Transitioning to the new rural cannabis economy

Transcription

1 Transitioning to the new rural cannabis economy Rural Policy Learning Commons Webinar Prepared by Tracey Harvey, PhD Student, University of Guelph Thursday, September 27 th, 2018

2 A PhD project supported by: Selkirk College's Regional Innovation Chair in Rural Economic Development, Community Futures of Central Kootenay, MITACS, Social Sciences and Humanities Research Council of Canada, and School of Environmental Design and Rural Development at the University of Guelph

3 Outline Background Research Question Methods Why now? Current Understanding Policy goals and issues

4 Historic and Global influences 43 countries have legalized medical cannabis or decriminalized cannabis possession, or both

5 The B.C. cannabis industry A rural B.C. indoor licensed facility Supporting provincial, to international demand Medical legalization brought rapid growth Fueled by Licensed Producers, client registrations, personal and designated production licenses, and the proliferation of dispensaries

6 Licensed Producers in Canada Licensed Producers in Canada 63 in Ontario 25 in BC September 21, Government of Canada

7 Client registrations (with Licensed Producers) 140, , ,000 80,000 60,000 40,000 20, ,702 in Canada 123,983 in Ontario 112,207 in Alberta 10,887 in BC March Government of Canada, market data

8 Personal use production license & Designated use production license registrations 6,000 5,000 4,000 3,000 2,000 1, ,618 in Canada 4,134 in BC 5,476 in Ontario March Government of Canada, market data

9 Dispensaries weedmaps.com

10 Rural B.C. cannabis Said to contribute between 10-80% of local economies in rural B.C. regions BC contributes ~40 % of Canadian production Rich cultural history Growth in industry was a response to the decline of natural resources A medically licensed rural BC cannabis garden

11 The challenge

12 Research Question How can the Kootenay region effectively transition to the new rural cannabis economy? A rural B.C. farmer at his outdoor licensed cannabis garden

13 Project study area Kootenay Development region in British Columbia Population = 151,385 approximately 3% of British Columbia s population

14 Project Objectives Identify stakeholders Understand how they re using information for evidence based decisions And whether all stakeholders are being heard To uncover how they are responding to this transformative policy change

15 Project Methods Case study, using mixed methods Key informant interviews Secondary data

16 Why now? The underground cannabis industry was historically not included as part of Canada s economy Substantial size and scale Estimated production larger than beer and tobacco Nearly 5 million consumers spent about $6B By 2020, estimated to be a $20B industry Historically craft producing regions face risk Legislation does not support independent farmers

17 Current Understanding Thoughtexchange Local cannabis information sessions Regional District Central Kootenay (RDCK) information sessions Wayne Stetski and Murray Rankin, NDP MP Local government conventions Association Kootenay Boundary Local Government (AKBLG), and Union of British Columbian Municipalities (UBCM) Informal conversations

18 Opportunities Develop a formalized cannabis economy Utilize place based strengths (local knowledge) Research and development Harm reduction Education

19 Challenges Concern for rural socioeconomic well being Barriers to transition uncertainty Economic policy Social policy Safety Health and access Youth

20 Stakeholders Local, provincial, and federal governments Health practitioners Law enforcement Educators Cannabis Industry participants Youth Local businesses Residents Non-supporters of cannabis

21 Cannabis Act objectives Prevent youth from accessing cannabis Protect public heath and safety Deter criminal activity Reduce the burden on the criminal justice system

22 Policy Issues Policy myopia Analogous policy adoption Federal and Provincial legislation supports large corporate participants Cannabis seedlings at Tilray - a medical cannabis facility in Nanaimo, B.C.

23 Policy responsibility Federal Cultivation*, Processing*, Nursery, Research, and Analytical testing Provincial Distribution Retail*, Home cultivation, and Public consumption * Requires local government support for applicant

24 Province British Columbia Alberta Saskatchewan Manitoba Ontario Quebec New Brunswick Nova Scotia PEI Newfoundland and Labrador Yukon Distribution BC Liquor Distribution Branch (BCLDB) Alberta Gaming and Liquor Commission (AGLC) Saskatchewan Liquor and Gaming Authority (SLGA Liquor, Gaming and Cannabis Authority of Manito Liquor Control Board of Ontario (LCBO) Société Québécoise du Cannabis (SQC) New Brunswick Liquor Corporation Nova Scotia Liquor Corporation (NSLC) Cannabis Management Corporation Newfoundland and Labrador Liquor Corporation (NLC) Yukon Liquor Corporation Northwest Territories NWT Liquor Commission Nunavut Nunavut Liquor Commission

25 Province Retail British Columbia Hybrid, public online Alberta Private stores, public online Saskatchewan Private (lottery) Manitoba Private Ontario Public Private Quebec Public, 15 stores New Brunswick Public, max 20 stores Nova Scotia Public PEI Public, 4 stores Newfound Land Private Yukon Hybrid Northwest Territories Public Nunavut None in 2018

26 Province British Columbia Alberta Saskatchewan Manitoba Ontario Quebec New Brunswick Nova Scotia PEI Newfound Land Yukon Northwest Territories Nunavut Home Cultivation Yes, if out of public sight Yes, with landlord restrictions Yes, with landlord restrictions Not permitted Yes Not permitted Yes Yes Yes, if not accessible to minors Yes Yes, if out of sight Yes Not permitted

27 Province British Columbia Alberta Saskatchewan Manitoba Ontario Quebec New Brunswick Nova Scotia PEI Public consumption Not in cars, child spaces or where tobacco prohibited Not in cars, child spaces or where tobacco prohibited Only in private spaces where minors are not permitted Only in private residences Only in private spaces plus landlord restrictions Only where tobacco smoke permitted, except CEGEP and post secondary campuses Only in private spaces Only where tobacco smoke permitted plus landlord restrictions Only in private residences with some exceptions in public places Newfound Land Only in private spaces Yukon Northwest Territories Nunavut Only in private spaces plus landlord restrictions Only in private residences with some exceptions in public places Not permitted

28 Policy responsibility cont d Local Government Cultivation and Retail applicants require support Can permit or prohibit use of Agricultural lands Required to modify zoning bylaws to allow (or disallow) cannabis facilities Decides public consumption rules Many rural areas do not have bylaw zoning, business license permitting processes to address the emerging market

29 Patchwork of policy Provincial Public versus private retail Personal cultivation Public consumption No Local differences lounges government differences disallowing all cannabis business and activity? Require public consultation for each application?

30 Potential Policy failure? Deep uncertainty Black market may (continue to) supply medical demand Continued civil disobedience of the law? Bill C-46 anticipated litigation Can be convicted for a DUI without conducting a crime

31 What if you create a regulatory regime and noone came? Murray Rankin, MP Victoria, NDP Social Justice critic A crown land outdoor grow site found in the Kootenays.

32 Questions/comments/feedback? Tracey Harvey ruralbclegalizationstudy.wordpress.com/