Health Canada Explores Removing ‘Unnecessary’ Requirements in Cannabis Regulations

Various cannabis drinks in Toronto on Aug. 13, 2021. (Giordano Ciampini/The Canadian Press)

Health Canada is considering relaxing regulations in the production, sale, and trade of cannabis, saying licence holders are arguing that licensing requirements “may not be necessary or could be streamlined.”

In a Notice of Intent published in the Canada Gazette—the official newspaper of the federal government—Health Canada said it is seeking feedback from cannabis licence holders and other stakeholders on potential amendments to the Cannabis Regulations (CR) aimed at reducing regulatory burden.

The proposal comes less than five years after cannabis was first legalized in Canada. Health Canada said the industry has “matured” and that it “recognizes there may be regulatory measures that could be made more efficient and streamlined without compromising the public health and public safety objectives.”

Health Canada announced plans for red tape reduction last month following numerous bankruptcies of marijuana businesses that are blamed on federal taxes and regulations for hurting the industry.

The department said it’s most interested in receiving feedback on possible regulatory amendment in five areas: licensing, personnel and physical security measures, production requirements, packaging and labelling requirements; and record keeping and reporting for cannabis licence holders.

“Health Canada is also interested in feedback on regulatory measures that may be duplicative, redundant, or particularly onerous, and where there are opportunities to promote efficiencies,” the Notice of Intent stated.

To guide input from interested parties, Health Canada provided a list of questions that it’s interested in receiving feedback on. The following are some of the questions provided:

• Are there any activities with cannabis that are not currently authorized under existing licences that could be authorized?
• Are there certain production requirements that could be changed or eliminated for licensed processors that are limited in what activities with cannabis they are authorized to undertake (for example only authorized to store cannabis products)?
• Do you have any suggestions to simplify the requirements to include delta-9-THC and CBD content information on product labels?
• Should Health Canada remove the requirement to maintain a record of key investors?

‘Different Priorities’

Health Canada said in the Notice of Intent that regulatory requirements as stipulated in the Cannabis Act aim to reduce the appeal of cannabis products to young persons and lower the risk of accidental consumption or overconsumption. However, the department also said that it “has heard that there are product requirements that are more burdensome than those in analogous frameworks,” and it is considering regulatory changes for some product requirements that would remove “unnecessary burden.”

Health Canada didn’t provide a definition of what is considered an unnecessary burden or what measures it will be using to determine that.

Dafna Kahana, a psychiatrist at the Toronto-based Centre for Addiction and Mental Health (CAMH), said a review of the Cannabis Act should continue to prioritize public health priorities.

“This is important, as the cannabis industry might have different priorities,” she told The Epoch Times, referring to Canada’s Lower-Risk Cannabis Use Guidelines, c0-produced by CAMH.

Kahana said while some data has shown “no pronounced increase” of cannabis use in youth, there remains “very limited” evidence, and more data is needed about the rates and other negative effects of cannabis, such as substance-related disorder and cannabis-induced psychosis.

When asked about public concerns regarding Health Canada exploring possible relaxation of cannabis regulations, CAMH noted that its review will be “in keeping with the original policy principles.”

“Health Canada recognizes there may be regulatory measures that could be made more efficient and streamlined without compromising the public health and public safety objectives of the Act,” a spokesperson told The Epoch Times.

Following the publication of the Notice of Intent, the department has opened a 60-day public comment period from March 25 until May 24, 2023.