Cannabis Act (S.C. 2018, c. 16)

Compliance Agreements

Marginal note:Entering into compliance agreements

• 114 (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

• 115 (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

• 116 (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

• 117 (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

• 118 (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.

Rules About Violations

Marginal note:Certain defences not available

• 119 (1) A person named in a notice of violation does not have a defence by reason that the person

  • (a) exercised due diligence to prevent the violation; or

  • (b) reasonably and honestly believed in the existence of facts that, if true, would exonerate the person.

• Marginal note:Common law principles

  (2) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence under this Act applies in respect of a violation to the extent that it is not inconsistent with this Act.

Marginal note:Burden of proof

120 In every case when the facts of a violation are reviewed by the Minister, he or she must determine, on a balance of probabilities, whether the person named in the notice of violation committed the violation identified in the notice.

Marginal note:Violation by corporate officers, etc.

121 If a person other than an individual commits a violation, any of the person’s directors, officers or agents or mandataries who directed, authorized, assented to, acquiesced in or participated in the commission of the violation is a party to and liable for the violation whether or not the person that actually committed the violation is proceeded against under this Act.

Marginal note:Employees or agents or mandataries

122 A person is liable for a violation that is committed by any employee or agent or mandatary of the person acting in the course of the employee’s employment or the scope of the agent’s or mandatary’s authority, whether or not the employee or agent or mandatary who actually committed the violation is identified or proceeded against under this Act.

Marginal note:Continuing violation

123 A violation that is committed or continued on more than one day constitutes a separate violation in respect of each day on which it is committed or continued.

Other Provisions

Marginal note:Evidence

124 In any proceeding in respect of a violation or a prosecution for an offence, a notice of violation purporting to be issued under this Act is admissible in evidence without proof of the signature or official character of the individual purporting to have signed the notice of violation.

Marginal note:Limitation period

125 No proceedings in respect of a violation may be commenced after the expiry of six months after the day on which the Minister becomes aware of the acts or omissions that constitute the alleged violation.

Marginal note:How act or omission may be proceeded with

126 If an act or omission can be proceeded with either as a violation or as an offence, proceeding in one manner precludes proceeding in the other.

Marginal note:Certification by Minister

127 A document purporting to have been issued by the Minister, certifying the day on which the acts or omissions that constitute the alleged violation became known to the Minister, is admissible in evidence without proof of the signature or official character of the person appearing to have signed the document and, in the absence of evidence to the contrary, is proof that the Minister became aware of the acts or omissions on that day.

PART 11General

Disclosure of Information

Marginal note:Personal information

128 The Minister may, without the consent of the person to whom the personal information relates and without notifying that person, disclose any personal information, as defined in section 3 of the Privacy Act, that is obtained under this Act if the Minister considers that the disclosure is necessary to protect public health or public safety.

Marginal note:Confidential business information

• 129 (1) The Minister may, without the consent of the person to whose business or affairs the information relates and without notifying that person, disclose any confidential business information that is obtained under this Act if the Minister considers that the disclosure is necessary to protect public health or public safety.

• Marginal note:Definition of confidential business information

  (2) In subsection (1), confidential business information in respect of a person to whose business or affairs the information relates, means business information

  • (a) that is not publicly available;

  • (b) in respect of which the person has taken measures that are reasonable in the circumstances to ensure that it remains not publicly available; and

  • (c) that has actual or potential economic value to the person or their competitors because it is not publicly available and its disclosure would result in a material financial loss to the person or a material financial gain to their competitors.