders Caucus (formerly the Mayor s Caucus). Public Consultation Options The City of Airdrie cross-departmental team, of which Corporate Communications is a member, has devised three options to inform the City of Airdrie s approach to regulating cannabis sales and the consumption of cannabis in public spaces. Level of Consultation Consultation methods Pros/Cons Timeline Legislated consultation. Council makes decisions on behalf of the residents. The legislated public hearing for the changes to the Land Use Bylaw would be the only opportunity for public input. Pros fastest method. Cons - potentially the least reflective of what stakeholders would like to see. Decisions could be made as soon as Council is ready. Potentially could be wrapped up in 2 months. Consultation on topics of particular concern/ interest. This approach would involve consultation on the following 3 items that have been identified as the most important to the stakeholders: 1. Where people are allowed to consume cannabis. 2. Where stores are allowed to be (separation distances, districts). 3. Transitional businesses taking an existing business and transitioning it into a Staff would hold focus groups with potential cannabis related business owners to gather their input. As well, staff would hold one workshop for all other stakeholders where they can discuss the hot topics and provide input. Pros get input into the most important topics focused on the most impacted stakeholders. Will help Council make a decision that is reflective of stakeholders opinions. Cons limiting consultation to hot topics may make some stakeholders feel that they didn t get a say in everything. Get direction from Council mid March, hold consultations end of April, early May, report back to Council in June. Changes to bylaws in July/August, completed for September this is in line with federal government s legalization timeline.

9 cannabis based business. Consult on everything in the municipality s control. In order to get input on all of the options under the municipality s control, a series of workshops and focus groups over 2-3 months would need to be held. Pros nothing will be left out in the consultation process. Cons most time consuming and resource heavy option will delay implementation of the new bylaws. Get direction from Council mid March, hold consultations in May/June, and early July. Report back to Council in late July, make changes to bylaws in August, completed for Oct/Nov. This is after the federal government s timeline. Regional Alignment As part of Administration s efforts in reviewing and updating our local bylaws, we are participating in regional discussions on implementation of cannabis legislation that is being organized with the member municipalities of the Calgary Metropolitan Region Board. This information sharing will allow municipalities to better understand and possibly coordinate efforts across the Calgary region. Alignment with AirdrieONE: N/A Boards Routed Through: N/A Alternatives/Implications: Airdrie City Council has four options to consider when deciding how the municipality should proceed on amending key provisions in local bylaws to reflect Federal and Provincial legislation: Alternative 1: Council can choose to make decisions on behalf of the residents taking into account staff input contained in this report. This option allows for public input to be heard during the public hearing required for the changes to the Land Use Bylaw. Many of the decisions on discretionary provisions could be made and bylaws updated within the next two months.

10 Alternative 2: Council can choose to seek public input on key items, including but not limited to consumption in public places and retail store location and/or restrictions. This option allows for public input to be collected and incorporated in changes to all affected bylaws. Public consultations could be held in late April and early May allowing for staff to report back to Council in June and changes to be made to local bylaws in July and August, completed for September. This is in line with the government s legalization timeline. Alternative 3: Council can choose to seek public input on all items under the municipality s control. This option allows for extensive consultations to occur in May and June, a report back to Council in July and changes made to bylaws in August and September, completed for October-November. This is after the government s timeline for legalization. Alternative 4: Council can direct staff to provide more information on any or all of the provisions left to municipal discretion. Communications Plan: Administration will work with Corporate Communications to ensure that the City s approach is well communicated with stakeholders and necessary feedback is collected. Recommendation: That Council directs staff to seek public input on key items, including but not limited to consumption in public places and retail store locations and/or restrictions. Leona Esau Intergovernmental Liaison Presenter: Department: Reviewed by: Attachments: Appointment: Leona Esau, Intergovernmental Liaison CAO s Office Paul Schulz; Kari Kitiuk #1: Future of Cannabis in Alberta - GOA N/A