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BC Craft Supply FAQ

 

420 Consulting has partnered with BC Craft Supply Co (BCCS). Below is a brief FAQ of their services. 

 

BCCS is a Licenced Producer that offers a range of services to craft cannabis growers, most of which are specific to the attainment of a Micro Cultivation Licence.  Because of the breadth of requirements from Health Canada, this can include any number of aspects of the grower’s organization. Generally speaking however, our team offers one-on-one support with licence applications, standard operating procedure development, cultivation techniques, quality assurance, facility design, security protocol, product distribution, staff education and training.

It should be noted that, in addition to guiding our clients through the licencing process and ensuring their cannabis is up to federal standards, BCCS also guarantees the purchase of their product at competitive market prices, and then brings it to retail. This adds extra value to the other services we provide, in part because of the added layer of financial security it offers to small, independent growers.

Q. What makes BCCS different from its competitors?

– We are Canada’s First All-Craft Licenced Producer, partnering with B.C.’s best craft cultivators to bring top-quality bud to the market.

– We invest in small businesses that lack the resources of larger companies, giving them the advantage they need to stay competitive.

– We support families, small businesses, local communities. We invest in the skills of our labourers, in the independence of their operations, in their celebration of their craft.

– We work closely with small-scale craft growers to ensure they receive a fair price for a fair day’s work producing some of the best bud in the world.

 

Q. What exactly became legal on October 17, 2018?

Subject to provincial or territorial restrictions, adults who are 18 years of age or older are now legally able to:

– possess up to 30 grams of legal cannabis, dried or equivalent in non-dried form in public;

– share up to 30 grams of legal cannabis with other adults;

– buy dried or fresh cannabis and cannabis oil from a provincially-licensed retailer;

– grow, from licensed seed or seedlings, up to 4 cannabis plants per residence for personal use;

– make cannabis products, such as food and drinks, at home as long as organic solvents are not used to create concentrated products;

– purchase cannabis online from federally-licensed producers.

For more information about the new licence types and regulations, visit our site at http://www.bccraftsupply.ca/licencing/licence-types/

 

Q. Does BCCS buy cannabis products other than the flower/bud?

-Yes, we will buy from oils and other derivatives from micro-processors as well.  

 

Q. How much money will I make?

-This depends entirely on your facility’s production rates and the market price for cannabis.

~ Hypothetically speaking, if a craft cultivator yields an average of X grams of cannabis per square foot in a 2100 ft2 canopy space (which is the maximum allowable cultivation space under the Micro Cultivation Licence), they would produce approximately Y grams per annually. Assuming an average price of $Z per gram, they would earn a gross income of $_____________.

 

Q. How are cannabis sale prices determined?

-BCCS will buy growers’ cannabis at market prices. This will be determined by the market itself and our marketing team. Products will be graded and purchased accordingly.

 

Q. Does BCCS pickup a grower’s cannabis whenever the product is ready or at regularly stated intervals?

-Each arrangement will be specific to the supply/purchase agreement. Factors such as geographic location may be a factor in determining the schedule and means by which product is purchased and transported.

 

Q. How long is the term of the contract?

-2 years with option to extend an additional 4 years on condition that the grower receives their licence from Health Canada during the initial two-year period.

 

Q. What happens if the grower does not receive their licence during this two-year period?

-BCCS is not liable if the client does not receive their licence. As a consultant, we will provide expert advice and guidance throughout the application process, but cannot be held responsible if Health Canada rejects the client’s application. For the length of the term specified by the contract, however, BCCS will continue to work with the client until they receive their licence.

 

Q. How do I obtain plant genetics?

-Under the Cannabis Act, growers may “declare” plant genetics acquired prior to licence approval at the time their licence is issued. After this period they must purchase plant genetics from a licenced nursery or LP. BC Craft Supply can help growers to acquire the genetics they desire.

 

Q. Who will be my point of contact in the organization?

-Our Quality Assurance Specialist will be the primary point of contact for growers. Where applicable, growers will also be in contact with Master Growers and Craft Curators for more specialized guidance.

 

Q. How often will I have inspections by Health Canada?

-It is unclear at this point how exactly Health Canada will operate, but it seems likely that inspections will be carried out monthly. Inspection frequency is usually based on the grower’s adherence to federal regulations – infractions (such as a failure to follow the established SOPs) will likely result in more frequent audits by Health Canada.

 

Q. Am I limited to growing a certain number of plants?

-No. The limits on production are defined by the size of the grower’s canopy space. Canopy space is the amount of space in a facility that is specifically dedicated to the growth and flowering of cannabis plants. All plants and plant parts must be contained in this area. It is the sole space in which all cultivation, propagation, and harvesting must occur. Canopy space does not include other areas of the operation such as processing spaces, administrative offices, or shipping and receiving areas. Micro Cultivators are limited to a maximum of 2100 ft2 (200 m2) of canopy space.

 

Q. How big can a grow site be?

-There is no limit on the size of the facility set out federally.  Municipalities may have limits based on property zoning, etc. Plant surface area has a maximum of 200 m2, or 2,100 ft2, which can be grown indoors or outdoors but cannot exceed the specified square footage at any given time.

 

Q. How do I make my site compliant?

-This is a big question. The short answer is that Health Canada has a number of criteria for site compliance, which our Quality Assurance Specialists will help clients to meet. The longer answer is addressed on our website at http://www.bccraftsupply.ca/licencing/the-new-licencing-system/

 

Q. Can I grow at home?

-No. You can, however, subdivide and construct another building to produce on your property if your municipal/by-law restrictions allow it.  You cannot have a dwelling on the same address as your growing facility, so it must be subdivided and with a distinct address.

 

Q. What is the minimum age requirement to grow?

-18 years old.

 

Q. Who is eligible to become a grower?

All growers must:

– be at least 18 years old;

– be a Canadian Resident;

– have a valid business address in Canada;

– not have a criminal record (unless a pardon has been granted);

– not be the subject of a receivership of your debts

– have not failed to comply with any Act of Parliament (other than the Excise Act, 2001) or of a provincial or territorial legislature that deals with the taxation or control of alcohol or tobacco, or any regulations under it in the past 5 years;

– have not acted to defraud her Majesty in the past 5 years;

– have sufficient financial resources to conduct your business in a responsible manner.

 

Q. What do I need to start growing?

There’s a short and long answer to this question. The short answer is that you need the following:

– A grow site that meets the requirements set by Health Canada (see section 6.4 in the “Cannabis Licensing Application Guide”);

– Security Clearance for yourself and any other persons related to your grow operation, through either the RCMP or the Commissionaires office

– Cannabis Tracking and Licencing System accounts for both the applicant and any associated individuals (Click Here);

– A letter of approval from your municipality;

– A cultivation licence.

We cover this subject in greater depth on our website, here:

http://www.bccraftsupply.ca/licencing/the-new-licencing-system/

 

Q. What do I need to obtain a Micro Cultivation Licence?

-In order to get licensed, owners and key personnel from prospective businesses will need to pass security screening, establish suitable Standard Operating Procedures (SOPs), meet physical security requirements, and have the facility approved by inspectors. The facility can be on residential land in a municipality that has approved this use in its by-laws, but can not be shared with a dwelling. It may sound like a lot at first but, having gone through this process ourselves, our team knows how to navigate the application procedures.

 

Q. Where can I grow?

-Location regulations tend to vary, dependent on the specifications and requirements set by the municipality/zoning bylaws that your grow site is in. It’s best to reach out to your municipality to determine what restrictions have been established regarding building and zoning expectations for your grow site, templates for this will be provided through use of our services.

 

Q. Can I sell my growing business after receiving a licence?

-Yes. However, the licence itself is connected to key personnel such as the Qualified Person in Charge or the Head of Security. Individuals who will perform these roles must be identified and screened during the application process, and so the buyer would risk losing that licence if they fail the security checks after acquiring the business. The new owner should therefore take the necessary steps before the transition of ownership and personnel is completed.

 

Q. As a grower, what sort of business expenses can I claim for tax purposes?

-All expenses relating to the operation of the facility and costs related to business development, etc. In this way, growers are no different from other business owners in Canada.

 

Q. What is the minimum amount of cannabis that BCCS will purchase from a grower?

-Currently there are no limits set.

 

Q. How long does it take to obtain a Micro Cultivation Licence, from start to finish?

-It is impossible to give a clear range at the moment. Currently there is a backlog of applicants waiting for licence approval because of the newness of the system. The length of the application process will also vary for each applicant because everyone’s circumstance is unique. We do expect that it will be easier to provide an accurate estimate to new builds versus retrofits for this reason.

 

Q. What type of contract is BCCS offering its growers?

-The contract being offered has a few facets.  As a whole it is a Memorandum Of Understanding (MOU). Its purpose is to protect both parties by stating, dating and signing the intentions and expectations set forth.

 

Q. Can growers have a nursery to supply their other micros with seeds, plants, or clones?

-With a nursery licence, yes. The nursery must have an address independent of their cultivation facility, however. Growers can also “declare” their genetics at the time of receiving their licence if they do not want to pursue a nursery licence.