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Chapter	Title
2022-40	General

NOTE: Enacted by section 3 of chapter 5 of the Acts of New Brunswick, 2022.

Definitions

1The following definitions apply in this Act.

“associated person” means a person, whether an individual or a person other than an individual, who(personne associée)

(a) has a beneficial interest in the business of the other person,

(b) exercises control, either directly or indirectly, over the business of the other person, or

(c) has provided financing, either directly or indirectly, to the business of the other person.

“cannabis” means cannabis as defined in the Cannabis Management Corporation Act.(cannabis)

“cannabis accessory” means cannabis accessory as defined in the Cannabis Management Corporation Act.(accessoire)

“cannabis retail outlet” means cannabis retail outlet as defined in the Cannabis Control Act.(point de vente au détail du cannabis)

“designated legislation” means (législation désignée)

(a) an Act of the Legislature of the Province, an Act of any other province or territory of Canada, an Act of the Parliament of Canada or any regulation or statutory instrument under those Acts relating to cannabis,

(b) a provision of the Controlled Drugs and Substances Act (Canada) relating to trafficking,

(c) a provision of the Food and Drugs Act (Canada) relating to drugs,

(d) a provision of the Excise Tax Act (Canada) relating to cannabis or tobacco,

(e) a provision of the Customs Act (Canada) relating to cannabis or tobacco,

(f) a provision of the Liquor Control Act relating to licences,

(g) a provision of the Gaming Control Act relating to the operation of a gaming premises,

(h) a provision of the Criminal Code (Canada) relating to an offence punishable by imprisonment for one year or more,

(i) any other Act, regulation or statutory instrument designated by regulation, or

(j) any regulation or rule made under the Acts referred to in paragraphs (b) to (g).

“distribute” means distribute as defined in the Cannabis Management Corporation Act.(distribuer)

“employee” means a person engaged in activities relating to the retail sale of cannabis at a cannabis retail outlet, including a manager, but does not include a common carrier that transports or delivers cannabis.(employé)

“licence” means a cannabis retailer’s licence issued under section 8 permitting a person to operate a cannabis retail outlet.(permis)

“Minister” means(ministre)

(a) subject to paragraph (b), the Minister of Health and includes any person designated by the Minister of Health to act on that Minister’s behalf, and

(b) in respect of specific provisions of this Act and the regulations the administration of which is prescribed under the Executive Council Act as a duty of a Minister other than the Minister of Health, that other Minister and any person designated by that other Minister to act on that other Minister’s behalf.

“remote order” means an order for the purchase of cannabis that has been submitted on the Internet or by another method prescribed by regulation.(commande à distance)

“sell” means sell as defined in the Cannabis Management Corporation Act.(vente)

“service agreement” means service agreement as defined in the Cannabis Management Corporation Act.(convention de services)

Application

2This Act does not apply to an activity

(a) conducted by the New Brunswick Liquor Corporation or its subsidiaries relating to cannabis, or

(b) specified in subsection 3(2) of the Cannabis Control Act.

CANNABIS RETAILER’S LICENCE

Application

Eligibility

3(1)Subject to subsections (2) and (3), a person may apply to the Minister for a licence.

3(2)The Minister may establish conditions to be met and procedures to be followed by a person before the person submits an application for a licence.

3(3)A person is eligible to apply for or to hold a licence under this Act if the person or an associated person

(a) in the case of an individual, is at least 19 years of age,

(b) has not been convicted within the previous five years of an offence under designated legislation,

(c) is not or has never been a member of a criminal organization as defined in subsection 467.1(1) of the Criminal Code (Canada), and is not or has never been involved in and does not contribute or has never contributed to, the activities of that type of organization, and

(d) meets the other eligibility requirements, if any, prescribed by regulation.

Application for licence

4An application for a licence of any class established by regulation shall be made to the Minister and shall be accompanied by the prescribed fees and the information and documents prescribed by regulation.

Background investigations

5(1)The Minister may conduct background investigations of an applicant and any associated person.

5(2)A background investigation conducted under subsection (1) may include

(a) carrying out criminal record checks of the applicant and any associated person,

(b) inquiring into the financial history of the applicant and any associated person,

(c) inquiring into the applicant’s sources of financing, and

(d) investigating the background of the owner or occupier of any premises in which the applicant intends to operate a cannabis retail outlet.

5(3)The Minister may require the reasonable costs incurred in conducting a background investigation to be paid by the applicant.

Approval of a licence application

6(1) The Minister may, on receiving an application under section 4, approve the application for a licence if the applicant

(a) has complied with the conditions and procedures that the Minister has established under subsection 3(2), or

(b) submits to the Minister a plan on a form provided by the Minister that states the measures that have been taken or will be taken to comply with the conditions and procedures.

6(2)Subject to subsection (3), an approval is valid for the period of time prescribed by regulation.

6(3)The Minister may extend the period of time referred to in subsection (2) if the Minister considers it appropriate.

Refusal of application for licence

7The Minister may refuse to approve an application for a licence if

(a) the applicant is ineligible or fails to comply with any conditions or procedures established under subsection 3(2),

(b) the applicant fails to provide any information or document prescribed by regulation,

(c) the applicant has made a false statement in applying for the licence,

(d) the Minister is not satisfied that the applicant is capable of operating a cannabis retail outlet in accordance with this Act and the regulations,

(e) it is not in the public interest, or

(f) the other circumstances prescribed by regulation, if any, exist.

Licence

Issuance of licence

8(1)The Minister shall issue a licence to an applicant who has received an approval under section 6 and who has entered into a service agreement.

8(2)A licence shall indicate the information prescribed by regulation.

8(3)A licence holder shall display the licence in the cannabis retail outlet so that customers can easily see and read the licence.

Term of licence

9(1)When a licence is issued, the Minister shall set the term of the licence.

9(2)The Minister may set different terms for licences and classes of licences.

9(3)Despite subsections (1) and (2), the term of a licence shall not exceed five years.

9(4)A licence is effective on the date specified as the effective date of the service agreement referred to in subsection 8(1).

9(5)Despite subsection (1), a licence is valid only while the service agreement referred to in subsection 8(1) is in effect.

Licence non-assignable

10A licence holder shall not assign or transfer to any person any of the rights granted under a licence or this Act or the regulations.

Restriction on issuance of licence

11The Minister shall not issue, renew, reinstate or amend a licence unless

(a) the applicant is or will be the owner of the premises or has or will have a right to occupy the premises where the applicant intends to operate the cannabis retail outlet, and

(b) the Minister is satisfied that the premises will comply with all applicable local government zoning requirements and that the applicant has obtained or will obtain all required licences, permits and approvals.

Requirements, terms and conditions of licence

12(1)A licence shall be subject to

(a) the requirements established by regulation, and

(b) the terms and conditions imposed by the Minister, if any.

12(2)The Minister may, at any time after a licence has been issued, rescind or vary a term or condition referred to in subsection (1) or impose other terms or conditions.

12(3)A licence holder shall comply with the requirements and the terms and conditions of the licence.

12(4)If there is a conflict between a requirement prescribed by regulation and any term or condition imposed by the Minister, the requirement prevails.

12(5)If there is a conflict between a requirement prescribed by regulation or a term or condition imposed by the Minister and the service agreement referred to in subsection 8(1), the requirement, term or condition prevails.

Annual licence fee

13A licence holder shall pay an annual licence fee in the amount and on the date prescribed by regulation.

Restriction, Suspension or Revocation

Restriction, suspension or revocation of licence

14(1)The Minister may restrict or suspend a licence for a period specified by the Minister or revoke a licence if

(a) the Minister is not satisfied that the licence holder is capable of operating the cannabis retail outlet in accordance with this Act and the regulations,

(b) the Minister has reasonable grounds to believe that the licence holder has knowingly made a false statement in the application or the accompanying documents or in any other book, record or document required to be maintained under this Act or the regulations,

(c) after an inspection under section 37 or reasonable inquiry, the Minister is satisfied that the licence holder has violated or failed to comply with a term or condition of the licence, a provision of this Act or the regulations or a provision of designated legislation,

(d) the licence holder does not, to the satisfaction of the Minister, show due diligence in fulfilling the terms and conditions to which the licence is subject and in complying with the provisions of this Act and the regulations,

(e) the Minister is satisfied that the licence holder has breached a term or condition of the service agreement referred to in subsection 8(1),

(f) the licence holder ceases to have a right to occupy the premises of the cannabis retail outlet,

(g) the licence holder fails to comply with any applicable federal or provincial law or local government by-law, or

(h) the circumstances prescribed by regulation, if any, exist.

14(2)The Minister may revoke a licence on the voluntary surrender of the licence by the licence holder.

Application to amend, renew or reinstate a licence

15(1)A licence holder may apply to the Minister to amend or renew a licence or a person whose licence was revoked may apply to reinstate a licence.

15(2)An application for the amendment, renewal or reinstatement of a licence shall be accompanied by the prescribed fees, if any, and the information and documents the Minister requires.

15(3)The Minister may amend, renew or reinstate a licence on any grounds the Minister considers appropriate.

15(4)Section 7 applies with the necessary modifications to the amendment, renewal or reinstatement of a licence.

Unsold or undistributed cannabis

16If a licence is not renewed, is revoked or is not reinstated, the person who held the licence shall comply with the requirements specified by the Minister respecting any cannabis left unsold or undistributed as a result.

Review of Decisions

Persons entitled to review

17(1)An applicant may request a review of the Minister’s decision to refuse to approve an application for a licence.

17(2)A licence holder may request a review of the Minister’s decision relating to the amendment, restriction or suspension of a licence or relating to the imposition of an administrative penalty.

17(3)A person who held a licence may request a review of the Minister’s decision to refuse to renew, to revoke or to refuse to reinstate a licence.

Request for review

18A request for a review shall be submitted to the Minister in writing and shall be made within 10 days after the person receives notice of the decision.

Decision not stayed

19A request for a review does not stay the decision under review unless the Minister indicates otherwise.

Review of decision

20(1)The Minister shall review the decision and, on completion of the review, may do any of the following:

(a) confirm the decision;

(b) vary the decision; or

(c) rescind the decision.

20(2)Before the Minister completes the review of a decision, the person who requested the review is entitled to make oral or written representations to the Minister.

20(3)The Minister shall complete the review of a decision within 30 days after the request for the review is received by the Minister.

OPERATION OF
CANNABIS RETAIL OUTLETS

Purchase, Sale and Distribution

Purchase, sale and distribution

21(1)Subject to subsection (2) and the regulations, a licence authorizes its holder, for the purpose of retail sales, to purchase for resale, possess, store, sell and distribute cannabis and cannabis accessories in accordance with this Act, the Cannabis Control Act and the regulations under those Acts and any requirements or policies established by the Cannabis Management Corporation.

21(2)No licence holder shall sell or distribute cannabis or a cannabis accessory to a person who is under 19 years of age.

Access to cannabis retail outlet

22(1)A licence holder shall not permit a person under 19 years of age to have access to a cannabis retail outlet, including a storage area.

22(2)A licence holder shall prohibit or restrict access to areas within the cannabis retail outlet in accordance with the regulations.

Requirements of cannabis sold

23Subject to the regulations, a licence holder shall sell and distribute only cannabis that meets the following requirements:

(a) the cannabis is authorized for sale under the Cannabis Management Corporation Act;

(b) the cannabis is in a quantity prescribed by regulation; and

(c) the cannabis is packaged and labelled in accordance with the Cannabis Act (Canada).

Prohibited activities

24No licence holder shall conduct an activity that is prohibited by regulation.

Transport and delivery

25Despite section 7 of the Cannabis Control Act, no licence holder shall, except in accordance with the regulations,

(a) transport or deliver cannabis or cannabis accessories to or from a cannabis retail outlet, or

(b) sell or distribute cannabis or a cannabis accessory by remote order.

Employees

26(1)A person who applies for employment at a cannabis retail outlet shall submit to a licence holder the results of a criminal record check carried out on the person dated not more than three months before the date of the application.

26(2)A licence holder shall not employ or continue to employ a person in a cannabis retail outlet if

(a) the person has been convicted of an offence under designated legislation,

(b) the person does not follow the policies and procedures that the licence holder is required to establish under the regulations, or

(c) the person does not meet the requirements approved by the Minister in regard to training and qualifications.

26(3)A licence holder shall maintain a record of each employee that includes the information and documents prescribed by regulation.

Communications

Display of cannabis

27 A licence holder shall display cannabis, or any package or label of cannabis, in accordance with the regulations.

Advertising

28 A licence holder shall advertise the cannabis retail outlet in accordance with the regulations.

Posting of signs

29 A licence holder or a person who held a licence, as the case may be, shall display signs in the cannabis retail outlet that contain the information prescribed by regulation, and in the manner, place, form or size, if any, that are prescribed by regulation.

Written materials

30A licence holder shall distribute or display in the cannabis retail outlet or on its website any written materials approved or prepared by the Minister.

Measures to Prevent Diversion

Diversion

31A licence holder shall take the measures prescribed by regulation to reduce the risk that cannabis in its possession will be diverted to an illicit market or activity.

Storage

32A licence holder shall store cannabis in the manner prescribed by regulation.

Security measures

33A licence holder shall take the security measures, including online security measures, prescribed by regulation.

Approval of changes

34(1)A licence holder shall not, without the prior written approval of the Minister,

(a) alter or extend the facility, building or premises of a cannabis retail outlet,

(b) change the operating procedures of the cannabis retail outlet, or

(c) store, sell or distribute cannabis or cannabis accessories at a location other than the cannabis retail outlet.

34(2)An application for approval shall be made on a form provided by the Minister and shall be accompanied by the information and documents the Minister requires.

34(3) The Minister may make an approval subject to the terms and conditions that the Minister considers advisable.

Disposal of cannabis

35A licence holder or a person who held a licence, as the case may be, shall dispose of cannabis in accordance with the directions of the Minister or an inspector, and the requirements prescribed by regulation.

Recording of Activities

Books, records and documents

36(1)A licence holder shall keep the books, records and documents that are necessary for the proper recording of their activities with respect to the cannabis retail outlet and shall keep any other books, records and documents that are required under the regulations.

36(2)A licence holder shall keep the books, records and documents in the Province at a safe location and in a durable form.

36(3)A licence holder shall retain the books, records and documents for the period prescribed by regulation.

36(4)A licence holder shall, at the request of the Minister, deliver to the Minister any of the books, records and documents that the licence holder is required to keep under this Act or the regulations.

INSPECTIONS, OFFENCES AND PENALTIES

Inspectors

37(1)The Minister may appoint or designate inspectors for the purposes of this Act.

37(2)The Minister shall issue to every inspector a certificate of appointment or designation.

37(3)An inspector, in the execution of their duties under this Act or the regulations, shall produce their certificate on request.

37(4)For the purpose of ensuring compliance with this Act and the regulations, an inspector may, at any reasonable time,

(a) enter and inspect any place, area or vehicle to which this Act applies except a private dwelling and make any examinations or inquiries and conduct any tests that the inspector considers necessary or advisable,

(b) be accompanied and assisted by any person who, in the opinion of the inspector, has special knowledge or expertise,

(c) make inquiries of any person who is or was in a place, area or vehicle to which this Act applies,

(d) despite any other provision of this Act, the Cannabis Control Act or the regulations under that Act, enlist the aid of persons who are at least 18 years of age to make test purchases of cannabis or cannabis accessories,

(e) require the production of books, records or documents at a place, area or vehicle to which this Act applies and may inspect, examine, copy or remove them,

(f) require the production of a valid government-issued identification document, bearing a photograph of the person offering it, of any person who is or was in a place, area or vehicle where any activity is prohibited under this Act,

(g) exercise any other powers and perform any other duties that are prescribed by regulation, and

(h) exercise the powers and perform the duties that are incidental to the powers set out in paragraphs (a) to (f).

37(5)An inspector may apply to a judge for an entry warrant under the Entry Warrants Act before or after attempting to effect entry under paragraph (4)(a).

37(6)No person shall obstruct, interfere with or fail to cooperate with an inspector in the execution of the inspector’s duties under this Act.

37(7)An inspector who removes books, records or documents under paragraph (4)(e) shall give a receipt for the items and return them as soon as possible after the making of copies or extracts.

Offences

38(1)A person who violates or fails to comply with a provision of this Act that is listed in Column 1 of Schedule A commits an offence.

38(2)For the purposes of Part 2 of the Provincial Offences Procedure Act, each offence listed in Column 1 of Schedule A is punishable as an offence of the category listed beside it in Column 2 of Schedule A.

38(3)A prosecution for an offence under this Act shall be commenced within one year after the date on which the offence was, or is alleged to have been, committed.

38(4)Subject to subsection (5), a person who violates or fails to comply with a provision of the regulations commits an offence.

38(5)For the purposes of Part 2 of the Provincial Offences Procedure Act, a person who violates or fails to comply with a provision of the regulations in respect of which a category has been prescribed by regulation commits an offence of the category prescribed by regulation.

38(6)If an offence under this Act or the regulations continues for more than one day,

(a) the minimum fine that may be imposed is the minimum fine set by the Provincial Offences Procedure Act multiplied by the number of days during which the offence continues, and

(b) the maximum fine that may be imposed is the maximum fine set by the Provincial Offences Procedure Act multiplied by the number of days during which the offence continues.

Administrative penalties

39(1) Subject to the regulations and in accordance with the regulations, if the Minister is satisfied that a licence holder has violated or failed to comply with this Act or the regulations, the Minister may impose an administrative penalty on the licence holder by issuing a notice of administrative penalty.

39(2)A licence holder referred to in subsection (1) who pays the administrative penalty shall be deemed to have contravened the provision of this Act or the regulations in respect of which the payment was made and shall not be charged with an offence in respect of the same incident that gave rise to the administrative penalty.

39(3)If a licence holder referred to in subsection (1), after receiving the notice, does not pay the administrative penalty within the period of time prescribed by regulation, the licence holder may be charged with an offence in respect of the same incident that gave rise to the administrative penalty.

39(4)Subject to subsection (3), a licence holder charged with an offence under this Act or the regulations is not liable to an administrative penalty in respect of the same incident that gave rise to the charge.

39(5)The Province may sue for and recover an administrative penalty in an action in any court as if the amount were a debt.

GENERAL

Administration

40The Minister is responsible for the administration of this Act and may designate one or more persons to act on the Minister’s behalf.

Proof of age

41For the purposes of this Act and the regulations, proof of age shall be provided or ascertained in accordance with the Cannabis Control Act and the regulations under that Act, and section 26 of that Act applies with the necessary modifications to a related offence.

Contraventions

42For the purposes of sections 21 to 36, a contravention by an employee or agent of a licence holder or a person who is acting under a contract with the licence holder is deemed to be a contravention by the licence holder.

Immunity

43Despite section 28 of the Cannabis Control Act, a licence holder or an officer, director, employee or agent of a licence holder is not relieved of any liability to which any of them would be subject in respect of an action for damages arising from a negligent act or omission of the person in the operation of a cannabis retail outlet.

Regulations

44(1)The Lieutenant-Governor in Council may make regulations:

(a) designating Acts, regulations and statutory instruments for the purposes of the definition “designated legislation”;

(b) prescribing methods for the purposes of the definition “remote order”;

(c) establishing classes of licences for the purposes of section 4;

(d) imposing different requirements on persons, licence holders, licences or cannabis retail outlets based on the class of the licence;

(e) governing the application for and issuance of licences, including

(i) eligibility requirements to be met by applicants for a licence for the purposes of paragraph 3(3)(d),

(ii) the information, documents and fees that accompany an application, for the purposes of section 4,

(iii) the period of time that an approval is valid for the purposes of subsection 6(2),

(iv) circumstances for the purposes of paragraph 7(f),

(v) information to be indicated in licences for the purposes of subsection 8(2),

(vi) requirements to which a licence is subject for the purposes of paragraph 12(1)(a),

(vii) annual licence fees and the date they shall be paid for the purposes of section 13,

(viii) circumstances for the purposes of paragraph 14(1)(h),

(ix) application fees for an amendment, renewal or reinstatement of a licence for the purposes of subsection 15(2);

(f) governing the operation of a cannabis retail outlet, including

(i) regulating the sale of cannabis, cannabis accessories and other products in a cannabis retail outlet,

(ii) regulating activities conducted by a licence holder for the purposes of section 21,

(iii) governing access to areas within a cannabis retail outlet for the purposes of subsection 22(2),

(iv) prescribing the quantity of cannabis that may be sold for the purposes of section 23,

(v) prohibiting activities for the purposes of section 24,

(vi) governing transportation and delivery of cannabis or cannabis accessories to or from a cannabis retail outlet for the purposes of paragraph 25(a),

(vii) governing remote orders for the purposes of paragraph 25(b),

(viii) requiring policies and procedures to be established by the licence holder for the purposes of paragraph 26(2)(b),

(ix) requiring and governing employee records to be kept by a licence holder for the purposes of subsection 26(3),

(x) governing the display of cannabis, cannabis packaging or labels of cannabis for the purposes of section 27,

(xi) governing the advertising of a cannabis retail outlet for the purposes of section 28,

(xii) prescribing the information to be contained in signs, or the manner, place, form or size of signs for the purposes of section 29;

(g) prescribing measures to prevent diversion, including

(i) the manner in which cannabis shall be stored for the purposes of section 32,

(ii) security measures, including online security measures, for the purposes of section 33,

(iii) requirements for the disposal of cannabis for the purposes of section 35;

(h) requiring and governing the books, records and documents to be kept by a licence holder for the purposes of section 36;

(i) prescribing powers and duties of inspectors for the purposes of paragraph 37(4)(g);

(j) prescribing provisions of the regulations the violation of which or the failure to comply with constitutes an offence;

(k) with respect to offences under the regulations, prescribing the categories of offences for the purposes of Part 2 of the Provincial Offences Procedure Act;

(l) governing the imposition, payment and enforcement of administrative penalties for the purposes of section 39, including

(i) prescribing provisions of this Act or the regulations for which a notice of administrative penalty may be issued,

(ii) prescribing the form or content of the notice of administrative penalty,

(iii) prescribing or determining the amounts that may be imposed as administrative penalties, including minimum and maximum amounts and prescribing the terms of payment, and

(iv) varying the amount of an administrative penalty prescribed or determined under subparagraph (iii) according to the nature or frequency of the violation or failure to comply, and whether the person in violation or in non-compliance is an individual or a person other than an individual;

(m) authorizing the Minister to provide forms for the purposes of this Act and the regulations;

(n) respecting forms, reports and other information required under this Act or the regulations, including their form and content and the time and manner in which they are required to be given;

(o) defining any word or expression used but not defined in this Act, for the purposes of this Act, the regulations or both;

(p) respecting any other matter that may be necessary for the proper administration of this Act.

44(2)A regulation authorized by this section may incorporate by reference, in whole or in part, any codes, standards, procedures or guidelines as they are amended from time to time before or after the making of the regulation or as they read at a fixed time and may require compliance with that code, standard, procedure or guideline.

44(3)Regulations may vary for or be made in respect of different persons, licences, matters, activities or things or different classes or categories of persons, licences, matters, activities or things.

44(4)A regulation authorized by this section may be general or particular in its application, may be limited as to time or place or both, and may exclude any place from the application of the regulation.

Schedule A

Column 1		Column 2
Section		Category of Offence
	8(3)..............		B
	10..............		D
	21(2)..............		E
	22(1)..............		E
	22(2)..............		E
	23(a)..............		I
	23(b)..............		I
	23(c)..............		I
	24..............		E
	26(2)..............		E
	26(3)..............		E
	34(1)..............		I
	35..............		I
	36(1)..............		I
	36(2)..............		I
	36(3)..............		I
	36(4)..............		I
	37(6)..............		E

N.B. This Act comes into force on a day to be fixed by proclamation.

N.B. This Act was proclaimed and came into force September 1, 2022.

N.B. This Act is consolidated to September 1, 2022.

2022, c.5, s.3 - Cannabis Retailers Licensing Act

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