NLR 94/18 - Cannabis Licensing and Operations Regulations under the Cannabis Control Act

NEWFOUNDLAND AND LABRADOR REGULATION 94/18 Cannabis Licensing and Operations Regulations under the Cannabis Control Act (O.C. 2018-208) Amended by: 72/20 NEWFOUNDLAND AND LABRADOR REGULATION 94/18 Cannabis Licensing and Operations Regulations under the Cannabis Control Act (O.C. 2018-208) (Filed October 16, 2018) Under the authority of section 102 of the Cannabis Control Act , the board of directors of the Newfoundland and Labrador Liquor Corporation, with the approval of the Lieutenant-Governor in Council, makes the following regulations. Dated at St. John's , October 16, 2018. Wayne Myles, Q.C. Chairperson, Board of Directors of the Newfoundland and Labrador Liquor Corporation Ann Marie Hann Clerk of the Executive Council REGULATIONS Analysis 1. Short title 2. Definitions 3. Application 4. Classes of licences 5. Application for licence 6. Notice 7. Terms and conditions of licences 8. Storage of cannabis 9. Hours of sale 10. Online sales 11. Period of inactivity 12. Commencement Short title 1. These regulations may be cited as the Cannabis Licensing and Operations Regulations . 94/18 s1 Back to Top Definitions 2. In these regulations (a) "Act" means, unless otherwise stated, the Cannabis Control Act ; (b) "brand element" means brand element as defined in the federal Act; (c) "online content" means information that is available on the internet through or on a website or otherwise that is maintained, published or made available by a retailer; (d) "online order" means an order taken or received by the corporation or a retailer on the internet through or on a website or otherwise; (e) "promote" means promote as defined in the federal Act; (f) "secure area" means the secure area required under section 4; and (g) "unsaleable" means unsuitable for sale or supply because (i) it is contaminated, (ii) it is subject to a recall order made under the federal Act, (iii) it is subject to a recall directive issued by the corporation, (iv) the package or container has been tampered with, opened, unsealed, manipulated or otherwise altered or a label has been added to or removed from the package or container, or (v) where there is an expiry date, that expiry date has passed. 94/18 s2 Back to Top Application 3. These regulations, unless otherwise stated, do not apply to (a) the distribution, possession, purchase, sale, consumption, cultivation, propagation and growth of cannabis for medical purposes in accordance with the federal Act; (b) industrial hemp as defined in the federal Act; or (c) a drug under the Food and Drugs Act ( Canada ) that contains cannabis. 94/18 s3 Back to Top Classes of licences 4. (1) There are 2 classes of licences that may be issued by the board for a cannabis store: (a) tier 1; and (b) tier 2. (2) There are 2 classes of licences that may be issued by the board for a cannabis retail location: (a) tier 3; and (b) tier 4. (3) A tier 1 licence may be issued in relation to a place or premises which meets the following requirements: (a) the place or premises is configured as a stand-alone cannabis store; (b) the area of the place or premises where cannabis will be stored, sold or otherwise supplied is separate and does not co-exist and is not contained in the same space as another establishment; (c) a person is not able and is not required to pass through the interior of the place or premises in order to access an area which is unrelated to the cannabis store; (d) there is sufficient space for the storage, sale and supply of cannabis; (e) there is a secure area which (i) is equipped with a commercial lock or locking mechanism, (ii) is a permanent area with walls that are fixed or is a vault, safe, locker, cabinet or other enclosure that is fixed to the floor or a wall, and (iii) has the capacity to store all of the cannabis purchased or obtained by a retailer from a producer for that cannabis store or cannabis retail location; (f) the place or premises has an intrusion detection system which (i) allows the detection of any attempted or unauthorized access to the place or premises or any attempted or unauthorized tampering with the system, and (ii) monitors the area of the place or premises in which cannabis will be sold or otherwise supplied, the secure area where cannabis will be stored and the entrance and exit doors of the place or premises; and (g) the place or premises has a video surveillance system which (i) is capable of making a visible recording of any illicit conduct in the conditions under which the video surveillance system is used, and (ii) monitors the area of the place or premises in which cannabis will be sold or otherwise supplied, the secure area where cannabis will be stored and the entrance and exit doors of the place or premises. (4) A tier 2 licence may be issued in relation to a place or premises which meets the following requirements: (a) the place or premises is configured as a stand-alone cannabis store located within a retail establishment that (i) is not a cannabis store or cannabis retail location, (ii) does not include a pharmacy, and (iii) has not been issued a lounge licence under the Liquor Licensing Regulations ; (b) the area of the place or premises where cannabis will be stored, sold or otherwise supplied is separate from the retail establishment; (c) a person is not able and is not required to pass through the interior of the place or premises in order to access the retail establishment or an area which is unrelated to the cannabis store; and (d) the requirements set out in paragraphs (3)(d) to (g). (5) A tier 3 licence may be issued in relation to a place or premises which meets the following requirements: (a) the place or premises is configured as a separate point of sale within a retail establishment; (b) the retail establishment in which it is located (i) does not include a pharmacy, and (ii) has not been issued a lounge licence under the Liquor Licensing Regulations ; (c) there is a counter designated for the sale and supply of cannabis and cannabis accessories which is separate and apart from the counter that is used by the retail establishment in which it is located; and (d) the requirements set out in paragraphs (3)(d) to (g). (6) A tier 4 licence may be issued in relation to a place or premises which meets the following requirements: (a) the sale and supply of cannabis and cannabis accessories occurs at the same counter that is used by the retail establishment in which it is located; and (b) the requirements set out in paragraphs (3)(d) to (g) and (5)(b). 94/18 s4 Back to Top Application for licence 5. (1) An application for a licence shall include the following information in addition to the information required under the Act: (a) personal data in the form set by the board for the officer or agent in charge of the place or premises to which the licence will apply; (b) proof of identity satisfactory to the board for the officer or agent in charge of the place or premises to which the licence will apply; (c) confirmation in writing from the city or municipality in which the place or premises to which the licence will apply is located that the city or municipality does not object to a licence being issued to the applicant and the proposed cannabis store or cannabis retail location would not violate the city's or municipality's zoning by-laws and regulations; (d) evidence satisfactory to the board that the applicant owns or is in lawful possession of the place or premises to which the licence will apply; (e) a plan of the place or premises to which the licence will apply and where the application is for a tier 3 or tier 4 licence, a plan of the retail establishment in which it will be located that (i) is drawn to scale, (ii) shows all areas of the place or premises and the retail establishment and the dimensions of all of those areas, and (iii) is on paper that is 22 centimetres by 36 centimetres or smaller; (f) evidence satisfactory to the board that the notice required under section 21 of the Act was posted in accordance with the Act and these regulations; (g) evidence satisfactory to the board that all exterior windows of the cannabis store or cannabis retail location (i) have been hardened or protected against being broken, or (ii) are not likely to permit access by a person to the cannabis store or cannabis retail location if the window is broken; (h) evidence satisfactory to the board that all entrance and exit doors and doorways of the cannabis store or cannabis retail location (i) have been hardened or protected against being broken, and (ii) are equipped with a commercial lock or locking mechanism; (i) evidence satisfactory to the board that the place or premises to which the licence will apply is adequately illuminated; (j) evidence satisfactory to the board that the applicant (i) is not employed by the corporation and is not a member of or employed by the board, (ii) is not a police officer, and (iii) is not indebted to the corporation or the board; and (k) a consent for the disclosure of information in relation to the application. (2) Where the applicant is an incorporated company, an application for a licence shall include the following information in addition to the information required under the Act and this section: (a) a copy of the most recent notice of directors of the company and where that notice of directors does not include the names and addresses of the current directors and officers of the company, a list of those names and addresses; and (b) where the applicant is a subsidiary of an incorporated company, a copy of the most recent notice of directors of each parent company and where that notice of directors does not include the names and addresses of the current directors and officers of each parent company, a list of those names and addresses. (3) Where the applicant is applying on behalf of a beneficial owner, an application for a licence shall include the following information in addition to the information required under the Act and this section: (a) personal data in the form set by the board for the beneficial owner; and (b) proof of identity satisfactory to the board for the beneficial owner. 94/18 s5 Back to Top Notice 6. (1) A notice under section 21 of the Act shall include (a) the heading "Public Notice"; (b) a statement of the intention of the applicant to apply for a licence or the person to request permission to transfer a licence; (c) the address of the place or premises to which the licence will apply or does apply; (d) the name of the person making the application or requesting permission to transfer a licence; (e) a deadline for objecting to the application or request that is 4 weeks from the date the notice is first posted; and (f) the manner set by the corporation in which an objection shall be filed. (2) A notice under section 21 of the Act shall be posted for the 3 consecutive weeks immediately before the application or request is made (a) in a newspaper circulating in the area where the place or premises to which the licence will apply or does apply is located; (b) in 3 public locations in the electoral district where the place or premises to which the licence will apply or does apply is located; and (c) on a website directed by the corporation. (3) In addition to the requirements under subsection (2), a notice under section 21 of the Act shall be posted on or at the place or premises to which the licence will apply or does apply for the 3 consecutive weeks immediately before the application or request is made up to the date the board issues a licence or refuses to issue a licence or grants or refuses permission to transfer a licence. 94/18 s6 Back to Top Terms and conditions of licences 7. (1) The following are terms and conditions of a licence with respect to the sale and supply of cannabis in addition to the terms and conditions imposed by the board and the Act: (a) a retailer and an employee of a retailer shall not sell or otherwise supply cannabis at a price other than the price fixed by the corporation; (b) a retailer and an employee of a retailer shall not supply cannabis to a person until that person has paid the price fixed by the corporation in full; (c) a retailer and an employee of a retailer shall not do any of the following except in accordance with the written directions provided by the corporation: (i) dispose of cannabis, or (ii) remove cannabis from the cannabis store or cannabis retail location; (d) a retailer and an employee of a retailer shall not encourage or induce the sale, supply or consumption of cannabis or cannabis accessories by combining a sale or the supply of cannabis or cannabis accessories with the sale or the supply of any other product or service; (e) a retailer who holds a tier 3 licence and an employee of that retailer shall not sell or otherwise supply products other than cannabis and cannabis accessories from the counter designated for the sale and supply of cannabis and cannabis accessories unless those products are sold or otherwise supplied along with cannabis or cannabis accessories; (f) a retailer who holds a tier 3 licence shall ensure that cannabis and cannabis accessories are not sold or otherwise supplied from a counter other than the counter designated for the sale and supply of cannabis and cannabis accessories; (g) a retailer shall not pay or remunerate his, her or its employees with cannabis or cannabis accessories; (h) a retailer and an employee of a retailer shall not give cannabis or cannabis accessories gratuitously to any person; and (i) a retailer and an employee of a retailer shall not accept cannabis for a refund or as a return other than cannabis that is subject of a recall order made under the federal Act or a recall directive issued by the corporation. (2) The following are terms and conditions of a licence with respect to cannabis stores and cannabis retail locations in addition to the terms and conditions imposed by the board and the Act: (a) a retailer who holds a tier 1 or tier 2 licence shall ensure that the interior of the cannabis store cannot be seen from the exterior of the cannabis store; (b) a retailer who holds a tier 1 or tier 2 licence shall ensure that cannabis and cannabis accessories in the interior of the cannabis store cannot be seen from the exterior of the cannabis store; (c) a retailer who holds a tier 1 or tier 2 licence shall ensure that a sign which indicates that a person who is under 19 years of age is prohibited from entering the cannabis store is located near every entrance and exit door; (d) a retailer who holds a tier 3 or tier 4 licence shall take reasonable measures to ensure that cannabis, cannabis accessories, brand elements and advertising and promotion relating to cannabis cannot be seen by a person who is under 19 years of age; (e) a retailer shall take reasonable measures to ensure that a package or container of cannabis purchased in or at the cannabis store or cannabis retail location is not opened in the interior of the cannabis store or cannabis retail location; (f) a retailer shall ensure that the secure area is locked when the cannabis store or cannabis retail location is closed to the public; (g) a retailer shall ensure that the intrusion detection system and the video surveillance system for the cannabis store or cannabis retail location is in good working order and continuously monitors the cannabis store or cannabis retail location; (h) a retailer who holds a tier 1 or tier 2 licence or an employee of that retailer shall immediately verify the age of each person who enters the cannabis store that appears to be under 19 years of age to ensure that the person is not under 19 years of age; (i) a retailer who holds a tier 3 or tier 4 licence or an employee of that retailer shall immediately verify the age of each person who makes inquiries about cannabis or cannabis accessories or attempts to purchase or obtain cannabis or cannabis accessories that appears to be under 19 years of age to ensure that the person is not under 19 years of age; (j) a retailer who holds a tier 2, tier 3 or tier 4 licence shall maintain books of account and records of transactions relating to cannabis and cannabis accessories separate from the books of account and records of transactions for the retail establishment in which it is located; (k) a retailer and an employee of a retailer shall not do any of the following without the prior written approval of the corporation: (i) alter the structure, walls, layout or configuration of the cannabis store or cannabis retail location, or (ii) alter the lock, locking mechanism, intrusion detection system, video surveillance system or anything that would adversely affect the security of the cannabis store or the cannabis retail location; and (l) a retailer shall ensure that the interior and the exterior of the cannabis store or cannabis retail location are kept clean and in good repair. (3) The following are terms and conditions of a licence with respect to promoting cannabis and cannabis accessories in addition to the terms and conditions imposed by the board and the Act: (a) a retailer and an employee of a retailer shall not sell, supply or offer to sell or supply anything that is not cannabis or a cannabis accessory, including a right to participate in a game, draw, lottery or contest, where it is sold, supplied or offered to be sold or supplied as an inducement for the purchase of cannabis or a cannabis accessory; (b) a retailer and an employee of a retailer shall not promote or engage in or conduct promotional activities with respect to cannabis or cannabis accessories on or from the exterior of the cannabis store or cannabis retail location unless otherwise permitted under the Act, regulations made under the Act or the federal Act; (c) a retailer and an employee of a retailer shall not make any claim or statement or provide advice with respect to any health effects of cannabis or provide information on cannabis for medical purposes; (d) a retailer who holds a tier 3 or tier 4 licence and an employee of that retailer shall not wear, use or display anything in or at the cannabis retail location that contains a brand element that promotes cannabis or cannabis accessories or the sale of cannabis or cannabis accessories; (e) a retailer who holds a tier 1 or tier 2 licence shall take reasonable measures to ensure that the online content for the cannabis store is not accessible to persons who are under 19 years of age; (f) a retailer who holds a tier 3 or tier 4 licence shall take reasonable measures to ensure that the online content for the cannabis retail location relating to cannabis and cannabis accessories is not accessible to persons who are under 19 years of age; and (g) a retailer shall ensure that the online content in relation to cannabis for the cannabis store or cannabis retail location does not contain any of the following information or advertising, references, promotions or links to the following information: (i) health and safety information that is not approved or published by the government of Canada , the government of the province or the corporation, (ii) any information relating to cannabis for medical purposes other than a link to a website maintained or published by the government of Canada , (iii) any information which encourages or induces risky behaviour, (iv) any information which encourages or induces the consumption of cannabis in a manner that is not socially responsible, (v) any information which encourages or induces the sale, gift, supply, purchase, possession, storage, consumption or transportation of cannabis contrary to the Act, the regulations made under the Act or the federal Act, (vi) any information that is false, misleading, deceptive or that is likely to create an erroneous impression about the cannabis and cannabis accessories for sale or supply by that retailer, and (vii) any information that is false, misleading, deceptive or that is likely to create an erroneous impression about the pricing or availability of cannabis and cannabis accessories for sale or supply by that retailer. (4) The following are terms and conditions of a licence with respect to recalls and unsaleable cannabis in addition to the terms and conditions imposed by the board and the Act: (a) a retailer shall store unsaleable cannabis in the secure area but separate and apart from cannabis that is not unsaleable cannabis; and (b) a retailer shall follow the written directions provided by the corporation with respect to unsaleable cannabis including the records that shall be kept with respect to unsaleable cannabis. (5) The following are terms and conditions of a licence with respect to reporting and records in addition to the terms and conditions imposed by the board and the Act: (a) a retailer shall report to the corporation a change in any information that was provided as part of his, her or its application; (b) a retailer shall report to the corporation a change in the ownership of the place or premises where the cannabis store or cannabis retail location is located; (c) a retailer shall report to the corporation any circumstance which the retailer knows or ought to know would disqualify him, her or it from being issued a licence under section 18 of the Act; (d) a retailer shall immediately report to the corporation a theft or an attempted theft by any person at the cannabis store or cannabis retail location; (e) a retailer shall keep all records, other than video surveillance, relating to the cannabis store or cannabis retail location for a minimum of 7 years from the date the record was created; (f) a retailer shall keep all video surveillance for 120 days from the date it was taken unless otherwise directed in writing by the corporation; and (g) notwithstanding paragraph (f), a retailer shall keep all video surveillance from the time a theft or attempted theft occurred for 2 years after the date of the theft or attempted theft where a report is made under paragraph (d) unless otherwise directed in writing by the corporation. (6) A report required under paragraph (5)(a), (b) or (c) shall be made to the corporation within 30 days of the date the change occurred or the circumstances became known to the retailer. 94/18 s7 Back to Top Storage of cannabis 8. (1) Cannabis purchased or obtained by a retailer from a producer and located in a cannabis store or cannabis retail location shall be (a) stored in accordance with any specifications provided by the producer of the cannabis; (b) sold and otherwise supplied, stocked, managed and dealt with by only those employees who are designated by the retailer; and (c) stored in a secure area that is locked when the cannabis store or cannabis retail location is closed to the public. (2) Notwithstanding paragraph (1)(c), the secure area may be unlocked while the cannabis store or cannabis retail location is closed to the public where (a) the area in which cannabis is sold is being restocked; (b) the retailer or an employee of the retailer is doing an inventory; (c) the retailer or an employee of the retailer is receiving delivery of cannabis; or (d) it is permitted by a written direction provided by the corporation. (3) A retailer shall not store cannabis at a cannabis store or cannabis retail location that was not purchased or obtained from a producer. (4) A retailer shall keep an up-to-date list of all employees who are designated under paragraph (1)(b). 94/18 s8 Back to Top Hours of sale 9. A retailer and an employee of a retailer are prohibited from selling or otherwise supplying cannabis between the hours of 2:00 a.m. and 9:00 a.m. 94/18 s9 Back to Top Online sales 10. (1) The corporation may sell cannabis through an online order at any time. (1.1) A retailer who holds a tier 1 licence may, with the approval of the corporation, sell cannabis through an online order at any time. (2) Cannabis that is sold through an online order shall not be delivered unless (a) a person takes delivery of the cannabis; and (b) the person who takes delivery of the cannabis is 19 years of age or older. (3) Notwithstanding section 9, a retailer may solicit or receive an online order for cannabis at any time. (4) Where an online order is taken or received by a retailer, other than a retailer referred to in subsection (1.1), the exchange of money, value or other consideration and the delivery of cannabis in relation to that online order shall take place in or at the cannabis store or cannabis retail location of the retailer who received that online order. 94/18 s10 ; 72/20 s1 Back to Top Period of inactivity 11. For the purpose of paragraphs 15(1)(b) and 34(1)(c) of the Act, the period of time that constitutes a period of inactivity is 180 days. 94/18 s11 Back to Top Commencement 12. These regulations come into force on October 17, 2018. 94/18 s12