British Columbia Dispensary Laws

Dispensary Laws and Regulations for British Columbia Retailers

British Columbia has long been renowned for producing some of the best cannabis in the world. And with Canada set to legalize marijuana for adult use this summer, British Columbians will finally be able to lawfully enjoy their BC bud. 

Residents and stakeholders were asked to participate in a public engagement session from September 25 to November 1, 2017, regarding the regulation of non-medical cannabis. Based on this feedback, the Ministry of Public Safety has set the minimum purchase and consumption age at 19, which is consistent with the minimum age for alcohol and tobacco use.

When it comes to retail cannabis sales, BC will employ a hybrid model with both public and private operators. The Liquor Distribution Branch (LDB) will be responsible for all wholesale distribution of non-medical cannabis and will also operate government-owned retail stores. The Liquor Control and Licensing Branch (LCLB) will oversee licensing and monitoring of private cannabis retailers. Online cannabis retail stores will be government-operated.

The LCLB will begin accepting online applications for non-medical cannabis retail licenses sometime in spring 2018. The BC government has also released a guide for private operators looking to apply for a retail license. 

Below we’ve compiled answers to common questions regarding the retail licensing process and sale of non-medical cannabis in BC. This page will be updated frequently as more information becomes available.

CANNABIS RETAIL SALES

Remaining compliant with federal and provincial regulations will be critical. Learn the details of cannabis retail law here.

What are the purchase limits for retail customers?

Under Canada’s proposed Cannabis Act, public possession of more than 30 grams of dried cannabis or its equivalent will be unlawful. However, individual provinces may restrict daily purchase limits.

This answer will be updated as more information becomes available.  

What is the minimum age of purchase for retail cannabis?

BC has set the minimum age at 19, which is consistent with the purchase and consumption age for alcohol and tobacco.

CANNABIS TRACKING AND REPORTING

Cannabis tracking and reporting helps the government prevent diversion into the black market. Get the facts here.

What is required of cannabis retailers with regard to tracking and reporting?

The proposed Cannabis Act authorizes the Minister to establish a national cannabis tracking system and to require licensed operators to report all cannabis activity.

Details on the required information and timeframe for reporting have not yet been determined.

This answer will be updated as more information becomes available.  

LICENSING

Looking to launch a cannabis retail operation in BC? Here’s everything you need to know about the licensing process.

How many cannabis retail licenses will be issued in BC?

The province will not place a cap on the number of retail licenses issued; however, local governments may limit the number of licenses within their jurisdictions.

Local governments may also elect to not allow the retail sale of non-medical cannabis.

What is the process for cannabis retail licensing in BC?

The Liquor Control and Licensing Branch (LCLB) will begin accepting online applications for non-medical cannabis retail licenses in spring 2018. The application and all supporting documents will be submitted through the online application portal.

 

You will be required to undergo a background check during the application process; however, a criminal record will not automatically render you ineligible for a license. Further, formerly operating an illegal dispensary will not automatically disqualify you from obtaining a retail license.

How long will the application process take?

The Province anticipates a significant number of applications and is putting plans in place to ensure they are reviewed and processed as efficiently as possible.

Are there fees associated with the licensing process?

Yes; BC will require both an application fee and a licensing fee if you are awarded a non-medical cannabis retail license. The fees have not yet been determined.

If I currently hold a liquor and/or tobacco license, can I sell cannabis?

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.

If I operated an illegal dispensary prior to legalization, will I be prohibited from receiving a license?

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 demonstration of your local government’s support.

Do I need to have local government support to obtain a retail cannabis license?

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.

If I, a family member, or a business partner have an interest in a federally licensed producer and processor, can I be considered for a retail license?

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

Will the Province issue licenses for consumption lounges?

Not at this time. The Province may consider this at a later date.

OPERATIONS

Get the details of running a non-medical cannabis retail store in BC here.

What kind of retail locations are authorized?

Standalone retail stores will be run by both public and private operators. Cannabis may not be sold at the same location as liquor and/or tobacco; they must be sold in separate establishments.

Are there restrictions on what I can name my store?

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.

Will retail sales of non-medical cannabis be permitted at outdoor festivals and events?

Not at this time; the Province may consider offsite retail sales in the future.

Can I set up window displays at my retail cannabis store?

No; federal law requires that cannabis products may not be visible from outside the store.

Will online cannabis sales be authorized?

Yes; online sales will be government-operated.

What security measures am I required to take at my cannabis retail store?

Provincial security requirements for cannabis retailers are still being determined. Your local government may also require specific security measures.

Can I store inventory offsite?

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

How do I obtain non-medical cannabis to sell in my store?

Licensed retailers may obtain non-medical cannabis only through the LDB. Retailers may not purchase any cannabis products directly from producers or from any other sources.

What are the purchase limits for retail customers?

Adults aged 19 and older may purchase up to 30 grams of dried cannabis or an equivalent amount of non-dried cannabis product.

What types of cannabis products will be authorized for sale?

Licensed retailers may sell dried cannabis flower, cannabis oils, and seeds.

 

Because the proposed federal regulations do not currently allow for the production of edibles, you may not sell edible cannabis products in your retail store. However, the government has stated that edible cannabis will be regulated and authorized for retail sale within 12 months of legalization.

What else can I sell in my retail cannabis store?

Apart from dried cannabis, cannabis oils, and seeds, retailers may sell cannabis accessories including rolling papers, bongs, pipes, vaporizers, and other products for the consumption of cannabis.

 

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

Are minors allowed in my cannabis retail store?

No. Minors may not enter a cannabis retail establishment.

What hours will cannabis retailers be authorized to operate?

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

Can I offer a cannabis delivery service if I hold a retail license?

No. Cannabis retailers are not allowed to deliver cannabis products.

Cannabis Compliance

Staying compliant with federal, provincial, and local regulations – including cannabis seed-to-sale reporting requirements – is your top priority as a cannabis retailer.

What is required of cannabis retailers with regard to tracking and reporting?

The proposed Cannabis Act authorizes the Minister to establish a national cannabis tracking system and to require licensed operators to report all cannabis activity. Typically, a point-of-sale system that is integrated with the national reporting system is the ideal solution for cannabis retailers.

 

Details on the required information and timeframe for reporting have not yet been determined.

Will I be required to use a certain tracking/inventory control system?

The federal government is still in the process of establishing a national seed-to-sale tracking system. More information on retailers’ responsibilities will be released as it becomes available.

 

What happens if I am found out of compliance?

If you are found out of compliance by an inspector, you will be issued a Contravention Notice and may be recommended for enforcement action. Penalties are still under development but may include a fine or license suspension/cancellation. There will also be a reconsideration process by which you may challenge the result of the enforcement hearing.

METRC

Reporting to your governing body is essential to running a legal (and successful) cannabis retail dispensary. Get the facts here.

What is Metrc?

Metrc is a cannabis track and trace reporting system that allows state governments to monitor commercial cannabis activity. Metrc, which stands for Marijuana Enforcement Tracking Reporting Compliance, was originally developed by software manufacturer Franwell for the state of Colorado; it is now used by the majority of states with adult-use cannabis markets.

When can I start working with Metrc?

Once you have a temporary or annual retail operator license, have created your account in Metrc and completed the required training, you may begin working with Metrc.



Am I required to report track and trace data in Metrc if I have a temporary license?

No, temporary licensees are not required to report in Metrc. However, temporary licensees are required to keep records of all track and trace information from the time they begin retail operations. Once an annual license has been approved, you must backlog all the track and trace information that you’ve recorded and begin daily reporting in Metrc.

How do I report in Metrc?

Once you’ve set up your account in Metrc, you’ll be able to enter your daily track and trace reports. There are two ways to do this.

The first way is manual reporting. This method requires logging in to your Metrc account at the end of every single business day and manually entering all the data from every transaction and other activity that occurred. Along with being time-consuming and cumbersome, manual reporting puts you at great risk of mistakenly recording incorrect information—which can lead to a serious compliance issue.

The second way is to utilize a retail-specific cannabis dispensary software that can integrate with Metrc and automatically sync reportable data from your store’s transactions and activities as they occur in real time.

How do I report if the system is down or the internet is out?

In the event that you lose connectivity to Metrc or experience an internet outage that prevents you from daily reporting, you must record all reportable information and upload it to the system within three days of restored connectivity.



What are my responsibilities with regard to inventory documentation and reconciliation?

The state mandates that retailers maintain accurate inventory records. Physical inventory must be reconciled with records at least once every 14 days. You must also reconcile physical inventory with the counts you’ve reported in Metrc at least every 14 days.




POINT OF SALE

You definitely need a cannabis-specific POS at your dispensary. Find the most frequently asked tech questions here.

How do I manage state compliance using my point-of-sale?

Cova POS software provides complete seed-to-sale tracking functionality and has a number of built-in features designed to help you automatically comply with the legal regulations in your state/province. For example, the Cova POS system automatically monitors:

  • Purchase Limits – The POS system automatically calculates the correct THC amounts for all products, including concentrates and edibles. By relieving your staff of this complex task, the POS prevents mistakes in calculation and allows your budtenders to focus on customer service—and not on mathematical conversions. The system also enforces purchase limits by alerting staff when a limit has been reached and preventing budtenders from executing a sale that would place you over the legal limit.
  • Hours of Operation – The system can be easily configured to comply with local laws. Once the operational hours are set up, the POS will not allow sales to be executed outside the legal hours of operation, preventing potential violations before they occur.
  • Customer Identification Requirements – Customer IDs are easily scanned and recorded, ensuring your staff double checks IDs and virtually eliminating potential sales to minors or other individuals lacking the requisite documentation.
  • Accurate Real-Time Reporting – Operational visibility is also very important for your team. Cova POS software generates management reports in real time. These reports can be easily distributed across the organization to ensure the correct data is in the hands of the correct personnel.
  • Fully Compliant Product Labelling & Receipts Cova Software enables the complete customization of all printed materials, product labels, and receipts, enabling you to comply with all local regulations related to labeling and packaging quickly and easily.



What happens if my internet connection goes down and my dispensary is slammed with customers?

To ensure that you always maintain an expedient transaction pace and keep lines moving, Cova comes with a built-in offline sales processing mode that enables continuous access to critical functions even when your Wi-Fi or internet connection is unavailable. Once connectivity is restored, all transactions performed in offline mode are synchronized with the state’s reporting system, data is backed up, and reports and inventory records are adjusted accordingly.

How do I make sure I submit timely and accurate taxes each month to the government?

By choosing a POS system with built-in tax reporting functionality, you’ll always know exactly how much tax you need to pay.



Why is it important to have a marijuana-specific POS vs. a retail or pharmacy POS?

There are several reasons why a cannabis-specific POS is ideal for your operation—but the most important one is compliance management. Because traditional retail operations and pharmacies don’t have the same government-mandated compliance requirements, their POS systems aren’t built to manage the complexities involved with track and trace reporting and the other aspects of state compliance.

What happens if the state regulations change? How does Cova stay on top of this?

With the industry still in its infancy, regulations are bound to change. At Cova, our team keeps up with industry-wide and state-specific changes so that our developers can quickly made necessary software updates—and so you never have to worry about remaining compliant with the latest regulations.

Is Cova integrated with Metrc?

Currently, Metrc is not yet live in California since the state's regulations have not yet been officially adopted. However, Cova is working closely with Metrc and has already begun the process of integration, and we plan to be ready when the system goes live.



I have a high-traffic store. Can Cova support me and handle my volume?

Absolutely! Cova software is built on technology that has the ability to dynamically scale with your needs. Microsoft’s Cloud Computing Platform, Azure, automatically detects instances of heavy traffic (such as sales on 4/20) and assigns further servers and computing power as necessary to compensate—allowing you to process sales without interruption, even during the busiest retail periods.



Do I have to follow CA compliance even if it is not in effect? Will the POS still process sales?

Although technically you are not mandated to comply with the new law and regulations until July, it’s a good idea to implement a compliant POS now so you don’t have to switch later.

How do I do the 14-day inventory reconciliation?

With Cova, you can easily stay compliant with California’s inventory reconciliation requirement by printing the Inventory-on-hand report and checking it against your physical inventory. You can make any necessary adjustments directly into the POS, which will then sync the data across your network.

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