British Columbia Cannabis Laws

Surrey Approves Cannabis Sales, Applications for Retail Stores to Open Soon

On April 8, 2024, British Columbia’s fastest-growing city and second-largest by population, Surrey finally allowed cannabis sales.

The Council unanimously approved a proposal policy that allows for up to two retail stores in each of the following Surrey communities – Whalley/City Centre, Guildford, Fleetwood, Newton, South Surrey, and Cloverdale.

Surrey will have a 60-day application window to receive applications for the 12 cannabis stores. Applicants will be evaluated based on:

• General compliance with the submission requirements of the RFEOI
• Location
• Separation distances
• Related experience of the operator
• Parking and access plan
• Visibility, lighting, and Crime Prevention Through Environmental Design elements
• Signage and façade design

In addition to these factors, cannabis retail stores must also not be within 200 meters of schools, community and recreation centers, and existing cannabis retail or production locations.

Cannabis Retail Stores Can Now Promote Cannabis Consumption Spaces

In a recent bulletin published on February 14, 2024, the Liquor and Cannabis Regulation Branch (LCRB) announced its plan to allow Cannabis Retail Store (CRS) and Producer Retail Store (PRS) licensees to promote public spaces for consuming cannabis or spending time after cannabis consumption.

The change is made to boost hospitality and tourism opportunities for the cannabis industry, as cannabis consumption inside dispensaries and retail stores is still prohibited. Instead, patrons will now have safe public places to consume cannabis products.

This also means adults can smoke or vape cannabis on public patios where smoking tobacco is already permitted (subject to local or Indigenous government bylaws and other rules).

• Minimum Age: Recreational cannabis can only be sold legally to adults older than 19 years of age. Possession Limits: Adults can carry up to 1 ounce (or approximately 30 grams) of dried recreational cannabis in public.
• Medical Use: Medical cannabis is regulated at a federal level and qualified patients 19 years of age or older can order medical cannabis from a federally licensed producer with a doctor’s written notice, online or by phone.
• Recreational Use: Non-medical cannabis retail sales began on October 17, 2018, after the Cannabis Act was passed.
• Consumption Areas: Cannabis consumption is generally permitted in public places where smoking tobacco is allowed. However, there are restrictions on smoking cannabis in many places (including inside public buildings, workplaces, within 6 meters of a bus stop, etc).
• Regulatory Organization: The Liquor and Cannabis Regulation Branch (LCRB) is responsible for the licensing and regulation of cannabis in British Columbia.
• Compliance Software: Cannabis retailers and dispensaries are required to upload reports via LCRB’s online cannabis licensing portal. This data is then included in the federal Cannabis Tracking System.
• Growing Regulations: Adults older than 19 years of age may grow up to 4 cannabis plants per residence. That said, landlords can restrict or prohibit growing cannabis on their property. Make sure to check your lease.

British Columbia Cannabis Laws

An overview of the medical and recreational marijuana laws in British Columbia.

Adults aged 19 and older may purchase up to 30 grams of dried cannabis which is equivalent to:

• 5 grams of fresh cannabis
• 15 grams of edible product
• 70 grams of liquid product
• 0.25 grams of concentrates (solid or liquid)
• 1 cannabis plant seed

Adults can have up to 1,000 grams of dried cannabis, or its equivalent, in a private location like their home.

British Columbia has set the minimum age at 19, the same as the minimum age for the purchase and consumption of alcohol and tobacco.

Licensed retailers may sell dried cannabis flowers, cannabis oils, edible cannabis products, cannabis extracts, cannabis topicals, and seeds.

Retailers may also sell cannabis accessories including rolling papers, bongs, pipes, vaporizers, and other products for the consumption of cannabis. Retailers can also sell gift cards to their locations.

Cannabis retailers may not sell tobacco, alcohol, snacks, or other non-cannabis items.

No. Minors may not enter a cannabis retail establishment.

Unless further restricted by the local government, cannabis retailers may operate between 9 a.m. and 11 p.m.

No. All cannabis products must be stored at your retail location.

Retailers are expected to collect a Provincial Sales Tax (PST) on every sale of cannabis, paid for by the retail customer. Licensees must register for PST with the Ministry of Finance.

Yes, cannabis retailers are allowed to deliver cannabis products from July 15, 2021.

Only cannabis retail store licensees and their employees will be authorized to deliver cannabis. Delivery is limited to residential addresses in B.C. or to curbside pickup between 9 a.m. and 11 p.m.

Only adults will be allowed to receive delivery orders, and those who appear to be under 19 will have to present two pieces of identification.

Yes. Non-medical cannabis retailers may not include the words “pharmacy,” “apothecary,” or “dispensary,” as these terms are linked to the selling of medicine. Non-medical cannabis retail store names must be approved by the LCLB.

Online sales are exclusively government-operated. The province of B.C. currently does not allow Click-and-Collect (order online, pick up in-store) for private non-medical cannabis retailers.

Retail Cannabis Licensing in British Columbia

Everything you need to know about opening a retail cannabis location in British Columbia.

British Columbia has decided not to place a cap on the number of retail licenses. In fact, one licensee can hold or have an interest in up to eight retail cannabis stores. Although the BC provincial government announced last year that this cap would be reviewed, there have been no updates since.

Additionally, local governments may limit the number of licenses permitted within their jurisdictions; they may also elect to not allow the retail sale of recreational cannabis. For instance, up until 2024, Surrey, the second biggest city in BC did not allow cannabis retailers. Don’t forget to check your local laws for the latest information.

The Liquor and Cannabis Regulation Branch (LCRB) regulates the non-medical or recreational cannabis industry in BC and is responsible for issuing the three main types of cannabis licenses:

• Producer Retail Store licence: Required by federal producers to sell cannabis and cannabis accessories in stores
• Cannabis Retail Store licence: Required to have a retail storefront
• Cannabis Marketing licence: Required by anyone who is involved in promoting/marketing cannabis to sell it

The LCRB has established an online application portal through which prospective BC cannabis retailers may apply. The LCRB portal also includes a tool that applicants can use to generate a custom BC cannabis retail license to-do list to help ensure your application is ready to submit.

In B.C. the application process includes evaluation by the LCRB, security screenings and financial stability checks, and local government approval. For these reasons, application timelines are very difficult to estimate.

The time it takes to process depends on the completeness of your application, the complexity of your proposed operation – including the number of employees who need to be screened – and ultimately the backlog and response time of local governments.

Yes, cannabis retail store licensees have to pay the following fees:

• Application fee: $7,500
• First-year licensing fee: $1,500
• Annual renewal fee: $1,500

These fees are non-refundable, although licensees may request a refund in case the application was submitted in error or for “exceptional circumstances beyond the applicant’s control”.

Licensed retailers may obtain recreational or non-medical cannabis only through the BC Liquor Distribution Branch (LDB). Retailers are not allowed to purchase any cannabis products directly from producers or any other sources.

Source

No, you may not sell cannabis with a liquor or tobacco license. However, you may apply for a cannabis retail license if you already have a liquor and/or tobacco license.

If you are awarded a cannabis retail license, you may NOT sell cannabis at your liquor or tobacco store. You must establish a separate storefront solely for non-medical cannabis sales.

Yes. Local governments that support non-medical cannabis retail stores must demonstrate their support for individual applicants by providing a council resolution to the LCLB.

Local governments will also have control over zoning and location requirements for cannabis retailers in their jurisdictions.

No, previously operating an illegal dispensary will not automatically disqualify you from receiving a license. All applicants will be assessed using the same criteria, which includes a background check and a greenlight from your local government.

Yes, retail applicants may also have an interest in producers/processors. However, if there is a close financial or other association between a producer and retailer, the LCRB will restrict the relationship to ensure diversity in the marketplace.

Although the LCRB does not issue licenses for “consumption +lounges” specifically, retail licensees are allowed to promote a place for cannabis consumption. The change was announced by the LCRB in a bulletin published on February 14, 2024.

British Columbia Dispensary Laws

Learn how to remain compliant with British Columbia cannabis retail laws.

British Columbia has a specific license called the Cannabis Marketing License. This license allows holders to promote and sell non-medical cannabis retail store licensees and the adult public in B.C. This is not a requirement for retail store owners.

Instead, the federal Cannabis Act and Cannabis Regulations have strict rules around branding and advertising of cannabis. Canada's federal cannabis law specifically outlines five main marketing and advertising restrictions. These include:

• No testimonials or personal endorsements;
• Cannot appeal to minors or advertised anywhere minors may frequent;
• No advertisement can include price information unless it is at the point of sale;
• No depiction of a person, character, or animal (whether real or fiction) can be used to promote cannabis;
• Cannabis advertising cannot relate the substance to a glamorous or "cool" lifestyle.
• Cannabis products may not be visible from outside the store.

For B.C. specifically, the LCBR has highlighted specific advertising and branding rules for retail store owners in Section 5 of the Cannabis Retail Store Licence Terms and Conditions Handbook:

• You can't use words, designs, or branding that look like government-related cannabis branding.
• Advertising and branding should not promote intoxication and getting high.
• Your advertising must clearly show what type of business you are running.
• You can't use terms or symbols suggesting you sell medical cannabis.
• The LCRB doesn't give you intellectual property rights for your store name or branding. Ensure your branding complies with trademark laws.
• Avoid using restricted terms like "pharmacy," "apothecary," or "dispensary," and symbols like a green cross, snake on staff, or mortar and pestle.

The LCBR has laid out several rules to ensure safe retail operations in Section 4 of the Cannabis Retail Store Licence Terms and Conditions Handbook. Here are the key highlights:

• Ensure your store has an intrusion detection and a fire alarm system that are monitored at all times by a third party.
• Use a lockable product case to store or display cannabis in the retail sales area.
• Provide a lockable storage area in a section of the store other than the retail sales area.
• Ensure all exterior doors have secure locks.
• Install security cameras that have a full unobstructed view of the retail sales area, cannabis and accessory storage areas, and both the interior and exterior of all store entrances and exits.
• Ensure the cameras are recording at all times, including when the store is closed.
• Keep security camera recordings for a minimum of 30 days after the recording date.

For more details and additional security requirements, refer to the LCRB’s Cannabis Retail Store Terms and Conditions handbook.

Neither the Cannabis Act nor BC provincial law are very clear on restrictions on online marketing and advertising. The federal law says that cannabis, cannabis accessories, and cannabis services cannot be advertised in any publication or broadcast that originates outside of Canada. This could limit a cannabis brand's ability to use large advertising networks based in the United States.

But even so, many of the largest paid search networks (including Google Adwords) have strict no-cannabis policies even in legal countries like Canada.

The Cannabis Act makes it very clear that cannabis retailers are not allowed to give away free products ever.

Before legalization, cannabis-friendly smoking lounges were common in British Columbia. These Amsterdam-style cafes in British Columbia are now expressly prohibited unless/until the provincial government updates their cannabis laws. Any cannabis lounges operating today do so under threat of very high fines.

Cannabis Tracking, Reporting, and Inventory Control in British Columbia

Non-medical cannabis retailers are required to submit monthly reports to the LCRB through a web-based cannabis licensing portal. These reports on sales, inventory, and number of employees are due by the 10th of each month and are ultimately sent by the province to Health Canada to be updated in the federal Cannabis Tracking System. Reports include, but are not limited to:

• cannabis wholesale purchases
• cannabis retail sales (including quantity sold, price charged)
• when cannabis is disposed of (date, location, method of disposal, type, and amount of cannabis)
• accessory and gift card sales
• employee records (all employees must be registered with the Province)

Licensees are required to track and keep certain records for six years while the license is valid and for six months after a license expires or is canceled.

Yes, Cova’s Point of Sale system is made with the cannabis industry in mind and is fully compliant with all of the tracking requirements in British Columbia.

Cova’s dispensary POS and inventory management system includes all the features needed to keep cannabis retailers compliant, including:

• ID scanner for age and patient card verification
• Integrated inventory and sales tracking and reporting
• Built-in product equivalency conversions and purchase limit enforcement

See the cannabis industry’s most loveable POS in action with a live demo.

Dive deeper into everything related to cannabis retail in and around British Columbia with these curated resources.

• Cannabis Legalization Infographic: 3-Year Timeline of Canadian Milestones
• What is a PO Import Tool- Why You Need it for Your Cannabis Retail POS
• How to Start a Click-and-Collect Cannabis Retail Program in Canada

British Columbia employs a hybrid model of retail cannabis sales with both public and private operators competing in the market. Several government agencies are together responsible for maintaining a careful balance.

For instance, the Liquor Distribution Branch (LDB) is responsible for the wholesale distribution of non-medical cannabis and the operation of government-owned retail stores, the Liquor and Cannabis Regulation Branch (LCRB) oversees the licensing and monitoring of private cannabis retailers, and the Ministry of Public Safety is responsible for delivering public safety services.

Unsurprisingly, this complex regulatory environment constantly evolves with new rules and regulations rolling out multiple times a year. To stay on top of these changes, subscribe to the Cova newsletter and get the latest updates & insights on cannabis retail regulations, trends, and technology.