Senate Judiciary Committee Pushes Cannabis Law Review To Address First Nations Exclusion

The federal health minister should amend the 2018 Cannabis Act to recognize the right of First Nations to regulate the possession, sale and distribution of cannabis on their land, a Senate committee says.

In a report filed Wednesday afternoon, the Senate Standing Committee on Indigenous Peoples says many issues identified before legalization have gone unaddressed, with some First Nations still blocked from the lucrative industry.

The loopholes in the legislation have fueled the emergence of what some call a “red market” operating under First Nations sovereignty, but in violation of federal and provincial regulations, leading to confusion over jurisdiction and potential conflict with authorities.

“For the past 150 years, First Nations have been excluded from economic opportunity on their lands,” says the report, titled Looking in from the outside.

“The commission heard that this exclusion continues today in the fisheries, forestry and cannabis markets.”

Progressive Senator Brian Francis, who is committee chair and Mi’kmaw of Lennox Island First Nation in PEI, called the situation “another example of Indigenous peoples being let down by Canada”.

“Once again, a government that says it is determined to build a renewed relationship with indigenous peoples based on the recognition of rights, respect and partnership has failed to deliver on its promise,” he told a news conference in Ottawa on Thursday.

The commission opened its investigation into the impact of the Cannabis Act on Indigenous Peoples in 2022, collecting testimony from 29 witnesses. It made 13 recommendations in its 38-page interim report.

Report calls for revenue sharing

The MPs are calling for cannabis-related tax revenue sharing and a review of cannabis licensing schemes to increase the number of licensed indigenous cannabis producers.

The report recommends research into the effects of cannabis legalization on the health of Indigenous peoples and urges the expert panel reviewing the cannabis law to engage with Indigenous peoples to address unresolved issues.

These issues include a lack of proper consultation from the start, a refusal to recognize Indigenous jurisdiction, and the lack of enforcement of First Nations cannabis laws.

Progressive Senator Michèle Audette, who is Innu of Quebec’s Uashat mak Mani-Utenam, said the bill’s introduction was a missed opportunity.

“Because our voice wasn’t there from the beginning, until today we have to make reports and remind Canada that we are here and we have to act on those recommendations,” she told reporters.

The report says several witnesses have raised the idea of ​​the “red market” where Indigenous nations or communities can band together to share expertise and do business with each other, but what exists instead is a nationwide patchwork where some First Nations make deals with provinces while others push for their right to self-government.

According to the report, First Nations police often lack the resources to enforce cannabis regulations, while provincial authorities may be hesitant to do so given what one witness called “the sensitive relationship between First Nations and Canadian law enforcement.”

The commission therefore recommends that the federal government increase cash flow to First Nations for the enforcement of band-made cannabis statutes, and address this issue through its proposed First Nations police legislation.

It is not too late for the liberals to bridge the gaps and correct the flaws in the legislation, Independent Senator David Arnot said.

“This is a golden opportunity for the government to act,” he said.

“There is still time for the government to improve a situation that, again, has allowed indigenous people from the outside to look in.”

A spokesperson for Health Minister Jean-Yves Duclos said in an email that his office thanks the senators for their work and “will take the necessary time to review the report,” but was unable to comment.