20

 


 

Third Session, 48th General Assembly

67 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


        1.   Short title

        2.   Definitions

        3.   Labrador Inuit rights

        4.   Application

        5.   Expenses, debts and liabilities of corporation

        6.   All money to be paid to corporation

        7.   Purchase and cancellation by corporation

        8.   Exchange and sharing of information

              PART I
AUTHORIZATIONS AND LICENCES

        9.   Authorization

      10.   Terms and conditions of authorizations

      11.   Circumstances under which corporation shall not issue authorization

      12.   Request for authorization

      13.   Issuance or denial of authorization

      14.   List of producers

      15.   Revocation of authorizations

      16.   Licence

      17.   Terms and conditions of licences

      18.   Circumstances under which board shall not issue licence

      19.   Application for licence

      20.   Place or premises being constructed or renovated

      21.   Notice of intention to apply for licence

      22.   Objections to licence application

      23.   Hearings re: applications for licence

      24.   Issuance or denial of licence

      25.   Term and effective date of licence

      26.   Fee

      27.   Licence shall be posted

      28.   Annual fee and reporting

      29.   Transfer of licence

      30.   Request for permission to transfer

      31.   Granting or denial of transfer

      32.   Suspension by inspector

      33.   Review of temporary suspension

      34.   Suspension or revocation of licence

      35.   Objections to suspension or revocation

      36.   Hearings re: suspension and revocation

      37.   Failure of retailer to appear

      38.   Decisions and orders

      39.   Suspensions generally

      40.   Temporary licences

      41.   Appeal of decision or order of board

      42.   Limitation period

      43.   Exception to disclosure in written reasons

      44.   Investigations

              PART II
INSPECTIONS

      45.   Definitions

      46.   Examination of books

      47.   Board may appoint inspectors

      48.   Inspection to determine compliance

      49.   Suspected contravention - search and seizure

      50.   Seizure of contraband

      51.   Disposal or return of evidence

      52.   Third party claims

      53.   Arrest

      54.   Obstruction

      55.   Search warrants

      56.   Telewarrants

      57.   Affidavit as proof

      58.   Evidence in proceeding

      59.   Delivery considered a sale

      60.   Places of concealment

      61.   Form of summons

      62.   Proof of cannabis

              PART III
POSSESSION, SALE, PURCHASE, CONSUMPTION, TRANSPORTATION, ADVERTISING AND PROMOTION OF CANNABIS

      63.   Definition

      64.   General prohibitions on possession

      65.   General prohibitions on sales and purchases

      66.   Prohibitions on person under 19 years of age

      67.   Sales by producer

      68.   Return and gross profit

      69.   Purchase and sale by retailer

      70.   Storage by retailer

      71.   Days and hours of sale

      72.   Online sales

      73.   Cannabis that may be sold or otherwise supplied

      74.   Restrictions on cannabis store

      75.   Restriction on place of consumption

      76.   No consumption where cannabis purchased

      77.   Cannabis in vehicle or boat

      78.   Bringing cannabis into province

      79.   Proof of age

      80.   No defence

      81.   Intoxicated in public place prohibited

      82.   Seizure from person under 19 years of age

      83.   Advertising and promotion

              PART IV
LIABILITY AND OFFENCES

      84.   Decision, etc. final

      85.   No liability

      86.   Appeal

      87.   Relying on exemption or non-application

      88.   Possession of less than 50 grams

      89.   Possession of less than 7 cannabis plants

      90.   Offence re: purchase or possession by person under 19 years of age

      91.   Offence re: returns and gross profit

      92.   Offence re: certain sales

      93.   Offence re: place of consumption

      94.   Offence re: cannabis in vehicle

      95.   Offence re: purchase, possession, etc. contrary to Act

      96.   Offence re: search

      97.   General offence

      98.   Offence re: terms, conditions, orders

      99.   Offence by incorporated company

    100.   Limitation

              PART V
REGULATIONS, TRANSITIONAL AND COMMENCEMENT

    101.   Lieutenant-Governor in Council regulations

    102.   Board regulations

    103.   Fees and forms

    104.   Statutory review

    105.   Transitional

    106.   SNL2011 cC-37.00001 Amdt.

    107.   SNL2010 cC-37.02 Amdt.

    108.   RSNL1990 cS-6 Amdt.

    109.   SNL2010 cT-0.02 Amdt.

    110.   SNL1993 cT-4.1 Amdt.

    111.   NLR 26/01 Amdt.

    112.   CNLR 1022/96 Amdt.

    113.   NLR 78/99 Amdt.

    114.   CNLR 1115/96 Amdt.

    115.   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

        4. (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; or

             (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; or

             (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

        8. (1) The corporation may exchange information obtained by the board or the corporation in the administration of this Act with the Government of Canada or a department or agency of the Government of Canada.

             (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

        9. (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.

Terms and conditions of authorizations

      10. An authorization shall be subject to the terms and conditions imposed by the 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

      13. (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

      14. (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

      15. (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

      16. (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.

Terms and conditions of licences

      17. A licence shall be subject to the terms and conditions imposed by the board, this 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

      19. (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

      20. (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

      21. (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

      23. (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

      24. (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

      25. (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

      26. (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

      29. (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

      31. (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

      32. (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.

             (2)  An inspector may impose terms and conditions on a temporary suspension.

             (3)  An inspector shall terminate a temporary suspension where the retailer meets the terms and conditions of the temporary suspension.

             (4)  A temporary suspension shall not exceed 45 days.

Review of temporary suspension

      33. (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

      34. (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

      36. (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 by

             (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

      38. (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.

             (3)  The board may impose terms and conditions on the suspension of a licence.

             (4)  The board shall terminate a suspension where the retailer meets the terms and conditions of the suspension.

Suspensions generally

      39. (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

      41. (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

      44. (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

      46. (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

      47. (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

      48. (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

      49. (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

      51. (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

      52. (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

      56. (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

      57. (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

      62. (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

      64. (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

      65. (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

      66. (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

      67. (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

      68. (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

      69. (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

      70. (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

      72. (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

      73. (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

      74. (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

      75. (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

      76. (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

      77. (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); or

             (b)  was not lawfully obtained.

Proof of age

      79. (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

      83. (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

      86. (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

      92. (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

      95. (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: search

      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 the terms and conditions of an authorization, licence, suspension or order 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;

             (b)  prescribing terms and conditions of 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

   105. (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.

   110. (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.

   113. 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.