Sample Sidebar Module

This is a sample module published to the sidebar_top position, using the -sidebar module class suffix. There is also a sidebar_bottom position below the menu.

Sample Sidebar Module

This is a sample module published to the sidebar_bottom position, using the -sidebar module class suffix. There is also a sidebar_top position below the search.

The Cannabis Supply Chain

Details
Category: Legal Forum

While the Cannabis Act legalized recreational cannabis, it also created a comprehensive scheme of prohibitions regarding possession and distribution (including transportation and delivery) of cannabis. Transport companies and individuals must learn the regulatory regime to ensure compliance and avoid serious and costly penalties.

Learn the Dos and Don’ts. The Act imposes restrictions on various activities, which the Act characterizes as “criminal.” However, there are exceptions to these prohibitions, which transportation companies can rely upon to operate in the cannabis supply chain.

Sections 8 and 9 of the Cannabis Act prohibit the following:

• Possession and distribution of illicitcannabis;
• Possession in a public place (including vehicle located in a public place) and distribution of more than 30 grams of cannabis; and
• Possession of cannabis by an organization or distribution of cannabis to an organization.

The Act also characterizes the possession of cannabis for the purpose of distribution as criminal.8 Distribution is defined as including “administering,giving, transferring, transporting, sending, delivering, providing or otherwise making available in any manner, whether directly or indirectly, and offering to distribute.”

Possession and distribution of illicit cannabis is criminal – only transport licit cannabis. The Act uses the same broad Criminal Code9 definition of “possession.”
In addition to actual possession, “possession” also includes knowingly having something in the custody of another person. Ensure that all cannabis being transported is legal.

Although the Act legalized recreational use of licit cannabis, possession of illicit cannabis is illegal. Illicit cannabis is cannabis that is sold, produced or distributed by a person prohibited from doing so. By contrast, licit cannabis is cannabis that is lawfully produced by an LP. Ensure that any cannabis being  transported is licit and compliant with all regulatory requirements. As a starting point, only transport cannabis produced by LPs.

There are limits on possession and distribution of cannabis. The Cannabis Act limits possession of dried cannabis in a public place to 30 grams. The definition
of “public place” includes any vehicle located in a public place or in any place open to public view.10 A strict reading of this provision imposes a prima facie
restriction on the transportation of cannabis; however, there are exceptions to this rule, which allow companies to commercially transport cannabis.

There are prohibitions on distribution of cannabis to an organization. The Act prohibits an organization from possessing cannabis. The Criminal Code defines
organization as:11

• A public body, body corporate, society, company, firm, partnership, trade union or municipality; or

• An association of persons that:

  •  Is created for a common purpose;
  • Has an operational structure; and
  • Holds itself out to the public as an association of persons.

This section bans all organizations other than LPs from possessing cannabis. This would include transportation companies. However, the same exceptions to this rule apply, which allow carriers to commercially transport cannabis.

There are exceptions allowing the transportation of cannabis. The Act provides exceptions to the prohibitions discussed above, namely:

• Parties acting as agents or contractors on behalf of LPs; and
• Where the activity is authorized by provincial legislation.

The Act allows persons acting as agents or contractors of persons authorized to sell, distribute or produce cannabis to carry out activities that are otherwise prohibited under the Act.12 This exception includes carriers acting as agents and contractors for LPs. It’s prudent to ensure carrier operations are compliant with the regulatory conditions imposed on the LPs with whom they contracted. Either request proof of compliance or a warranty of same. This proof/warranty should be clear and in writing.

A cannabis tracking system has been established. The Act13 provides for the establishment and maintenance of a cannabis tracking system (CTS) to monitor the flow of cannabis to meet regulatory requirements under the Act.

The CTS addresses the following:14
• Monthly Reporting by Federal LPs;
• Inventory Reporting; and
• Health Care Practitioner Reporting. Care should be taken to ensure compliance, where necessary, with the CTS.