Ontario plans to increase the number of stores that licensed cannabis retail operators can operate to 150.
These plans were shared in a new backgrounder from the Attorney General and Solicitor General on Enhancing Access to Justice Act, 2023.
Proposed Regulatory Changes
To respond to the growth of the legal cannabis retail market and illicit cannabis stores, the province is making amendments to Ontario Regulation 468/18 under the Cannabis License Act, 2018 to increase the number of stores that licensed retail operators and their affiliates can operate from 75 to 150.
Government is exploring different enforcement options against illicit online cannabis sales. Ontario currently has about 1,800 retail cannabis stores listed as authorized to open.
High Tide President and CEO Raj Grover says, “I am thrilled to see Ontario is moving to combat illegal cannabis sales, by increasing the number of stores that licensed retail operators and their affiliates can operate…”
The Ontario government is also proposing the following cannabis legislative changes:
- Ban the cultivation of recreational cannabis in homes that offer childcare services through proposed changes to the Cannabis Control Act, 2017
- Make changes to the Cannabis License Act, 2018 and Cannabis Control Act, 2017 that would support negotiations with First Nations communities on the regulation of cannabis on reserves
If passed, government says these changes would further support Ontario’s priorities to combat the illicit cannabis market, keep communities safe, and protect children and youth.
THC Testing Program
Other changes in the province are also underway. Ontario Cannabis Store announced it will be launching a pilot program in January to test THC.
In a letter to licensed producers, Denny Palarchio, Chief Operating Officer, OCS said, “One of the core value propositions of the legal cannabis framework is that it provides adults with safe access to recreational cannabis products that are traceable and trusted. The OCS is aware of recent reports and online petitions suggesting THC values on some regulated dried flower products may be overstated.”
In 2022, OCS put forward recommendations to the federal government to establish national standards for third-party testing.
To properly evaluate industry claims that THC values may be overstated, the OCS is undertaking a temporary THC testing program for dried flower products, including pre-rolls, starting January 4, 2024.
How the Program Works
OCS will hold and test select dried flower products, including pre-rolls, that are labeled with high THC. There is no cost to licensed producers for initial testing. If THC values fall within an acceptable variance of the label claim (plus or minus 15%) as determined by OCS, products will be released for sale with no further action required. Products that fall outside acceptable variance levels will be returned to producers for re-testing and re-labeling.
OCS says the impact of this program on speed to market will be minimal. If inbound product is pulled for testing, it will be held, unavailable for sale, for three to five days.