23

 


 

Second Session, 48th General Assembly

66 Elizabeth II, 2017

BILL 23

AN ACT TO AMEND THE LIQUOR CORPORATION ACT

Received and Read the First Time.................................................................................................

Second Reading.................................................................................................................................

Committee..........................................................................................................................................

Third Reading.....................................................................................................................................

Royal Assent......................................................................................................................................

HONOURABLE TOM OSBORNE

Minister of Finance and President of Treasury Board

Ordered to be printed by the Honourable House of Assembly

 

EXPLANATORY NOTES

This Bill would amend the Liquor Corporation Act to give the Newfoundland and Labrador Liquor Corporation the authority to

·         buy, import and sell cannabis;

·         control the possession, sale and delivery of cannabis;

·         establish, maintain and operate cannabis stores; and

·         issue licences for the possession, sale and delivery of cannabis.

The Bill would also give the minister the authority to set fees and establish forms for the purpose and administration of the Act.


A BILL

AN ACT TO AMEND THE LIQUOR CORPORATION ACT

Analysis


        1.   S.2 Amdt.
Interpretation

        2.   S.11 R&S
Conflict of interest

        3.   S.33 R&S
Power to deal in liquor and cannabis

        4.   S.34.1 Added

              Licence re: cannabis

        5.   S.41 R&S

              All money to be paid to corporation

        6.   S.45 Amdt.

              Purchases by corporation

        7.   S.46 Amdt.

              Prices

        8.   S.55 Added

              Fees and forms


Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

RSNL1990 cL-19 as amended

        1. Subsection 2(1) of the Liquor Corporation Act is amended by adding immediately after paragraph (f) the following:

          (f.1)  "cannabis" means

                      (i)  a cannabis plant,

                     (ii)  any part of a cannabis plant, including the phytocannabinoids produced by, or found in, a cannabis plant, regardless of whether that part has been processed or not, other than a part of a cannabis plant referred to in subparagraphs (v) to (viii),

                    (iii)  any substance or mixture of substances that contains or has on it any part of a cannabis plant, and

                    (iv)  any substance that is identical to any phytocannabinoid produced by, or found in, a cannabis plant, regardless of how the substance was obtained,

but does not include

                     (v)  a non-viable seed of a cannabis plant,

                    (vi)  a mature stalk, without any leaf, flower, seed or branch of a cannabis plant,

                   (vii)  fibre derived from a stalk referred to in subparagraph (vi), or

                  (viii)  the root or any part of the root of a cannabis plant;

          (f.2)  "cannabis plant" means a plant that belongs to the genus Cannabis;

          (f.3)  "cannabis store" means a store established, maintained and operated by the corporation under this Act to sell cannabis;

 

        2. Section 11 of the Act is repealed and the following substituted:

Conflict of interest

      11. (1) A member of the board or an officer of the corporation shall not, directly or indirectly, individually or as a member of a partnership or corporation, have an interest in or receive a benefit, directly or indirectly, from

             (a)  the manufacture, sale or distribution of, or other dealing in, alcoholic liquor or cannabis or in an undertaking in which alcoholic liquor or cannabis is required;

             (b)  premises in respect of which an existing licence has been issued under this Act, the Liquor Control Act or a regulation made under that Act;

             (c)  a contract or other arrangement in respect of premises upon which alcoholic liquor or cannabis is manufactured, produced, sold or kept for sale; or

             (d)  purchases or sales made by the corporation or by persons authorized under this Act or the Liquor Control Act or a regulation made under that Act to purchase or sell alcoholic liquor or cannabis.

             (2)  Nothing in subsection (1) prevents a member of the board, an officer or other employee of the corporation from purchasing and having in his or her possession for the personal use of himself or herself or his or her family alcoholic liquor or cannabis which he or she may lawfully purchase under this Act, the Liquor Control Act or a regulation made under that Act.

 

        3. Section 33 of the Act is repealed and the following substituted:

Power to deal in liquor and cannabis

      33.           The corporation may

             (a)  buy, import and have in its possession for sale and sell alcoholic liquor, cannabis or articles associated with alcoholic liquor or cannabis in the manner set forth in this Act;

             (b)  control the possession, sale and delivery of all alcoholic liquor and cannabis in accordance with this Act;

             (c)  manufacture, blend, package, mix, dilute or otherwise prepare for sale alcoholic liquor;

             (d)  with the prior approval of the minister,

                      (i)  establish, maintain and operate liquor stores at the places in the province that may be considered advisable for the sale of liquor in accordance with this Act,

                     (ii)  establish, maintain and operate cannabis stores at the places in the province that may be considered advisable for the sale of cannabis in accordance with this Act,

                    (iii)  establish liquor agencies at approved premises authorizing those agencies to sell liquor or specified kinds of liquor in accordance with the regulations, or

                    (iv)  establish liquor stores, cannabis stores and liquor agencies in the same locality;

             (e)  prescribe, subject to the approval of the minister, the days on which liquor stores are to be closed for business and on which liquor may not be sold at liquor agencies, and different days may be prescribed for different liquor stores or liquor agencies in the province;

             (f)  prescribe, subject to the approval of the minister, the days and hours during which liquor stores are to be open for business and liquor may be sold at liquor agencies, prescribe those days and hours in respect of the whole or part of a year, a specified time or a specified occasion, and prescribe different days and hours for different liquor stores and different liquor agencies in the province;

             (g)  prescribe, subject to the approval of the minister, the days and hours during which cannabis stores are to be open for business, prescribe those days and hours in respect of the whole or part of a year, a specified time or a specified occasion, and prescribe different days and hours for different cannabis stores in the province;

             (h)  acquire, by deed, grant, lease or in other ways, land, a building or other property whether real or personal required for the operation of this Act or the Liquor Control Act;

              (i)  buy or lease all plant and equipment it may consider necessary and useful in carrying into effect the objects and purposes of this Act or the Liquor Control Act;

              (j)  employ the casual labour that may be required and engage the services of experts and persons engaged in the practice of a profession, where considered expedient;

             (k)  determine the nature, form and capacity of all packages to be used for containing alcoholic liquor kept or sold under this Act and the Liquor Control Act; and

              (l)  do all the things that are considered necessary or advisable by the corporation for the purpose of carrying into effect this Act and the regulations or the Liquor Control Act.

 

        4. The Act is amended by adding immediately after section 34 the following:

Licence re: cannabis

   34.1 (1) The board may grant to a person a licence to possess, sell or deliver cannabis.

             (2)  The board may issue different classes of licences and set out the terms and conditions of a licence.

             (3)  An application for a licence shall be made to the board in the form and manner set by the board.

             (4)  A licence shall only be granted under this section to

             (a)  an individual or a group of individuals, where that individual or each member of the group of individuals is at least 19 years of age; or

             (b)  a corporation or partnership authorized to carry on its business in the province whose officer or agent in charge of the premises for which the licence is required is at least 19 years of age.

             (5)  The board shall not grant a licence under this section where

             (a)  the applicant has not paid the required fee;  

             (b)  the applicant has not satisfied the requirements in subsections (3) and (4);

             (c)  the board, in the board's absolute discretion, is of the opinion that the applicant is not a fit and proper person to keep and operate a premises where cannabis will be sold;

             (d)  the board reasonably believes that

                      (i)  the applicant is applying on behalf of a beneficial owner, and

                     (ii)  the beneficial owner does not satisfy the requirements of this Act;

             (e)  the board reasonably believes that the past conduct of the applicant establishes reasonable grounds for the belief that the applicant will not carry on business in accordance with the law and with integrity and honesty;

             (f)  the applicant is carrying on activities that are, or will be, where the applicant is licensed, in contravention of this Act;

             (g)  the granting of the licence would not be in the public interest having regard to the needs and wishes of the public in the community in which the premises will be located;

             (h)  the applicant and where the applicant is a corporation, the officer or agent in charge of the premises for which the licence is required, has been convicted within the 5 years preceding the application for a violation of

                      (i)  the Excise Tax Act (Canada) or the Customs Act (Canada) with respect to offences relating to liquor or cannabis,

                     (ii)  the Controlled Drugs and Substances Act (Canada) with respect to trafficking in a controlled substance within the meaning of that Act,

                    (iii)  the Food and Drugs Act (Canada) with respect to trafficking in a controlled or restricted drug or possession for the purposes of trafficking in a controlled or restricted drug, or

                    (iv)  the Criminal Code (Canada) for an offence punishable by imprisonment of one year or more; or

              (i)  the management, equipment, accommodations and facilities of the applicant's premises

                      (i)  do not conform with the licensing standards and operational requirements as determined by the corporation,

                     (ii)  do not conform with the laws and regulations of the province, or

                    (iii)  have not been approved in writing by an inspector appointed under the Liquor Control Act.

             (6)  Where the annual licence fee has been paid, a licence is considered to be renewed annually on April 1 and continues in effect unless it is

             (a)  revoked at the request of the licensee;

             (b)  revoked due to a period of inactivity; or

             (b)  suspended or revoked by the board.

             (7)  The board may suspend or revoke a licence granted under this section, where in its opinion there exists a reasonable cause for doing so, but whenever it suspends or revokes a licence, it shall, at the request of the licensee, provide to him or her in writing the reason for the suspension or revocation.              

             (8)  The board may, in its discretion, limit the number of licences granted under this section.

 

        5. Section 41 of the Act is repealed and the following substituted:

All money to be paid to corporation

      41. All money received from the sale of alcoholic liquor and cannabis accruing in the administration of this Act shall be paid to the corporation.

 

        6. Subsection 45(1) of the Act is repealed and the following substituted:

Purchases by corporation

      45. (1) An order for the purchase of alcoholic liquor or cannabis by the corporation shall be authorized by those officers of the corporation that may be designated by the board, and an order shall not be valid or binding unless so authorized.

 

        7. Subsection 46(1) of the Act is repealed and the following substituted:

Prices

      46. (1) The board may fix the prices at which the various classes, varieties and brands of spirits, wine, beer and cannabis are to be sold and different prices may be prescribed under this subsection in respect of beer sold to the corporation, to a licensee and to the public.       

 

        8. The Act is amended by adding immediately after section 54 the following:

Fees and forms

      55. The minister may set fees and establish forms for the purpose and administration of this Act.