Transitioning to the new rural cannabis Rural Policy Learning Commons Webinar economy Prepared by Tracey Harvey, PhD Student, University of Guelph Thursday, September 27 th , 2018
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
Outline Background Research Question Methods Why now? Current Understanding Policy goals and issues
Historic and Global influences 43 countries have legalized medical cannabis or decriminalized cannabis possession, or both
The B.C. cannabis industry Supporting provincial, to A rural B.C. indoor international demand licensed facility Medical legalization brought rapid growth Fueled by Licensed Producers, client registrations, personal and designated production licenses, and the proliferation of dispensaries
Licensed Producers in Canada 70 60 50 40 30 20 10 0 118 Licensed Producers in Canada 63 in Ontario 25 in BC September 21, 2018. Government of Canada
Client registrations (with Licensed Producers) 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 296,702 in Canada 123,983 in Ontario 112,207 in Alberta 10,887 in BC March 2 018. Government of Canada, market data
Personal use production license & Designated use production license registrations 6,000 5,000 4,000 3,000 2,000 1,000 0 15,618 in Canada 4,134 in BC 5,476 in Ontario March 2 018. Government of Canada, market data
Dispensaries weedmaps.com
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
The challenge
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
Project study area Kootenay Development region in British Columbia Population = 151,385 approximately 3% of British Columbia’s population
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
Project Methods Case study, using mixed methods Key informant interviews Secondary data
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
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
Opportunities Develop a formalized cannabis economy Utilize place based strengths (local knowledge) Research and development Harm reduction Education
Challenges Concern for rural socioeconomic well being Barriers to transition uncertainty Economic policy Social policy Safety Health and access Youth
Stakeholders Local, provincial, and federal governments Health practitioners Law enforcement Educators Cannabis Industry participants Youth Local businesses Residents Non-supporters of cannabis
Cannabis Act objectives Prevent youth from accessing cannabis Protect public heath and safety Deter criminal activity Reduce the burden on the criminal justice system
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.
Policy responsibility Federal Cultivation*, Processing*, Nursery, Research, and Analytical testing Provincial Distribution Retail*, Home cultivation, and Public consumption * Requires local government support for applicant
Province Distribution British Columbia BC Liquor Distribution Branch (BCLDB) Alberta Alberta Gaming and Liquor Commission (AGLC) Saskatchewan Saskatchewan Liquor and Gaming Authority (SLGA Manitoba Liquor, Gaming and Cannabis Authority of Manito Ontario Liquor Control Board of Ontario (LCBO) Quebec Société Québécoise du Cannabis (SQC) New Brunswick New Brunswick Liquor Corporation Nova Scotia Nova Scotia Liquor Corporation (NSLC) PEI Cannabis Management Corporation Newfoundland and Newfoundland and Labrador Liquor Corporation Labrador (NLC) Yukon Yukon Liquor Corporation Northwest Territories NWT Liquor Commission Nunavut Nunavut Liquor Commission
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
Province Home Cultivation British Columbia Yes, if out of public sight Alberta Yes, with landlord restrictions Saskatchewan Yes, with landlord restrictions Manitoba Not permitted Ontario Yes Quebec Not permitted New Brunswick Yes Nova Scotia Yes PEI Yes, if not accessible to minors Newfound Land Yes Yukon Yes, if out of sight Northwest Territories Yes Nunavut Not permitted
Province Public consumption British Columbia Not in cars, child spaces or where tobacco prohibited Alberta Not in cars, child spaces or where tobacco prohibited Saskatchewan Only in private spaces where minors are not permitted Manitoba Only in private residences Ontario Only in private spaces plus landlord restrictions Quebec Only where tobacco smoke permitted, except CEGEP and post secondary campuses New Brunswick Only in private spaces Nova Scotia Only where tobacco smoke permitted plus landlord restrictions PEI Only in private residences with some exceptions in public places Newfound Land Only in private spaces Yukon Only in private spaces plus landlord restrictions Northwest Only in private residences with some exceptions in public places Territories Nunavut Not permitted
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
Patchwork of policy Provincial differences Public versus private retail Personal cultivation Public consumption No lounges Local government differences disallowing all cannabis business and activity? Require public consultation for each application?
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
“What if you create a regulatory regime and no- one came?” Murray Rankin, MP Victoria, NDP Social Justice critic A crown land outdoor grow site found in the Kootenays.
Questions/comments/feedback? Tracey Harvey tharve01@uofguelph.ca ruralbclegalizationstudy.wordpress.com/
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