granted, Ontario municipalities are prohibited from designating cannabis retail as a separate land use from retail generally. Municipalities do not have the authority to pass a by-law under the Planning Act that has the effect of distinguishing between a use of land, a building or a structure that includes the sale of cannabis and one that does not. A by-law or an order made under the Planning Act that conflicts with the Act is of no effect. Additionally, retail cannabis stores are also exempt from cannabis-specific municipal licensing requirements.
In a setback to licenced producers (“LPs”) looking to enter the retail market, LPs will only be permitted to operate one retail location in Ontario, which must be located on or within the production site set out in the LP’s licence. The Retail Licence Act extends this restriction to also include any “affiliate” of the LP, as such term will be defined in the regulations. Despite this uncertainty, since many other pieces of legislation define what an “affiliate” typically means, we can make an educated guess as to what, at a minimum, can be expected. In that regard, a common definition of an “affiliate” is contained in the Securities Act (Ontario), which deems a company to be an affiliate of another company if: (i) one of the companies is a subsidiary of the other; (ii) if both companies are subsidiaries of the same company; or (iii) if each of the companies is controlled by the same person or company. It is also possible that the definition of “affiliate” may stipulate the percentage of ownership that a LP may hold in the retailer, as was done in British Columbia.
Cannabis Retail Manager Licence
As previously mentioned, any individual who does not hold a retail operator licence will be required to apply for a cannabis retail manager licence if he or she wishes to perform any of the following functions:
1. Supervising or managing employees of a cannabis retail store;
2. Overseeing or coordinating the sale of cannabis;
3. Managing compliance issues in relation to the sale of cannabis; or
4. Having signing authority to purchase cannabis, enter into contracts or make offers of employments.
The Retail Licence Act sets out several eligibility requirements for the issuance of a cannabis retail manager licence. In addition, the
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