O. Reg. 209/24: GENERAL

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ontario regulation 209/24

made under the

Cannabis Licence Act, 2018

Made: May 30, 2024
Filed: May 31, 2024
Published on e-Laws: May 31, 2024
Published in The Ontario Gazette: June 15, 2024

Amending O. Reg. 468/18

(GENERAL)

1. Section 6 of Ontario Regulation 468/18 is revoked and the following substituted:

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.

(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.

2. (1) Section 9 of the Regulation is amended by adding the following subsection:

(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.

(2) Section 9 of the Regulation is amended by adding the following subsection:

(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.

3. The Regulation is amended by adding the following section:

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.

(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.

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.

(3) The Registrar shall issue a proposal to refuse to transfer the authorization if the Registrar does not approve the transfer.

4. The Regulation is amended by adding the following section:

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.

(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.

(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).

Commencement

5. (1) Except as otherwise provided in this section, this Regulation comes into force on the day it is filed.

(2) Subsection 2 (1) comes into force on the later of July 1, 2024 and the day this Regulation is filed.

(3) Sections 1, 3 and 4 come into force on the later of January 1, 2025 and the day this Regulation is filed.

 

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