Ontario Opts to Phase in Cannabis Retail Licensing

By: Laura Steiner

The Province of Ontario is taking a phased-in approach to Cannabis retail licensing.  Attorney-General Caroline Mulroney and Finance Minister Vic Fedeli made the announcement in a statement December 13, 2018.

They blame a shortage from federally licensed producers.  “It is the federal government’s responsibility to oversee cannabis production and to provide a viable alternative to the illegal market by ensuring there is a sufficient supply to met consumer demand,” the statement said.

The province’s proposal is to limit the retail locations to 25 licenses to be decided by lottery.  Ontario will be divided into five regions,  with a fixed number awarded to municipalities that have decided to opt-in, and have a population over 50,000.  “We cannot in good conscience issue an unlimited number of licenses to businesses in the face of such shortages, and the federal government’s failure to provide certainty around future supply.

The lottery will take place under the authority of the Alcohol Gaming Commission of Ontario (AGCO).  Expressions of Interest will be accepted online from January 7-9, 2019 with a final draw on January 11, 2019.  The Commission will publish the results within 24 hours.  The successful retailers would open April 1, 2019.

Town Staff Recommend Saying “No” to Cannabis retail Locations

Milton’s town staff have recommended that council “adopt an initial opt-out position” on cannabis retail stores.   They cite the provincial requirement that cannabis retail locations be treated as regular retail locations without specific zoning restrictions.

The Town wants time to look at how other municipalities deal with the process.  The report advises council to reconsider after a period of one year.  Municipalities have the opportunity to opt out until January 22, 2019, and are required to send a copy of their decision to the AGCO.

“For municipalities that do  not opt-out cannabis retail stores could be located wherever retail is permitted,” Ministry of the Attorney General Spokesman Brian Gray said in an email.  The report will presented for consideration at the council meeting Monday December 17, 2018.