Rules set for marijuana sales

Proposals for cannabis outlets in Moosomin and other centres now being accepted

March 20, 2018, 1:44 am
Kevin Weedmark

Anyone interested in setting up a marijuana outlet in Moosomin or the other communities in Saskatchewan that will have outlets can now submit a proposal.

The province issued a request for proposals Wednesday, and applicants have until April 10 to submit a proposal.

Moosomin and 31 other communities in the province decided to accept Cannabis retail outlets.

Biggar, Kindersley, Pilot Butte, Shellbrook and White City were also eligible but opted out during the initial allocation of cannabis retail permits, while Estevan, eligible for two, opted for one permit.

The government will assess the effectiveness of the initial allocation and selection process and the potential for additional permit opportunities in 12-18 months.

Key operating details for cannabis retailers:

Cannabis stores must be standalone, selling only cannabis, cannabis accessories and cannabis ancillary items (no cannabis edibles).

Cannabis retailers must operate a storefront, and will also be able to sell cannabis online.

Retailers must purchase product from a wholesaler licensed by SLGA, a federally approved cannabis grower/supplier who has registered with SLGA, a registered extraprovincial wholesaler, and/or from another Saskatchewan licensed retailer.

Minors under the age of 19 are not allowed in cannabis retail stores.

Identification is required for all retail sales and deliveries, regardless of apparent age.

No consumption of cannabis products is allowed in a retail cannabis outlet.

All retailers must take mandatory social responsibility training prior to opening for business. All employees at a retail store must take training prior to their first day of employment.

All retailers will be subject to inspections to ensure compliance with terms and conditions associated with their retail permit. Retailers in breach of operating rules will be subject to sanctions, including letters of warning, monetary fines and suspension or cancellation of the retail permit.

Applicants will have to provide documentation supporting their financial capacity to operate a credible storefront and information about the system they will use to track and report inventory movement through the supply chain. Successful proponents, including all key stakeholders and associates, will also be required to meet good character criteria as part of the permitting process.

Proponents will be selected in a two stage Request for Proposal (RFP) process:

Phase 1 - Initial screening for financial capacity and proposed inventory/sales reporting systems

Phase 2 – Random draw (lottery) from proponents who qualify during Phase 1

The complete RFP documents, outlining information that will be evaluated during the selection process, can be found on SaskTenders.ca.

A $1,000 non-refundable fee must be included with each submission. Interested proponents are also required to include certified payment to cover the permit application and annual licensing fees ($5,000 for retail permits in cities and $3,500 for towns). While the $1,000 selection process fee is not refundable, other fees will be fully returned if the proponent does not proceed to Phase 2 or is not selected in the lottery process.

Once selected in the lottery process, proponents will have 45 days to begin the actual permitting process, including meeting good character requirements. Permittees have 12 months from the date of legalization to open for business. Selected proponents must meet the application requirements in order for a permit to be issued.

Deadline to submit a proposal under the RFP is 2 p.m. on April 10, 2018. KPMG has been engaged to provide advice on the fairness of the process and criteria and provide oversight to the Phase 1 evaluation and Phase 2 lottery process.

The application process to obtain a wholesale cannabis permit will begin in April.

According to SLGA, the location of any cannabis store is subject to municipal bylaws, including distance from facilities like daycares, schools, churches, liquor stores, etc.

SLGA says it expects to announce the successful proponents no later than June 1. Retail stores will be required to open within 12 months of cannabis legalization.

As part of the government’s framework for marijuana sales:

Minimum age for non-medicinal cannabis consumption will be 19 years of age;

Zero tolerance for all drug-impaired drivers in the province. It will always be illegal to drive while impaired in Saskatchewan—whether by drugs or alcohol. This will not change once cannabis use becomes legal;

Consuming cannabis in public spaces will be prohibited for public health considerations. Consumption will also be prohibited in schools and daycares.

Saskatchewan is introducing legislation to prohibit the possession of any amount by a minor.
Possession of smaller amounts, by a minor, will be addressed primarily through ticketing and seizure of the cannabis, in accordance with the provincial Act. Possession of more than five grams will be a criminal offence subject to the Youth Criminal Justice Act.