On September 8th, Ontario announced its much-anticipated framework for the distribution and sale of recreational cannabis. This announcement makes Ontario the first province to outline a comprehensive response to the Federal government's plan to legalize cannabis by July 2018. Ontario's proposed approach largely mirrors the Province's approach to the sale of alcohol and tobacco.

Recreational cannabis sales will be overseen by the LCBO. However, you won't be seeing cannabis in your local liquor store anytime soon. Instead, recreational cannabis will available in new stand-alone, brick and mortar stores that are LCBO-subsidiaries, and through an online ordering service.

Timelines

  • By July 2018, the Province expects that 40 stores and online ordering will be operational. The Province then plans to gradually add stores, reaching 80 by July 2019 and 150 by July 2020.

Restrictions

  • Like alcohol and tobacco, the minimum age to purchase, possess and use recreational cannabis in Ontario will be set at 19.
  • Ontarians will not be able to use recreational cannabis in public places, at work, or in motor vehicles.
  • In terms of retail experience, cannabis will be sold in much the same way as tobacco. Stores will follow a "behind-the-counter" model, and self-service will not be available.

Impact on the Current Distribution Models

  • Ontario's proposed framework confirms that the Federal medical cannabis program will remain in place.
  • Additionally, the Province will be pursuing a coordinated strategy aimed at shutting down all illicit cannabis dispensaries.

What we don't know

While Ontario's announcement gives us more information than we currently have for other Provinces, there's much we still don't know:

  • Pricing and Taxation: Decisions on pricing and taxation will be made after further details are provided by the Federal government. However, both levels of government have indicated that discouraging black market sales will be a key consideration in pricing strategy.
  • Store Locations: Before determining store locations, Ontario will work with municipalities to ensure that community priorities are respected.
  • Designated establishments: Ontario has indicated that designated establishments for recreational cannabis consumption may be established in the future.

What's Next?

  • The Government of Ontario plans to publish official cannabis legislation later this year after engaging in consultations on the proposed framework with municipalities, Indigenous communities, and stakeholders.

About Norton Rose Fulbright Canada LLP

Norton Rose Fulbright is a global law firm. We provide the world's pre-eminent corporations and financial institutions with a full business law service. We have more than 3800 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.

Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.

Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

For more information about Norton Rose Fulbright, see nortonrosefulbright.com/legal-notices.

Law around the world
nortonrosefulbright.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.