The AGCO is responsible for regulating Ontario’s privately run cannabis retail stores under the Cannabis Licence Act, 2018 and Regulation 468/18.

Under Ontario’s regulatory model, the AGCO:

• licenses eligible retail store operators and managers;
• authorizes cannabis retail stores;
• regulates and enforces the appropriate sale of recreational cannabis in privately-run stores in Ontario.

In 2019–2020, the AGCO continued its work to support the Government of Ontario in the regulation of legal, recreational cannabis.

On April 1, 2019, 10 AGCO-licensed cannabis retail stores opened for business in support of the government’s objective to provide for the safe, responsible, and lawful sale of recreational cannabis.

In August 2019, the AGCO held a second lottery draw in support of the government’s plans for the allocation of 42 additional retail store authorizations (RSA), for which it received more than 5,000 expressions of interest. In addition, it established a separate first come, first served process for 26 stores to be allocated on First Nations reserves. The AGCO’s eligibility assessment process for these applicants, including a full due diligence review of to ensure they meet legislative and regulatory requirements, continued through the fiscal year.

In December 2019, the Government of Ontario announced its move towards an open market for private cannabis retail in Ontario. In response, the AGCO modified the application process for cannabis retail licensing and on January 6, 2020, began accepting online Retail Operator Licence (ROL) applications from all interested applicants. It received 884 submissions. On March 2, 2020, the AGCO began accepting online RSA applications from eligible applicants. It received 563 submissions. By March 31, 2020, the AGCO had issued 398 ROLs and 54 RSAs.

In May 2019, consistent with the Government of Ontario’s April 2019 Budget objectives, the AGCO introduced several initiatives to reduce burden, modernize the regulatory framework for liquor, and improve choice and convenience for consumers of beverage alcohol, including:

• extending the hours for sale and service of beverage alcohol at licensed establishments (such as bars, restaurants, and golf courses), for manufacturers (wineries, breweries, cideries, and distilleries) with a By the Glass Licence, as well as Special Occasion Permit (SOP) events;
• removing prescribed quantities of liquor to be served to consumers under the By the Glass licence to enhance the tourist experience at manufacturing sites;
• amending the Liquor Advertising Guidelines to permit Happy Hour advertising in licensed establishments to allow licensees to advertise their promotions;
• eliminating prescribed SOP partition and food requirements, to provide permit holders with more flexibility while still meeting social responsibility objectives;
• creating a new Tailgate SOP, allowing businesses and persons 19 years of age or older to sell or serve alcohol to attendees and allowing them to bring their own alcohol to an event in connection with, and in proximity to, professional, semi-professional and postsecondary sporting events in Ontario.

In October 2019, the AGCO reduced burden on wineries by increasing the permitted amount of time they had to return unsold product from Farmers’ Markets to their on-site retail store, from 24 to 72 hours.

In December 2019, the AGCO extended the hours of sale and service of beverage alcohol at select Ontario airports to 24 hours a day, seven days a week.

In support of the government’s Fall Economic Statement, the AGCO worked to expand the alcohol sales in grocery stores program, in collaboration with the LCBO. By March 31, 2020, it had issued 448 grocery store authorizations, of which 157 were authorized to sell beer and wine and 291 were authorized to sell beer and cider.

The AGCO also conducted an ongoing review of program reports and analysis of program data and continued to collaborate with the OPP and regional and municipal police on the Last Drink Program, which allows the AGCO and police services to share information and educate owners of licensed establishments on the dangers of impaired driving.

The government has emphasized the need for Ontario to be Open for Business and instituted a government-wide red-tape and burden–reduction initiative to support economic growth and foster enhanced interaction between government and business.

The AGCO has a long history of working to support Open for Business principles by continually searching for ways to reduce administrative burdens for businesses and by deploying regulatory approaches to support responsible economic development. The shift towards a more risk- and outcome-based regulatory framework in the gaming sector, for example, is intended to allow Operators and businesses more flexibility to adapt to marketplace changes and ultimately to increase their competitiveness without compromising the AGCO’s regulatory work.

In 2018–2019, the AGCO designed and implemented a similar approach for the retail sale of cannabis in Ontario, assuring effectiveness but avoiding unnecessarily burdensome regulatory oversight from the outset. The AGCO also continues to build strategic partnerships and share information with other government ministries and agencies to strengthen collaborative and streamlined approaches. This includes effective relationships with the Ministry of the Attorney General (MAG), Ministry of Finance, OCS, OLG, and LCBO.

The concept of reducing red tape and burden has been a driver for many of the regulatory and internal reforms implemented at the AGCO over the last 15 years. In 2019–2020, the AGCO worked collaboratively with the Government of Ontario on multiple phases of liquor regulatory reforms that have simplified the rules and reduced unnecessary burden on liquor licensees and permit holders, including bars, restaurants, stadiums, special occasion hosts, and manufacturers. In 2019–2020, the AGCO also introduced changes to the rules that govern horse racing to support the industry’s sustainability and reduce the administrative burden for participants.

In March 2012, the OLG initiated a plan to modernize lottery and gaming in Ontario, which included three key priorities:

• becoming more customer-focused;
• securing qualified service providers for the day-to-day operation of lottery and gaming; and
• renewing OLG’s role in the conduct, management and oversight of lottery and gaming.

The AGCO also embarked on a path to modernize its approach to regulation, which complemented the OLG’s plan. The AGCO has been taking a modern and progressive approach to regulation, based on risk, the achievement of outcomes, and providing a degree of business flexibility and efficiencies for the lottery and gaming industries. These efforts support and align with key government objectives for enhanced efficiency in the delivery of public services and reducing regulatory burden and increasing consumer choice. In addition, the AGCO’s outcomes-based approach to regulation has resulted in significant cost avoidance annually for the AGCO, as well as cost savings, cost avoidance, or additional revenue for Casino Operators.

The AGCO continued to support the Open Government initiative, which aims to create a more open and transparent government by sharing data and information, and consulting with the people of Ontario.

In accordance with the Open Data Directive, the AGCO posted on its website an inventory of datasets under its custody and control. The inventory identifies whether a dataset is currently open, in the process of being opened, or exempt from being released as open data due to legal, security, privacy, confidentiality, or commercially sensitive reasons. New datasets were added to the inventory in 2019. The AGCO will continue to make priority datasets available to the public on its website under an open-by-default approach.

The Accessibility for Ontarians with Disabilities Act, 2005 (AODA) was created with the goal of developing standards that would improve accessibility for people with disabilities across the province. The AGCO has developed accessibility standards in the areas of customer service, employment, information and communications, transportation, and the physical environment.

The AODA requires all provincial agencies to provide updates to their Accessibility Plan and Policies on an annual basis. The AGCO is committed to meeting the needs of persons with disabilities in a timely manner by preventing and removing barriers to accessibility and meeting accessibility requirements under the AODA. The AGCO has implemented the requirements outlined in the plan and participated in various activities to inform its plan and policies, including the review and update of its practices in the areas of training, information and communication, and employment.

The AGCO is committed to ensuring that its public website meets or exceeds the accessibility standards required under the AODA. This includes producing all content in an accessible HTML format, which can be more easily read by assistive technologies such as screen readers. A site-wide accessibility audit was recently performed to identify any remaining deficiencies. Remediation efforts are on track for completion by the statutory deadline of January 1, 2021.

All AGCO employees are trained on the requirements of Ontario’s accessibility laws, including the Integrated Accessibility Standards Regulation (IASR) and the Ontario Human Rights Code as it pertains to persons with disabilities. This accessibility training has been built into the employee orientation process to ensure that all new AGCO employees, as well as Board of Directors and members and HRAP members, have a good and appropriate understanding of accessibility to perform their duties and provide services to the AGCO’s diverse stakeholders.

The AGCO maintains a commitment to meeting all requirements under the AODA and the IASR and continues to refine its accessibility plan with a focus on ensuring its policies and practices remain accessible and meet the needs of all stakeholders, including persons with disabilities.

In 2018–2019, development began on an external funding program that would allow stakeholders to access a portion of funds from the AGCO’s Orders of Monetary Penalties (OMP) account for Education, Training and Awareness (ETA) initiatives they have designed and developed. In 2019–2020, the ETA Fund was launched allowing industry associations, social responsibility groups and others similarly active and that have the capacity to deliver programming in the sectors the AGCO regulates to develop programs strategically aligned with the AGCO’s mandate.

For the 2019–2020 fiscal year, the total amount of funds the AGCO made available through the ETA Fund was just over $225,000. The following three projects were ultimately selected to receive funding:

A.Serving Responsibly Campaign by MADD Canada

Funded Amount: $100,000

Status: Complete
MADD developed a public service announcement aimed at thanking servers and licensees for keeping our communities safe by refusing to sell alcohol to intoxicated customers in compliance with the law and demonstrating what can happen when servers do not uphold the law.

B.Preventing Intoxicated Gambling Among Young Adults by Responsible Gambling Council (RGC)

Funded Amount: $81,400
Status: In progress
RGC is developing a series of evidence-informed social media messages about refraining from gambling while intoxicated by alcohol and/or cannabis, targeting young adults in Ontario, with a focus on Kenora, North Bay, Ottawa, and Peterborough.

C.South Eastern Ontario Peer Crowd Alcohol Campaign by Kingston, Frontenac, Lennox and Addington (KFLA) Public Health Unit

Funded Amount: $45,000
Status: In progress
KFLA is developing a young adult social marketing campaign aimed at reducing the harms of binge drinking. The campaign will target the young adult peer crowd, at greatest risk of alcohol harm.

Given the success of this first year of the ETA Fund, the AGCO is working to launch an additional round of funding for the 2020–2021 fiscal year.