Third

Session, 48th General Assembly

Elizabeth II, 2018

BILL 20

AN ACT RESPECTING THE CONTROL AND SALE OF CANNABIS

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE TOM

OSBORNE

Minister of Finance

and President of Treasury Board

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would enact the Cannabis Control Act .

The Bill would set out the statutory

framework for cannabis in the province and in particular it would

create a licensing structure;

provide an inspection procedure;

set out restrictions on the

sale, purchase, consumption, transportation, advertising and promotion of

cannabis; and

set out offences and penalties.

A BILL

AN ACT RESPECTING THE

CONTROL AND SALE

OF CANNABIS

Analysis

Short title

Definitions

Labrador Inuit rights

Application

Expenses, debts and liabilities of

corporation

All money to be paid to corporation

Purchase and cancellation by corporation

Exchange and sharing of information

PART

AUTHORIZATIONS AND LICENCES

Authorization

Circumstances under which corporation

shall not issue authorization

Request for authorization

Issuance or denial of authorization

List of producers

Revocation of authorizations

Licence

Circumstances under which board shall

not issue licence

Application for licence

Place or premises being constructed or

renovated

Notice of intention to apply for licence

Objections to licence application

Hearings re: applications for licence

Issuance or denial of licence

Term and effective date of licence

Fee

Licence shall be posted

Annual fee and reporting

Transfer of licence

Request for permission to transfer

Granting or denial of transfer

Suspension by inspector

Review of temporary suspension

Suspension or revocation of licence

Objections to suspension or revocation

Hearings re: suspension and revocation

Failure of retailer to appear

Decisions and orders

Suspensions generally

Temporary licences

Appeal of decision or order of board

Limitation period

Exception to disclosure in written

reasons

Investigations

PART

INSPECTIONS

Definitions

Examination of books

Board may appoint inspectors

Inspection to determine compliance

Suspected contravention - search and

seizure

Seizure of contraband

Disposal or return of evidence

Third party claims

Arrest

Obstruction

Search warrants

Telewarrants

Affidavit as proof

Evidence in proceeding

Delivery considered a sale

Places of concealment

Form of summons

Proof of cannabis

PART

III

POSSESSION, SALE ,

PURCHASE, CONSUMPTION, TRANSPORTATION, ADVERTISING AND PROMOTION OF CANNABIS

Definition

General prohibitions on possession

General prohibitions on sales and

purchases

Prohibitions on person under 19 years of

age

Sales by producer

Return and gross profit

Purchase and sale by retailer

Storage by retailer

Days and hours of sale

Online sales

Cannabis that may be sold or otherwise

supplied

Restrictions on cannabis store

Restriction on place of consumption

No consumption where cannabis purchased

Cannabis in vehicle or boat

Bringing cannabis into province

Proof of age

No defence

Intoxicated in public place prohibited

Seizure from person under 19 years of

age

Advertising and promotion

PART

LIABILITY AND OFFENCES

Decision, etc. final

No liability

Appeal

Relying on exemption or non-application

Possession of less than 50 grams

Possession of less than 7 cannabis

plants

Offence re: purchase or possession by

person under 19 years of age

Offence re: returns and gross profit

Offence re: certain sales

Offence re: place of consumption

Offence re: cannabis in vehicle

Offence re: purchase, possession, etc.

contrary to Act

Offence re: search

General offence

Offence re: terms, conditions, orders

Offence by incorporated company

Limitation

PART

REGULATIONS, TRANSITIONAL AND COMMENCEMENT

Lieutenant-Governor in Council

regulations

Board regulations

Fees and forms

Statutory review

Transitional

SNL2011 cC-37.00001 Amdt.

SNL2010 cC-37.02 Amdt.

RSNL1990 cS-6 Amdt.

SNL2010 cT-0.02 Amdt.

SNL1993 cT-4.1 Amdt.

NLR 26/01 Amdt.

CNLR 1022/96 Amdt.

NLR 78/99 Amdt.

CNLR 1115/96 Amdt.

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

Short title

1. This

Act may be cited as the Cannabis Control

Act.

Definitions

2. In

this Act

(a) "analyst" includes an analyst

designated under the federal Act;

(b) "authorization" means an

authorization issued under

section 9;

(c) "board" means the board of directors

of the corporation appointed under

section 5 of the Liquor Corporation Act ;

(d) "cannabis" means cannabis as defined

in the federal Act;

(e) "cannabis accessory" means cannabis

accessory as defined in the federal Act;

(f) "cannabis plant" means a plant that

belongs to the genus Cannabis;

(g) "cannabis retail location" means a

place or premises that is not a cannabis store but in or at which the sale of

cannabis is part of the business;

(h) "cannabis store" means a place or premises

in or at which the primary business is the sale of cannabis and entry into that

place or premises is restricted;

(i) "cannabis tracking system" means the

cannabis tracking system established and maintained under the federal Act;

(j) "contraband" means cannabis that is

not purchased, possessed, acquired, sold, stored or transported in accordance

with this Act and the regulations;

(k) "Coordinated Cannabis Taxation

Agreement" means an agreement entered into under

Part III.2 of the Federal-Provincial Fiscal Arrangements Act

( Canada )

between

(

i) the Minister of Finance on behalf of the Government

of Canada, and

(ii) the Minister of Finance and the Minister responsible

for the Intergovernmental and Indigenous Affairs Secretariat on behalf of the

government of the province;

(l) "corporation" means the Newfoundland and

Labrador Liquor Corporation continued under

section 3 of the Liquor Corporation Act ;

(m) "employee" includes a person

employed under a contract of employment and an agent;

(n) "federal Act" means the Cannabis Act ( Canada ) and the regulations made

under that Act;

(o) "federal equivalent amount" means

the amount determined to be an equivalent amount under the federal Act;

(p) "gross profit" means the amount set

by the corporation in an authorization which is the amount which would have accrued

to the corporation if the cannabis had been sold by the corporation;

(q) "inspector" means an inspector

appointed under this Act;

(r) "licence" means, unless otherwise

stated, a licence issued under this Act;

(s) "medical cannabis user" means a

person who is authorized to possess cannabis for the person's own medical

purposes in accordance with the federal Act;

(t) "minister" means the minister

appointed under the Executive Council Act

to administer this Act;

(u) "period of inactivity" means a

period of time prescribed by the regulations during which cannabis has not been

purchased or sold;

(v) "police officer" means a member of

the Royal Newfoundland Constabulary or the Royal Canadian Mounted Police;

(w) "producer" means a person who holds

a valid licence issued under the federal Act to produce cannabis for commercial

purposes and holds a valid authorization;

(x) "public place" includes any place to

which the public has access as of right or by invitation, whether express or implied

or whether a fee is charged;

(y) "retailer" means a person who holds

a valid licence to sell cannabis in or at a cannabis store or a cannabis retail

location in the province and to possess cannabis for the purpose of selling it;

(z) "return" means a return required under

section 68;

(aa) "sale" or "sell" includes

(

i) to solicit or receive an order for,

(ii) to keep or expose for sale,

(iii) to exchange or otherwise to deliver for value

in another way than purely gratuitously, and

(iv) to keep with the intent to sell; and

(bb) "vehicle" includes a vehicle as

defined in the Highway Traffic Act .

Labrador Inuit

rights

3. This

Act and the regulations shall be read and applied in conjunction with the Labrador Inuit Land Claims Agreement Act

and, where a provision of this Act or regulations made under this Act is inconsistent

or conflicts with a provision, term or condition of the Labrador Inuit Land Claims Agreement Act , the provision, term or

condition of the Labrador Inuit Land

Claims Agreement Act shall have precedence over the provision of this Act

or the regulations.

Application

(1) This

Act, unless otherwise stated, does not apply to

(

a) the distribution, possession, purchase, sale or

consumption of cannabis for medical purposes in accordance with the federal Act;

(

b) industrial hemp as defined in the federal Act;

(

c) a drug under the Food and Drugs Act ( Canada )

that contains cannabis.

(2) Nothing in this Act prevents the distribution,

possession or consumption of cannabis for research or educational purposes except

as prescribed by the regulations.

(3) Nothing in this Act prevents a person who

holds a licence under the federal Act from participating in an activity

permitted under that licence.

(4) Nothing in this Act prevents

(

a) the sale of cannabis by a producer to the corporation;

(

b) the importation, distribution, sale, supply,

purchase, possession, storage, transportation and delivery of cannabis by the

corporation for the purposes of and in accordance with this Act and the regulations.

Expenses, debts

and liabilities of corporation

5. All

expenses, debts and liabilities incurred by the corporation in connection with

the administration of this Act or imposed on the corporation under this Act

shall be paid by the corporation.

All money to be

paid to corporation

6. All

money received which is due to the corporation in the administration of this

Act shall be paid to the corporation.

Purchase and cancellation

by corporation

7. An

order to purchase cannabis or the cancellation of an order to purchase cannabis

by the corporation is not valid or binding unless it is ordered or cancelled by

a person authorized by the corporation.

Exchange and

sharing of information

(1) The

corporation may exchange information obtained by the board or the corporation in

(2) The corporation may enter into an agreement

with the Royal Newfoundland Constabulary, the Royal Canadian Mounted Police or

other policing agency respecting the exchange and sharing of information

necessary for the administration and enforcement of this Act.

PART I

AUTHORIZATIONS AND LICENCES

Authorization

(1) The

corporation may issue to a person an authorization to sell or otherwise supply

cannabis to a retailer in the province.

(2) An authorization issued by the corporation shall

be in writing and indicate the classes, varieties, types and brands of cannabis

that the person may sell or otherwise supply to retailers in the province and

for each class, variety, type and brand, the authorization shall indicate

(

a) the size or quantity of each unit, where the

cannabis is required to be sold or otherwise supplied in units;

(

b) the size of each container in which the cannabis

is required to be sold or otherwise supplied and the mass or volume of cannabis

permitted in each container, where the cannabis is required to be sold or

otherwise supplied in containers;

(

c) the price at which each unit and container

shall be sold or otherwise supplied to a retailer; and

(

d) the gross profit for each unit and container

that shall be paid under

section 68.

(3) The corporation may limit the number of

authorizations.

of authorizations

10. An

corporation, this Act and the regulations.

Circumstances

under which corporation shall not issue authorization

11. The

corporation shall not issue an authorization to a person who

(

a) does not hold a valid licence issued under the

federal Act to produce cannabis for commercial purposes; or

(

b) provides false particulars in his or her request

for an authorization.

Request for

authorization

12. A

request for an authorization shall be made to the corporation in writing and in

the form and manner set by the corporation.

Issuance or

denial of authorization

(1) The

corporation may issue or refuse to issue an authorization.

(2) Where the person requesting the authorization

requests, the corporation shall provide written reasons for refusing to issue

an authorization.

List of producers

(1) The

corporation shall keep an up-to-date list of

(

a) producers; and

(

b) the classes, varieties, types and brands of

cannabis that each producer may sell or otherwise supply to retailers in the

province and for each class, variety, type and brand,

(

i) the size or quantity of each unit, where the

cannabis is required to be sold or otherwise supplied in units,

(ii) the size of each container in which the

cannabis is required to be sold or otherwise supplied and the mass or volume of

cannabis permitted in each container where the cannabis is required to be sold

or otherwise supplied in containers, and

(iii) the price at which each unit and container

shall be sold or otherwise supplied by each producer and retailer.

(2) The list referred to in subsection (1) shall

be accessible to retailers in the province at all times.

Revocation of

authorizations

(1) The

corporation may revoke an authorization in writing where

(

a) the person's licence under the federal Act is

suspended, revoked or cancelled;

(

b) there has been a period of inactivity;

(

c) the person fails to pay the gross profit

required under

section 68 or a fee required under this Act or the regulations;

(

d) the person fails to comply with or otherwise

contravenes this Act, the regulations or a term or condition of his, her or its

authorization; or

(

e) the corporation has reasonable cause to revoke

the authorization.

(2) Where the person issued an authorization

requests, the corporation shall provide written reasons for revoking the authorization.

Licence

(1) The

board may issue to a person a licence to sell cannabis and to possess cannabis

for the purposes of selling it.

(2) The board, with the approval of the Lieutenant-Governor

in Council, may prescribe by regulation different classes of licences.

(3) The board may limit the number of licences issued

under this

section and the number of licences for each class of licence.

of licences

17. A

Act and the regulations.

Circumstances

under which board shall not issue licence

18. The

board shall not issue a licence to an applicant where

(

a) the applicant has not passed any

pre-application processes set by the board;

(

b) the applicant is an individual or a group of

individuals and that individual or any member of the group of individuals is under

19 years of age;

(

c) the applicant is an incorporated company or a partnership

authorized to carry on its business in the province and whose officer or agent

in charge of the place or premises to which the licence will apply is under 19

years of age;

(

d) the board reasonably believes that

(

i) the applicant is applying on behalf of a beneficial

owner, and

(ii) the beneficial owner does not satisfy the requirements

of this section;

(

e) the applicant provides false particulars in

his, her or its application;

(

f) the management, equipment, accommodations or

facilities of the place or premises to which the licence will apply

(

i) do not conform to the licensing standards and

operational requirements as determined by the corporation,

(ii) will cause inconvenience to a place of worship,

school or hospital,

(iii) do not conform with the laws of Canada ,

the province or the municipality in which the place or premises is located, or

(iv) have not been approved in writing by an inspector;

(

g) the board reasonably believes that the

applicant is not a fit and proper person to keep and operate a place or premises

where cannabis is sold or that the applicant will not carry on business in

accordance with the law and with integrity and honesty;

(

h) the applicant is carrying on activities that do

not, or will not, comply with or are, or will be, in contravention of this Act

or the regulations if the applicant is issued a licence;

(

i) it would not be in the public interest having

regard to the needs and wishes of the public in the community in which the place

or premises of the cannabis store or cannabis retail location will be located; or

(

j) the applicant and where the applicant is an

incorporated company, the officer or agent in charge of the place or premises

to which the licence will apply, has been convicted within the 5 years before the

application for a violation of

(

i) the Excise Tax Act ( Canada ) or the Customs Act ( Canada )

with respect to offences relating to cannabis,

(ii) the Controlled Drugs and Substances Act

( Canada )

with respect to trafficking, or possession for the purpose of trafficking, in a

controlled substance within the meaning of that Act,

(iii) the Food and Drugs Act ( Canada )

with respect to trafficking, or possession for the purpose of trafficking, in a

controlled or restricted drug,

(iv) the federal Act, or

(

v) the Criminal Code ( Canada ) for an offence punishable

by imprisonment of one year or more.

Application for

licence

(1) An

application for a licence shall be made to the board in writing and in the form

and manner set by the board.

(2) An application for a licence shall include

(

a) a description of the place or premises to

which the licence will apply;

(

b) a copy of the notice required under subsection

21(1);

(

c) a certificate of conduct from the Royal

Newfoundland Constabulary or a certified criminal records check from the Royal

Canadian Mounted Police for the applicant and for the officer or agent in

charge of the place or premises to which the licence will apply where the

applicant is an incorporated company;

(

d) evidence that the place or premises to which

the licence will apply has been approved in writing by an inspector; and

(

e) any other information prescribed by the regulations.

(3) Where the board requires further information

in order to assess the application, the board may

(

a) require the applicant, a director, officer or

agent of an applicant who is an incorporated company, the person in charge of

the place or premises to which the licence will apply or any other person to

appear in person; or

(

b) request further information from the

applicant.

Place or premises

being constructed or renovated

(1) Where

an applicant is constructing or renovating or plans to construct or renovate a place

or premises to which the licence will apply, the applicant may apply for a

licence for that place or premises before it is constructed or renovated.

(2) An application for a place or premises that is

being or will be constructed or renovated shall include the plans and

specifications for the place or premises that show the location and design of

the place or premises that are satisfactory to the board.

(3) A licence for a place or premises that is

being or will be constructed or renovated shall not be issued until

(

a) the construction or renovation is completed in

accordance with the plans and specifications included in the application; and

(

b) the place or premises has been approved by an inspector.

Notice of

intention to apply for licence

(1) An

applicant for a licence shall give notice of his, her or its intention to apply

for a licence by publishing a notice before filing an application with the corporation.

(2) A notice referred to in subsection (1) shall

(

a) include the information prescribed by the regulations

with respect to how to file an objection to the application, including the

deadline for filing an objection;

(

b) be published in the manner and for the time

period prescribed by the regulations; and

(

c) be in the form prescribed by the regulations.

Objections to licence

application

22. A

person may object to an application for a licence by filing an objection with the

board in writing before the deadline for filing an objection and in the manner

prescribed by the regulations.

Hearings re: applications

for licence

(1) Where

an objection is filed under

section 22, the board may hold a hearing to hear

the submissions of the applicant and the person who filed the objection.

(2) A hearing under this

section shall be held

within 60 days of the deadline for filing an objection.

(3) The board shall give notice of the time and

place of the hearing of an objection at least 7 clear days before the hearing

(

a) to the public in the manner prescribed by the

regulations; and

(

b) to the applicant for the licence and a person

who filed an objection under

section 22 by

(

i) registered mail at his, her or its last known

address, or

(ii) personal service.

(4) The board may set its own procedure for

hearings under this section.

(5) Notwithstanding subsection (4), a hearing held

under this

section shall

be open to the public.

(6) A member of the board holding a hearing under this

section has the powers conferred on a commission by sections 9 and 10 of the Public Inquiries Act, 2006, and for the

purposes of this section, the corporation is considered to be an

"investigating body" under the

Public Investigations Evidence Act.

(7) The board may delegate its authority to hold

hearings under this

section to a tribunal of 3 members of the board.

(8) A decision of a tribunal under subsection

(7) shall be considered to be a decision of the board.

Issuance or

denial of licence

(1) The

board may issue or refuse to issue a licence to an applicant.

(2) Where the applicant requests, the board shall

provide written reasons for refusing to issue a licence.

Term and effective

date of licence

(1) The

board shall set the term of the licence when the licence is issued.

(2) The board may set different terms for licences

and different terms for classes of licences.

(3) Notwithstanding subsections (1) and (2), the

term of a licence shall not exceed 5 years.

(4) A licence becomes effective on the date stated

in it as the effective date or, where no effective date is stated, on the date

the licence is issued.

Fee

(1) Where

an application for a licence is approved by the board, the applicant for the

licence shall pay the fees set by the minister before the licence is issued.

(2) Different fees may be set by the minister for

different classes of licences.

Licence shall be

posted

27. A

retailer shall post his, her or its licence in a prominent position in public

view on the place or premises to which it applies while the licence is valid.

Annual fee and

reporting

28. A

retailer shall, during the term of his, her or its licence,

(

a) keep appropriate records of his, her or its

sales and activities in the province;

(

b) comply with requirements of the cannabis

tracking system and any order relating to the cannabis tracking system in accordance

with the federal Act;

(

c) take adequate measures to reduce the risk of the

cannabis that he, she or it possesses for the purposes of selling it being

diverted to an illicit market or activity;

(

d) pay to the corporation an annual fee set by

the corporation; and

(

e) provide to the corporation reports and other documents

in the form and manner set by the corporation.

Transfer of

licence

(1) The

board may grant permission to a retailer to transfer his, her or its licence to

another person.

(2) Sections 17 to 26 apply with the necessary

changes to a request for permission to transfer a licence.

Request for permission

to transfer

30. A

request for permission to transfer a licence shall be made by a retailer to the

board in writing and in the form and manner set by the board.

Granting or

denial of transfer

(1) The

board may grant or refuse permission to transfer a licence.

(2) Where the board grants permission to transfer

a licence,

(

a) the retailer shall surrender his, her or its licence

to the board; and

(

b) the board shall issue a new licence.

(3) The term of a new licence issued under this

section

shall expire on the same date that the term of the licence surrendered under paragraph

(2)(

a) would have expired.

(4) The transfer of a licence is not completed

until a new licence is issued.

(5) Where the person to whom the licence is

proposed to be transferred requests, the board shall provide written reasons

for refusing permission to transfer the licence.

Suspension by

inspector

(1) Where

an inspector believes on reasonable grounds that a cannabis store or cannabis

retail location is not being operated in accordance with this Act, the regulations

or a term or condition of the licence, the inspector may suspend a licence by

issuing a temporary suspension.

on a temporary suspension.

(3) An inspector shall terminate a temporary

suspension.

(4) A temporary suspension shall not exceed 45

days.

Review of temporary

suspension

(1) Where

an inspector suspends a licence under

section 32, the board shall review the temporary

suspension within 2 business days of the day it was issued.

(2) Where the board approves the temporary

suspension within 2 business days, the licence continues to be suspended until

a hearing is held under

section 36.

(3) Where the board does not approve the temporary

suspension within 2 business days, the suspension is terminated.

Suspension or

revocation of licence

(1) The

board may suspend or revoke a licence where

(

a) the retailer persistently fails to

(

i) carry out or comply with an order of the board

or the corporation or an order made under any Act or regulations, or

(ii) comply with this Act, the regulations or a term

or condition of his, her or its licence;

(

b) the retailer fails to maintain the cannabis

store or cannabis retail location in accordance with this Act, the regulations or

a term or condition of his, her or its licence;

(

c) there has been a period of inactivity;

(

d) any circumstances exist that would prevent the

issuance of a licence under

section 18 or another provision of this Act;

(

e) the retailer is bankrupt or a creditor or a

trustee in bankruptcy enters into possession of the cannabis store or cannabis

retail location;

(

f) the board reasonably believes that the cannabis

store or cannabis retail location is not being operated in accordance with this

Act, the regulations or a term or condition of the licence; or

(

g) the board has reasonable cause to suspend or

revoke the licence.

(2) Where the board proposes to suspend or revoke

a licence, it shall

(

a) advise the retailer in writing that the board

proposes to suspend or revoke his, her or its licence; and

(

b) hold a hearing under

section 36 before it

suspends or revokes the licence.

Objections to suspension

or revocation

35. A

person may object to the suspension or revocation of a licence in writing to

the board.

Hearings re: suspension

and revocation

(1) Where

an inspector issues a temporary suspension that has been approved by the board

under

section 33 or the board proposes to suspend or revoke a licence under

section

34, the board shall hold a hearing.

(2) A hearing under this

section shall be held

within 30 days of

(

a) the day the inspector issued a temporary

suspension; or

(

b) the day the board advised the retailer that it

proposes to suspend or revoke the retailer's licence.

(3) The board shall give notice of the time and

place of the hearing to the retailer and any person who filed an objection to

the suspension or revocation of the licence at least 7 clear days before the hearing

(

a) registered mail at his, her or its last known

address; or

(

b) personal service.

(4) The board may set its own procedure for

hearings under this section.

(5) Notwithstanding subsection (4), a hearing held

under this

section shall be open to the public.

(6) Notwithstanding subsection (4), in a hearing

held under this

section the board

(

a) shall hear the submissions of the retailer;

and

(

b) may hear the submissions of a person who filed

an objection to the suspension or revocation of the licence.

(7) A member of the board holding a hearing under

this

section has the powers conferred on a commission by sections 9 and 10 of

the Public Inquiries Act, 2006, and

for the purposes of this section, the corporation is considered to be an

"investigating body" under the

Public Investigations Evidence Act.

(8) The board may delegate its authority to hold

hearings under this

section to a tribunal of 3 members of the board.

(9) A decision or order of a tribunal under subsection

(8) shall be considered to be a decision or order of the board.

Failure of

retailer to appear

37. Where

the retailer fails to appear at a hearing under

section 36 and

(

a) it has not been established by evidence given before

the board that the retailer received actual notice of the hearing, the board

shall adjourn the hearing and serve the retailer with a copy of the notice in

the manner prescribed in

section 14 of the

Provincial Offences Act for the service of summonses; or

(

b) it has been established by evidence given before

the board that the retailer received actual notice of the hearing or has been

served with a copy of the notice in the manner prescribed in

section 14 of the Provincial Offences Act for the service

of summonses, the board may hold the hearing and dispose of the matter in the

absence of the retailer.

Decisions and

orders

(1) The

board shall provide a decision, including reasons for the decision, to the

retailer and any person who filed an objection under

section 35 in writing

within 10 business days of completing the hearing.

(2) A decision under subsection (1) shall order

one or more of the following:

(

a) terminate a temporary suspension issued by an

inspector where the hearing was held under subsection 33(2);

(

b) withdraw its proposal to suspend or revoke the

licence;

(

c) suspend the licence; or

(

d) revoke the licence.

the suspension of a licence.

(4) The board shall terminate a suspension where

Suspensions generally

(1) A

licence suspended by an inspector or the board shall be subject to the terms

and conditions imposed by the inspector or the board, this Act and the regulations.

(2) A retailer shall not sell, supply, purchase or

transport cannabis while his, her or its licence is suspended.

(3) Where a licence is suspended or revoked, the

corporation shall direct that

(

a) the cannabis shall remain in or at the

cannabis store or cannabis retail location and the requirements for the storage

of that cannabis; or

(

b) notwithstanding subsection (2), the cannabis

shall be removed from the cannabis store or cannabis retail location and the

requirements for the removal and storage of that cannabis.

(4) A retailer shall comply with the directions of

the corporation issued under subsection (3).

Temporary

licences

40. Notwithstanding

anything in this Act, where a licence is suspended or revoked the board may

issue a temporary licence to

(

a) a creditor in possession; or

(

b) a trustee in bankruptcy

for not more than one year in order that

he, she or it may dispose of the cannabis store or cannabis retail location.

Appeal of

decision or order of board

(1) A

person may appeal a decision or order of the board under

section 38 by filing

an appeal to a judge of the Supreme Court within 30 days of the day the board

made the decision or order.

(2) Where a person files an appeal under subsection

(1), he, she or it shall serve on a member of the board a written notice of

that appeal at least 10 days before the hearing of the appeal.

(3) The Rules

of the Supreme Court, 1986 relating to appeals apply to an appeal under this

section.

(4) An appeal under this

section shall be held in

a

summary manner.

(5) An appeal may be taken from the decision or

order of the judge to the Court of Appeal upon a point of law.

Limitation period

42. An

action or proceeding with respect to the suspension or revocation of a licence

made under

section 38 shall be started within 2 years of the date of the suspension

or revocation.

Exception to

disclosure in written reasons

43. Notwithstanding

subsections 13(2), 15(2), 24(2), 31(5) and 38(1), the board may refuse to

disclose information in its written reasons where the disclosure could

reasonably be expected to result in a circumstance described in subsection 31(1)

of the Access to Information and Protection

of Privacy Act, 2015 .

Investigations

(1) The

corporation may make those investigations that it considers expedient for the

administration of this Act and the regulations into or respecting

(

a) the affairs or conduct of a person applying

for or holding a licence or of his, her or its employees, directors or officers;

(

b) the affairs or conduct of a person to whom a

licence is proposed to be transferred or of his, her or its employees, directors

or officers;

(

c) an existing licence issued, held or applied

for under this Act or the regulations or any place or premises in respect of

which a licence is issued; and

(

d) a matter concerning the sale, supply,

purchase, possession or transportation of cannabis.

(2) The corporation may exercise the powers

referred to in

Part II in the course of an investigation under this section.

PART II

inspections

Definitions

45. In

this Part,

(a) "books and records" includes documents

that are required or are part of the cannabis tracking system, recordings made

by a video, audio or other electronic device, manifests, financial books, books

of account, financial records, balance sheets, profit and loss statements, purchase

invoices, sales invoices, sales tapes, other documents of original sale or

purchase, statements of account, bank statements or statements of other

financial institutions, bank agreements, loan agreements, partnership

agreements, articles of incorporation, share registries, minute books, sales

journals, purchase journals and other journals, letters, memoranda, notes,

draft agreements, charts of account, general ledgers, all subsidiary ledgers,

payroll journals and summaries, income tax documents, returns, financial

statements, auditors' opinions and notes that are part of the financial

statements, internal audit reports, executive and management committee minutes,

any other recorded information in original or copied form and any other thing

containing information including information in machine readable or electronic

format;

(b) "premises" includes a ship, boat, vessel,

trailer, building and outbuilding; and

(c) "producer" includes a person who

holds a valid licence issued under the federal Act to produce cannabis for

commercial purposes but does not have a valid authorization.

Examination of

books

(1) The

corporation may examine the books and records of a producer or retailer as

determined by the corporation.

(2) A producer or retailer who refuses to allow an

examination referred to in subsection (1) in accordance with this Act and the regulations

is guilty of an offence.

Board may appoint

inspectors

(1) The

board may appoint inspectors or classes of inspectors for the purposes of this

Act and the regulations.

(2) An inspector appointed under subsection

(1) has, for the purposes of enforcing this Act and the regulations, the powers of

a member of the Royal Newfoundland Constabulary.

Inspection to

determine compliance

(1) An

inspector or police officer may, at all reasonable times, for a purpose related

to the administration or enforcement of this Act and the regulations, inspect

or examine the place, premises, processes, books and records of a producer,

retailer or other person that the inspector or police officer may consider

relevant for the purpose of determining compliance with this Act and the regulations,

and the inspector or police officer may, without a warrant,

(

a) enter any place or premises where

(

i) a business is carried on,

(ii) any cannabis, property, books or records with

respect to the sale, supply, purchase, possession, storage or transportation of

cannabis are or may be kept, or

(iii) anything is or is suspected by the inspector or

police officer of being done or stored in connection with the sale, supply,

purchase, possession, storage or transportation of cannabis;

(

b) make copies, extracts, photographs or videos

the inspector or police officer considers necessary;

(

c) inspect, audit or examine books and records;

(

d) ascertain the quantities of cannabis purchased,

on hand, sold or used by that person;

(

e) require the owner or person in charge of the place

or premises to

(

i) give the inspector or police officer all

reasonable assistance,

(ii) produce for inspection the books and records

as requested by the inspector or police officer,

(iii) answer all proper questions relating to the

administration or enforcement of this Act, and

(iv) make available the means to generate and manipulate

books and records that are in machine readable or electronic form and any other

means or information necessary for the inspector or police officer to assess

the books and records,

and, for that purpose, require the owner or

person in charge to attend at the place or premises with the inspector or

police officer; and

(

f) do those other things the inspector or police

officer may consider necessary to determine compliance with this Act and the regulations.

(2) An inspector or police officer acting under subsection

(1) may on any occasion and for the purpose of analysis, take from a place or premises

(

a) samples of cannabis; or

(

b) where the inspector or police officer believes

that a liquid or substance contains cannabis, samples of that liquid or substance,

not exceeding an amount necessary for conducting

the analysis.

(3) All samples taken under this

section shall be

disposed of as the corporation directs.

(4) Where, on an inspection or examination under

subsection (1), an inspector or police officer discovers that a producer, retailer

or other person is in possession of cannabis, and the inspector or police

officer has reasonable grounds to believe that the possession is contrary to

this Act and the regulations, the inspector or police officer may seize, take

away, detain, hold or dispose of the cannabis in accordance with this

section

and

section 51 .

(5) Notwithstanding subsection (1), an inspector or

police officer shall not enter a dwelling house without the consent of the occupant

except under the authority of a warrant issued under

section 49 or 56 .

Suspected contravention

- search and seizure

(1) For

the purposes of this section, "premises" includes a receptacle, container

and other thing.

(2) Where an inspector or police officer believes on

reasonable grounds that a person is failing or has failed to comply with or is

otherwise contravening or has contravened this Act or the regulations, the

inspector or police officer may, with a warrant issued under subsection (3),

enter a conveyance, place or premises in the province, and

(

a) search for contraband;

(

b) search and examine the contents of the conveyance,

place or premises and make those inquiries that the inspector or police officer

may consider necessary;

(

c) seize, take away, detain and hold anything

which on reasonable grounds is or appears to be contraband;

(

d) seize and take away books and records and

shall, upon the request of the owner of them, make copies of them and those

copies shall be returned to that owner as soon as is practicable; and

(

e) seize, take away, detain and hold a conveyance

or other thing in which contraband is located in or on a place or premises.

(3) A Provincial Court judge who is satisfied upon

oath or affirmation that there are reasonable grounds for believing there is in

or on a conveyance, place or premises anything that may provide evidence with

respect to a suspected offence under this Act or the regulations may issue a

warrant authorizing one or more inspectors or police officers to enter the

conveyance, place or premises in the province and to search for and seize

anything that will provide evidence with respect to a suspected offence under this

Act or the regulations, subject to the conditions that may be specified in the

warrant.

(4) The owner or person in charge of a conveyance,

place or premises referred to in this

section or a person there shall not

obstruct an inspector or police officer in the carrying out of his or her

duties under this

section as authorized by a warrant.

(5) Notwithstanding paragraph (2)(a), an inspector

or police officer may exercise the power of search referred to in that paragraph

without a warrant where the conditions for obtaining the warrant exist but by

reason of exigent circumstances it would not be practical to obtain the warrant.

(6) In this section, "exigent

circumstances" include circumstances in which the delay necessary to

obtain a warrant might reasonably result in danger to human life or safety or

the loss or destruction of evidence.

(7) Subsection (5) does not apply to a dwelling

house.

Seizure of contraband

50. Notwithstanding

section 49, where an inspector or police officer believes on reasonable grounds

that a person is in possession of contraband, he or she may, without a warrant,

stop and detain a conveyance in the province in which he or she has reasonable

grounds to believe that contraband is located and may examine the contents of

that conveyance, including cargo, books and records and other things that may

provide evidence that the conveyance is carrying contraband and may

(

a) seize, take away or hold the contraband;

(

b) seize, take away, detain or hold a conveyance,

receptacle or container in which contraband is located; and

(

c) seize or take away books and records and other

things and hold them until they are produced in a court proceeding.

Disposal or

return of evidence

(1) Where

contraband or a conveyance has been seized under subsection 48(4),

section 49 or

50 and a person from whom it was seized has been convicted of an offence under

section

95 in relation to that seizure, that contraband or conveyance shall, after the

time for appeal has expired, be disposed of at the time and in the manner

directed by the corporation.

(2) Where a conveyance or other thing has been

seized under subsection 48(4),

section 49 or 50 and the person from whom it is

seized has not been convicted of an offence under

section 95 in relation to

that seizure, that conveyance or other thing shall be returned to him, her or

it within 3 months of the disposition of the court proceedings unless further

proceedings by way of appeal have been commenced.

(3) Where cannabis was seized as contraband under

subsection 48(4),

section 49 or 50 and the person from whom it was seized is

not convicted of an offence under

section 95 in relation to that seizure and

he, she or it establishes to the satisfaction of the corporation that the

cannabis was obtained in accordance with this Act and the regulations and that

he, she or it otherwise complies with this Act and the regulations, that person

shall have that cannabis returned to him, her, or it or the corporation shall

pay to that person an amount equal to the value of the cannabis at the time of

the seizure, plus interest which shall be calculated in accordance with the

regulations.

(4) In the absence of a proceeding under this Act,

cannabis seized as contraband shall be forfeited to the corporation and shall

be disposed of as the corporation directs.

Third party

claims

(1) A

person, other than a person accused of an offence relating to a seizure under subsection

48(4),

section 49 or 50, who claims an interest in a conveyance or other thing

seized under those sections, as an owner, lienholder or holder of a like

interest may, within 30 days after that seizure, apply to a Provincial Court

judge for an order under subsection (2).

(2) Where, upon the hearing of an application, the

Provincial Court

judge is satisfied that the applicant

(

a) is innocent of complicity in the offence that

resulted in the seizure and of collusion in relation to that offence with the

person who may have committed the offence; and

(

b) exercised reasonable care in respect of the

person permitted to obtain possession of the seized item to satisfy himself or

herself that it was not likely to be used contrary to this Act or the regulations,

or, in the case of a mortgagee or lienholder, that he or she exercised that

care with respect to the mortgagor or the lien giver,

the judge may order that a seized

conveyance or other thing be returned to the applicant at a time and subject to

conditions to be specified by the judge or, considering the then actual value

of the forfeited item, the value of his or her interest be given to the

applicant.

(3) Section 14 of the Small Claims Act with respect to an appeal to the Supreme Court shall,

with the necessary changes, apply to an order made under subsection (2).

Arrest

53. An

inspector or police officer may arrest a person without a warrant where the

inspector or police officer finds the person while he or she is failing to

comply with or otherwise contravening this Act or the regulations.

Obstruction

54. A

person shall not interfere with or hinder an inspector or police officer in the

discharge of his or her duties under this Act or the regulations.

Search warrants

55. Notwithstanding

another

section of this Act, the provisions of the Criminal Code (Canada) adopted by

section 6 of the Provincial Offences Act relating to the

issuance of search warrants may be invoked for the purposes of a search made

under this Act in respect of which a search warrant is required or is

desirable.

Telewarrants

(1) Where,

in the opinion of an inspector or police officer it would not be practical to

personally appear before a Provincial Court judge to apply for a warrant, the

inspector or police officer may make the application by telephone, facsimile or

other means of telecommunication.

(2) Where the information on which an application

for a warrant is submitted by telephone, facsimile or other means of

telecommunication, the information shall be given under oath or affirmation,

and the oath or affirmation may be administered by telephone, facsimile or

other means of telecommunication.

(3) The information submitted by telephone, facsimile

or other means of telecommunication shall include

(

a) a statement of the circumstances that make it

impracticable for the inspector or police officer to appear personally before a

Provincial Court judge; and

(

b) a statement of the inspector's or police officer's

grounds for believing that a person has failed to comply with or otherwise contravened

this Act or the regulations or that entry onto premises where a failure to

comply with or a contravention of this Act or the regulations is believed to

occur has been denied.

(4) The sworn or affirmed information submitted by

telephone, facsimile or other means of telecommunication by an inspector or police

officer shall specify the name of the person giving evidence, the facts ascertained

and the manner and location in which evidence was received, and a record of

that information shall be filed by the Provincial Court judge with the clerk of

the court over which the judge presides.

Affidavit as

proof

(1) In

a prosecution for failure to provide a return required or the gross profit under

section 68 and in an action to recover money for which a person is liable under

this Act or the regulations, an affidavit by an inspector or police officer

sworn or affirmed before a person authorized to take affidavits stating that

(

a) the inspector or police officer has charge of

the appropriate books and records; and

(

b) after careful examination and search of those

books and records the inspector or police officer has been unable to find that

a return or gross profit required by this Act or the regulations has been received

by the corporation,

shall be accepted in a court, in the

absence of evidence to the contrary, as proof that the required return or gross

profit has not been received or paid.

(2) In a prosecution or proceeding under this Act

or the regulations, an affidavit by an inspector or police officer as to facts

necessary to establish that he or she has complied with this Act and the regulations

is admissible, in the absence of evidence to the contrary, as proof of the

facts set out in the affidavit.

Evidence in proceeding

58. In

a proceeding under this Act or the regulations,

(

a) information on a package indicating that it

contains cannabis is, in absence of evidence to the contrary, proof that the

package contains cannabis;

(

b) a container, receptacle, package or thing

seized in circumstances that create a reasonable inference that the contents of

it are or contain cannabis is, in absence of evidence to the contrary, proof

that the contents are or contain cannabis;

(

c) a name or address on a package purporting to

be the name or address of the person by whom the cannabis was produced or sold is,

in the absence of evidence to the contrary, proof that it was produced or sold by

that person;

(

d) where an inspector or police officer has made

a copy of books and records that have been seized, examined or produced under

this Act or the regulations, the copy certified by the inspector or police

officer to be a true copy is admissible in evidence, without proof of the

office or signature of the certifying inspector or police officer, and has the

same probative value as the original document;

(

e) every copy made under this Act or the

regulations that is certified as a true copy by the Attorney General, the

person who made the copy or the person in whose presence the copy was made is

admissible in evidence and, in the absence of evidence to the contrary, has the

same probative value as the original document would have if it had been proved

in the ordinary way; and

(

f) it is not necessary to show that value or

money was actually exchanged or paid to prove a sale where the judge hearing

the case is satisfied that a transaction in the nature of a sale took place.

Delivery considered

a sale

59. A

delivery of cannabis made otherwise than purely gratuitously shall be considered

a sale.

Places of concealment

60. Where

it is proved that upon a search under this Act, the regulations or a search

warrant that cannabis has been found in a place or premises which in the

opinion of the court or Provincial Court judge is constructed or designed for

purposes of concealment of contraband, that proof is, in the absence of

evidence to the contrary, evidence of keeping with intent to sell on the part

of the occupier of the place or premises and that the occupier of the place or

premises had knowledge that the cannabis was contraband.

Form of summons

61. In

a proceeding under this Act or the regulations, it is not necessary to specify

the class, variety, type or brand of cannabis sold, or to whom, or the time

when sold, but it is sufficient in the summons to charge the party accused with

a breach of a

section of this Act or the regulations, and a judgment shall not

be withheld on account of variance between proof and summons where it appears

to the satisfaction of the judge that the defendant was aware of the real cause

of complaint.

Proof of cannabis

(1) For

the purpose of a prosecution under this Act or the regulations, the certificate

of an analyst stating that a liquid or substance contains cannabis is, in the absence

of evidence to the contrary, proof that the liquid or substance does contain

cannabis.

(2) A certificate of an analyst stating that the

analyst has made an analysis of a sample of a liquid or substance under this

Act or the regulations stating the result of that analysis is evidence of the

facts alleged in the certificate without proof of the signature or the official

character of the person appearing to have signed the certificate.

(3) A judge may, in the absence of evidence to the

contrary, infer that a liquid or substance is or contains cannabis from the

fact that a witness describes it as being or containing cannabis or by another

name which is commonly applied to cannabis.

PART III

POSSESSION, Sale ,

Purchase, Consumption, TRANSPORTATION, advertising and promotion of cannabis

Definition

63. In

this Part, "retailer" includes the corporation.

General

prohibitions on possession

(1) A

person shall not possess in a public place or in a vehicle in a public place more

than 30 grams of dried cannabis or the federal equivalent amount without a

licence.

(2) A person shall not possess in a public place

or in a vehicle in a public place a cannabis plant that is budding or flowering.

(3) A person shall not possess more than 4 cannabis

plants.

(4) Notwithstanding subsection (3), if 2 or more

persons who are 19 years of age or older are ordinarily resident in the same

dwelling house, those persons shall not possess any cannabis plants if doing so

results in there being more than 4 cannabis plants being possessed at any one

time in the dwelling house.

(5) An organization in the province shall not

possess cannabis unless it holds a licence under this Act, the regulations or

the federal Act.

General prohibitions

on sales and purchases

(1) A

person shall not sell or otherwise supply cannabis or a cannabis accessory,

directly or indirectly, to a person who is under 19 years of age.

(2) A person without a licence, other than the

corporation, shall not sell or otherwise supply cannabis, directly or indirectly,

to another person.

(3) A person without an authorization shall not

sell or otherwise supply cannabis, directly or indirectly, to a retailer in the

province.

(4) A person shall not sell or otherwise supply

more than 30 grams of dried cannabis or the federal equivalent amount to a

person on any one occasion.

(5) Notwithstanding subsections (3) and (4), a

person other than a retailer, a producer or an employee of a retailer or a

producer may give not more than 30 grams of dried cannabis or the federal

equivalent amount to a person who is 19 years of age or older.

(6) A person shall not purchase or attempt to

purchase cannabis from a person other than a retailer.

Prohibitions on

person under 19 years of age

(1) A person who is under 19 years of age shall not

(

a) purchase, attempt to purchase, obtain, attempt

to obtain or possess cannabis or a cannabis accessory on his or her behalf or

on behalf of another person;

(

b) give, provide or supply cannabis or a cannabis

accessory to another person;

(

c) sell cannabis or cannabis accessories;

(

d) be an employee in or at a cannabis store;

(

e) stock, manage or deal with cannabis or

cannabis accessories at a cannabis retail location; or

(

f) enter, be in or at or remain in or at a cannabis

store.

(2) Notwithstanding subsection (1), a person who

is 18 years of age or older may, with the approval of an inspector and for the

purposes of testing compliance with this Act and the regulations, do one or

more of the following:

(

a) enter, be in or at or remain in or at a cannabis

store;

(

b) buy cannabis or a cannabis accessory; and

(

c) possess cannabis or a cannabis accessory.

(3) The board, with the approval of the

Lieutenant-Governor in Council, may make regulations with respect to the

circumstances or conditions under which compliance may be tested under subsection

(2).

Sales by producer

(1) Notwithstanding

subsection 65(2), a producer may sell or otherwise supply cannabis in

accordance with this Act and the regulations.

(2) A producer or an employee of a producer shall

not sell or otherwise supply cannabis, directly or indirectly, to a person in

the province who is not

(

a) a retailer; or

(

b) a person who purchased cannabis from the

corporation online or through the corporation's website.

(3) A producer or an employee of a producer shall

not sell or otherwise supply cannabis in the province while the licence issued to

the producer under the federal Act is suspended or revoked.

Return and gross

profit

(1) A

producer shall provide to the corporation a return for each month showing the sales

and activities in and for the province of the producer in that month.

(2) A return shall be provided in the form and

manner set by the corporation.

(3) A producer shall provide with the return an

amount equal to the gross profit for that month calculated in accordance with

the authorization issued to the producer.

(4) The return and the gross profit required under

subsection (3) shall be provided to the corporation within the first 10 days of

the month following the month reported in the return.

(5) The board, with the approval of the Lieutenant-Governor

in Council, may make regulations with respect to returns.

(6) Where a person does not pay the gross profit

required under subsection (3) in the time and manner required under this Act

and the regulations, interest shall be levied on that gross profit in

accordance with the regulations.

Purchase and sale

by retailer

(1) A

retailer shall not purchase, attempt to purchase, obtain or attempt to obtain

cannabis from a person who is not a producer.

(2) A retailer shall purchase cannabis in the form

and manner prescribed by the corporation.

(3) A retailer or an employee of a retailer shall

not sell or otherwise supply, directly or indirectly, cannabis or a cannabis

accessory

(

a) to a person who is under 19 years of age;

(

b) to a person noticeably under the influence of

alcohol or drugs; or

(

c) that is the subject of a recall order made

under the federal Act.

(4) A retailer or an employee of a retailer shall

not sell or otherwise supply cannabis in containers unless those containers

(

a) comply with the laws of Canada respecting packaging, labelling

and quality control standards; and

(

b) comply with the requirements prescribed by the

regulations.

(5) A retailer or an employee of a retailer shall

not sell or otherwise supply cannabis or a cannabis accessory by means of a

display that allows for self-service except as prescribed by the regulations.

(6) A retailer or an employee of a retailer shall

not sell or otherwise supply cannabis or a cannabis accessory by means of a

dispensing device except as prescribed by the regulations.

(7) A sale of cannabis by a retailer, including

the exchange of money, value or other consideration and the delivery of cannabis

to the person purchasing the cannabis, shall take place in or at the cannabis

store or cannabis retail location of the retailer selling the cannabis.

Storage by

retailer

(1) A

retailer shall store cannabis

(

a) in the container in which it was purchased

from the producer; and

(

b) in or at the cannabis store or cannabis retail

location in accordance with the regulations.

(2) A retailer shall not, and shall not permit another

person to, tamper with, open, unseal, add a label to, remove a label from,

manipulate or otherwise alter the container in which the retailer purchased the

cannabis while that container is in the possession of the retailer except as

prescribed by the regulations.

(3) A retailer shall not put cannabis in a

container in which the retailer purchased other cannabis.

(4) A retailer shall not dilute, tamper with,

manipulate or otherwise alter the contents of a container of cannabis while it

is in his, her or its possession.

Days and hours of

sale

71. A

retailer shall not in or at a cannabis store, a cannabis retail location or any

other place or premises sell or otherwise supply cannabis or receive a delivery

of cannabis

(

a) outside of the hours prescribed by this Act,

the regulations and the conditions of his, her or its licence for the sale of

cannabis; or

(

b) on a day on which a cannabis store or cannabis

retail location is, in accordance with this Act, another Act or regulations

made under those Acts, required to be closed.

Online sales

(1) A

person other than the corporation shall not sell or otherwise supply cannabis

online or through a website.

(2) A person in the province shall not purchase,

attempt to purchase, obtain or attempt to obtain cannabis online or through a

website.

(3) Notwithstanding subsection (2), a person may

purchase or obtain cannabis online or through a website from the corporation.

(4) Notwithstanding subsections (1), (2) and 69(7),

a retailer may sell or otherwise supply and a person may purchase or obtain cannabis

online or through a website where permitted by the regulations.

(5) The board, with the approval of the

Lieutenant-Governor in Council, may make regulations with respect to purchasing

cannabis online or through a website and the delivery of cannabis purchased

online or through a website.

Cannabis that may

be sold or otherwise supplied

(1) The

corporation shall fix the classes, varieties, types and brands of cannabis that

may be sold or otherwise supplied in the province and for each class, variety,

type and brand, the corporation shall fix

(

a) the size or quantity of a unit that may be

sold or otherwise supplied, where the cannabis is required to be sold or otherwise

supplied in units;

(

b) the size of each container in which the

cannabis is required to be sold or otherwise supplied and the mass or volume of

cannabis permitted in each container, where the cannabis is required to be sold

or otherwise supplied in containers;

(

c) the price at which each unit and container

shall be sold or otherwise supplied; and

(

d) the gross profit for each unit and container

that shall be paid under

section 68.

(2) Different prices and different gross profits

may be fixed for different classes, varieties, types, brands, sizes and

quantities of cannabis.

(3) The corporation may issue and distribute a

price list showing the price at which classes, varieties, types, brands, sizes

and quantities of cannabis shall be sold in the province.

(4) Notwithstanding subsections (1) and (2), the

minister may issue a directive in writing to the board respecting the prices at

which classes, brands and varieties of cannabis shall be sold in the province

to give effect to the Coordinated Cannabis Taxation Agreement.

(5) The board shall comply with a directive issued

by the minister under subsection (4).

Restrictions on

cannabis store

(1) A

cannabis store shall not sell or offer to sell products other than

(

a) cannabis;

(

b) cannabis accessories; and

(

c) products prescribed by the regulations.

(2) The Lieutenant-Governor in Council may prescribe

by regulation a limit on the total sales or the total proportion of sales in or

at a cannabis store from products referred to in paragraph (1)(c).

(3) A retailer or employee of a retailer shall not

permit a person who is under 19 years of age to enter, be in or at or remain in

or at a cannabis store.

Restriction on

place of consumption

(1) A

person shall not consume cannabis

(

a) in a public place;

(

b) in a place in which smoking is prohibited

under the Smoke-free Environment Act,

2005 ;

(

c) in or on a vehicle or boat; or

(

d) in a place prescribed by the regulations.

(2) Notwithstanding subsection (1), the

Lieutenant-Governor in Council may prescribe by regulation a location or place

in which cannabis may be consumed even though it would otherwise be prohibited

under paragraphs (1)(

a) to (c).

(3) Notwithstanding paragraph (1)(c), a person may

consume cannabis in or on a vehicle or a boat that is being used as a dwelling

house while

(

a) the vehicle is not in motion and is in or on private

land with the permission of the owner of the land; or

(

b) the boat is moored to land or anchored.

(4) Where there is a conflict between this

section

and the Smoke-free Environment Act, 2005 ,

the Smoke-free Environment Act, 2005

prevails.

(5) Notwithstanding paragraph 4(1)(a), paragraph

(1)(

c) and subsection (4) applies to a medical cannabis user.

No consumption where

cannabis purchased

(1) A person shall not consume cannabis in or at a cannabis store, cannabis retail

location or the place or premises of a producer.

(2) A retailer or employee of a retailer in or at

a cannabis store or cannabis retail location shall not permit a person to

consume cannabis in or at the cannabis store or cannabis retail location.

Cannabis in

vehicle or boat

(1) A

person shall not drive or have the care or control of a vehicle or a boat,

whether it is in motion or not, with cannabis in the vehicle or boat unless

(

a) the cannabis is in the package in which it was

purchased and the seal is unbroken;

(

b) the cannabis is not otherwise readily available

to a person in the vehicle or boat;

(

c) the vehicle or boat is being used as a dwelling

house; or

(

d) the cannabis is in the possession of a

passenger who is being transported, for compensation, in a bus or taxi.

(2) A common carrier or a person or class of

persons prescribed by the regulations may, in accordance with this Act and the regulations,

transport cannabis from a place or premises where cannabis is lawfully located

to another place or premises where cannabis may be lawfully located.

(3) Section 59, subsections 64(1) and (5) and paragraph

78(

a) do not apply to a person while that person is transporting cannabis in accordance

with subsection (2).

(4) The board, with the approval of the

Lieutenant-Governor in Council, may make regulations with respect to

transporting cannabis.

Bringing cannabis

into province

78. A

person shall not bring into the province from outside the province cannabis

which

(

a) exceeds the limit found in subsection 64(1);

(

b) was not lawfully obtained.

Proof of age

(1) A

retailer or an employee of a retailer shall require a person appearing to be

under 19 years of age to provide proof of age.

(2) Where a person is required to produce proof of

age under subsection (1), the person shall produce an identification card acceptable

to the corporation.

(3) A retailer or an employee of a retailer shall

not accept as proof of age a form of proof other than one referred to in subsection

(2).

No defence

80. It

is not a defence to a prosecution for an offence under this Act or the regulations

to show that the person who is under 19 years of age appeared to be 19 years of

age or older.

Intoxicated in

public place prohibited

81. A

person shall not be in an intoxicated condition in a public place.

Seizure from

person under 19 years of age

82. An

inspector or police officer may seize from a person who is under 19 years of

age cannabis or anything that the inspector or police officer believes on

reasonable grounds constitutes evidence of a failure to comply with or a contravention

of this Act or the regulations whether or not the person is charged with an offence.

Advertising and

promotion

(1) In

this section, "cannabis" and "cannabis accessory" include

the package in which the cannabis or cannabis accessory is sold.

(2) A retailer shall not, except in accordance

with the federal Act, this Act and the regulations,

(

a) display or permit the display of cannabis or

cannabis accessories online, through a website or in, at or on the interior or

exterior of a cannabis store or a cannabis retail location; or

(

b) advertise, promote or permit the advertising

or promotion of the sale or use of cannabis or cannabis accessories online,

through a website or in, at or on the interior or exterior of a cannabis store

or cannabis retail location.

PART IV

LIABILITY AND OFFENCES

Decision, etc.

final

84. Except

as provided in this Act, an action, order or decision of the board is final and

binding.

No liability

85. An

action or other proceeding does not lie against the corporation, employees of

the corporation, the board, a member of the board, a police officer, an inspector

or any other person for

(

a) an act or failure to act, or a proceeding

initiated or carried out in good faith under this Act, or in carrying out their

duties or obligations under this Act; or

(

b) for a decision or order made or enforced in

good faith under this Act.

Appeal

(1) A

complainant, including the corporation, or defendant who feels aggrieved by a

conviction, decision, order or sentence of a Provincial Court judge may appeal

to the Supreme Court and

(

a) the corporation or an officer of the

corporation shall, within 10 days, give written notice to the Provincial Court

judge and to the defendant of his, her or its intention to appeal; or

(

b) an appellant other than the corporation or an

officer of the corporation shall, within 10 days, give written notice to the

Provincial Court judge and to the corporation of his, her or its intention to appeal,

by personal service or by registered mail,

and shall abide by the order or decision of the Supreme Court and to pay a

penalty and costs or perform another act or comply with the conditions that may

be ordered or imposed by the court.

(2) An appeal under this

section does not stay the

order being appealed unless the Supreme Court orders otherwise.

Relying on exemption

or non-application

87. A

person who attempts to rely on an exemption under this Act or the regulations

or on the non-application of any provision of this Act or the regulations

shall, on the demand of an inspector or police officer,

(

a) provide to the inspector or police officer a

document or other thing to confirm the exemption or non-application; or

(

b) demonstrate to the satisfaction of the

inspector or police officer the applicability of the exemption or

non-application.

Possession of less

than 50 grams

88. A

person who possesses in a public place or in a vehicle in a public place more

than 30 grams but less than 50 grams of dried cannabis or the federal equivalent

amount contrary to subsection 64(1) is guilty of an offence and is liable on

summary conviction to a fine of $200.

Possession of

less than 7 cannabis plants

89. A

person who possesses more than 4 but less than 7 cannabis plants contrary to

subsection 64(3) is guilty of an offence and is liable on

summary conviction to

a fine of $200.

Offence re: purchase

or possession by person under 19 years of age

90. A

person who fails to comply with or otherwise contravenes paragraph 66 (1)(

a) is guilty of an offence and is

liable on

summary conviction to a fine of $100.

Offence re:

returns and gross profit

91. A

person who fails to provide a return or the gross profit under

section 68 is

guilty of an offence and is liable on

summary conviction to a fine of not less

than $100 and not more than $5,000.

Offence re: certain

sales

(1) A

person who fails to comply with or otherwise contravenes subsection 69(3) is

guilty of an offence and is liable on

summary conviction

(

a) for a first offence, to

(

i) a fine of not less than $500 and not more than

$10,000,

(ii) imprisonment for not more than 6 months, or

(iii) both a fine and imprisonment

and is liable on default of payment of the

fine to imprisonment for not more than 6 months;

(

b) for a second offence, to

(

i) a fine of not less than $1,000 and not more

than $50,000,

(ii) imprisonment for not more than one year, or

(iii) both a fine and imprisonment

and is liable on default of payment of the

fine to imprisonment for not more than one year; and

(

c) for a third or subsequent offence, to

(

i) a fine of not less than $2,000 and not more

than $100,000,

(ii) imprisonment for not more than 2 years, or

(iii) both a fine and imprisonment

and is liable on default of payment of the

fine to imprisonment for not more than 2 years.

(2) In this section, an offence is a second, third

or subsequent offence where a conviction is entered within 5 years of the first

conviction.

Offence re: place

of consumption

93. A

person who fails to comply with or otherwise contravenes paragraph 75(1)(a),

(

b) or (

d) is guilty of an offence and is liable on

summary conviction to a

fine of not less than $50 and not more than $500.

Offence re: cannabis

in vehicle

94. A

person who fails to comply with or otherwise contravenes paragraph 75(1)(

c) or

section

77 is guilty of an offence and is liable on

summary conviction to a fine of not

less than $300 and not more than $10,000 or, in default of payment of the fine,

to imprisonment for not less than 2 days and not more than 7 days.

Offence re: purchase,

possession, etc. contrary to Act

(1) Except

as provided in sections 88 to 90 and 92 to 94, a person who sells, gives,

supplies, purchases, possesses, stores, consumes or transports cannabis and

fails to comply with or otherwise contravenes this Act and the regulations is

guilty of an offence and is liable on

summary conviction

(

a) for a first offence, to

(

i) a fine of not less than $300 and not more than

$10,000,

(ii) imprisonment for not more than 6 months, or

(iii) both a fine and imprisonment

and is liable on default of payment of the

fine to imprisonment for not more than 6 months;

(

b) for a second offence, to

(

i) a fine of not less than $500 and not more than

$50,000,

(ii) imprisonment for not more than one year, or

(iii) both a fine and imprisonment

and is liable on default of payment of the

fine to imprisonment for not more than one year; and

(

c) for a third or subsequent offence, to

(

i) a fine of not less than $1,000 and not more

than $100,000,

(ii) imprisonment for not more than 2 years, or

(iii) both a fine and imprisonment

and is liable on default of payment of the

fine to imprisonment for not more than 2 years.

(2) In this section, an offence is a second, third

or subsequent offence where a conviction is entered within 5 years of the first

conviction.

(3) In addition to the penalties which are imposed

under subsection (1), a court shall order the person found guilty of an offence

under this

section to pay an additional fine equal to the sum of $25 per gram of

dried cannabis or the federal equivalent amount seized in relation to that

offence or in default of payment of the fine, to imprisonment for not less than

one month and not more than 6 months.

Offence re:

96. A

person who interferes with or hinders a person authorized under this Act or by a

search warrant to investigate a failure to comply with or a contravention of

this Act or the regulations or to make a search or examination or seizure in

the performance of his or her duties is guilty of an offence and is liable on

summary conviction to a fine of not less than $300 and not more than $10,000 or

in default of payment of the fine, to imprisonment for not less than one month

and not more than 6 months.

General offence

97. Except

where otherwise provided in this Act or the regulations, where a person fails

to comply with or otherwise contravenes a

section of this Act or the regulations,

he or she is guilty of an offence and is liable on

summary conviction

(

a) where the offence was committed for profit or

reward, to

(

i) a fine of not more than $10,000,

(ii) imprisonment for not more than one year, or

(iii) both a fine and imprisonment; and

(

b) where the offence is considered not to have

been committed for profit or reward, to

(

i) a fine of not more than $5,000,

(ii) imprisonment for not more than 3 months, or

(iii) both a fine and imprisonment

and in default of payment of the fine under

subparagraph (a)(

i) or (b)(i), to imprisonment for not more than 3 months.

Offence re:

terms, conditions, orders

98. A

person who

(

a) fails to comply with or otherwise contravenes

issued under this Act or the regulations; or

(

b) makes a false statement in a form or return

completed, made or provided under this Act or the regulations, which is not

declared to be an offence by another section,

is guilty of an offence and every

violation, contravention, failure to comply or false statement relating to a

separate transaction constitutes a separate offence.

Offence by incorporated

company

99. Where

an incorporated company commits an offence under this Act, whether or not the

incorporated company has been prosecuted and convicted, an officer, director,

agent or employee of the incorporated company who authorized, participated in or

acquiesced in the commission of the offence may be prosecuted and is subject to

the same penalties that may be imposed under this Act.

Limitation

100. A

complaint, including a prosecution under this Act, may be made and proceedings

may be taken on it within 7 years from the date of the offence.

PART V

REGULATIONS, TRANSITIONAL AND COMMENCEMENT

Lieutenant-Governor

in Council regulations

101. The

Lieutenant-Governor in Council may make regulations

(

a) prohibiting research and educational purposes,

including the distribution, possession or consumption of cannabis related to

research and educational purposes, for the purpose of subsection 4(2);

(

b) prescribing the manner in which interest shall

be calculated for the purposes of subsections 51(3) and 68(6);

(

c) prescribing the requirements for containers in

which cannabis may be sold or otherwise supplied;

(

d) prescribing when and the manner in which sales

by self-service and dispensing devices are permitted;

(

e) prescribing the manner in which a container

may be altered;

(

f) prescribing the products that a cannabis store

may sell other than cannabis and cannabis accessories;

(

g) prescribing a limit on the total sales or the

total proportion of sales in or at a cannabis store from products prescribed under

paragraph (f);

(

h) prescribing places

(

i) in which cannabis shall not be consumed, or

(ii) in which cannabis may be consumed;

(

i) respecting the storage and possession of

cannabis by a person other than a retailer;

(

j) respecting the cultivation, propagation and

growth of cannabis plants by an individual in the province including a limit on

the number of cannabis plants, the location an individual may cultivate,

propagate or grow cannabis plants and any other requirements;

(

k) defining a word or expression used but not

defined in this Act; and

(

l) generally, to give effect to the purpose of

this Act.

Board regulations

102. The

board, with the approval of the Lieutenant-Governor in Council, may make regulations

(

a) prescribing the period of time that

constitutes a period of inactivity;

authorizations, licences and suspensions;

(

c) establishing classes of licences;

(

d) prescribing the information required in a

notice of intention to apply for a licence under

section 21 and prescribing the

form and manner of and the time period for publication of those notices;

(

e) prescribing the deadline and the manner in

which a person may object to a licence being issued or transferred or to a

suspension or revocation of a licence;

(

f) prescribing information required for an application;

(

g) prescribing the notice required for a hearing

under paragraph 23(3)(

a) and the manner in which it shall be given;

(

h) respecting returns under

section 68;

(

i) prescribing the time at and the manner in

which the gross profit shall be paid;

(

j) respecting the storage of cannabis by a

retailer or in or at a cannabis store or cannabis retail location;

(

k) prescribing the days and hours during which a

cannabis store or cannabis retail location may sell or otherwise supply or

receive a delivery of cannabis, including different days and hours for

different classes of licences;

(

l) respecting the sale and purchase of cannabis online

or through a website;

(

m) respecting the transportation of cannabis in

the province and prescribing a class of persons who may transport cannabis;

(

n) respecting the disposal of cannabis;

(

o) respecting the circumstances or conditions

under which compliance may be tested under subsection 66(2);

(

p) prescribing the display, advertisement and

promotion of cannabis and cannabis accessories;

(

q) defining a word or expression used but not

defined in this Act; and

(

r) generally, to give effect to the purpose of

this Act.

Fees and forms

103. The

minister may set fees and the corporation may prescribe forms for the purpose

and administration of this Act.

Statutory review

104. The

minister shall, every 5 years, conduct a review of this Act and consider the

areas which may be improved.

Transitional

(1) A licence issued under the Liquor Corporation Act to possess, sell

or deliver cannabis before the coming into force of this Act shall be

considered to be a licence issued under this Act.

(2) Where an applicant submitted an application

under the Liquor Corporation Act to

possess, sell or deliver cannabis and the board had not dealt with the

application before the coming into force of this Act, the application shall be

considered to be an application under this Act.

(3) An order or decision of the board or the

corporation made under the Liquor

Corporation Act with respect to cannabis before the coming into force of

this Act shall be considered to be an order or decision under this Act.

(4) Notwithstanding anything in this Act, a person

shall not sell or otherwise supply cannabis in the province until the sale or

supply of cannabis is permitted in the province under the federal Act.

SNL2011

cC-37.00001 Amdt.

106. Subparagraph 2(h)(ii) of the Correctional Services Act is repealed

and the following substituted:

(ii) a controlled substance and an analogue, as

defined in the Controlled Drugs and

Substances Act (Canada), other than cannabis where that cannabis is

possessed or consumed with prior authorization, and

SNL2010 cC-37.02

Amdt.

107. Paragraph 2(

f) of the Court Security Act, 2010 is amended by adding immediately after subparagraph

(

i) the following:

(i.1) cannabis other than cannabis possessed by a

person who is authorized to possess it for his or her own medical purposes in

accordance with the Cannabis Act

(Canada) or regulations made under that Act,

RSNL1990 cS-6

Amdt.

108. Subsection 4(2) of the Sale of Goods Act is repealed and the following substituted:

(2) Where necessaries are sold and delivered to an

infant or minor, or to a person who because of mental incapacity or impairment

by alcohol or drugs, is incompetent to contract, he or she shall pay a reasonable

price for those necessaries.

SNL2010 cT-0.02

Amdt.

109. Paragraph 6(2)(

b) of the Tax Agreement Act, 2010 is repealed and the following substituted:

(

b) for the purpose of administering or enforcing

the Cannabis Control Act , the Liquor Control Act or the Liquor Corporation Act ;

SNL1993 cT-4.1

Amdt.

(1) Section 2 of the Tobacco and Vapour Products Control Act is amended by adding

immediately after paragraph (

a) the following:

(a.1) "cannabis" has the same meaning as

in the Cannabis Control Act ;

(2) Paragraph 2(

c) of the Act is amended by

deleting the word "and" at the end of subparagraph (i), deleting the semi-colon

at the end of subparagraph (ii) and substituting a comma and the word

"and", and by adding immediately after that subparagraph the

following:

(iii) that is not or does not contain cannabis;

NLR 26/01 Amdt.

111. Subsection 6(2) of the Direct Equity Tax Credit Regulations made under the Income Tax Act, 2000 is amended by

adding immediately after paragraph (

b) the following:

(b.1) producing cannabis for commercial purposes under

a licence issued under the Cannabis Act

( Canada );

CNLR 1022/96

Amdt.

112. Paragraph 28(1)(

f) of the Food Premises Regulations made under the Food Premises Act is repealed and the following substituted:

(

f) not use tobacco products or consume cannabis

while engaged in handling or contacting food or a food utensil; and

NLR 78/99 Amdt.

Section 2 of the Provincial Offences Ticket Regulations,

1999 made under the Provincial

Offences Act is amended by adding immediately after paragraph (h.1) the following:

(h.2) a provision of the Cannabis Control Act or a regulation made under that Act;

CNLR 1115/96

Amdt.

114. Paragraph 2(

j) of the Shops' Closing Regulations made under the Shops' Closing Act is repealed and the following substituted:

(

j) pharmacies;

Commencement

115. This Act, or a section, subsection, paragraph

or subparagraph of this Act, comes into force on a day or days to be proclaimed

by the Lieutenant-Governor in Council.

Queen's Printer