Canada: New Cannabis Licence Regime And Transition Of Existing Cannabis Licences

The Cannabis Regulations1 under the Cannabis Act 2, which will come into force on October 17, 2018, set out the following classes of licences that will authorize activities in relation to cannabis:

  1. a licence for cultivation;
  2. a licence for processing;
  3. a licence for analytical testing;
  4. a licence for sale;
  5. a licence for research; and
  6. a cannabis drug licence.

A detailed summary of the authorized activities for each class of licence are set out in Schedule "A" hereto.

The existing licensing regime authorizes activities in relation to cannabis under the Access to Cannabis for Medical Purposes Regulations3 (ACMPR) and the Narcotic Control Regulations4 (Narcotic Control Reg) to the Controlled Drugs and Substances Act.5

The ACMPR (in respect of licensed producers) and the Narcotic Control Reg (in respect of licensed dealers) do not set out specific classes or subclasses of licences in the legislation; however each licence issued specifies the activities that are authorized under such licence.

Schedule "B" below identifies how existing licensed producer licences issued under the ACMPRs and licensed dealer licences issued under the Narcotic Control Reg will be transitioned under the new Cannabis Regulations.

SCHEDULE "A"

Classes of licences under the Cannabis Regulations to the Cannabis Act

Licence for cultivation:

Potential subclass and subclass restrictions (if any) Potentially authorized to

Authorized sales
Licence for micro-cultivation

Must clearly delineate a surface area that does not exceed 200 m2 in which all the cannabis plants, including all the parts of the plants, must be contained; and must cultivate, propagate or harvest cannabis plants only from that surface area.

If the surface area consists of multiple surfaces, such as surfaces arranged above one another, the area of each surface must be included in the calculation of the total surface area.
  • possess cannabis
  • obtain dried cannabis, fresh cannabis, cannabis plants or cannabis plant seeds by cultivating, propagating and harvesting cannabis
  • for the purpose of testing, to obtain cannabis by altering its chemical or physical properties by any means
  • sell cannabis
  • to sell and distribute dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds to any of the following:

    • a holder of a licence for micro-cultivation or standard cultivation, for processing, for analytical testing, for research, or a cannabis drug licence;
    • the Minister;
    • a person to which an exemption has been granted by the Minister when, in the opinion of the Minister, an exemption is necessary for a medical or scientific purpose or is otherwise in the public interest; or
    • federal or provincial testing laboratories.
  • to sell and distribute cannabis plants and cannabis plant seeds to a holder of a licence for a nursery.
  • to sell and distribute cannabis plants and cannabis plant seeds, that are cannabis products, to:

    • a holder of a licence for sale, or
    • a person authorized to sell cannabis under a provincial Act that contains specific legislative measures.
  • to send and deliver cannabis plants and cannabis plant seeds, that are cannabis products, to the purchaser of the products at the request of:

    • a person authorized to sell cannabis under a provincial act that contains specific legislative measures, or
    • a holder of a licence for sale.
Licence for standard cultivation
Licence for a nursery
  • possess cannabis
  • obtain cannabis plants or cannabis plant seeds by cultivating, propagating and harvesting cannabis
  • for the purpose of testing, to obtain cannabis by altering its chemical or physical properties by any means
  • sell cannabis
  • to sell and distribute cannabis plants and cannabis plant seeds to any of the following:

    • a holder of a licence for cultivation, for processing, for analytical testing, for research or a cannabis drug licence;
    • the Minister;
    • a person to which an exemption has been granted by the Minister when, in the opinion of the Minister, an exemption is necessary for a medical or scientific purpose or is otherwise in the public interest; or
    • federal or provincial testing laboratories.
  • to sell and distribute cannabis plants and cannabis plant seeds, that are cannabis products, to the following:

    • a holder of a licence for sale; or
    • a person authorized to sell cannabis under a provincial Act that contains specific legislative measures.
  • to send and deliver cannabis plants and cannabis plant seeds, that are cannabis products, to the purchaser of the products at the request of:

    • a person authorized to sell cannabis under a provincial Act that contains specific legislative measures; or
    • a holder of a licence for sale.

Licence for processing:

Potential subclass and subclass restrictions (if any) Potentially authorized to Authorized sales
Licence for micro-processing

A holder of a licence for micro-processing must not possess, in a calendar year, cannabis of one or more classes of cannabis — other than cannabis plants and cannabis plant seeds — that has been sold or distributed to them the total amount of which, as determined in accordance with the table to this section, is equivalent to more than 600 kilograms (kg) of dried cannabis.
  • possess cannabis
  • produce cannabis, other than obtain it by synthesis or cultivating, propagating or harvesting it
  • sell cannabis
  • to sell and distribute cannabis to any of the following:

    • a holder of a licence for processing, for analytical testing, for research, or a cannabis drug licence;
    • the Minister;
    • a person to which an exemption has been granted by the Minister when, in the opinion of the Minister, an exemption is necessary for a medical or scientific purpose or is otherwise in the public interest; or
    • federal or provincial testing laboratories.
  • to sell and distribute the following cannabis to a holder of a licence for micro-cultivation or standard cultivation:

    • dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds; or
    • any cannabis that was obtained or produced for the purpose of conducting testing that is necessary to determine the chemical characterization of cannabis.
  • to sell and distribute the following cannabis to a holder of a licence for a nursery:

    • cannabis plants and cannabis plant seeds; or
    • cannabis that was obtained or produced for the purpose of conducting testing that is necessary to determine the chemical characterization of cannabis.
  • to sell and distribute cannabis products to the following:

    • a holder of a licence for sale; or
    • a person authorized to sell cannabis under a provincial Act that contains specific legislative measures.
  • to send and deliver cannabis products to the purchaser of the products at the request of:

    • a person authorized to sell cannabis under a provincial Act that contains specific legislative measures; or
    • a holder of a licence for sale.
Licence for standard processing
  • possess cannabis
  • produce cannabis, other than obtain it by cultivating, propagating or harvesting it
  • sell cannabis

Licence for sale:

Potentially authorized to Authorized sales
  • possess and sell cannabis products to clients in accordance with the Regulations
  • to sell and distribute cannabis products to any of the following:

    • to a client or, if applicable, to a named responsible adult in accordance with the Regulations;
    • a holder of a licence, other than a licence for cultivation;
    • the Minister; or
    • a person to which an exemption has been granted by the Minister when, in the opinion of the Minister, an exemption is necessary for a medical or scientific purpose or is otherwise in the public interest.
  • to sell and distribute dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, that are cannabis products, to a holder of a licence for micro-cultivation or standard cultivation.
  • to sell and distribute cannabis plants and cannabis plant seeds, that are cannabis products, to a holder of a licence for a nursery.
  • to sell and distribute cannabis products, other than cannabis plants and cannabis plant seeds, to a hospital employee if the employee's possession of the cannabis product is for the purpose of, and in connection with, their duties.

Licence for analytical testing:

Potentially authorized to Authorized sales
  • possess cannabis
  • obtain cannabis by altering its chemical or physical properties by any means
No sale activities are permitted.

Licence for research:

Potentially authorized to Authorized sales
  • for the purpose of research, to possess, produce, transport, send or deliver cannabis between the sites that are set out by the licence
  • the sale of cannabis plants and cannabis plant seeds
  • sale of cannabis plants and plant seeds is authorized to any of the following:

    • a holder of a licence for cultivation or a cannabis drug licence, another holder of a licence for research;
    • the Minister; or
    • a person to which an exemption has been granted by the Minister when, in the opinion of the Minister, an exemption is necessary for a medical or scientific purpose or is otherwise in the public interest.

Cannabis drug licence:

Potentially authorized to Authorized sales
  • possess cannabis obtained in accordance with the Regulations
  • produce (which does not include obtaining cannabis by cultivating, propagating or harvesting it) or sell a drug containing cannabis
  • may sell or distribute the drug containing cannabis (provided the drug has been approved by Health Canada) only to:

    • another holder of a cannabis drug licence;
    • federal or provincial testing laboratories;
    • a holder of a research licence or an analytical testing licence;
    • the holder of a licence from which the holder of the cannabis drug licence received the drug, if the drug is sold or distributed for the purpose of its return;
    • a holder of a licence or a licensed dealer, if the drug is sold or distributed for the purpose of its destruction;
    • a pharmacist;
    • a practitioner;
    • a hospital employee;
    • a person to which an exemption has been granted by the Minister when, in the opinion of the Minister, an exemption is necessary for a medical or scientific purpose or is otherwise in the public interest; or
    • the Minister.

SCHEDULE "B"

Current licences under the ACMPR and Narcotics Control Reg

Licence type Authorized activities Transition to the class of licence under the Cannabis Regulations
Access to Cannabis for Medical Purposes Regulation – Licensed producers
Licensed producers are authorized for any one or more of the authorized activities. The production of fresh or dried marijuana, or marijuana plants or seeds Licence for cultivation
The production of cannabis oil or cannabis resin Licence for processing
The sale of cannabis plants, seeds, fresh or dried cannabis, or cannabis oil to medical users, etc. Licence for sale
Narcotics Control Regulations – Dealer licences
Licensed dealers are authorized for any one or more of the authorized activities in respect of cannabis and/or other controlled substances. The cultivation of marijuana for scientific purposes Licence for research
The obtaining of extracts from samples of cannabis for the analysis of cannabinoids Licence for analytical testing
The production, making or assembly of a test kit containing cannabis Licence for processing
The production of cannabis for the purpose of conducting testing to determine its chemical characterization Licence for processing
The possession, sale or distribution of a drug containing cannabis Cannabis drug licence
The cultivation, gathering or production of cannabis for scientific purposes Licence for research

Footnotes

1 Cannabis Regulations, SOR/2018-144.

2 Cannabis Act, S.C. 2018, c.16.

3 Access to Cannabis for Medical Purposes Regulations, SOR/2016-230.

4 Narcotic Control Regulations, C.R.C., c. 1041.

5 Controlled Drugs and Substances Act, S.C. 1996, c.19.

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.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
Stewart McKelvey
Norton Rose Fulbright Canada LLP
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Stewart McKelvey
Norton Rose Fulbright Canada LLP
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions