A Look At Costs for Cannabis Regulation in Canada
The cannabis "light" will be turned on in Canada on October 17th. What does that mean, you ask? Well, on that day, recreational marijuana consumption will be legal throughout the entire country.
Why couldn't the US do this?
That is a debate for another day.
The Cannabis Act will also come into force on the 17th of October. The act will attempt to keep cannabis products in the hands of adults and out of the hands of children. Of course they also want to keep it out of the hands of criminals and the black market.
The Canadian Government will also work to recoup the costs of regulating the marijuana industry.
In simple English, the individuals or businesses that will benefit from this new industry will also be the ones that will contribute monetarily to this cause. This, in turn will reduce the cost to all Canadiens.
Health Canada recently hosted four online sessions with people in the industry This includes those who are or who have applied to be licensed producers. These sessions were designed to explain the proposal and to answer questions. The feedback Health Canada received focused primarily on the timing of implementing the proposed fees, the design of the annual regulatory fee, and the desire for additional service standards.
To make it fair for both the large and small players, the fees to get into the game will be scaled based on the size of the businesses. Some classes of licences—namely those for research, analytical testing and hemp production—will be exempt from fees.
Health Canada estimates that based on the market size and the number of licensed producers, they expect to recoup all monies for regulatory costs by 2021-2022.
I personally have a feeling that it will be sooner than that!