< Back

COVID - 19 : AGCO Regulation Updates  for Ontario Cannabis Retailers

Please visit this page frequently as I will be making live updates as information becomes readily available that may affect Ontario retailers.  – April 3, 2020: 1:30pm PST

 

UPDATE: 

Original Memo from H+K FOUND HERE.

Ontario Extends Business Closures – Cannabis Impacts


Context
Today, following the advice of the Chief Medical Officer of Health, the Ontario government has announced that it is reducing the list of businesses classified as essential and ordering more workplaces to close, including licensed cannabis retailers.  Licensed cannabis producers appear to remain exempt from mandatory shutdown.  As usual, businesses should consult legal counsel to ensure they are compliant with the order which can be found here.
 
Impacts on Licensed Retailers
Based on the language in today’s order, and conversations with government representatives this afternoon, it appears as though all licensed cannabis retailers will be required to shut down operations as of 11:59 p.m. Saturday, April 4, 2020.  This includes all (click-and-collect) pickup services.

The order lists specific sectors that can continue to offer “curb side pick-up or delivery”.  Cannabis is not listed as one of the sectors.  From our discussions with government today it appears as though cannabis was not included in the list of sectors eligible for curbside pickup because such a move would require a regulatory change under the Cannabis License Act
 
 
Government officials are coordinating the possibility of fast tracking such a regulatory change and are aware of potential negative impacts on private retailers.
 
The preamble to today’s announcement also states that the order:

“Does not preclude the provision of work and services by entities not on this list either online, by telephone or by mail/delivery.”

Again, enabling private sector direct delivery of cannabis will require regulatory change.  Officials are exploring the government’s appetite for a temporary expansion of retail cannabis delivery to the private sector.

Government officials have committed to remain in close contact through the course of this weekend and next week as they explore remedial action to support licensed cannabis retailers including potential regulatory change to enable curbside pickup and private delivery.  Hill+Knowlton will continue our discussions with government as they look at the possibility of these two regulatory changes over the coming days.

Licensed Cannabis Producers
It appears licensed producers are protected from closure as today’s order exempts "agriculture and food production".  This is defined as:
  • Businesses that produce food and beverages, and agricultural products including plants, including by farming, harvesting, aquaculture, hunting and fishing.
  • Businesses that process, manufacture or distribute food, beverages, crops, agricultural products, animal products and by-products.
  • Businesses that support the food or agricultural products supply chains and the health and safety of food, animals and plants.
 
For more information, please contact:


Omar Khan
National Cannabis Sector Lead
Hill+Knowlton Strategies
Omar.khan@hkstrategies.ca 

 

-------------------------

Earlier this week, Cova was approached by the AGCO through our compliance consultant (H+K) to seek recommendations on any AGCO Standards that would be creating undue burden in face of COVID-19. 

Within minutes of sending out the request to all our Ontario retailer contacts, my inbox was flooded with recommendations and ideas (despite the fact that I sent the email a few hours before midnight). The following items below have been presented to the AGCO, with changes already taking place. Thank you AGCO, and thank you Ontario cannabis retailers for your recommendations as we collectively adapt and survive in our industry. 

 

Remote Inspections

As of last week all pre-inspection activities now done remotely over FaceTime and grouped into one inspection versus two. 

 

On Site Inspections

On hold until pandemic passes.

 

Allowing Ability to Leave Doors Open

Inspectors have been asked to use discretion and to work collaboratively with licensees. The sense is that aggressive enforcement is on hold.

 

Reporting/Submission Dates

AGCO to automatically extend licenses for 3 months

AGCO will be collaborative and accommodating on other reporting requirements

Inventory of all reporting requirements and an official communication on changes should be forthcoming soon.

Compliance officials directed to be accommodating

 

Criminal Background Checks

Until further notice new hires will be allowed pending background checks

 

Vending Machines

Federal cannabis act currently prohibits self serve.

 

Curbside pickup

Needs amendment to Cannabis Licensing Act. TBD.

 

Delivery

Government not AGCO decision. 

AGCO won’t stand in the way. Bars and restaurants may be allowed to deliver alcohol. TBD.

 

Want to learn more about incorporating responsible retail into your operations amidst COVID-19?

While cannabis sales surge amid the COVID-19 outbreak, consumers are not only stockpiling cannabis but changing the way they shop too. With a shift to online ordering to limit human contact, cannabis retailers need to rethink how they can continue to serve customers and deliver cannabis to people who need it the most. Join us for an educational webinar to learn more.

REGISTER NOW

Subscribe for the Latest:

Related posts