Cannabis Regulations (SOR/2018-144)

Marginal note:Revocation — other circumstances

31 For the purpose of paragraph 65(h) of the Act, other circumstances for the revocation of a licence are the following:

• (a) the holder of the licence has requested, in writing, the revocation;

• (b) the licence has been suspended and not reinstated because the reasons for the suspension still exist or the holder of the licence has not demonstrated to the Minister that the suspension is unfounded;

• (c) since the issuance of the licence, a security clearance in respect of the licence has been refused;

• (d) the holder of the licence no longer holds the cannabis licence issued under subsection 14(1.1) of the Excise Act, 2001, if it is required;

• (e) in the case of a licence for processing, the holder has, since its issuance, been convicted of an offence under the Safe Food for Canadians Act or an Act referred to in subsection 374(2) of the Safe Food for Canadians Regulations; and

• (f) in respect of a licence for research that authorizes activities in relation to non-therapeutic research on cannabis, the Minister has reasonable grounds to believe that

  • (i) the use of the cannabis in the conduct of the non-therapeutic research on cannabis presents a risk of injury to the health of a human participant or other person that cannot reasonably be mitigated, or

  • (ii) the objectives of the non-therapeutic research on cannabis will not be achieved.

Changes Relating to Licence

Marginal note:Amendment

32 A holder of a licence must submit an application for an amendment to the licence if they propose to make any of the following changes:

• (a) a change to the name of the holder of the licence;

• (b) a change to the address of the site or building within the site where the activity is authorized; or

• (c) a change to the authorized activity at the site or the authorized activity that may be conducted at each building within the site.

Marginal note:Minister’s approval

• 33 (1) A holder of a licence that proposes to make a change to the site plan that would require physical security measures to be carried out in order to comply with Part 4 must obtain the Minister’s approval before making the change.

• Marginal note:Application — content

  (2) The holder of a licence must, for the purpose of obtaining the Minister’s approval, submit an application that includes the following:

  • (a) a description of the change;

  • (b) the proposed site plan; and

  • (c) a declaration, signed and dated by the responsible person referred to in section 37, indicating that all information provided in support of the application is correct and complete to the best of their knowledge.

• Marginal note:Additional information

  (3) The Minister may, on receiving an application for approval, require the submission of any additional information that pertains to the information contained in the application and that is necessary for the Minister to consider the application.

Marginal note:Notification — various changes

• 34 (1) A holder of a licence must notify the Minister of any of the following changes within five days after the change occurs:

  • (a) a change to the mailing address, telephone number, email address or facsimile number of the holder;

  • (b) a change to the site plan, other than a change referred to in subsection 33(1);

  • (c) the replacement of an individual who must hold a security clearance referred to in any of paragraphs 50(b) to (g), (i) and (j) or the addition of another such individual, other than an individual who is designated as an alternate for the position of quality assurance person referred to in section 19; and

  • (d) in the case of a holder of a licence for cultivation, a licence for processing or a licence for sale, a change to the organizational security plan.

• Marginal note:Notification — content

  (2) The notification must include the following:

  • (a) a description of the change; and

  • (b) a declaration, signed and dated by the responsible person referred to in section 37, indicating that all information provided in support of the notification is correct and complete to the best of their knowledge.

• Marginal note:Additional information

  (3) In the case of a change referred to in paragraph (1)(c), the notification must also include the following:

  • (a) the name and date of birth of the individual who replaced an individual referred to in any of paragraphs 50(b) to (g), (i) and (j) or who was added as another such individual; and

  • (b) if the individual replaced a director or officer referred to in subparagraph 50(b)(i) or (c)(i) or was added as such a director or officer, the certificate of incorporation or other amended incorporating instrument of the corporation or cooperative.

Marginal note:Notification to local authorities

• 35 (1) A holder of a licence for cultivation, a licence for processing or a licence for sale that authorizes the possession of cannabis must, within 30 days after the issuance, amendment, suspension, reinstatement or revocation of the licence, provide a written notice to the local authorities referred to in paragraphs 7(1)(a) to (c) in the area in which the site set out in the licence is located and provide a copy of the notice to the Minister.

• Marginal note:Content of notice

  (2) The notice must contain the following information:

  • (a) the name of the holder of the licence and the address of the site set out in the licence; and

  • (b) a description of the applicable event referred to in subsection (1) and its effective date and, in the case of an amendment to the licence, details of the amendment.

• Marginal note:Senior official

  (3) The notice must be addressed to a senior official of the local authority to which it is provided.

Marginal note:Cessation of activities

• 36 (1) A holder of a licence that intends to cease conducting all the activities authorized by the licence — whether before or on the date of expiry of the licence — must provide the Minister with a written notice to that effect at least 30 days before the day on which those activities cease.

• Marginal note:Content of notice

  (2) The notice must be signed and dated by the responsible person referred to in section 37 and contain the following information:

  • (a) the date on which activities are expected to cease;

  • (b) a description of the manner in which any cannabis remaining at the site as of the date referred to in paragraph (a) will be disposed of by the holder of the licence, including

    • (i) if the cannabis will be sold or distributed, in whole or in part, the name and address of the person to which it will be sold or distributed, and

    • (ii) if it will be destroyed, in whole or in part, the day on which and the location at which the destruction is to take place;

  • (c) the address of the location at which the holder’s records, reports, electronic data and other documents that are required to be retained under the Act by the holder will be retained after activities have ceased; and

  • (d) the name, address, telephone number and, if applicable, facsimile number and email address of a person from which the Minister may obtain further information after activities have ceased.

• Marginal note:Update

  (3) After having ceased the activities, the holder must submit to the Minister an update of the information referred to in paragraphs (2)(a) to (d), if it differs from the information submitted in the notice under subsection (1). The update must be signed and dated by the responsible person referred to in section 37.

General Requirements Relating to Authorized Activities

Marginal note:Responsible person

• 37 (1) A holder of a licence must retain the services of one individual as the responsible person who has the authority to bind the holder.

• Marginal note:Responsibilities and knowledge

  (2) The responsible person is responsible for the activities conducted under the licence and must have sufficient knowledge of the provisions of the Act and these Regulations that apply to the holder of the licence.

• Marginal note:Alternate

  (3) A holder of a licence may designate one individual as the alternate responsible person who is qualified to replace the responsible person.

Marginal note:Head of security

• 38 (1) A holder of a licence, other than a licence for analytical testing or a licence for research, must retain the services of one individual as the head of security who is responsible for

  • (a) ensuring that the applicable physical security measures set out in Part 4 are complied with; and

  • (b) the organizational security plan of the holder.

• Marginal note:Alternate

  (2) A holder of a licence, other than a licence for analytical testing or a licence for research, may designate one individual as the alternate head of security who is qualified to replace the head of security.

Marginal note:Approved site

• 39 (1) A holder of a licence must only conduct activities that are authorized by the licence at the site and, if applicable, the building within the site, set out in the licence.

• Marginal note:Non-application

  (2) Subsection (1) does not apply to the possession of cannabis for the purpose of antimicrobial treatment or destruction or the distribution of cannabis.

Marginal note:Dwelling-house

40 A holder of a licence must not conduct any activity that is authorized by the licence at a dwelling-house.

Marginal note:Outdoor activities

41 A holder of a licence must not produce cannabis — other than obtain cannabis by cultivating, propagating or harvesting it — or test, store, package or label cannabis outdoors.

Marginal note:Antimicrobial treatment

• 42 (1) A holder of a licence, other than a licence for analytical testing, may conduct antimicrobial treatment of cannabis at a location other than the site set out in the licence only if

  • (a) the holder ensures that the cannabis that is at the location is, at all times, in the presence of at least one individual referred to in paragraph 43(2)(a), or in the case of a holder of a licence for research, an individual referred to in paragraph 43(2)(b); and

  • (b) the cannabis is subsequently returned to the site set out in the licence or distributed in accordance with these Regulations.

• Marginal note:Irradiation of edible cannabis

  (2) For greater certainty, in the case of the irradiation of edible cannabis by a holder of a licence for processing, the requirements set out in subsection (1) apply in addition to the conditions set out in paragraphs 102.6(a) and (b).

Marginal note:Destruction

• 43 (1) A holder of a licence is authorized to destroy cannabis only

  • (a) in accordance with a method that

    • (i) complies with all federal, provincial and municipal environmental protection legislation applicable to the location where it is to be destroyed, and

    • (ii) does not result in any individual being exposed to cannabis smoke or cannabis vapour;

  • (b) in the presence of at least two individuals who are qualified to witness the destruction and, except in the case of a holder of a licence for analytical testing or a licence for research, one of whom is an individual referred to in paragraph (2)(a); and

  • (c) in the case where the cannabis is destroyed at a location other than the site set out in the licence, the holder of the licence ensures that the cannabis that is at the location is, at all times, in the presence of at least one individual referred to in paragraph (2)(a) or, in the case of a holder of a licence for analytical testing or a licence for research, an individual referred to in paragraph (2)(b).

• Marginal note:Witness to destruction

  (2) The following individuals are qualified to witness the destruction of cannabis:

  • (a) an individual who holds a security clearance; and

  • (b) an employee of the holder of the licence.

Marginal note:Security clearance holder

44 A holder of a licence, other than a holder of a licence for analytical testing, a licence for research, or a licence for sale that does not authorize the possession of cannabis, must ensure that an individual who holds a security clearance is present at the site when activities are conducted by other individuals in an operations area or a storage area.

Marginal note:Organizational security plan — update

45 A holder of a licence, other than a holder of a licence for analytical testing or a licence for research, must on request of the Minister, update and submit the organizational security plan.

Marginal note:Recall

• 46 (1) A holder of a licence, other than a licence for analytical testing, must establish and maintain a system of control that permits the rapid and complete recall of every lot or batch of cannabis that has been sold or distributed.

• Marginal note:Recall simulation

  (2) The holder must

  • (a) at least once every 12 months, conduct a recall simulation based on the system of control;

  • (b) after completing the recall simulation, prepare a document that sets out the details of how it was conducted and the results; and

  • (c) retain the document for at least two years after the day on which the recall simulation is completed.

Marginal note:Safekeeping during distribution

47 A holder of a licence must take any steps that are necessary to ensure the safekeeping of cannabis when distributing it.

Marginal note:Identification of holder of a licence

48 A holder of a licence must include their name, as set out in the licence, in all the means by which they identify themself in relation to cannabis, including advertising, purchase orders, shipping documents and invoices.

PART 3Security Clearances

Marginal note:Definitions

49 The following definitions apply in this Part.

corporation

corporation does not include a federal or provincial Crown corporation. (personne morale)

partnership

partnership does not include an incorporated entity. (société de personnes)