NWT Retail Cannabis Framework - ntlcc.ca · No, the licensing of cannabis consumption in lounges is not permitted in the NWT. The GNWT’s objective is to provide, through the NWT

NWT Retail Cannabis Framework Information Guide

Contents

Applications and Operations ............................................................................... 1

Who is this guide for? ......................................................................................... 1

Application and Licensing ................................................................................... 2

1. Whocanapplytobeacannabisvendor?........................................................................................................2

2. Doapplicantshavetoundergoabackgroundcheck?................................................................................2

3. Doeshavingarecordofcriminalactivityexcludeanindividual,orashareholderinacompany,frombeingdesignatedacannabisvendor?...............................................................................2

4. Ifanapplicanthasaninterestinafederallylicensedproducerorprocessor,cantheybeconsideredtobecomeadesignatedcannabisvendor?.......................................................................2

5. Whatkindofinformationwillneedtobeprovidedaboutcompanieswhoapplytobecomeacannabisvendor?..................................................................................................................................3

6. Whatinformationmustbeprovidedabouttheproposedlocationforacannabisretailstore?.................................................................................................................................................................3

7. Willtherebeacaponthenumberofcannabisvendors?........................................................................3

8. Willacannabisvendorbeallowedtosellmedicinalcannabis?............................................................3

9. WilltheNTLCCbelicensingconsumptioninlounges?.............................................................................4

10. Willcannabissalesbelicensedatoutdoorfestivalsandotherevents?.............................................4

11. Whatistheprocesstobecomeadesignatedcannabisvendor?..........................................................4

12. Willtherebeanapplicationfee?........................................................................................................................4

13. Forhowlongwillacannabisvendor’sConsignmentAgreementbevalid?.....................................5

14. CanIsellmycannabisretailstoreandhavetheConsignmentAgreementtransferredtothenewowner?....................................................................................................................................................5

15. Howlongwilltheselectionandapplicationprocesstake?.....................................................................5

Operations: General ............................................................................................ 6

16. Doesacannabisstorehavetobeacertaindistancefromschoolsandotherretailers?.............6

17. Willtherebeanyrestrictionsonwhereacannabisretailstorecanbelocated?...........................6

18. Arethereanyrulesaboutwhatacannabisstorecanbecalled?..........................................................6

19. Canminorsenteracannabisstore?..................................................................................................................6

20. Whathourscanacannabisstorebeopen?....................................................................................................6

21. Canacannabisstoresellcannabisonline?....................................................................................................6

22. Canacannabisstoreoffermail‐orderdeliveryofitsproducts?...........................................................7

23. Canacannabisstoreofferin‐towndeliveryofitsproducts?.................................................................7

24. Arethererulesaroundpricingofcannabisproducts?..............................................................................7

25. Istherealimittohowmuchcannabiscanbesoldtoaperson?...........................................................8

26. Canpeopleconsumecannabisinacannabisstore?...................................................................................8

27. CanacannabisstoresellcannabistopeopleoutsideoftheNorthwestTerritories?..................8

28. Willpeoplebeallowedtosee,touch,orsmellproductinacannabisstore?...................................8

29. Docannabisstoreemployeesneedanyspecialtraining?........................................................................9

30. Willcannabisstoresberequiredtohaveacertainproducttracking/inventorycontrolsystem?..........................................................................................................................................................9

31. Whatelsecanbesoldincannabisstoresbesidescannabisproducts?..............................................9

32. Cancannabisproductsbeaddedasaproductforsaleinanalreadyestablishedbusiness(otherthanaliquorstore)?...............................................................................................................9

33. Whatformatwillcannabisproductsbesoldin?..........................................................................................9

Operations: Physical Store ................................................................................ 10

34. Arethereanyrulesaboutthephysicallayoutofcannabisstores?...................................................10

35. Wherewillcannabisstoresbeallowedtostoreinventory?................................................................10

36. Aretheresecurityrequirementsforcannabisstores?...........................................................................10

Supply ............................................................................................................... 11

37. Howdocannabisstoresobtaincannabistosell?.....................................................................................11

38. Canfinancialarrangementsbemadewithfederallylicensedproducers?....................................11

39. Whattypesofcannabiscanbesoldincannabisstores?.......................................................................11

40. Willcannabisstoresbeabletosellediblecannabisproducts?..........................................................11

Inspections and Compliance ............................................................................. 12

41. Howoftenwillcannabisstoresbeinspected?...........................................................................................12

42. Whathappensifacannabisstoreisfoundtobeoutofcompliance?...............................................12

43. Canthepoliceenterandinspectacannabisstore?.................................................................................12

Appendix 1: Application Process ....................................................................... 13

Appendix 2 ‐ Sensory Display Container Guidelines .......................................... 18

Appendix 3 ‐ Cannabis Store Physical Security Requirements ............................ 20

Appendix 4 ‐ Inspections and Enforcement ....................................................... 22

NORTHWEST TERRITORIES’ RETAIL CANNABIS FRAMEWORK: INFORMATION GUIDE

October 2018 Page 1 of 23

APPLICATIONS AND OPERATIONS ThesaleofcannabisintheNorthwestTerritories(NWT)willbedonethroughtheNorthwestTerritories’LiquorandCannabisCommission(NTLCC)andprivateretailersdesignatedbytheMinisterofFinance.TheNTLCCwillcontroltheinventory,saleanddeliveryofcannabisandsetpricesforcannabisproducts.

Inaddition,theNTLCCwillbetheonlineretailerofcannabis,beresponsibleforregulatingthecannabisindustryintheNWT,includingenteringintoagreementswithcannabisvendorsdesignatedbytheMinisterandmonitoringtheoperationofvendors.

WHO IS THIS GUIDE FOR? Thisguideprovidesinformationforthosewhoareconsideringapplyingtobecomeavendorofretailnon‐medicinalcannabisintheNWTincluding:

adescriptionoftheapplicationprocess;

informationtohelpapplicantsmakebusinessdecisions;and

informationonhowretailbusinesseswillbeabletobuyandsellproduct.

Thisinformationwillalsoassistlocalgovernmentsinpreparingforpotentialretailstoreapplicationswithintheircommunity.



APPLICATION AND LICENSING

1. Who can apply to be a cannabis vendor?

AnyonemayapplytobedesignatedasacannabisvendorTheNWTLiquorandCannabisCommission(NTLCC)willevaluateallapplicationsandproviderecommendationstotheMinisterforapproval.

2. Do applicants have to undergo a background check?

Yes,theNTLCCwillconductbackgroundchecksonowners,shareholders,directors,officers,andinvestorsinordertoensuresecurityclearance.TheNTLCCmayalsorequirebackgroundchecksonfamilymemberswholiveinthesamehomeasanapplicantandassociates,asitfeelsnecessary.Thiswilltypicallyinvolveanexaminationoftheindividual’scriminalhistory,involvementincivillawsuits,financialhistory,andotherrelevantinformation.

3. Does having a record of criminal activity exclude an individual, or a shareholder in

a company, from being designated a cannabis vendor?

Havingarecordofcriminalactivitywillnotnecessarilyexcludeanapplicantfrombecomingacannabisvendor.Aspartoftherequiredbackgroundcheck,police/criminalrecordswillbeevaluatedinrelationtotheirrelevancetotheapplicationandtherecentnessoftheactivityoroffence(s)committed.TheNTLCCwillevaluatetherecordsofcriminalactivityofallapplicants(includingshareholders)aspartofthereviewprocess.Whenreviewinganindividual’srecordofcriminalactivity,theNTLCCwillpayparticularattentiontowhetherapersonhasbeenconvictedof:

AnoffenceundertheCriminalCode(Canada),theExciseAct(Canada),theFoodandDrugsAct(Canada)ortheIncomeTaxAct(Canada);or

AnoffenceundertheControlledDrugsandSubstancesAct(Canada),otherthanunderSection4(1)ofthatActforpossessionofanysubstanceincludedinScheduleIItothatAct;or

AnoffencethatissufficientlyseriousthatitmaydetractfromtheintegrityoflawfulcannabisactivitiesintheNorthwestTerritories.

4. If an applicant has an interest in a federally licensed producer or processor, can

they be considered to become a designated cannabis vendor?

Yes,apersonorcompanymayhaveaninterestinbothaproducerandaretailerbutmustkeeptheseinterestsseparate.TheNTLCCisresponsiblefornegotiatingsupplyagreementswithproducers.IndividualvendorswillberequiredtoorderproductdirectlyfromtheNTLCCandwillnotbepermittedtohavepurchasingrelationshipswithgrowers.



5. What kind of information will need to be provided about companies who apply to

become a cannabis vendor?

Asdescribedinmoredetailbelow,applicantswillneedtosupplyinformationaboutownership,managementstructure,andfinancingincludingbutnotnecessarilylimitedtothenamesofanyowners,directors,officersandinvestorsalongwithincorporationdocumentsanddisclosuresaboutthecompany’sbackground.TheNTLCCwillconfirmfinancialrepresentationmadeaspartoftheapplicationprocess.

6. What information must be provided about the proposed location for a cannabis

retail store?

Dependingonwhatstageoftheapplicationprocess,adifferentlevelofdetailaboutthelocationwillberequired.Duringtheearlystages,applicantswillhavetoprovidethelegaladdress,andoffertoleaseorpurchase,afloorplanandasiteplan.Beforeacannabisvendor’sapplicationcanbeapproved,applicantswillhavetoprovideproofofpossession(forexample,title,lease,oragreementforsale),anapproveddevelopmentpermit,andfireapproval/righttooccupythelocation.Ifadditionalinformationisrequired,itwillberequestedduringtheapplicationprocess.

Aspartofthedetailsontheproposedlocation,applicantswillbeexpectedtoconsultwiththecommunitygovernmentandincludeintheapplicationtheresultsoftheconsultation.Thismayincludeinformationsuchas:

confirmationthatabusinesslicencewillbeissuediftheapplicantissuccessfulincommunitieswhereabusinesslicencewillbenecessary;and

confirmationthatzoningbylawsallowthebusinesstooperateinthatproposedlocation.

7. Will there be a cap on the number of cannabis vendors?

ThereisnosetcaponthenumberofcannabisvendorthatwillbedesignatedbytheMinister.ThroughtheRequestforProposalsprocessdetailedlaterinthisdocument,theMinisterwillassesscommunityinterest,theapplicationsreceivedandtheirviability,andthendesignatevendorsasappropriate.

8. Will a cannabis vendor be allowed to sell medicinal cannabis?

No,medicalcannabiswillcontinuetobesoldonlinebyfederallyregulatedproducersonly.However,likeotherCanadians,medicaluserswillbeabletobuycannabisfromretailersofnon‐medicalcannabis.Thefederalgovernmenthascommittedtoconductingareviewofthemedicalcannabissysteminfiveyears.



9. Will the NTLCC be licensing consumption in lounges?

No,thelicensingofcannabisconsumptioninloungesisnotpermittedintheNWT.

TheGNWT’sobjectiveistoprovide,throughtheNWTLiquorandCannabisCommission,accesstoasafesupplyofcannabisproductsforindividuals19yearsofageandover.ThereisnolegislativeauthoritytoauthorizethelicencingofconsumptioninloungesintheCannabisProductsAct.

10. Will cannabis sales be licensed at outdoor festivals and other events?

WhilethereareprovisionsintheActtoallowforspecialoccasionpermits,noapplicationsforpermitswillbeacceptedatthistime.

11. What is the process to become a designated cannabis vendor?

Ifyouareinterestedinapplyingtobecomeadesignatedcannabisvendor,youareinvitedtosubmitanexpressionofinteresttotheNTLCC.ThiscanbedoneintheformofalettertotheDirectoroftheNTLCCexpressingyourinterest.

OncetheNTLCCreceivesanexpressionofinterestfromapotentialvendor,thiswilltriggerconsiderationofaddingaretailcannabisoutletinacommunity.Shouldtheinitialassessmentindicatecommunitysupportandsufficientdemand,apublicRequestforProposals(RFP)processwillbeundertakenforthatspecificcommunity.AllpotentialvendorsinterestedinbecomingcannabisvendorswillbeinvitedtoparticipateinanRFPprocessthatisdescribedinmoredetailinAppendix1.

OnceyouhavebeendesignatedacannabisvendorbytheMinister,youwillberequiredtoenterintoaConsignmentAgreementwiththeNTLCC.ThisdocumentwilloutlineyourcontractualrelationshipwiththeNTLCCanddescribehowyouarepermittedtooperateasavendorintheNWT.ThisAgreementwillbeforaperiodoffiveyears,withthepotentialtorenewforanadditionalfiveyears.

Pleasenotethatpermissiontobecomeacannabisvendorisnotanendorsementoftheapplicant’sbusinessplanoranindicationoffuturegovernmentsupport.ThebusinesshastofunctionasaviablebusinessinitsownrightandisprovidedthesamesupportthattheGNWTprovidesotherbusinessesthroughitsvariousprograms.

12. Will there be an application fee?

Yes.Applicantswillberequiredtosubmitanapplicationfeeof$1000whentheysubmittheirpreliminarydocumentsasapartoftheRFPprocess.IfanapplicantdoesnotpassthePre‐ApplicationSecurityScreeninghalfofthisfeewillberefundedtotheapplicant.



13. For how long will a cannabis vendor’s Consignment Agreement be valid?

YourConsignmentAgreementwiththeNTLCCwillbevalidforaperiodoffiveyears,atwhichtimeitwillbesubjecttoareview.Asavendor,youwillberequiredtonotifytheNTLCCofanychangestothebusinessstructure(changeofownership/investors)sincethetimeofapplication.FailuretodosomayresultinthecancellationoftheConsignmentAgreementandtherevocationofyourdesignationasanapprovedcannabisvendor.AnychangestoownershipstructureswillbesubjecttoreviewbytheMinister.

14. Can I sell my cannabis retail store and have the Consignment Agreement

transferred to the new owner?

Youaredesignatedasanapprovedcannabisvendorbasedontheinformationyouprovideinyourapplicationpackage.Beforeyousellyourbusiness,potentialbuyersshouldworkwiththeNTLCCinordertoensurethattheyqualifytobedesignatedasacannabisvendor.Ifanewowneralsoqualifiesasadesignatedcannabisvendor,theycanassumeyourcontractwiththeNTLCCforthesaleofcannabis.

15. How long will the selection and application process take?

TheNTLCCiscommittedtoconductingthoroughreviewsofapplicantsandapplicationsinordertoensurethatsuccessfulretailerswilloperateinasafeandlawfulmanner.Plansarebeingputinplacetoensurethatapplicationsareprocessedasefficientlyaspossible.However,thetimeneededtocompletetheprocesswilldependonthenumberofapplications.



OPERATIONS: GENERAL

16. Does a cannabis store have to be a certain distance from schools and other

retailers?

Localgovernmentshavetheauthoritytoimposedistancerequirementsandotherconditions,soapplicantsshouldinquirewiththeirlocalgovernmentaboutlocaldistancerequirementsbeforecommittingtoalocation.TheNTLCCwillnotbesettingtheserequirements.

17. Will there be any restrictions on where a cannabis retail store can be located?

TheNTLCCwillrequirethatthestorecomplywithanymunicipalzoningrequirementsandprovideevidenceofcomplianceintheapplication.Beyondthat,theNTLCCwillnotregulatethelocationofstores.Forexample,localgovernmentsmayrestricthowcloseastorecanbetoanothercannabisstore,schools,daycares,orotherplaces.

18. Are there any rules about what a cannabis store can be called?

Thenamesofcannabisstoresmustcomplywithfederallegislationandregulationsrespectingadvertisingandpromotion.

Storenamesmustbeingoodtasteandmaynotpromoteintoxication.Termsandimagessuchas,butnotlimitedto“chronic”,“stoned”or“high”willnotbepermitted.

Storenamescannotbemisleadingastowhattypeofbusinessisdoneinthestore.Asanon‐medicinalcannabisretailer,storescannothaveanamethatwouldleadpeopletobelievethestoreprovidesmedicinalcannabis.Forexample,thewords“pharmacy”,“apothecary”,and“dispensary”allhavemeaningslinkedtothesellingofmedicines,sothesewordscannotbeusedinassociationwithanon‐medicinalcannabisstore.

19. Can minors enter a cannabis store?

Minorsmayonlyenteracannabisstoreiftheyareaccompaniedbytheirparentoraneligiblepersonauthorizedbytheirparent.

20. What hours can a cannabis store be open?

ThehoursofoperationofcannabisstoreswillbedeterminedbytheNTLCCinconsultationwithindividualcommunitygovernments.

21. Can a cannabis store sell cannabis online?

No,onlytheNTLCCwillbepermittedtosellcannabisproductsonlineintheNWT.



22. Can a cannabis store offer mail‐order delivery of its products?

Yes,cannabisstoreswillbeabletooffermail‐orderdeliveryofcannabisinthesamewaythatliquorstoresoffermail‐orderliquordelivery.Thissystemwillhavecontrolinplacetoprotectagainstbootleggingandaccessbyminors,includingrequirementsthat:

ThepurchasermustbearesidentoftheNorthwestTerritorieswhois,19orover,andtheymustprovidepositiveidentificationthatincludesdataofbirth,currentaddressandsamplesignature.

Customerordersmustbeplacedinwriting,providingmethodofpaymentanddirectionsforshipment,andtheymustbesignedbythecustomer.

Storewillcheckorderwithidentificationprovidedandverifythatthecustomeris19orover;doesnotresideinacommunitywithastorethatsellscannabis;andthecannabisorderisnotbeingshippedtoacommunitywherecannabisisprohibited.

Paymentwillberenderedbeforecannabisisshipped.

Eachorderwillbepackagedandsentindividuallytothepurchaserbycommoncarrierattheaddressprovidedontheidentificationprovidedbythepurchaser.

Thepurchasermustsigntoreceivetheshipment.

23. Can a cannabis store offer in‐town delivery of its products?

No.

24. Are there rules around pricing of cannabis products?

CannabisstoresintheNWTwillsellcannabisonconsignment.ThismeansthattheretailpricesforallcannabisproductswillbesetbytheNTLCCandwillincludearetailercommissionthatisconsistentamongretailers.Atthistimetheretailercommissionhasbeensetat17%ofthewholesaleprice.



25. Is there a limit to how much cannabis can be sold to a person?

Anindividualcanlegallyhavenomorethan30gramsofdriedcannabis(orcombinedequivalentinotherforms)whentheyareinpublic.Asaresult,retailandonlinesalestransactionswillbelimitedtotheequivalentof30gramsofcannabis.

Thefollowingtable,takenfromSchedule3ofthefederalCannabisAct,liststheamountsofotherauthorizedcannabisformsthatareequivalentto30gramsofdriedcannabis.

ClassofCannabisQuantitythatisequivalentto1gramofdriedcannabis

Driedcannabis 1g

Freshcannabis 5g

Solidscontainingcannabis 15g

Non‐solidscontainingcannabis 70g

Cannabissolidconcentrates 0.25g

Cannabisnon‐solidconcentrates 0.25g

Cannabisplantseeds 1seed

26. Can people consume cannabis in a cannabis store?

No.Consumptionofanykindwillnotbepermittedinthestore,andprovidingsampleswillnotbepermitted.UndertheCannabisSmokingandControlActandtheaccompanyingCannabisSmokingControlRegulations,thesmokingofcannabisisprohibitedincertainpublicareasincludingthosefrequentedbychildrenandcrowds,fromvehicles,andfromanyplacewheretobaccosmokingisnotallowed.Therewillbenoconsumptionofcannabisatcannabisretailoutlets,andtherewillbenodesignatedestablishmentswherenon‐medicinalcannabiscanbeconsumed.

27. Can a cannabis store sell cannabis to people outside of the Northwest Territories?

No,interjurisdictionalretailsaleswillnotbeallowed.CannabisstoreswillnotbeabletosellcannabistopeopleoutsideoftheNWT,butneitherwillretailersoutsideoftheNWTbeabletoselltopeopleintheNWT.

28. Will people be allowed to see, touch, or smell product in a cannabis store?

Vendorsmustfollowthefederallegislationandregulationsincludingthatcannabismustbesoldinitsoriginalpackagingwiththeexcisestampintact.Sensorydisplaycontainerswillbepermittedprovidedthereisnoingestionofcannabisproductorsmokeinthestore.PleaseseeAppendix2forguidelinesaroundtheuseofsensorydisplaycontainers.



29. Do cannabis store employees need any special training?

Yes,therearemandatorytrainingrequirementsforcannabisstoreownersandemployees.SpecificinformationaboutthistrainingandhowitmustbeprovidedtoemployeesisdescribedintheRFPdocuments.

TheNTLCCisdevelopingproducttrainingmaterialsinco‐operationwithsupplierswhichwillbeavailableforusebycannabisstoreoperators.

30. Will cannabis stores be required to have a certain product tracking/inventory

control system?

Thereisarequirementtoreportsalesfigurestothefederalgovernmentonamonthlybasis.Inordertofacilitatethisreportingprocess,allcannabisvendorswillberequiredtousetheexistingNTLCCpointofsalesystem.Thecosttothevendorfortheuseofthissystemisapproximately$10,000/year.

31. What else can be sold in cannabis stores besides cannabis products?

Inadditiontodriedcannabis,cannabisoilandseed,avendormaysellcannabisaccessoriesasdefinedbythefederalCannabisActsuchasrollingpapersorwraps,holders,pipes,waterpipes,bongsandvaporizers.

Cannabisretailvendorscanalsosellcannabis‐relatedancillaryitemsasdefinedbytheNTLCC.Thiswillincludesuchthingsascannabisindustrymagazines,brandedt‐shirtsandashtrays,cannabisartwork.Cannabisstoreswillalsobepermittedtosellsnacks.Thereisnolimitonthenumberofaccessoriesandancillaryitemsthatcanbecarried.

32. Can cannabis products be added as a product for sale in an already established

business (other than a liquor store)?

Possibly.

Anyexistingstoreinterestedinaddingcannabistotheirproductlinewouldhavetocomplywithallterritorialandfederallegislationandregulations,includingstoresecurityrequirements,customeragerestrictions,storehoursandanyotherrestrictionsincludedintheConsignmentAgreement.

33. What format will cannabis products be sold in?

Underfederalrequirements,cannabismustbepackagedbythefederallylicensedproducer,completewithanexcisestampfortheterritorywhereitwillbesold.Retailerswillnotbeallowedtoopenpackagesbeforeselling,sellpartialpackagesorre‐packagetheproduct.



OPERATIONS: PHYSICAL STORE

34. Are there any rules about the physical layout of cannabis stores?

Tohelplimityouthexposuretocannabisproducts,thefederalgovernmentrequiresthatcannabisproductsnotbevisiblefromoutsideacannabisstore.Therewillbemanydifferentwaysforcannabisstorestoachievethisrequirementthatcomplywithterritorialandfederalrequirementsrespectingadvertisingandpromotion.

Premisesarerequiredtohaveasalesarea;aseparateentrance/exit;productreceivingcapability;asecurestorageroomanddisplayforcannabisandaccessories;andnoaccessfromanyareaofthepremisestoanotherbusiness.Drive‐throughwindowsareprohibited.Theproductmustbesecurebehindthecounterandonlycountersalesarepermitted.

PleaseseeAppendix3forfurtherinformationaboutthesecurityrequirementsforphysicalstores.

35. Where will cannabis stores be allowed to store inventory?

TheNTLCCemploys‘just‐in‐time”inventorysystemstominimizethespacethatwillberequiredforon‐sitestorage.Allcannabisinventorymustbestoredon‐site.

36. Are there security requirements for cannabis stores?

Yes.Retailershaveastrongincentivetosecurethestorepremisesbothduringandafteroperatinghourstoprotecttheinventoryfromtheft.DetailaboutthespecificsecurityrequirementsforcannabisstoreshasbeenincludedinAppendix3.Storeoperatorsareresponsibleforanyshrinkageininventory.



SUPPLY

37. How do cannabis stores obtain cannabis to sell?

TheNTLCCwillbetheonlysourceoflegalwholesalecannabisintheNWT.Retailerswillnotbepermittedtopurchaseanycannabisproductsdirectlyfromlicensedproducersoranyothersource,includingdesignatedgrowersunderthemedicalcannabisregime.Sellingunauthorizedproductwillresultintheautomaticrevocationoftheirdesignationasacannabisvendor,cancellationoftheConsignmentAgreementandpossiblecriminalcharges.

38. Can financial arrangements be made with federally licensed producers?

Cannabisretailerscannotacceptmoneyorrequestanyinducementfromaproducer.Thismeanstheymustnot:

Paymoneytosecureaccesstoasupplier’sproduct.

Requestmoneyfromasupplierinreturnforprovidingbenefitssuchaspreferentialshelfspace.

Acceptmoneyinexchangeforagreeingnottostockacompetitor’sproduct.

39. What types of cannabis can be sold in cannabis stores?

Cannabisstoreswillbeabletosellwholeflower,groundflower,pre‐rolledcannabis,someoilproductsandseedsavailablefromtheNTLCC.TheNTLCCwillworkwithvendorstoensurethattheproductselectionismeetingthecustomer’sdemands.

40. Will cannabis stores be able to sell edible cannabis products?

No,becauseediblecannabisproductsarenotlegalforsaleinCanada.Thefederalgovernmenthasstatedthatitwillbeconsideringtheregulationofediblesoneyearafterlegalization.



INSPECTIONS AND COMPLIANCE Toensurethatcannabisisbeingsoldinalawfulandresponsiblemanner,theNTLCCwillestablishacomplianceprogramthatwillincludeeducation,inspectionandenforcementactivitiesfortheoperationofthestores.ThefocuswillbeonencouragingvoluntarycompliancebuttheCommissionhastheauthoritytorevokearetailer’sdesignationasacannabisvendorfornon‐compliancewiththeConsignmentAgreementorondiscoveryoffalseclaimsontheapplication.

41. How often will cannabis stores be inspected?

CannabisstoreswillbeinspectedbeforeatheMinisteragreestoavendordesignationandthenonaregular,butad‐hocbasisafteropening.TheNTLCCwillinvestigateanycomplaintsreceived.Retailstoreoperatorscannotrefuseaninspectionandmustmaketheirpremises,includingrecords,availabletoinspectorsimmediatelyuponrequest.

42. What happens if a cannabis store is found to be out of compliance?

TheNWThasdevelopeddetailedguidelinesaboutinspectionthatcanbefoundinAppendix4attheendofthisdocument.

43. Can the police enter and inspect a cannabis store?

Yes,policecaninspectacannabisstoretoensureitisoperatingincompliancewithlegalrequirements.



APPENDIX 1: APPLICATION PROCESS Ifyouareinterestedinapplyingtobecomeadesignatedcannabisvendor,youareinvitedtosubmitanexpressionofinteresttotheNTLCC.ThiscanbedoneintheformofalettertotheDirectoroftheNTLCCexpressingyourinterest.

OncetheNTLCCreceivesanexpressionofinterestfromapotentialvendor,thiswilltriggerconsiderationofaddingaretailcannabisoutletinacommunity.Shouldtheinitialassessmentindicatecommunitysupportandsufficientdemand,apublicRequestforProposals(RFP)processwillbeundertakenforthatspecificcommunity.AllpotentialvendorsinterestedinbecomingcannabisvendorwillbeinvitedtoparticipateinanRFPprocessasdescribedbelow.

1. Pre‐ApplicationSecurityScreening:Potentialapplicantsmustprovideacompletedapplicantdisclosureformwhichwillincludethefollowinginformation:

a. Informationaboutthecorporatestructure,includingthenameofALLowners,investors,promoters,parentorholdingcompanies,shareholdersandpartnersandtheirimmediatefamily;

b. Preliminaryfinancialdisclosure,includingfinancialstatements(ifapplicable)forthelastthreeyears,copiesofcompletedincometaxreturns,andalistingofcurrentfinancialobligations;

c. PersonalinformationaboutALLowners,investors,promoters,parentorholdingcompanies,shareholdersandpartnersandtheirimmediatefamily(includesbasicidentifyinginformation,work/employmenthistory,familyinformation,existingbusinessinterests,criminal/litigation/disciplinaryinformation,criminalrecordscheckfromRCMP,andfinancialinformation);and

d. Authorizationtorequestadditionalinformationfrom:

i. theCanadianCustomsandRevenueAgency,orotherequivalentforeigntaxingauthority;

ii. anyfinancialinstitutions,foreignordomestic,includingbanks,creditunions,trustcompanies,investmentdealersorbrokeragehouses;and/or

iii. creditreportingagencies,foreignordomestic.

Theapplicantmustsubmitthepartiallyrefundable$1000applicationatthispointduringtheprocess.Ifanapplicantisunsuccessful,$500willbereturnedtothem.

2. ReviewofPre‐ApplicationSecurityScreening:TheNTLCCwillreviewthePre‐ApplicationSecurityScreeningFormandconfirmthattheapplicant(s)qualifytobedesignatedasacannabisvendor,providedthattheymeetalladditionalapplicationconditions.

Duringthisphaseoftheapplicationprocess,theNTLCCwillreviewtheinformationprovidedbytheapplicantrelatedto:

Criminalhistory(factorsconsideredincludethenatureoftheviolation,thelengthoftimesincetheoffenceandwhetherthecriminalhistoryreflectsanongoingpatternofcriminalbehaviour);



Historyoffinancialstabilityandsolvencythatmayincludearequestforconsenttoconductacreditcheck;

Historyofcompliancewithterritorialandfederaltaxlaws;

Historyofcivillitigationinvolvingfraud,deceit,misrepresentationorbreachoftrust;and

Accuracyandcompletenessofthepersonalinformationprovided.

3. ApplicationPackageSubmitted:Oncethepre‐screeninghasbeencompleted,andtheapplicanthasbeendeemedeligibletobecomeacannabisvendor,theapplicant(s)willberequiredtosubmitacompleteapplicationpackagetotheNTLCCwhichcontains:

a. BusinessPlanincludingFinancialCapacity

TheapplicantmustclearlydemonstratetheApplicant’splantosuccessfullyoperateabusinessaswellasthefinancialcapacitytofinance,openandoperateacannabisretailstore,respondtothechallengesthatmayarise,bothduringthesetupphaseandintheinitialoperatingphaseofyearone.

Businessinformationmustinclude:

i. Particularsofindividualforeverydirector,shareholder,officerinvolvedwiththecompany,aswellastheproposedmanagerofthecannabisstore;

ii. Particularsofincorporationofcompany(ifapplicable)

iii. ParticularsofShareholdingcompany(ifapplicable)

iv. Certificateofincorporation

v. Proposedbusinessandoperatingname

Theinformationonfinancialcapacitymustinclude:

i. Ahigh‐leveloverviewofanticipatedstart‐upandoperatingcosts.(Note:thiswillbeevaluatedagainstreasonablecostexpectationsdevelopedbytheNTLCC.Ifcostsarelow,pleaseexplainwhy,suchasequipment/premisesalreadyowned.)

Start‐upCosts Monthly Annually

Ownedbuildingimprovementsorleaseholdimprovements

Informationtechnologycosts

Securityequipment

Other



OperatingCosts Monthly Annually

Rent/utilities/etc.

Staffingcosts

Inventorymanagementandsalestrackingsystemcosts

Contingency

Other

Revenue Monthly Annually

In‐storecannabissales

Accessoriesandancillarysales

ii. Aclearstatementidentifyingthesourceoffunds,includingidentificationofallinvestors.Theapplicantmustdemonstrateaccesstofundsadequatetomeetthefinancialneedsdescribedinthetablesabove;and

iii. Aclearstatementconfirmingthatfundsarelawfullyobtained.

Whenconsideringfinancialintegrity,theNTLCCwillreviewtheextensivefinancialdisclosurerequiredfromtheapplicant,personswithownershipanddecision‐makingauthorityandanyinvestorswhoprovidesupporttothebusiness.Thisreviewisfocussedonensuringthatthefundsusedforthecannabisretailstorearelegallyobtained,andthattheapplicanthassufficientfinancialresourcestoestablishandoperateacannabisretailstore.

b. OtherRelatedproducts

Theapplicantmustprovideadescriptionoftheotherproductsthatwillbeavailableforsaleintheirstore.Theyshouldalsoincludeanestimateofthepercentageoftotalsalesexpectedtobefromallavailableproductlines.

c. DescriptionoftheProposedSite

Theapplicantmustclearlydescribetheproposedlocationforthecannabisretailstore,including:

i. Afloorplanofthepremises;

Floorplansmaybeblueprints,architecturaldrawings,oralinedrawingbyhand.Iftheapplicantisprovidingalinedrawing,thefloorplanmustbeofhighqualityandclearlylegible.Thedrawingmustincludemeasurementsaswellasnoting:

Measurements;



Entrancesandexits;

Dimensions/squarefootage;

Locationofshelving;

Pointofsalearea;

Officearea;

Delivery/Mailorderarea;

Shipping/ReceivingArea;and

Proposedcameraplacementandareaofcoverage.

ii. Asiteplanofsurroundingbusinesses;

Siteplansmaybehanddrawnbutmustbeofhighqualityandclearlylegible.Thedrawingmustinclude:

Detailedsiteplanofsurroundingbusinesses;

Otherbusinessname(s)(ifvacant,pleasestate);

Geographicaldirections(i.e.North,South,East,West);

Locationandnamesofsurroundingroadways;and

Parkingareas.

iii. Anoffertoleasefortheproposedlocation;

iv. Informationaboutthestore’scompliancewithlocalgovernmentzoning(andother)by‐laws;

v. Adescriptionofthestoragesystemtobeusedatthestore;and

vi. Adescriptionofthesecuritysystemtobeusedatthestore.

4. ReviewofApplication:TheNTLCCwillreviewtheapplicationpackagetodeterminewhattypeofrecommendationwillbemadetotheMinisterabouttheapplication.Thisreviewwillevaluatetheapplicationagainstthefollowing:

a. MeetsthelegislativeandregulatoryrequirementsoftheNorthwestTerritoriesandthelocalcommunitygovernment;

b. Willnotcreateriskstopublichealth,safetyorsecurity,includingtheriskofcannabisbeingdivertedtoanillicitmarketoruse;

c. Demonstratesaclearunderstandingofanticipatedstart‐upandoperatingcostsandestimatedrevenue;

d. Providesaclearstatementidentifyingsourceoffunds,includingallinvestors,andsatisfiesthefinancialneeds;

e. Providesaclearstatementconfirmingthatthefundsarelawfullyobtained;

f. Demonstrateseconomicviabilityoftheventure;

g. Identifiesandexplicitlyconfirmsthattheproposedsystemwillbeabletocompletecustomertransactions,maintaininventory,generatefilesforordering,reportingandremittingtaxesandreportingcannabissalesandpurchases;



h. Confirms,ifsystemsarepartofalargeraccountingframeworks,thatitwillkeeprecordsandreportingseparatefromotherbusinesspointsofsale;

i. ConfirmsthatreportswillbeabletobesubmittedinCSVformat;and

j. Establishthattherearenoothergroundsforrefusingtheapplication.

TheNTLCCwillprovidetheMinisterofFinancewitharecommendationforapprovalordenialforeachapplicationreceived.TheMinisterofFinancewillthenmakeadetermination,basedontheevaluationagainstthecriteriaincludedabove,whethertoapproveordenytheapplication.

5. AcceptanceandPre‐SaleStoreInspection:Aftertheapplicationhasbeententativelyapproved,apre‐salestoreinspectionwillberequired.Thisinspectionwillconfirmthattheinformationsubmittedaspartoftheapplicationprocesshasbeenmet.Inaddition,theapplicantwillberequiredtosubmitthefollowingpriortotheirformaldesignationasacannabisvendor:

a. ExecutedretailagreementwiththeNTLCCwhichincludesprovisionsdetailingrequiredreportingandtheauthorityoftheNTLCCtocompleteinspections;

b. Executedcopyoftheleaseagreementorcertificateoftitle,inthenameoftheapplicant;

c. Approveddevelopmentpermit;

d. Businesslicenseorwrittenapprovalofthemunicipality;and

e. Fireapproval/Righttooccupy.

6. DesignationasaCannabisVendor:Oncetheapplicanthassuccessfullycompletedalloftheabovesteps,theapplicantwillbeissuedconfirmationfromtheMinisterthattheyhavebeendesignatedasacannabisvendor.



APPENDIX 2 ‐ SENSORY DISPLAY CONTAINER GUIDELINES 1. Cannabisvendorsarepermittedtouseapprovedsensorydisplaycontainersforthe

purposesofallowingpatronstoexaminecannabisproductsbysightandsmell.Note:Sensorydisplaycontainersareknownasdisplaypodsorsniffjars.

2. Anapprovedsensorydisplaycontainermust:

a. betransparent;

b. belockable;

c. besecured(affixedortethered)totheshowcase/counter;

d. haveatamper‐proofcontainerthatpreventsaccesstothecannabisproductcontainedwithin;and

e. haveamaximumvolumenomorethan500ml.

3. Cannabisvendorsareprohibitedfromallowingpatronstophysicallyordirectlyhandlecannabisproducts.

4. Cannabisvendorsareonlypermittedtouseamaximumof15sensorydisplaycontainerscontainingcannabisproductondisplayatanygiventime.

5. Cannabisvendorsareonlypermittedtouseamaximumof2gramsofcannabisproductineachsensorydisplaycontainer.

6. Cannabisvendorsmustpurchasecannabisproductsfromtheirinventorytobeusedinsensorydisplaycontainers.

7. Cannabisproductsusedfordisplaypurposesareatcosttothecannabisvendorandmustbepurchasedthroughtheirpoint‐of‐salesystem.

8. Cannabisproductsusedfordisplaypurposesmustimmediatelybesecuredinsensorydisplaycontainers.

9. Onceacannabisvendorhaspurchasedcannabisproductsfromtheirinventoryfordisplaypurposes,thosecannabisproductsaredeemedtobeunsaleable,nolongereligibletobesold.

10. Allsensorydisplaycontainersmustbestoredinthesecurecannabisstorageroomoutsideofoperatinghours.

11. Cannabisvendorsareresponsibleformaintainingaccuraterecordsofallcannabisproductsusedfordisplaypurposes.Thesalesreceipts/invoiceindicatingallproductpurchasesmustberetainedbythecannabisvendor.

12. Cannabisvendorsmustmaintainasensorydisplaylogandrecordthefollowing:

a. productcode/Lot#/SKU;

b. nameofproduct;

c. quantityofproduct;

d. NTLCCinvoicenumber;



e. NTLCCinvoicedate;

f. datecannabisproductspurchasedfrominventory;and

g. datecannabisproductsremovedfromapprovedcontainer.

13. Thesensorydisplaylogmustberetainedonthecannabisvendor’spremisesforaperiodoftwoyears.

14. Cannabisvendorsmustensurecannabisproductsremaininsensorydisplaycontainersuntilnolongerusedfordisplaypurposes.

15. Cannabisproductsthatareremovedfromsensorydisplaycontainersmustberemovedfromthepremisesonthesamebusinessday.Thesecannabisproductscannotbestoredonthepremisesbeyondtheendofbusinessday.

16. Ifcannabisproductisbeingdisposedof,itmustberenderedunfitforuseorconsumption.



APPENDIX 3 ‐ CANNABIS STORE PHYSICAL SECURITY REQUIREMENTS 1. Aretailcannabisstoredesignationwillnotbeissuedtoanapplicantwhohasnotmetthe

physicalsecurityrequirementsforthepremises.

2. Aretailcannabisstoremustbeprotectedbyaprofessionallyinstalledandmonitoredalarmsystemthatcontains:

a. detectorstoindicateunauthorizedattemptstotamperwith,open,enterorpenetrateperimeterentrypoints,perimeterwindowsandsecurecannabisstorageroom;

b. detectorstoindicateunauthorizedmovementwithinthepremisesincludingthesecurecannabisstorageroom;

c. capabilitytodetectanyattemptstotamperwiththesystemormalfunctionswiththesystemwhichmustbeimmediatelyrepairedbyaprofessionaltechnician;

d. panic/robberybutton(s)installedatallpointofsalepositions.

3. Aretailcannabisstoremusthaveadigitalcamerasecuritysystemthatcontains:

a. camerasthatareenclosedintheceilingordomesandlinkedtoamonitorandrecordingsystemlocatedinasecureareawithinthepremises;

b. camerasandlightingmustbepositionedtoclearlycapture24hourcoverageofactivityidentifyingallindividualsentering/exitingthepremises,includingstaffareas,andallindividualswithinthepremisesincludingthe:

i. pointofsalearea(s);

ii. receivingarea(s);

iii. customerarea(s);and

iv. thesecurecannabisstorageroom.

c. systemmusthaveonpremises14dayminimumrecordingretentioninacommonformatthatiseasilyaccessible,captured,viewedandcapableofproducingrealtimedigitalcolourvideoandstillimagesthatclearlyidentifyindividualsandcontainatime/datestampnotobscuringtheimage;

d. recordingandviewingsystemmustbelocatedinasecurelocationwithinthepremisesalongwithamaintainedsurveillanceplanshowingcameranumbers,locations,coverage,authorizeduserslistandoperatinginstructions.

e. recordeddataandrelevantinformationmustbeprovidedtotheNTLCCandpoliceuponrequestandarenottobedestroyedifthecannabisvendorhasknowledge,orshouldhavehadknowledge,ofanypendingcriminalorregulatoryinvestigation.

f. systemmustbetestedweeklytoensureallcamerasandrecordingequipmentarefunctioningproperlyandalogofthetestresultsmustbekeptandavailabletotheNTLCCuponrequest.

g. allmalfunctionsmustbeimmediatelyrepaired.

4. Aretailcannabisstoremustsecureperimeterentrypointsagainstunauthorizedaccessby:



a. theuseofhollowmetaldoorswithmetalframeandtamperproofhingesatallentrypointsotherthanthecustomerentrance.

b. commercialgradenon‐residentiallocksonallaccesspointswithsecuredtamperproofstrikeplate.

c. customerentranceconstructedofcommercialgradematerialsufficienttosecureagainstunauthorizedaccess.

d. overheadreceivingdoorconstructedofcommercialgradematerialandlockingdevicesufficienttosecureagainstunauthorizedaccess.

e. perimeterlockingdevicesnotonamasterkeysystem.

5. Allcannabisorcannabisaccessoriesdisplayedinacustomerareamustbewithinasecureshowcasethatislockedatalltimesandaccessibleonlybyauthorizedstaff.

6. Allcannabisdisplayedwithinthelockedshowcasemustbeinitsoriginalsealedpackageoranapprovedcontainer.

7. Allcannabisaccessoriesnotdisplayedinacustomerareamustbestoredinalockedstorageroomaccessibleonlybyauthorizedstaff.

8. Allcannabisnotdisplayedinacustomerarea,andafteroperatinghoursalldisplayedcannabis,mustbestoredinalockedsecurecannabisstorageroomaccessibleonlybyauthorizedstaff.

9. Thesecurecannabisstorageroomcannotbeusedforanyotherpurposethanthestorageofcannabis,nootheritemsorequipmentmaybepresentintheroom.



APPENDIX 4 ‐ INSPECTIONS AND ENFORCEMENT

General Information

1. AcannabisvendormustgiveNTLCCInspectorsfullandunrestrictedaccesstothevendorpremisesatanyreasonabletime(i.e.duringregularbusinesshoursoratanothertimewhenpeoplearepresent).

2. AcannabisvendorandtheirstaffmustnotinterfereinanywaywithNTLCCInspectorsperformingtheirduties.Thecannabisvendorisrequiredtocooperatefully,includingansweringallreasonablequestionsregardingthemanagementandoperationofthepremises.

3. AcannabisvendormustallowNTLCCInspectorsandofficialstoexamineandmakecopiesofallrecords,andifnecessary,toremoverecordsfromthepremisesforfurtherreview.

4. WhenanNTLCCInspectorfindsacannabisvendorincontraventionoftheNTLCCoranyrelevantlegislation,theInspectormayrequestthecannabisvendortotakeappropriatestepstocomplywiththelegislationorpolicy.

5. AnyallegedviolationobservedbyanNTLCCInspectororareportofpotentialproblemsreceivedfrompolice,fire,health,othergovernmentofficialorthegeneralpublicwillbeinvestigatedandmayresultinanIncidentReportorpossiblecriminalchargesbypoliceorbytheNTLCC.

Guidelines

1. NTLCCInspectorsvisitthepremisesofcannabisvendorsto:

a. checkforcompliancewiththeNTLCCpoliciesandrelevantterritorialandfederallegislation;

b. confirmnostructuralchangeshavebeenmadetothepremisesaffectingcompliancewiththelicence;

c. investigatecomplaints;

d. conductauditsoncannabisvendorbooksandrecords;

e. respondtocannabisvendorconcernsabouttheoperationofthepremises.

2. AllNTLCCInspectorscarryphotoidentificationwhileonduty.AcannabisvendormayasktoseeanInspector'sidentificationbeforeprovidinganyinformation.

3. NTLCCInspectorsareavailabletomeetwithcannabisvendorstoassistthemintheinterpretationoflegislationandNTLCCpolicies;however,Inspectorsmayreportanyviolationstheyobserve.

4. TheNTLCCsupportsandencouragespolice“walkthrough”programs.EverypoliceofficerisconsideredanInspectorundertheCannabisProductsAct,andcannabisvendorsandtheirstaffarerequiredtocooperatefullywithpoliceofficerswhoenterthecannabisvendor’spremises.



Cannabis Seizure and Analysis

2. Unauthorizedorillegalcannabisisnotpermittedinacannabisvendor’spremises.

3. Unauthorizedorillegalcannabisincludes,butisnotlimitedto,cannabisthat:

a. hasbeenobtainedfromanunauthorizedsource;

b. hasbeenalteredinanymanner;

c. isnotcontainedinitsoriginalsealedpackageorNTLCCapprovedcontainer;

d. iscontainedinapackagethathasbeentamperedwith;or

e. iscontainedinapackagewithanalteredorunauthorizedlabel.

4. Anyunauthorizedorillegalcannabisproductsfoundinacannabisvendor’spremisewillbeseizedimmediatelybyanInspector.

5. Ifcannabisisseized,anInspectorwillsubmitareportwhichmayresultindisciplinaryactionuptoandincludingsuspensionorcancellationoflicenceand/orterritorialorfederalcharges.

Documents

NWT Retail Cannabis Framework - ntlcc.ca · No, the licensing of cannabis consumption in lounges is not permitted in the NWT. The GNWT’s objective is to provide, through the NWT