Legalized Cannabis in Canada

The Birth of a Legalized Commercial Industry

Introduced by the Government of Canada in 2017, Bill C-45 is designed to legalize the cannabis industry.

A step beyond medical marijuana, the new law enacts provisions for mainstream production of cannabis for recreational use, including standards, security requirements, packaging, and the like.

Subject to the approval of Parliament and Royal Assent, Canada’s new Cannabis Act goes into effect no later than July 2018.

Concentrated High-Value Assets

Cannabis brought to market through the new, regulated system is sure to result in the localized concentration of high-value products. Cannabis producers will find themselves sharing business concerns with industries like banking, pharmaceuticals, retail jewelers, and vendors of precious metals.

Physical security will become a paramount concern as production and retail facilities for legalized cannabis become lucrative targets for pilfering and theft

Security - Regulations vs. Insurance Needs

Because cannabis is still classified as a drug, the new legal industry will deal with issues such as licensing, permits, authorizations, tracking, video surveillance, and on-site security.

Even so, it appears Bill C-45 relaxes regulations to allow for both ease of micro-cultivation and the ramping up of commercial-scale production.

When it comes to security, for example, there is no specific mention of vault requirements in the Act. This is a departure from the previous legal framework established for the medical marijuana industry in Canada, where licensed producers were limited in their production of cannabis based on the storage capacity and security level of their vaults.

Is the Canadian government recommending that an industry where a few hundred pounds of refined product may be worth tens of millions of dollars should reduce its physical security? We think not.

In part, we expect more detailed regulations to emerge as the new law is implemented. Also, in the transition to a legalized industry, certain aspects of how business proceeds will be influenced more by free market forces than government regulation - factors such as general liability insurance requirements and property and casualty insurance.

At International Vault, we believe market forces alone will create a strong demand for vaults and other physical security solutions in an industry estimated to reach a hundred billion dollars annually. Further, we see insurance underwriters as one of the primary drivers of specific security and vault requirements. New information on this situation has been updated to the site in our Blog Article The Changes in Cannabis Regs in Canada.

What Does the Cannabis Act Say About Security?

What does the Cannabis Act have to say regarding physical security at the current time? Language in the Act includes statements to the effect that:

  • The perimeter must be secured in a manner that prevents unauthorized access, including physical barriers.
  • Areas must include physical barriers that prevent unauthorized access.
  • Areas must be secured by means of an intrusion detection system that operates at all times.
  • Areas must be visually monitored at all times by visual recording devices, with recordings kept for one year after the day on which they were made.
  • All license holders must take measures to safeguard cannabis in transit.

Further Section 2.3.4 of the proposed Cannabis Act requires physical security measures to be in place, helping prevent legally produced cannabis from being diverted to the illegal market.

The intent of the Act is that producers of large quantities of high-value cannabis will provide for more thorough security measures, compared to other license classes. Additionally, all license classes will be required to provide for physical security when products are being transported. Additionally, all license classes will be required to provide for physical security when products are being transported.

Why Work with International Vault?

At International Vault, we are uniquely positioned to assist the new, legalized Canadian Cannabis industry with its security needs, ranging from storage cage installations, day gates, and modular vaults to armored car vaults for in-transit security.

We offer proven solutions designed to meet the physical security requirements for controlled substances developed by Health Canada.

With years of experience serving the medical marijuana industries in both the U.S. and Canada, all of our currently available vault offerings are expected to meet or exceed any of the new requirements of the Cannabis Act and/or the demands of commercial insurance carriers.

Many of the vault systems, cage installations, and the like which we pioneered for the medical marijuana industry are well-suited for use as cannabis enters the mainstream in Canada as a legalized product.

Our vaults, for example, not only provide needed security, but also safe storage, where limiting exposure to light, air, and other external influences helps maintain product potency.

Our security products of interest to the new industry will include:

Light Weight Modular Vaults and MicroVaults.
Armored Transport Vaults.
Day Gates and Wire Cages.

In addition, International Vault’s own SecureCast system solves many challenges at once. These high-security, decorative building panels allow for fast construction of secure buildings that offer LEED certified construction and world-class security.

Used in applications as varied as networking centers, classified data facilities, and precious metal storage, SecureCast is a great way to build out a secure cannabis operation from design to completion in the shortest time possible. The hybrid precast panels are also quite cost-effective.

A Recognized High Security Expert, Around the World

With over 35 years’ experience providing high security installations around the world, the engineering team at International Vault Inc. is well equipped to discuss the physical security needs of any commercial operation dealing in high-value product.

From the U.S. Pentagon to local police departments, from securing warehousing facilities to providing state-of-the-art safes for cash and valuables, International Vault is a world-wide partner in helping business and government secure value and deter theft.

Call us today at 844-311-3132 or use our easy-to-complete contact form. We’re waiting to hear from you.