Cannabis Licence Act, 2018, S.O. 2018, c. 12, Sched. 2

• Jurisdiction: Ontario

Cannabis Licence Act, 2018

S.o. 2018, chapter 12
Schedule 2

Consolidation Period: From March 6, 2024 to the e-Laws currency date.

Last amendments: 2024, c. 2, Sched 3.

CONTENTS

Interpretation and Application

Definitions

1 (1) In this Act,

“Board” means the board of the Commission; (“conseil”)

“cannabis” means cannabis with respect to which the Cannabis Control Act, 2017 applies; (“cannabis”)

“cannabis retail store” means a store operated under the authority of a retail store authorization; (“magasin de vente au détail de cannabis”)

“Commission” means the Alcohol and Gaming Commission of Ontario continued under the Alcohol and Gaming Commission of Ontario Act, 2019; (“Commission”)

“council of the band” has the same meaning as in subsection 2 (1) of the Indian Act (Canada); (“conseil de bande”)

“distribute”, “Ontario Cannabis Retail Corporation” and “sell” have the same meaning as in the Cannabis Control Act, 2017; (“distribuer”, “Société ontarienne de vente du cannabis”, “vente”)

“Indian” has the same meaning as in subsection 2 (1) of the Indian Act (Canada); (“Indien”)

“Minister” means the Attorney General or such other member of the Executive Council as may be assigned the administration of this Act under the Executive Council Act; (“ministre”)

“municipality” means a local municipality; (“municipalité”)

“prescribed” means prescribed by the regulations; (“prescrit”)

“Registrar” means the Registrar under the Alcohol and Gaming Commission of Ontario Act, 2019; (“registrateur”)

“regulations” means the regulations made under this Act; (“règlements”)

“reserve” means a reserve as defined in subsection 2 (1) of the Indian Act (Canada) or an Indian settlement located on Crown land, the Indian inhabitants of which are treated by Indigenous and Northern Affairs Canada in the same manner as Indians residing on a reserve; (“réserve”)

“Tribunal” means the Licence Appeal Tribunal established under the Licence Appeal Tribunal Act, 1999. (“Tribunal”) 2018, c. 12, Sched. 2, s. 1 (1); 2019, c. 15, Sched. 1, s. 20 (1, 2); 2021, c. 34, Sched. 2, s. 1.

Interpretation, interested in another person

(2) For the purposes of this Act, a person is interested in another person if the first person,

(a) has, or may have in the opinion of the Registrar based on reasonable grounds, a beneficial interest of any kind, either directly or indirectly, in the other person’s business, including but not limited to a holder, directly or indirectly, of shares or other securities;

(b) exercises, or may exercise in the opinion of the Registrar based on reasonable grounds, direct or indirect control over the other person’s business; or

(c) has provided, or may have provided in the opinion of the Registrar based on reasonable grounds, direct or indirect financing to the other person’s business. 2018, c. 12, Sched. 2, s. 1 (2).

Section Amendments with date in force (d/m/y)

2019, c. 15, Sched. 1, s. 20 (1, 2) - 29/11/2021

2021, c. 34, Sched. 2, s. 1 - 02/12/2021

Non-application of Act to Ontario Cannabis Retail Corporation

2 This Act does not apply with respect to the Ontario Cannabis Retail Corporation.

Licences and Authorizations

Retail operator licence

3 (1) Subject to the regulations, a person may apply to the Registrar for a retail operator licence.

Restriction, age

(2) In order to apply under subsection (1), an individual must be at least 19 years of age or, in the case of an applicant that is a corporation, every director, officer and shareholder of the corporation must be at least 19 years of age.

Restriction, prior refusal or revocation

(3) Despite subsection (1), a person who has been refused a retail operator licence or the renewal of a retail operator licence, or who was the holder of a retail operator licence that was revoked, may not apply for a retail operator licence until after the second anniversary of the refusal or revocation, unless the Registrar is satisfied that there has been a significant change in circumstances since the refusal or revocation.

Eligibility

(4) An applicant is not eligible to be issued a retail operator licence in any of the following circumstances:

1. There are reasonable grounds to believe that the applicant will not be financially responsible in the conduct of the applicant’s cannabis retail business, having regard to the financial history of any of the persons referred to in subsection (5).

2. There are reasonable grounds to believe that the applicant will not carry on business in accordance with the law, or with integrity, honesty or in the public interest, having regard to the past or present conduct of any of the persons referred to in subsection (5).

3. A person referred to in subsection (5) has been convicted of or charged with an offence under this Act, the Cannabis Control Act, 2017, the Cannabis Act (Canada) or the regulations made under any of them that is prescribed for the purposes of this paragraph.

4. There are reasonable grounds to believe that the applicant is carrying on activities that are, or would be if the applicant were the holder of a retail operator licence, in contravention of or not in compliance with a provision of this Act, the Cannabis Control Act, 2017, the Cannabis Act (Canada) or the regulations made under any of them that is prescribed for the purposes of this paragraph.

5. The Registrar is not satisfied that the applicant will exercise sufficient control, either directly or indirectly, over the applicant’s cannabis retail business.

6. The applicant or an employee or agent of the applicant makes a false statement or provides false information in the application.

7. Any other circumstance that may be prescribed.

Same

(5) Paragraphs 1 to 3 of subsection (4) apply with respect to,

(a) the applicant;

(b) persons interested in the applicant; and

(c) if the applicant is a corporation, the directors, officers or shareholders of the applicant and persons interested in those directors, officers or shareholders.

Convictions, charges under Controlled Drugs and Substances Act (Canada)

(6) Paragraph 2 of subsection (4) does not prevent the issuance of a retail operator licence to an applicant if a person referred to in subsection (5) has been convicted of or charged with a prescribed offence under the Controlled Drugs and Substances Act (Canada) in relation to cannabis.

Issuance, refusal of retail operator licence

(7) The Registrar shall consider every application for a retail operator licence, and shall,

(a) issue the retail operator licence, if the applicant has met the application requirements, is not ineligible to be issued a retail operator licence and has paid the required fee; or

(b) issue a proposal to refuse the application.

Conditions on consent

(8) In issuing a retail operator licence, the Registrar may specify any conditions consented to by the applicant that are to be attached to the licence.

Retail store authorization

4 (1) Subject to the regulations, the following persons may apply to the Registrar for a retail store authorization to operate a specified proposed cannabis retail store:

1. A holder of a retail operator licence, subject to any conditions attached to the licence.

2. An applicant for a retail operator licence.

Restriction, applicable resolution in effect

(2) Despite subsection (1), an application may not be made for a retail store authorization in respect of a proposed cannabis retail store that would be located,

(a) in a municipality in which cannabis retail stores may not be located in accordance with section 41; or

(b) on a reserve on which cannabis retail stores may not be located in accordance with section 43.

Restriction, prior refusal or revocation

(3) Despite subsection (1), a person who has been refused a retail store authorization in respect of a proposed cannabis retail store or the renewal of a retail store authorization in respect of a cannabis retail store, or who was the holder of a retail store authorization that was revoked, may not apply for a retail store authorization in respect of the same cannabis retail store or proposed cannabis retail store until after the second anniversary of the refusal or revocation, unless the Registrar is satisfied that there has been a significant change in circumstances since the refusal or revocation.

Restriction, producers

(4) A person who is the holder of a prescribed licence issued under the Cannabis Act (Canada) to produce cannabis for commercial purposes or, if no licence or licences are prescribed, a person who is the holder of any such licence, is subject to the following restrictions in respect of an application that may be made by the person under subsection (1):

1. Except as otherwise provided by the regulations, the proposed cannabis retail store must be located on or within the site set out in the licence.

2. The person and its affiliates, as defined by the regulations, may not between them hold more than one retail store authorization or such other number of retail store authorizations as may be prescribed.

3. Any other restriction that may be prescribed. 2019, c. 15, Sched. 4, s. 1.

One store per authorization

(5) A separate application is required in respect of each proposed cannabis retail store, and a retail store authorization that is issued only authorizes the operation of the store specified in the application for the authorization.

Eligibility

(6) An applicant is not eligible to be issued a retail store authorization in respect of a proposed cannabis retail store in any of the following circumstances:

1. The applicant is not, or would not at the time of the issuance of the authorization be, the holder of a retail operator licence, or is a holder of a retail operator licence that is subject to conditions that prevent the application for or issuance of a retail store authorization in respect of the proposed store.

2. A person referred to in clauses 3 (5) (a) to (c) has been...