New Health Canada Regulations for Cannabis Businesses

Recreational marijuana is set to be legalized across Canada as of October 17, 2018. Shortly after Bill C-45 received Royal Assent, Health Canada announced regulations that will be come into effect with the Cannabis Act.
Categories: Business Insurance, Business Insights
Jul 4th, 2018 | By: CapriCMW

Recreational marijuana is set to be legalized across Canada as of October 17, 2018. Shortly after Bill C-45 received Royal Assent, Health Canada announced regulations that will be come into effect with the Cannabis Act. The regulations detail the federal framework for the production, sale, distribution, and import/export of cannabis in Canada. 

Health Canada's 390-page report provides clarification to many uncertainties for businesses entering the legal cannabis industry: 

  • Hemp cultivators will be permitted to sell plants (flowers, leaves and branches) to licensed processors for CBD extraction. Previously, only hemp fiber and seed intended for food products were allowed to be sold. 
  • Outdoor cultivation will be permitted for licensed producers.
  • Those with seeds originating from the black market will be allowed to use and sell them by submitting a declaration with their license application.
  • Those charged with non-violent cannabis convictions will not be banned from being licensed.
  • As anticipated, strict requirements for branding and packaging will be imposed. Cannabis must be sold in sealed, child-resistant, opaque or translucent plain packaging with a red cannabis symbol and a yellow warning label. There are specific requirements for sizing and placement of logos, warnings and THC content.
  • Directors and officers of cannabis companies as well as master growers will require security clearance to operate.
  • The new licensing regime will include six classes (cultivation, processing, analytical testing, sale, research and cannabis drug license) along with subclasses including micro, standard and nursery cultivation.  There will be no limit on the number of licenses an individual can possess. 

The full regulations will be published on July 11, 2018, and are available upon request by email, phone or mail:

  • cannabis@canada.ca
  • 1-866-337-7705
  • Cannabis Legalization and Regulation Branch
    Address locator 0602, Health Canada
    Ottawa, ON K1A 0K9

 

For information and resources related to insurance and risk management, please contact a CapriCMW Risk Advisor

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