Ontario Could Issue $500,000 a Day Fines to Wipe Out Weed Dispensaries

Last month, Ontario Attorney General Yasir Naqvi told weed dispensaries in the province to consider themselves "on notice." The government has now elaborated on that ominous warning with details on how it will take down dispensaries through enormous fines and jail time.

In a bill tabled yesterday, the province said it will target individuals, corporations, and landlords found guilty of operating or facilitating dispensaries.

An individual caught selling weed outside the government's regime could be fined up to $250,000 or imprisoned for two years if they are found guilty. Subsequent convictions could cost them up to $100,000 a day. Ditto for a landlord who knowingly rents space to a dispensary, despite the fact that they may have nothing to do with its operations.

Corporations involved with dispensaries face even steeper penalties: a first conviction would yield a fine of at least $25,000, capping at $1 million; subsequent convictions will yield minimum fines of $25,000 a day with maximum fines of $500,000 a day.

Toronto-based lawyer Jack Lloyd, who is currently defending several dispensary employees, told VICE Ontario's approach is the opposite of what the public wants—and it might even be "criminal."

"I think it is a criminal law in all but name and will likely be challenged in court," he said.

He also noted the government is punishing people for doing the same thing they're planning to do themselves. Ontario's plan is to open 40 standalone weed shops by next summer, up to 80 by 2019, and 150 by 2020. It is essentially a government monopolized dispensary system.

Medical patients could argue they're not getting the access they need through Ontario's model—40 stores works out to about one store per 340,000 people. Dispensaries in Canada were emboldened by a 2016 Federal Court ruling that stated the government's medical marijuana program was unconstitutional in limiting patients to getting medication from licensed producers.

And that's not even getting into the inventory itself, which will likely be far more limited than what dispensaries carry.

Another thing to consider—dispensaries can and are moving online, with dozens already fully in operation in a space that's much harder to control.

Regardless of how all shakes out, it wouldn't be surprising if another Project Claudia style raid was in the works. The federal government has earmarked $274 million to the enforcement of new cannabis regulations.

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