As Canada prepares for the legalization of recreational cannabis, governments at all levels are looking to those with experience in the implementation and regulation of legal, commercial cannabis marketplaces. My experience in Denver – the first major city in the world to open fully legal, licensed recreational cannabis businesses – has provided some unique insights into implementing a regulatory model at the local level that is designed to meet the needs of the community.

Embrace the change

The most effective way to manage cannabis legalization is to jump in with both feet and devote resources to this new industry. City leaders set the tone, and if the message is “We’re going to do this, and we’re going to do it well,” then the sleeves get rolled up in a hurry. The keys to success lie in recognizing that this new, legalized industry touches all aspects of government, and you will need to be flexible and nimble so that when you learn about some new issue, you can have all the right people in the room to figure out how you’re going to address it. Establishing a coordinated management model that pulls together a multi-disciplinary team with representatives from across the organization is critical to the successful regulation of an enterprise that affects everything from zoning to public health, and business licensing to law enforcement.

As is the case in communities across Canada, the people of Denver are extremely passionate about their quality of life – it’s a wonderful place to live and you don’t want to compromise that. The goals of cannabis regulation in any community can be boiled down to the single guiding principle of protecting that quality of life. Folding the new requirements of legalized cannabis into the day-to-day operations of government can help achieve that, but only with buy-in from all involved. 

Regulate matters of local concern

To support effective implementation of a new industry, local governments are particularly adept at considering regulations around the time, place and manner in which these new laws and policies are put into practice – in this case the sale and use of recreational cannabis. Local licensing requirements should include provisions that seek to protect quality of life--the health, safety and welfare of residents as well as businesses and their customers. This includes considerations such as where retail sales could be located, hours of operation, inspection requirements and video monitoring. There is also a need to address odors, lights or other impacts that could affect other businesses or people in the area.

Much of this important work can be done through the permitting and licensing process. Potential operators should have proof of premises with documented ownership or landlord approval of the use and business concept. Building this into the application process is an effective way to ensure that applications are being submitted by legitimate businesses and to reduce the workload on what are sure to be some very busy licensing clerks. Further vetting should be done to ensure only the most responsible operators are handling cannabis in the community. Many illegal operators hope to transition their businesses into retail cannabis stores, so governments must ask themselves if operators that are violating cannabis laws nowshould be entrusted with the responsibility of obeying applicable laws in the future.

Proximity restrictions for sale of cannabis, such as requirements for setbacks from schools, playgrounds, drug treatment facilities, and other cannabis businesses should be considered carefully. Local governments can choose to put in the same minimum distances for cannabis stores that are in place for liquor stores, and/or craft restrictions based on zoning and land use. A way to further protect children is to not allow minors to even enter retail cannabis stores, unlike liquor stores that sell alcohol and convenience stores that sell cigarettes.

Finally, coordinating inspections is critical. Creating a system that allows inspectors from different agencies to communicate and share information in real time will ensure safe operations and compliance. Inspections of cannabis-related businesses should be robust and frequent, but to be effective, inspecting agencies – whether they are building, fire prevention, public health, legal or business-related – must talk to each other as well as the business operator.

Don’t forget about social consumption

In addition to the regulatory component for licensed businesses, local governments also must consider where people can use cannabis products. Decisions to limit where cannabis can be used should reflect the priorities of that community. In Denver, if we had decided that you could smoke marijuana wherever you smoke a cigarette, our voters would never have tolerated it. That election was six years ago, and it is now clear that people deserve – and demand – a place to consume outside of a purely private residence.

Options abound, but finding the right fit for your community is a challenge. Is smoking allowed indoors? In the future, should stores be allowed to provide “tasting rooms” or lounges where use is permitted? What about other businesses, such as cafes, art galleries and event spaces?

You got this!

Those local governments that are thinking about these questions now are already setting themselves up for success. Yes, there will be bumps in the road and some may cause you real pain, but you will be rewarded for being proactive, and for remaining agile as the landscape evolves.

Changes happen fast in this industry, and from an administrative and licensing standpoint, it will be a lot of work. View it as an opportunity; one that could highlight good public policy and local governments’ ability to take a huge administrative challenge and succeed in a big way.