B.C. Today – Daily Report July 5, 2019

Quotation of the day

“B.C. bud is renowned the world over. It really saddens me at a personal level to see Alberta and Ontario becoming cannabis capitals of the world and B.C. is getting so far behind.”

Barinder Rasode — former Surrey city councillor, now the founder of NICHE and Grow Tech ​ Labs — says B.C. is squandering its cannabis culture capital.

Today in B.C.

The House is adjourned for the summer recess.

Cannabis industry says politicians are to blame for B.C.’s sagging sales, while municipalities still wait for revenue sharing plan

B.C. never expected cannabis legalization to generate a “green rush” — even if the province’s reputation for cannabis connoisseurship made it seem like the perfect place for a legal weed industry to grow and blossom.

From his first days as public safety minister and solicitor general, said the ​ ​ costs of enacting and enforcing a brand-new licensing and regulatory regime would outweigh any revenues generated by legal cannabis sales.

But almost nine months after cannabis was legalized in Canada, B.C. is pulling in less ​ cannabis-related revenue than any other province save P.E.I. ​

Finance Minister Carole James has said current revenues are slightly below even the reduced ​ ​ revenues her ministry built into Budget 2019, which dropped to less $17 million from $50 million in the prior year’s budget.

According to the finance minister, the province has not even “reached a point to be able to have ​ revenue to share” with local governments.

Union of B.C. Municipalities (UBCM) president Arjun Singh says he’s not worried, citing ​ ​ confidence in the province’s “principle-based commitment” to share revenues with municipalities.

How the revenues will be divided is a work in progress. Local governments have been asked to provide the finance ministry with data about the cannabis-related costs they are incurring in order to inform the final formula.

“It would be nice to have this work done as soon as the province feels comfortable with the information in front of them,” Singh said.

“I don’t think it’s a surprise that this thing has moved a bit slowly,” Singh told BC Today of slow ​ ​ sales so far. “It’s a brand new issue area.”

B.C. has delegated a lot of authority to local governments when it comes to cannabis sales. Municipalities can decide what kinds of cannabis retail they want in their community as well determine how many stores can open and where they can set up shop.

Singh said UBCM’s municipal members like the autonomy the process allows them — which includes veto powers.

Asked about the licensing process, which has been criticized as overly bureaucratic and burdensome, Singh noted there has been an “uptick” in approvals for cannabis retail outlets in recent months.

Barinder Rasode, a former Surrey city councillor turned cannabis business advocate, says ​ without more political will the province’s cannabis industry will continue to sag.

“B.C. bud is renowned the world over — it really saddens me at a personal level to see Alberta and Ontario becoming cannabis capitals of the world,” said Rasode told BC Today. “B.C. is ​ ​ ​ ​ getting so far behind. I worry we’ll lose our position completely and not be even qualifying anymore as one of the top.”

Rasode, who is a founder of the National Institute for Cannabis Health and Education (NICHE) ​ ​ and co-founder and CEO of Grow Tech Labs, sees a lack of confidence on the part of many ​ ​ B.C. politicians at all levels to be proactive about cannabis policy. That, combined with a lack of education about how to handle cannabis retail, has dragged down the burgeoning legal industry in B.C.

Rasode says the Liquor and Cannabis Regulation Branch’s current retail licensing process is so ​ ​ onerous and invasive that is has also been causing delays for liquor permit applicants because there is “no separate line for cannabis applications” and liquor permit applications.

Despite that, Rasode said the B.C. Cannabis Secretariat has an “open door policy” with industry.

“We understand that it’s taking longer than is desirable to process cannabis retail licence applications, and steps are being taken to improve the approval process — addressing both timeliness as well as providing information to applicants,” Minister Farnworth’s office told BC ​ ​ Today in a statement. ​

The province has long said its priority is to “ensure illegal activity does not arise in the legal cannabis market.”

“That’s why we’ve developed a robust application process that includes stringent security screening and financial integrity checks in the interest of due diligence, which sometimes requires additional time to complete,” the minister’s statement reads.

Even if the licensing process speeds up, Rasode sees another challenge to the current legal cannabis regime, one that is rooted in B.C.’s legendary bud.

“There are a lot of [B.C.] cannabis consumers who are still going to their pre-legalization supply because … the [licensed producer product] is of a different quality than they’re used to. It’s not at the level they need it to be,” she told BC Today. ​ ​

In other words, large-scale licensed producers (LPs) are not yet growing cannabis of the quality B.C. cannabis users have become accustomed to.

Licensing just a small percentage of the province’s so-called “grey market” growers could go a long way to boosting B.C.’s cannabis revenue. According to an analysis by Grow Tech Labs, if ​ ​ 15 per cent of the estimated 6,000 small-scale cannabis cultivation operations in B.C. became licensed, they could generate $3 billion in cannabis sales in just two years.

But so far, the B.C. government has not done much to smooth the way for these experienced mini-producers to enter the legal market. Neither has Ottawa: just one application for a micro-production licence has been approved in the entire country.

To Rasode, that’s a shame. She say British Columbians — even those who have not previously used cannabis — want to be able to buy high-quality cannabis products.

“There is a change in culture — government just needs to be a part of [it],” she said. “Right now they’re hiding from it.”

Today’s events

July 5 at 10 a.m. – Peachland, Penticton ​ Federal Seniors Minister Filomena Tassi will tour several seniors’ organizations — including ​ ​ the Peachland Wellness Centre Society and the Penticton Seniors’ Drop-in Centre — in the Okanagan.

Weekend events

July 6 at 12:30 p.m. – Prince George ​ The Liberal Party’s Prince George—Mackenzie riding association and local MLA ​ will host a summer barbecue at Morris’ home.

July 6 at 1 p.m. – Saanich ​ The Green Party’s Saanich South riding association will host a potluck summer barbecue at a private residence.

July 7 at 11 a.m. – Victoria ​ Liberal Leader and members of the B.C. Liberal team will march in the ​ ​ Victoria Pride Parade; Green Party House Leader will lead the B.C. Green ​ ​ Party delegation.

July 7 at 1 p.m. – Coldstream ​ The Liberal Party’s Vernon—Monashee riding association will host a member appreciation event at the Mackie House. MLAs (Fraser—Nicola) and ​ ​ ​ ​ ​ (—) will attend.

Topics of conversation

● The B.C. Oil and Gas Commission has issued a facility permit to Woodfibre LNG, ​ ​ bringing the liquified natural gas export facility proposed for the site of the old Woodfibre pulp mill in Squamish one step closer to reality. The project previously received three environmental assessment approvals. “This is a positive step forward as we work to build the cleanest LNG export facility in the world,” Woodfibre LNG president David ​ Keane said in a statement. “Our environmental assessment process with the Squamish ​ Nation is the first of its kind in Canada. The progress we have made would not be possible without the contributions and feedback made by our Indigenous partners and the Squamish community.” The company hopes to move forward with a final decision on the project this summer. ○ The proposed facility would have the capacity to produce approximately 2.1 million tonnes of LNG per year.

● Manitoba Premier Brian Pallister says he’s charging ahead with a legal challenge of the ​ ​ ​ ​ ​ federal carbon backstop despite recent rulings in Ontario and Saskatchewan that upheld ​ ​ it as constitutional. Both cases are headed to the Supreme Court, with Saskatchewan’s set to be heard in December. Manitoba’s case wouldn’t be heard until at least 2020. ○ New Brunswick Premier Blaine Higgs has said his government would seek to ​ ​ intervene at the Supreme Court but plans to cancel its own provincial court challenge. The federal government imposed the carbon pricing system on those four provinces because they don’t have their own.

● DBRS Limited has issued an investment-grade BBB rating for Canfor Corporation, noting that the “current softness in the North American lumber market” is unlikely to “permanently affect” the company’s credit metrics and business profile, despite present “difficult operating conditions” in . Canfor’s debt has doubled since its March 2018 fiscal year-end, according to DBRS, which calculates that the company’s earnings have dropped to $627 million in the last 12 months after pulling in $806 million in 2017. ○ The company has made some “positive” acquisitions to offset the financial decline, according to the assessment, and is expected to “positively manage” the current market challenges. ○ The company announced the closure of its Vavenby sawmill last month, along ​ ​ with plans to sell its associated forestry tenures to Interfor.

● Over the past decade, most legislatures in Canada sat for fewer days per year than in ​ ​ nearly two decades before, but the B.C. Legislature saw the biggest decline of all. Between 2010 and 2018, the average number of sitting days in B.C. dropped by 10 compared to 1987-2009, according to analysis by The Globe and Mail. ​ ​

● Over six years, the Corporate Mapping Project — a collaborative research effort by the University of Victoria, Canadian Centre for Policy Alternatives and the Parkland Institute — has tracked the influence of the energy industry over government policy, the Star ​ Edmonton reports. ​ ​ ​ ○ “At a cultural level, the industry has put together a narrative that many people have bought into, and not just into Alberta, that this industry is at the centre of life and we could not live without it,” the project’s co-director Bill Carroll told the ​ ​ Star. “Meanwhile the climate crisis is getting worse and worse. … It’s frankly ​ irresponsible for people to be engaging in effect a kind of denialism at this point,” he added.

● The Ministry of Transportation and Infrastructure has launched industry consultations as ​ ​ it looks to develop a mandatory Class 1 driver training program for commercial truck drivers on the recommendation of the B.C. Trucking Association. The ministry is gathering input from the trucking and driver training industries and other stakeholders with support from ICBC and the Ministry of Public Safety and Solicitor General.

News briefs - Non-governmental

Ministry of Agriculture Landowners whose properties are part of the Agricultural Land Reserve (ALR) have until February 22, 2020, to obtain all required permits and authorizations to place a manufactured ​ home on their property.

The grandfathering option is meant to accommodate farming families caught off-guard by ​ ​ changes to the Agricultural Land Reserve Act, aimed at restricting development on prime farmland, over the past year.

“Less than 5 per cent of B.C.'s land is in the ALR — we need to protect this farmland to support farmers, encourage agriculture jobs and strengthen food security in B.C.," said Agriculture Minister in a statement. "As we've worked to make long-overdue changes to help ​ ​ farmers farm, we heard from people living in the ALR, many who said they aren't farming but purchased ALR land for residential use. We understand that some have been caught in the transition. We've listened and have given people a bit more time to get their permits in place.”

However, mega-mansions are still off the table. Additional manufactured homes must be nine metres or less in width and for the use of the property owner or an immediate family only.

Spallumcheen Mayor Christine Fraser said the interim plan will help local families. ​ ​

“We look forward to consulting with the ministry next year on future regulations that will provide more flexibility for families that are farming in our community,” she added.

Ministry of Finance The B.C. Public School Employers' Association — which represents 450 K-12 support staff ​ ​ working in the West School District — has ratified a new employment agreement with School District No. 45 and the West Vancouver Municipal Employees' Association. ​

The three-year agreement is retroactive to July 1, 2019 and includes the standard two per cent per year wage increases as well as negotiated funding to extend work hours for elementary school administrative assistants and secondary school education assistants. Residual funds will go toward professional development.

Employment agreements between the province’s 60 school districts and local K-12 support staff unions are now complete, according to the finance ministry. The negotiation process began in September 2018 under the Provincial Framework Agreement. ​ ​

Funding announcements

● Over the next three years, the City of Vancouver will use $33 million from the ​ ​ Childcare B.C. New Spaces Fund to create up to 2,300 funded child care spaces at ​ ​ ​ schools, community centres and other public facilities across the city. ○ Around 1,000 new licensed child care spaces have been created in the city since last year, according to the Ministry of Children and Family Development, ​ ​ including more than 300 at eight sites that were selected to participate in the province’s Universal Prototype Sites Program. ​ ​

● The new $1.2-million Foundry Penticton is now open. The Ministry of Mental Health ​ ​ ​ and Addictions contributed $200,000 — $400,000 from donations and grants through ​ ​ the Foundry provincial network, and $600,000 secured by OneSky Community ​ ​ ​ Resources, which will operate the centre in partnership with the Community ​ ​ Foundation of the South Okanagan Similkameen. Foundry is a “one-stop shop” for ​ ​ ​ mental health and wellness services for youth; the Penticton centre will initially offer walk-in primary care and counselling, peer support and mental health services, housing and employment supports, legal advocacy and substance-use counselling with further services to be added later. ○ Expanding the number of Foundry centres in the province is “an integral part” of A Pathway to Hope, which includes the creation of eight new centres around the ​ province. This is in addition to the 11 that are already operating or currently in development.

● Eleven building projects have been selected as winners of the Net-Zero Energy-Ready ​ ​ ​ Challenge, announced by the Ministry of Energy, Mines and Petroleum Resources in ​ ​ ​

October. Each winner will receive up to $390,000 from a total of $2.5 million to offset a portion of the cost to build to the highest energy performance standards. ○ An open house event will take place later this year to showcase the winning designs and share best practices.

Lobbyist registrations

If you are looking for further information on any lobbying registry, it is all public and easily searchable here. ​ ​

Consultants who registered as lobbyists from June 28, 2019 – July 4, 2019

● Maeghan Dewar, Longview Communications and Public Affairs ​ o Clients: Coastal GasLink Pipeline Ltd. ​

● Rob Nagai, Bluestone Gov't Relations ​ o Clients: British Columbia Seniors Living Association (BCSLA) ​

● Christopher E. Lightfoot, N/A ​ o Clients: BC Alliance for Healthy Living ​

Organizations that registered in-house lobbyists from June 28, 2019 – July 4, 2019

● British Columbia River Outfitters Association ● Boehringer Ingelheim Canada Ltd. ● Canadian Red Cross Society ● Pasha Brands Holdings Ltd. ● The Explorers and Producers Association of Canada ● Shaw Communications Inc. ● Coast Capital Savings Federal Credit Union ● Pembina Pipeline Corporation