AGENDA - Council - 20190121Special Meeting
of Council
Agenda
Monday, January 21, 2019
7 p.m.
Council Chambers
Aurora Town Hall
Public Release
December 20, 2018
Town of Aurora
Special Meeting of Council
Agenda
Monday, January 21, 2019
7 p.m., Council Chambers
1. Approval of the Agenda
Recommended:
That the agenda as circulated by Legislative Services be approved.
2. Declarations of Pecuniary Interest and General Nature Thereof
3. Public Consultation
4. Consideration of Items Requiring Discussion
1. CS19-001 – Proposed Private Cannabis Retail Stores in Aurora
Recommended:
1. That Report No. CS19-001 be received for information.
5. Confirming By-law
Recommended:
That the following confirming by-law be enacted:
XXXX-19 Being a By-law to Confirm Actions by Council Resulting from a Special
Meeting of Council on January 21, 2019.
6. Adjournment
Town of Aurora
Council Report No. CS19-001
Subject: Proposed Private Cannabis Retail Stores in Aurora
Prepared by: Patricia De Sario, Town Solicitor
Department: Corporate Services
Date: January 21, 2019
Recommendation
1. That Report No. CS19-001 be received for information.
Executive Summary
This report provides an overview of the legalization of recreational cannabis, information
about the licensing and regulatory framework for private cannabis retail stores and
further information for Council to consider in its decision of whether to opt-out and
prohibit private cannabis retail stores within Aurora or whether to opt-in and permit
private cannabis retail stores within Aurora. Council needs to decide by resolution by
January 22, 2019.
• The Alcohol and Gaming Commission of Ontario (“AGCO”) will regulate private
cannabis retail stores and will enforce the Cannabis Licence Act, 2018 (the “Act”)
through inspections and other means
• The Act specifically prohibits a municipality from enacting bylaws to license
private cannabis retail stores or to designate them as a separate land use from
any other permitted retail use within the municipality
• The Act and its regulation contain restrictions on where private cannabis retail
stores may be located, what may be sold and how they may be operated
• If Council permits private cannabis retail stores, the AGCO will consider
municipal and community input on the proposed location of the store
• Private cannabis retail stores bring a new sector of economic development
opportunities to a municipality
Special Meeting of Council Agenda
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Item 1
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January 21, 2019 Page 2 of 10 Report No. CS19-001
• Increased funding will only be available to those municipalities that permit private
cannabis retail stores
• If Council does not permit private cannabis retail stores, residents will still have
access to cannabis through the Ontario Retail Corporation and other
municipalities that permit private cannabis retail stores within their municipalities
Background
On October 17, 2018, the Cannabis Control Act, 2018 came into effect which legalized
the use and consumption of recreational cannabis in Ontario. Since legalization,
residents over the age of 19 have been able to purchase legal cannabis online from the
Ontario Cannabis Retail Corporation, being a corporation established under provincial
legislation (the “Corporation”). At this time, the Corporation is the only corporation that
has the exclusive right to sell recreational cannabis in Ontario.
Following the legalization of recreational cannabis, the provincial government
announced that it will allow private cannabis retail stores commencing on April 1, 2019.
As such, on November 14, 2018, the Cannabis Licence Act, 2018 (the “Act”) and O.Reg
468/18 came into effect. The Act and the regulations sets out a licensing and regulatory
framework for the private retail of recreational cannabis in Ontario and gives the Alcohol
and Gaming Commission of Ontario (“AGCO”) the authority to license, regulate and
enforce the sale of recreational cannabis through private retail stores.
The provincial government is ensuring that municipalities play a role in deciding whether
to have private cannabis retail stores located within their municipality by permitting
municipalities to opt out of having stores by January 22, 2019.
The purpose of this report is to provide information known to date to assist Council in
deciding whether to permit private cannabis retail stores in Aurora. This report will not
discuss the use and consumption of recreational cannabis, illegal storefronts or home
cultivation of cannabis. Further reports will be brought before Council as the need
arises.
Special Meeting of Council Agenda
Monday, January 21, 2019
Item 1
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January 21, 2019 Page 3 of 10 Report No. CS19-001
Analysis
The AGCO will regulate private cannabis retail stores and will enforce the Act
through inspections and other means.
The Act requires the following licences or authorizations in order for a person to own or
operate a private cannabis retail store:
1. Retail operator licence – to be eligible, a person must be, among other things, at
least 19 years of age, financially responsible and not convicted of or charged with
an offence under federal or provincial legislation relating to cannabis. A person or
organization must also not be associated with organized crime.
2. Retail store authorization – only the holder of a retail operator licence, or
someone in the process of applying for such a licence, may apply for this
authorization. They will only be given in those municipalities that have not opted
out of having a private cannabis retail store. Someone may only hold 75 retail
store authorizations.
3. Retail manager licence – required in order to supervise or manage employees or
to oversee or co-ordinate the purchase and sale of cannabis, unless the
individual already has a retail operator licence. All holders of licences and all
employees of private cannabis retail stores must be at least the age of 19 and
will be required to successfully complete training courses or programs approved
by the AGCO board, which training would include the responsible sale of
cannabis and record keeping requirements.
The above licences and authorizations are initially only valid for two years and then may
be renewed for a further two or four years. They may only be held by those who applied
for them (i.e. they are not transferrable). The AGCO may suspend or revoke any issued
licences or authorizations where there is non-compliance with the Act. The AGCO must
revoke a licence or authorization where the holder of a licence or authorization is
convicted of contravening certain sections of the Cannabis Control Act, 2018, including
the selling to a person under 19 years of age. Where a licence or authorization has
been refused or revoked, the person cannot apply for another one for a two-year period.
In order to ensure compliance with the Act, the AGCO may employ or designate
persons as inspectors to carry out inspections, whom may enter any place (except a
dwelling) at any reasonable time to carry out an inspection. When conducting an
Special Meeting of Council Agenda
Monday, January 21, 2019
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January 21, 2019 Page 4 of 10 Report No. CS19-001
inspection, inspectors may examine records and anything else that is relevant to the
inspection, take pictures and inquire into financial transactions. Further, the AGCO may
appoint any person to be an investigator to determine whether there has been a non-
compliance. The Act specifically deems police officers to be investigators. It is an
offence, under the Act, to impede an inspection or investigation.
The Act specifically prohibits a municipality from enacting bylaws to license
private cannabis retail stores or to designate them as a separate land use from
any other permitted retail use within the municipality.
While the Town does not have the authority to license private cannabis retail stores or
prohibit them as a land use, private cannabis retail stores are still required to comply
with the Town’s zoning by-law and the Official Plan in regard to zones and standards
that apply to all retail stores (i.e. the store may only be located in a retail zone, it must
comply with setbacks, etc.). In addition, the Building Code and Fire Code may apply if
permits are required and where these codes do apply, the appropriate inspections
would be required.
The Act and regulation contain some restrictions on where private retail cannabis
stores may be located, what may be sold and how they may be operated.
Private cannabis retail stores must be stand-alone stores (i.e. they cannot be part of
another store that sells other products) and shall not be located less than 150 metres
from a school or a private school. The authorized cannabis retail seal must be
displayed in a conspicuous place that is visible from the exterior of the public entrance
and persons that appears to be under the age of 25 are not permitted to enter the store
unless they provide identification. Also, there are restrictions on the promotion and
display of cannabis products.
Private cannabis retail stores may operate between the hours of 9am and 11pm on any
day. Only cannabis that was purchased directly from the Ontario Cannabis Retail Store,
cannabis accessories and shopping bags may be sold. Cannabis cannot be sold or
distributed to someone who is or appears to be intoxicated and all sales in a single visit
may not exceed 30 grams. Lastly, private cannabis retail stores cannot sell to anyone
online; online sales will continue to be permitted only through the Ontario Retail
Cannabis Corporation.
Special Meeting of Council Agenda
Monday, January 21, 2019
Item 1
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January 21, 2019 Page 5 of 10 Report No. CS19-001
If Council permits private cannabis retail stores, the AGCO will consider
municipal and community input on the proposed location.
The AGCO is now accepting applications for a retail store authorization (since
December 17, 2018). As part of the application process, the applicant is required to
give notice of its application by posting a notice at the location of the proposed retail
store location. Although the AGCO encourages the applicant to contact the municipality
ahead of time, there is no legal obligation on the applicant to do so. In addition, the
AGCO is not required to provide the municipality with notice. Instead, the AGCO will
provide notice of its applications on its website and Town staff will be required to
continuously monitor the website to be informed of any applications within the Town.
Within 15 calendar days after notice is given, the Town, the Region or any resident of
the Town may make a written submission to the AGCO. Anonymous submissions will
not be accepted. The submission is limited to whether the issuance of a retail store
authorization for the specific location is in the public interest and for this purpose,
matters of public interest pertain only to protecting public health and safety, protecting
youth and restricting their access to cannabis and preventing illicit activities in relation to
cannabis.
The restriction regarding the 150 metres setback from schools mentioned above does
not apply to daycares or nurseries and colleges or universities. Further, there are no
restrictions or setbacks set out in the Act that apply to other locations that are
frequented by youth, such as Aurora’s community centres, the Aurora Public Library,
parks and open spaces, any group homes or addiction and counselling facilities. Lastly,
the Act does not establish a separation distance between the stores themselves.
Therefore, if Council decides to permit private cannabis retail stores, it is recommended
that Council submit to the AGCO the above facilities as pre-approved sensitive areas as
a matter of public interest, so that the AGCO may take these locations into
consideration when reviewing the location of a proposed private cannabis retail store
within Aurora. Having said that, it is unclear how much influence the AGCO will place
on any comments received.
In addition, the 15-day time period does not allow enough time for staff to bring a report
to Council in order for Council to consider the application. Therefore, if Council decides
to permit private cannabis retail stores, it is recommended that Council delegate to staff
the authority to make submissions to the AGCO within the 15-day time period based
upon the pre-approved sensitive areas described above.
Special Meeting of Council Agenda
Monday, January 21, 2019
Item 1
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January 21, 2019 Page 6 of 10 Report No. CS19-001
If Council decides to opt out of permitting private cannabis retail stores, any applications
currently under review by the AGCO will automatically be refused.
Private cannabis retail stores would bring a new sector of economic development
opportunities to the Town.
By permitting private cannabis retail stores, Council would be supporting small
businesses and creating new jobs within the Town. There would also be additional
consumers from other communities that may not have otherwise come to Aurora.
Increased funding will be available to those municipalities that permit private
cannabis retail stores.
On November 20, 2018, the Ministry of Finance confirmed in a letter to the Association
of Municipalities of Ontario (“AMO) that the provincial government will provide $40
million over two years through the Ontario Cannabis Legalization Implementation Fund
(the “Fund”) as follows:
• In early January, $15 million will be distributed amongst all municipalities on a
per household basis, with each municipality receiving at least $5,000.00 to
support municipalities with implementation costs relating to the legalization of
cannabis. As set out in more detail in the Financial Implications section of this
report, the initial payment apportioned to the Town is $26,324.00.
• After the January 22nd deadline, a further payment of $15 million will be
distributed so that:
o any municipality that opts out will only receive a further $5,000.00; and
o any municipality that does not opt out will receive further funding on a per
household basis, adjusted so that at least $5,000.00 is provided to
support the initial costs related to hosting private cannabis retail stores.
• Further, $10 million will be set aside to address costs from unforeseen
circumstances related to the legalization of recreational cannabis. This amount
will be distributed with priority given to those municipalities that have not opted-
out.
The Ministry has also stated that if Ontario’s portion of the federal excise duty on
recreational cannabis over the first two years of legalization exceeds $100 million, the
province will provide 50 percent of the surplus only to municipalities that have not opted-
out as of January 22, 2019. Therefore, any municipality that does not permit private
cannabis retail stores will not receive this further funding.
Special Meeting of Council Agenda
Monday, January 21, 2019
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January 21, 2019 Page 7 of 10 Report No. CS19-001
The letter further states that the lower-tier and upper-tier municipalities will receive a
50/50 split of the total allocation. Therefore, while the decision is entirely Council’s
decision, any decision made will have an impact on the amount of funding received by
the Region of York.
Whether or not a private cannabis retail store is located in Aurora, the municipality and
the Region will have costs in regard to increased enforcement (which includes police,
public health, by-law enforcement and court administration), increased response to
public inquiries through Access Aurora, social media and other staff members, and
costs incurred in developing by-laws and policies (including workplace policies).
If Council does not permit private cannabis retail stores, residents will still have
access to cannabis through the provincial Corporation and other municipalities
that permit private cannabis retail stores within their municipalities.
If Council prohibits private cannabis retail stores and one of the adjoining municipalities
permits it, not only will residents still have access to the online provincial Corporation
but they would also have access to a private cannabis retail store in close proximity to
the Town’s municipal border. If an adjoining municipality permits private cannabis retail
stores, the Town would still have a private cannabis retail store in close proximity to it
and yet it would not be able to comment on the proposed location, or, more importantly
would not receive a share of the funding that will be given to municipalities who opt-in.
At the time of the writing of this report, most of the other local municipalities within York
Region have not made a decision as to whether to permit or prohibit private cannabis
retail stores, except for King Township, City of Markham and Town of Richmond Hill.
The Councils from these municipalities have decided to opt-out and prohibit private
cannabis retail stores. The others will be making a decision closer to the opt-out date.
Further information on these decisions will be made available to Council in a further
report prior to the January 21st Council meeting.
The AGCO will be keeping a list of the municipalities that have opted-out and opted-in
and this list is publicly available on its website.
Advisory Committee Review
None.
Special Meeting of Council Agenda
Monday, January 21, 2019
Item 1
Page 7 of 18
January 21, 2019 Page 8 of 10 Report No. CS19-001
Legal Considerations
The Act provides a municipality with the one-time opportunity to prohibit cannabis retail
stores from being located in the municipality provided that a resolution is passed by
January 22nd, 2019. The resolution must be forwarded to the AGCO by this date and
the AGCO will provide written notification of receipt. If the resolution is not received by
the AGCO by January 22nd, private cannabis retail stores, by default, will be permitted
within the Town.
A municipality who chooses to prohibit stores by this date may, at any time, by
resolution, lift the prohibition and permit stores to be located in the municipality.
However, a decision to allow retail stores is final and cannot be reversed.
Financial Implications
In a letter dated November 26, 2018, the Town was advised that its first payment will be
$26,324.00, based upon 20,646 households (as per MPAC) with a funding amount of
$127.50 amount per 100 households. The Region of York will be receiving this same
amount for its share of Aurora households.
The remaining amount of funding that the Town will receive will depend upon whether or
not Council decides to permit private cannabis retail stores. If Council does not permit
private cannabis retail stores within the Town or reconsiders and permits them at a later
date, the second payment will be capped at $5,000.00. In addition, the Town will not
receive any share of the province’s portion of all future federal excise duty on
recreational cannabis, which is likely to be significant.
Any funding received out of the noted $40 million that has been earmarked by the
province for the cannabis legislation implementation must be used only to pay for
implementation costs directly related to the legalization of cannabis, such as increased
enforcement, increased response to public inquiries, increased fire and paramedic
services and by-law or policy development. The Town and the Region may transfer any
money that either receive between each other; however, it will be the Town’s
responsibility to ensure that the funds are used solely for the aforementioned purposes.
The Town is required to keep and maintain all records relating to money received from
the Fund and the Ministry of Finance may ask the Town to provide information to it.
It’s unclear as to how much money or resources have been spent to date relating to the
legalization of cannabis. However, a lot of time and resources have already been used
Special Meeting of Council Agenda
Monday, January 21, 2019
Item 1
Page 8 of 18
January 21, 2019 Page 9 of 10 Report No. CS19-001
by staff to prepare for the legalization of cannabis, including some staff being part of a
Region-wide working group and the implementation of communication tools, such as a
website dedicated to cannabis information.
Communications Considerations
In order to solicit feedback from residents on their thoughts regarding private cannabis
retail stores in Aurora, the staff is conducting an online consultation on PlaceSpeak.
Residents are being asked to share their thoughts on private cannabis retail stores in
Town. The online consultation is being promoted through social media, Aurora Matters
and the Notice Board. The results of the consultation will be consolidated and shared
with Council and the public in an additional report prior to the January 21st Council
meeting.
Link to Strategic Plan
Enabling a diverse, creative and resilient economy by promoting economic opportunities
that facilitate the growth of Aurora as a desirable place to do business and supporting
small business and encouraging a more sustainable business environment.
Alternative(s) to the Recommendation
Depending upon Council’s decision, proposed resolutions have been prepared and are
attached to this report as Attachments 3 and 4.
Conclusions
Council needs to decide by January 22nd, 2019 as to whether they would like to permit
private cannabis retail stores within the Town of Aurora. Ultimately, even if Council
prohibits private cannabis retail stores, residents would still be able to purchase
cannabis online from the provincial Corporation or in person from an adjoining
municipality that permits private cannabis retail stores within its municipal boundaries.
In addition, any funding provided by the province would be limited to a little over
$30,000.00 and the Town would not receive any share of the province’s portion of future
federal excise duty on recreational cannabis.
Special Meeting of Council Agenda
Monday, January 21, 2019
Item 1
Page 9 of 18
Special Meeting of Council Agenda Monday, January 21, 2019Item 1 Page 10 of 18
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!TOWNSHIP OF KINGTOWN OF WHITCHURCH-STOUFFVILLEAttridge DriveHydro CorridorYONGE STREETWELLINGTON STREET EASTVANDORF SIDEROADST JOHN'S SIDEROADWELLINGTON STREET WESTHENDERSON DRIVEVANDORF SIDEROADYONGE STREETVANDORF SIDEROADST JOHN'S SIDEROADLESLIE STREETST JOHN'S SIDEROADWELLINGTON STREET EASTBATHURST STREETBAYVIEW AVENUELESLIE STREETST JOHN'S SIDEROADBATHURST STREETBAYVIEW AVENUEPOSSIBLE CANNABIS RETAIL LOCATIONSMap created by the Town of Aurora Planning and Building Services Department, November 28, 2018. Base data provided by York Region & the Town of Aurora.¯FIGURE 10 0.25 0.5 0.75 1KilometersPOSSIBLE CANNABIS RETAIL ZONES$WWDFKPHQWSpecial Meeting of Council Agenda Monday, January 21, 2019 Item 1 Page 11 of 18
Attachment 2Special Meeting of Council Agenda Monday, January 21, 2019Item 1 Page 12 of 18
Special Meeting of Council Agenda Monday, January 21, 2019Item 1 Page 13 of 18
Special Meeting of Council Agenda Monday, January 21, 2019Item 1 Page 14 of 18
Special Meeting of Council Agenda Monday, January 21, 2019Item 1 Page 15 of 18
Ontario Cannabis Legalization Implementation Fund
2018-19 First Payment - Allocation Notice
Town of Aurora 1946
Region of York
$26,324
A Funding Amount based on Number of Households (A1 x A2 ÷ 100)$26,324
1. Number of Households 20,646
2. Funding Amount per 100 Households $127.50
Notes and Data Sources
A - funding amount is rounded up to the nearest dollar.
A1 - household figures are based on the 2018 returned roll provided by the Municipal Property Assessment Corporation (MPAC).
A2 - represents the funding amount per 100 households for lower-tier municipalities.
The Ontario Cannabis Legalization Implementation Fund (OCLIF) is provided to
municipalities to help with the implementation costs of recreational cannabis
legalization.
Funding Allocation
Ontario Ministry of Finance Issued: November 2018
Special Meeting of Council Agenda
Monday, January 21, 2019
Item 1
Page 16 of 18
Attachment 3
Proposed resolution to opt-out and prohibit private cannabis retail stores
1. That Report No. CS19-001 be received;
2. That Council of The Corporation of the Town of Aurora prohibits cannabis retail stores
from being located within the Town of Aurora;
3. That the Town Clerk provide written notice and a copy of this resolution to the Registrar
of the Alcohol and Gaming Commission of Ontario, in accordance with section 41(5) of
the Cannabis Licence Act, 2018;
4. That the Chief Administrative Officer and the Treasurer, or its designate, be authorized
to enter into any agreements in regard to intergovernmental funding relating to the
implementation of cannabis; and
5. That a copy of this resolution be forwarded to the Region of York and all lower tier
municipalities within York Region for their information.
Special Meeting of Council Agenda
Monday, January 21, 2019
Item 1
Page 17 of 18
Attachment 4
Proposed resolution to opt-in and permit private cannabis retail stores
1. That Report No. CS19-001 be received;
2. That Council of The Corporation of the Town of Aurora permits cannabis retail stores
within the Town of Aurora;
3. That Council request the AGCO to consider the following restrictions as a matter of
public interest when reviewing retail store authorization applications for proposed
stores within the Town of Aurora:
a. That private cannabis retail stores not be permitted within 150 metres from
daycares, nurseries, group homes or addiction and counselling facilities, the
Aurora Community Centre, the Aurora Family Leisure Complex, the Stronach
Aurora Recreation Complex, the Aurora Public Library and Town Hall;
b. That private cannabis retail stores not be permitted within 150 metres of each
other.
4. That staff be authorized to review the Alcohol and Gaming Commissions of Ontario’s
proposed cannabis store locations and provide submissions within 15 days of notice of
the application;
5. That the Town Clerk provide written notice and a copy of this resolution to the Registrar
of the Alcohol and Gaming Commission of Ontario, in accordance with section 41(5) of
the Cannabis Licence Act, 2018;
6. That the Chief Administrative Officer and the Treasurer, or its designate, be authorized
to enter into any agreements in regard to intergovernmental funding relating to the
implementation of cannabis; and
7. That a copy of this resolution be forwarded to the Region of York and all lower tier
municipalities within York Region for their information.
Special Meeting of Council Agenda
Monday, January 21, 2019
Item 1
Page 18 of 18
The Corporation of The Town of Aurora By-law Number XXXX-19 Being a By-law to Confirm Actions by Council Resulting from a Special Meeting of Council on January 21, 2019.
The Council of the Corporation of The Town of Aurora hereby enacts as follows:
1. That the actions by Council at its Special Meeting of Council held on January 21,
2019, in respect of each motion, resolution and other action passed and taken by
the Council at the said meeting is, except where prior approval of the Ontario
Municipal Board is required, hereby adopted, ratified and confirmed.
2. That the Mayor and the proper officers of the Town are hereby authorized and
directed to do all things necessary to give effect to the said action or to obtain
approvals where required and to execute all documents as may be necessary in
that behalf and the Clerk is hereby authorized and directed to affix the corporate
seal to all such documents.
Enacted by Town of Aurora Council this 21st day of January, 2019.
Tom Mrakas, Mayor
Michael de Rond, Town Clerk
Special Meeting of Council Agenda Monday, January 21, 2019 Confirming By-law Page 1 of 1
Public Release
January 18, 2019
Town of Aurora
Additional Items to
Special Meeting of Council Agenda
Monday, January 21, 2019
7 p.m., Council Chambers
Revised Special Meeting of Council Agenda Index
Item 2 – CS19-004 – Proposed Private Cannabis Retail Stores in Aurora –
Additional Information
Public Release
January 18, 2019
Town of Aurora
Special Meeting of Council
Agenda (Revised)
Monday, January 21, 2019
7 p.m., Council Chambers
1. Approval of the Agenda
Recommended:
That the agenda as circulated by Legislative Services be approved.
2. Declarations of Pecuniary Interest and General Nature Thereof
3. Public Consultation
Note: The Public Consultation speakers list will be limited to Aurora residents, as
the Alcohol and Gaming Commission of Ontario will only consider comments from
Aurora residents regarding this matter.
4. Consideration of Items Requiring Discussion
1. CS19-001 – Proposed Private Cannabis Retail Stores in Aurora
Recommended:
1. That Report No. CS19-001 be received for information.
2. CS19-004 – Proposed Private Cannabis Retail Stores in Aurora –
Additional Information
(Added Item)
Recommended:
1. That Report No. CS19-004 be received for information.
Special Meeting of Council Agenda
Monday, January 21, 2019 Page 2 of 2
5. Confirming By-law
Recommended:
That the following confirming by-law be enacted:
XXXX-19 Being a By-law to Confirm Actions by Council Resulting from a Special
Meeting of Council on January 21, 2019.
6. Adjournment
Town of Aurora
Council Report No. CS19-004
Subject: Proposed Private Cannabis Retail Stores in Aurora – Additional
Information
Prepared by: Patricia De Sario, Town Solicitor
Department: Corporate Services
Date: January 21, 2019
Recommendation
1. That Report No. CS19-004 be received for information.
Executive Summary
This report provides additional information to assist Council with its decision of whether
to opt-out and prohibit private cannabis retail stores within Aurora t hat has become
available since Report No. CS19-001 was distributed to Council and made public on
December 21, 2018. This report also provides a summary of the comments received by
the public. Council needs to decide by resolution by January 22, 2019.
O.Reg 468/18, as amended, allows for 25 retail store aut horizations across the
province
O.Reg 468/18, as amended, places restrictions on retail store authorizations,
including that they will be issued only for stores that would be located in a
municipality that has a minimum population of 50,000 (provided that the
municipality has opted-in)
As a result of the limit on the number of retail store authorizations, there is the
same limit on the number of retail operator licences that may be issued
Feedback from the community has been gathered from multiple sources and
remains mixed
The Region has no position on whether its local municipalities should prohibit or
permit private cannabis retail stores within their municipalities, even though the
decision will impact the amount of funding that it will receive
Additional Items to Special Meeting of Council Agenda
Monday, January 21, 2019
Item 2
Page 1 of 53
January 21, 2019 Page 2 of 7 Report No. CS19-004
Background
Report No. CS19-001 discusses the legalization of recreational cannabis and provides
Council with information to consider in making its decision of whether to opt-out and
prohibit private cannabis retail stores within Aurora. Report No. CS19-001 contains
information that was available up to December 21, 2018. Additional changes to the
regulatory framework have been released and are set out in this report.
Amendment to O.Reg 468/18
Due to national supply shortages of cannabis, the province amended O.Reg 468/18,
being a regulation made under the Cannabis Licence Act, 2018 (the “Regulation”), to
provide for a temporary limit on the number of retail store authorizations issued before
April 1, 2019 to only 25. This limit will be in place until December 13, 2019, at which
time these sections that now form part of the Regulation will be revoked.
Analysis
O.Reg 468/18, as amended, allows for 25 retail store authorizations across the
province.
The amended Regulation also sets out five regions in the province (i.e. Toronto Region,
Greater Toronto Area (GTA) Region, North Region, West Region and East Region).
York Region is within the GTA Region along with Peel, Durham and Halton. Out of the
twenty-five (25) retail store authorizations to be issued, a maximum of six (6) retail store
authorizations would be allocated to stores located in the GTA Region.
O.Reg 468/18, as amended, places restrictions on retail store authorizations,
including that they will be issued only for stores that would be located in a
municipality that has a minimum population of 50,000 (provided that the
municipality has opted-in).
While the limit is in place, only one retail store authorization will be issued to the same
person, organization or affiliate. Further, no retail store authorizations will be issued to
a licensed producer or for a store that would be located in a municipality with a
population of less than 50,000. In the GTA Region, 17 municipalities have a population
of over 50,000, including Aurora. To date, only three (3) of these 17 municipalities have
opted-in (Ajax, Oshawa, Burlington) and the remaining five (5) municipalities, including
Aurora, will be making their decision on Monday, January 21st. Although Whitchurch-
Additional Items to Special Meeting of Council Agenda
Monday, January 21, 2019
Item 2
Page 2 of 53
January 21, 2019 Page 3 of 7 Report No. CS19-004
Stouffville has decided to opt-in and permit cannabis retail stores, it’s population is less
than 50,000 and therefore, it will not have a private cannabis retail store in this first
round.
The limitation on population is so that private cannabis retail stores are initially allocated
to larger communities to increase accessibility and thereby, assisting in combatting the
illegal market. In addition to these restrictions, the proposed location must still be within
a municipality that has opted-in to permit private cannabis retail stores within the
municipality.
As a result of the limit on the number of retail store authorizations, there is the
same limit on the number of retail operator licences that may be issued.
On January 11, 2019, the Alcohol and Gaming Commission of Ontario (the “AGCO”)
held an expression of interest (“EOI”) lottery to determine who may apply for the initial
twenty-five (25) retail operator licences. Only those EOI applicants selected may apply
for a retail operator licence and a retail store authorization. The application had to
identify one (1) of the five (5) regions in which the person or organization would like to
locate a cannabis retail store and each applicant was able to identify up to five regions
(one (1) per region). Out of 17,320 EOI applications submitted, 13,453 applications
identified the GTA Region for a proposed private cannabis retail store. The results of the
EOI lottery are posted on the AGCO website and s ix (6) applicants were selected for the
GTA Region, with a wait list of 20 other applicants.
Any selected applicant must still apply and go through the process discussed in Report
No. CS19-001 if they would like to operate a private cannabis retail store. They are
required to submit their retail operator licence applications by January 18, 2019,
together with a non-refundable fee of $6000.00 and a letter of credit in the amount of
$50,000.00. The AGCO wants to ensure that twenty-five (25) private cannabis retail
stores are operating by April 1, 2019, therefore, if not, the AGCO will draw on the letters
of credit submitted with the application as follows:
Date unopened Penalty
April 1, 2019 $12,500
April 15, 2019 $12,500
April 30, 2019 $25,000
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January 21, 2019 Page 4 of 7 Report No. CS19-004
Feedback from the community has been gathered from multiple sources and
remains mixed.
The public have been given several venues for sharing their thoughts on opting in or out
of having private cannabis retail stores in Aurora. In addition to residents delegating at
the Special Council Meeting on January 21, residents have been able to share their
thoughts on the issue online and by phone. The intention of gathering the feedback is
to provide a snapshot of comments and concerns of the community and is not intende d
to act as a definitive public referendum on the matter.
Only 13 phone calls have been logged by Access Aurora relating to the consideration of
whether private cannabis retail stores should be permitted in Aurora.
Six (6) residents inquired with general questions but provided no opinion
One (1) caller noted support for opting in
One (1) caller noted support for opting out
Five (5) inquiries were received from businesses looking for information on
whether the Town will allow retail outlets or not.
The Town also utilized the online public consultation tool, PlaceSpeak, to solicit
thoughts from Aurora residents on whether or not they were in favour of opting in or not.
PlaceSpeak uses geo-verification technology which increases authentication and makes
it less vulnerable to bots and fake accounts. The tool is also more likely to capture the
opinions of community members who may not use Facebook or feel uncomfortable
vocalizing their opinions in such a public forum. While the consultation had more than
860 views and 182 comments, there were 137 individuals who stated their opinions.
Twenty four were in favour of private cannabis retail stores and 75 were against.
Mayor Mrakas posted a poll on Facebook which generated approximately 2,300 votes
and 108 comments (as of January 15, 2019). The results of the poll indicated that 1,104
Facebook users were in favour of private cannabis retail stores in Aurora and 1,196
were against. While the Facebook poll did not allow multiple votes per user, the poll was
not restricted by location so users outside of Aurora were free to participate. In addition,
it is possible, indeed likely, that there is some duplication of feedback across platforms.
Staff are cognizant of the fact that public feedback may be influenced by a variety of
factors. With the societal stigma around cannabis use, some members of the
Additional Items to Special Meeting of Council Agenda
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January 21, 2019 Page 5 of 7 Report No. CS19-004
community may feel reluctant to publicly share their opinions. In contrast, there may be
less stigma associated with publicly voting in favour of opting out.
Attached to this report is a summary of the results.
The Region has no position on whether its local municipalities should prohibit or
permit private cannabis retail stores within their municipalities.
The legislation requires that the local municipality decide whether to prohibit private
cannabis retail stores within its municipality. As such, the Region has stated that it has
no position on this issue.
The Region’s Medical Officer of Health and Regional Solicitor presented to Regional
Council on December 13, 2018. The presentation is attached to this report and
provides information on the health risks of cannabis.
According to an allocation table posted on the Ministry of Finance’s website
(https://www.fin.gov.on.ca/en/budget/oclif/allocation.html), the Region will receive a first
payment of $478,284.00. The second payment to the Region will depend upon the
decisions of its local municipalities.
Advisory Committee Review
None.
Legal Considerations
Refer to Report CS19-001.
Financial Implications
Refer to Report CS19-001.
Communications Considerations
Communications is aware that this is a contentious issue in the community. Following a
Council decision at the January 21, 2019 meeting, the Town will communicate the
decision to opt-in or out via social media. The following morning, a formal media release
will be sent out and posted to the News and Notices section of the website.
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January 21, 2019 Page 6 of 7 Report No. CS19-004
Should Council vote in favour of opting in and permit private cannabis retail stores in the
Town of Aurora, Communications will update the Cannabis section of the Town’s
website with comprehensive information, particularly as it relates to the monitoring and
enforcement of retail outlets and how concerns may be addressed.
Link to Strategic Plan
Enabling a diverse, creative and resilient economy by promoting economic opportunities
that facilitate the growth of Aurora as a desirable place to do business and supporting
small business and encouraging a more sustainable business environment.
Alternative(s) to the Recommendation
None.
Conclusions
Council needs to decide by January 22nd, 2019 as to whether they would like to permit
private cannabis retail stores within the Town of Aurora.
Attachments
Attachment 1 – Online Cannabis Consultation – Summary of Results
Attachment 2 – Region Presentation
Attachment 3 – Municipalities in the GTA Region and Toronto that have opted-out/in
Attachment 4 – Amended resolution to opt-in and permit private cannabis retail stores
Previous Reports
CS19-001 - Proposed Private Cannabis Retail Stores in Aurora
Additional Items to Special Meeting of Council Agenda
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Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 7 of 53
ONLINE CANNABIS CONSULTATION
S U M M A R Y O F R E S U L T S
In order to gauge the community's feelings on
allowing private cannabis retail stores in Aurora,
Corporate Communications ran an online community
consultation on PlaceSpeak. In this consultation staff
asked residents to share their thoughts on private
recreational cannabis retail stores in Aurora. Below
are the results, along with a cross-section of
comments received.
In addition to this consultation, Mayor Mrakas
conducted a Facebook Poll on the topic, the results
of which are shared at the end of this document.
SUMMARY
FOR
RETAIL
OUTLETS
Of the 137 participants in this consultation,
24 individuals said they were for opting-in for
private retail cannabis stores in Aurora, while
75 individuals thought that Aurora should
opt-out. There were four individuals who were
against legalization in general and the remaining
35 participants subscribed to the thread to view
the discussion, but did not comment.
45 282
PARTICIPANTSDAYSUNIQUE VIEWS
137
COMMENTS
182
AGAINST
RETAIL
OUTLETS
24
75
Attachment 1
Additional Items to Special Meeting of Council Agenda
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COMMENTS
Below is a cross section of comments received from Aurora residents
throughout the consultation.
IN FAVOUR OF PRIVATE CANNABIS RETAIL STORES IN AURORA
Additional Items to Special Meeting of Council Agenda
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AGAINST PRIVATE CANNABIS RETAIL STORES IN AURORA
Additional Items to Special Meeting of Council Agenda
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Additional Items to Special Meeting of Council Agenda
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ONLINE CANNABIS CONSULTATION
SUMMARY OF FACEBOOK POLL
FOR
RETAIL
OUTLETS
18 2300
COMMENTSDAYSVOTES
108
AGAINST
RETAIL
OUTLETS
1104
1196
Additional Items to Special Meeting of Council Agenda
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Dr. Karim KurjiMedical Officer of Health
Joy Hulton
Regional Solicitor
CANNABIS: LEGISLATIVE
UPDATES AND BOARD OF
HEALTH RESPONSIBILITIES Attachment 2Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 13 of 53
•Health impacts of cannabis
•Public Health Standards
•Legislative updates
•Opting in/out
•Smoking and Consumption
Bylaws
•Financial Implications
PRESENTATION OVERVIEW Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 14 of 53
INFORMATION ABOUT CANNABIS
Dr. Karim Kurji, Medical Officer of Health Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 15 of 53
•600 compounds, 104 cannabinoids*
•Two most significant cannabinoids: THC and CBD
WHAT ARE THE INGREDIENTS OF CANNABIS?
THC CBD
Chemical compound Delta-9-Tetra hydrocannabinol Cannabinol
Side effects May be harmful Possibly helpful
Potency (1975)3%3%
Potency of illegal
products (2018)
25-35%<0.1%
Potency of legal
products(2018)**0-27%0-17%
Types Fresh and dried cannabis, cannabis oils,
plants and seeds, hash, hash oil
*US National Academy of Sciences, Engineering and Medicine (2017) https://www.nap.edu/read/24625/chapter/1
**Potency of dried flower, oil and pre-rolled products sold at the Ontario Cannabis Store Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 16 of 53
WHAT ARE THE SIDE EFFECTS OF CANNABIS?
Higher Risk
May lead to
psychiatric
disorders
Impairs impulse control, working memory, decision-making,
executive function, and academic performance
THC interferes with maturation
processes in the developing
brain
Primes the individual for later
psychosis
•Adolescence
•Higher THC content
•Frequency
•Synthetics
•History of psychosis
•Pregnancy Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 17 of 53
SMOKE-FREE ONTARIO ACT, 2017 AND
ONTARIO PUBLIC HEALTH STANDARDS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 18 of 53
WHAT HAS CHANGED?
2006
•Protection from second-hand
tobacco smoke in enclosed
workplaces, enclosed public
places, school properties,
hospitals and some outdoor
recreational areas
•Protection from second-hand tobacco
and cannabis smoke with added
protection from second-hand vapour
from e-cigarettes
•Enhanced protection from smoke and
vapour in several additional outdoor
areas
•Disclosure of all convictions of tobacco
and e-cigarette sales to minors on
Public Health’s website
2017 Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 19 of 53
WHAT HAS CHANGED, cont’d
2006
•Access to tobacco products
restricted to 19 years of age
and older
•Display, handling and
promotion restrictions for
retailers who sell tobacco
•Tobacconist retailer
registration administered by
the Ministry of Health and
Long-Term Care
•Access to tobacco products and
vapour products restricted to
persons 19 years of age and older
(now under one Act)
•Similar display and handling
restrictions added for retailers that
sell vapour products (promotion is
permitted)
•Tobacconist retailer registration
administered by the local health unit
•New specialty vape store registration
created and administered by the
local health unit
2017 Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 20 of 53
•Mandatory annual inspections of York Region’s 500+
tobacco vendors and 400+ vapour product retailers by
Public Health
•Inspections are carried out by 6 Tobacco and
Electronic Cigarettes Control Officers, funded by the
Ministry
•Inspections resulted in 727 warnings being issued and
308 charges being laid
WHAT DOES ENFORCEMENT LOOK LIKE IN YORK REGION? Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 21 of 53
WHAT DID INSPECTION LOOK LIKE IN 2018?
Types of Inspections Number*
Total number of required annual inspections 2591
•Youth access inspections of tobacco vendors (2 x
550)
1100
•Youth access inspections of vapour product retailers 431
•Display, handling and promotion inspections of
tobacco vendors
550
•Display, handling and promotion inspections of
vapour product retailers
431
•Inspections of secondary schools 79
Total number of inspections completed** 3705
*Totals as of November 20, 2018
**Includes re-inspections and complaint inspections Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 22 of 53
•Initiatives to provide education and raise awareness on the
health effects of cannabis use, risks and promote lower-
risk cannabis use guidelines
•Provide school boards with curriculum support, resources
and assist in delivery of peer-led modules on alcohol,
cannabis and other drugs
•Education workshops provided to community partners and
stakeholders (e.g., Emergency and Transitional Housing
staff and Children’s Aid Society)
WHAT ARE WE DOING TO RAISE AWARENESS? Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 23 of 53
LEGISLATIVE UPDATES
Joy Hulton, Regional Solicitor Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 24 of 53
•The Ontario Legislature passed the Cannabis Statute Law
Amendment Act, 2018 on October 17, 2018, which:
•amends the renamed Cannabis Control Act, 2017
•enacts the Cannabis Licence Act, 2018
•amends the Ontario Cannabis Retail Corporation Act,
2017 and the Liquor Control Act
•amends the Smoke-Free Ontario Act, 2017 and makes
a consequential amendment to the Highway Traffic Act
ONTARIO’S CANNABIS LEGISLATION Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 25 of 53
The following regulations have an impact on
municipalities:
•Retail store authorization and siting:
•O. Reg. 468/18 (General) under the Cannabis
Licence Act, 2018
•Smoking prohibitions:
•O. Reg. 268/18 (General) under the Smoke-
Free Ontario Act, 2017
ONTARIO’S CANNABIS REGULATIONS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 26 of 53
•Location of cannabis retail stores
•Enforcement of restrictions on use in prohibited locations
•Lack of provincial regulation of home cultivation
•Complaints about home cultivation, public use and
intoxication, and odour
•Implications in two-tier municipalities
•Funding, training and lack of resources
CANNABIS LEGALIZATION - MUNICIPAL CONCERNS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 27 of 53
•Reports to Municipal CAO’s group
•Goal: work collaboratively to establish a common
approach to cannabis legalization
•Comprised of staff from municipalities within York
Region and York Regional Police representing:
YORK REGION – MUNICIPAL CANNABIS WORKING GROUP
•Building Standards
•Bylaw Enforcement
•Fire
•Legal
•Policing
•Prosecutions
•Public Health Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 28 of 53
OPTING IN / OPTING OUT Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 29 of 53
•To opt-out of hosting cannabis retailers a municipality must:
•Pass a resolution; and
•Notify the Alcohol and Gaming Commission of Ontario
within 3 business days of passing resolution and no later
than January 22, 2019
•If a municipality fails to notify the AGCO of a resolution to opt-
out, by law, it will be considered to have opted in
•A decision to opt-in is not reversible
•Upper-tier municipalities cannot pass a resolution to opt-in or
opt-out
OPTING IN / OPTING OUT Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 30 of 53
The Alcohol and Gaming Commission of Ontario’s (AGCO) must:
•Review and approve siting and authorization of retail stores and
operators
•Ensure retail stores are not located <150m from a school,
including private schools
•Ensure applicant has confirmed location complies with local
zoning bylaws
•Receive and review public input
•Conduct inspections of retail stores
RETAIL STORES – APPLICATION PRCESS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 31 of 53
•Municipalities have no planning or business licensing
authority over these retail stores but will have 15
calendar days to provide feedback on proposed retail
store authorization
•The AGCO will provide notice:
•by displaying a notice at the location of the
proposed cannabis retail store specified in the
application; and
•by posting a notice on the Commission’s website
RETAIL STORES - APPLICATION PROCESS
The AGCO will not provide municipalities with direct notice of
applications Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 32 of 53
Submissions to the AGCO must be:
•from the municipality, and, if the municipality is a
lower-tier, the upper-tier it is part of
•from residents of the municipality of the proposed
store location
•limited to matters of Public Interest as defined in the
regulation
•submitted no later than 15 calendar days from first
notice
RETAIL STORES - AGCO PROCESS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 33 of 53
Public Interest is defined in the regulation as:
1.Protecting public health and safety
2.Protecting youth and restricting their access to
cannabis
3.Preventing illicit activities in relation to cannabis
RETAIL STORES - AGCO PROCESS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 34 of 53
•Given the restrictions on public/municipal input into
store applications, AMO recommends that municipal
councils that opt-in also adopt a “Municipal Cannabis
Retail Policy Statement” to address local concerns
•Municipalities may also consider designating senior
staff to respond to AGCO notices of application
•The Region and local municipalities should consider
how Regional comments may be provided in response
to applications
RETAIL STORES – MUNICIPAL RESPONSE Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 35 of 53
•Adopt a council resolution to opt in or out and submit
to the AGCO by January 22, 2019
•If opting in, develop a Municipal Policy Statement
outlining municipal concerns/comments and submit to
the AGCO with request that it be considered as Public
Interest
•Delegate staff to respond to applications
•Develop a framework for Regional input into local
applications
RETAIL STORES – NEXT STEPS FOR MUNICIPALITIES Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 36 of 53
SMOKING AND CONSUMPTION BYLAWS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 37 of 53
•Under Bill 36, the SFOA, 2017 was amended to align
public use of tobacco and cannabis
•In York Region, Tobacco and Electronic Cigarettes
Control Officers enforce the SFOA
•Offences relating to possession of cannabis remain
matters for police enforcement
MUNICIPAL ENFORCEMENT - SMOKE -FREE ONTARIO ACT, 2017 (SFOA) Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 38 of 53
ENFORCEMENT OF SMOKING RESTRICTIONS
Public Places1
(includes parks,
public facilities)
Workplace Private
Residence
Vehicle
(Car or
Boat)
Illicit Sales
Municipal
Bylaw
Enforcement
Yes
Where there are
bylaws
controlling the
smoking of
cannabis
Yes
Where bylaws
include retail,
commercial
and business
premises
No No No
Police Yes 2 Yes 2 No Yes 3 Yes 4
Public
Health SFOA
Tobacco and
Electronic
Cigarettes
Control
Officers
Yes
Playgrounds,
sports areas,
hospital, school
and community
centre
properties
Yes
Enclosed
workplaces,
public places
& restaurant
patios
No
Except for
common
areas of
multi-unit
residences
Yes
Only
workplace
vehicles
(e.g fleet)
No –
cannabis &
contraband
sales
Yes –
tobacco and
e-cigarette
sales to
minors
1May be subject to stricter local municipal bylaws
2Where police intervention is required
3SFOA delegates this to the Police
4Cannabis Control Act delegates this to the police Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 39 of 53
•Bill 57, introduced in the Ontario legislature on
November 15, 2018, and received Royal Assent on
December 6, 2018
•Amends Section 115 of the Municipal Act, 2001 to:
•include cannabis; and
•clarify that “smoking” includes the holding of lighted
tobacco or cannabis the consumption of tobacco or
cannabis through the use of an electronic cigarette
•Bylaws enacted under section 115 do not apply to
public highways
SMOKING AND CONSUMPTION BYLAWS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 40 of 53
•With the inclusion of cannabis in section 115 of the
Municipal Act, 2001 municipalities have the express
authority to enact stricter bylaws to regulate smoking
of tobacco and cannabis in public places
•Stricter provisions in municipal bylaws prevail over the
restrictions in the SFOA, 2017
MUNICIPAL ENFORCEMENT – MUNICIPAL SMOKING BYLAWS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 41 of 53
•Regional and local Councils may want to consider a
consistent Region-wide approach to public
recreational cannabis consumption
•This could be achieved in a variety of ways:
•Regional bylaw that can be enforced locally
•Local municipalities adopt a model bylaw
•Regulate use of facilities (i.e. transit facilities)
•Consider local enforcement using administrative
penalties
SMOKING AND CONSUMPTION BYLAWS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 42 of 53
FINANCIAL IMPLICATIONS Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 43 of 53
•Many Local and Regional municipal programs are
directly impacted by the sale and use of cannabis
regardless of the existence of retail stores
MUNICIPAL CONCERNS - COSTS
•Business licensing*
•Building inspection
•Bylaw enforcement
•Fire services
•Long-term care
•Parks
•Paramedic services
•POA Courts
•Police
•Property Standards
•Public Health
(enforcement,
education)
•Social Housing
•Transit
•Zoning
* Does not apply to retail stores Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 44 of 53
•The Province is committed to providing municipal
governments with $40 million from its share of the
federal excise tax on cannabis over two years
•Should Ontario’s revenue over the first two years
exceed $100 million, the Province will provide 50% of
the surplus only to those municipalities that have not
opted-out
ONTARIO CANNABIS LEGALIZATION IMPLEMENTATION FUND Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 45 of 53
•Default funding split between upper-tier and lower-tier
municipalities is 50/50; municipalities are allowed to
adjust the split
•Peel Region reached an agreement with Brampton
and Mississauga whereby Peel will keep 75% of the
revenue allocated, in recognition that the costs
associated with legalization will be disproportionately
borne by the regional government
•Upper-tier municipality funding allocation will be
dependent on opt-out decisions made by the lower-tier
municipalities
CANNABIS REVENUE SHARING – FUNDING SPLIT Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 46 of 53
CANNABIS REVENUE SHARING – DISBURSEMENT SCHEDULE
•First payment allocation notice was received – the Region will
receive $478,284 based on 2018 MPAC household numbers
•Opted-out municipalities will also receive their funding allocation
from the 1st payment, but only $5,000 as the 2nd payment
• 1
st $15 million
•ALL municipalities will receive funds on a perhousehold basis
• York Region will receive $478,284
Early January 2019
Prior to January 22 Opt-Out Deadline
• 2nd $15 million
•Opt-In municipalities will receive funds on a perhousehold basis
•Opt-Out municipalities will only receive $5,000each
2019
Following Municipal
Opt-Out Decisions byJanuary 22
•Remaining $10 million for unforeseencircumstances
• Priority will be given to municipalities not opted-out
3rd Payment
Disbursement date TBD Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 47 of 53
ESTIMATED CANNABIS LEGALIZATION EXPENDITURES IN YORK REGION
* Estimates prepared in early 2018 by Regional staff. Regional costs include public health, paramedic services,
social services, legal, and courts. Local municipal includes fire, inspections, building permits, parks and
recreation.
$M Share
Police cost at full implementation $4.5
Other Regional Costs* $2.4
Regional Costs $6.8 62%
Local Municipal* $4.2 38%
Total $11.0 100%
Estimated annual cost for the Region and its local municipalities:Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 48 of 53
York Region is expected to receive between $0.5 million and $1.3
million* over two years, subject to municipal opt-out decisions
•To date, Markham and Richmond Hill have passed by-laws to
forbid recreational smoking or vaping cannabis on public
property. However, decisions to opt-out of allowing cannabis
retail stores are yet to be made
•Assuming no local municipality opts out: estimated $1.3 million
•Assuming all local municipalities opt-out: estimated $0.5 million
ESTIMATED CANNABIS LEGALIZATION EXPENDITURES IN YORK REGION
* Based on 2018 MPAC household numbers. York Region's first payment of $478,284 is based on the actual 2018-
2019 First Payment- Allocation Notice from MoF. Lower-tier allocations are estimated by staff.
Funding offered for cannabis legalization is <10% of costs Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 49 of 53
1.Adopt a council resolution to opt in or out and submit
to the AGCO by January 22, 2019
2.If opting in, develop a Municipal Policy Statement
outlining municipal concerns/comments and submit
to the AGCO with request that it be considered as
Public Interest
3.Delegate staff to respond to applications
4.Develop a framework for Regional input into local
applications
NEXT STEPS FOR MUNICIPALITIES Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 50 of 53
Dr. Karim Kurji, Medical Officer of Health
Dr. Karim.Kurji@york.ca, ext. 74012
Joy Hulton, Regional Solicitor
Joy.Hulton@york.ca, ext. 74147
THANK YOU Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 51 of 53
Attachment 3 – Municipalities in the GTA Region and Toronto that have opted-out/in
*As of January 16, 2019
Additional Items to Special Meeting of Council Agenda Monday, January 21, 2019Item 2 Page 52 of 53
Attachment 4
Proposed resolution to opt-in and permit private cannabis retail stores
1. That Report No. CS19-001 be received;
2. That Council of The Corporation of the Town of Aurora opts-in and permits
cannabis retail stores within the Town of Aurora;
3. That Council request the AGCO to consider the following restrictions as a matter
of public interest when reviewing retail store authorization applications for
proposed stores within the Town of Aurora:
a. That private cannabis retail stores not be permitted within 150 metres from
daycares, nurseries, parks, group homes or addiction and counselling
facilities, the Aurora Community Centre, the Aurora Family Leisure
Complex, the Stronach Aurora Recreation Complex, the Aurora Public
Library and Town Hall and any other similar public gathering uses;
b. That private cannabis retail stores not be permitted within 150 metres of
each other.
4. That staff be authorized to review the Alcohol and Gaming Commissions of
Ontario’s proposed retail store authorization applications for cannabis stores
located in Aurora and provide submissions within 15 days of notice of the
application;
5. That the Town Clerk provide written notice and a copy of this resolution to the
Registrar of the Alcohol and Gaming Commission of Ontario, in accordance with
section 41(5) of the Cannabis Licence Act, 2018;
6. That the Chief Administrative Officer and the Treasurer, or its designate, be
authorized to enter into any agreements in regard to intergovernmental funding
relating to the implementation of cannabis; and
7. That a copy of this resolution be forwarded to the Region of York and all lower
tier municipalities within York Region for their information.
Additional Items to Special Meeting of Council Agenda
Monday, January 21, 2019
Item 2
Page 53 of 53