Legalizing Marijuana In Canada Has Many Business Considerations, Says Lawyer

Katelyn Baker

Well-Known Member
In one episode of HBO's hit show The Wire, Stringer Bell, the brutal head of a heroin drug cartel in Baltimore, insists that his meetings about the day-to-day operations of the "game" run in strict compliance with Robert's Rules of Parliamentary Procedure, a book first published in 1876 that gives guidelines for fair and orderly meetings.

Indeed, Bell's street corner pushers were required to be recognized by the chair before speaking.

At the time, the scene seemed outlandish. However, perhaps it was just ahead of its time.

Recently, the Canadian government announced at the United Nations that it will table legislation in the spring of 2017 to legalize the recreational use of marijuana.

This will create a cash cow.

If marijuana is legalized federally in the U.S., the industry will eclipse an estimated $35 billion by 2020. This is approximately three times the revenue of the NFL, according to a 2014 article in the Washington Post.

In Canada, the business will top $1 billion, according to the Financial Post. This is many, many, many times the annual revenue of the CFL.

Issues surrounding marijuana will shift from the courtroom to the boardroom. As people prepare to take part in this soon-to-be billion-dollar industry, here are some legal considerations.

Take a look at current regulatory requirements as set out in the Marijuana for Medical Purposes Regulations (MMPR) to provide insight.

The MMPR prohibits growing in a residential dwelling.

The MMPR requires that licensed producers pass criminal reference checks, ensure that security measures are in place at their premises and comply with manufacturing protocols. The process is highly technical and demanding.

As of March 31, 2015, of the 1,284 applications received, only 30 applicants had been approved as licensed producers, with over 320 applications in process.

However, in February of 2016, in Allard v. Canada, a federal court struck down MMPR as unconstitutional.

The court explained that the regulations were unconstitutional in part because their effect was to limit supply, which, in turn, increased the cost of and decreased access to marijuana. Canada's health minister has acknowledged that the federal government will need to address this concern in any future regulatory system.

In addition, the court in Allard noted that, unlike other drugs, there is no risk of a lethal dose of marijuana.

The decision highlighted that cited public safety concerns of mould, fire and criminal risks at the site of operation were largely unproven.

Now, the regulations regarding production of legalized marijuana will certainly be less stringent than the MMPR. However, potential marijuana producers should use the MMPR to help identify the issues they should be thinking about.

Another consideration for prospective marijuana businesses is to have a municipal lawyer on speed dial.

Many local municipalities have classified medical marijuana growing as an agricultural or industrial activity and have put zoning barriers in place.

Dispensaries and commercial operations allowing smoking will also face nuisance and zoning issues. There have been several court cases in Canada that deal with nuisance complaints surrounding marijuana smoke in residential situations.

It would also be advisable for potential pot producers to consult with an expert in manufacturing and production processes under the Food and Drug Act. Legalization will no doubt put a great focus on maintaining consistency of production.

Legislators will also likely take cues from the regulation of other legal vices, such as alcohol and tobacco. For example, under the Tobacco Act, tobacco companies and their retailers are prohibited from promoting cigarettes to young persons or associating cigarettes with a "way of life such as one that includes glamour, recreation, excitement, vitality, risk or daring."

Packaging will also be regulated. Any packaging aimed at minors will likely be banned. For example, in Colorado, regulators have prohibited manufacturers from using cartoon characters or designing products to look like candies.

Finally, given that marijuana can be consumed in edibles, expect limits on the potency of baked goods. For example, current Colorado regulations require that all edible products clearly state the amount of THC in each serving.

Although it is unlikely that heroin will be legalized anytime soon, Stringer Bell was prescient regarding pending order and structure to the marijuana game. The business will be regulated like other billion dollar industries. Currently, the specifics of this regulation are unknown — but they are not unknowable. If business owners consider the key issues now, they will be primed to move when legalization occurs.

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News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Legalizing Marijuana In Canada Has Many Business Considerations, Says Lawyer
Author: Tim Morgan
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Website: The Mississauga News
 
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