DATE: May 12, 2014 REPORT NO. CD TYPE OF REPORT CONSENT ITEM [ ] ITEM FOR CONSIDERATION [ X ]

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1 DATE: May 12, 2014 REPORT NO. CD TO: FROM: Chair and Members Committee of the Whole Community Services Gregory Dworak, General Manager Community Services 1.0 TYPE OF REPORT CONSENT ITEM [ ] ITEM FOR CONSIDERATION [ X ] 2.0 TOPIC Changes to Federal Marihuana for Medical Purposes Regulations (MMPR) and Formal Notice Requirement for the City of Brantford 3.0 RECOMMENDATION A. THAT Staff Report CD BE RECEIVED for information; and, B. THAT the municipal notification protocol referred to in Staff Report CD BE ADOPTED and IMPLEMENTED when notice is received by City staff by an applicant seeking a medical marihuana license from Health Canada. 4.0 PURPOSE The purpose of this Report is to provide basic information to the Committee of the Whole and Council respecting new Federal Regulations for Medical Marihuana access. Under the new regulations, users of medical marihuana will be supplied by licensed producers only. In anticipation of these changes it is recommended that the Chief Building Official be the local point of contact for the City of Brantford with applicants seeking to establish commercial medical marihuana production. Staff is also investigating the appropriate zoning for this use and will report back at a later date.

2 Report No. CD May 12, 2014 Page BACKGROUND Health Canada has introduced new regulations for Marihuana for Medical Purposes (MMPR). This new legislation took effect April 1, Under the MMPR, a prospective producer applies to Health Canada for a license. The license requirements are extensive and will result in medical marihuana production being undertaken in a regulated and professionalized manner. They include measures such as: 1. Must be grown indoors and not permitted in single family dwellings; 2. A complex on-site security system for the facility; 3. A detailed description of how the medical marihuana is handled, including the associated activities (i.e. disposing of waste from plant, weight of production and residual of the plant, inventory); 4. A restriction on the maximum quantity of dried medical marihuana to be produced per year; and, 5. The requirement to provide written notice to the municipality. Regarding the last item, under the federal Marihuana for Medical Purposes Regulations (MMPR) individuals or companies applying to Health Canada to establish commercial medical marihuana production facilities must, as part of their application, provide written notice to local authorities that they are submitting an application (Appendix A). The content of the notice must include the applicant s name and address of the site and building(s) within which medical marihuana will be produced. This notice must be sent to: The local government (municipality); The local fire authority; and, The local police force or RCMP detachment responsible for providing policing services. Notice must be also provided to local authorities within 30 days of the issuance, renewal, amendment, suspension, reinstatement or revocation of a Health Canada medical marijuana producer s license. 6.0 CORPORATE POLICY CONTEXT Community Strategic Plan High Quality of Life and Caring for all Citizens Brantford will be recognized as a healthy community, one that promotes and enables the well-being of its citizens and supports access of all citizens to a full range of health and community services.

3 Report No. CD May 12, 2014 Page INPUT FROM OTHER SOURCES Discussions between Community Services, Legal Services, Brantford Police Services and the Fire Department have occurred. A meeting with the surrounding municipalities regarding consistent standards and best practices has also occurred. In addition staff is reviewing the actions of other municipalities, most notably the City of Windsor, Norfolk County, Municipality of Chatham-Kent, City of Ottawa and the City of Hamilton. There are divergent opinions across these municipalities as to whether this use should be considered as an industrial use or an agricultural use. 8.0 ANALYSIS 8.1 Notification The City of Brantford has received inquiries from several prospective licensees of their intent to become a licensed producer with Health Canada. Licensed producers are required to notify their local government, local police and local fire official of their intention to apply to Health Canada. Licensed producers must comply with all federal, provincial and municipal by-laws, including Municipal zoning by-laws and Provincial building codes. Health Canada has not specified precisely to whom in the local government the required notice should be directed, other than to a senior official. In order to establish a notification protocol within the City of Brantford, staff recommend that when a notice advising of intent to seek a license to establish, renew, dismantle, etc. a medical marihuana production facility under the MMPR is received by anyone at the City of Brantford, a copy ought to be forwarded immediately to the Chief Building Official. The Chief Building Official will send an acknowledgement to the applicant on behalf of the municipality which will: 1. Advise that in addition to complying with the federal regulations, they must comply with municipal and provincial legislation, including the Building Code Act and Regulations, and the Planning Act (Zoning By-law and Site Plan Control Approval); and, 2. Provide information on points of contact within the City for information on each of these matters. 8.2 Building and Site Requirements There are a number of Health Canada requirements for both the buildings and the site:

4 Report No. CD May 12, 2014 Page 4 a. Production must be located inside a building and is prohibited in a residential dwelling. It may be permitted in a greenhouse if the security measures are appropriate/approved by Health Canada; b. There is no retail sales permitted on site. The product is shipped from the producer by a secured shipper (Canada Post); c. There is a sanitation program which details the handling of the product as well as the disposal and the cleaning of the equipment and premises; d. The site and restricted areas must have a physical security barrier to prevent unauthorized entry; and, e. Security includes: Controlled access at all times to individuals who are required to work at the site; A 24/7 visual and sound recording system on the whole site, including the area where the substance is located; A security surveillance system which would detect unauthorized people entering or trying to enter the site/building; Individuals monitoring the security and surveillance systems would respond to incidents and record the incident; and, The identity of every person entering or exiting the facility must be documented. 8.3 Zoning To determine the appropriate zoning for this type of use and clarifying building permit issues, staff will be undertaking the following and reporting back to Council: 1. Conducting a more in depth review of the MMPR legislation and potentially discussing with Health Canada to assist in determining the best description of the operation; 2. Gaining a better understanding of the security and ventilation requirements; and, 3. Having discussions with similar municipalities near the City of Brantford to understand best practices from zoning by-law and building code perspectives. 9.0 FINANCIAL IMPLICATIONS Not applicable.

5 Report No. CD May 12, 2014 Page CONCLUSION The MMPR is a Federal Regulation under the Controlled Drugs and Substances Act. Consequently, Health Canada has developed detailed regulations and guidelines. Staff is continuing to conduct research concerning the nature of the use, appropriate zoning regulations (i.e. agricultural or industrial) and Ontario Building Code requirements for this use and will report back to Council with recommendations concerning regulating this use. In the meantime, it is recommended that notices and any related inquiries on medical marihuana for the City of Brantford will be forwarded immediately to the Chief Building Official in order that the CBO may respond in the manner outlined in this report. The Fire Chief and Police Chief will be provided with separate Notices as required by Health Canada. Gregory Dworak, MCIP, RPP General Manager Community Services Chris Bell, MCIP. RPP Manager of Policy Community services Paul Moore, MCIP, RPP Director of Planning Community Services Mark Gladysz, MCIP, RPP Senior Planner - Projects Community Services Appendix "A" Sections from the Federal Marihuana of Medical Purposes Regulations In adopting this report, is a bylaw or agreement required? If so, it should be referenced in the recommendation section. Bylaw required [ ] yes [ X ] no Agreement(s) or other documents to be signed by Mayor and/or City Clerk [ ] yes [ X ] no Is the necessary by-law or agreement being sent concurrently to Council? [ ] yes [ X ] no

6 Appendix A SUMMARY OF MARIHUANA REGULATIONS The following is a summary of certain key provisions respecting the establishment of a marihuana production facility from the Marihuana for Medical Purposes Regulations, SOR/ , under the Controlled Drugs and Substances Act. It is not meant to be an exhaustive list of all of the regulations relating to the production of marihuana. Application Process Under the Marihuana for Medical Purposes Regulations (the MMPR ), interested parties must apply to Health Canada to become a licensed producer. Licensed producers can be authorized to possess, sell, provide, ship, deliver, transport, destroy, produce, export and/or import marihuana for medical purposes. Licensed producers will be required to meet all the requirements of the MMPR including, but not limited to: Physical Security Measures Good Production Practices Packaging, Labelling and Shipping Requirements Import and Export permit, if applicable Security Clearance You can apply to become a licensed producer by completing a government provided application form and obtain a security clearance for key positions within the operation. Notice to Municipality Pursuant to the MMPR, prior to submitting an application for a producer s licence, the applicant must provide written notice to the local government, the local fire authority, and the local police force in the area in which the proposed site is located. The notice must contain the name of the applicant, the date on which the applicant will submit the application to the Minister, the activities for which the licence is sought, the address of the site and, if applicable, of each building within the site at which the applicant proposes to conduct the activities. The notice must be addressed to a senior official of the local authority. If there is a change in any of the above-mentioned information, the applicant must notify the local government, police and fire, prior to submitting an amended application to the Minister. Additionally, within 30 days of the issuance of the licence or the renewal, amendment, suspension, reinstatement or revocation of the licence, the licensed producer must provide written notice to the local government, police and fire.

7 If the applicant intends to engage in a controlled activity at more than one site, a separate application must be made for each proposed site and the requisite notices provided to the local government, police and fire. Security Measures The following individuals are required to have a valid security clearance under the MMPR: the applicant (if an individual) all officers and directors of a corporate applicant the proposed Senior Person in Charge the proposed Responsible Person in Charge the proposed Alternate Person(s) in Charge The application for a licence under the MMPR requires that the applicant provide, among other things, the address of the site for which a licence is sought and each building within the site at which the proposed activities are to be conducted, as well as a detailed description of the security measures at the proposed site. The security measures proposed by the applicant must comply with the MMPR and the security directive provided by the Ministry, these include a requirement to provide detailed construction plans for approval by the Ministry, and to implement security measures, including visual monitoring, on an ongoing basis. It is the licensed producer s responsibility to ensure that provincial, municipal and federal legislation, including building and fire codes, are complied with. Licensed production sites are subject to compliance and enforcement measures, including regular audits and inspections by Health Canada. Goods Production Licensed producers are subject to Good Production Practices that are meant, among other things, to ensure the cleanliness of the premises and equipment. The licensed producer is required to employ a quality assurance person with appropriate training, experience, and technical knowledge to approve the quality of dried marihuana prior to making it available for sale and must test dried marihuana for contaminants. Licensed producers must also implement and sanitation program, standard operating procedures, and the establishment of a recall system. Packaging, Labelling and Shipping Dried marihuana must be packaged in a tamper-evident and child-resistant container, and contain standard information about the product (including but not limited to, the weight in grams and the packaging date). In addition, all licensed producers are

8 required to attach a client-specific label, similar to a patient-specific prescription drug label, to the package of dried marihuana. Import and Export Permit A licensed producer must obtain a permit from the Minister of Health prior to importing or exporting marihuana. The holder of an import permit must ensure that, after the imported marihuana clears customs, it is transported directly to the site specified in their producer s licence. The licensed producer must also keep detailed records of all of the persons to whom the marihuana is shipped.