Why Canada’s Cities Aren’t Cracking down on Marijuana Stores

Canada’s municipalities are in a tough position when it comes to pot. Faced with a previous federal government that had no interest in legalizing marijuana or modifying its obtuse mail-order medical-marijuana program, Toronto and Vancouver have swiftly become home to more than 250 dispensaries that operate outside the law, with more than 100 now open in Ontario’s capital.

The rush to open more storefronts appears to be accelerating ahead of the federal government’s pledge to introduce a legalization bill next spring, as wannabe entrepreneurs try to cash in before a potentially new regulatory regime comes into force. But cities facing pressure from citizens to crack down on the flourishing businesses are discovering they may lack the legal authority to do so.

In June, 2015, Vancouver city council passed a bylaw establishing a licensing process for the city’s storefront pot shops. The bylaw sought to regulate everything from the minimum age...

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