Canadian CANNAINVESTOR Magazine December 2017 | Page 203

203

Ontario

On November 1, 2017, Ontario became the first province to introduce recreational cannabis legislation by tabling Bill 174: An Act to enact the Cannabis Act, 2017, the Smoke-Free Ontario Act, 2017 and to repeal two Acts and to make amendments to the Highway Traffic Act respecting alcohol, drugs and other matters (the Road Safety Statute Law Amendment Act, 2017). The Province’s regulations will build on and clarify the proposed federal legislation, Bill C-45.

Ontario has legislated that the minimum age for purchase and consumption will be set as 19, which is in line with the minimum age for alcohol purchase and consumption in the Province. Consumption of cannabis will be prohibited in public and will only be legal in private residences although the government has indicated that it will be considering lounges and spaces for consumption in the future. The Province has also indicated that it plans to introduce new harsher penalties for illegal sales and distribution.

Ontario’s retail structure will be government-run. The body that will be responsible for sales and distribution is the Ontario Cannabis Retail Corporation (“OCRC”). The OCRC was established as the exclusive distributor of cannabis in Ontario through Bill 174, Schedule 2. The OCRC will sell through standalone stores and online sales.

Ontario will initially open 40 stores for the start of the market in July 2018, will open 80 by July 2019, and is set to open 150 stores across the Province by 2020. These stores will be supplemented by online sales.