By Tyler Marr

Council set to debate revised $10K cannabis business licence fee

Jul 24, 2018 | 8:00 AM

After a heated debate as Prince Albert lawmakers worked to iron out the local regulations surrounding retail cannabis in June, a revised Cannabis Business Licence Bylaw is on the agenda Tuesday afternoon.

The city’s executive committee will consider proposed rules outlining licence fees, penalty options, and other requirements for cannabis storefronts, production and wholesale facilities. Initially proposed was a $5,000 cannabis business licence fee and a $1,500 annual renewal for storefronts.

But at the hectic late June meeting, council directed administration to come back with a $30,000 fee, citing the fact sellers will have a near-monopoly on the market due to the cap on provincial licences.

Staffers were hesitant on charging this amount, worried it would fall out of line with what the city is legally allowed to charge for business licence fees under the Cities Act. Planning Manager Lars Ketilson defended the $5,000 proposal at the time by citing the hours poured into crafting the law. He said city staff logged their time and drafting the proposed law cost a total of $20,000.

This is again the defence of the proposed now $10,000 cannabis retail business licence fee and $100 annual renewal up for discussion. This will come alongside a bumped up wholesale and production facility fee, from $1,000 to $2,500, with a $100 annual renewal.

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The City of Saskatoon narrowly voted to approve a $20,000 licensing fee in late June. Saskatoon similarly defended its pricy proposal by calculating the cost of staff hours committed to the process and charging accordingly to recoup costs.

Not all Prince Albert lawmakers, however, were on board with the increased fees, with a few only supporting a cost parallel to a regular business licence which costs $100. Others said they would only signal their support for the high price point if liquor store licence costs were bumped up, too.

Also on the table for talks is establishing operating hours for cannabis retail outlets from 11 a.m. to 11 p.m. The provincial Cannabis Control Act will allow storefronts to operate from 8 a.m. to 3 a.m., though it leaves the door open for local authorities to tighten the times. 

If the city does sign off on restricting hours, according to agenda documents, Prince Albert would stand alone, as no other municipalities in Saskatchewan have done so.

No decisions made Tuesday afternoon are final, as they will need to be forward to an upcoming council meeting for a final rubber stamp.

Cannabis will become legal across Canada on Oct. 17.

tyler.marr@jpbg.ca

On Twitter: @JournoMarr