regulations made under any of those Acts.
Once Health Canada has issued a notice of violation to the licensed producer detailing the contravention or offence, the person named in the notice may either: (i) accept the penalty in the notice; (ii) if the amount of the penalty is $5,000 or more, request to enter into a compliance agreement with Health Canada; or (iii) request a review of the violation by the Minister. The option to enter into a compliance agreement is not available for offences involving the sale or distribution of illicit cannabis.
Generally, Health Canada will provide the alleged offender with an opportunity to respond as to why the license should not be suspended or revoked, as the case may be. There is insufficient guidance on what actions should be taken due to no such cases having been resolved yet, however, it would seem that an action plan of steps to rectify the non-compliance and ensure that the licensed producer remains compliant is useful. The reasons for a suspension must no longer exist before a license can be reinstated. As there have been no license revocations to date, the current and ongoing situations relating to Bonify and Agrima will serve as precedents for licensed producers in the cannabis industry as to the stringency of Health Canada’s decisions, what actions should be taken to successfully resolve suspensions, and important measures to ensure continuing compliance.
The Cannabis Law Group at Torkin Manes LLP will be monitoring these cases as they develop in order to better assist clients in understanding their compliance obligations. For more information, please contact our Cannabis Law Group at cannabis-law.ca.
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