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Cannabis Act (S.C. 2018, c. 16)

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Act current to 2022-11-16 and last amended on 2020-10-17. Previous Versions

PART 9Disposition of Seized Things (continued)

DIVISION 2Cannabis and Chemical Property (continued)

Marginal note:Expedited disposition

 If all or any part of any cannabis or chemical property whose storage or handling poses a risk to health or safety is not required for the purposes of a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament, the Minister or a peace officer or prescribed person may dispose of or otherwise deal with it in accordance with the regulations or, if there are no applicable regulations, in the manner that the Minister directs.

Marginal note:Destruction of plants

 The Minister may, on prior notification being given to the Attorney General, cause to be destroyed any cannabis plant that is being produced contrary to the provisions of this Act or of the regulations.

Marginal note:Disposition following proceedings

 Subject to section 103, if, in a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament, the court before which the proceedings have been brought is satisfied that any cannabis or chemical property that is the subject of proceedings before the court is no longer required by that court or any other court, the court

  • (a) must order that it be returned to

    • (i) the person from which it was seized if the court is satisfied that the person came into its possession lawfully and continued to deal with it lawfully, or

    • (ii) the person that is its owner or that is entitled to its possession, if that person is known and if the court is satisfied that its possession by the person from which it was seized was unlawful; and

  • (b) may order that it be forfeited to Her Majesty to be disposed of or otherwise dealt with in accordance with the regulations or, if there are no applicable regulations, in the manner that the Minister directs, if

    • (i) the court is not satisfied that it should be returned under subparagraph (a)(i) or (ii), or

    • (ii) its possession by the person from which it was seized was unlawful and the person that is its owner or that is entitled to its possession is not known.

Marginal note:Disposal with consent

 If cannabis or chemical property has been seized, found or otherwise acquired by a peace officer, inspector or prescribed person and it or a part of it is not required for the purposes of a preliminary inquiry, trial or other proceeding under this Act or any other Act of Parliament, its owner may consent to its disposal and, if the consent is given, the cannabis or property, or the part that is not required, as the case may be, is forfeited to Her Majesty and may be disposed of or otherwise dealt with in accordance with the regulations or, if there are no applicable regulations, in the manner that the Minister directs.

Marginal note:Disposition report

  •  (1) Subject to the regulations, every peace officer, inspector or prescribed person that disposes of or otherwise deals with cannabis or chemical property under this Act must, within 30 days after doing so, cause a report to be sent to the Minister setting out

    • (a) a description of the cannabis or property;

    • (b) the amount of it that was disposed of or otherwise dealt with;

    • (c) the manner in which it was disposed of or otherwise dealt with;

    • (d) the date on which it was disposed of or otherwise dealt with;

    • (e) the name of the police force, agency or entity to which the peace officer, inspector or prescribed person belongs;

    • (f) the number of the file or police report related to its disposition or the other dealing with it; and

    • (g) any other prescribed information.

  • Marginal note:Interpretation

    (2) For the purposes of subsection (1), otherwise dealing with cannabis or chemical property by a peace officer includes using it to conduct an investigation or for training purposes.

PART 10Administrative Monetary Penalties

Powers of Minister

Marginal note:Powers

 The Minister may designate individuals, or classes of individuals, who are authorized to issue notices of violation and establish, in respect of each violation, a short-form description to be used in notices of violation.

Violation

Marginal note:Commission

  •  (1) Every person that contravenes a provision of this Act — except provisions of Division 1 of Part 1 — a provision of the regulations, or an order made under any of sections 73 to 76, an order amended under section 79 or an order made under section 82, commits a violation and is liable to a penalty of not more than $1,000,000 or, if the violation is classified by the regulations as a minor violation, a serious violation or a very serious violation, to a penalty of not more than the maximum amount fixed by the regulations in relation to that classification.

  • Marginal note:Purpose of penalty

    (2) The purpose of a penalty is to promote compliance with this Act.

Proceedings

Marginal note:Issuance of notice of violation

  •  (1) If an individual who is designated under section 110 believes on reasonable grounds that a person has committed a violation, the designated individual may issue, and must provide the person with, a notice of violation that

    • (a) sets out the person’s name;

    • (b) identifies the alleged violation;

    • (c) sets out the penalty for the violation that the person is liable to pay; and

    • (d) sets out the particulars concerning the time and manner of payment.

  • Marginal note:Summary of rights

    (2) A notice of violation must summarize, in plain language, the rights and obligations of the named person under this section and sections 113 to 125, including the right to have the acts or omissions that constitute the alleged violation or the amount of the penalty reviewed and the procedure for requesting that review.

  • Marginal note:Penalty

    (3) The penalty for a violation is to be determined by taking into account

    • (a) the person’s history of compliance or non-compliance with the provisions of this Act or of the regulations;

    • (b) the nature and scope of the violation;

    • (c) whether the person made reasonable efforts to mitigate or reverse the effects of the violation;

    • (d) whether the person derived any competitive or economic benefit from the violation; and

    • (e) any other prescribed criteria.

Penalties

Marginal note:Payment

  •  (1) If the person named in the notice of violation pays, in the time and manner specified in the notice, the amount of the penalty set out in the notice,

    • (a) they are deemed to have committed the violation in respect of which the amount is paid;

    • (b) the Minister must accept that amount as complete satisfaction of the penalty in respect of the violation; and

    • (c) the proceedings commenced in respect of the violation are ended.

  • Marginal note:Alternatives

    (2) Instead of paying the amount of the penalty set out in the notice, the person named in the notice may, in the time and manner specified in the notice,

    • (a) if the amount of the penalty set out in the notice is $5,000 or more, request to enter into a compliance agreement with the Minister that ensures the person’s compliance with the provision or the order to which the violation relates; or

    • (b) request a review by the Minister of the acts or omissions that constitute the alleged violation or of the amount of the penalty.

  • Marginal note:Deeming

    (3) If the person named in the notice does not pay the penalty set out in the notice in the time and manner specified in the notice and does not exercise any right referred to in subsection (2) in the specified time and manner, they are deemed to have committed the violation identified in the notice.

Compliance Agreements

Marginal note:Entering into compliance agreements

  •  (1) After considering a request made under paragraph 113(2)(a), the Minister may enter into a compliance agreement, as described in that paragraph, with the person making the request on any terms and conditions that are satisfactory to the Minister. The terms and conditions may

    • (a) include a provision for the deposit of reasonable security, in a form and amount satisfactory to the Minister, as a guarantee that the person will comply with the compliance agreement; and

    • (b) provide for the reduction, in whole or in part, of the penalty for the violation.

  • Marginal note:Deeming

    (2) A person that enters into a compliance agreement with the Minister is, on doing so, deemed to have committed the violation in respect of which the compliance agreement was entered into.

  • Marginal note:Notice of compliance

    (3) If the Minister is satisfied that a person that has entered into a compliance agreement has complied with it, the Minister must cause a notice to that effect to be provided to the person, at which time

    • (a) the proceedings commenced in respect of the violation are ended; and

    • (b) any security given by the person under the compliance agreement must be returned to the person.

  • Marginal note:Notice of default

    (4) If the Minister is of the opinion that a person that has entered into a compliance agreement has not complied with it, the Minister must cause a notice of default to be provided to the person to the effect that

    • (a) instead of being liable to pay the amount of the penalty set out in the notice of violation in respect of which the compliance agreement was entered into, the person is liable to pay, in the time and manner specified in the notice of violation, twice the amount of that penalty, and, for greater certainty, subsections 111(1) and 139(4) do not apply in respect of that amount; or

    • (b) the security, if any, given by the person under the compliance agreement is forfeited to Her Majesty in right of Canada.

  • Marginal note:Effect of notice of default

    (5) Once provided with the notice of default, the person may not deduct from the amount set out in the notice of default any amount they spent under the compliance agreement and

    • (a) the person is liable to pay the amount set out in the notice of default in the time and manner specified in the notice of violation; or

    • (b) if the notice provides for the forfeiture of the security given under the compliance agreement, that security is forfeited to Her Majesty in right of Canada and the proceedings commenced in respect of the violation are ended.

  • Marginal note:Effect of payment

    (6) If a person pays the amount set out in the notice of default in the time and manner specified in the notice of violation, the Minister must accept the amount as complete satisfaction of the amount owing in respect of the violation and the proceedings commenced in respect of the violation are ended.

Marginal note:Refusal to enter into compliance agreement

  •  (1) If the Minister refuses to enter into a compliance agreement requested under paragraph 113(2)(a), the person that made the request is liable to pay, in the time and manner specified in the notice of violation, the amount of the penalty set out in the notice of violation.

  • Marginal note:Effect of payment

    (2) If a person pays the amount referred to in subsection (1),

    • (a) they are deemed to have committed the violation in respect of which the amount is paid;

    • (b) the Minister must accept the amount as complete satisfaction of the penalty in respect of the violation; and

    • (c) the proceedings commenced in respect of the violation are ended.

  • Marginal note:Deeming

    (3) If a person does not pay the amount referred to in subsection (1) in the specified time and manner, they are deemed to have committed the violation identified in the notice of violation.

Review by Minister

Marginal note:Review — with respect to facts

  •  (1) On completion of a review requested under paragraph 113(2)(b) with respect to the acts or omissions that constitute the alleged violation, the Minister must determine whether the person that requested the review committed the violation. If the Minister determines that the person committed the violation but that the amount of the penalty was not established in accordance with the provisions of this Act and of the regulations, the Minister must correct the amount.

  • Marginal note:Violation not committed — effect

    (2) If the Minister determines under subsection (1) that the person that requested the review did not commit the violation, the proceedings commenced in respect of it are ended.

  • Marginal note:Review — with respect to penalty

    (3) On completion of a review requested under paragraph 113(2)(b) with respect to the amount of the penalty, the Minister must determine whether the amount of the penalty was established in accordance with the provisions of this Act and of the regulations and, if not, the Minister must correct the amount.

  • Marginal note:Notice of decision

    (4) The Minister must cause a notice of any decision made under subsection (1) or (3) to be provided to the person that requested the review.

  • Marginal note:Payment

    (5) The person that requested the review is liable to pay, in the time and manner specified in the notice of violation, the amount of the penalty that is confirmed or corrected in the Minister’s decision made under subsection (1) or (3).

  • Marginal note:Effect of payment

    (6) If a person pays the amount referred to in subsection (5), the Minister must accept the amount as complete satisfaction of the penalty in respect of the violation and the proceedings commenced in respect of the violation are ended.

  • Marginal note:Written evidence and submissions

    (7) The Minister is to consider only written evidence and written submissions in determining whether a person committed a violation or whether the amount of a penalty was established in accordance with the provisions of this Act and of the regulations.

Enforcement

Marginal note:Debts to Her Majesty

  •  (1) The following amounts constitute debts due to Her Majesty in right of Canada that may be recovered in the Federal Court:

    • (a) the amount of a penalty, from the time the notice of violation setting out the amount of the penalty is provided;

    • (b) every amount set out in a compliance agreement entered into with the Minister under subsection 114(1), from the time the compliance agreement is entered into;

    • (c) the amount set out in a notice of default referred to in subsection 114(4), from the time the notice is provided; and

    • (d) the amount of a penalty as set out in a decision of the Minister made under subsection 116(1) or (3), from the time the notice of that decision is provided.

  • Marginal note:Limitation period

    (2) No proceedings to recover a debt referred to in subsection (1) may be commenced after the expiry of five years after the day on which the debt became payable.

  • Marginal note:Debt final

    (3) A debt referred to in subsection (1) is final and not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by sections 113 to 116.

Marginal note:Certificate of default

  •  (1) Any debt referred to in subsection 117(1) in respect of which there is a default of payment, or the part of any such debt that has not been paid, may be certified by the Minister.

  • Marginal note:Judgment

    (2) On production to the Federal Court, a certificate made under subsection (1) must be registered in that Court and, when registered, has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment obtained in that Court for a debt of the amount specified in it and all reasonable costs and charges associated with the registration of the certificate.

 
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