Cannabis Distribution Act [SBC 2018] c. 28

• Jurisdiction: British Columbia
• Year: 2018
• Act Number: [SBC 2018] c. 28
• Reference: [SBC 2018] c. 28
• Type of Document: Acts

Part 1 — Definitions and Application

1 Definitions

1 In this Act:

"administrator" means the individual designated under section 4 or, if none is designated, the minister;

"cannabis" has the same meaning as in the Cannabis Control and Licensing Act;

"cannabis accessory" has the same meaning as in the Cannabis Control and Licensing Act;

"cannabis official" means each of the following:

(a) the minister;

(b) the administrator;

(c) an employee of the government who is employed in the administration of this Act;

"cannabis records and information" means records and information in the custody or under the control of the administrator;

"federal licence holder" has the same meaning as in the Cannabis Control and Licensing Act;

"industrial hemp" has the same meaning as in the Cannabis Control and Licensing Act.

2 Application

2 Unless this Act provides otherwise, this Act does not apply in relation to

(a) industrial hemp, or

(b) cannabis that is produced or sold for medical purposes under the Cannabis Act (Canada) or under the order granted in Allard v. Canada, 2014 FC 280, as continued by the order granted in Allard v. Canada, 2016 FC 237.

Part 2 — Distribution and Retail of Cannabis

3 Government may buy and sell cannabis

3 (1) Subject to this section and any regulations, the government may buy and sell cannabis and cannabis accessories.

(2) The government may not sell cannabis unless

(a) the cannabis was produced by a federal licence holder for commercial purposes, and

(b) the government

(i) keeps records of the cannabis it possesses for commercial purposes, and

(ii) takes adequate measures to reduce the risk of the cannabis that it possesses for commercial purposes being diverted to an illicit market or activity.

(3) The government may not sell cannabis or cannabis accessories to an individual who is under 19 years of age.

(4) The government may not sell cannabis to a consumer unless the cannabis is registered as a cannabis product under section 6.

4 Designation of administrator

4 The minister may, by order, designate an employee of the government to administer this Act on behalf of the government.

5 Operation of distribution and retail business

5 (1) The administrator may establish and operate on behalf of the government

(a) warehouses for the storage and distribution of cannabis and cannabis accessories, and

(b) stores for the sale of cannabis and cannabis accessories to consumers and an online system for the sale of cannabis and cannabis accessories to retailers and consumers.

(2) The administrator may acquire and dispose of land on behalf of the government for the purposes of subsection (1).

(3) Subject to section 14 [confidentiality and information-sharing], the administrator may enter into agreements on behalf of the government for

(a) the purposes of section 3 (1) [government may buy and sell cannabis], and

(b) any other purpose of this Act.

6 Registration of cannabis products

6 (1) For the purposes of section 3 (4) [government sale of cannabis to consumers] of this Act and section 15 (c) [sale by licensees] of the Cannabis Control and Licensing Act, the administrator may register cannabis as a cannabis product.

(2) Without limiting the discretion of the administrator, the administrator may consider one or more of the following in determining whether to register cannabis as a cannabis product under subsection (1):

(a) the promotion of social responsibility in relation to cannabis;

(b) the nature, packaging and promotion of the cannabis;

(c) any prescribed criteria.

7 Accountability of administrator

7 (1) The administrator must report to the minister as the minister requires.

(2) The administrator must administer this Act

(a) in accordance with any general or special directions of the minister, and

(b) subject to paragraph (a), so as to

(i) promote social responsibility in British Columbia in relation to cannabis, and

(ii) establish the government as the sole supplier of cannabis to retailers in British Columbia.

Part 3 — Funding and Other Support

8 Definitions and application

8 (1) In this Part:

"cannabis revenue" means money received from the sale of cannabis or otherwise arising out of the administration of this Act;

"general manager" has the same meaning as in the Liquor Distribution Act;

"Liquor Distribution Branch" means the Liquor Distribution Branch continued under section 2 of the Liquor Distribution Act;

"liquor revenue" means money received from the sale of liquor or otherwise arising out of the administration of the Liquor Distribution Act.

(2) Sections 9 and 11 apply despite any other Act, including, without limitation, the Liquor Distribution Act and the Financial Administration Act.

9 Receipts and financial management

9 (1) Cannabis revenue must, at the close of each day's business, be applied, first, for the administration of this Act and, after that application, any balance remaining must be paid promptly into the consolidated revenue fund.

(2) If cannabis revenue is insufficient for the administration of this Act, the amount of the deficiency must be advanced from the consolidated revenue fund in accordance with arrangements made by the Minister of Finance.

(3) For the purposes of subsection (2),

(a) each advance from the consolidated revenue fund must be recorded to the satisfaction of the Minister of Finance and reported to that minister, and

(b) the Comptroller General may direct the methods and procedures to be employed in administering this section.

10 Annual report

10 (1) The administrator must prepare and forward annually to the minister a report for the 12-month period ending on March 31 of the year in which the report is made.

(2) The annual report must contain the following:

(a) a report on the administration of this Act for that period;

(b) a financial statement, prepared in accordance with generally accepted accounting principles applied on a basis satisfactory to the Comptroller General, showing

(i) the assets and liabilities at the end of that period that are administered under this Act, and

(ii) the results of the administration of this Act for that period;

(c) any other information requested by the minister.

(3) The minister must lay the report before the Legislative Assembly if it is then sitting, and if it is not sitting, within 15 days after the start of the first session in the following calendar year.

11 Support from Liquor Distribution Branch

11 If the general...