November 2, 2017
The Honourable Bill Morneau, P.C., M.P.
Minister of Finance
Government of Canada
90 Elgin Street
Ottawa, Ontario
K1A 0G5

Dear Minister:
ENSURING CANNABIS LEGALIZATION IS SAFE,
EFFECTIVE AND SUSTAINABLE
With a summer 2018 deadline fast approaching, municipalities remain vital partners
in your government’s efforts to legalize and regulate recreational cannabis across
Canada. So I welcome this opportunity to offer a municipal view on national
investments required to achieve this goal—effectively, safely and sustainably.
The Federation of Canadian Municipalities is the national voice of local
government. Our 2,000 members represent more than 90 per cent of Canadians
living in cities and communities from coast to coast to coast. Municipal
governments work in partnership with your government to deliver local solutions to
national challenges, from growth and productivity to climate and public safety.
Our cities and communities are where recreational cannabis will be sold and
consumed—and the proposed legislation places municipalities on the front lines of
keeping Canadians safe. Bills C-45 and C-46 signal that local governments will be
responsible for amending, administering and enforcing zoning and density bylaws,
along with rules around smoking restrictions, public nuisance, and safety concerns
related to building codes. Additional areas of shared responsibility may include
minimum age of purchase, possession limits, public consumption, public education,
retail location rules, home cultivation and public health.
Growing into their expanded responsibilities will impose significant costs on
municipalities, both immediate and ongoing. The full shape of those responsibilities
will be driven by regulatory frameworks developed at the provincial and territorial
levels. Nonetheless, municipalities across Canada are already investing significant
resources to prepare for this federal initiative.
With changes expected in up to 17 municipal departments—from building services
to human resources to local transit authorities—FCM members are amending bylaws pre-emptively. Many are undertaking costing exercises based on what they
know about emerging regulatory frameworks, and FCM is working to share the
outcomes among members and with our federal and provincial/territorial partners.

…/2

 –2–

Municipalities are also working with their police services to anticipate new requirements. As you
know, municipalities cover almost 60 per cent of Canada’s policing costs, and municipal forces
are already managing increasingly complex new responsibilities, from cybercrime to border
security. Preparing the bulk of Canada’s police forces to enforce new cannabis rules—with
appropriate training, systems and resources—is a massive and costly undertaking.
In August, FCM published a cannabis primer to help municipalities work ahead where they can,
and to develop work plans for full implementation. To develop a more comprehensive in-depth
guide, we have assembled a technical advisory group of planning, legal, policy and enforcement
experts from across the country. And as we continue working with municipalities and their
provincial-territorial associations, I am struck by their determination to carry out this important
work in the face of limited revenue tools.
Your government recognizes that local fiscal limits should not derail federal commitments. We
see this recognition built into the Investing in Canada infrastructure plan, with investments that
empower municipalities to boost national growth and productivity. This same recognition can
and must drive the federal approach to coast-to-coast cannabis legalization.
As your government continues to coordinate with provinces and territories, municipalities should
be at the table. Municipalities have frontline expertise to bring to that process. They also need
insight on regulatory frameworks as they are developed, so they can work ahead on local
implementation. To this end, FCM continues to engage with federal departments—including
Public Safety, Health and Justice—to better coordinate efforts across orders of government.
Specifically in our discussions with your department, FCM is now recommending a two-phased
approach to help equip municipalities to implement this major federal commitment.
First, and immediately, the federal government should provide support for the
municipal start-up costs of legalizing cannabis safely and effectively.
This recommendation echoes the final report of the Task Force on Cannabis Legalization and
Regulation, which called for federal leadership to ensure that new capacity is developed among
all orders of government before the regulatory regime launches.
We recognize that your government has announced $161 million over five years to help train
frontline workers. However, it remains unclear how much of this modest commitment may flow
to municipalities for local training needs. Furthermore, training is only one component of the
start-up challenge local governments now face.
FCM is ready to work with your department on a funding plan to support the rapid growth of
local capacity required to implement, administer and enforce a new recreational cannabis
regime within the timeframe established by the federal government.
Second, the federal government should guarantee public safety by ensuring that
the new cannabis regime is sustainable for the long-term.
Legalization is not a one-time project. Canadians need to know that the administrative and
enforcement infrastructure that their governments launch next year will continue to keep them
safe and secure for years to come. Recognizing this challenge, your government has proposed
a cannabis-revenue-sharing formula with the provinces to support ongoing costs. Given
municipalities’ central role in administration and enforcement, municipalities should be
meaningful participants in these revenue-sharing conversations.
…/3

 –3–

Regardless of the formula adopted, ensuring public safety will depend on predictable, long-term
support for local administration and enforcement. There is ample precedent here: all eight U.S.
states that have legalized recreational cannabis have adopted predictable funding allocations
for their local governments. In Canada, this may require a variety of funding sources should the
proposed excise taxation regime not be sufficient to support these responsibilities.
In sum, given the right tools, you can count on local governments to implement this federal
commitment in communities from coast to coast to coast—in a way that keeps Canadians safe
and well-serviced, at launch and for the long term.
I look forward to discussing these recommendations in more detail, and FCM staff will reach out
to coordinate a meeting. In the meantime, if your staff have any questions, please contact
Hardave Birk, Government Relations Advisor, at hbirk@fcm.ca or 613-907-6331.
Sincerely,

Jenny Gerbasi
Deputy Mayor, City of Winnipeg
FCM President
c:
c:
c:
c:

The Honourable Ralph Goodale, Minister of Public Safety
The Honourable Jody Wilson-Raybould, Minister of Justice and Attorney General
The Honourable Ginette Petitpas-Taylor, Minister of Health
Mr. Bill Blair, Parliamentary Secretary to the Minister of Justice and
Attorney General of Canada and to the Minister of Health

…