Ontario Regulation 209/24, enacted under the Cannabis Licence Act, 2018, introduces significant amendments to the regulatory framework governing cannabis retail operations in Ontario. This regulation addresses various aspects of retail operations, with a focus on compliance, authorization transfers, and cannabis sales between licensed retailers. Its primary goals are to improve tax compliance requirements, clarify operational conditions, and streamline the processes related to the transfer and sale of cannabis among authorized retailers.

The regulation revokes Section 6 of Ontario Regulation 468/18 and introduces stringent eligibility criteria for obtaining a retail operator licence. Applicants must now submit an attestation confirming their tax compliance status with the Ministry of Finance, affirming that they are not in default on tax filings or payments to the Government of Ontario.

Amendments to Section 9 clarify the conditions under which retail spaces can be shared. Specifically, shared spaces with other commercial establishments may be accessed by employees of those establishments and authorized personnel, provided that entryways to the cannabis retail area are secured to prevent unauthorized access.

New provisions regarding the transfer of retail store authorizations have also been introduced. The Registrar can now approve such transfers under specific conditions: the receiving party must hold a valid retail operator licence and meet all application requirements, and the transfer must not cause either party to exceed the maximum number of authorizations permitted by regulation. Additionally, no outstanding monetary penalties should be associated with the current authorization holder. If a transfer request is denied, the Registrar must issue a proposal detailing the reasons for refusal, thereby ensuring transparency in the transfer process.

The regulation establishes new guidelines for cannabis sales between authorized retailers. A holder of a retail store authorization may sell cannabis to another authorized holder under strict conditions, including that the cannabis must be part of the inventory of a store requesting to cancel its authorization. Furthermore, neither store authorization may be under suspension, nor can there be any pending proposals for revocation. The sale is limited to one authorized retailer at a time, and the seller must provide written notice to the Registrar containing necessary details.

By reinforcing tax compliance, establishing clearer operational guidelines, and streamlining transfer and sale processes, this regulation aims to create a more accountable and efficient cannabis retail environment. The amendments reflect the Ontario government’s commitment to ensuring that cannabis retail operations adhere to both financial and operational standards while promoting a regulated and responsible cannabis market.

Ontario (209/24) June 15, 2024