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

Your Sovereignty Your Prosperity Our Mission Mohawks of the Bay of Quinte Community Forum on The Cannabis Control Law Sara Mainville, Partner Jaclyn McNamara, Associate, October 22, 2019

SHE:KON/GREETINGS  Cannabis legalization on October 17, 2018  Prior to legalization, Council met with the community regarding the development of our own law on June 5, 19 & 30, 2018  On October 16, 2018, Council passed the Interim Cannabis Control Regulation  Council has developed a permanent Cannabis Control Law, which will be subject to a (Nov 16 th ) Ratification Vote in the community 2

Drafting Your Law  Cannabis Act Legalization:  “if the person is authorized to sell cannabis under a provincial Act..”  “Unless authorized by this Act…”  All other activity is illegal – “watertight” opinion of Canada that all cannabis commercial activity must be done by a federal/provincial licencee  MBQ Licencing will:  Protect the commercial interests of business with licences;  Protect the consumer interests of MBQ members, residents, and visitors;  Share in the risk/reward of licenced cannabis activity for the community to benefit;  Protect the health and safety for the MBQ community.

Changes in the Law were made  After the September Forum we have made the following changes to the Law:  Section 8.1 – cultivation licences not solely from Health Canada, also from TMCC Board  Section 13.2 – Board members not required to be 21 years old, age requirement now 19 years old.  We took the residency requirements out from 16.18 – for licence holders, non-resident members should also be allowed to be licence-holders.  Transition – the Board established after November vote (if passed) will have to July 2, 2020 as a transition period.

Why the Law is Necessary and Self- Regulation isn’t working  Known Risks of Status Quo:  Influx of cash and attraction to organized crime;  Transparency of stores and who/what is supplying the existing stores (product origins, fuelling organized crime, laundering of proceeds of crime)  Whose standards in production, labelling, and testing?  Quality of the Cannabis Employment?  Cash in the stores incentivizes robberies  Grey/black market employment may be a problem in the future  Ability to cross the US/Canada border

Cannabis Control Law - Purposes  Protect the health and safety of the Tyendinagaro:non and other persons on the Territory, in particular young persons under the age of 19  Protect the jurisdictional integrity of the Tyendinaga Mohawk Territory  Facilitate a regulated and controlled cannabis industry that will promote and enhance socio- economic development, fiscal self-sufficiency and overall benefit to the Tyendinagaro:non and for the Tyendinaga Mohawk Territory

Cannabis Control Law – Purposes Cont.  Provide for the legal cultivation, processing, extraction, production, distribution, and sale of quality-controlled cannabis, include lab and testing facilities, within and from the Tyendinaga Mohawk Territory  Deter illicit and illegal activities in relation to cannabis, particularly with respect to the involvement of organized crime  Balance the interests of those Tyendinagaro:non who are concerned about legal cannabis in the Tyendinaga Mohawk Territory with the interests of the community members who support the regulated cultivation, processing, extraction, production, distribution, sale, possession, and use of cannabis in the Tyendinaga Mohawk Territory  Provide an overall benefit to the Tyendinaga Mohawk Territory

Cannabis Control Law - Application  The Law applies to:  All businesses engaged in the activities of cultivation, processing, extraction, production, and distribution, as well as medical cannabis dispensaries or storefronts engaged in the sale of cannabis, that are on the Tyendinaga Mohawk Territory  All activities relating to the transportation and delivery of cannabis for a commercial purpose within, into and from the Tyendinaga Mohawk Territory; and  All persons and business entities with an interest in commercial cannabis activity situated or found within the Nation’s treaty lands and Territory

Cannabis Control Law  Unless it is authorized under the Tyendinaga Mohawk Cannabis Control Law and regulatory framework, the cultivation, processing, extraction, production, distribution and sale of cannabis; or, any other related activity for a commercial purpose, within and from the Tyendinaga Mohawk Territory is prohibited.  A licence issued by a province or other regulatory authority outside the lands of the Tyendinaga Mohawk Territory has no validity within the Territory unless the licence holder has also been granted a licence of authorization under this Law.

Cannabis Control Law – Licenses  Standard Cultivation License  Micro-cultivation License  Standard Processing License  Micro-processing License  Production License  Distribution License  Retail License  Medical Dispensary License

Supply Chain Example Cultivator Processor Distributor Retail Store

License Holder Requirements (1)  Each license holder must fit into one of the following categories:  An individual who:  Is Tyendinagaro:non  Has attained the full age of 19 years  Is a resident within the Tyendinaga Mohawk Territory, and  has no criminal record for an indictable offence, or has been granted a pardon for said indicatable offence  A band-empowered entity, corporation or partnership that is wholly owned and operated by one or more individuals who meet the above criteria

License Holder Requirements (2)  A band-empowered entity, corporation or partnership in which the Council and one or more business entities share a commercial interest  A partnership where 51% or more of the ownership is held by any entity described in the previous two bullet points Note that the Board has the authority to issue a License to an entity that is located outside the treaty lands and territory, as long as the Board is satisfied that there is a benefit to the Community or the Tyendinagaro:non for doing so, and that the license will be recognized by other necessary authorities in that location.

License Holder Requirements (3)  The Board has the discretion to waive the limitation preventing individuals with a criminal record for an indictable offence for which they have not been granted a pardon from being or owning an interest in a licence holder, if:  the Board is of the view that the indictable offence(s) in question have no impact on the licence holder’s ability to operate the business contemplated by the licence or fulfill the obligations contained therein, taking into consideration (1) the circumstances of the offence; (2) the character of the licence holder; and (3) the impact on the safety and reputation of the community.  The Board cannot waive this limitation where the indictable offence(s) in question relate to organized crime or drug trafficking

Cultivation and Processing  All cultivation and processing facilities must be inspected, certified and licenced by the health and safety authorities designated by the Board, which may include Health Canada officials

Cannabis Control Law – Retail Licenses  Retail stores cannot be located in a restricted public area, which includes:  See Schedule (List of restricted places)  Retail stores also cannot be located in an area where it is likely to disturb or endanger the community or the Tyendinagaro:non, as determined by the Board  The holder of a Recreational Retail License must not sell, barter, give or exchange cannabis:  to an individual who is not 19 years of age or older  to an individual who appears to be intoxicated  to any individual who is not a consumer, especially if that individual may be a source of illicit supply to organized crime or persons under the age of 19 years old  in an amount that exceeds the amount prescribed by the Board regulations, and  that is not obtained from a company with a Distribution Licence, Processor Licence, or Production Licence.

Cannabis Control Law Powers of the Chief and Council  Create, amend the Law and regulations;  Appoint and remove Board members;  Set the Board’s annual budget and remuneration of the Board members 17

Cannabis Control Board  The Tyendinaga Mohawk Cannabis Control Board will be established as the regulatory body that will administer this Law and the accompanying regulations in the best interests of the Tyendinagaro:non  The Board will:  Issue, suspend, and revoke the licenses provided for in the Law  Regulate, monitor, investigate and inspect all premises and activities of the license holders  Make any decision and take any action necessary to fulfill the purposes of the Law  The Board can limit the number of licensed issued in any category 18

Cannabis Control Board Structure  The Board will operate at arm’s length from Council  The Board will be comprised of up to 5 members, 2 of whom will be selected and appointed by Council and 3 of whom will be elected from an electoral list of eligible Tyendinagaro:non  All 5 members of the Board shall not possess a criminal record for an indictable offence for which they have not received a pardon, and consent to further background checks as deemed necessary by the Council, as well as provide written personal references that are suitable for the position of a good standing member of the community, with good judgment.