Better than Chocolate
(1999)

Maggie's fledgling relationship with Kim is complicated when her recently divorced mother decides to move in with her closeted daughter. Eventually Maggie's relationship is discovered but after some initial alarm, her mother accepts her sexuality. Judy, emboldened by her impending surgery (to complete her transition from male to female), pursues the reluctant Frances, eventually winning her over.

The subplot of the lesbian bookstore's fight with Canada Customs (who keeps confiscating their material as 'obscene') is never fully resolved.

Thanks Mary C!