Medical Cannabis Fee Remission Order

Summary#

The Cannabis for Medical Purposes Remission Order lets certain licensed sellers of medical cannabis get a remission (a waiver or refund) of a federal fee if all cannabis sold at a given site in a fiscal year was sold only to medical clients, named responsible adults, or under medical exemptions. It sets the paperwork and record-keeping rules needed to claim the remission. The order took effect on January 22, 2020 and was signed by Patricia Hajdu, Minister of Health.

What it does#

• Grants remission of the fee charged under the Cannabis Fees Order to holders of a licence for sale for medical purposes and other licences listed in Schedule 2 of that Order, when specific conditions are met.
• Conditions for the remission:
  • All cannabis sold during the applicable fiscal year at the same site must have been sold in Canada only to a person who was, at the time of sale, a client (as defined in the Cannabis Regulations), a named responsible adult, or to someone covered by an exemption under section 140 of the Cannabis Act for medical purposes.
• What licence-holders must submit:
  • If the fiscal year ended before the order came into force: within 30 days after the order comes into force, a signed written request and a statement of cannabis revenue for that fiscal year, plus documents confirming the sales met the medical-only condition.
  • Otherwise: within 30 days after the order comes into force, a signed written request saying the holder intends to sell only to medical clients during the applicable fiscal year; and by April 30 after that fiscal year, a statement of cannabis revenue and supporting documents confirming the sales were to medical clients or covered by exemptions.
• Record-keeping:
  • Licence-holders who claim the remission must keep sales and purchase records and proof that sales were only to medical clients or covered by exemptions for at least seven years, in a way that allows timely audits.

Who's affected#

• Primarily holders of a licence for sale for medical purposes and the other licence types listed in Schedule 2 of the Cannabis Fees Order.
• Practically, this will matter most to licensed cannabis businesses that sell only to registered medical clients, to named responsible adults, or under the section 140 medical exemptions.
• It applies only to sales made in Canada and only at the specific site covered by the licence. If it’s unclear whether a licence type is included, the text refers back to the Schedule in the Cannabis Fees Order.

Why it matters#

• This reduces or cancels a federal fee for businesses that exclusively sell medical cannabis at a site, which can lower operating costs for those suppliers.
• Businesses claiming the remission must keep detailed records for audits for seven years, so there is an administrative burden and compliance risk if records are incomplete.
• For patients and health-care providers, the order could indirectly affect availability or pricing of medical cannabis by changing the financial incentives for suppliers.