Cannabis Act (S.C. 2018, c. 16)

Marginal note:Agreements

59 The Attorney General of Canada may enter into an agreement with the government of a province or with any provincial, municipal or local authority or any agent or mandatary of any such authority respecting, in particular, the following matters:

• (a) the prosecution of offences commenced under this Part; and

• (b) the discharge and enforcement of fines and fees referred to in this Part in respect of offences that are alleged to have been committed in or that are otherwise within the territorial jurisdiction of the courts of the province.

Marginal note:Compensation agreements

• 60 (1) The Attorney General of Canada may enter into an agreement with the government of a province or with any provincial, municipal or local authority

  • (a) respecting the sharing with that province or authority of the amounts in respect of fines and fees that are collected in respect of the prosecution of offences commenced under this Part, for the purpose of Canada compensating that province or authority, in whole or in part, for the administration and enforcement of this Part; and

  • (b) despite subsections 17(1) and (4) of the Financial Administration Act, authorizing the government of the province or the authority to withhold amounts, in accordance with the terms and conditions of the agreement, from the fines and fees referred to in paragraph (a) to be remitted to the Receiver General and deposited in the Consolidated Revenue Fund.

• Marginal note:Deemed not public money

  (2) The fees imposed under the laws of a province in respect of offences under Division 1 of Part 1 are deemed not to be public money for the purposes of the Financial Administration Act.

• Marginal note:Appropriation by Parliament

  (3) All or a portion of the amount of fines and fees referred to in paragraph (1)(a) that are to be shared under an agreement are deemed to be appropriated by Parliament for that purpose.

PART 3Licences and Permits

Marginal note:Applications for licences and permits

• 61 (1) For the purposes of exercising his or her power under subsection 62(1) to issue or renew licences and permits, the Minister may, by order,

  • (a) establish classes of applications;

  • (b) establish conditions, by class of application or otherwise, that must be met before or during the consideration of an application;

  • (c) establish an order, by class of application or otherwise, for the consideration of applications; and

  • (d) provide for the disposition of applications, including those made by an applicant subsequent to the applicant’s first application.

• Marginal note:No decision

  (2) The fact that an application is retained, returned or disposed of without being considered does not constitute a decision in respect of the application.

• Marginal note:Clarification — pending applications

  (3) For greater certainty, an order made under subsection (1) also applies in respect of applications in respect of which no final decision had been made by the Minister before the making of the order.

• Marginal note:Clarification — other powers

  (4) Nothing in this section in any way limits the power of the Minister to otherwise determine the most efficient manner in which applications are considered.

Marginal note:Authority to issue, renew and amend

• 62 (1) Subject to orders made under subsection 61(1), the regulations and subsection (2), the Minister may, on application, issue, renew or amend licences and permits that authorize the importation, exportation, production, testing, packaging, labelling, sending, delivery, transportation, sale, possession or disposal of cannabis or any class of cannabis.

• Marginal note:Limitation — importation and exportation

  (2) Licences and permits authorizing the importation or exportation of cannabis may be issued only in respect of cannabis for medical or scientific purposes or in respect of industrial hemp.

• Marginal note:Application

  (3) An application for a licence or permit, or for its renewal or amendment, must be filed with the Minister in the form and manner specified by the Minister and set out the information required by the Minister, including financial information and any information required by the regulations.

• Marginal note:Financial information

  (4) For the purposes of subsection (3), financial information in respect of an organization includes information about its shareholders or members and who controls it, directly or indirectly.

• Marginal note:Additional information

  (5) The Minister may, on receiving an application, require the submission of any additional information, including financial information, that pertains to the information contained in the application and that is necessary for the Minister to consider the application.

• Marginal note:Refusal to consider

  (6) The Minister may refuse to consider an application if any information required to be provided under any of subsections (3) to (5) is not provided.

• Marginal note:Grounds for refusal

  (7) The Minister may refuse to issue, renew or amend a licence or permit if

  • (a) the issuance, the renewal or the amendment is likely to create a risk to public health or public safety, including the risk of cannabis being diverted to an illicit market or activity;

  • (b) there are reasonable grounds to believe that false or misleading information or false or falsified documents were submitted in, or in support of, the application;

  • (c) the applicant has contravened in the past 10 years a provision of this Act, the Controlled Drugs and Substances Act or the Food and Drugs Act or of any regulation made under this Act or any of those Acts;

  • (d) there are reasonable grounds to believe that the applicant has contravened in the past 10 years

    • (i) an order made under this Act, the Controlled Drugs and Substances Act or the Food and Drugs Act, or

    • (ii) a condition of another licence or permit issued to the applicant under this Act or any of those Acts;

  • (e) the applicant is

    • (i) a young person,

    • (ii) an individual who is not ordinarily resident in Canada, or

    • (iii) an organization that was incorporated, formed or otherwise organized outside Canada;

  • (f) a security clearance in respect of the application has been refused or cancelled;

  • (g) the Minister is of the opinion that it is in the public interest to do so; or

  • (h) any prescribed grounds for refusal exist.

• Marginal note:Notice of refusal

  (8) If the Minister refuses to issue, renew or amend a licence or permit, he or she must send the applicant a notice in writing that sets out the reasons for the refusal.

• Marginal note:Conditions — regulations

  (9) Every licence or permit is subject to the conditions set out in regulations made under paragraph 139(1)(g).

• Marginal note:Conditions — Minister

  (10) Subject to the regulations, the Minister may make a licence or permit subject to any conditions that he or she considers appropriate.

Marginal note:Amendment on own initiative

• 63 (1) The Minister may, in accordance with the regulations, on his or her own initiative, amend a licence or permit if he or she is of the opinion that the amendment is necessary to protect public health or public safety, including to prevent cannabis from being diverted to an illicit market or activity.

• Marginal note:Notice of proposed amendment

  (2) If the Minister proposes to amend a licence or permit on his or her own initiative, he or she must, in accordance with the regulations, send its holder a notice in writing that sets out the reasons for the proposed amendment and give the holder an opportunity to be heard.

Marginal note:Suspension

• 64 (1) Subject to the regulations, the Minister may suspend a licence or permit without prior notice to its holder in respect of any or all authorized activities in relation to any cannabis specified by the Minister if

  • (a) the Minister has reasonable grounds to believe that the suspension is necessary to protect public health or public safety, including to prevent cannabis from being diverted to an illicit market or activity; or

  • (b) any prescribed circumstance exists.

• Marginal note:Notice of suspension

  (2) If a licence or permit is suspended under subsection (1), the suspension takes effect as soon as the Minister provides the holder with a notice in writing of the suspension. The notice must also set out the reasons for the suspension.

• Marginal note:Opportunity to be heard

  (3) The holder may, within 10 days after receipt of the notice under subsection (2), provide the Minister with reasons why the holder believes the suspension is unfounded.

• Marginal note:Reinstatement

  (4) The Minister must, by notice to the holder, reinstate a licence or permit in respect of any or all activities or cannabis affected by the suspension if the reasons for the suspension no longer exist or the holder demonstrates to the Minister that the suspension was unfounded.

Marginal note:Revocation

65 Subject to the regulations, the Minister may revoke a licence or permit if

• (a) there are reasonable grounds to believe that it was issued on the basis of false or misleading information or false or falsified documents submitted in, or in support of, the application;

• (b) the holder has, since its issuance, contravened a provision of this Act, the Controlled Drugs and Substances Act or the Food and Drugs Act or of any regulation made under this Act or any of those Acts;

• (c) there are reasonable grounds to believe that the holder has, since its issuance, contravened

  • (i) an order made under this Act, the Controlled Drugs and Substances Act or the Food and Drugs Act, or

  • (ii) a condition of another licence or permit issued to the holder under this Act or any of those Acts;

• (d) information received from a peace officer, a competent authority or an international organization of states or any of its institutions raises reasonable grounds to believe that its holder has been involved in the diversion of cannabis, or of any controlled substance or precursor as those terms are defined in subsection 2(1) of the Controlled Drugs and Substances Act, to an illicit market or activity;

• (e) the holder is an individual who has, since its issuance, ceased to be ordinarily resident in Canada;

• (f) since the issuance of the licence or permit, a security clearance in respect of the licence or permit has been cancelled;

• (g) the Minister is of the opinion that it is in the public interest to revoke it; or

• (h) any prescribed circumstance exists.

Marginal note:Notice of proposed revocation

66 If the Minister proposes to revoke a licence or permit, he or she must, in accordance with the regulations, send its holder a notice in writing that sets out the reasons for the proposed revocation and give the holder an opportunity to be heard.

Marginal note:Security clearances

• 67 (1) Subject to the regulations, the Minister may grant or refuse to grant a security clearance or suspend or cancel a security clearance.

• Marginal note:Security clearance required by Minister

  (2) The Minister may specify, by name or position, any person — other than a person specified in the regulations — who must hold a security clearance if the Minister is of the opinion that the person

  • (a) performs, has performed or is about to perform activities related to a licence or permit that is issued under this Part or that is the subject of an application under this Part; or

  • (b) has, has had or is about to have custody, management or control of the place where activities related to a licence or permit that is issued under this Part or that is the subject of an application under this Part, are being or will be performed.

• Marginal note:Notice

  (3) If the Minister specifies that a person must hold a security clearance under subsection (2), the Minister must provide the applicant for, or the holder of, the licence or permit related to that person with a notice to that effect in writing.

Marginal note:Termination of application

• 68 (1) The Minister may, by order, fix a date for the termination of applications of a class of applications for a licence or permit under section 62 and, if he or she does so, every application of that class is terminated at the expiry of that date if a final decision has not been made in respect of that application.

• Marginal note:Fees returned

  (2) Any fees paid in respect of an application that is terminated under subsection (1) must be returned, without interest, to the person that paid them. The amounts payable may be paid out of the Consolidated Revenue Fund.

• Marginal note:No recourse or indemnity

  (3) No person has a right of recourse or indemnity against Her Majesty in connection with an application that is terminated under subsection (1).

PART 4General Authorizations

Marginal note:Provincially authorized selling

• 69 (1) A person may possess, sell or distribute cannabis if the person is authorized to sell cannabis under a provincial Act that contains the legislative measures referred to in subsection (3).

• Marginal note:Application

  (2) Subsection (1) applies only if the provincial Act and the legislative measures are in force.

• Marginal note:Legislative measures

  (3) For the purposes of subsection (1), the legislative measures in a provincial Act that authorizes the selling of cannabis are the following in respect of persons authorized to sell cannabis:

  • (a) they may sell only cannabis that has been produced by a person that is authorized under this Act to produce cannabis for commercial purposes;

  • (b) they may not sell cannabis to young persons;

  • (c) they are required to keep appropriate records respecting their activities in relation to cannabis that they possess for commercial purposes; and

  • (d) they are required to take adequate measures to reduce the risk of cannabis that they possess for commercial purposes being diverted to an illicit market or activity.

Marginal note:Administration and enforcement activities — federal Acts

• 70 (1) Unless the regulations provide otherwise, every individual who obtains cannabis in the course of activities performed in connection with the administration or enforcement of this Act or any other Act of Parliament is authorized to do anything that is prohibited by any provision of Division 1 of Part 1 if they do so in a manner that is consistent with the activities they are authorized to perform.

• Marginal note:Administration and enforcement activities — provincial Acts

  (2) Every individual who obtains cannabis in the course of activities performed in connection with the administration or enforcement of any provincial Act that authorizes the selling of cannabis is authorized to do anything that is prohibited by any provision of Division 1 of Part 1 if they do so in a manner that is consistent with the activities they are authorized to perform.