Just weeks after passing Bill C-45 and legalizing recreational cannabis on June 19, 2018, the Canadian government is already ironing out the details for its Oct. 17, 2018, implementation with new regulations for its emerging marijuana industry.
For now, accessing the Cannabis Act’s new regulations, announced Wednesday, June 27, 2018, may take more than a quick google search. Until they’re published in the Canada Gazette, Part II in July, the Canadian government instructs anyone looking for the regulations to request them by email ([email protected]) or phone (866-337-7705). The Canada Gazette is the Canadian government’s official newspaper and publishes legislation, enacted laws and proposed rules by Parliament and government agencies.
After obtaining and reviewing the new regulations at Marijuana.com, we’ve identified five key details to help you get an idea of what Canada’s cannabis industry and culture might looking like moving forward.
1. No Cap On Dry-Flower Potency
Under the new regulations, THC cannot be added to dried products. But there will also be no cap on the percentage of THC or any other cannabinoid found in a cannabis flower. These regulations were created with the intention of creating a robust, competitive legal market.
2. Other Products Will Have a Potency Cap
While there won’t be THC limits on flower, it doesn’t mean that all cannabis products will be free of a percentage cap. THC yield quantity in all “discrete unit” products that are “administered orally, rectally, vaginally, or topically” cannot exceed 10 milligrams. There doesn’t appear to be an exact definition of what a “discrete unit” means, it could mean cannabis oil or infused-topical.
3. (Very) Plain Packaging is Required
Product packaging must now adhere to strict guidelines on logos, colors and branding. Packaging must also include mandatory health warnings, specific information about the product, and a standardized cannabis symbol. The goal is to avoid appealing to minors, while also leaving room for companies to have logos and some branding.
4. Key Investors Might Find Themselves in the Spotlight
The new regulations include a number of record-keeping requirements for licensed canna-businesses, including information on key investors. For example, all licensed cultivators, processors, and retailers will need to provide an annual report on all financial transactions with their key investors. This means that any investor in a position of control is subject to potential federal scrutiny as it pertains to their dealings with the license holder.
5. License Regulations Create a Space for Boutique Shops
One of the most anticipated aspects of these new regulations is the designation of licenses for micro-cultivators — boutique operations growing small-scale in an area of no more than 200 square meters — and micro-processors, who process no more than 600 kilograms of dried cannabis or equivalent amounts per year. This is a win for small, boutique canna-businesses, many of which are already applying for licenses to operate lawfully in Canada.
These regulations will take effect on Oct. 17, 2018.