Vancouver boosts fines for pot shops but defiant retailers still selling

A steady surge in illegal pot shops has prompted many cities to turn to law enforcement to try and clamp down.

In Toronto and Ottawa, police tried co-ordinated raids to crack down on illegal pot shops. In Montreal, police recently raidedsix marijuana storefronts the day after they opened.

But Vancouver's latest approach is different from many other cities, with local officials turning to zoning rules, licence feesand hefty fines to try andcontrol the marijuana boom.

Earlier this year, Vancouver became the first city in Canada to draft a set of bylaws that would regulate pot shops in the absence of federal laws, which are expected to be tabled next year.

But the rules seeking to limit the city's growth of medical marijuana businesses, brought in onJune 24,have so far had limited success. The city recently voted to quadruple fines, hopingthe boost wouldgive its regulations more teeth.

• Vancouver's solution to pot shops? Make them pay for a $30,000 licence

Long-time marijuana advocate Dana Larsen, who runs two unlicensedmarijuana businessesin Vancouver,says "we haven't paid any of our fines yet."

"We will if we have to, but we're going to use every legal means possible to fightthose fines, including going to court."

He's not the only one the vast majority of fines issued by the city haven't been paid.

Zoning rules, hefty fines

The number of medical marijuana retailersin Vancouver had mushroomed before the city brought in a bylaw to restricttheir distance to 300 metres from each other, schools, youth facilities and community centres.

According to officials, the number of marijuana-related businesses grew by 100 per cent per year from mid-2013 to mid-2015. In the first six months of 2015 alone, the city said, the number of pot-related businesses increased from 60 to 100.

• Pot shop owner Dana Larsen says he will sell marijuana without prescriptions

After Vancouver set out its business licence and zoning rules, the city said it received a total of 176 applications before the August 2015 deadline. By October, the city had refused 140 applications, saying they "did not meet zoning requirements for medical marijuana-related retail uses."

Vancouver then gave those businesses a timeline: they had six months to shut downfrom the date their application was refused.

Larsen has applied for business licences for his stores. But in the meantime, he's not willing to shut down the stores during the application process, which he says is taking months.

The city sends inspectors to ticket him $250 dollars each visit while the businesses remain open.

"I'd be happy to spend more money fighting those fines than just paying them, just kind of on principle," he said."Because this city is full of schools and community centres. It really limits how many dispensaries can be in the city."

Most fines unpaid

The City of Vancouver recently approved a new rulethat would quadruple fines for businesses without a licence. For example, a fine for businesses operating without a licence has risen to $1,000 per violation, up from $250 an effort to change the behaviour of businesses by hitting them in the pocketbook.

• Vancouver quadruples fines for unlicensed businesses

As of Dec. 6, more than 1,000tickets have been issued. Roughly a quarter of them, 255, have been paid.

The city expects to head to court next year after filing more than two dozen injunctions aimed at shutting down the pot shops it says are violating the rules.

We've actually stopped the growth of new dispensaries across the city.- Kerry Jang, Vancouver city councillor

"Because of our licence system, we've actually stopped the growth of new dispensaries across the city, whereas places like Toronto, that spent millions of dollars trying to enforce with police and whatnot, are seeing an increase in the numbers," Vancouver Coun. Kerry Jang told CBC News.

Precise numbers on marijuana shops are hard to come by, as stores spring up without license or warning.

In Toronto, there was a "proliferation" of pot sellersin storefronts across the city in spring 2016, a spokesperson said. In late May, city licensing staff and police raided a number ofmarijuana retailers, laying a total of 101 charges for zoning and licensing infractions.

• Toronto police raid storefront pot shops suspected of trafficking

"Since that time, enforcement has continued and there have been 156 dispensaries investigated to date," a licensing department spokesperson said in an email. Of those, 112 are closed and 44 are still operating, the city said.

New worries with legalization

A recent report by thefederal marijuana task force highlighted the role of municipalities and provincial governments in future legislation and there is the potential for new concern.

Jang reviewed the report and said the task force upholds the right of municipalities to manage their land. But he says he's worried about a recommendation that would allow people to grow recreational pot at home, with a limit of four plants per residence.

"It says it will be under the jurisdiction or under the control of local governments, but they don't tell us how a local government is supposed to enforce that," Jang said. "[They] didn't tell us how we're going to pay for that."