BC: Debate Over Cannabis Dispensary License Lights Up Council

Ron Strider

Well-Known Member
After City of Grand Forks heard a presentation on the potential legal ramifications of having a dispensary bylaw last week, questions arose from the gallery on the city's involvement in the recent RCMP action towards dispensaries in the city.

Dave Smith from Smithplan Consulting presented the report to council on the legal consequences and actions the city could take on dispensaries within city limits, which was requested at the March 13 Committee of the Whole.

The report provided background information, and noted that many of the regulations surrounding cannabis are "outside of local government jurisdiction."

"Any regulatory frameworks set up today, may well need to be adjusted, changed revised or tweaked," the report notes.

The report also outlines the differences between medical and recreational use and the legal parameters for each. Medicinal marijuana, while tightly controlled, is legal, while recreational use is still illegal and marijuana is a substance controlled under the Controlled Drugs and Substances Act.

The report also notes the recent federal government announcement that marijuana will be legalized by July 18, 2018.

In other jurisdictions, local governments have taken action to control dispensaries through limiting the availability through bylaws, regulating land use, setting fees and establishing separation distances. Some municipalities that have done this successfully are Vancouver and Victoria, as well as Squamish and Nelson, the report notes.

Following the report council took questions from the audience. Former dispensary owner Teresa Taylor asked questions to council about the city's decision to deny her dispensary – Herbivore Cannabis – a business license.

"I applied for a license ... I was denied my license because I was quoted in the newspaper saying I was operating in advance of the law, which is me speaking openly about the industry we are in," Taylor said. "When it was denied that letter was sent to the RCMP and within weeks they attended my business."

Taylor said she felt it was discriminatory, given that another business in town held a general retail business license while operating a dispensary. Taylor also said her business license denial letter was copied to RCMP Sgt. Jim Fenske and questioned whether that was normal practice.

In response to a question from the Gazette, Grand Forks mayor Frank Konrad said he could not confirm if the letter was copied to the RCMP but would be "dismayed" if it had. Interim Chief Administrative Officer (CAO) Diane Heinrich also said she could not confirm whether the letter had been copied to Grand Forks RCMP.

"That is not our normal practise to do that, not at all. Like I mentioned earlier, this is our business within the corporation. We do not step into theirs and we do not instruct them what to do," Konrad said. "To the best of my knowledge and I trust in the organization and the staff that this would not have occurred. That would be a form of interference into [RCMP] business."

After a brief aside with Deputy Manager of Operations Cavan Gates, Heinrich then brought it to Konrad's attention the letter had been sent to the RCMP. Heinrich said to Konrad that it was unclear who had copied the letter to RCMP.

In response to more questions from the Gazette as well as Les Johnson, who operates GFTV, Konrad said he felt "too much" was being made of whether the denial of business license letter was sent to the RCMP and noted it was the policy of the city to comply with RCMP requests.

"It has no relevance on this topic at all. If the RCMP requested, we are not obligated, but why would we not? If that is the request, that does not mean it was an attempt to [sway] them. I think there is more read into this than necessary. We have complied on normal basis," Konrad said. He also mentioned an in-person conversation between himself, former CAO Doug Allin and Fenske where the subject of the business license arose.

Heinrich said the city could investigate the matter and noted that staff would not have sent the letter to Fenske "out of the blue."

Taylor provided the Gazette with a photograph of the letter advising her the business license had been denied; at the bottom of the letter dated Jan. 18, 2017 on city letterhead, it read "cc: Frank Konrad, Doug Allin, Jim Fenske."

Taylor again stated she felt it was unfair that because she was open about her intention to operate a dispensary she was denied a license.

"Once you became aware the other business is selling cannabis you can revoke their license but are choosing not to do so," Taylor said. She cited the Medicine Tree's appearance at the March Committee of the Whole meeting and comment from Medicine Tree director Jim Leslie at the meeting that the Medicine Tree would be providing mail-order service.

Coun. Colleen Ross said she felt it was unfair that Taylor was denied a license, to which Konrad said council cannot get involved in the issuing of licenses.

"I think that is unfair and that is my position as a city councilor," Ross said. "I would have liked to see Teresa [Taylor] get her license and I think she has been transparent. I am disappointed in the way this has been handled."

Konrad reiterated that his position as mayor and Chief Executive Officer of the city was that the city cannot issue a license to an illegal business, and would not support a dispensary bylaw because of the legal challenges that could arise.

"We are not allowed to issue a license to an illegal business because we then become in effect accessories to this criminal act. The corporation cannot do that," he said. He also said he was not in opposition to medicinal marijuana and recognized its potential benefits, but insists the city work within the law.

"You are asking [us] to endorse something that is illegal, and while I am CEO I will not make that recommendation to council. We have to work within the black and white parameters of the law," he continued.

Konrad said the issue was that Taylor had "incriminated" herself in the media prior to a license being issued.

"Council does not get involved in business licenses. Before Ms. Taylor went to the media everything as working fine. It was not broken so why did it have to get fixed?"

In response, Taylor said it was "ludicrous" that she was being punished for "being up front" about her business and opening a competing dispensary.

"I cannot believe you are saying this it is ludicrous. It was fine when there was a monopoly but then I went and opened my big mouth and it's my fault," she said.

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Full Article: Debate over cannabis dispensary license lights up council - Grand Forks Gazette
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