GENERAL

CONTENTS Interpretation 1. Interpretation 2. Affiliates General Ineligibility 3. Ineligibility, prescribed offences 4. Ineligibility, contravention of prescribed provisions 5. Prescribed offences under Controlled Drugs and Substances Act (Canada) 6. Retail operator licence, compliance with tax laws 7. Retail operator licence, corporate ownership 8. Ineligibility, other circumstances Retail Store Authorizations 9. Cannabis retail store requirements 10. Public interest 10.1 Notice of application not required 11. No issuance, proximity to schools 12. Maximum permissible authorizations 13. Display of authorization, etc. 14. No distribution by third party Revocations and Suspensions 15. Revocation without proposal, prescribed contraventions 16. Public notice of suspension of authorization Transfers 16.1 Transfers of retail store authorizations Operation of Cannabis Retail Stores 17. Permissible hours of operation 17.1 Sale and purchase of cannabis 18. Prescribed products and services 19. Cannabis retail seal 20. Preventing entry of individuals under 19 years of age 20.1 Distribution in adjacent area 20.2 Delivery 21. Training requirements Matters Respecting Municipalities 22. Notice of resolution Matters Respecting Reserves 23. Notice of resolution 23.1 Restriction, delivery on reserves Exemptions 24. Application fees, cannabis retail store on reserve Schedule 1 Cannabis retail seal Interpretation Interpretation 1. In this Regulation, “licensed producer” means a person who is authorized by a licence issued under the Cannabis Act (Canada) to produce cannabis for commercial purposes. Affiliates 2. (1) In paragraph 2 of subsection 4 (4) of the Act and this Regulation, an affiliate of a person is, (a) a corporation that is affiliated with the person for the purposes of the Business Corporations Act, as set out in subsection 1 (4) of that Act; (b) a corporation that is affiliated with another corporation in the manner referred to in clause (a), if that other corporation is at the same time affiliated with the person in that manner; (c) a corporation of which the person beneficially owns or controls, directly or indirectly, shares or securities currently convertible into shares carrying more than 25 per cent of the voting rights under all circumstances or by reason of the occurrence of an event that has occurred and is continuing, or a currently exercisable option or right to purchase such shares or such convertible securities; (d) a partner in the same partnership as the person; (e) a trust in which the person has a substantial beneficial interest, whether vested or contingent, or with respect to which the person acts as a trustee; (f) a member of the same joint venture, unincorporated association, unincorporated syndicate or unincorporated organization as the person; or (g) a person who is deemed under subsection (2) or (3) to be an affiliate of the person or an affiliate of an affiliate of the person. O. Reg. 468/18, s. 2 (1); O. Reg. 426/19, s. 1. (2) A person is deemed to be an affiliate of another person if the person is a corporation and the other person, or a group of persons or entities acting jointly or in concert with the other person, owns a beneficial interest in shares of the corporation, (a) carrying at least 50 per cent of the votes for the election of directors of the corporation and the votes carried by the shares are sufficient, if exercised, to elect a director of the corporation; or (b) having a fair market value, including a premium for control if applicable, of at least 50 per cent of the fair market value of all the issued and outstanding shares of the corporation. O. Reg. 468/18, s. 2 (2). (3) A person is deemed to be an affiliate of another person if the other person, or a group of persons or entities acting jointly or in concert with the other person, has any direct or indirect influence that, if exercised, would result in control in fact of that person. O. Reg. 468/18, s. 2 (3). (4) Subsections (2) and (3) apply with respect to a group of persons or entities acting jointly or in concert with another person whether or not they are acting pursuant to an agreement or arrangement. O. Reg. 468/18, s. 2 (4). General Ineligibility Ineligibility, prescribed offences 3. The following offences are prescribed for the purposes of paragraph 3 of subsection 3 (4) of the Act, paragraph 2 of subsection 4 (6) of the Act and paragraph 2 of subsection 5 (4) of the Act: 1. An offence under the Act. 2. An offence under section 6, 7, 8, 8.1, 13 or 15 of the Cannabis Control Act, 2017 or, before the day on which section 1 of Schedule 1 to the Cannabis Statute Law Amendment Act, 2018 came into force, the Cannabis Act, 2017. 3. An offence under Division 1 of Part 1 of the Cannabis Act (Canada). Ineligibility, contravention of prescribed provisions 4. The following provisions are prescribed for the purposes of paragraph 4 of subsection 3 (4) of the Act, paragraph 3 of subsection 4 (6) of the Act and paragraph 3 of subsection 5 (4) of the Act: 1. Sections 6, 7, 8, 8.1, 13 and 15 of the Cannabis Control Act, 2017 or, before the day on which section 1 of Schedule 1 to the Cannabis Statute Law Amendment Act, 2018 came into force, the Cannabis Act, 2017. 2. Sections 8, 9, 10, 11, 12, 13 and 14 of the Cannabis Act (Canada). Prescribed offences under Controlled Drugs and Substances Act (Canada) 5. Sections 4, 5, 7 and 7.1 of the Controlled Drugs and Substances Act (Canada) are prescribed for the purposes of subsections 3 (6) and 5 (5) of the Act. Retail operator licence, compliance with tax laws 6. (1) A person is not eligible to be issued a retail operator licence unless the person provides, along with their application, an attestation in the form required by the Registrar stating that the person, (a) has verified their tax compliance status with the Ministry of Finance; (b) is not in default of filing a return under a tax statute administered and enforced by the Government of Ontario, or of paying any tax, penalty or interest assessed under any such statute for which payment arrangements have not been made; and (c) either, (i) does not have a business number with the Canada Revenue Agency, or (ii) is not in default of filing a return under the Taxation Act, 2007, the Income Tax Act (Canada), Part IX of the Excise Tax Act (Canada) or an Act of another province or territory that imposes a tax on corporations and is administered and enforced by the Canada Revenue Agency. O. Reg. 209/24, s. 1. (2) The Registrar may require a person who made an attestation described in subsection (1) to provide any additional information required to demonstrate that the attestation is true and accurate. O. Reg. 209/24, s. 1. Retail operator licence, corporate ownership 7. A corporation is not eligible to be issued a retail operator licence if, (a) more than 25 per cent of the corporation is owned or controlled, directly or indirectly, by one or more licensed producers or their affiliates; or (b) the corporation directly or indirectly owns or controls more than 25 per cent of a licensed producer or its affiliates. O. Reg. 84/22, s. 1. Ineligibility, other circumstances 8. A person is not eligible to be issued a licence or authorization under the Act if the person is or has been a member of a criminal organization as defined in subsection 467.1 (1) of the Criminal Code (Canada), or is or has been involved in, or contributes or has contributed to, the activities of such an organization. 8.1 Revoked: O. Reg. 426/19, s. 3. 8.2 Revoked: O. Reg. 426/19, s. 4 (2). 8.3 Revoked: O. Reg. 426/19, s. 4 (1). Retail Store Authorizations Cannabis retail store requirements 9. (1) A retail store authorization may not be issued with respect to a proposed cannabis retail store if, (a) the retail space where cannabis would be sold, (i) would not be enclosed by walls separating it from any other commercial establishment or activity and from any outdoor area, or (ii) could be entered from or passed through in order to access any other commercial establishment or activity, other than a common area of an enclosed shopping mall; or (b) the premises at which the cannabis to be sold in the store would be received or stored would be accessible to any other commercial establishment or activity or to the public. O. Reg. 468/18, s. 9. (2) Clause (1) (a) does not apply with respect to automated teller machines (ATMs) to be located in the retail space. O. Reg. 426/19, s. 5. (3) Subclause (1) (a) (ii) does not apply to spaces shared with other commercial establishments that are only accessible to employees of those commercial establishments and of the cannabis retail store, or other non-customers who the employees permit to be in the shared spaces, if any entryways providing access to the retail space where cannabis would be sold are secured to prevent unauthorized entry to the retail space. O. Reg. 209/24, s. 2 (1). (4) It is a condition of a retail store authorization that the cannabis retail store continues to meet the requirements set out in this section. O. Reg. 209/24, s. 2 (2). Public interest 10. For the purposes of paragraph 5 of subsection 4 (6) of the Act, only the following matters are matters of public interest: 1. Protecting public health and safety. 2. Protecting youth and restricting their access to cannabis. 3. Preventing illicit activities in relation to cannabis. Notice of application not required 10.1 Notice of an application for a retail store authorization is not required to be given under subsection 4 (7) of the Act if a previous retail store authorization in respect of the proposed cannabis retail store specified in the application, (a) was in force less than 12 months before the application is made; and (b) was not revoked. O. Reg. 238/19, s. 3. No issuance, proximity to schools 11. (1) In this section, “private school” means a private school as defined in the Education Act. (2) For the purposes of clause 4 (12) (a) of the Act, a proposed cannabis retail store may not be located less than 150 metres from a school or a private school, as determined in accordance with the following: 1. If the school or private school is the primary or only occupant of a building, 150 metres shall be measured from the property line of the property on which the school or private school is located. 2. If the school or private school is not the primary or only occupant of a building, 150 meters shall be measured from the boundary of any space occupied by the school or private school within the building. (3) Subsection (2) does not apply to a private school if, (a) it is located on a reserve; or (b) it only offers classes through the Internet. Maximum permissible authorizations 12. (1) The Registrar shall refuse to issue a retail store authorization if, at the time the authorization would otherwise be issued, the applicant already holds, or the applicant and its affiliates between them already hold, 150 authorizations. O. Reg. 426/19, s. 6; O. Reg. 84/22, s. 2 (1); O. Reg. 371/23, s. 1 (1). (2) It is a condition of a retail operator licence that the holder, or the holder and its affiliates between them, hold no more than 150 authorizations. O. Reg. 371/23, s. 1 (2, 3). Display of authorization, etc. 13. (1) It is a condition of a retail store authorization that the holder, (a) display the authorization in a conspicuous place in the cannabis retail store; and (b) if the holder uses a website, app or other similar online platform for the purposes of the cannabis retail store, ensure that the authorization number, the holder’s name and the store’s operating name and address are displayed on the website, app or other platform. O. Reg. 84/22, s. 3. (2) The holder of a retail store authorization that is revoked or fails to be renewed shall ensure that the information referred to in subsection (1) is removed from display as soon as practicable after the revocation or non-renewal. O. Reg. 84/22, s. 3. No distribution by third party 14. (1) It is a condition of a retail store authorization that the holder not enter into contracts or agreements with any person or entity for the provision of cannabis distribution services. (2) Subsection (1) does not apply with respect to, (a) a contract or agreement with the Ontario Cannabis Retail Corporation or with a person or entity acting under a contract to provide distribution services to or on behalf of the Ontario Cannabis Retail Corporation; or (b) a contract of employment with the holder to work in a cannabis retail store. Revocations and Suspensions Revocation without proposal, prescribed contraventions 15. For the purposes of clause 11 (3) (c) of the Act, section 9 of the Cannabis Act (Canada) is prescribed. Public notice of suspension of authorization 16. (1) If a retail store authorization is suspended, the holder shall prominently display a sign respecting the suspension in a conspicuous place that is visible from the exterior of the public entrance to the cannabis retail store. (2) The sign referred to in subsection (1) shall be in the form approved by the Registrar and shall be displayed for the duration of the suspension. Transfers Transfers of retail store authorizations 16.1 (1) The Registrar may transfer a retail store authorization to a person who holds a retail operator licence in accordance with this section. O. Reg. 209/24, s. 3. (2) The following are prescribed as the requirements for the Registrar to approve the transfer of a retail store authorization under clause 17 (3) (a) of the Act: 1. The person to whom the authorization would be transferred must have met the application requirements and have paid the required fee. 1.1 The restrictions under subsection 4 (4) of the Act would not prevent the person to whom the authorization would be transferred from applying for the authorization. 2. The person to whom the authorization would be transferred must be eligible to be issued the authorization under subsection 4 (6) of the Act, other than under paragraph 5 or 6 of that subsection. 3. The person to whom the authorization would be transferred, together with its affiliates, would not hold more than the maximum number of authorizations permitted by subsection 12 (1) of this Regulation after the transfer. 4. No monetary penalties imposed under subsection 14 (5) of the Alcohol and Gaming Commission of Ontario Act, 2019 are outstanding against the current holder of the authorization. O. Reg. 209/24, s. 3; O. Reg. 520/24, s. 1. (3) The Registrar shall issue a proposal to refuse to transfer the authorization if the Registrar does not approve the transfer. O. Reg. 209/24, s. 3. Operation of Cannabis Retail Stores Permissible hours of operation 17. A cannabis retail store is authorized to be open to the public between 7 a.m. and 11 p.m. on any day. O. Reg. 468/18, s. 17; O. Reg. 125/26, s. 1. Sale and purchase of cannabis 17.1 (1) For the purposes of clause 18 (a) of the Act, the holder of a retail store authorization may sell cannabis to another holder of a retail store authorization if the following conditions are met: 1. The cannabis that is to be sold must be in the inventory of a cannabis retail store in respect of which the holder has made a request under subsection 13 (1) of the Act to cancel the associated retail store authorization. 2. Neither of the authorizations may be under suspension, and no proposal to revoke or suspend either authorization, or the retail operator licence associated with either authorization, may have been issued. 3. The cannabis may only be sold to one other holder of a retail store authorization. 4. Before the cannabis is sold, the seller must give written notice of the sale to the Registrar containing any information required by the Registrar within the time and in the form and manner specified by the Registrar. 5. The cannabis must be sold in the packaging in which it was originally purchased from the Ontario Cannabis Retail Corporation. O. Reg. 209/24, s. 4. (2) The holder of a retail store authorization may, for the purposes of clause 18 (a) of the Act, sell or charge for cannabis that was purchased in accordance with subsection (1) from another holder of a retail store authorization. O. Reg. 209/24, s. 4. (3) For the purposes of section 19 of the Act, the holder of a retail store authorization may purchase cannabis from another holder of a retail store authorization if the cannabis is sold in accordance with subsection (1). O. Reg. 209/24, s. 4. Prescribed products and services 18. For the purposes of clause 18 (b) of the Act, the holder of a retail store authorization may sell or charge for, 1. Cannabis accessories within the meaning of subsection 2 (1) of the Cannabis Act (Canada). 2. Shopping bags. 3. Any item other than a cannabis accessory that relates in some direct way to cannabis or its use, such as an item that depicts cannabis or its use or that is wholly or partly cannabis-themed, but not including any food or drink that is not cannabis. 4. Delivery services. O. Reg. 468/18, s. 18; O. Reg. 426/19, s. 7; O. Reg. 84/22, s. 4. Cannabis retail seal 19. (1) In this section, “cannabis retail seal” means the cannabis retail seal set out in Schedule 1 to this Regulation. O. Reg. 84/22, s. 5. (2) For the purposes of subsection 7 (2) of the Act, the holder of a retail store authorization shall, (a) display the cannabis retail seal in a conspicuous place that is visible from the exterior of the public entrance to the cannabis retail store; and (b) if the holder uses a website, app or other similar online platform for the purposes of the cannabis retail store, ensure that the cannabis retail seal is prominently displayed on the website, app or other platform. O. Reg. 84/22, s. 5. (3) For the purposes of clause (2) (a), the displayed cannabis retail seal shall be at least 17 centimetres in width at its widest point by 20 centimetres in height. O. Reg. 84/22, s. 5. (4) Either the French version, the English version or both versions of the cannabis retail seal may be displayed. O. Reg. 468/18, s. 19 (4). (5) The holder of a retail store authorization that is revoked or fails to be renewed shall ensure that the cannabis retail seal is removed from display as soon as practicable after the revocation or non-renewal. O. Reg. 468/18, s. 19 (5). Preventing entry of individuals under 19 years of age 20. (1) The holder of a retail store authorization shall ensure that no individual who appears to be under 25 years of age is permitted to enter the cannabis retail store unless the holder or an employee of the holder has required the individual to provide a form of identification prescribed for the purposes of subsection 7 (2) of the Cannabis Control Act, 2017 and the holder or employee is satisfied that the individual is at least 19 years of age. (2) For the purposes of subsection (1), subsection 7 (3) of the Cannabis Control Act, 2017 applies with necessary modifications. Distribution in adjacent area 20.1 The holder of a retail store authorization shall ensure that cannabis purchased from a cannabis retail store under the authorization is distributed to a person in an area immediately adjacent to the store in accordance with the following rules: 1. The cannabis may only be distributed between 7 a.m. and 11 p.m. on any day. 2. The cannabis may only be distributed by the holder or an employee of the holder. O. Reg. 84/22, s. 6; O. Reg. 125/26, s. 2. Delivery 20.2 (1) The holder of a retail store authorization shall ensure that cannabis sold under the authorization is delivered in accordance with the following rules: 1. The cannabis may only be delivered by the holder or an employee of the holder. 2. The cannabis must be in its original, unopened packaging. 3. The cannabis may only be delivered to a residence or private place, as defined in section 22 of Ontario Regulation 745/21 (General) made under the Liquor Licence and Control Act, 2019. 4. The cannabis may only be delivered to an individual who is located at the address provided in the order for the purchase of the cannabis. 5. The cannabis may only be delivered during a time between 9 a.m. and 11 p.m. when the cannabis retail store is open to the public. O. Reg. 84/22, s. 6; O. Reg. 125/26, s. 3 (1). (2) On any day on which a landlord or owner of a premises on which a cannabis retail store is located requires the premises to be closed for any time between 9 a.m. and 11 p.m., the holder of the retail store authorization may, despite paragraph 5 of subsection (1), deliver cannabis between 9 a.m. and 11 p.m. O. Reg. 84/22, s. 6; O. Reg. 125/26, s. 3 (2). (3) Subsection (2) does not apply if the landlord or owner is a person interested in the holder of the retail store authorization. O. Reg. 84/22, s. 6. (4) Nothing in subsection (2) permits the holder of a retail store authorization to operate the cannabis retail store entirely or predominantly as a delivery business. O. Reg. 84/22, s. 6. (5) Any cannabis that is removed from a cannabis retail store for delivery but is not delivered during the hours permitted under this section for a day must be returned to the store that same day and remain there until the next day on which delivery is attempted. O. Reg. 84/22, s. 6. (6) The holder of a retail store authorization shall ensure that, (a) cannabis is not removed from the cannabis retail store’s inventory for delivery until an order to purchase the cannabis has been placed; and (b) cannabis is not delivered from the cannabis retail store unless the order to purchase the cannabis was placed with that store. O. Reg. 84/22, s. 6. Training requirements 21. (1) The Board may approve training courses or programs, including but not limited to training courses or programs respecting, (a) the responsible sale and distribution of cannabis; (b) record keeping requirements under the Act; and (c) measures required to be taken under the Act to reduce the risk of cannabis being diverted to an illicit market or activity. O. Reg. 468/18, s. 21 (1); O. Reg. 84/22, s. 7 (1). (2) The following individuals are required to successfully complete training courses or programs approved under subsection (1): 1. Holders of a retail store authorization. 2. Holders of a cannabis retail manager licence. 3. Revoked: O. Reg. 84/22, s. 7 (2). O. Reg. 468/18, s. 21 (2); O. Reg. 84/22, s. 7 (2). (3) The holder of a retail store authorization shall ensure that the following individuals successfully complete training courses or programs approved under subsection (1): 1. Every holder of a cannabis retail manager licence employed to work in the cannabis retail store. 2. Every other individual employed to work in the cannabis retail store or deliver cannabis sold through the store. 3. Every individual who provides security services in relation to the operation of the cannabis retail store. O. Reg. 84/22, s. 7 (3). Matters Respecting Municipalities Notice of resolution 22. (1) For the purposes of subsection 41 (5) of the Act, a municipality shall provide to the Registrar written notice of a resolution passed under that section no later than three business days after the resolution is passed. (2) Despite subsection (1), notice of a resolution referred to in subsection 41 (1) of the Act shall not be provided to the Registrar later than January 22, 2019. (3) In subsection (1), “business day” means a day from Monday to Friday, other than a holiday. Matters Respecting Reserves Notice of resolution 23. For the purposes of subsection 43 (5) of the Act, a council of the band shall as soon as practicable after the passing of a resolution referred to in that section provide to the Registrar written notice of the resolution. Restriction, delivery on reserves 23.1 (1) This section applies if the Registrar receives a copy of a resolution of the council of the band in respect of a reserve requesting that cannabis sold under a retail store authorization not be delivered on the reserve. O. Reg. 84/22, s. 8. (2) The Registrar shall, as soon as practicable after receiving the copy of the resolution, give written notice in a manner the Registrar considers appropriate to every holder of a retail store authorization containing the following information: 1. The name of the reserve. 2. A statement that, as of the effective date determined in accordance with subsection (3), cannabis sold under a retail store authorization may not be delivered on the reserve. O. Reg. 84/22, s. 8. (3) The effective date specified in the notice shall be the 30th day after the day on which the notice is given. O. Reg. 84/22, s. 8. (4) A holder of a retail store authorization shall ensure that cannabis sold under the authorization is not delivered on a reserve that is the subject of a notice under subsection (2) on and after the effective date specified in the notice. O. Reg. 84/22, s. 8. (5) If the Registrar receives a copy of a resolution of the council of the band in respect of a reserve rescinding a request described in subsection (1), the Registrar shall, as soon as practicable, give written notice in a manner the Registrar considers appropriate to every holder of a retail store authorization containing the following information: 1. The name of the reserve. 2. The date on which the notice is given. 3. A statement that, as of the date on which the notice is given, subsection (4) ceases to apply with respect to the reserve. O. Reg. 84/22, s. 8. (6) Subsection (4) ceases to apply with respect to a reserve that is the subject of a notice under subsection (5) on the date on which the notice is given. O. Reg. 84/22, s. 8. (7) The council of the band shall give to the Registrar such information as the Registrar reasonably requires for the purposes of subsection (2) or (5). O. Reg. 84/22, s. 8. (8) The Registrar shall publish on the Commission’s website, (a) a list of reserves to which cannabis sold under a retail store authorization may not be delivered, in accordance with this section; and (b) for each reserve, (i) the date on which the applicable resolution was made, and (ii) the effective date specified in the notice given under subsection (2) for the reserve. O. Reg. 84/22, s. 8. Exemptions Application fees, cannabis retail store on reserve 24. (1) An applicant for a retail operator licence is exempt from the requirement in clause 3 (7) (a) of the Act to pay a fee in connection with the application if the applicant demonstrates to the Registrar that the applicant intends to operate a cannabis retail store located on a reserve. O. Reg. 540/21, s. 1. (2) An applicant for a retail store authorization is exempt from the requirement in clause 4 (10) (a) of the Act to pay a fee in connection with the application if the application is in respect of a cannabis retail store that would be located on a reserve. O. Reg. 540/21, s. 1. (3) An applicant for a retail manager licence is exempt from the requirement in clause 5 (6) (a) of the Act to pay a fee in connection with the application if the applicant demonstrates to the Registrar that the applicant intends to manage a cannabis retail store located on a reserve. O. Reg. 540/21, s. 1. (4) An applicant for the renewal of a retail operator licence, for the renewal of a retail store authorization or for the renewal of a retail manager licence is exempt from the requirements in clause 8 (3) (a) and subsection 8 (4) of the Act to pay a fee in connection with the application if the applicant demonstrates to the Registrar that the application is in respect of a cannabis retail store that is located on a reserve. O. Reg. 540/21, s. 1. (5) An applicant for the transfer of a retail store authorization is exempt from the requirement in paragraph 1 of subsection 16.1 (2) to pay a fee in connection with the application if the application is in respect of a cannabis retail store that is located on a reserve. O. Reg. 520/24, s. 2. Schedule 1 Cannabis Retail Seal Text alternative: Illustration of English cannabis retail seal consisting of “ONTARIO AUTHORIZED” in white capitalized text, above a white horizontal line, above an illustration of a white trillium, on a black background with a white border. This text alternative is provided for convenience only and does not form part of the official law. Text alternative: Illustration of French cannabis retail seal consisting of “DÉTAILLANT AUTORISÉ EN ONTARIO” in white capitalized text, above a white horizontal line, above an illustration of a white trillium, on a black background with a white border. This text alternative is provided for convenience only and does not form part of the official law.