Google search of "Canada has legalized drug":
Canadian drug policy is moving away from the drug prohibition strategy it shared with the U.S. towards a more European based harm reduction model. Perceiving drug use as a public health concern, Canada focuses far fewer resources on criminal enforcement than the U.S., with 70 percent of Canada's counter narcotics budget spent on demand reduction. Although marijuana is technically still illegal in Canada, regulations came into force in 2001 allowing the use of marijuana by people who are suffering from serious illnesses and in 2003 a court ruling forced the government to sell the drug to certified medical marijuana patients making Canada the first country in the world to sell marijuana. Canada is also preparing to allow reduced sentences for low level marijuana possession and is evaluating supervised injection trials and heroin maintenance programs.
http://www.drugpolicy.org/global/drugpolicyby/northamerica/canada/

"Canadian Prime Minister Paul Martin renewed his party's commitment to marijuana decriminalization in summer 2004. According to a Canadian Press News Service report in the StarPhoenix dated July 22, 2004 ( "Gov't Committed To Decriminalizing Marijuana"), "The federal government is committed to marijuana decriminalization and will reintroduce legislation to make it happen, Prime Minister Paul Martin said in his first statement on the issue since winning re-election. The Liberal government will bring back a bill that died with the election call and re-table it after Parliament resumes sitting in October, he said Wednesday following a meeting of his new cabinet. 'The legislation on marijuana -- the decriminalization of minor quantities of marijuana -- that legislation will be introduced.'"

The bill, though significantly watered down from the original version, would still reduce penalties for minor possession amounts. The CP noted that "According to the original bill, anyone caught with 15 grams of pot or less would receive a ticket instead of criminal charges. But those caught trafficking more than 15 grams would receive harsher penalties. Critics say the bill could lead to more cases of intoxicated driving and cause traffic snarls at the Canada-U.S. border while American customs agents intensify their search for drugs. They also bemoan the 15-gram ceiling for non-criminal use, calculating that it would become legal for someone to carry more than 30 joints at a time. Detractors have already successfully lobbied the government to drive down the initial maximum amount from 30 grams."
http://www.csdp.org/news/news/canada.htm

Anyhow this is pretty old, I believe in very recent speech Canadian Prime minister mentioned they been successful in legalizing drugs [or maybe I was mistaken & they are still working on it]. Anyway I think it's safe to say they are moving more in this direction and the time they got these prisons online....