441-01721 (Health)

The Cannabis Act creates a legal framework for controlling the production, distribution, sale, and possession of cannabis in Canada. The framework outlines a shared responsibility between the federal, provincial and territorial governments.

In particular, provinces and territories have flexibility to tailor certain rules in their jurisdiction and are responsible for oversight of certain aspects of the legal cannabis industry including but not limited to:

• Flexibility to establish more stringent controls on access;
• Authority to enact additional rules to protect public health safety; and,
• Licence and oversee distribution and retail sales, subject to federal conditions.

Under the Cannabis Regulations, holders of a Health Canada commercial license to cultivate, process or sell cannabis must meet strict requirements in order to be licensed. These include requirements for physical security, and adherence to Good Production Practices. For example, licence holders must ensure all buildings or parts of buildings where cannabis is produced, packaged, labelled and stored need to be equipped with a system that filters air to prevent the escape of odours. The intent of this requirement is to prevent the presence of strong odours near buildings where cannabis is present. Additionally, before submitting an application to Health Canada, applicants for licences to cultivate cannabis must provide written notice to local authorities in the area of the proposed site. Once licensed, all licensed cultivators and processors are expected to obey all relevant federal, provincial, and municipal laws and by-laws, including municipal by-laws governing zoning, location, odour and noise. Provinces and territories and municipalities can implement any limitations on zoning, location, or other controls that they feel are appropriate in their jurisdictions.

Outdoor cultivation of cannabis has been available to licence holders since the Act came into force in 2018. Similar to other industries that release odours, these odours may bother those who live or work close to cannabis production areas. Odour from cannabis production is typically limited to the period during the outdoor growing season when the plants flower. To reduce the impact of odours, Health Canada has odour control requirements for the indoor commercial production of cannabis. In May 2022, Health Canada published Cannabis odours and odour control - Canada.ca.  

If an individual has a concern about odour, they are encouraged to contact the cannabis licence holder directly. In addition to contacting the licence holder, individuals may contact their local government. They may have laws or bylaws in place or may work with law enforcement as required.  

All issues and complaints brought to Health Canada’s attention are taken seriously. When Health Canada receives a complaint about cannabis odour, all information is reviewed to determine whether the submission is within Health Canada’s regulatory authority. If the matter falls within the federal framework, it will be assessed and prioritized for action according to public health and safety risk. After Health Canada makes an assessment, it takes appropriate action to correct any potential non-compliance with the Cannabis Regulations. Individuals can contact Health Canada in writing by using the Cannabis Reporting Form found here.

On September 22, 2022, the Minister of Health and the Minister of Mental Health and Addictions launched the legislative review of the Cannabis Act. An Expert Panel is leading the review and will provide independent, expert advice to both ministers on progress made towards achieving the Act’s objectives, and will also help identify priority areas for improving the functioning of the legislation. The Panel’s review will focus on a number of areas including looking at the economic, social and environmental impacts of the Act, including:

• Impacts on young persons;
• Progress towards providing adults with access to strictly regulated, lower risk, legal cannabis products; 
• Progress made in deterring criminal activity and displacing the illicit cannabis market;
• Impact of legalization and regulation of cannabis on access to cannabis for medical purposes;
• Impacts on Indigenous persons and communities; and,
• Trends and impact of home cultivation of cannabis for non-medical purposes.

This includes examining the appropriateness of different regulatory controls addressing issues related to the cultivation, processing and sale of cannabis. The Expert Panel has recently published a What We Heard report, which summarizes the input heard during their extensive stakeholder engagements to date. Health Canada is reviewing the report, and values the Panel's efforts to include all diverse perspectives, particularly those of Indigenous communities and marginalized groups. The Panel’s findings will help to identify priority areas to improve the functioning of the Act and its final report will be tabled in Parliament by the Minister of Health by March 2024. Health Canada looks forward to the Expert Panel’s final report and will carefully review and consider their advice and findings. 

While the legislative review is underway, Health Canada will continue to examine regulatory measures that could be made more efficient and streamlined, reducing the burden on industry, without compromising public health and public safety.