Ontario Key Facts

Federal Licences — Health Canada (apply nationally)

• Cultivation Licence — Standard, Micro, or Nursery; indoor, outdoor, or greenhouse cultivation of cannabis plants
  • Standard: no canopy limit; security clearance; Good Production Practices (GPP) compliance
  • Micro: max 200 m² canopy; simplified security; lower fees
  • Nursery: propagation only (seeds, clones, vegetative material)
• Processing Licence — Standard or Micro; manufacturing cannabis products (extracts, edibles, topicals, beverages, concentrates)
  • Standard Processing: large-scale; pharmaceutical-grade facility standards
  • Micro Processing: limited to dried cannabis, oils, and pre-rolls from own or purchased material
• Analytical Testing Licence — laboratory testing of cannabis for licensed producers
• Research Licence — controlled research; limited quantities
• Cannabis Drug Licence — for pharmaceutical cannabis drug submissions
• Sale for Medical Purposes Licence — licensed producers selling directly to registered medical patients

Ontario Provincial Licences — AGCO

• Retail Store Authorisation (RSA) — private adult-use cannabis retail store
  • Applicant must pass AGCO integrity check; no criminal record for serious offences
  • No cap on number of licences since April 2019 (initial lottery system abandoned)
  • Must be 150 m from schools; compliant with Ontario's Smoke-Free Ontario Act and Cannabis Licence Act
• Retail Operator Licence (ROL) — issued to the business entity operating a cannabis retail store; separate from RSA
• Cannabis Retail Manager Licence — individual store managers must be licensed by AGCO
• Delivery — OCS and Authorised Retailers: licensed cannabis retailers may offer delivery; must comply with AGCO delivery rules; age and ID verification at door
• OCS (Ontario Cannabis Store) — provincial Crown corporation; online retailer; also acts as wholesale distributor to private stores

Taxation Details & Implications

• Canada's federal excise duty is collected at the producer level — built into the wholesale price passed through OCS to retailers and ultimately to consumers
• Consumers pay 13% HST on all cannabis purchases in Ontario — no additional provincial cannabis excise tax
• The federal excise revenue is split: 75% to federal government, 25% to the province
• Ontario receives its 25% share (approximately $67–80M annually) — unrestricted general revenue
• Medical cannabis: GST/HST applies (5%/13%); some private health insurance plans may cover — consult your plan
• Cannabis businesses: subject to Income Tax Act rules; unlike US § 280E, Canadian cannabis companies may deduct ordinary business expenses
• Online OCS purchases: 13% HST + delivery fee where applicable

Federal Advertising Prohibitions — Cannabis Act s.17–s.24

• Strict nationwide advertising restrictions — the Cannabis Act is among the toughest advertising regimes in the world:
  • No cannabis advertising that is appealing to young persons (defined as under the minimum age)
  • No testimonials or endorsements — celebrity, influencer, or otherwise
  • No depictions of a person, character, or animal (no brand mascots)
  • No association with glamour, recreation, excitement, vitality, risk, or daring
  • No claims of health or cosmetic benefits unless authorised by Health Canada
• Permitted advertising (very limited):
  • Factual information (brand name, price, strength, availability) in age-restricted venues only
  • Information-only ads in publications mailed to verified adults
  • Brand preference advertising to adults only — no lifestyle content
  • Informational material provided directly to adults at point of sale
• Required on all cannabis packaging and advertising:
  • Health warning messages as prescribed by Health Canada
  • Cannabis Act health warning symbol (red octagon warning)
  • THC/CBD content per serving and per unit
  • Producer or retailer name and contact information
• Social media: Age-gating required; no general public promotion; no influencer campaigns; platforms must restrict access to verified legal-age users
• Penalties: Federal prosecution; fines up to $5 million and/or up to 3 years imprisonment for advertising violations

Ontario-Specific Additional Rules

• AGCO regulates retail store exterior signage — must not be visible from outside unless on approved external sign
• Retail stores may only post pricing information and product information inside the store
• Online retailers (including OCS) must implement age verification before displaying any product content
• No advertising on TTC (Toronto Transit), GO Transit, or other public transit systems
• No advertising on billboards, flyers, or outdoor media

Federal Workplace Framework

• No federal employment protections specifically for cannabis users — however, human rights frameworks apply:
  • If cannabis use is for medical purposes and employee has a disability, duty to accommodate may arise under federal/provincial human rights legislation
  • Employer must demonstrate undue hardship before refusing to accommodate a medical cannabis user
• Federally regulated industries (aviation, banking, rail, marine, interprovincial trucking) follow Transport Canada and federal safety rules:
  • Transport Canada: zero tolerance for impairment in safety-critical roles
  • Canadian Aviation Regulations: no cannabis within 8 hours of flight duty (some carriers 28 hours)
  • Railway Safety Act: strict zero-tolerance for train operators
• Cannabis is still prohibited in federally regulated workplaces and on federal government property under the Federal Cannabis Policy for the Public Service
• Impairment at work is always prohibited — regardless of medical or adult-use status; employer may discipline
• Drug testing: Not universally permitted in Canada — employer must demonstrate safety-sensitive role or reasonable cause; random testing restricted by human rights law in most non-safety contexts

Ontario-Specific Employment Context

• Ontario Human Rights Code: Medical cannabis use tied to a disability may trigger duty to accommodate — employer must engage in accommodation process to point of undue hardship
  • Employer must balance employee's right to accommodation with occupational health & safety obligations
  • Simply testing positive for THC metabolites is not proof of impairment — employers should assess actual fitness for duty
• Occupational Health and Safety Act (OHSA): Workers must not be impaired at work; supervisors must not permit impaired workers in the workplace
  • Employer must maintain a workplace free from cannabis impairment risks
  • Risk assessment procedures recommended for safety-sensitive roles
• WSIB (Workplace Safety and Insurance Board): Positive cannabis test after injury may be used in claims context but alone does not deny benefits
• Ontario employers in safety-sensitive sectors (construction, manufacturing, mining) commonly implement formal drug and alcohol policies including pre-employment and random testing for designated roles

Personal Possession Limits

• Adults (19+) may possess up to 30 g of dried cannabis (or equivalent) in a public place
  • Equivalencies: 30 g dried = 150 g fresh = 450 g edibles = 2,100 g liquid = 7.5 g concentrate = 30 cannabis plant seeds
  • At home there is no possession limit for lawfully purchased cannabis
• Home cultivation: Up to 4 plants per household from federally regulated seeds or clones (not per person)
  • Plants may not be taller than 100 cm (Ontario provincial rule)
  • Must be grown from legally purchased seeds or clones
  • Not visible from public space
• Possession of more than 30 g in public: Summary offence (up to $15,000 fine) or indictable offence

Transaction Rules

• Minimum age: 19 years — government-issued photo ID required at point of purchase (authorised retailers and OCS delivery)
• Accepted ID: Ontario driver's licence, Canadian passport, Canadian citizenship card, Ontario Photo Card
• Retailers must use age verification systems — electronic ID scanner required by AGCO
• Maximum purchase per transaction: 30 g equivalent in public access retail
• No consumption on the premises of a cannabis retail store unless the store also has a designated consumption permit
• OCS online: age verification + signature required at delivery; no delivery to PO Box

Federal Testing Standards — Health Canada

• All cannabis products must comply with Health Canada's Cannabis Regulations (SOR/2018-144) — Part 5 (Good Production Practices):
  • Potency testing: THC, THCA, CBD, CBDA — all products before sale
  • Total THC and CBD per serving and per package must appear on label
  • Tolerance: ±10% of stated cannabinoid content
• Contaminant testing required for all products:
  • Pesticide residue: per Health Canada's List of Authorized Pesticides for Cannabis
  • Heavy metals: lead, cadmium, arsenic, mercury — below maximum residue limits
  • Microbial contaminants: E. coli, Salmonella, Staphylococcus — per Health Canada limits
  • Mycotoxins: aflatoxins, ochratoxin A
  • Residual solvents: for all extract products — below Health Canada limits
  • Moisture content: tested for flower and dried cannabis products
• Approved laboratories: Must hold ISO/IEC 17025 accreditation; testing conducted in compliance with GPP requirements; labs may be in-house at federally licensed producers or third-party ISO 17025 facilities
  • Health Canada conducts regular inspections of licensed producers
  • Non-compliant batches must be recalled or destroyed per Health Canada recall procedures
• Certificate of Analysis (COA): Required for every lot/batch; must be available to provincial wholesalers and retailers
• Track and trace: Health Canada's national cannabis tracking system (CTLS) monitors all product movement from licensed producer to provincial wholesaler

Federal Medical Cannabis Framework

• Healthcare Practitioner (HCP) Document — A doctor, nurse practitioner, or other authorised HCP provides a medical document (not a prescription) specifying the patient's daily cannabis amount in grams
  • No specific qualifying conditions listed in the Cannabis Regulations — HCP determines suitability
  • Patient and HCP must sign a registration form; patient registers directly with a federally licensed seller
• Possession allowance: Patients may possess up to 150 g of dried cannabis (or equivalent) OR a 30-day supply based on their daily authorised amount — whichever is less
  • Daily authorised amount set by HCP — no upper limit in regulations (HCP's discretion)
  • Equivalencies: 1 g dried = 5 g fresh = 15 g edibles = 70 g liquid = 0.25 g concentrate = 1 cannabis plant seed
• Personal production for medical purposes: Registered patients may grow their own cannabis at home based on their daily authorised amount
  • Formula: daily amount (g) × 365 ÷ 4 = maximum number of plants
  • Or register a designated producer to grow on their behalf
• Designated person production: Another adult may grow on behalf of a patient; max 2 patients per designated producer
• No qualifying condition list — Canadian medical access is entirely based on HCP discretion and patient need
• Federally licensed sellers (e.g., Aphria, Aurora, Canopy Growth) sell directly to medical patients by mail with valid HCP document
• Cost: Not covered by most provincial health plans; some private insurance plans include coverage; federal GST/HST applies

Ontario Medical Context

• Medical cannabis is a federal programme — the province of Ontario does not administer a separate medical cannabis registry
• Ontario Health Insurance Plan (OHIP) does not cover medical cannabis; most provincial plans do not
• Some Ontario workplace group insurance plans cover medical cannabis — check your benefits plan
• Veterans' Affairs Canada covers medical cannabis costs for eligible veterans (up to 3 g/day)
• Ontario Disability Support Programme (ODSP): medical cannabis not covered

Key Rules & Differences from Medical

• Minimum age: 19+ for adult-use; medical has no minimum age restriction (based on HCP recommendation)
• Purchase limit: 30 g per transaction for adult-use; medical patients may purchase based on their authorised daily amount
• Tax: Adult-use = 13% HST; medical = 5% GST (no provincial portion for medical via federally licensed seller)
• Where to buy: AGCO-licensed private retailers or OCS online for adult-use; federally licensed sellers for medical
• Product access: Both channels sell most product categories; some licensed producers sell medical-grade products only

Consumption Rules

• Cannabis may be consumed in private residences (owned or rented — check tenancy agreement)
• Consumption permitted in most outdoor public spaces where tobacco smoking is permitted, except:
  • Within 20 metres of schools, playgrounds, and child care facilities
  • Within 20 metres of hospitals, hospices, and care facilities
  • In vehicles, whether moving or parked
  • On restaurant and bar patios
  • Anywhere prohibited by municipal bylaw
• Municipal variations: Toronto, Ottawa, and other municipalities have additional bylaws restricting where cannabis may be consumed — check local bylaws

Local Ordinances

• Ontario municipalities may pass bylaws to restrict cannabis consumption in public spaces beyond provincial rules
• Toronto: Smoking and vaping cannabis follows same rules as tobacco — allowed in most outdoor spaces, not in enclosed workplaces or public transit
• Municipalities may not ban adult-use retail stores, but may limit hours through business licensing
• Some Ontario municipalities applied to have no retail stores initially; most have since permitted them