Ontario unveils plans to regulate cannabis

The Ontario government has announced the future regulatory framework for the sale and consumption of cannabis, which includes online ordering and around 150 dispensaries.

The plan revealed last Friday includes some key rules:

• 40 dispensaries will open in July 2018, 80 on July 1, 2019, rising to 150 in 2020
• online purchasing available from July 2018
• the minimum age for consuming, purchasing and possessing cannabis for recreational use will be 19, beyond the federal recommendations 18 years old.

Ontario is the first Canadian province to detail its future regulatory framework. can be found in short version here.

Many concerns

The province has decided to entrust management of the future cannabic stalls and online sales platform to the Ontario Liquor Control Board (LCBO).

This state monopoly will attack the many existing cannabis dispensaries head-on. Professionals who have been in the cannabis business for many years, and who have worked towards Canadian legalization, will find themselves excluded from the future industry.

«These cannabis dispensaries are illegal and will be closed,» said Attorney General Yasir Naqvi when announcing the legalization plan. «Consider yourselves warned».

The government is expected to continue its «proactive crackdown strategy» with local police forces to eliminate old dispensaries. New government dispensaries will be strategically placed in areas where there is a high concentration of dispensaries today.

The cannabis grey market has expanded rapidly in Toronto since legalization was announced. It is estimated that around a hundred are currently open.

However, the 40 dispensaries planned will struggle to meet the demand for legal cannabis. To give an order of magnitude, there will be 1 dispensary for every 240,000 inhabitants of cannabis-using age, or 1 dispensary for every 25,000 users. according to Canadian statistics of cannabis consumption. At 150 dispensaries, there will still be 1 dispensary for every 6,400 users. If the legal supply is insufficient, consumers will continue to buy on the black market.

In the meantime, the government will also have to train dispensary staff in both purchasing and sales.

«Dispensary staff need to be able to determine a person's experience level and tolerance, and recommend appropriate products to ensure they have a good experience.» said Jeremy Jacob, president of the Canadian Association of Medical Cannabis Dispensaries.

«That level of care and attention isn't present in liquor stores, and it's not something you can create with a snap of your fingers, and all of a sudden be sure that people are getting the advice they need.».