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B.C. government to launch chain of cannabis-only retail stores

Private stores that sell only cannabis and accessories will also be allowed
potjars-robkruyt
Jars of cannabis entice customers at Vancouver's Buddha Bar | Rob Kruyt

The B.C. government intends to create a chain of government-run stores that sell cannabis and accessories in addition to allowing room for private-sector competition once the federal government legalizes adult use of marijuana – a move expected to happen by July. All of these stores will be forbidden from selling liquor or tobacco.

A third channel for retail sales in B.C. will be the government's e-commerce website. Private retailers and licensed producers will not be allowed to sell their products online and will not be allowed to deliver products.

It is unclear how many government-run stores will be created and how fast this network will be rolled out but B.C. Solicitor General Mike Farnworth told a press conference on February 5 that the first government-run store would open by “late summer.”

He would not confirm whether employees at these stores would be unionized but said that the employees would be able to certify to be in a union using current rules.

Entrepreneurs who get provincial approval to run their own dispensaries will have to adhere to municipal rules as well as provincial ones. Farnworth said that he would respect municipalities' stances on where to allow cannabis dispensaries – something that means that it is likely no dispensaries will open in cities such as Richmond.

“If you are operating a retail store and you think that you’re going to be able to somehow ignore the rules and regulations around identification and age and all of those things, you’re not going to be in business very long,” Farnworth said.

He added that one of his highest priorities is to keep organized crime out of operating retail stores.

The British Columbia Liquor Distribution Branch (BCLDB) will be the arm of the government that will supply the network of cannabis stores while the British Columbia Liquor Control and Licensing Branch will be be responsible for licensing private stores and monitoring the retail sector. All cannabis sold at retail stores, whether public or private, will have to be purchased wholesale from the BCLDB. That means that any licensed producers that open their own retail stores will not be able to directly supply those stores with their products.

Stores in different parts of the province will be treated differently.

In urban areas, licensed retailers will only be allowed to sell cannabis and cannabis accessories and will be prohibited from selling other products, such as food, gas, clothing and lottery. In rural areas, however, the government will make exceptions and allow dispensaries to sell other essentials, although not alcohol or tobacco.

The criteria for determining what the government considers a rural area is currently under development.

This spring, the B.C. government plans to launch an early registration process for individuals and business owners who are interested in applying for a cannabis retail licence. Having a criminal record will not necessarily disqualify someone from getting a licence.

The province will not cap the number of retail licences available, Farnworth said.

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