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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One comment on “New rules would have major impact on most Canadian cannabis businesses
  1. Bobbi on

    Smartest move yet is letting go of their Stranglehold on production. The large Licensed Producers have already showen their inability to produce safe or quality product. That was obvious from the Lessons Learned in Colorado, but who learns lessons from history?!

    Reply

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