The short answer
In BC, whether cannabis can be grown, processed or sold on a property is decided first by the local government's zoning. Health Canada licenses production but expects applicants to comply with local bylaws, and the province's Liquor and Cannabis Regulation Branch (LCRB) cannot issue a retail licence without a positive recommendation from the local government or Indigenous Nation. Checking zoning is the first step before buying, leasing or listing a facility for any cannabis use, and for most reuses as well.
Who regulates what
| Body | Role for a cannabis property |
|---|---|
| Municipality or regional district | Zoning, rezoning, temporary use permits, development permits, building permits, business licences |
| Health Canada | Federal licences for cultivation, processing and sale for medical purposes; requires notice to local authorities |
| LCRB (Province of BC) | Non-medical cannabis retail and producer retail store licences; relies on local government or Indigenous Nation recommendation |
| Agricultural Land Commission | Use of land in the Agricultural Land Reserve (see ALR and farm classification) |
| Indigenous Nations | Recommendations on retail licences; some Nations have cannabis agreements with the province |
A note on First Nations jurisdiction
Section 119 of BC's Cannabis Control and Licensing Act allows the province to make government-to-government agreements with First Nations that vary provincial cannabis rules. The province lists eight signed agreements: Cowichan Tribes, Gitanmaax Band, Kispiox First Nation, Lhtako Dene Nation, Shxwhá:y Village, Snuneymuxw First Nation, Tsleil-Waututh Nation and Williams Lake First Nation (Government of BC). For property on or near First Nations lands, the applicable rules can differ from ordinary municipal zoning, and the Nation's own laws and processes should be checked directly.
The local government tools that matter
Zoning bylaws and rezoning
BC local governments can divide their area into zones and regulate the use, density, siting and size of land and buildings in each zone (Local Government Act, s. 479). Some BC bylaws name cannabis production, processing and retail as specific uses and limit them to certain zones. For example, Vernon's 2018 amendments allowed cannabis retail in several commercial zones, growing in its A1 agricultural zone in the ALR and I1 Light Industrial zone, and processing in I1 and I4 Business Park zones (City of Vernon, December 2018). Bylaws change, so treat any example as a starting point only.
If the use is not permitted, the owner can apply to rezone. A zoning bylaw generally needs a public hearing, although the Act now limits public hearings for certain bylaws consistent with the official community plan (Local Government Act, s. 464). Rezoning is a council decision and is never assured.
Temporary use permits
A temporary use permit (TUP) can allow a use the zoning does not permit, with conditions. It lasts up to three years and can be renewed only once (Local Government Act, ss. 493 and 497). Municipalities issue TUPs by resolution in areas designated in their official community plan; regional districts can also issue them by bylaw in areas with no official community plan. TUPs suit trial or transitional uses, but lenders and buyers may place less value on a use that depends on one.
Development permits
An official community plan can designate development permit areas for purposes such as protecting the natural environment, protecting development from hazards, protecting farming, and the form and character of commercial and industrial development (Local Government Act, s. 488). A development permit can vary or supplement some bylaw requirements but cannot change the permitted use or density (s. 490). Building a new greenhouse or processing wing in such an area usually needs one.
Business licences
Municipal councils can regulate business by bylaw and set up licensing systems with terms and conditions (Community Charter, ss. 8(6) and 15). Check whether the local business licence bylaw sets cannabis-specific conditions, and confirm whether the operator, the landlord or both need one.
Non-conforming uses
A use that was lawful before a bylaw changed can continue as a non-conforming use, but if it is discontinued for a continuous six months, later use must follow the current bylaw (Local Government Act, s. 528). This is important for facilities that have sat empty since a licence holder left.
Cultivation and processing: Health Canada and local authorities
Health Canada tells applicants to confirm that municipal bylaws allow them to operate before preparing a site, and says applicants are responsible for complying with provincial laws and with municipal laws, bylaws and policies such as zoning, building permits, electrical and fire safety and nuisance control (Health Canada – Before you start applying).
Before applying for a cultivation or processing licence, the applicant must send written notice to senior officials of the local government, the local fire authority, and the local police force or RCMP detachment, including the proposed site address and the licence classes sought. The site must be fully built when the application is submitted (Health Canada). After a licence is issued, the holder must notify the same three authorities in writing within 30 days (Health Canada – Information for new licence holders).
In practice, this means local governments hear about proposed licensed sites early. For owners and landlords, a zoning or bylaw problem can stop a licence application or a lease deal, so it should be settled before significant money is spent. See leasing to a cannabis tenant for how this affects lease terms.
Retail: the local recommendation requirement
For a non-medical cannabis retail store in BC, "the general manager cannot issue a licence without a positive recommendation from the local government or Indigenous Nation." Where a licence may affect nearby residents, the local government or Nation must gather residents' views, and it can charge the applicant fees for its assessment (Government of BC – Role of local governments and Indigenous Nations).
The same approach applies to producer retail stores (farm-gate stores), where the LCRB may consider issuing a licence after the local government or Indigenous Nation recommends approval (Government of BC – Producer Retail Store licence). Farm-gate sales are covered on the micro-cultivation and nursery sites page.
How to check zoning for a BC property
- Identify the jurisdictionConfirm whether the property is in a municipality, a regional district electoral area, or on First Nations land. The rules and the office you deal with differ.
- Get the legal description and PIDThese are on the title and help planning staff find the right parcel.
- Read the zoning map and the zone textLook for the permitted uses, any cannabis-specific definitions, setbacks, and conditions such as enclosed-building requirements.
- Check the official community planThe OCP designation affects whether a rezoning is likely, and whether development permit areas apply.
- Check the ALRUse the ALC's ALR maps to see whether the parcel is in the reserve.
- Look for permits and historyAsk about existing TUPs, development permits, building permit history, and any bylaw enforcement files.
- Check the titleCovenants and other registered charges can restrict use regardless of zoning.
- Get it in writingAsk planning staff to confirm the interpretation in writing, and have a BC lawyer review it for a purchase or long lease.
Zoning interpretations can turn on definitions and past approvals. For a purchase, lease or licence application, a BC real estate lawyer or land-use planner should confirm that the intended use is permitted.
Zoning for non-cannabis reuse
When a facility will no longer be used for cannabis, the same checks apply to the new use. A cannabis-specific zone or site-specific amendment may not allow warehousing, food processing or other industry, and the reverse is also true. If a rezoning or development permit is needed and the site was used for an activity in Schedule 2 of the Contaminated Sites Regulation, a Site Disclosure Statement may be required with the application (Government of BC). See repurposing a cannabis facility and environmental and building due diligence.
How Sean can help
Sean Phillips, REALTOR® with Coldwell Banker Executives Realty, lists and sells cannabis and commercial properties across BC and has worked on Health Canada licence applications since 2014, including assembling site evidence for applicants. He can help owners and buyers identify the zoning and approval questions to put to planning staff and lawyers early in a deal. Paid consulting, including pre-purchase site audits, is quoted per site. Contact Sean about a specific property, or read about selling a cannabis grow facility.