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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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);
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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
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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;
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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;
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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.
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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;
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e. NTLCCinvoicedate;
f. datecannabisproductspurchasedfrominventory;and
g. datecannabisproductsremovedfromapprovedcontainer.
13. Thesensorydisplaylogmustberetainedonthecannabisvendor’spremisesforaperiodoftwoyears.
14. Cannabisvendorsmustensurecannabisproductsremaininsensorydisplaycontainersuntilnolongerusedfordisplaypurposes.
15. Cannabisproductsthatareremovedfromsensorydisplaycontainersmustberemovedfromthepremisesonthesamebusinessday.Thesecannabisproductscannotbestoredonthepremisesbeyondtheendofbusinessday.
16. Ifcannabisproductisbeingdisposedof,itmustberenderedunfitforuseorconsumption.
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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:
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a. theuseofhollowmetaldoorswithmetalframeandtamperproofhingesatallentrypointsotherthanthecustomerentrance.
b. commercialgradenon‐residentiallocksonallaccesspointswithsecuredtamperproofstrikeplate.
c. customerentranceconstructedofcommercialgradematerialsufficienttosecureagainstunauthorizedaccess.
d. overheadreceivingdoorconstructedofcommercialgradematerialandlockingdevicesufficienttosecureagainstunauthorizedaccess.
e. perimeterlockingdevicesnotonamasterkeysystem.
5. Allcannabisorcannabisaccessoriesdisplayedinacustomerareamustbewithinasecureshowcasethatislockedatalltimesandaccessibleonlybyauthorizedstaff.
6. Allcannabisdisplayedwithinthelockedshowcasemustbeinitsoriginalsealedpackageoranapprovedcontainer.
7. Allcannabisaccessoriesnotdisplayedinacustomerareamustbestoredinalockedstorageroomaccessibleonlybyauthorizedstaff.
8. Allcannabisnotdisplayedinacustomerarea,andafteroperatinghoursalldisplayedcannabis,mustbestoredinalockedsecurecannabisstorageroomaccessibleonlybyauthorizedstaff.
9. Thesecurecannabisstorageroomcannotbeusedforanyotherpurposethanthestorageofcannabis,nootheritemsorequipmentmaybepresentintheroom.
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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.
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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.