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Volume 61, No. 14

139/2018

The British Columbia Gazette,

Part II

July 17, 2018

B.C. Reg. 139/2018 , deposited July 5, 2018, under the CANNABIS CONTROL AND LICENSING ACT [sections 127, 131, 133, 134, 139 and 163]. Order in Council 355/2018, approved and ordered

July 5, 2018.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, effective July 9, 2018,

(

a) sections 1 and 3,

Part 2, Divisions 1 to 3 of

Part 4, sections 122 and 126,

Part 8 and Division 1 of

Part 9 of the Cannabis Control and Licensing Act , S.B.C. 2018, c. 29, are brought into force, and

(

b) the attached Cannabis Control and Licensing Interim Regulation is made.

— D. EBY, Attorney General ; K. CONROY, Presiding Member of the Executive Council .

CANNABIS CONTROL AND LICENSING INTERIM REGULATION

Contents

Part 1 –

Definitions

Definitions

Part 2 – Licences

Classes of licences

Retail store licence

Rules and requirements

Federal licensees

Restriction on number of retail store licences that may be held by applicants

Marketing licence

Prescribed class of licence –

section 26 (4) of Act

Consultation with local governments and Indigenous nations

Part 3 – Fit and Proper Determination by Security Manager

Definition of “security manager”

Appointment of security manager

Mandatory requirement for licence

Fit and proper determination powers

Collection of information

Part 4 – Service and Receipt of Documents

Ways to give or serve documents – general

Deemed receipt

Ways to give or serve documents on general manager

Part 5 – Fees

Fees

Schedule

Part 1 –

Definitions

Definitions

1 In this regulation:

“Act” means the Cannabis Control and Licensing Act ;

“original packaging” , in respect of cannabis, means the packaging of the cannabis when it was purchased

from the government;

“retail store” means all or part of a building or structure designated in a retail store licence

to be the establishment.

Part 2 – Licences

Classes of licences

2 The following classes of licences are established:

(

a) retail store licence;

(

b) marketing licence.

Retail store licence

3 A retail store licence authorizes the licensee to sell cannabis referred to in

section 15 (

c) of the Act.

Rules and requirements

(1) The following rules and requirements apply to a retail store licence:

(

a) an adult who purchases cannabis from the retail store licensee must pay for

and take personal possession of the cannabis at the retail store;

(

b) cannabis that is sold under the retail store licence must not be sold through

an online system;

(

c) cannabis must not be consumed in the retail store;

(

d) cannabis that is sold under the retail store licence must be sold in its original

packaging that has never been opened;

(

e) cannabis in its original packaging must not be opened by the retail store

licensee unless

(

i) the purpose of opening the packaging is to allow patrons to smell the cannabis,

or another purpose approved by the general manager, and

(ii) cannabis from the opened packaging is not sold;

(

f) only cannabis and cannabis accessories are permitted to be sold from a retail

store;

(

g) the only business that takes place in the retail store is the sale of cannabis

and cannabis accessories;

(

h) the retail store must not, in the general manager’s opinion, appear to be

associated, through signs, the use of trademarks or any other means, with another

business other than another retail store;

(

i) the retail store must be located in a permanent building or structure and

be enclosed by floor-to-ceiling walls that are not transparent;

(

j) the entrances and exits of the retail store must not be shared with any other

store or business;

(

k) it must not be possible for patrons entering or exiting the retail store to

pass through any other store or business other than

(

i) the common area of a mall, or

(ii) an area approved by the general manager under paragraph (l) (ii);

(

l) the entrances or exits of the retail store must not require patrons to pass

through an area that is enclosed to create exclusive access to the entrance or exit

of the retail store and one or more other stores or businesses, other than an area

that is

(

i) the common area of a mall or a hallway, or

(ii) subject to subsection (2), an area approved by the general manager.

(2) The general manager must not approve an area under subsection (1) (l) (ii)

if the area provides access to

(

a) a business in which the majority of the goods or services offered for sale

are primarily directed at minors, or

(

b) premises that are subject to a licence issued under the Liquor Control and Licensing Act that authorizes patrons to consume liquor, other than the consumption of samples,

in the service area under the licence.

Federal licensees

(1) In this section, “federal licensee” means a person who holds a producer’s licence issued under

section 35 of the Access

to Cannabis for Medical Purposes Regulations made under the Controlled Drugs and Substances Act (Canada).

(2) The general manager must not issue a retail store licence to or for

(

a) a person who has arranged, or agreed to arrange, with another person to sell

the cannabis of a federal licensee to the exclusion of the cannabis of another federal

licensee,

(

b) a federal licensee or the federal licensee’s agent, or

(

c) a person who is so associated with, connected with or financially interested

in a federal licensee or federal licensee’s agent that the person is, in the general

manager’s opinion, likely to promote the sale of cannabis of the federal licensee.

Restriction on number of retail store licences that may be held by applicants

(1) In this section:

“group of related persons” means

(

a) a corporation and any affiliate, within the meaning of

section 2 of the Business Corporations Act , of the corporation,

(

b) an individual and any corporation that is controlled, within the meaning of

section 2 of the Business Corporations Act , by the individual,

(

c) a person who is a partner in a general partnership and each of the partners,

(

d) a person who is a general partner in a limited partnership and each of the

general partners, or

(

e) a person who is a partner in a limited liability partnership and each of the

partners;

“significant shareholder” , in respect of a corporation, means a person who holds or beneficially owns, other

than by way of security only, 20% or more of any class of shares of the corporation

that confer the right to vote for the election of directors.

(2) The general manager must not issue a retail store licence to an applicant

if issuing the licence would result in the applicant or a group of related persons

holding more than 8 retail store licences.

(3) The general manager must not issue a retail store licence to an applicant

if issuing the licence would result in more than 8 retail store licences being held

by one or more corporations, referred to in paragraphs (

a) to (

c) as the licence-holding

corporations, in any of the following situations:

(

a) the same person is a significant shareholder in each of the licence-holding

corporations;

(

b) one person is a significant shareholder in one or more corporations that are

significant shareholders in each of the licence-holding corporations;

(

c) one person is a significant shareholder in one or more, but not all, of the

licence-holding corporations, and each of the remaining licence-holding corporations

has one or more significant shareholders that are corporations in which that person

is a significant shareholder.

(4) The general manager must not issue a retail store licence to an applicant

if issuing the licence would, in the general manager’s opinion, result in one person,

through an association, connection or financial interest,

(

a) likely having direct or indirect influence over licensees who hold more than 8

retail store licences,

(

b) likely being able to affect, directly or indirectly, the activities carried

out under more than 8 retail store licences, or

(

c) having the influence referred to in paragraph (

a) or the ability to affect

activities referred to in paragraph (

b) with respect to more than 8 retail store licences.

Marketing licence

7 A marketing licence authorizes a licensee to

(

a) promote cannabis for the purpose of selling it,

(

b) solicit, receive and take orders for the sale or purchase of cannabis, and

(

c) act as an agent for the sale or purchase of cannabis.

Prescribed class of licence –

section 26 (4) of Act

8 The class of licence prescribed for the purposes of

section 26 (4) of the Act is

the marketing licence.

Consultation with local governments and Indigenous nations

(1) For the purposes of

section 33 (1) of the Act with respect to issuing licences,

the prescribed class of licence is the retail store licence.

(2) The prescribed criterion for the purposes of

section 33 (3) of the Act is

the location of a proposed retail store.

(3) The prescribed circumstances for the purposes of

section 33 (3) of the Act

are that the issuance of the licence may affect nearby residents.

(4) For the purposes of

section 33 (4) of the Act, comments and recommendation

must be given in accordance with the following requirements:

(

a) the comments and recommendations must be in writing;

(

b) the comments must include the views of the local government or Indigenous

nation on the general impact on the community;

(

c) if the local government or Indigenous nation has gathered the views of residents

under

section 33 (3) of the Act, the comments must include

(

i) the views of the residents, and

(ii) a description of the method used to gather those views;

(

d) the recommendations must include whether the application should be approved

or rejected;

(

e) the recommendations must include the reasons on which they are based.

Part 3 – Fit and Proper Determination by Security Manager

Definition of “security manager”

10 In this Part, “security manager” means the security manager appointed under

section 11.

Appointment of security manager

11 The minister must appoint, under the Public Service Act , a security manager for the purposes of this Part.

Mandatory requirement for licence

12 In addition to the requirements set out in

section 26 (2) of the Act, the general

manager must not issue a licence if, in the security manager’s opinion, the applicant

for a licence is not fit and proper as determined in accordance with

section 13.

Fit and proper determination powers

(1) In this section:

“applicant” means an applicant for a licence;

“associate” , in respect of an applicant, means a person that, in the security manager’s opinion,

(

a) may have direct or indirect influence over the applicant, or

(

b) may be able to affect, directly or indirectly, the activities carried out

under the licence applied for.

(2) In determining whether an applicant is fit and proper, the security manager

may take into account

(

a) an associate of the applicant, and

(

b) a person who has a connection to an associate of the applicant.

(3) In determining whether an applicant is fit and proper, the security manager

must conduct background investigations and the checks set out in subsection (4) that

the security manager considers necessary in respect of

(

a) the applicant,

(

b) an associate of the applicant that the security manager considers relevant,

and

(

c) a person that the security manager considers relevant that has a connection

to the associate.

(4) The following are the checks for the purposes of subsection (3):

(

a) a criminal record check or fingerprint-based criminal record verification

by searching the Canadian Police Information Centre database;

(

b) a police information check;

(

c) a check of intelligence databases maintained by law enforcement agencies;

(

d) a check of records in the justice information system of the Ministry of Attorney

General;

(

e) a check of records in the corrections information system of the Ministry of

Public Safety and Solicitor General.

Collection of information

Section 10 of the Act applies to the security manager and references to the general

manager in that

section must be read as including the security manager.

Part 4 – Service and Receipt of Documents

Ways to give or serve documents – general

(1) For the purposes of

section 122 (1) of the Act, a document that is required or

allowed under the Act to be given or served on a person, other than the general manager,

must be given or served in accordance with this section.

(2) The ways to give or serve a document on an individual are

(

a) by leaving the document with the individual,

(

b) by leaving the document at the individual’s residence with an adult who apparently

resides with the individual,

(

c) by sending the document by ordinary mail, registered mail or courier to the

address at which the individual resides or to a forwarding address provided by the

individual,

(

d) by leaving the document in a mailbox or mail slot for the address at which

the individual resides,

(

e) by attaching the document to a door or other conspicuous place at the address

at which the individual resides,

(

f) by sending the document by electronic mail to the electronic mail address

provided by the individual, or

(

g) by transmitting the document to a fax number provided by the individual.

(3) The ways to give or serve a document on a corporation are

(

a) by leaving the document with an officer or director of the corporation,

(

b) by sending the document by ordinary mail, registered mail or courier to the

registered office of the corporation,

(

c) by sending a copy of the document by electronic mail to the electronic mail

address provided by the corporation, or

(

d) by transmitting a copy of the document to a fax number provided by the corporation.

(4) The ways to give or serve a document on a partnership are

(

a) by leaving the document with a partner,

(

b) by sending the document by ordinary mail, registered mail or courier to the

business office of the partnership,

(

c) by sending a copy of the document by electronic mail to the electronic mail

address provided by the partnership, or

(

d) by transmitting a copy of the document to a fax number provided by the partnership.

(5) The ways to give or serve a document on an Indigenous nation are

(

a) by leaving the document with an elected official or administrative officer

of the Indigenous nation,

(

b) by sending the document by ordinary mail or registered mail to the mailing

address of the Indigenous nation or by courier to the administrative office of the

Indigenous nation,

(

c) by sending a copy of the document by electronic mail to the electronic mail

address provided by the Indigenous nation, or

(

d) by transmitting a copy of the document to a fax number provided by the Indigenous

nation.

Deemed receipt

16 For the purposes of

section 122 (2) of the Act, a document given or served in accordance

with

section 15 of this regulation is conclusively deemed to be received,

(

a) if the document is left with an individual, on the day it is left,

(

b) if the document is sent by ordinary mail, registered mail or courier, on the fifth

day after it is mailed or received by the courier,

(

c) if the document is left in a mailbox or mail slot, on the third day after

it is left,

(

d) if the document is attached to a door or other conspicuous place, on the third

day after it is attached,

(

e) if the document is sent by electronic mail, on the third day after it is sent,

and

(

f) if the document is transmitted to a fax number, on the third day after it

is transmitted.

Ways to give or serve documents on general manager

17 For the purposes of

section 122 (1) of the Act, a document that is required or allowed

under the Act to be given or served on the general manager must be given or served

in one of the following ways:

(

a) by leaving the document with the general manager;

(

b) by sending the document by ordinary mail, registered mail or courier to the

address of the general manager;

(

c) by sending the document by electronic mail to the electronic mail address

of the general manager;

(

d) by transmitting the document to a fax number of the general manager.

Part 5 – Fees

Fees

(1) The fees payable under the Act and this regulation are set out in the Schedule.

(2) All fees must be paid at the time that an application or request for anything referred to in the

Schedule is submitted.

Schedule

Fees

Item

Description

Fee ($)

Licence Application

Retail store

7 500

Marketing

First Year of Licence

Retail store

1 500

Licence Renewal

Retail store

1 500

Marketing

Late Renewal of Licence

If application for renewal of retail store licence is made after, but within 30 days of, expiry of licence

If application for renewal of retail store licence is made more than 30 days, but not more than one year, after expiry of licence

If application for renewal of marketing licence is made after, but not more than one year after, expiry of licence

Transfer of Licence

Transfer of licence

Amendment to Licence

Change of location of establishment designated in a retail licence

Structural alterations to an establishment

Change of name of establishment or licensee

Any other permanent amendment if that amendment does not require a recommendation

under

section 33 of the Act from a local government or Indigenous nation

Any other permanent amendment if that amendment requires a recommendation under

section 33 of the Act from a local government or Indigenous nation

Miscellaneous

Licensee providing notice of an addition or change of, or change of name of, director, officer, senior manager, receiver or executor

Licensee providing notice that

(

a) licensee has issued new shares to existing shareholders, or

(

b) existing shareholders have transferred shares to existing shareholders

Licensee providing notice that

(

a) licensee has issued new shares to persons who are not existing shareholders, or

(

b) existing shareholders have transferred shares to persons who are not existing shareholders

Duplicate copy of floor plan or other record from licence file

Creation of record on request

30 per hour

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