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Regulation number	Title
2022, c.5, s.3	Cannabis Retailers Licensing Act

Under section 44 of the Cannabis Retailers Licensing Act, the Lieutenant-Governor in Council makes the following Regulation:

Citation

1This Regulation may be cited as the General Regulation – Cannabis Retailers Licensing Act.

Definitions

2The following definitions apply in this Regulation.

“Act” means the Cannabis Retailers Licensing Act.(Loi)

“Cannabis Management Corporation” means the body corporate established under subsection 3(1) of the Cannabis Management Corporation Act.(Société de gestion du cannabis)

“cannabis producer” means a person authorized to cultivate cannabis under a licence for cultivation or to process cannabis under a licence for processing.(producteur de cannabis)

“Category 1 service provider” means a Category 1 service provider within the meaning of section 9.1 of the Cannabis Management Corporation Act.(fournisseur de services de catégorie 1)

“Class 1 licence” means a licence permitting a person to operate a cannabis retail outlet.(permis de catégorie 1)

“Class 2 licence” means a licence permitting a cannabis producer to operate a cannabis retail outlet.(permis de catégorie 2)

“licence for cultivation” means a licence of the class established under paragraph 8(1)(a) of the Cannabis Regulations (Canada) or of one of the subclasses established under subsection 8(3) of that regulation. (licence de culture)

“licence for processing” means a licence of the class established under paragraph 8(1)(b) of the Cannabis Regulations (Canada) or of one of the subclasses established under subsection 8(4) of that regulation.(licence de transformation)

“organic solvent” means an organic compound that is explosive or highly flammable, including petroleum naphtha and compressed liquid hydrocarbons such as butane, isobutane, propane and propylene.(solvant organique)

“sales area” means an area of a cannabis retail outlet, other than a storage area, where cannabis is present as a result of activities conducted under a licence.(zone de vente)

“sensory display” means a transparent container in a sales area that(présentoir sensoriel)

(a) contains cannabis that is not offered for sale,

(b) is designed for the purpose of providing information to customers about cannabis that is offered for sale,

(c) permits customers to see or smell, but not to touch, the cannabis contained in it, and

(d) is designed to effectively prevent removal from the container of the cannabis contained in it by a person other than an employee.

“storage area” means an area of a cannabis retail outlet where cannabis is stored.(zone d’entreposage)

“unusable” means, in relation to cannabis, that the cannabis(inutilisable)

(a) has been used in a sensory display,

(b) is in a package that has been opened or damaged, or the seal has been broken,

(c) has been recalled, or

(d) is expired.

LICENCES

Classes of licence

3(1)For the purposes of section 4 of the Act, the following classes of cannabis licence are established:

(a) Class 1 licence; and

(b) Class 2 licence.

3(2)Any person may apply for a Class 1 licence.

3(3)Only a cannabis producer who operates in the Province may apply for a Class 2 licence.

Application for licence

4(1)For the purposes of section 4 of the Act, an application for a licence shall be accompanied by the following information and documents:

(a) concerning the applicant, any authorized representative and any associated person,

(i) the person’s name,

(ii) whether the person is an individual, corporation, unincorporated association, partnership or limited partnership,

(iii) the mailing address,

(iv) the telephone number, and

(v) the e-mail address;

(b) concerning the cannabis retail outlet that the applicant intends to operate,

(i) the business name,

(ii) the mailing address,

(iii) the civic address,

(iv) the Service New Brunswick property identification number of the property where the cannabis retail outlet is or will be located,

(v) the telephone number, and

(vi) the intended dates and hours of operation;

(c) documentation indicating that the applicant has sufficient training, knowledge and experience to operate the cannabis retail outlet in accordance with the Act and the regulations;

(d) documentation detailing the training that has been or will be provided to employees, and indicating that the employees have or will have sufficient training, knowledge and experience to operate the cannabis retail outlet in accordance with the Act and the regulations;

(e) a floor plan of the cannabis retail outlet, drawn to scale, showing the sales area and storage area, including the location of sensory displays, if any, and retail counters, entrances, exits and video recording devices;

(f) an operational plan, consisting of a description of the operating procedures and the measures that shall be taken to meet the requirements of the Act and the regulations;

(g) a cannabis disposal plan, consisting of a description of the measures that shall be taken to dispose of cannabis that is unusable;

(h) a letter signed by an appropriate official of the local government as defined in subsection 1(1) of the Local Governance Act where the proposed cannabis retail outlet is situated, stating that it is in conformity with the planning and zoning requirements as provided for in any plans, by-laws or regulations made under the Community Planning Act; and

(i) a statement by the applicant indicating that the applicant agrees to comply with standards and requirements for responsible retail sales established in accordance with the Act, the Cannabis Control Act, the Cannabis Management Corporation Act and the regulations under those Acts.

4(2)The Minister shall not issue a licence to an applicant or reinstate a licence without having received a copy of a report by an inspector, made not more than three weeks before the date of issuance or reinstatement of the licence, indicating that the cannabis retail outlet meets the requirements of the Act and the regulations.

4(3)Subsection (2) does not apply to the renewal of a licence.

Fees

5(1)For the purposes of section 4 of the Act, the application fee for a licence is $540.

5(2)In the case of an initial application for a licence, an application fee required to be paid under subsection (1) is reduced by

(a) 25% for a licence issued between July 1 and September 30, inclusive,

(b) 50% for a licence issued between October 1 and December 31, inclusive, and

(c) 75% for a licence issued between January 1 and March 31, inclusive.

5(3)For the purposes of section 13 of the Act, the annual licence fee is $540, payable on or before March 31 of each year.

5(4)For the purposes of subsection 15(2) of the Act, the fee for an application to renew or reinstate a licence is $540.

Term of approval

6For the purposes of subsection 6(2) of the Act, an approval of a licence application shall be valid for a period of three months.

Licence

7For the purposes of subsection 8(2) of the Act, a licence shall indicate the following information:

(a) the name of the licence holder;

(b) the class of the licence;

(c) the expiry date of the licence;

(d) the terms and conditions, if any, imposed on the licence;

(e) the business name of the cannabis retail outlet to be operated; and

(f) the location of the cannabis retail outlet.

Confirmation of information provided

8 A licence holder who applies for amendment or renewal of a licence, or a person whose licence was revoked who applies for reinstatement of a licence, shall, at the time of application, confirm that all of the information provided and documentation accompanying the initial application or any subsequent application are accurate.

Updating of information

9An applicant or licence holder, as the case may be, shall report to the Minister any change to the information or documentation that accompanied the initial application or any subsequent application no later than five business days before the change.

OPERATION OF CANNABIS RETAIL OUTLET

Requirements

10(1)For the purposes of subsection 12(1) of the Act,

(a) a Class 1 licence is subject to the requirement that the licence holder shall purchase cannabis for resale only from a Category 1 service provider and shall sell only that cannabis in the cannabis retail outlet, and

(b) a Class 2 licence is subject to the requirement that the licence holder shall sell in the cannabis retail outlet only the cannabis that was cultivated or processed by the licence holder.

10(2)For the purposes of section 21 of the Act, a licence holder, in the operation of the cannabis retail outlet, shall meet the following requirements:

(a) cannabis shall be sold through recorded sales and in its original package;

(b) cannabis in a sales area shall be kept behind a sales counter or in containers that prevent anyone other than employees from physically accessing the cannabis;

(c) cannabis shall be stored, distributed, transported and delivered under conditions that maintain its quality;

(d) cannabis that is unusable shall be securely stored in a separate part of the storage area;

(e) a sensory display, if any, shall be

(i) attached or secured to the building or a fixture, and

(ii) closed in a manner that prevents anyone other than employees from physically accessing the cannabis; and

(f) cannabis that is subject to a recall under the Cannabis Act (Canada) shall be accepted for return.

Access

11(1)For the purposes of subsection 22(2) of the Act, a licence holder shall restrict access to a sales area and a storage area to individuals whose presence in the area is required by their duties.

11(2)A licence holder shall ensure that a sales area and a storage area are surrounded by a physical barrier that prevents unauthorized access.

Maximum quantity of cannabis sold

12(1)For the purposes of section 23 of the Act, the prescribed maximum quantity shall be 30 g of dried cannabis or the equivalent amount of another class of cannabis determined in accordance with Schedule 3 of the Cannabis Act (Canada).

12(2)No licence holder shall sell cannabis to a customer at the cannabis retail outlet during a single visit, whether in single or multiple transactions, in an amount that exceeds the maximum quantity referred to in subsection (1).

Prohibited activities

13(1)For the purposes of section 24 of the Act, no licence holder shall, at a cannabis retail outlet or in an area adjacent to or outside of the cannabis retail outlet,

(a) sell an organic solvent,

(b) permit a person other than an employee to sell or distribute cannabis or a cannabis accessory,

(c) permit any person under the age of 19 years to act in any way in connection with the handling, sale or distribution of cannabis or a cannabis accessory to any person,

(d) offer or gift a sample of cannabis to any person,

(e) sell cannabis that is unusable, or

(f) sell cannabis or cannabis accessories by means of a dispensing device.

13(2)Despite paragraph (1)(a), a licence holder may sell cigarette lighters.

Transport and delivery

14For the purposes of section 25 of the Act, a licence holder that transports and delivers cannabis or a cannabis accessory to or from a cannabis retail outlet shall

(a) prepare the package in a manner that ensures the security of its contents, in order that the package

(i) will not open or permit the escape of its contents during handling and transportation, and

(ii) is sealed so that it cannot be opened without the seal being broken, and

(b) take any steps that are necessary to ensure tracking and safekeeping of the package during transportation until it is delivered.

Remote orders

15(1)For the purposes of this section, “remote order” includes an order made by telephone.

15(2)A licence holder may allow a customer to place a remote order and take delivery of the order in person at the cannabis retail outlet.

15(3)No licence holder shall transport for the purpose of delivering cannabis or a cannabis accessory that was purchased by remote order.

15(4)A licence holder shall only accept a remote order through the Internet that is submitted to a website operated by a Category 1 service provider.

Employee records

16(1)For the purposes of subsection 26(3) of the Act, a licence holder shall maintain a record of each employee that includes the following information and documents:

(a) the employee’s name, address and date of birth;

(b) a copy of the criminal record check submitted by the employee in the application for employment; and

(c) a record of the employee’s qualifications and the training the employee has completed.

16(2)A licence holder shall maintain the records for a minimum period of two years after the final date of employment.

Policies and procedures

17A licence holder shall establish policies and operating procedures relating to cannabis and the cannabis retail outlet and shall ensure that

(a) operations are conducted in accordance with the policies and procedures, and

(b) no changes are made to the policies and procedures without an approval under subsection 34(1) of the Act.

DISPLAY, ADVERTISING AND SIGNAGE

Display

18(1)For the purposes of section 27 of the Act, a licence holder may display cannabis or a package or label of cannabis in a manner that does not result in the cannabis, package or label being seen by a person under 19 years of age.

18(2)Despite the Tobacco and Electronic Cigarette Sales Act, a licence holder may display cannabis accessories inside a cannabis retail outlet in a manner that complies with subsection (1).

Advertising

19For the purposes of section 28 of the Act, a licence holder shall advertise a cannabis retail outlet in a manner that does not

(a) associate cannabis with the consumption of tobacco or liquor or show tobacco or liquor in images where a cannabis product is shown,

(b) include health and safety information, unless the information has been approved by Health Canada or the Minister,

(c) include information on the use of cannabis for medical purposes,

(d) encourage or induce risky behaviour, or

(e) encourage or induce consumption of cannabis in a manner that does not conform with the policy on responsible consumption established under section 10 of the Cannabis Management Corporation Act.

Signage

20(1)For the purposes of section 29 of the Act, if a licence is restricted or suspended, the licence holder shall display a sign respecting the restriction or suspension, as the case may be, so that customers can easily see and read the sign for the duration of the restriction or suspension.

20(2)A licence holder shall display a notice at each cash register reminding employees to request proof of age before selling cannabis or a cannabis accessory.

20(3) The notice under subsection (2) may be in the form of a sign or may be displayed on an electronic device as long as employees can easily see and read it.

SECURITY MEASURES

Design

21 A licence holder shall ensure that the cannabis retail outlet is designed in a manner that prevents unauthorized access.

Storage

22(1) A storage area shall be located within an area that satisfies the security measures set out in sections 21, 23 and 24.

22(2)A licence holder shall maintain a record of the identity of every individual that enters or exits a storage area.

Intrusion detection

23(1)A licence holder shall secure a cannabis retail outlet by means of an intrusion detection system that operates at all times and that allows for the detection of any unauthorized access and any tampering with the system.

23(2)If any unauthorized access is detected, the licence holder shall ensure that a document is retained that contains the following information:

(a) the date and time of the unauthorized access; and

(b) a description of the measures taken in response to it and the date and time when they were taken.

Video recording

24(1)A licence holder shall install video recording devices in the cannabis retail outlet that shall detect any

(a) unauthorized access to a sales area or a storage area, or

(b) illicit conduct within the cannabis retail outlet.

24(2)The licence holder shall place the video recording devices in a manner to record

(a) all entrances and exits of the cannabis retail outlet,

(b) all storage areas, and

(c) each cash register.

24(3)A licence holder shall retain a video recording made under subsection (1) for at least 30 days.

24(4)A licence holder shall post signs indicating that video recording is in operation

(a) at the entrances and exits of the cannabis retail outlet, and

(b) within the cannabis retail outlet so that customers can easily see and read the signs.

Report of theft or loss

25A licence holder that becomes aware of a loss of cannabis that cannot be explained on the basis of normally accepted business activities or a theft shall report the loss or theft to the Minister in writing as soon as the circumstances permit.

Disposal of cannabis

26(1)In addition to the requirements prescribed in subsections (2) and (3), a licence holder shall dispose of cannabis in accordance with the cannabis disposal plan that accompanied the application for a licence under section 4.

26(2)The disposal of cannabis shall

(a) be done by the licence holder or an authorized representative in the presence of a witness,

(b) render the cannabis unusable and unrecognizable,

(c) be done in a manner that does not result in any person consuming cannabis or being exposed to cannabis smoke, and

(d) be recorded on a video recording device.

26(3)A licence holder who disposes of cannabis shall maintain a record of the disposal that includes

(a) the name of the persons present,

(b) the date, time and location,

(c) the method used,

(d) the reasons for disposal,

(e) the product name and stock-keeping unit of the cannabis, and

(f) the amount of cannabis.

BOOKS, RECORDS AND DOCUMENTS

Required books, records and documents

27(1)For the purposes of section 36 of the Act, a licence holder shall maintain in the cannabis retail outlet a system for inventory management and sales tracking and reporting which tracks all inventory

(a) on an ongoing basis, and

(b) using a cash register or other device.

27(2)A licence holder shall maintain books, records and documents related to cannabis and cannabis accessories for the recording of

(a) inventory, including inventory of cannabis that is unusable,

(b) contracts for purchase,

(c) purchase transactions,

(d) sales transactions,

(e) if applicable, shipments made,

(f) revenue collected, and

(g) any other information that is required to meet tracking obligations under the Cannabis Act (Canada), its regulations and its orders.

27(3)The books, records and documents referred to in subsection (2) shall be maintained separately from other books, records and documents of the licence holder.

27(4)A licence holder shall provide to the Minister each month an electronic copy of the books, records and documents referred to in subsection (2) for the previous month in the format of reports made under the Cannabis Tracking System Order made under the Cannabis Act (Canada).

Maintaining books, records and documents

28A licence holder shall maintain the books, records and documents referred to in sections 26 and 27 at their head office or main place of business in the Province or at the cannabis retail outlet for a minimum period of seven years.

OFFENCES AND ADMINISTRATIVE PENALTIES

Offences

29(1)A person who knowingly makes a statement, either orally or in writing, or submits a book, record or document under the Act or this Regulation that is incomplete or that contains false or misleading information commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category F offence.

29(2)A person who knowingly fails to provide any information, book, record or document or fails to maintain any book, record or document as required by the Act or this Regulation commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category F offence.

29(3)A person who violates or fails to comply with section 20 commits an offence that is punishable under Part 2 of the Provincial Offences Procedure Act as a category B offence.

29(4)A person who violates or fails to comply with a provision of section 10 or 11, subsection 13(1) or sections 14 to 19 commits an offence that is punishable under Part 2 of the Provincial Offences Procedure Act as a category E offence.

29(5)A person who violates or fails to comply with a provision of sections 21 to 28 commits an offence that is punishable under Part 2 of the Provincial Offences Procedure Act as a category I offence.

Notice of administrative penalty

30(1)For the purposes of section 39 of the Act, the Minister shall impose an administrative penalty by issuing a notice of administrative penalty that includes the following documents and information:

(a) the name of the licence holder required to pay the administrative penalty;

(b) the provision of the Act or the regulations that the licence holder contravened, a copy of the inspection report and the date on which the contravention occurred;

(c) a description of the contravention;

(d) the amount of the administrative penalty and the consequences of failing to respond to the notice;

(e) the time for and manner of payment of the administrative penalty; and

(f) information with respect to the licence holder’s right to a review under section 17 of the Act of a decision related to the imposition of an administrative penalty.

30(2)A notice of administrative penalty shall not be issued more than one year after the Minister first had knowledge of the contravention.

30(3)Within 14 days after issuing a notice of administrative penalty, the Minister shall serve the notice on the licence holder

(a) in the manner in which personal service may be made under the Rules of Court, or

(b) by registered mail to the licence holder’s latest known address.

Amount of administrative penalty

31(1)An administrative penalty payable by a licence holder for non-compliance with subsection 21(2) or sections 22 or 24 to 30 of the Act or a provision referred to in subsection 29(4) may be in an amount

(a) up to $500 for a first contravention,

(b) up to $1,000 for a second contravention, and

(c) up to $2,000 for a third or subsequent contravention.

31(2)An administrative penalty payable by a licence holder for non-compliance with sections 23 or 34 to 36 of the Act or a provision referred to in subsection 29(5) may be in an amount

(a) up to $1,000 for a first contravention,

(b) up to $2,000 for a second contravention, and

(c) up to $5,000 for a third or subsequent contravention.

31(3)When a contravention of the Act or the regulations continues for more than one day, the amount of the administrative penalty payable shall be the product of

(a) the penalty imposed under subsection (1) or (2), and

(b) the number of days that the contravention continues.

Payment of administrative penalty

32(1)A licence holder who receives a notice of administrative penalty shall pay the administrative penalty set out in a notice within 30 days after being served with the notice.

32(2)An administrative penalty is payable to the Minister of Finance and Treasury Board.

Commencement

33This Regulation comes into force on September 1, 2022.

N.B. This Regulation is consolidated to June 30, 2022.

2022-40 - General

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