Canada task force makes recommendations for legal weed

Canada should allow people aged 18 and up to buy recreational marijuana through a wide range of retail options, according to a government-commissioned report that lays out groundwork for legalizing the drug.

Canada’s Task Force on Cannabis Legalization and Regulation made more than 80 recommendations on how the government should regulate the industry, including proposals to distribute cannabis through channels such as storefronts and mail order. The report, which was delivered to the government last month, was released publicly Tuesday in Ottawa.

Prime Minister Justin Trudeau has pledged to legalize and regulate recreational use of the drug, which would be a first among Group of Seven nations. The plan has fueled a surge in Canada’s marijuana stocks in anticipation of billions of dollars of legitimate revenue.

There could be about 3.8 million legal recreational users of marijuana across Canada by 2021 and the potential for C$6 billion of sales, Canaccord Genuity analysts Matt Bottomley and Neil Maruoka said in a Nov. 28 note.

Here are some highlights from the report:

– It proposes the federal government regulate the production of cannabis, while the provinces control distribution and retail sales.

– The market should “encourage a diverse, competitive market that also includes small producers” and set tax rates that balance public health damages from drug use with the need to reduce criminal production of weed.

– Canada should restrict marijuana advertising, set rules on drug potency and create a public education campaign about the dangers of drug impairment.

– Retail outlets shouldn’t mix marijuana and alcohol, and there should also be a direct-mail system of delivery.

– Individuals should be allowed to grow up to four plants at home and possess 30 grams of dried cannabis. Less serious offenses should be taken out of criminal law, while tougher penalties should remain in place for trafficking and sales to youth.