The Cannabis Control Law Sara Mainville, Partner Jaclyn McNamara, - - PowerPoint PPT Presentation

Mohawks of the Bay of Quinte

Community Forum on The Cannabis Control Law

Sara Mainville, Partner Jaclyn McNamara, Associate, October 22, 2019 Your Sovereignty Your Prosperity Our Mission

SHE:KON/GREETINGS

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Cannabis legalization on October 17, 2018 Prior to legalization, Council met with the

community regarding the development of our

• wn law on June 5, 19 & 30, 2018

On October 16, 2018, Council passed the

Interim Cannabis Control Regulation

Council has developed a permanent Cannabis

Control Law, which will be subject to a (Nov 16th) Ratification Vote in the community

Drafting Your Law

 Cannabis Act Legalization:

 “if the person is authorized to sell cannabis under a provincial

Act..”

 “Unless authorized by this Act…”

 All other activity is illegal – “watertight” opinion of Canada that

all cannabis commercial activity must be done by a federal/provincial licencee

 MBQ Licencing will:

 Protect the commercial interests of business with licences;  Protect the consumer interests of MBQ members, residents, and

visitors;

 Share in the risk/reward of licenced cannabis activity for the

community to benefit;

 Protect the health and safety for the MBQ community.

Changes in the Law were made

 After the September Forum we have made the following

changes to the Law:

 Section 8.1 – cultivation licences not solely from Health

Canada, also from TMCC Board

 Section 13.2 – Board members not required to be 21 years

• ld, age requirement now 19 years old.

 We took the residency requirements out from 16.18 – for

licence holders, non-resident members should also be allowed to be licence-holders.

 Transition – the Board established after November vote (if

passed) will have to July 2, 2020 as a transition period.

Why the Law is Necessary and Self- Regulation isn’t working

 Known Risks of Status Quo:

 Influx of cash and attraction to organized crime;  Transparency of stores and who/what is supplying the

existing stores (product origins, fuelling organized crime, laundering of proceeds of crime)

 Whose standards in production, labelling, and testing?

 Quality of the Cannabis Employment?

 Cash in the stores incentivizes robberies  Grey/black market employment may be a problem in the

future

 Ability to cross the US/Canada border

Cannabis Control Law - Purposes

 Protect the health and safety of the

Tyendinagaro:non and other persons on the Territory, in particular young persons under the age of 19

 Protect the jurisdictional integrity of the Tyendinaga

Mohawk Territory

 Facilitate a regulated and controlled cannabis

industry that will promote and enhance socio- economic development, fiscal self-sufficiency and

• verall benefit to the Tyendinagaro:non and for the

Tyendinaga Mohawk Territory

Cannabis Control Law – Purposes Cont.

 Provide for the legal cultivation, processing, extraction,

production, distribution, and sale of quality-controlled cannabis, include lab and testing facilities, within and from the Tyendinaga Mohawk Territory

 Deter illicit and illegal activities in relation to cannabis,

particularly with respect to the involvement of organized crime

 Balance the interests of those Tyendinagaro:non who are

concerned about legal cannabis in the Tyendinaga Mohawk Territory with the interests of the community members who support the regulated cultivation, processing, extraction, production, distribution, sale, possession, and use of cannabis in the Tyendinaga Mohawk Territory

 Provide an overall benefit to the Tyendinaga Mohawk Territory

Cannabis Control Law - Application

 The Law applies to:

 All businesses engaged in the activities of cultivation,

processing, extraction, production, and distribution, as well as medical cannabis dispensaries or storefronts engaged in the sale of cannabis, that are on the Tyendinaga Mohawk Territory

 All activities relating to the transportation and delivery of

cannabis for a commercial purpose within, into and from the Tyendinaga Mohawk Territory; and

 All persons and business entities with an interest in

commercial cannabis activity situated or found within the Nation’s treaty lands and Territory

Cannabis Control Law

 Unless it is authorized under the Tyendinaga Mohawk

Cannabis Control Law and regulatory framework, the cultivation, processing, extraction, production, distribution and sale of cannabis; or, any other related activity for a commercial purpose, within and from the Tyendinaga Mohawk Territory is prohibited.

 A licence issued by a province or other regulatory

authority outside the lands of the Tyendinaga Mohawk Territory has no validity within the Territory unless the licence holder has also been granted a licence of authorization under this Law.

Cannabis Control Law – Licenses

 Standard Cultivation License  Micro-cultivation License  Standard Processing License  Micro-processing License  Production License  Distribution License  Retail License  Medical Dispensary License

Supply Chain Example

Cultivator Processor Distributor Retail Store

License Holder Requirements (1)

 Each license holder must fit into one of the following

categories:

 An individual who:

Is Tyendinagaro:non Has attained the full age of 19 years Is a resident within the Tyendinaga Mohawk Territory,

and

has no criminal record for an indictable offence, or has

been granted a pardon for said indicatable offence

 A band-empowered entity, corporation or partnership

that is wholly owned and operated by one or more individuals who meet the above criteria

License Holder Requirements (2)

 A band-empowered entity, corporation or partnership in

which the Council and one or more business entities share a commercial interest

 A partnership where 51% or more of the ownership is

held by any entity described in the previous two bullet points Note that the Board has the authority to issue a License to an entity that is located outside the treaty lands and territory, as long as the Board is satisfied that there is a benefit to the Community or the Tyendinagaro:non for doing so, and that the license will be recognized by other necessary authorities in that location.

License Holder Requirements (3)

 The Board has the discretion to waive the limitation preventing

individuals with a criminal record for an indictable offence for which they have not been granted a pardon from being or

• wning an interest in a licence holder, if:

 the Board is of the view that the indictable offence(s) in

question have no impact on the licence holder’s ability to

• perate the business contemplated by the licence or fulfill the
• bligations contained therein, taking into consideration (1) the

circumstances of the offence; (2) the character of the licence holder; and (3) the impact on the safety and reputation of the community.

 The Board cannot waive this limitation where the indictable

• ffence(s) in question relate to organized crime or drug

trafficking

Cultivation and Processing

 All cultivation and processing facilities must be

inspected, certified and licenced by the health and safety authorities designated by the Board, which may include Health Canada officials

Cannabis Control Law – Retail Licenses

 Retail stores cannot be located in a restricted public area, which includes:

 See Schedule (List of restricted places)

 Retail stores also cannot be located in an area where it is likely to disturb or

endanger the community or the Tyendinagaro:non, as determined by the Board

 The holder of a Recreational Retail License must not sell, barter, give or

exchange cannabis:

 to an individual who is not 19 years of age or older  to an individual who appears to be intoxicated  to any individual who is not a consumer, especially if that individual may be

a source of illicit supply to organized crime or persons under the age of 19 years old

 in an amount that exceeds the amount prescribed by the Board regulations,

and

 that is not obtained from a company with a Distribution Licence, Processor

Licence, or Production Licence.

Cannabis Control Law

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Powers of the Chief and Council

Create, amend the Law and regulations; Appoint and remove Board members; Set the Board’s annual budget and

remuneration of the Board members

Cannabis Control Board

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 The Tyendinaga Mohawk Cannabis Control Board will be

established as the regulatory body that will administer this Law and the accompanying regulations in the best interests

• f the Tyendinagaro:non

 The Board will:

 Issue, suspend, and revoke the licenses provided for in the

Law

 Regulate, monitor, investigate and inspect all premises

and activities of the license holders

 Make any decision and take any action necessary to

fulfill the purposes of the Law

 The Board can limit the number of licensed issued in any

category

Cannabis Control Board Structure

 The Board will operate at arm’s length from Council  The Board will be comprised of up to 5 members, 2 of

whom will be selected and appointed by Council and 3 of whom will be elected from an electoral list of eligible Tyendinagaro:non

 All 5 members of the Board shall not possess a criminal

record for an indictable offence for which they have not received a pardon, and consent to further background checks as deemed necessary by the Council, as well as provide written personal references that are suitable for the position of a good standing member of the community, with good judgment.

Cannabis Control Board – Appointed Members

 The two members appointed by Council will be selected in

accordance with the following criteria:

 preference will be given to Tyendinagaro:non;  they must be nineteen years old or older;  preference will be for residents within the Tyendinaga

Mohawk Territory;

 they must not have any interest in a private entity that has

applied for or has been granted a licence in this Regulatory framework;

 they must not have any association or affiliation with criminal

• rganizations as defined in the Criminal Code of Canada;

 they must not have (a) a family member or (b) an individual

who resides with the Board member, that has any interest in a private entity that has applied for or has been granted a licence

Cannabis Control Board – Elected Members

 The Tyendinagaro:non will elect 3 members and an alternative

member from an Electoral list of eligible Tyendinagaro:non, who meet the following qualifications:

 they are not bankrupt or have been discharged from a

bankruptcy;

 they are 19 or older;  they have no ownership interest in a cannabis licence within

Tyendinaga Mohawk Territory;

 they must be an eligible band member capable of attending

meetings in Tyendinaga Mohawk Territory without any financial assistance for travel;

 they must not have any association or affiliation with criminal

• rganizations as defined in the Criminal Code of Canada.

Cannabis Control Board – Removal

• f Board Members

 Council may, for reasonable cause, remove an appointed Board

member from office prior to the expiry of their term of office.

 Council may remove an elected Board member from the Board on the

following grounds:

 they have been charged with or convicted of an indictable offence

under the Criminal Code;

 they engage in drunk, drug related, disorderly, violent or other

irresponsible conduct at Board meetings, community meetings, or on

• ther public forums or functions which interferes with the conduct of

the Board or brings the reputation of the Board, Council or Tyendinagaro:non into disrepute;

 they fail to perform their duties as set out in this Law and its

Regulations;

 they no longer meet the requirements for appointment as set out in

the last slide

Cannabis Control Board

 The Board will be responsible for enacting regulations

regarding the standards and testing procedures to ensure that all cannabis cultivated, processed, distributed and sold within the Territory are consistently and reliably high-quality and safe for public consumption

 The Board will also set requirements for packaging and

labeling of products

 The Board may implement price controls to preserve the

economic viability of the cannabis market in the treaty lands and territory.

 The Board will also set requirements for license categories,

including license fees, as well as place conditions on individual licenses

Licensing Fees

 The Board will be accountable through an audit for the

licensing fees received and the licensing expenses related to the cannabis control system at the Annual General Meeting.

 The Board will ensure a public audit is available for the

AGM

 Anticipated approximate fee range:

 $4,000-$7,000 for the initial license (2 year period)  $2,000-$3,000 for renewal for additional 2 years

Enforcement

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 Enforcement is WITHIN the licensing regime, the activity

that is unlicensed is illegal under the federal Cannabis Act (federal enforcement);

 Board enforcement is anticipated in the to be that they

have the ultimate authority is to revoke, suspend or amend a licence or not to issue in the first place. They also have the authority to fine.

 Compliance officers will also be contracted or hired by

the Board with the legal powers necessary for the enforcement of the Law and accompanying regulations, including the power to investigate and enter licensed

• perations in the Tyendinaga Mohawk Territory, and

fine non-compliant individuals

“Fairness” in the Regulatory Scheme

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We anticipate that regulations will be put in

place to ensure that the Board cannot be arbitrary in denying a licence, they must give reasons for key decisions in the regulations, reconsider some decisions if asked to, and there is an Review Committee contemplated by the Law.

Next Steps

 Practically, how do we close the loop on the licenced

products to ensure that they are seen is legitimate to

• ther governments? (MBQ stamp)

 Other opportunities re: other First Nations to work

together for Inter-tribal trade.

 Ensuring that all of the stores in the community have

equal opportunity and good/best practices.

 Testing – how should MBQ regularize product testing

and quality control for the benefit of commercial activity in Tyendinaga?