New rules would have major impact on most Canadian cannabis businesses

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, New rules would have major impact on most Canadian cannabis businesses

A new set of regulatory proposals has been released by Health Canada that would have wide-ranging implications for most businesses in Canada’s marijuana industry — and even many stuck in the gray market.

The regulations would facilitate the coming into force of the Cannabis Act – which is still subject to parliamentary approval – and the transition from the current legal framework that bans recreational marijuana and regulates medical marijuana.

The changes were released as part of a consultation paper that will be subject to public comment until Jan. 20, 2018.

The proposed regulations will have a major impact on a business if it’s involved in practically any area of the legal cannabis sector, including ancillary services and hemp production.

Other key takeaways:

  • Health Canada is soliciting feedback on whether people with histories of nonviolent, lower-risk criminal activity should be permitted to participate in the legal cannabis industry.
  • The regulations would permit both outdoor and indoor cultivation of cannabis, whereas currently outdoor production has not been permitted. However, cannabis would need to be stored and processed indoors.
  • The new rules propose four types of cultivation licenses: standard cultivation, micro-cultivation, industrial hemp and nurseries.
  • Micro-cultivation licenses are going to have a major impact on the marijuana industry in British Columbia because it potentially provides an avenue to bring thousands of gray-market growers into the regulated fold.
  • If a province or territory fails to establish a retail framework for recreational marijuana, the federal government could temporarily license the sale of cannabis to consumers, ordered over the phone, online or via written order.
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