Cannabis Licensing and Application Process

Cannabis Retail Licensing

The AGCO is responsible for administering the Cannabis Licence Act, 2018 and its regulation, which comprise the  licensing and regulatory regime for most aspects relating to the retail sale of recreational cannabis in Ontario. The following information is intended to assist you in applying for a CROL, a CRSA and/or a CRML.

Things to Know Before You Begin

Processing Times

  • The AGCO has a dedicated cannabis licensing team to work with CROL, CRSA and CRML applicants.
  • Applications must be submitted online through the iAGCO portal and include all the required information.
  • Circumstances that may result in longer than usual processing times for CROL applications include:
    • Higher risk applicant eligibility factors requiring closer inspection (e.g. criminal, financial and other applicant/affiliate background considerations). For more information, please see the Cannabis Retail Licences and Authorization section of this Guide
    • Complex corporate structure
    • Incomplete application submissions requiring multiple discussions with the applicant. For more information, please see the Application Process section of this Guide
    • Applicant delays in responding to the AGCO when it requests clarifications or further information
    • Applicant delays in providing the AGCO with fully executed agreements with third parties and disclosure information on all parties with an interest in the business
  • Circumstances that may result in longer than usual processing times for CRSA applications include:
    • Incomplete application submissions requiring multiple discussions with the applicant
    • Applicant delays in responding to the AGCO when it requests clarifications or further information
    • High volume of written submissions received through the public notice process
    • The store is not ready for pre-authorization inspection
    • The store does not meet pre-authorization inspection requirements.
  • Please note that the CRSA application will not be approved if it is in a municipality that has opted out of having cannabis retail stores.

 

Licence Holder Responsibilities

For complete details about your legal responsibilities as a CROL, CRML or CRSA holder, refer to the Cannabis Licence Act, 2018 and its regulation which is available online or by contacting Publications Ontario at 416-326-5300 or toll-free at 1-800-668-9938.

 

Personal and Entity Disclosure Requirements

There are personal and entity disclosure requirements when applying for a CROL, CRSA and CRML. Entity/individual disclosure information must also be provided by applicant corporations and by all corporations directly or indirectly holding 10% or more of shares. For more information, see the Personal and Entity Disclosure Requirement Guide.

Municipal Requirements

Prior to applying for a CRSA, please check with your local municipality to ensure that your premises meets municipal requirements for retail stores and that it is not a municipality that has opted out of cannabis retail sales.    

 

Public Notice

Once a complete CRSA application is received by AGCO:

  1. The applicant will be notified, via iAGCO, that they have 24 hours to post a placard at the location of the proposed retail store location.  The placard must be posted for 15 calendar days and it will indicate that an application has been submitted for a cannabis retail store at that location.
  2. All CRSA applications that are undergoing the public notice process will be searchable on the AGCO’s iAGCO portal.

After the public notice period has ended, the AGCO will provide the applicant with copies of any written submissions received from local residents and from the municipality as a result of the public notice process in response to the application. Authorization applicants will have five (5) calendar days to provide a written response to the Registrar related to any written submissions received from local residents and/or the municipality and the Registrar will consider the applicant’s response, if any.

  • Relevant submissions are limited to the following matters of public interest:
    • Protecting public health and safety 
    • Protecting youth and restricting their access to cannabis
    • Preventing illicit activities in relation to cannabis.
       

For more information on the public notice process, please see the Public Notice for a Cannabis Retail Store Authorization section of this guide.

 

Application Process for Operating a Cannabis Retail Store on a First Nations Reserve

To operate a retail store and sell recreational cannabis in a store on a First Nations reserve, you must apply for a CROL and a CRSA.
•    You may only apply for a CROL and a CRSA if you submitted a complete CRSA application online form through iAGCO .
 

To be eligible to obtain a CRSA Retail Store Authorization, applicants for a cannabis retail store to be located on a First Nations reserve must demonstrate that the band council has approved the location of the prospective cannabis retail store.

A band council resolution must:

  • Be uploaded as a requirement to complete the Retail Store Authorization Intent to Apply
  • Approve the location of the store on the reserve

To receive a CROL or CRSA  for a cannabis retail store to be located on a First Nations reserve, a prospective operator must also meet all the requirements of the Cannabis Licence Act, 2018. 

For more information about the application process for operating a cannabis retail store on a First Nations reserve, please see the Application Process for a Cannabis Retail Store on a First Nations Reserve web page.

 

Fees and Payment

Licence and Authorization Fees

  1. Fee
    • You must pay the required fee when you first apply for a cannabis retail-related licence or authorization.
    • The fees for a CROL for a CRSA or for a CRML are for a two-year period, after which time you will have to renew them. 
    • Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable. 
  2. Renewal Fee
    • If you wish to continue operating your business or being employed as a retail manager, you will have to pay a renewal fee before your licence or authorization expires.
    • The renewal fee covers some of the ongoing costs of regulation, which includes activities such as inspection, and customer service support.
    • When you renew, you can select a two-year or four-year renewal term for any of the three licence or authorization types. There is no difference in the overall cost per year.
    • Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable. 

Fee Payment

  • When using online services, all payments under $30,000 must be made by Visa, MasterCard, Visa Debit or MasterCard Debit.
  • Payments of $30,000 or more must be made by money wire transfer or electronic funds transfer. For more information, please contact AGCO Customer Service at 416-326-8700 or 1-800-522-2876.
  • Cheques and cash are not accepted as forms of payment when using iAGCO online services. 
  • Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable. 
  • Additional fees may be required for investigations.

For more information, visit the Fees and Payment section of this Guide.

Important Notice

  • Each statement made in your application is subject to verification.
  • It is a serious matter to knowingly provide false information on the forms and on any attachments. The provision of false, incomplete, or misleading information or the omission of information on the forms or in the documents submitted with your application, or the failure to notify the Alcohol and Gaming Commission of Ontario of any material changes to this information which occur after this application is filed, may also result in the refusal, suspension or revocation of your licence.
  • If you require assistance with your application, please contact AGCO Customer Service at 416-326-8700 or 1-800-522-2876

The Ontario Cannabis Store

The Ontario Cannabis Retail Corporation (OCRC), operating as the Ontario Cannabis Store (OCS), is the exclusive wholesaler of cannabis in Ontario to authorized private retail stores. Private retailers can only purchase cannabis from the OCS.  Retail store operators will be required to enter into a wholesale supply agreement with the OCS in order to begin purchasing cannabis for resale in their authorized stores. 

Retail store operators should contact the OCS once they have been issued their CROL from the AGCO.  For more information, visit learn.ocswholesale.ca or call 1-877-627-1627.

Cannabis Retail Licences and Authorizations

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The following licences/authorizations are required for the operation of a cannabis retail store(s) in Ontario:

Cannabis Retail Operator Licence

To operate a retail store and sell recreational cannabis, you must apply for a CROL. To get this licence, you must meet all of the eligibility criteria set out in the Cannabis Licence Act, 2018 and its regulation.

Eligibility

For full details on the eligibility requirements for a CROL please refer to the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores.

Additionally, a person is not eligible for a CROL:

  • If the AGCO is not satisfied that you will exercise sufficient control, either directly or indirectly, over the cannabis retail business
  • If you are in default of filing a tax return under a tax statute administered and enforced by the government of Ontario, or have any outstanding amounts owing and past due of tax, penalty or interest under those laws and have not made payment arrangements
  • If you have a business number with the Canada Revenue Agency and have not filed a tax return under certain Federal or provincial legislation
  • If the application will be made by a corporation and more than 25 percent of the corporation is owned or controlled, either directly or indirectly, by a licensed producer or their affiliate.   

All applicants and interested parties are subject to background checks as part of the eligibility review process.

For more information about CROL fees, see the Fees and Payment section of this Guide.

Once approved, you will receive a CROL which will contain your licence number, expiry date and any conditions on the licence.

Note:  The CROL is NOT a licence to produce cannabis.  For more information on becoming a licensed producer, please visit the website at Health Canada.

Cannabis Retail Store Authorization

To operate a cannabis retail store, you must have a CRSA. 

The submission of a CRSA application does not guarantee its approval. The determination that a CRSA application satisfies requirements is made based on all information available at the time of issuance of the CRSA.

The Cannabis Licence Act, 2018 and its regulation require that each store meet certain requirements. Requirements relate to such matters as the store layout and location.

Residents of the municipality in which the proposed store would be located have an opportunity to provide their input through the public notice period.

Before applying for a CRSA, you must have submitted an application for a CROL or hold a CROL issued by the AGCO. 

A proposed retail store:

  • Must be located in a municipality that permits cannabis retail stores.
  • Cannot be located near a school or private school, as defined in the Education Act, if the proposed retail store is less than 150 metres away from the school. This will be determined as follows:
    • when the school or private school is the primary or only occupant of a building, 150 metres shall be measured from the property line of the property on which the school or private school is located. 
    • when the school or private school is not the primary or only occupant of a building, 150 metres shall be measured from the boundary of any space occupied by the school or private school within the building.

The distance between a proposed retail store and a school or private school is measured by a straight line from the closest point of the school property or boundary as described above to the closest point of the proposed retail store.

If either the store and/or the school is located on a floor other than the ground floor or main level in its respective building, the measure of the 150 metre distance may take into account the vertical distance in assessing compliance with this requirement.

The above rules do not apply if the private school is located on a reserve or if the private school only offers classes through the Internet.

All retail store locations will be required to undergo a 15-day public notice process. For more information, see the Public Notice for a Cannabis Retail Store Authorization section of this guide. The public notice process is not required for stores on First Nations reserves. The approval of the location of the store is provided by the band council by way of a resolution. 

For more information, see the Retail Store Location section of this guide.

Please refer to the Cannabis Licence Act, 2018 and its regulation for a list of full requirements.

Eligibility

For full details on the eligibility requirements for a CRSA, please refer to the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores.

Some of the requirements for an applicant to be eligible for a CRSA include:
•    the applicant must not have made a false statement or provided false information in the application.
•    the premises, equipment and facilities of the proposed store are not in compliance with the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores
•    the issuance of the authorization has been deemed to be in the public interest (i.e. protecting public health and safety, protecting youth and restricting their access to cannabis, and preventing illicit activities in relation to cannabis).
 

An LP and its affiliates are eligible to apply for a single CRSA. The proposed cannabis retail store must be located on or within the site set out in the federally issued production licence.

For more information, see the Retail Store Authorization section of this guide.

For more information about CRSA fees, see the Licence and Authorization Fees section of this Guide.

Prior to starting a CRSA application, we recommend that you:

  • Contact the municipality where the store will be located and confirm that the proposed retail store meets local municipal requirements for retail store siting
  • Ensure you have applied for or hold a CROL and have the application file number or licence number ready (both applications may be submitted at the same time)
  • Review the Registrar’s Standards for Cannabis Retail Stores, the Cannabis Licence Act, 2018 and its regulations to ensure you understand the requirements for your store
  • Ensure that the operating name of the proposed retail store complies with all applicable federal/provincial legislation related to advertising and promotion.
The Registrar’s decision to issue or not issue a CRSA is final.

Cannabis Retail Manager Licence

A CRML licence is required by any individual of each retail store location and/or anyone who wish to perform one or more of the following functions in a cannabis retail store:

  • Supervising or managing employees of a cannabis retail store;
  • Overseeing or coordinating the sale of cannabis;
  • Managing compliance issues in relation to the sale of cannabis;
  • Having signing authority to purchase cannabis, enter into contracts or make offers of employment.

For more information, visit the Cannabis Retail Manager Licence section of this Guide.

For full details on the eligibility requirements for a CRML please refer to the Cannabis Licence Act, 2018 and its regulation.

Some of the eligibility requirements that an applicant must meet include:

  • Be at least 19 years of age
  • Conduct their business (or their duties as retail store manager) in accordance with the law, and with honesty, integrity and in the public interest
  • Have no convictions or charges under the Cannabis Licence Act, 2018, or certain sections of the Cannabis Control Act, 2017 and the Cannabis Act (Canada)
  • Not have, or previously had, roles or connections with a criminal organization as defined in subsection 467.1(1) of the Criminal Code (Canada) (i.e. the applicant must not be, or have been, a member of the criminal organization; involved in the criminal organization; or contribute, or have contributed to, the activities of the organization)
  • Not have made a false statement or provided false information in your application.

All applicants are subject to background checks as part of the eligibility review process.

For more information about CRML fees, see the Fees and Payment section of this Guide.

To submit your online application, the following information will be required:

  • Social Insurance Number
  • Personal History for all employment and/or unemployment (including education, parental leave, etc.).  You must use the form provided in the online application.

Holders of CROL must keep an up-to-date record of each location for which their CRMLs are accountable. The record must be made readily available for review upon the request of AGCO Inspectors.

Educational requirements

Under Ontario law, all cannabis retail employees, managers and store authorization holders are required to successfully complete an AGCO Board-approved cannabis retail employee training program prior to their first day of work in the store.

Individuals required to complete the training include:

•    Holders of CRSAs;
•    Holders of CRMLs(Store Managers);
•    Any other individuals who work in a cannabis retail store, including those completing deliveries
•    Individuals providing security services
 It is the responsibility of the CRSA holder to ensure that all employees have met this educational requirement. 

The AGCO Board has approved two cannabis retail employee training programs:

  1. CannSell ($69.99+HST) 

  2. CTC 1: Cannabis Retail Certification Program ($64.99+HST)

     

All AGCO Board approved programs train cannabis retail employees on the safe and responsible retail sale of cannabis. The training programs take approximately four hours to complete and are delivered online in both English and French. Learners must score at least 80% on the final exam in order to successfully complete the program. 

Application Process

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How to Apply for a Cannabis-related Licence or Authorization

Cannabis-related applications will be accepted online only via iAGCO.

iAGCO is the AGCO’s online service delivery portal that offers its customers a convenient and digital way of doing business with the Commission. To access services from the iAGCO portal, you must first create an account and login. 

Once an account has been created and you are logged in, the portal can be used to apply for, and manage and view the status of your cannabis-related licences and authorizations, including applications, renewals and modifications.

For more information on iAGCO, please visit the iAGCO Information page.

 

Applying for a Cannabis Retail Operator Licence 

In addition to submitting an online application via the iAGCO portal, you will need to provide supporting information/documentation.

If you are applying for a CROL, prior to the Licence being issued (i.e. your licence cannot be issued without the required documentation):

  1. Tax Compliance Verification (TCV) Confirmation Code
    Applicants must provide their Tax Compliance Verification (TCV) confirmation code.  For more information, please refer to the Tax Compliance Verification (TCV) Program.
  2. Constituting Document(s)
    One or more of the following documents must be uploaded:
    • Certificate or articles of incorporation
    • Charter/By-Laws
    • Partnership Agreement
    • Limited Partnership Agreement
    • Limited Partnership Declaration
    • Shareholder's Agreement
    • Trust Agreement
    • Any other constituting documentation relevant to the entity
  3. Schematic Diagram
    If the corporate structure of the applicant has more than one level, a schematic diagram depicting the relationship among all parent, controlling, subsidiary, affiliated and commonly controlled companies is required.  In the case of a corporation, ownership identified must total 100%. 
  4. Details of Shares
    A document listing all classes and series of shares in the entity. For each class/series, include its name, number of authorized shares, number of issued shares, any rights, privileges, restrictions, conditions as well as name of each shareholder who meet percentage threshold requirements set out for cannabis applicants.
  5. Financial Statements
    Financial Statements (balance sheets, income statements, cash flow statements, etc.) for the last fiscal year. If available, please provide audited consolidated financial statements.
  6. Tax Return and Tax Assessment
    A completed tax return and tax assessment for the last fiscal year available.
  7. Personal History
    A Personal History (using the form provided on iAGCO) for all employment and/or unemployment (including education, parental leave, etc.) will be required from:

    • Applicants who are Sole Proprietors
    • Disclosed individuals.

    Please note, the Registrar will consider every application for a retail operator licence, and may;

    1. issue the retail operator licence, if the applicant has met the application requirements, is not ineligible and has paid the required fee
    2. issue the licence, with proposed conditions to be attached
    3. issue a proposal to refuse the application

If you receive a proposal to refuse your application, you may request a hearing/appeal before the Licence Appeal Tribunal. For more information on the LAT, please visit the LAT website.

Apply for an ROL 

Applying for a Cannabis Retail Store Authorization 

To apply CRSA, the applicant must either hold a valid CROL issued by the AGCO or have submitted an application for a CROL with the AGCO. Applications for both can be submitted at the same time.

A cannabis retail store must be the only business that operates out of the proposed location, and the business cannot also operate as a restaurant, coffee shop, pharmacy, convenience store, etc.  For more information, see Retail Store Requirements.

Licensed Producers

A LP and its affiliates are eligible to apply for a single CRSA. The proposed cannabis retail store must be located on or within the site set out in the federally- issued production licence.

Business Requirements

For a CRSA to be issued, certain business requirements must be in place prior to opening to ensure the store is ready to order, receive and appropriately secure cannabis products. For example, store operators are required to ensure:

  • Cannabis and accessories will not be visible from the exterior of the premises
  • A secure, high-resolution surveillance system will be in place at all times
  • Cannabis will be stored securely at all times and be accessible only by staff

For more information on the standards and requirements for a cannabis retail store, please refer to the Registrar’s Standards for the Cannabis Retail Stores, the Cannabis Licence Act, 2018 and its regulation.

Required Documents

The following documents must be submitted prior to a CRSA being issued: 

  1. Business Name Registration 
    The business name under which you intend to operate may have to be registered under the Business Names Act. For information regarding business name registration please call toll free 1-800-361-3223 or visit Service Ontario
  2. Proof of Ownership / Tenancy  
    Proof of Ownership / Tenancy (lease agreement, property deed, rental agreement etc.). 
  3. Agreements not disclosed on the CROL application. See Supplementary Questionnaire for more information.

Additional information / documentation may be requested as required to determine eligibility for a CRSA.

Pre-Authorization Inspection

Before a CRSA can be issued, the store location will be inspected by an AGCO Inspectors to confirm/verify that all eligibility and store-specific criteria are met. During the pre-authorization inspection, AGCO Inspectors will provide you with information about your responsibilities under the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores, and address any operational questions and/or concerns you may have related to the retail sale of cannabis.

For more information, see the Retail Store Pre-Authorization/Opening Inspection of this Guide.

Conditions

CRSAs may be subject to conditions specified by the Registrar pursuant to the Cannabis Licence Act, 2018.

Please note that the Registrar will consider each application for a CRSA and may:

  1. issue the CRSA if the applicant has met the application requirements, is not ineligible and has paid the required fee
  2. refuse the application.

The Registrar’s decision to issue or not issue a CRSA is final. Relief may be sought by way of an Application for Judicial Review to the Superior Court of Justice.

Apply for an RSA

Applying for a Cannabis Retail Manager Licence 

The following document(s) will be required before a CRML can be issued:

  1. Personal History
    A Personal History (using the form provided on iAGCO) for all employment and/or unemployment (including education, parental leave, etc.) 
  2. Tax Return or Tax Assessment
    A completed tax return and tax assessment for the last fiscal year available. 

Please note that the Registrar will consider every application for a retail store manager, and may:

  1. issue the CRML, if the applicant has met the application requirements, is not ineligible and has paid the required fee or
  2. issue the licence, with proposed conditions to be attached
  3. issue a proposal to refuse the application

If you receive a proposal to refuse your application, you may request a hearing/appeal before the LAT. For more information on the LAT, please visit the LAT website

Apply for an RML

Public Notice for a Cannabis Retail Store Authorization

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A Cannabis Retail Store Authorization may be issued to an applicant unless the Registrar finds it is not in the public interest, as set out in the regulation made under the Cannabis Licence Act, 2018.

The infographic below shows the basic steps for the public notice process.

1 Applicant posts placard at the proposed store, 15-day public notice period  begins, Store location is searchable on iAGCO, 2 Resident/municipality has 15 calendar days to  make written submission(s) to the Registrar, 3 AGCO provides copies of written submission(s) received to applicant within the 15 calendar day requirement, 4 Applicant has 5 calendar days to respond from the time written submissions are sent to the applicant, 5 Registrar considers all available information in order to make an authorization decision, 6 Registrar considers written submission(s) received within the 15 calendar day requirement

Public Notice

After an application for a CRSA is submitted through iAGCO, the AGCO’s online portal, the AGCO will determine the dates of the posting period (for a total of 15 calendar days) and will email the public notice placard (in PDF format) to the applicant. 

Once received, an applicant must print and physically display the public notice placard on the proposed storefront. The public notice placard, an example of which is shown below, displays the following information:

  • Name and address of the proposed store;
  • File number of the application;
  • Deadline date for submissions; and
  • Details on who can make a submission and how to make a submission.

Example of public notice placard

Public Notice posting requirements

Applicants are required to post the public notice placard according to the following requirements:

  • Print in colour on letter-sized (8½” x 11”) paper;
  • Post both English and French placards in a place where members of the public can easily read the contents without having to enter the proposed store; and
  • Post for 15 calendar days (start and end dates will be provided to the applicant by the AGCO).

An AGCO Inspector may visit the proposed store to confirm the public notice placard is posted according to the requirements. Failure to post the public notice placard for the required period of time will result in a delay in the processing of the application and may result in reposting the public notice placard for a further 15 days.

All CRSA applications that are undergoing the public notice process will be searchable on the AGCO’s website through the iAGCO portal

Subscribe to Applications Undergoing Public Notice

You can sign up to receive emails with updates of new applications undergoing public notice. You can choose the types of applications and specify the locations you would like to subscribe to.

Written submissions

Written submissions about an application can only be made to the Registrar by:

  • A resident of the municipality in which the proposed store is located;
  • The municipality representing the area in which the proposed store is located. If the municipality is a lower-tier municipality, then the upper-tier municipality of which it forms a part may also make a submission. 

Written submissions can be made online at iAGCO.

Submissions must be received by the AGCO on or before the deadline date set out in the public notice. The AGCO will provide copies of any submissions and accompanying documents to the applicant. Anonymous submissions will not be considered.

Written submissions and the public interest

The Registrar will consider written submissions as to why the proposed store is not in the public interest as set out in the regulation made under the Cannabis Licence Act, 2018. The following are matters of public interest that can be considered by the Registrar:

  1. Protecting public health and safety;
  2. Protecting youth and restricting their access to cannabis; and
  3. Preventing illicit activities in relation to cannabis.

Copies to the applicant​

After the public notice period has ended, the AGCO will provide the applicant with copies of any submissions received within the required time period in response to the application for a CRSA. Personal details of the submitter, such as name, phone number, email address and mailing address, may be provided to the applicant if included in the content of the submission and/or in accompanying documents. The AGCO aims to provide copies of the submissions to applicants within 10 business days after the submission deadline.

Applicants will have five days, from the time written submissions are sent to the applicant, to provide written submissions to the Registrar in response to any submissions from local residents and from the municipality. The Registrar will consider the applicant’s response, if any.

Registrar’s decision

The Registrar’s decision to issue or to refuse a CRSA is final. Relief may be sought by way of an Application for Judicial Review to the Superior Court of Justice.

Note: The public notice process is not required for stores on First Nations reserves. The location of the store is approved by the band council.

Fees and Payment

Licence and authorization fees

There are fees required when you apply for your CROL, CRML, or CRSA and fees when you renew these licences or authorization.

Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable. 

The fees are:

 

Fee

2-year term

Renewal Fee
2-year term
Renewal Fee
4-year term
Retail Operator Licence$6,000$2,000$4,000
Retail Store Authorization$4,000$3,500$7,000
Cannabis Retail Manager Licence*$750$500$1,000

*If you are a sole proprietor, you may not need to get a Cannabis Retail Manager Licence for that store.

Retail Store Pre-Authorization Inspection

Prior to a CRSA being issued and a cannabis retail store opening for business, the store location will be inspected by an AGCO Inspector to confirm that eligibility and store-specific requirements are met. The first inspection is called a Retail Store Pre-Authorization Inspection, which is conducted prior to a CRSA being issued. The Inspector will be contacting the owner/retail cannabis sales manager to review, in advance, the requirements to ensure the location is ready for this inspection. The following sections provide more information about the inspection process.

What is a Retail Store Pre-Authorization Inspection?

Before a CRSA will be issued, the store location will be inspected by an AGCO Inspector to confirm that eligibility and store-specific requirements are met. During the Pre-Authorization Inspection, AGCO Inspectors will provide you with information about your obligations and responsibilities under the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores and answer any operational questions and/or concerns you may have related to the retail sale of cannabis. Inspectors will be checking that the store is ready to order, receive and appropriately secure cannabis products as required by the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores.

Things to know before scheduling a Pre-Authorization Inspection

  • Ensure that you have applied for or hold a CROL and have the application file number or licence number ready.
  • Ensure the complete application, including supporting documents for a CRSA is submitted.
  •  Confirm that all required fees have been paid. Please refer to the AGCO’s Application Fee Schedule for the applicable fee.
  • Review information about your obligations and responsibilities under the Registrar’s Standards for Cannabis Retail Stores, as well as all applicable laws and regulations, including but not limited to,  the federal Cannabis Act and its regulations, the Cannabis Control Act, 2017, the Cannabis Licence Act, 2018, and Ontario Regulation 468/18.
  • Pre-Authorization Inspection criteria, listed below, must be completed before an inspection can be scheduled.

Pre-Authorization Inspection Criteria

An AGCO Inspector will be visiting the retail store to confirm that store specific requirements are met. Store-specific requirements include:

  • Public Notice Process (CLA subsection 4 (7))
    You must post the placard that has been issued via iAGCO email under the public notice process for 15 calendar days. The public notice period does not need to be completed before an inspection can be scheduled (i.e. an inspection can be scheduled as soon as the placard has been posted based your readiness for the store to be inspected).
  • Location (AGCO application requirement)  
    The address written on the CRSA application must match the physical address of the store.
  • Product Visibility (AGCO Registrar Standard 2.5
    Once cannabis products and accessories are on site, they cannot be seen from the outside of the store (i.e. some retail store operators may choose to use tinted glass or frosted windows to ensure products and accessories are not visible from outside of the store). During the pre-authorization inspection, you will be required to demonstrate how you meet this requirement.
  • Video Surveillance System (AGCO Registrar Standard 2.1)
    A secure, high-resolution surveillance system must be in working order at all times. During the pre-authorization inspection, you will be required to demonstrate that you have a video surveillance system in place that includes the following minimum requirements:
    1. Cameras and lighting must be positioned to clearly capture 24-hour coverage of the interior of the premises and immediately outside the premises, including the:
      1. Entrances and exits, including where IDs are checked
      2. Pick up area(s) for cannabis purchased online or by telephone
      3. Point of sale area(s)
      4. Receiving area(s)
      5. Sales floor area(s)
      6. Cannabis storage area(s).
    2. Video recordings must be made and retained for a minimum of 30 days and be made available to the AGCO upon request;
    3. The licensee must ensure that the surveillance system is functioning properly at all times.
  • Storage (AGCO Registrar Standard 2.2)
    Operators must be able to demonstrate and confirm that all cannabis products will be stored securely at all times and only be available to staff from the time the product arrives at the store to point of sale, destruction, or return to Ontario Cannabis Retail Corporation (OCRC) or Licensed Producer.
  • Other Businesses (Ontario Regulation 468/18, section 9)

    The store must be enclosed by walls and separated from any other commercial establishment or activity and from any outdoor area. The store cannot be entered from or passed through in order to access any other commercial establishment, other than a common area of an enclosed shopping mall (note: this does not apply to spaces shared with other commercial establishments that are only accessible to employees of either business or other non-customers permitted by either business, as long as the entryway to the cannabis store is secured to prevent unauthorized access).

  • Store Management (CLA 5(1), CLA 25 (1), AGCO Registrar Standard 1.2 and 1.3)
    Each store must have a CROL holder or a CRML holder managing the store. CROL holders or CRML holders may be responsible for up to five (5) stores at a time. You may be asked to provide your licence upon request.
  • Preventing Unauthorized Access (AGCO Registrar Standard 2.4)
    All entry points to the store, including doors and windows, must be secure and protected against unauthorized access.
  • Preventing Entry of Minors (Ontario Regulation 468/18 s. 20)
    A description of the measures the CROL holder will undertake to ensure that patrons who look under 25 years of age are not permitted to enter the cannabis retail store unless they provide a valid piece of identification proving that they are at least 19 years of age.
  • Record Keeping Requirements (AGCO Registrar Standard 8.1)
    Licensees must ensure that the following records are maintained, retained a minimum of three (3) years, or longer as may be required by other laws and regulations, and made available to the AGCO in accordance with the Notification Requirements or upon request:
  1. employee records, including names, addresses, primary job responsibilities, shift schedules, training records, CPIC records check results, and dates of employment 
  2. records for all cannabis in the authorized store, including cannabis purchased directly from the OCRC and cannabis transferred from another authorized retail store operated by the Licensed Operator. At a minimum, these records must contain information regarding:
    a.    [Removed: May 2023]
    b.    [Removed: May 2023]
    c.    each sale transaction at the authorized store, online or by telephone, traceable to the employee level
    d.    any cannabis that has been destroyed. Records of any cannabis destroyed must include, at a minimum:
    1. [Removed: May 2023] 
    2. [Removed: May 2023]
    3. [Removed: May 2023]
    4. a certificate of destruction, if destruction is carried out by a third party
    5. [Removed: May 2023]
    6. [Removed: May 2023]
    7. the reason for the destruction of the cannabis product 
    8. the method of destruction.
  3. [Removed: May 2023] 
  4.  records that may be required to support a cannabis product recall
  5. records demonstrating that the Licensee is complying with sections 7 and 8 of the Cannabis Control Act, 2017, which prohibit sales to persons under 19 years of age and persons who are or appear to be intoxicated. 
  6.  [Removed: May 2023] 
  7. [Removed: May 2023] 
  8. Records of the name and address of purchaser and residential address where any cannabis is delivered. [Amended: March 2022]
  9. Records of the specific authorized store(s) a licensed Retail Manager is accountable for. [New: March 2021]
  10. When entering into any agreement or accepting any item, benefit or service pursuant to Standard 6.5, a licensee shall maintain the following records      [New: June 2022]:

     

    1. Copy of the complete agreement
    2. Description of the item, benefit or service 
    3. Date of receipt of item, benefit or service 
    4. Name of licensed producer and representative and 
    5. Fair market value of the item, benefit or service
       

How to schedule a Pre-Authorization Inspection

Once the complete CRSA application has been submitted, notify the AGCO that the retail store has met all of the store specific requirements and is ready for an inspection. The AGCO Inspector will contact you to set up an appointment. As the applicant, you must be present at the retail store during the inspection.

Once all eligibility and store specific requirements are met, a CRSA will be issued which may include certain terms and conditions, which the licensed Retail Operator must comply with before the store is open to the public.

Retail Store Ongoing Inspection

AGCO Inspectors may visit the retail store location at any time to confirm compliance with the Cannabis Licence Act, 2018 and regulation and Registrar’s Standards for Cannabis Retail Stores. You must allow the inspection, and you must not interfere with the AGCO Inspector, refuse to answer questions related to the inspection, or provide false information. 

When conducting an inspection, an AGCO Inspector may:

  • ask you for and look at records that are relevant to the inspection
  • take records away from the store to review, examine, test or copy. In this case, the Inspector will give you a receipt confirming which records have been taken.
  • After the Inspector has taken the records, you can request that the records be made available to you
  • The records will be returned to you in a reasonable time, unless the records cannot be returned because of the testing done.
  • take photographs or other recordings
  • ask about financial transactions, records or other matters relevant to the inspection.

If an Inspector asks you for a record, you must provide it. You must also help the Inspector understand the record or provide it in a readable form.

AGCO Inspectors will also confirm the following:

  • Outdoor Store Signage (CA s. 18, Registrar's Standard 6.1 and Standard 6.2)
    Signage must identify the business on the outside of the authorized store. Advertising may not:
    • appeal to or target persons under 19 years of age
    • promote cannabis or cannabis accessories in a way that is false, misleading, or deceptive
    • suggest or imply, directly, indirectly, or by use of endorsements of testimonials, that consumption of cannabis is associated with success, enjoyment of an activity, fulfillment of a goal, or the resolution of a problem
    • be associated with medicine, health, or pharmaceuticals
    • depict or suggest the illegal sale of cannabis
    • associate consumption of cannabis with driving a motorized vehicle, or with any activity that requires care and skill or has elements of danger
  • Provincial Cannabis Retail Seal  (Ontario Regulation 468/18, section 19)
    You must display the provincial cannabis retail seal in a place that is visible from the exterior of the public entrance to the cannabis retail store. The retail seal must be least 17 centimetres in width at its widest point by 20 centimetres in height. Either the French version, the English version or both versions of the cannabis retail seal may be displayed. You will be provided access to download the seal once your CRSA application is approved.
  • Interior Store Signage (CA s. 17)
    You may promote cannabis and cannabis accessories at the point of sale only if:
    • The promotion is limited to factual information about:
      1. Cannabis or a cannabis accessory and its characteristics
      2. A service related to cannabis
      3. The availability or price of cannabis, cannabis accessories, or a service related to cannabis.
    • The promotion focuses on brand characteristics of cannabis or cannabis accessories
  • Storage (AGCO Registrar Standard 2.2)
    All products must be stored securely at all times and only be available to staff from the time the product arrives at the store to point of sale, destruction, or return to OCRC or Licensed Producer.
  • Authorized Products (CLA s. 18, Ontario Regulation 468/18 s. 18)
    You may only sell cannabis products purchased from the OCRC in the packaging which it was purchased from the OCRC. Cannabis accessories and shopping bags do not need to be purchased from the OCRC.
  • Staff (CLA s. 23, CLA s. 5(4), Ontario Regulation 468/18 s. 21)
    All staff employed to work before the cannabis retail store is open as well as after the store is open to the public, must be 19 years of age or older. Licensees must obtain criminal background checks from employees as part of the hiring process, as well as ensure that all employees:
    • act in accordance with the law and demonstrate honesty and integrity
    • have completed any required training, including AGCO Board-approved training, prior to their first scheduled shift.
  • AGCO Authorization (Ontario Regulation 468/18, s. 13)
    You must display the AGCO Cannabis Retail Store Authorization in a visible place to patrons in the retail store.
  • Sensory Display Containers (Standard 2.6)
    You may use sensory display containers to allow patrons to see and smell cannabis products. Display containers must be locked and tamper-proof to prevent patrons from touching the products, and must not be able to be removed from the premises.
    This requirement can be met during the pre-opening inspection or during the on-going inspection phase once you decide to use sensory display containers.
  • Responsible Use (AGCO Registrar Standard 7.1)
    Information related to the responsible use of cannabis must be made available to patrons. At a minimum, you must make the Health Canada Consumer Information – Cannabis document available to patrons. 
  • Retail Store Staff Education (Ontario Regulation 468/18, s.21)
    Retail store staff including holders of CRSA, cannabis retail manager licensees and staff employed at the retail store (including those completing deliveries and individuals providing security services) must complete an AGCO Board-approved training program prior to their first day of work to support the safe sale, and consumption of cannabis. 

•    Point-of-Sale System (Standard 8.6)
      Retailers must have a POS system that is configured and integrated with the automated POS Data Reporting Platform.
 

 

Cannabis Retail Seal

As described in Ontario Regulation 468/18, operators of cannabis retail stores authorized by the AGCO must print and display the provincial cannabis retail seal  in a place that is visible from the exterior of the public entrance to the cannabis retail store. The retail seal must be at least 17 centimetres in width at its widest point by 20 centimetres in height. Either the French version, the English version or both versions of the cannabis retail seal may be displayed. 

Once the AGCO has approved and issued a CRSA, it will give the applicant access to downloadable versions of the seal in various file formats. The image cannot be altered in any way.

on-authorized-en_sample.png

Hearings - Cannabis

Hearings under the Cannabis Licence Act, 2018

Overview

Hearings for cannabis CRML, CROL and CRSA matters under the Cannabis Licence Act, 2018 are heard by the Licence Appeal Tribunal, which is an independent, quasi-judicial agency of the Government of Ontario that adjudicates applications and resolves disputes concerning compensation claims and licensing activities regulated by the provincial government. 

If you have received a Notice of Proposal (NOP) issued by the Registrar, you have the right to a hearing/appeal before LAT. For more information about requesting a hearing/appeal as well as any fees LAT may require, please visit the LAT website.

Notice of Proposal

If the Registrar proposes to refuse, revoke or suspend a CROL, CRML, or to revoke or suspend a CRSA, the Registrar will serve a NOP on the applicant/licensee/authorization holder outlining the reasons for the proposed action.

Applicants/licensees who wish to dispute an NOP issued by the Registrar may appeal it. If you receive an NOP and wish to request a hearing, you have fifteen (15) days to appeal to LAT. If an appeal is not received within fifteen (15) days, the Registrar may carry out the proposed action and a final Order will be issued.

The Registrar’s decision to issue or refuse a CRSA is final. Relief may be sought by way of an Application for Judicial Review to the Superior Court of Justice.

In a situation where there are serious violations alleged such that it is in the public interest not to allow a licensee to continue to sell cannabis, the Registrar may immediately suspend a CROL, CRSA or a CRML. 

In certain instances, including where the holder of a CROL, a CRSA or a CRML is convicted of selling cannabis to a minor, the Registrar is required by the Cannabis Licence Act, 2018 to immediately revoke the licence or authorization.

LAT Decisions

Decisions of hearings held before LAT, can be found on the LAT website.

Guides