Sale of Cannabis for Non-Medical Purposes

Sale of Cannabis for Non-Medical Purposes

In order to further expand Canada’s existing cannabis industry, the Government of Canada has set a deadline of July 2018 to implement new regulations and guidelines. These new regulatory oversights would take the existing medical cannabis and marijuana industry and expand it to include recreational usage.

Health Canada has created the Proposed Cannabis Act which was developed using the existing medical marijuana regulations. The Act outlines several different areas of the cannabis industry including cultivation, processing, and the Sale of Cannabis for Non-Medical Purposes.

The goal of the Act is to help create a highly competitive cannabis industry featuring high quality and a diverse range of products. The secondary objective of the Act is to have the legalized industry outcompete with the illegal industry and essentially eliminate it.

In order to sell cannabis to the public for non-medical purposes, one would need to obtain a license for the Sale of Cannabis for Non-Medical Purposes. This license would authorize the sale of cannabis and related products to Canadian adults in territories and provinces that do not have their own framework for the distribution and sale to the general public in effect already.

Under the Act, territories and provinces have the option to oversee and license the distribution and sale of marijuana and cannabis products for non-medical purposes to adults. Should a territory or province fail to establish their own appropriate safeguards for a recreational retail cannabis industry to allow for the legal purchase of marijuana and cannabis products by July 2018, then the Act would allow for licensing in these areas.

The Ministry of Health would then be responsible to issue licenses for the Sale of Cannabis for Non-Medical Purposes. In addition, the Ministry of Health would be responsible for application denials and license renewals, amendments, suspensions, restrictions, and revocations. These measures could potentially be on a temporary basis until such time the territory or province establishes their own framework for their retail cannabis industry.

A license for the Sale of Cannabis for Non-Medical Purposes would allow for the legal sale of cannabis and related products to adult consumers, so long as they are sourced from a federally licensed processor or distributor. The non-medical sale of cannabis would be conducted similar to the medical sale of cannabis – online, over the telephone, or via written order, and delivered securely using a courier or through the mail.

As with other licenses contained within the Act, a license for the Sale of Cannabis for Non-Medical Purposes would also authorize other related activities including:

  • Intra-Industry Sale to Other Federal License Holders
  • Transportation
  • Possession
  • Destruction
  • Storage
  • Research and Development

The Act purposes additional regulations to prevent the illegal sale to minors, as well as in territories and provinces which already have their own retail sales distribution systems.