Cannabis Legalization Creates Opportunities for First Nations

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Legalization of Cannabis Represents Opportunities for First Nations

On June 21, 2018, the Government of Canada passed the Cannabis Act, which will legalize, regulate and restrict the Canadian public’s access to cannabis. The Cannabis Act creates a comprehensive national framework to provide restricted access to regulated cannabis, and to control its production, distribution, sale, import, export and possession. Recreational cannabis becomes legal on October 17, 2018.

While the legalization of cannabis is a federal decision, much of the regulating will be left to the provinces to determine. The Cannabis Act leaves legislative space for the provinces to regulate issues relating to:

  • distribution and wholesaling;
  • the retail model;
  • retail locations and rules;
  • public consumption; and
  • issues related to land use and zoning.

Each province is currently developing its own regulations in anticipation of the Cannabis Act coming into force.

But what does the advent of the legalization of cannabis mean for First Nation communities and governments?  Many First Nations may be concerned about the consumption of cannabis on reserve and wish to regulate or restrict access. Other First Nations may be inclined to take advantage of economic opportunities presented by this new industry, either by growing, selling or taxing cannabis on reserve. Several First Nations have asked us whether they will be able to exert their governance powers in order to regulate this newly legalized substance.  

The short answer is yes, First Nations will be able to govern in this area. Band Councils have the legislative tools already available to them that can be used to regulate cannabis on reserve. This opportunity is available whether a First Nation operates under the Indian Act or has taken advantage of the First Nations Land Management Act or First Nations Fiscal Management Act. While the federal Cannabis Act will apply on reserve, First Nations may displace provincial regulations and create a regulatory regime that better fits your communities by taking proactive steps to occupy the legislative field.  

We have examined these issues in great detail and would be pleased to assist you with developing a legislative regime to regulate cannabis that meets your community needs. Few First Nation communities have taken any concrete steps toward creating their own laws. Our experience and approach is tailored to include establishing the legal theory of our case, community engagement, and managing each procedural step to the end of the matter. This makes DGW Law an ideal fit for helping First Nations through this time of growth and potential.

For further information or to discuss options available to you, contact
John Gailus (john@dgwlaw.ca) or Peter Nyhuus (peter@dgwlaw.ca)