Mr. Rick Josephson, Executive Director & CEO.
Introduction was provided by Darvin Jasper.
Rick has led Manitoba`s gaming regulatory agency since 1997. During that time, he has observed the evolution of the public`s acceptance and consumers appetite for gaming matched with technological advances that have created an environment and access inconceivable at the end of the last century. Throughout this period, Rick has overseen diverse regulatory developments in the province including the introduction of Craps, the licensing of Texas Hold`em poker, the regulation of online gambling offered by Manitoba Liquor & Lotteries, charities option to manage and conduct gaming over a computer and casino development and operations by First Nations. Most recently, the rise and acceptance of online gambling offered by other jurisdictions and challenges to the Canadian Criminal Code`s definition of gambling have presented new challenges to regulators and their public interest mandate. A microbiologist by training, Rick`s early career was with the Federal Department of Fisheries & Oceans, eventually becoming Regional Director of Fisheries and Habitat Management for Canada`s Central and Arctic region. He then moved to a private, national security firm as its Vice-President for Western Canada and then became Chief Operating Officer for the company`s national operations until leading the establishment and operation to the Manitoba Gaming Control Commission (MGCC). In 2004, responsibility for liquor regulation was added to his accountabilities as a result of the amalgamation of the MGCC and the Manitoba Liquor Control Commission`s regulatory division.
Rick opened his presentation with giving the club thanks for the great meal and company. As far as the legalization of cannabis in Canada, Rick`s opinion is that this is the most significant social change since 1923 when prohibition was lifted. We all grew up when cannabis was an illicit drug. Possession of cannabis in the past could ruin peoples lives, but as of July 1, 2018 all that will change as cannabis will be legal for recreational use. In the recent 2017 Manitoba Cannabis Survey;
- 21.4% used cannabis in the past year
- 21.1% may or will try cannabis when it becomes legal
- 56.4% do not and are not planning to use cannabis
Of the 21.1% that will or may try cannabis;
- 63% for relaxation or fun
- 28% various medical reasons
- 21% pain management
- 14% to fall asleep
- 12%for social interactions
There are 100`s of chemicals in cannabis. The two main chemicals of interest to the user are THC (get high) and CBD (pain relief). The concentration of THC in cannabis has increased 400% since the 1980`s. In the 1980`s THC was in the order of 3%, now the level is 15% up to 30% THC. After using cannabis, the THC will remain detectable for up to 27 days. For the occasional user of cannabis, this would be 10 days. Roadside testing is an issue. When you smoke cannabis, the effect is immediate. When you use edibles, the effects can be delayed from 1 to 3 hours. In the state of Colorado, overdoses seem to all be related to edibles.
The allowable possession weight will be 30 grams of cannabis. A cigarette has ~1/2 gram of cannabis in it. The suggested price is in the order of $10 to $15/gram. The estimated market in Manitoba will be 22 million grams/year (.5million pounds).
The Federal Cannabis Act C-45 (passed in House November 27,2017 -in Senate now) is designed to decrease or eliminate the `black-market` dealing, decrease youth arrests, decrease the load on the criminal justice department, protect public health with quality control. The federal government is also responsible for creating licensing regulations and control, determine the types of cannabis products that will be allowed to be sold, determine the minimum age for possession (18), maximum possession amount (30gm), potency level control, traceability control (seed to sale), control packaging (no marketing to youth). It is very important to have Federal Government standards, these will be the foundation for the Provinces present and future decisions regarding cannabis.
The provinces will control the distribution/sale of cannabis. The retail sale, compliance rules, where consumed, zoning rules for store locations (municipalities will control if sales will be allowed). Provinces may increase the minimum age for possession (18 Federal). Home cultivation will be allowed with up to 4 plants, provinces can lower this amount independently. If any province doesn`t get all regulations and retail sales organized by July 1, 2018, consumers may go online to a Federal Government controlled site to order cannabis.
In Manitoba, there are 4 proponents that have made proposals to retail in the province. Manitoba will have a `private retail model`. The Manitoba Liquor and Lotteries Corporation (MBLL) will be the only entity to buy cannabis from the legal, regulated growers. Retailers will source their cannabis from MBLL. This model will see the Liquor and Gaming Authority (LGA) regulate the retail sale and distribution of cannabis. The LGA`s new mandate will grow and build upon the Liquor and Gaming Control Act. The LGA will become the Liquor and Gaming and Cannabis Authority.
Ontario N.B. Alberta Manitoba
Age 19 19 18 ? (19 Dec. 5,2017)
Retail public public ? private
Home 4 ? 4 ? (0 Dec 5, 2017)
Public no no limited ?/no
Lounge no no maybe no
Cannabis use in Canada shows 44.5% have used it, with 12.3% having used cannabis in the past year. There are currently 200,000 legal, medical users of cannabis in Canada.
Public concerns regarding the legalization of cannabis include;
- Driving impaired
- Underage consumption
- Underage purchase
- Retail locations
There is a limited time left for education of the public regarding cannabis use. This includes the health risks, risks to children and youth, responsible use of the product, impaired driving and related penalties.
The next step, the House stops for the Christmas Holidays on December 7th. If legislation regarding retail sale and distribution is not completed before then, the next sitting of the House is in March of 2018. That would not leave very much time to get all the stakeholders in place prior to July 1, 2018.
Q/A
- President Bob questioned the cost to growers for federal inspection of a crop regarding chemical % standard levels. Expected to be many thousands of dollars to test one crop for % standards.
- The province has nothing to do with production. The federal government is responsible for licencing of producers.
- Janet Spence commented that the young brain is not fully developed until ~25 years of age. She questions the selection of legal use at 18 years of age. Also driving and impairment major issues with youth.
- John Inglis advised impaired driving enforcement is already in place.
- Rick advised that it will take years to develop a true roadside chemical test for cannabis use.
- Brian Campbell asked how there will be control of THC levels in the `Home` grown plants.
- There will be no control.
- Paul Brault has family in Ottawa that can walk into a dispensary and get cannabis at $7/gm right now. The black-market will continue to undercut the legal market.
- Rick advised that new users are expected to use the legal market. RCMP may still investigate the black-market cannabis trade. The black-market trade will not go away. In Colorado there has been a 25% reduction in the black-market trade in cannabis.
- Darvin Jasper asked if a medical use patient will still require a prescription to get their medical cannabis.
- Yes. The pricing may be different.
Lloyd Talbot thanked Rick on behalf of the Charleswood Rotary Club for the informative presentation. A very timely subject. A donation to ShelterBox will be made in Rick`s name in appreciation of his time with us.
