Legal pot shop may join handful of illicit ones in Golden Lake
A small community in the Ottawa Valley near Golden Lake that hosts a handful of illegal pot stores might be getting a legal one.
Sherry Lee Ann Kohoko has been awarded the right to apply for a cannabis store licence on Algonquins of Pikwakanagan First Nation territory, according to the Alcohol and Gaming Commission of Ontario.
The AGCO announced that a total of 26 store licences will be allocated for First Nations territories, a boost from the eight announced last summer.
Pikwakanagan now has about eight illegal shops.
Chief Kirby Whiteduck said the band council is developing its own regulations to govern cannabis stores, but it’s slow and complicated work.
The band has spoken to both provincial and federal officials to try to sort out jurisdictions, he said. The federal government regulates cannabis growing and processing; provincial governments are in charge of its distribution and sale.
The band believes it has the right to enact its own regulations, but it’s not clear how they would be enforced, Whiteduck said.
Whiteduck said his main concern is making sure cannabis products sold on Pikwakanagan territory are safe. He said he hasn’t visited any of the illicit shops and hasn’t heard of any health and safety problems connected to them.
Whiteduck said he’s aware of warnings about illegal cannabis vape pens, which have been implicated in an outbreak of lung illnesses and deaths in the U.S.
When the Citizen visited six cannabis shops on the reserve recently, four sold illicit vape pens or cartridges.
The band council will discuss vaping and cannabis store regulations at its meeting next week, Whiteduck said. He said council will probably consult with store owners and residents.
The illegal shops have increased traffic in the tiny community. They’ve had to add two stop signs and speed bumps, Whiteduck said.
The Pikwakanagan band gave Sherry Kohoko a letter approving the location of her proposed legal shop, which was a requirement for applicants.
The rollout of stores has been slow in Ontario since Canada legalized recreational marijuana a year ago. Only 24 stores are open, including three in Ottawa.
The AGCO has held two lotteries to award the right to apply for 67 licences, which are widely seen as “golden tickets” because of the restricted competition. The processing of applications from the second lottery held in August was delayed because some of the winners were disqualified and launched a court challenge.
While the first lottery, for 25 stores, was open to anyone with a $75 application fee, in the second lottery applicants had to have a space ready and prove they had $250,000 in cash to run the store.
There were no lotteries or financial pre-qualifications for stores on First Nations reserves. Applicants are considered first-come, first-served, as long as they have a letter of support for the location from the band council.
The AGCO screens all applicants, including police and background checks.
The legal stores are run privately but heavily regulated. They must have video security, secure storage and a system to track cannabis sales. Employees must have criminal record checks. Cannabis products from Health Canadaapproved producers are sold from behind the counter.
The illicit stores at Golden Lake sell a variety of black-market products, from dried weed to candy and vape pens.
Ottawa once had a couple dozen illegal pot shops, but they all closed when marijuana was legalized and a new law took effect that makes it easier for authorities to close them and allows for huge fines for sellers and landlords.