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ontario regulation 238/19

made under the

Cannabis Licence Act, 2018

Made: June 19, 2019
Filed: July 3, 2019
Published on e-Laws: July 3, 2019
Printed in The Ontario Gazette: July 20, 2019

Amending O. Reg. 468/18

(GENERAL)

1. (1) Subsection 8.1 (2) of Ontario Regulation 468/18 is amended by striking out “25” and substituting “75”.

(2) Subsections 8.1 (3) and (4) of the Regulation are revoked and the following substituted:

(3) The issuance of retail store authorizations is subject to the following allocation rules:

1. A maximum of 18 retail store authorizations is allocated in respect of cannabis retail stores to be located in the Toronto Region.

2. A maximum of 12 retail store authorizations is allocated in respect of cannabis retail stores to be located in the GTA Region.

3. A maximum of 12 retail store authorizations is allocated in respect of cannabis retail stores to be located in the East Region.

4. A maximum of seven retail store authorizations is allocated in respect of cannabis retail stores to be located in the North Region, with a cannabis retail store to be located in each of the City of Kenora, the City of North Bay, the City of Sault Ste. Marie, the City of Thunder Bay and the City of Timmins.

5. A maximum of 18 retail store authorizations is allocated in respect of cannabis retail stores to be located in the West Region.

6. Despite paragraphs 1 to 5, a maximum of eight additional retail store authorizations is allocated in respect of cannabis retail stores to be located on a reserve, with no more than one cannabis retail store to be located on any one reserve.

(4) None of the retail store authorizations that may be issued in accordance with subsection (3) may be allocated to,

(a) the holder of a retail store authorization or a person whose affiliate holds a retail store authorization; or

(b) a licensed producer or affiliate of a licensed producer.

2. Sections 8.2 and 8.3 of the Regulation are revoked and the following substituted:

Cannabis retail stores in a Region

8.2 (1) A person who wishes to obtain a retail store authorization in order to operate a cannabis retail store in a Region referred to in section 8.1 may not apply for a retail operator licence unless,

(a) the person submits to the Registrar, in the form and manner and within the time period specified by the Registrar, a written expression of interest which, for the purposes of that section, identifies the Region in which the person wishes to operate a cannabis retail store; and

(b) is notified by the Registrar that the person may apply for a retail operator licence.

(2) For the purposes of clause (1) (b), the Registrar shall choose a method for selecting which of the persons who have submitted an expression of interest may make an application that does not rely on the exercise of discretion on the part of the Registrar or any other person.

(3) A person may submit an expression of interest with respect to more than one Region, but may only be selected in relation to one of those expressions of interest.

(4) A person who submits to the Registrar more than one expression of interest with respect to the same Region may not apply for a retail operator licence.

(5) Two or more persons who are affiliates of one another may, subject to subsection (6), each submit expressions of interest, but of those affiliates only one may be selected in relation to one of those expressions of interest.

(6) If two or more persons who are affiliates of one another each submit to the Registrar an expression of interest with respect to the same Region, those affiliates may not apply for a retail operator licence.

(7) Subsections (3) to (6) apply despite the results of the method chosen under subsection (2).

(8) A person may not submit an expression of interest under subsection (1) with respect to a Region unless the person submits to the Registrar, in the form and manner and within the time period specified by the Registrar, an attestation and the supporting evidence specified by the Registrar indicating that, if the person were selected to apply for a retail operator licence, the person could demonstrate that he or she has met the requirements of clauses (9) (a) and (b) with respect to a proposed cannabis retail store in that Region.

(9) A person selected to apply for a retail operator licence under this section is not eligible to be issued the licence if, when applying for the licence, the person fails to demonstrate in a manner specified by the Registrar that,

(a) the person has secured a retail space that,

(i) is located in the Region identified in the expression of interest in relation to which the person was selected, and

(ii) could be used as a cannabis retail store under the Act; and

(b) the person has sufficient capital to open a cannabis retail store in that retail space.

(10) A person who is issued a retail operator licence following selection under this section is not eligible to be issued a retail store authorization in respect of a proposed cannabis retail store that is located other than in the Region identified in the expression of interest in relation to which the person was selected.

(11) This section, as it read immediately before July 3, 2019, continues to apply with respect to expressions of interest submitted before that day, and the Registrar shall continue to make selections from among those expressions of interest in accordance with this section as it read immediately before that day in order to meet and maintain the 25 retail store authorizations permitted under and allocated in accordance with section 8.1, as it read immediately before that day.

(12) If a person submitted an expression of interest before July 3, 2019,

(a) subsections (4) and (6) do not apply with respect to that expression of interest; and

(b) subsections (4) and (6), as they read immediately before July 3, 2019, do not apply with respect to any expression of interest submitted by the person after that day.

(13) This section does not apply with respect to a person who wishes to obtain a retail store authorization in order to operate a cannabis retail store on a reserve.

Cannabis retail stores on a reserve

8.3 (1) A person who wishes to obtain a retail store authorization in order to operate a cannabis retail store on a reserve is not eligible to be issued a retail operator licence if, when applying for the licence, the person fails to demonstrate in a manner specified by the Registrar that the council of the band has approved the location of the proposed store on the reserve by the passage of a resolution applicable to the proposed store.

(2) A person referred to in subsection (1) who is issued a retail operator licence is not eligible to be issued a retail store authorization in respect of a proposed cannabis retail store that is located other than,

(a) in the location approved by the resolution; or

(b) on a reserve if, before the retail store authorization is issued, the council of the band amends, rescinds or passes a resolution that does not permit a cannabis retail store to be located in that location.

(3)  Sections 8.1, 8.2 and this section are revoked on July 3, 2020.

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

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. 497/18

4. Subsection 3 (2) of Ontario Regulation 497/18 is amended by striking out “the first anniversary of the day this Regulation is filed” at the end and substituting “July 3, 2020”.

Commencement

5. This Regulation comes into force on the day it is filed.

 

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