Medical Marijuana Under The MMPR: A New Crop Of Legal Considerations

Medical marijuana has been making headlines in Canada after sweeping changes to regulations created a new market for commercial marijuana production. The Marihuana for Medical Purposes Regulations1 ("MMPR") came into force on April 1, 2014, replacing the previous Marihuana Medical Access Regulations2 ("MMAR"). Under the old regulatory scheme, authorized patients could obtain licences to grow their own marijuana at home, designate a third party to grow marijuana on their behalf, or purchase it from Health Canada's approved supplier. Now, medical marijuana may only be obtained from a producer licensed by Health Canada, either directly or through a licensed dealer or health care practitioner.

Health Canada estimates that demand for medical marijuana will increase ten-fold and sales will reach $1.3 billion dollars per year by 2024,3 making it an attractive market for prospective producers and those looking to invest. By requiring that medical marijuana must ultimately be obtained from independently licensed producers, the MMPR has effectively created the basis for this new industry. While "designated persons" were licensed under the MMAR to grow medical marijuana for use by others, they were limited to providing for a maximum of two authorized patients.

The use of marijuana for medical purposes was banned in Canada in the 1930s and remained so until 2000 when R. v. Parker4 found the total prohibition on marijuana unconstitutional. While marijuana is still not an approved drug or medicine in Canada, the government subsequently took steps to exempt certain users from the provisions of the Controlled Drugs and Substances Act ("CDSA")5 that criminalize its possession, paving the way for patients to access the drug. Under the Marihuana Medical Access Regulations, patients or their designated persons were allowed to grow marijuana on a small scale, often in their homes. This system led to concerns over public health, safety and security; concerns that were the impetus behind the new MMPR which only provides access to marijuana through purchasing it from licensed and inspected commercial producers.

Key Considerations under the MMPR

There are several key aspects of the new regulations that anyone looking to enter or invest in this industry should take into consideration:

Licence Application In order to produce medical marijuana in Canada, a company must obtain a licence from Health Canada. The licensing process is extensive - prospective licensees must...