Toronto, Ontario, will halt its efforts to shut down illegal cannabis dispensaries in the city, citing budgetary concerns and the safety risks posed to municipal enforcement officers. Carleton Grant, Toronto’s executive director of municipal licensing and standards, explained during a council budget committee meeting that law enforcement agencies, not the city, should be responsible for closing down these unlicensed shops.
The decision comes after years of attempting to close down illegal cannabis shops by employing various methods, including installing concrete blocks and boarding up properties. Grant described these efforts as unsuccessful and mentioned that the city has faced legal challenges, including being countersued for locking tenants into businesses.
“We’ve made efforts over the last five to six years to close them down, to put up concrete blocks that are only to be removed within 24 hours. We have boarded up buildings. We have been countersued for locking a tenant into a business,” Grant explained to CBC.
The city’s budget for cannabis enforcement, which included C$8.97 million from the Ontario Cannabis Legalization Implementation Fund received in 2018, will expire by the end of 2024. With funding for enforcement no longer available, the city has had to reassess its position on cannabis shop closures.
Grant also emphasized that municipal bylaw enforcement officers, who have been tasked with investigating and shutting down the illegal dispensaries, lack arrest powers and are not trained to use force during enforcement activities. These limitations have created challenges in enforcing cannabis regulations, leading to potential health and safety risks for the officers involved.
The provincial government of Ontario has committed to continuing efforts to maintain the integrity of the regulated cannabis market. A spokesperson from the Ontario Ministry of the Attorney General confirmed the province’s ongoing commitment to the cause but did not provide specific details about how enforcement would be handled in Toronto. In 2024, the provincial government announced C$31 million in funding over three years for cannabis enforcement initiatives. The funds are designed to bolster the Provincial Joint Forces Cannabis Enforcement Team, which will address illegal cannabis production, sale, and distribution across Ontario.
Toronto’s decision to stop cracking down on illegal cannabis shops represents a significant shift in the city’s approach to cannabis regulation. While the city has been dealing with the complex issue of unlicensed dispensaries for years, the lack of funding and resources has made it increasingly difficult to maintain enforcement efforts.
The provincial funding will play a crucial role in supporting enforcement at the regional level, but Toronto’s struggle to address illegal cannabis sales highlights the ongoing challenges faced by cities across Canada as they attempt to regulate the cannabis industry in a post-legalization landscape.
Stay informed with daily updates on cannabis business news by subscribing to our newsletter.
