CANNABIS (LICENSING AND REGULATION) ACT 2020 entitled A … · CANNABIS (LICENSING AND REGULATION)...

A BILL

entitled

CANNABIS (LICENSING AND REGULATION) ACT 2020

TABLE OF CONTENTS

PART 1PRELIMINARY

CitationInterpretationObject of this ActProtection from criminal liabilityRestriction on certain strains

PART 2CANNABIS ADVISORY AUTHORITY

Establishment of the Cannabis Advisory AuthorityFunctions of the AuthorityMinisterial direction

PART 3LICENSING SYSTEM

Spent convictions and exceptionsEligibility to applyTypes of licencesCannabis event licenceInspection of premises prior to granting a licenceApplication for a licenceMinister to make determination on applicationTerms and conditionsNotification of decisionRefusal of licenceVariation of licenceApplication for variation of licenceDuration of licenceApplication for the renewal of a licenceRevocation of licenceMinister to notify of proposed revocationSurrender of licence

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Report of loss or theft

PART 4ANALYSIS

Authorisation of analystsAnalysisCertificate of analyst

PART 5ENFORCEMENT

Designation of inspectorsWarrant issued by magistrate

PART 7APPEALS

Appeals to the Supreme Court

PART 8OFFENCES

OffencesIncreased penalty zonePeriod of imprisonment in default of payment of finePolice powers to seize cannabisStatutory amount to be deemed for supplyDefence of lack of knowledge

PART 9GENERAL PROVISIONS

Review of the ActRegulationsIssuance of guidance

PART 10FINAL PROVISIONS

Consequential amendmentsCommencement

SCHEDULE 1Cannabis Advisory Authority Constitution and Procedure

SCHEDULE 2Licence Fees

SCHEDULE 3Additional Licensing Requirements

SCHEDULE 4Cannabis Retail Shop

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WHEREAS it is expedient to establish the Cannabis Advisory Authority inaccordance with international obligations to advise and assist the Minister responsible fordrug prevention in the regulation of the sale or supply of cannabis, the cultivation ofcannabis or medicinal cannabis for commercial purposes, the research, manufacture,transport and export of cannabis or medicinal cannabis; to establish a licensing system forvarious activities relating to cannabis or medicinal; to provide for the monitoring, inspectionand enforcement powers to inspectors; to give the Minister the power to give directions tothe Authority and related matters;

Be it enacted by The Queen’s Most Excellent Majesty, by and with the advice andconsent of the Senate and the House of Assembly of Bermuda, and by the authority of thesame, as follows:

PART 1

PRELIMINARY

CitationThis Act may be cited as the Cannabis (Licensing and Regulation) Act 2020.

InterpretationIn this Act—

“analyst” means an analyst authorised under section 27 of this Act;

“Authority” means the Cannabis Advisory Authority appointed under section 6;

“cannabis” means all parts of any plant of the genus Cannabis including anycannabis resin obtained from the plant;

“cannabis material” means cannabis and any other raw material derived from thecannabis plant;

“cannabis retail shop” means any premises permitted under a cannabis retail shoplicence—

to sell cannabis material, cannabis products or cannabis accessories only;

to sell cannabis material or cannabis products for the use or consumptionof cannabis only in the cannabis retail shop;

“cannabis product” means a substance, compound, preparation or mixture that isproduced or manufactured from cannabis material;

“cannabis resin” means the separated resin, whether crude or purified, obtainedfrom any plant of the genus Cannabis;

“Chairman” means the Chairman of the Authority;

“cultivation” means any activity involving the planting, growing, harvesting, drying,curing, grading or trimming of cannabis or medicinal cannabis plants;

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“inspector” means a person designated as an inspector under section 30 andincludes a police officer;

“licence” means a licence granted to an applicant by the Minister under section 14;

“licensee” means a person to whom a licence has been granted in relation to anapplication;

“medicinal cannabis” means—

cannabis seeds, immature cannabis plants as well as all parts of thecannabis plant, along with cannabis resin extracted from any part of thecannabis plant; and

every compound, manufacture, salt, derivative, mixture or preparationfrom cannabis,

that is cultivated, processed or manufactured for medicinal purposesunder a licence;

“medicinal cannabis product” means a substance, compound, preparation ormixture that is produced or manufactured from cannabis material formedicinal purposes;

“medicinal purposes” means the treatment of various medical conditions;

“Minister” means the Minister responsible for drug prevention;

“planting material” means—

seeds; or

a young plant not yet 8 inches in height grown from a seed and not acutting for transplanting;

“prescribed” means prescribed by regulations made under this Act;

“prescribed fee” means the relevant fee prescribed in Schedule 2;

“regulations” means regulations made under this Act;

“storage area” means, in respect of a site provided in a licence, an area wherecannabis or medicinal cannabis is stored.

Object of this ActThe object of this Act is to provide for a regulatory and licensing system to regulate

the sale supply, import, cultivation, manufacture, research, transport or export of cannabisor medicinal cannabis for certain purposes.

Protection from criminal liabilityThe provisions of the Misuse of Drugs Act 1972, the Criminal Justice

(International Co-operation)(Bermuda) Act 1994 and the Proceeds of Crime Act 1997 shallnot prohibit or otherwise restrict or render unlawful the use, sale, supply, production,

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possession, handling and cultivation of cannabis or medicinal cannabis by any person inaccordance with this Act or regulations.

For the avoidance of doubt, a person is hereby authorised to undertake anyactivity under this Act, only to the extent that the activity is authorised by, and conductedin accordance with, the provisions of this Act or regulations.

Restriction on certain strainsThe Minister may restrict the sale, supply, cultivation, import or manufacture

of certain strains of cannabis or medicinal cannabis by an order published in the Gazette.

An order in subsection (1) shall be subject to the negative resolution procedure.

PART 2

CANNABIS ADVISORY AUTHORITY

Establishment of the Cannabis Advisory AuthorityThe Minister shall appoint an Authority to be known as the “Cannabis Advisory

Authority” whose primary function shall be to advise the Minister on any matter relating tocannabis or medicinal cannabis in Bermuda.

The provisions of Schedule 1 shall have effect with respect to the constitutionand procedure of the Cannabis Advisory Authority.

Functions of the AuthorityThe functions of the Authority are—

to receive applications for licences for the sale, supply, cultivation, import,manufacture, research, transport and export of cannabis in accordancewith the provisions of this Act and regulations;

to submit applications to the Minister and make recommendations on thegrant or refusal of licences;

to make recommendations to the Minister on any matter, including policymatters, related to this Act and its administration;

to maintain a register containing a record of the licences granted under theAct;

to provide the distribution of educational materials and conduct trainingprogrammes in relation to cannabis and the cannabis industry;

carry out any other function assigned to it by this Act or by the Minister.

In performing the functions in subsection (1), the Authority may formulatestandards and guidance to be observed by licensees.

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Ministerial directionThe Minister may, after consultation with the Chairman, give to the Authority

directions as to the policy to be followed by the Authority in the performance of its functions,as appear to the Minister to be necessary in the public interest and the Authority shall giveeffect to these directions.

PART 3

LICENSING SYSTEM

Spent convictions and exceptionsThe Minister may grant a licence if he is satisfied that the conduct of an

applicant in relation to a serious offence—

involves the obtaining, production, possession or supply of cannabismaterial; and

this information was fully disclosed in an application for a licence made tothe Authority;

and the Minister is satisfied that, based on the particulars submitted to itfor consideration, the applicant would comply with the requirements of theAct and these regulations if the licence is so granted.

For the avoidance of doubt, subsection (1) does not require the Minister to grantthe licence even if it so satisfied.

Eligibility to applyA person who applies for a licence under section 14 shall—

be 21 years of age or older and have Bermudian status, if an individual;

be incorporated, registered or formed under the laws of Bermuda, if a bodycorporate or partnership.

Types of licencesThe Minister may grant any of the following licences—

a cultivation licence, to allow for the growing, harvesting, drying, trimming,curing or packaging of cannabis or medicinal cannabis for commercialpurposes;

a cannabis retail shop licence, to allow for the operation of a cannabis retailshop for the sale of cannabis or the sale and consumption of cannabis;

an import licence, to allow for the cannabis and medicinal cannabisplanting material for cultivation from any country from which it is lawfulto do so;

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an export licence, to allow for the export of locally cultivated cannabis to acountry in which it is lawful to do so;

a manufacturing licence, to allow for activities relating to the processingand manufacturing of cannabis products or cannabis material, ormedicinal cannabis products or medicinal cannabis material, includingbut not limited to, edibles and other derivatives;

a research licence, to allow for the conduct of scientific research relatingto the development of medicinal cannabis;

a transport licence, to allow for the transport of cannabis or medicinalcannabis in Bermuda.

A person shall comply with all the conditions attached to a licence and therequirements of this Act or any regulations.

Where a person applies for—

a cultivation licence and the licence is granted, that person shall alsoreceive an import licence valid only for the import of cannabis or medicinalcannabis planting material;

a research licence and the licence is granted, that person shall also receivean import and export licence which shall only be used for purposes inconnection with the research and development licence.

a cannabis retail shop licence and the licence is granted, that person shallalso receive an import licence which shall only be used for the import ofcannabis for use in connection with the cannabis retail shop licence.

For the avoidance of doubt, a person who receives a licence in subsection (3)in addition to a licence granted under this section shall not pay the prescribed fee for theadditional licence.

A person who is granted a licence pursuant to this Act shall not transfer orassign his licence to another person or cause or permit another person to use the licence.

Any purported transfer or assignment of a licence shall be null and void.

Cannabis event licenceFor the purposes of this section, a “cannabis event” means an event of an

infrequent or temporary nature and includes events where there is no intent to profit fromthe sale of cannabis and only invited guests will attend (a “private event”).

The Minister may, on an application duly made by or on behalf of a personorganizing a private event where cannabis is to be supplied, grant a licence (hereinafterreferred to as a “cannabis event licence”) authorizing that person to supply cannabis onlyto persons attending such event as specified in the cannabis event licence for a period notexceeding the time specified in the cannabis event licence.

The Minister may grant a cannabis event licence for an event of an infrequentor temporary nature that is not within subsection (1).

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A cannabis event licence granted under subsection (2) shall specify—

the period within which cannabis may be supplied; and

the description location of the event at which cannabis may be supplied.

An application under this section shall be made by notice in writing to theMinister and a copy of the application shall be served on the Commissioner of Police.

The authorization conferred by a cannabis event licence shall not apply, unlessthe supply of cannabis under the licence is ancillary to the cannabis event in respect ofwhich the licence is granted.

Inspection of premises prior to granting a licencePrior to granting an application for a licence, except a cannabis event licence,

the Authority shall cause an inspection to be made of the proposed premises on which theactivities which are the subject of the licence are to be carried on, by an inspector who shallhave power to—

enter onto the premises for the purpose of conducting the inspection;

take photographs of the premises; and

traverse the premises in order to establish the boundaries thereof.

Pursuant to subsection (1), the inspector shall promptly submit a report of theinspection to the Authority, together with the photographs taken.

The Authority may cause to be conducted any further inspections as arenecessary to ensure full compliance with the requirements of this Act for the issuance of alicence, and particularly with a view to inspecting the working of surveillance systems atthe proposed premises concerned.

Application for a licenceAn applicant for a licence shall submit to the Authority—

a completed application form containing such information as the Authoritymay require;

proof to the satisfaction of the Authority of the eligibility of the applicationas set out in section 10;

the prescribed fee, which shall not be refundable;

information in respect of the all persons to be employed by the applicantin connection with the activity that is the subject of the licence, togetherwith the following in respect of each employee—

a recent police criminal record check;

proof that each employee has attained the age of 21 years; and

a photograph of the employee that is certified by a notary public as atrue likeness;

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a police criminal record check in respect of the applicant, in the case of—

an individual, a report on that individual;

a body corporate, a report in respect of each of the directors of the bodycorporate;

evidence that the applicant owns the premises on which the activitieswhich are the subject of the licence will be carried on or the writtenagreement with the owner of those premises to use the premises for thoseactivities and a survey plan of the land comprising the premises or onwhich the premises are situated.

where the applicant is a company, a copy of the Certificate of Incorporationand a Certification of Compliance as evidence that the company is in goodstanding;

any other information required to be submitted with an application for theparticular type of licence.

Pursuant to subsection (1)(a)(i), the information is as follows—

if the applicant—

is an individual, his name and date of birth;

is a company, the name of the company;

the address, telephone number and email address for—

the persons for whom the licence is sought; and

where applicable, each building within the premises where theproposed activities are to be conducted;

the mailing address for the premises for which the licence is required;

the proposed activities to be conducted on the premises, the purpose forconducting those activities and where applicable the substances in respectof which each of the activities is to be conducted;

a detailed description of the security measures at the premises for whichthe licence is sought, subject to this Act and any guidelines issued by theAuthority; and

a detailed description of the method the applicant proposes to use forrecord keeping, which shall allow for–

compliance with the provisions of this Act;

the Authority to inspect and monitor the activities of the licensee; and

the reconciliation of orders for cannabis and shipments and inventoriesof cannabis, where applicable.

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Minister to make determination on applicationWhere a person has made an application for a licence, the Minister shall decide

to grant or refuse to grant the licence.

For the purposes of deciding whether to grant or refuse to grant a licence, theMinister shall have regard to the following information and documents provided by theapplicant.

The Minister may—

if satisfied that the application is made in accordance with this Act,approve the application for the grant of a licence, on such terms andconditions proposed by the Minister; or

subject to section 18, refuse the application, and where the Ministerrefuses the application to grant the licence, shall notify the applicant inwriting, within seven days from the date of refusal and the reasons for therefusal and of the applicant’s right of appeal under section 32.

Terms and conditionsThe following terms and conditions shall be deemed to be terms and conditions of

every licence, in addition to any other terms and conditions that the Minister maydetermine—

that the licensee shall take all reasonable steps not to engage or employ aperson to carry out any activity authorised by the license if the person isunder 21 years of age;

that the licensee carries out any activity authorised by the licence inaccordance with the licence;

that the licensee complies with any guidelines issued by the Authority;

that the licensee displays the licence in a conspicuous location on thepremises on which the activity which is the subject of the licence;

that the required information relating to employees in section 14(1)(d), inrespect of each new employee be submitted to the Authority prior toengaging the employee, and the employee shall not be engaged without thatapproval;

that the licensee shall notify the Authority as soon as reasonablypracticable after any of the following matters come to the attention of thelicensee—

a breach of the licence; or

any other matter that may require or permit the Minister to revoke thelicence;

that the licensee shall permit an inspector to enter the premises where theactivity which is the subject of the licence is being conducted, for thepurposes of—

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inspecting or monitoring the activity;

ensuring whether or not the activity is being carried out as authorisedby the licence and whether the licence conditions are being compliedwith; and

taking samples of anything at such land or premises and remove andtest such samples.

Notification of decisionPursuant to section 15, the Minister shall, as soon as practicable, notify the

applicant, in writing, of his decision to approve an application.

Where an application is approved, a licence shall be granted after payment ofthe prescribed fee as provided in Schedule 2 and shall include, among other things, thefollowing—

the name of the licensee;

the activities authorised by the licence and the extent to which thoseactivities are authorised;

the address and extent of the premises on which the activity that isauthorised is to be conducted;

the persons authorised by the licence to engage in activities;

the conditions (if any) imposed by the Minister in accordance withsection16;

the period the licence is in force.

Refusal of licenceThe Minister may refuse to grant a licence on the following grounds—

that on reasonable grounds, to grant the licence would not be consistentwith Bermuda’s international obligations;

the Minister is not satisfied, on reasonable grounds, of the suitability of thelocation of the premises or proposed security arrangements at the premiseswhere activities authorised by the licence will be carried out;

the prescribed fee has not been paid.

An application is incomplete if it does not contain the information anddocuments required or further information required by the Authority under section 15.

If an application is refused under subsection (1), the Minister shall inform theapplicant in writing.

In the case of refusal on the ground in subsection (1)(d), the Minister shall,before refusing the application, give the applicant an opportunity to make representationsregarding the proposed refusal and shall take the representations into account.

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Variation of licenceThe Minister may vary a licence by giving notice in writing to the licensee—

at any time, on the Minister’s own initiative; or

on application made by the licensee.

A variation made under this section may include an amendment extending theperiod of validity, in the case of a cultivation licence, for such further period as may benecessary for the completion of the cultivation of cannabis or medicinal cannabis on thepremises, being in any event a period not extending beyond the duration of the crop cycle.

Without limiting subsection (1), the Minister may vary a licence—

to impose conditions or additional conditions;

to remove or vary conditions that were imposed by the Minister by virtueof this Act; or

to extend, modify or reduce the activities authorised by the licence or thelicensee.

A variation of a licence takes effect on the day specified in the notice undersubsection (1).

Application for variation of licenceAn application for variation of a licence shall be in writing to the Authority, and

shall contain the following information—

a detailed document outlining the proposed variation as well as anyadditional information that is relevant to the proposed variation; and

a copy of the original licence.

The application for a variation must be accompanied by the prescribed fee.

The licensee may withdraw an application at any time before a decision is madeon the application, but the prescribed fee shall be non-refundable.

If an application has been made for variation of a licence the Minister mayrefuse to vary the licence.

Duration of licenceA licence granted under section 14, subject to section 23, shall be valid for the

period specified in subsection (2), unless renewed for a further period in accordance withsection 22 or surrendered in accordance with section 25 at an earlier date.

The period in subsection (1) is two years from the date the licence is granted.

The prescribed fee shall be payable by the licensee annually to the Authorityon the anniversary of the date of issue of the licence so long as the licence is valid.

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Application for the renewal of a licenceAn application for the renewal of a licence shall—

be made in writing and be in such form as the Authority shall determine;

contain such particulars, and meet such other requirements as theAuthority may require; and

be accompanied by the prescribed fee.

An application for the renewal of a licence shall be made at least one monthbefore the expiration of the licence or such longer period before the expiration of the licenceas the Minister may specify in the licence.

A licensee who does not submit an application for renewal within the onemonth period before the expiration of the licence is required to pay the prescribed late feealong with the application fee, in order to renew the licence.

The Minister shall consider every application and may either renew or refuseto renew a licence.

Revocation of licenceThe Minister may, by written notice, at any time revoke a licence granted under

section 13 if he is satisfied on reasonable grounds—

that a condition of the licence has been breached; or

that the licensee has engaged in conduct that an offence under the Misuseof Drugs Act 1972, the Criminal Justice (International Co-operation)(Bermuda) Act 1994 and the Proceeds of Crime Act 1997;

that the licence was obtained or varied on the basis of information that—

was false or misleading in a material particular;

omitted a matter or thing without which the information wasmisleading in a material particular;

that the location, facilities or security arrangements at the premises atwhich activities authorised by the licence take place are not suitable forthose activities;

that the licensee has ceased to carry on all activities authorised by thelicence;

that activities authorised by the licence to be undertaken at the premisesby the licensee have been undertaken by the licensee other than at thosepremises;

that the licensee is not taking all reasonable measures to ensure thephysical security of the cannabis material or cannabis product, ormedicinal cannabis material or medicinal cannabis product in thelicensee’s possession or control;

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that the licensee has not provided information required by a notice givenunder section 15(4) within the time specified in the notice.

The revocation of a licence take the effect on the day specified in the noticeprovided in subsection (1).

Minister to notify of proposed revocationBefore revoking a licence under section 23, the Minister shall give written notice

of the proposed revocation to the licensee.

A notice in subsection (1) shall—

state that the Minister proposes to revoke the licence and the reasons forthe proposed revocation; and

invite the licensee to make a written submission to the Minister about theproposed revocation.

A notice in subsection (1) shall specify a period within which the licensee maymake a submission under subsection (2)(b) and such period shall not end earlier than amonth after the day on which the notice was given.

Surrender of licenceA licensee may surrender his licence by giving notice in writing to the Minister

and the surrender of such licence shall take effect on a date approved by the Minister.

The Minister shall not approve the surrender of a licence unless he is satisfiedthat the licensee has ceased all activities under the licence.

Where the Minister approves the surrender of a licence, it shall inform thelicensee in writing.

Where a licensee receives the approval of the Minister to surrender his licence,the licensee shall immediately return the licence to the Authority.

The surrender of a licence does not prevent the former holder of the licencefrom applying for another licence.

Report of loss or theftWhere there is a theft of cannabis or medicinal cannabis from a licensee, the

licensee shall—

immediately report the occurrence to an inspector; and

provide a written report to the Authority within 48 hours after becomingaware of the occurrence.

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PART 4

ANALYSIS

Authorisation of analystsFor the purposes of the administration and enforcement of this Act, the Minister

may authorize a person, by notice in the Gazette, to analyse any cannabis or medicinalcannabis substance or product, or a sample of any substance or product purporting to bea cannabis or medicinal cannabis.

AnalysisAn inspector may submit any cannabis substance or product or medicinal cannabis

substance or product, or sample of any substance or product purporting to be cannabis ormedicinal cannabis taken by the inspector to an analyst for analysis.

Certificate of analystWithout prejudice to section 29 of the Evidence Act 1905, but subject to

subsection (2), in any proceedings for an offence under this Act, a certificate in theprescribed form purporting to be signed by an authorised analyst and certifying anysubstance specified in the certificate to be cannabis or to contain such proportion ofcannabis as may be so certified shall, on its production by the prosecution, without furtherproof be prima facie evidence of the matters so certified and of the qualification of theanalyst.

Subsection (1) shall not apply to a certificate tendered on behalf of theprosecution—

unless a copy thereof has been served on the accused not less than 10 daysbefore the trial; or

if the accused, not less than five days, before the trial has served notice onthe prosecution requiring the attendance at the trial of the person by whomthe certificate was signed.

PART 5

ENFORCEMENT

Designation of inspectorsThe Minister shall designate, in writing, inspectors for the purposes of all or

any of the provisions of this Act and such designation may be specified for a fixed period.

Every inspector designated in accordance with this section shall be furnishedwith a warrant of designation and shall, when exercising any power conferred on him bythis section, produce the warrant of designation or a copy of it.

An inspector may, for the purposes of obtaining any information which may berequired in relation to a matter under investigation under this Act—

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at all reasonable times, enter any premises or place or vehicle where thereare grounds to believe that any trade, business or any activity which is ormay be subject to a licence under this Act, is being, or has been, carriedon, or that documents relating to such trade, business or activity are keptand search and inspect the premises, place or vehicle and any documentsthat are on, at or in such premises, place or vehicle;

secure for later inspection any, or any part of any, premises or place or anyvehicle on, at or in which such documents are kept or where there arereasonable grounds for believing that such documents are kept;

remove and retain such documents for such periods as may be reasonablefor future examination, subject to a warrant being issued for that purposeby a magistrate;

require any such person to give to the inspector any information which theinspector may reasonably require in respect of such trade, business oractivity or in respect of the persons carrying on such trade, business oractivity or employed in connection with such trade, business or activity;

require any person by or on whose behalf data equipment is or has beenused or any person having charge of, or otherwise concerned with theoperation of the data equipment or any associated apparatus or material,to afford the inspector all reasonable assistance in relation to it and assistin the retrieval of information connected with the operation of such dataequipment, apparatus or material;

summon, at any reasonable time, any other person employed in connectionwith such trade, business or activity to give to the inspector, anyinformation which the inspector may reasonably require in relation to suchtrade, business or activity and to produce to the inspector any documentswhich are in the control of that other person;

have photographs taken of anything on, at or in the premises, place orvehicle and remove the photographs from the premises, place or vehicle;and

inspect any vehicle relating to such trade, business or activity.

An inspector shall not, other than with the consent of the occupier, enter adwelling house unless he has obtained a warrant from a magistrate under section 31.

Where an inspector, in the exercise of his powers under this section, isprevented from entering any premises, place or vehicle, an application may be made for awarrant under section 31 authorising such entry.

Warrant issued by magistrateA magistrate who is satisfied by sworn information in writing of an inspector that

there are reasonable grounds for suspecting that—

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an offence under this Act or any regulations has been, is being or is aboutto be committed on any premises, place or in a vehicle; and

admission to the premises has been or is likely to be refused,

may by warrant under his hand, which shall continue in force for a period of one month,authorise any inspector to enter the premises.

PART 7

APPEALS

Appeals to the Supreme CourtA person who is aggrieved by a decision of the Minister may appeal to the

Supreme Court by notice of motion filed in the Registry and served on the Attorney-Generalwithin 21 days of the date on which the notice took effect.

Rules of Court may be made under section 62 of the Supreme Court Act 1905for the purpose of regulating the practice and procedure on appeals under this section.

On an appeal under this section, the Supreme Court may confirm, reverse, varyor modify the decision of the Minister or may remit the matter to the Minister with theopinion of the Supreme Court thereon.

PART 8

OFFENCES

OffencesNo person shall—

use or engage in the use of cannabis in a public place except in a cannabisretail shop;

misuse cannabis;

possess cannabis that is more than 7 grams in a public place unless he isthe holder of a relevant licence that authorizes him to do so;

handle cannabis with the intent, whether by him or some other person, forsupply unless he is the holder of a relevant licence that authorizes him todo so;

sell or offer for free distribution cannabis, any derivatives or any derivativesor samples thereof at any public or private event unless he is the holder ofa relevant licence to do so.

A person who contravenes subsection (1) commits an offence and is liable onsummary conviction to a fine of $2,000.

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17


A person who holds a cultivation licence shall only possess the quantity ofcannabis or medicinal cannabis provided in the conditions for that cultivation licence.

A person who contravenes subsection (3) commits an offence and is liable onsummary conviction to a fine of $5,000 or to imprisonment for a term not exceeding twoyears, or to both.

A person—

who obstructs an inspector in carrying out his functions or fails to produceany records reasonably required by an inspector commits an offence andis liable on summary conviction to a fine of $3,000 or to imprisonment fora term not exceeding one year, or to both;

who obstructs an inspector carrying out his functions or fails to allow himto enter a premises for inspection commits an offence and is liable onsummary conviction to a fine of $2,000 or to imprisonment for a term notexceeding six months, or to both.

A person who conducts any activity for the purposes specified under section11(1)(a) to (h), who is not the holder of a relevant licence commits an offence and is liableon summary conviction to a fine not exceeding $5,000 or to imprisonment for a term notexceeding 2 years, or to both.

A person who is not the holder of a licence granted under section 14 who, beingthe owner, occupier or person in charge of or concerned in the management of any premisesor place, knowingly permits or suffers any of the following activities to take place on thosepremises or at that place—

producing or attempting to produce cannabis;

selling or supplying or attempting to sell or supply cannabis or offering tosupply cannabis to another;

handling cannabis or a cannabis product with the intent, whether by himor some other person, for sale or supply;

misusing cannabis or preparing any such drug for misuse,

commits an offence and is liable on summary conviction to a fine of $15,000 or toimprisonment for a term not exceeding five years, or to both.

In this section—

“handling” means if a person is in any way concerned in carrying, removing,harbouring, keeping or concealing cannabis or a cannabis product;

“premises” includes a vessel, aircraft, vehicle, building, structure and enclosure,whether movable or not;

“produce” means producing it by manufacture, cultivation or any other method.

(3)

(4)

(5)

(a)

(b)

(6)

(7)

(a)

(b)

(c)

(d)

(8)

18


Increased penalty zoneWhere a person is being sentenced for an offence under any of section 33(1)

which was committed (whether wholly or partly) in an increased penalty zone, the courtshall—

first determine the sentence (“the basic sentence”) in accordance withestablished principles but without regard to this section; then

where the basic sentence includes a term of imprisonment or a fine,increase that sentence by adding an additional element determined inaccordance with subsection (2).

The additional element shall be—

a term of imprisonment of at least one year but not more than three years,where the basic sentence includes a term of imprisonment of less thanseven years;

a term of imprisonment of at least three years but not more than five years,where the basic sentence includes a term of imprisonment of seven yearsor more;

a fine of at least $2,000 but not exceeding $10,000, where the basicsentence includes a fine.

For the purposes of this section, “increased penalty zone” means any of theplaces listed in Schedule 4 to the Misuse of Drugs Act 1972.

Period of imprisonment in default of payment of fineWhere a court imposes a penalty of a fine on a person after conviction for an offence

under this Act and the fine so ordered to be paid is not paid within the time allowed by thecourt, the court shall have the power to immediately revoke the licence.

Police powers to seize cannabisA police officer of any rank shall have lawful authority to seize an amount of

cannabis or medicinal cannabis that is equal to or more than 7 grams in the possession ofany person in a public place if a person does not have the relevant licence to do so.

The Minister shall make regulations that provide for substance abuseeducation or treatment for any minor found to be in possession of any amount of cannabis.

Statutory amount to be deemed for supplyWhere a person is charged with an offence pertaining to cannabis, and supply is

an element, where the amount of cannabis equals or exceeds 20 grams, until the contraryis proved, the person shall be presumed to have cannabis with the intention, whether byhim or another person, for supply.

Defence of lack of knowledgeThis section applies to offences under section 33(1).

34 (1)

(a)

(b)

(2)

(a)

(b)

(c)

(3)

35

36 (1)

(2)

37

38 (1)

19


Subject to subsection (3), in any proceedings for an offence to which thissection applies it shall be a defence for the accused to prove that he neither knew of norsuspected nor had reason to suspect the existence of some fact alleged by the prosecutionwhich it is necessary for the prosecution to prove if he is to be convicted of the offencecharged.

Where in any proceedings for an offence to which this section applies it isnecessary, if the accused is to be convicted of the offence charged, for the prosecution toprove that some substance or product involved in the alleged offence was the cannabis ormedicinal cannabis which the prosecution alleges it to have been, and it is proved that thesubstance or product in question was that cannabis or medicinal cannabis, the accused—

shall not be acquitted of the offence charged by reason only of proving thathe neither knew nor suspected nor had reason to suspect that thesubstance or product in question was the particular cannabis or medicinalcannabis alleged; but

shall be acquitted thereof—

if he proves that he neither believed nor suspected nor had reason tosuspect that the substance or product in question was cannabis ormedicinal cannabis; or

if he proves that he believed the substance or product in question to becannabis or medicinal cannabis, or cannabis or medicinal cannabis ofa description, such that, if it had in fact been that cannabis ormedicinal cannabis, or cannabis or medicinal cannabis of thatdescription, he would not at the material time have been committingany offence to which this section applies.

Nothing in this section shall prejudice any defence which it is open to a personcharged with an offence to which this section applies to raise apart from this section.

PART 9

GENERAL PROVISIONS

Review of the ActThe Minister shall carry out a comprehensive review of this Act within two years of

its coming into operation, and shall submit a report to the House of Assembly within 12months after beginning the review.

RegulationsThe Minister, acting on the advice of the Authority, shall make regulations for

or with respect to any matter that, by this Act, is required or permitted to be prescribed orthat is necessary or convenient to be prescribed for carrying out or giving effect to this Act.

Without limiting the generality of subsection (1), regulations made undersubsection (1) may make provisions for or with respect to—

(2)

(3)

(a)

(b)

(i)

(ii)

(4)

39

40 (1)

(2)

20


prescribing particulars or information to be included in an application forthe grant of a licence or renewal of a licence;

prescribing the record keeping requirements of the holder of a cannabisretail shop licence;

regulating, restricting or prohibiting premises, vehicles or equipment usedor intended to be used for or in connection with the sale, cultivation,research and development, manufacture and transport of cannabis ormedicinal cannabis;

regulating, restricting or prohibiting premises used or intended to be usedfor and in connection with the sale of cannabis in a cannabis retail shop;

regulating or prohibiting the cultivation or transport of cannabis ormedicinal cannabis, including in relation to specific geographical areas orregions in Bermuda;

matters to be considered by the Authority in relation to the suitability ofpremises for the cultivation of cannabis;

standards or requirements as to security of access to premises in whichcannabis is cultivated or in a cannabis retail shop;

requirements of signage at a licensed premises and information to bedisplayed at those premises or on equipment or vehicles used for or inconnection with a licence;

the safe custody, storage and security of locally cultivated cannabis ormedicinal cannabis;

the zoning of designated areas to be used for or in connection with thecultivation of cannabis or medicinal cannabis;

regulating and controlling the advertising by any person of cannabis,including the form and content of advertisements;

the inspection of premises (other than a dwelling house), mobile facilities,stocks, records and any other documents relating to the cultivation ofcannabis.

Regulations may—

be of general or limited application;

differ according to differences in place or circumstances;

apply to different classes of person, licences or products;

exempt specified persons or things or classes of persons or classes of thingsfrom complying with all or any of the regulations—

whether unconditionally or on specified conditions; and

either wholly or to such an extent as is specified.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

(3)

(a)

(b)

(c)

(d)

(i)

(ii)

21


Regulations may provide for the imposition of penalties on summary convictionto a fine not exceeding $5,000 or imprisonment for a term not exceeding two years or toboth such fine and imprisonment.

Regulations made under this section may be made subject to the negativeresolution procedure.

Issuance of guidanceThe Authority may from time to time, with the approval of the Minister, issue

guidance, or directives, on any matter concerning the regulation of cannabis or medicalcannabis.

PART 10

FINAL PROVISIONS

Consequential amendmentsThe Government Authorities (Fees) Act 1971 is amended in the First Schedule

PART B by inserting the following in its proper alphabetic place—

“Cannabis Advisory Authority- established by section 5 of the Cannabis(Licensing and Control) Act 2020”.

The Misuse of Drugs Act 1972 is amended—

in section 1 by deleting the definitions for “cannabis” and “cannabis resin”;

in section 6(1) by deleting “possession, save for cannabis that is less thanor equal to the statutory threshold in Schedule 8, subject to the discretionof the Director of Public Prosecutions to prosecute if the evidence indicatesan intention to supply contrary to subsection (3)”.

by repealing sections 11 and 25A;

in Schedule 2 Part I by deleting the line item “CANNABIS AND CANNABISRESIN”;

in Schedule 7 by deleting paragraph (c);

by repealing Schedule 8.

The Pharmacy and Poisons Act 1979 is amended by inserting the following aftersection 2—

“Cannabis (Licensing and Control) Act 2020Except as otherwise provided, nothing in this Act affects any provision of

or made under the Cannabis (Licensing and Control) Act 2020 or renders unlawfulanything done in accordance with a licence granted under the Cannabis (Licensingand Control) Act 2020.”.

2A

(4)

(5)

41

42 (1)

(2)

(a)

(b)

(c)

(d)

(e)

(f)

(3)

22


CommencementThis Act shall come into operation on such day as the Minister may appoint by

notice published in the Gazette.43

23


SCHEDULE 1

(Section 6)

CANNABIS ADVISORY AUTHORITYCONSTITUTION AND PROCEDURE

Constitution of the AuthorityThe Authority shall consist of—

five persons who are voting members of the Authority, hereinafter referredto as “appointed members” one each from the disciplines of health,scientific research, business, planning and agriculture; and

the following ex officio members—

the Attorney-General;

the Collector of Customs;

the Director of National Drug Control.

Appointed members shall be persons appearing to the Minister to be ofintegrity, capable of exercising diligence, sound judgment and impartiality in fulfilling theirfunctions pursuant to the provisions of this Act.

Each member of the Authority listed in subparagraphs (1)(b)(i) to (v) maynominate a person of appropriate seniority to serve on the Authority in his place.

Tenure of officeA person appointed to be a member of the Authority shall, unless his appointment

is sooner terminated, hold office for a period not exceeding three years as shall be specifiedin his instrument of appointment, but he shall be eligible for reappointment upon theexpiration of his term of office.

Chairman and Deputy ChairmanThere shall be a Chairman and a Deputy Chairman of the Authority, both of whom

shall be appointed by the Minister from among the appointed members of the Authority andeach of whom shall hold office, subject to paragraph 2.

Temporary appointmentIn case of the absence or inability of any appointed member to act, the Minister

may appoint a person to act temporarily in his place.

ResignationAny appointed member, other than the Chairman, may at any time resign his

office in writing addressed to the Minister and transmitted through the Chairman and, fromthe date of receipt by the Minister of such writing, such member shall cease to be anappointed member.

1 (1)

(a)

(b)

(i)

(ii)

(iii)

(2)

(3)

2

3

4

5 (1)

24


The Chairman may at any time resign his office in writing addressed to theMinister and, from the date of receipt by the Minister of such correspondence, the Chairmanshall cease to be an appointed member.

Effect of vacancy on the AuthoritySubject to this Schedule, the Authority shall be deemed to be properly constituted

notwithstanding that there is a vacancy in the office of Chairman or any other appointedmember.

Disqualification from membership of the AuthorityA person shall not become, or continue to be, an appointed member of the Authority

if the person—

is a member of the Legislature, a person who is appointed or elected to anymunicipality, parish council or any other public authority;

is suffering from a mental disorder within the meaning of the Mental HealthAct 1968 or is otherwise adjudged to be of unsound mind under anystatutory provision;

becomes permanently unable to perform his functions by reason of illhealth;

is an undischarged bankrupt; or

has at any time been convicted of an offence under the Misuse of DrugsAct 1972, the Criminal Justice (International Co-operation)(Bermuda) Act1994 or the Proceeds of Crime Act 1997 or any offence involving fraud,dishonesty or moral turpitude.

Removal of appointed memberThe Minister may at any time declare the office of an appointed member of the

Authority vacant if he is satisfied that the appointed member—

has failed without sufficient cause to attend three consecutive meetings ofthe Authority;

is incapacitated by physical or mental illness; or

is otherwise unable, unfit or unwilling to carry out his functions as anappointed member.

Procedure at meetingThe Authority shall meet at such times and on such days as may be necessary

or expedient for the transaction of its business.

The minutes of each meeting of the Authority shall be kept in proper form.

The Chairman may at any time call a meeting of the Authority and shall call ameeting within five days of a written request for that purpose addressed to him by any threemembers.

(2)

6

7

(a)

(b)

(c)

(d)

(e)

8

(a)

(b)

(c)

9 (1)

(2)

(3)

25


The Chairman shall preside at all meetings of the Authority at which he ispresent, and in his absence the Deputy Chairman shall preside, and in the absence of theChairman and the Deputy Chairman the members present and constituting a quorum shallelect a chairman from among the members to preside at that meeting.

Every appointed member shall have one vote; the Chairman shall have anoriginal vote but in the event of an equality of votes he shall have a casting vote.

Subject to subparagraph (5), decisions of the Authority shall be by majorityvote.

Subject to this Schedule, the Authority may regulate its own proceedings.

A quorum of the Authority shall be six.

The validity of any proceedings of the Authority shall not be affected by anydefect in the appointment of a member.

RemunerationFees shall be paid to members of the Authority in accordance with the Government

Authorities (Fees) Act 1971.

Committees of the AuthorityThe Authority may appoint such committees, for any general or special

purposes, with which the Authority may be concerned, as in the opinion of the Authoritywould be better regulated and managed by means of a committee.

A committee appointed pursuant to subparagraph (1) may include persons whoare not members of the Authority or employees of the Authority, so that the appointmentof any such persons shall be subject to the approval of the Minister.

Disclosure of interestA member of the Authority who is in any way directly or indirectly interested

in any contract or other matter whatsoever to be considered by the Authority, or in anycontract made or proposed to be made by the Authority, shall forthwith disclose the natureof his interest to the other members of the Authority upon a conflict of interest arising, andthe disclosure shall be recorded in the minutes of the next meeting of the Authority, andthe member shall not take part in any deliberation or decision of the Authority with respectthereto.

A disclosure made by a member of the Authority under subparagraph (1), tothe effect that he is a director or shareholder of, or has a significant economic relationshipwith, a specific company, firm or other entity or is to be regarded as interested in anycontract which is made with the company, firm or other entity, shall for the purposes ofsubparagraph (1), be a sufficient disclosure of his interest in relation to any contract somade.

A member of the Authority need not attend in person at a meeting of theAuthority in order to make a disclosure that he is required to make under this paragraph,

(4)

(5)

(6)

(7)

(8)

(9)

10

11 (1)

(2)

12 (1)

(2)

(3)

26


if the member takes reasonable steps to ensure that the disclosure is made by notice whichis taken into consideration and read at the next meeting held after the disclosure is made.

Reports to MinisterThe Authority shall submit to the Minister an annual report relating generally

to the execution of its functions and may, at any time, submit a report relating to anyparticular matter or matters which, in the Authority’s opinion, require the special attentionof the Minister.

Notwithstanding subparagraph (1), the Authority may at any time, be requiredby the Minister to submit a report in respect of any matter or activity in which it is involvedunder this Act.

ADMINISTRATION

Appointment of Executive DirectorSubject to the provisions of this paragraph, there shall be an Executive Director

of the Authority who shall be appointed by the Authority, subject to the approval of theMinister.

Subject to subparagraph (4), the Executive Director shall be a person whopossesses the knowledge, skills and experience which are necessary for the intendedfunctions to be carried out by the person under this Act.

A person who would not be eligible to be appointed as a member of theAuthority by virtue of paragraph 7 shall not be eligible to be appointed as the ExecutiveDirector.

A person shall not be appointed as Executive Director unless the Authority issatisfied that the person is a person of integrity, capable of exercising diligence, soundjudgment and impartiality in carrying out his functions.

Subject to subparagraph (6), the Executive Director shall hold office for a periodof three years and shall be eligible for re-appointment.

The Minister may terminate the appointment of the Executive Director—

for the inability to discharge the functions of his office, whether arisingfrom infirmity of the body or mind, dereliction of duty or misbehaviour;

where he becomes an undischarged bankrupt; or

where he is convicted of an offence under the Misuse of Drugs Act 1972,the Criminal Justice (International Co-operation)(Bermuda) Act 1994 orthe Proceeds of Crime Act 1997 or any offence involving dishonesty ormoral turpitude or for any other cause.

Functions of the Executive Director and delegation of such functionsThe Executive Director shall be responsible for the day to day management of

the affairs of the Authority which shall include the following—

13 (1)

(2)

14 (1)

(2)

(3)

(4)

(5)

(6)

(a)

(b)

(c)

15 (1)

27


coordinating the functions of the Authority;

the taking of any administrative and managerial actions as are necessaryand appropriate for the effective implementation of this Act and anyregulations;

assigning personnel as may be necessary to ensure that applications forlicences and other authorisations are submitted to the Minister forapproval within the prescribed period after the making thereof;

ensuring the timely implementation of the decisions and directions of theAuthority;

preparing the budget of the Authority;

implementing operational policies and procedures in relation to thefunctions of the Authority; and

performing such other functions as may be assigned to the ExecutiveDirector under this Act or any other enactment.

The Executive Director shall attend the meetings of the Authority, but shall nothave a vote at any meeting of the Authority.

The Executive Director may, in writing, subject to the approval of the Authority,delegate any of his functions, except the power of delegation, in relation to the performanceof any of the duties conferred on him by, or under this Act, to a person specified in theinstrument of delegation.

A delegation under subparagraph (3) shall not prevent the exercise of thepowers or the performance of the duties by the Executive Director.

Appointment of staff of the AuthorityThe Executive Director shall consult with the Minister in establishing the

qualifications for the various offices established within the Authority and shall advise theMinister on all appointments to fill said offices.

Consistent with its approved budget, and subject to this Act and all applicablelaws, the Executive Director shall establish the remuneration, terms and conditions ofemployment of each member of the staff of the Authority.

Obligation of confidentialityEvery person having an official duty or being employed in the administration

of this Act, shall regard and deal with as confidential, all information, records or documentsrelating to the functions of the Authority obtained by the person in the course of theperformance of his duties or otherwise.

A person to whom information is communicated by a person in subparagraph(1) shall regard and deal with the information as confidential.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(2)

(3)

(4)

16 (1)

(2)

17 (1)

(2)

28


A person who contravenes subparagraph (1) or (2) commits an offence and shallbe liable on summary conviction to a fine not exceeding $30,000 or to imprisonment for aterm not exceeding six months or to both.

Notwithstanding subparagraphs (1) and (2) a person may disclose informationin any of the following circumstances—

pursuant to an order of the Court;

to an employee of the Authority who is so authorised; or

where disclosure is permitted under any other enactment.

Protection from liabilityNo action, suit, prosecution or other proceedings shall be brought or instituted

personally against any member of the Authority or employee or agent of the Authority inrespect of any act done bona-fide in pursuance or execution or intended execution of thisAct.

Financial Provisions, Accounts and Reports

Funds and resources of the AuthorityThe funds and resources of the Authority shall consist of—

such sums as may, from time to time, be placed at the disposal of theAuthority by the Legislature; and

all other sums and property which may, in any manner, become payableto or vested in the Authority in respect of any matter incidental to itsfunctions.

The expenses of the Authority, including the remuneration of members of theAuthority and employees and agents of the Authority shall be paid out of the funds of theAuthority and thereafter all remaining revenues received in respect of any matter incidentalto the functions of the Authority shall be paid into the Consolidated Fund within suchperiod as may be specified by the Minister of Finance, in writing.

The Authority may, with the approval of the Minister of Finance, direct thatsuch percentage of sums received from licence fees be applied for the following purposes—

the strengthening of social programmes related to drug abuse preventionand treatment;

the training of licensees in the cultivation of cannabis;

the funding of scientific and medical research relating to cannabis;

such other purposes, as may be determined by the Authority, afterconsultation with the Minister.

(3)

(4)

(a)

(b)

(c)

18

19 (1)

(a)

(b)

(2)

(3)

(a)

(b)

(c)

(d)

29


Accounts of AuthorityThe Authority shall cause proper statements of its financial affairs to be

maintained and shall prepare in respect of each financial year a statement of its accountsin such form as required by applicable accounting standards.

The accounts of the Authority shall be audited by the Auditor-General or by anauditor appointed annually by the Auditor-General.

A person shall not be qualified for appointment as an auditor undersubparagraph (2) unless he is a public accountant who is registered or deemed to beregistered under the Chartered Professional Accountants of Bermuda Act 1973.

The statement of accounts must present fairly and accurately—

the financial transactions of the Authority during the financial year towhich they relate; and

the financial position of the Authority at the end of the financial year.

The auditor shall state in his report whether—

proper accounting and other records have been kept; and

the receipt, expenditure and investment of monies and the acquisition anddisposal of assets by the Authority during the year have been in accordancewith the provisions of this Act.

The auditor may at any other time report to the Minister of Finance throughthe Authority upon any matter arising out of the performance of his audit.

Where the Auditor-General has not been appointed to be the auditor, a copy ofthe audited financial statements and any report made by the auditor shall be forwarded tothe Auditor-General before they are submitted to the Authority.

As soon as the accounts of the Authority and the financial statements havebeen audited in accordance with the provisions of this Act, but not later than six monthsafter the end of the financial year, a copy of the audited financial statements signed by theChairman, together with a copy of any report made by the auditor, shall be submitted tothe Minister.

Tabling of annual report and accountsThe Authority shall, as soon as practicable after the close of each financial year

but no later than 31st May of each year, cause to be made and transmitted to theMinister—

a copy of the annual report of the operations of the Authority during thatyear; and

a copy of the audited annual statement of accounts of the Authoritycertified by the Auditor-General.

20 (1)

(2)

(3)

(4)

(a)

(b)

(5)

(a)

(b)

(6)

(7)

(8)

21 (1)

(a)

(b)

30


The Minister shall as soon as practicable after receipt of the annual report andannual statement of accounts cause a copy of each to be laid before both Houses of theLegislature.

(2)

31


SCHEDULE 2

(Section 14)

LICENCE FEES

Description FeeAnnual Licence Fee

1. Cultivation Licence $5,0002. Cannabis Retail Shop Licence $8,0003. Import Licence $1,0004. Export Licence $2,0005. Class 1 Manufacturing Licence $20,0006. Class 2 Manufacturing Licence $30,0007. Research Licence $10,0008. Transport Licence $1,500

Late Renewal and Variation of Licence

9. Application for renewal made less than one month before theexpiration of a licence $500

10. Variation of a licence $250

32


SCHEDULE 3

(Section 16)

ADDITIONAL LICENSING REQUIREMENTS

Part 1

Provisions Applicable to Specific Types of Licence

A. Cultivation Licences

Activities authorized by cultivation licenceWithout limiting the matters that the Minister may specify in a cultivation licence,

a cultivation licence shall authorize one or both of the following—

the maximum size of the cannabis crop that may be cultivated;

the maximum number of cannabis plants that a licensee may have in hispossession or control at any time for the normal conduct of business.

Additional requirements for cultivation licencesThe Minister shall not approve an application for a cultivation licence unless, in

addition to the requirements set out in Part 3 of this Act, the following additionalrequirements are satisfied—

arrangements are in place for the off-site security surveillance of thepremises where the cannabis or medicinal cannabis is to be cultivated,whether by electronic means or otherwise;

the premises where the cannabis or medicinal cannabis is to be cultivatedis not situated within 2,640 feet (one half of a mile) of any school or placeof worship;

the premises where the cannabis is to be cultivated consists of an areahaving clearly defined boundaries and ownership of the proposed premisesis clearly established;

that approving the application would not be inconsistent with anyrequirements under any Act or any action taken by the appropriateauthority in exercise of functions under that Act and any other applicablelaws concerning the grant of licences with respect to the carrying on of anyactivity in the geographical area concerned;

the applicant has submitted a draft security contract that includesprovision for—

electronic surveillance or surveillance by other means;

regular physical inspections and written reports thereon; and

1

(a)

(b)

2

(a)

(b)

(c)

(d)

(e)

(i)

(ii)

33


a panic alarm system tied to a base operation that is operated, by asecurity company that is included on a list of approved securitycompanies published by the Authority from time to time;

the applicant has submitted, to the satisfaction of the Minister, a proposalfor the implementation of a system to monitor, track and trace all cannabisor medicinal cannabis cultivated on the proposed premises;

the applicant meets the requirement set out in section 10 of this Act.

Grant a cultivation licenceWhere the Minister approves an application for a cultivation licence, the

Minister shall grant to the applicant, upon receipt of the relevant licence fee, a licence inthe form the Authority may determine, being—

a cultivation licence in the case of premises—

comprising land of more than one half acre but not exceeding 1 acre(outdoor) or a building of more than 300 square feet but not exceeding800 square feet (indoor);

the boundaries of which are secured in accordance with guidelinesissued by the Authority; and

which satisfies the requirements set out in paragraph (2).

The requirements mentioned in paragraph (1)(b) are that there is a clearlydefined area for each aspect of the cultivation process (for example: a plant nursery, aplanting area, and a harvesting and drying area).

Terms and conditions applicable to cultivation licenceAll cannabis or medicinal cannabis that is cultivated in accordance with a

cultivation licence shall not be sold without the written approval of the Minister.

Without prejudice to paragraph (1) and the power of the Minister to imposeterms and conditions on a cultivation licence, the following additional terms and conditionsshall be included—

cultivation by the licensee on the premises shall not exceed the acreage ofland or square footage of the building specified in the class for which thelicence is issued;

compliance with the guidelines issued by the Authority relating to theprocedure, conditions and requirements for the storage of the cannabis ormedicinal cannabis;

a report on the activities conducted on the cultivation site shall be madeto the Authority—

at quarterly intervals, in the case of a commercial cultivation licence;

at such other times as may be reasonably required by the Authority.

(iii)

(f)

(g)

3 (1)

(b)

(i)

(ii)

(iii)

(2)

4 (1)

(2)

(a)

(b)

(c)

(i)

(ii)

34


B. Manufacturing Licences

Matters to be authorised by manufacturing licenceWithout limiting the matters that the Minister may specify in a manufacturing

licence, such licence shall authorise the manufacturing of cannabis products, includingactivities related to such manufacture.

Additional requirements for manufacturing licenceThe Authority shall not make a recommendation to the Minister for the approval of

an application for a manufacturing licence unless, in addition to the requirements set outin Part 3 of this Act, the following requirements are met—

the applicant submits the following information, where applicable,regarding the premises to be used to conduct the manufacturing activity—

the type of cannabis products medicinal cannabis product that will bemanufactured;

the name and address of the person in charge of the manufacturingactivity to be carried out on the premises;

a site plan of the premises, showing all boundaries, dimensions,entrances and exits, interior partitions, walls, rooms, windows, andcommon or shared entryways, including the areas in whichmanufacturing activities will be conducted;

a description of security procedures sufficient to demonstrate how theapplicant will comply with paragraph 12 and any guidelines relating tosame that is issued by the Authority;

a description of the waste disposal procedures sufficient to demonstratehow the applicant will comply with any guidelines relating to same thatis issued by the Authority;

the applicant has satisfied all applicable requirements under any Act orany other standards prescribed under this Act;

the Authority is satisfied that the recommendation to the Minister forapproval would not be inconsistent with any requirements under theBermuda National Parks Act 1986 or any action taken in the exercise offunctions under that Act and any other applicable laws concerning thegranting of licences with respect to the carrying on of any business oractivity in the geographical area concerned.

Pre-licensing security verificationBefore recommending the approval of an application, the Authority shall cause an

inspection to be made of the premises to be used for the proposed manufacturing activityto be carried out under the licence, and in particular to verify that—

the area for receiving the cannabis medicinal cannabis is secure;

5

6

(a)

(i)

(ii)

(iii)

(iv)

(v)

(b)

(c)

7

(a)

35


an electronic surveillance system for off-site monitoring, which capturesall access points to the premises, is in place and in good working order;

the proposed premises are fit for that purpose and are secured inaccordance with guidelines issued by the Authority and consists of anenclosed building that has—

clearly defined areas for receiving, storing and processing cannabis ormedicinal cannabis;

entrances and exits that are the subject of strict access control systemsand monitoring procedures;

a logged access control system is in place, which includes additionalsecurity mechanisms for the areas designated for storage of cannabisproducts or medicinal cannabis products and that access to thosestorage areas is limited to the smallest number of persons as isreasonably practicable for the purposes; and

all designated security posts on the premises are adequately staffed.

Grant of manufacturing licenceWhere the Minister grants a manufacturing licence, the Minister shall, upon

receipt of the relevant licence fee, grant a licence in the form the Authority may determine.

Security PlanA licensee under this Part shall develop and implement a security plan.

At a minimum, the security plan shall include a description of the securitymeasures to be taken to—

prevent access to the licensed premises by any unauthorized personneland protect the physical safety of employees, including, but is not limitedto—

establishing physical barriers to secure perimeter access and all pointsof entry onto a premises (such as locking primary entrances withcommercial grade, non-residential door locks, or where applicable, andsubject to guidelines issued by the Authority, providing fencing aroundthe premises, driveway, and any secondary entrances includingwindows, roofs, or ventilation systems);

installing a security alarm system to notify and record incident(s) wherephysical barriers have been breached;

establishing an identification and sign-in/sign-out procedure forauthorized personnel, suppliers, and/or visitors;

maintaining the premises such that visibility and security monitoringof the premises is possible; and

establishing procedures for the investigation of suspicious activities;

(b)

(c)

(i)

(ii)

(iii)

(d)

8 (1)

9 (1)

(2)

(a)

(i)

(ii)

(iii)

(iv)

(v)

36


prevent against theft or loss of cannabis or medicinal cannabis includingbut not limited to—

establishing an inventory system to track cannabis or cannabisproducts, or medicinal or medicinal cannabis products and thepersonnel responsible for processing it throughout the manufacturingprocess;

limiting access of personnel within the premises to those areasnecessary to complete job duties and to those time-frames specificallyscheduled for completion of job duties;

secure and back up electronic records in a manner that preventsunauthorized access and that ensures the integrity of the records ismaintained.

At a minimum, the licensed premises shall have a complete digital videosurveillance system, which shall be able to effectively and clearly record images of the areaunder surveillance.

The video surveillance system shall be capable of supporting remote access bythe licensee.

To the extent reasonably possible, all video surveillance cameras shall beinstalled in a manner that prevents intentional obstruction, tampering with, or disabling.

Areas that shall be recorded on the video surveillance system include, but arenot limited to, the following—

areas where cannabis or cannabis products or medicinal cannabis ormedicinal cannabis products are weighed, packaged, stored, quarantined,loaded or unloaded for transportation, or moved within the premises;

limited-access areas;

areas containing surveillance-system storage devices, in which case, atleast one camera shall record the access points to such an area; and

the interior and exterior of all entrances and exits to the premises.

The surveillance system shall record continuously twenty-four hours per day.

All recording and monitoring equipment shall be located in secure rooms orareas of the premises in an access-controlled environment.

All surveillance recordings shall be kept on the licensee's recording device fora minimum of ninety days.

All video surveillance recordings shall be copied and sent, or otherwiseprovided, to the Authority upon request.

The video recordings shall display the current date and time of recorded events.

(b)

(i)

(ii)

(iii)

(3)

(4)

(5)

(6)

(a)

(b)

(c)

(d)

(7)

(8)

(9)

(10)

(11)

37


Terms and conditions of manufacturing licenceWithout prejudice to the power of the Minister to impose terms and conditions in

relation to any manufacturing licence, it shall be deemed to be a term and condition of everymanufacturing licence that the licensee shall, for the duration of the licence, remaincompliant with all applicable requirements of applicable laws relating to standards orintellectual property.

C. Import Licences

Application for import licenceThe Minister shall not approve an application for an import licence unless, in

addition to the requirements set out in Part 3 of this Act, the applicant submits the followingadditional information—

in respect of any cannabis product or medicinal cannabis to beimported—

its description;

its intended use;

if applicable, its brand name;

its quantity;

the name and address of the exporter in the country of export;

the port of entry into Bermuda;

the address of the premises to which the cannabis product or medicinalcannabis is to be delivered; and

each mode of transportation used, the country of export and, whereapplicable, any country of transit or transhipment.

Contents of import licenceAn import licence shall contain the following—

the licence number;

the information referred to in paragraph 14;

the effective date of the import licence;

its expiry date;

if applicable, any conditions that the licensee shall meet in order to reduceany potential public health, safety or security risk, including the risk of theimported substance being diverted to an illicit market or use.

An import licence is valid only for the importation in respect of which it isissued.

10

11

(a)

(i)

(ii)

(iii)

(iv)

(b)

(c)

(d)

(e)

12 (1)

(a)

(b)

(c)

(d)

(e)

(2)

38


Provision of import licenceOn request of a customs officer, the holder of an import licence shall provide a copy

of the import licence to the customs officer, sufferance warehouse or bonded warehouse,as the case may be, at the port of entry in Bermuda.

Declaration after release from customsThe holder of an import licence shall provide the Authority, within 15 days after the

day of release of a shipment that contains the imported cannabis product or medicinalcannabis, in accordance with the Revenue Act 1898, with a declaration that contains thefollowing information—

the name of the licensee and a copy of the import licence in respect of theshipment;

the date of release of the shipment; and

in respect of the imported cannabis product or medicinal cannabisproduct—

its description;

its intended use;

if applicable, its brand name; and

its quantity.

Transportation of imported substanceThe holder of an import licence shall ensure that, after the imported cannabis

product or medicinal cannabis product is released, it is transported directly to the premisesspecified in the import licence.

D. Export Licences

Application for export licenceThe Minister shall not approve an application for an export licence unless, in

addition to the requirements set out in Part 3 of this Act, the applicant submits the followingadditional information—

in respect of the cannabis or medicinal cannabis to be exported;

its description;

its intended use;


its quantity; and

in the case of dried cannabis, the percentages of delta-tetrahydrocannabinol w/w and cannabidiol w/w;

13

14

(a)

(b)

(c)

(i)

(ii)

(iii)

(iv)

15

16 (1)

(a)

(i)

(ii)

(iii)

(iv)

(v)

39


the name and address of the importer in the country of final destination;

the port of exit from Bermuda and, if applicable, any country of transit ortranshipment;

the address of the customs office, sufferance warehouse or bondedwarehouse at which the shipment is to be presented for export;

each mode of transportation used; and

a declaration that, to the best of the knowledge of the applicant, theshipment does not contravene any laws of the country of final destinationor any country of transit or transhipment.

An application for an export licence shall be accompanied by a copy of theimport licence issued by a competent authority in the country of final destination that setsout the name and address of the site of the importer in the country of final destination.

An application for an export licence shall—

be signed and dated by the applicant; and

include a statement, signed and dated by the applicant, indicating that allinformation submitted in support of the application is correct and completeto the best of the signatory’s knowledge.

Contents of export licenceAn export licence shall contain the following—

the licence number;

the information referred to in paragraph 19;

the effective date of the export licence;

its expiry date;

the expiry date of the import licence issued by a competent authority in thecountry of final destination; and

if applicable, any conditions that the licensee shall meet in order to reduceany potential public health, safety or security risk, including the risk of theexported substance being diverted to an illicit market or use.

An export licence shall be valid until—

its expiry date or the date on which it is suspended or revoked inaccordance with this Act; and

the expiry date of the import licence that applies to the cannabis to beexported which is issued by a competent authority in the country of finaldestination or the date on which that licence is suspended or revoked.

An export licence granted under this Act is valid only for the exportation inrespect of which it is issued.

(b)

(c)

(d)

(e)

(f)

(2)

(3)

(a)

(b)

17 (1)

(a)

(b)

(c)

(d)

(e)

(f)

(2)

(a)

(b)

(3)

40


Refusal to issue export licenceThe Minister may refuse an application for an export licence if—

the applicant does not hold a licence in respect of the cannabis that is tobe exported;

the Minister has reasonable grounds to believe that the shipment for whichthe export licence is requested would contravene the laws of the country offinal destination or any country of transit or transhipment; or

the shipment would not be in conformity with the import licence issued bya competent authority of the country of final destination.

Provision of copy of export licenceOn request of a customs officer, the holder of an export licence shall provide a copy

of the export licence to the customs officer, sufferance warehouse or bonded warehouse, asthe case may be, at the port of exit from Bermuda at the time of exportation.

Declaration after exportThe holder of an export licence shall provide to the Authority, within 15 days after

the day on which a shipment of the medicinal cannabis product is exported, a declarationthat contains the following information—

the name of the licensee and a copy of the export licence in respect of theshipment;

the date of export; and

in respect of the exported cannabis or medicinal cannabis—

its description and an indication as to whether it is in the form of seeds,plants or dried medicinal cannabis;

its intended use;


its quantity; and

in the case of dried cannabis or medicinal cannabis, its percentages ofdelta-9- tetrahydrocannabinol w/w and cannabidiol w/w.

E. Research Licences

Additional requirements for application for research licenceThe Minister shall not approve an application for a research licence authorizing—

the provision of analytical services unless the Minister is satisfied that theapplicant is duly qualified to provide those services;

the conduct of any research or development unless the Minister is satisfiedthat the applicant is duly qualified to conduct the research or development.

18

(a)

(b)

(c)

19

20

(a)

(b)

(c)

(i)

(ii)

(iii)

(iv)

(v)

21

(a)

(b)

41


Grant of research licenceWhere the Minister approves an application for a research licence, the Minister

shall, upon receipt of the relevant licence fee, grant the applicant a research licence in theform the Authority may determine, being a licence authorizing—

the conduct, for experimental purposes, of research utilising cannabis ormedicinal cannabis, which shall be described as a research (experimentalpurposes) licence; or

the provision of analytical services in respect of cannabis or medicinalcannabis, which shall be described as a research (analytical services)licence.

Terms and conditions of research licenceWithout prejudice to the power of the Minister to impose terms and conditions for

a research licence, it shall be deemed to be a term and condition of every research licencethat the licensee shall keep a log, in the form approved by the Authority, of all personsentering and exiting the premises on which the activities which are the subject of the licenceare carried out.

F. Transport Licences

Grant and scope of transport licenceWhere the Minister approves an application for a transport licence, the Minister

shall upon receipt of the relevant fee, grant a transport licence in the form the Authoritymay determine.

A licence issued under paragraph (1) shall be construed as authorising, in thelicensed vehicle, the transportation of cannabis or medicinal cannabis to or from a locationspecified in paragraph (3), for use for any medicinal or research purpose.

The locations mentioned in paragraph (2) are—

any cultivation site; or

any premises on which a licensee is permitted to process or carry out anyresearch on cannabis or medicinal cannabis.

Additional terms and conditions of transport licenceWithout prejudice to the power of the Minister to impose terms and conditions for

any transport licence, the following terms and conditions shall be deemed to be included inthe terms and conditions of a transport licence—

the licensee shall be accompanied by a security officer in the vehicle duringany transportation of cannabis to observe the secure delivery of cannabisor medicinal cannabis to the delivery location;

a log of all persons accessing the vehicle shall be kept by the licensee in aform approved by the Authority and the log made available to the Authorityfor inspection on request; and

22

(a)

(b)

23

24 (1)

(2)

(3)

(a)

(b)

25

(a)

(b)

42


all times for transportation shall be between the hours of 6 o’clock in themorning and 6 o’clock in the afternoon.

(c)

43


SCHEDULE 4

(Section 16)

CANNABIS RETAIL SHOP

Part 1

Preliminary

InterpretationIn this Schedule—

“licence” means a cannabis retail shop licence granted under section 13 of the Act;

“licensee” means the holder of a cannabis retail shop licence;

“patron” means a customer of a retail shop;

“premises” means any land or building, and includes any vehicle or receptaclelocated on such land or in any such building used for the conduct of activitiesauthorised under a licence;

“retail shop” means a cannabis retail shop licensed under section 13 the Act.

HempFor the avoidance of doubt, unless otherwise provided, this Schedule shall not

apply to hemp.

Part 2

General Provisions for Licensing

GuidanceThe Minister may issue such guidance for the purposes of this Schedule as is

considered appropriate and such guidance shall be taken into account when assessingcompliance with the provisions of this Schedule.

The Minister may from time to time revise any guidance issued under thisparagraph.

The Statutory Instruments Act 1977 does not apply to any guidance publishedunder this paragraph.

Authorized activitiesA retail shop licence authorizes a licensee—

to sell cannabis from a retail shop to patrons;

to sell cannabis from a retail shop to patrons for only consumption in theretail shop;

2

3

4 (1)

(2)

(3)

5

(a)

(b)

44


in paragraph (a) or (b) to sell cannabis accessories.

Cannabis sold in a retail shopThe Minister shall prescribe the price of cannabis to be sold in a retail shop by

Order in the Gazette.

A licensee shall only sell the following forms of cannabis or cannabisproducts—

dried cannabis;

cannabis oil;

fresh cannabis;

edible cannabis;

cannabis extracts;

cannabis topicals.

A licensee who sells cannabis at a different price or in a form other thanprovided in paragraph (2) shall have his licence revoked immediately.

The Statutory Instruments Act 1977 does not apply to an Order publishedunder this paragraph.

Part 3

Retail Shop Licence

Restrictions on number of licences that may be heldA licensee shall only apply for and hold one licence.

Application for a licenceAn application for a licence may be made to the Minister, in accordance with

this Act.

The Minister shall not approve an application for a licence unless, in additionto the requirements set out in section 13 of this Act, the following additional requirementsare satisfied, that—

arrangements satisfactory to the Authority are in place for the off-sitesecurity surveillance of the retail shop where the cannabis is to be suppliedor sold, whether by electronic means or otherwise;

the premises of the proposed retail shop is not situated within 5,280 feet(a mile) of any school or place of worship;

the Authority is satisfied that approving the application would not beinconsistent with any requirements under any Act or any action taken bythe appropriate authority in exercise of functions under that Act and any

(c)

6 (1)

(2)

(a)

(b)

(c)

(d)

(e)

(f)

(3)

(4)

7

8 (1)

(2)

(a)

(b)

(c)

45


other applicable laws concerning the grant of licences with respect to thecarrying on of any activity in the geographical area concerned;

the applicant has submitted, to the satisfaction of the Authority, a draftsecurity contract that includes provision for—

off-site web-enabled electronic surveillance;

regular physical inspections and written reports thereon; and

a panic alarm system tied to a base operation that is operated, by asecurity company that is included on a list of approved securitycompanies published by the Authority.

Terms and conditionsIn addition to the terms and conditions in section 15 of this Act, the following

terms and conditions shall apply to a licence—

cannabis purchased in retail shop shall not be consumed in a retail shopthat is licensed only to sell cannabis;

cannabis shall only be sold and consumed in retail shop that is licensedfor the consumption of cannabis;

the only business that takes place in the retail shop that is licensed to sellcannabis is the sale of the items referred to in paragraph 6(2);

cannabis sold in a retail shop licensed for consumption shall not beconsumed by a patron outside of the retail shop;

the payment for cannabis purchased by a patron shall take place in theretail shop;

cannabis shall not be sold to a person who intends to deliver the cannabisto another person, for compensation or otherwise;

the maximum amount of cannabis that can be sold to a patron in atransaction is XX grams of dried cannabis or an equivalent amount;

cannabis that is sold under a licence only for the sale of cannabis shall besold in its original packaging that has never been opened;

the licensee for only the sale of cannabis shall not open the packaging ofcannabis unless—

the purpose of opening the packaging is to allow patrons to smell thecannabis or another purpose approved by the Authority; and

cannabis from the opened packaging is not sold;

a patron of a retail shop licensed only to sell cannabis shall not open thepackaging of cannabis in the retail shop;

the retail shop shall be located in a permanent building or structure andbe enclosed by floor-to-ceiling walls that are not transparent;

(d)

(i)

(ii)

(iii)

9 (1)

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(i)

(ii)

(j)

(k)

46


the entrances and exits of the retail shop shall not be shared with any otherstore, business or dwelling unit.

The Minister shall not grant a licence for an area as a retail shop if the areaprovides access to—

a business in which the majority of the goods or services offered areprimarily directed at minors; or

premises that are subject to a licence issued under the Liquor Licence Act1974 that authorizes patrons to consume intoxicating liquor other than theconsumption of samples.

Grant of licences subject to conditionsThe following conditions shall be observed with respect to the grant of

licences—

the Minister shall be satisfied—

that the retail shop is suitably located and well designed; and

that there are no sustainable objections to the grant of the licence tothe applicant and, in particular, no such objections, raised by or onbehalf of persons owning or occupying neighbouring property, based onany of the following anticipated grounds—

undue noise;

accumulation of trash;

disruption of the traffic flow; or

disturbance attributable to cannabis misuse;

every licence shall be granted in respect of a specified premises on whichalone it shall be lawful to sell or sell and consume cannabis and the licenceshall contain a particular description of such premises;

the premises in respect of which a licence is granted for the consumptionof cannabis shall have no internal or private communication with any otherbuilding or premises, but shall consist either of the whole of an entirelydetached building or of one or more rooms having no internal or privatecommunication with any other building, room or premises.

Without prejudice to any other provision of this Schedule, the Minister maygrant a licence subject to such conditions as the Minister deems expedient to secure theproper conduct of the retail shop.

A licence shall be authority for the sale or the sale and consumption of cannabisonly in the parts of the premises delineated in plans submitted to the Authority undersection 13 of the Act and approved by the Authority as parts of the retail shop in whichsuch cannabis is permitted to be sold or sold and consumed.

(l)

(2)

(a)

(b)

10 (1)

(a)

(i)

(ii)

(A)

(B)

(C)

(D)

(b)

(c)

(2)

(3)

47


Where any change (however made) occurs in the management or in the controlof the management, or to any of the employees of a retail shop, the licensee shall forthwithsupply to the Authority, in writing, details of the change.

Any conditions imposed under subparagraph (2) shall be endorsed on thelicence and the Minister shall by notice in writing to the applicant give its reasons for theimposition of those conditions.

Mandatory condition of retail shop licenceThe holder of a licence, his servant or agent shall examine the photographic

identification as proof of age of any person seeking entry into the retail shop who appearsto be under the age of 21 before granting access.

In this section, “photographic identification” means identification which bearsa photograph of the person, his date of birth and a holographic mark and includes—

a valid passport;

a valid driver’s licence that clearly displays the person’s photograph anddate of birth; or

other valid government issued identification that clearly displays theperson’s photograph and date of birth.

Where a person is required to provide photographic identification as proof ofage and fails to produce such photographic identification, a licensee, his servant or agentshall—

refuse entry to that person; or

refuse to sell cannabis to that person, and

shall require him to leave the licensed premises.

Objection to grant or renewal of licenceAny person ordinarily resident in the parish in which the retail shop is sought

to be licensed, or any person in any other parish being the owner or occupier of any propertylying within three hundred yards of such retail shop, or the Commissioner of Police mayobject to the grant of a licence in respect of the retail shop and where objection is made thefollowing provisions shall have effect—

written notice stating the grounds of objection to the grant of a licence shallbe served on the Authority and on the applicant, and, where the personobjecting to the application is not the Commissioner of Police, on theCommissioner of Police, in each case not less than three days before thedate set by the licensing authority for hearing the application;

in the event of failure to comply with subparagraph (a) the Authority, uponsuch terms as to payment of costs and expenses as may seem just, mayadjourn any hearing to enable at least three days to elapse between serviceof the notice and the hearing;

(5)

(6)

11 (1)

(2)

(a)

(b)

(c)

(3)

(a)

(b)

13 (1)

(a)

(b)

48


the Authority may direct or permit the amendment of any notice;

the Authority may, subject to such conditions as it thinks fit to impose,allow a number of persons qualified under this subparagraph to berepresented for the purposes of the objection by a person, whether or nothimself so qualified, appointed by them.

The Authority, in considering any objection, shall receive evidence on oath, andany member of the Authority present at the hearing may administer such oath.

The Authority shall have the same powers with regard to compelling theattendance and examination of witnesses as are conferred on a court of summaryjurisdiction by the Criminal Jurisdiction and Procedure Act 2015 and it shall be the dutyof any police officer to whom any summons or warrant signed by the presiding member ofthe Authority is issued to serve or execute the same in the manner required by section 8 ofthat Act.

The Authority may grant costs in accordance with the scale of costs applicablein a court of summary jurisdiction to a successful applicant for the grant or transfer of alicence against any person who has lodged an objection under this paragraph, or vice versa,and such costs shall be recoverable in all respects as if they had been costs awarded in acivil action in a court of summary jurisdiction.

Plans; retail shopAn applicant for the grant or renewal of a licence shall submit for the approval

of the Authority a sketched plan of the premises intended to be used as a retail shop showingby appropriate colourings and markings—

the general lay-out of the premises;

the parts of the premises to be used for the sale or consumption ofcannabis;

the location of sanitary facilities; and

such other information as the Authority may require.

The provisions of paragraph (1) shall apply in respect of all premises upon thefirst application for the grant of a licence, but shall not apply to any subsequent applicationin respect of the same premises unless an alteration is intended to be made which wouldrender inaccurate the plan submitted under paragraph (1), in which event a revised plan ofthe premises shall be submitted to the Authority indicating the proposed alterations.

The Minister may refuse to grant or renew a licence in respect of any premisesunless the alterations have previously been approved by the Authority.

The Authority shall retain the plans of licensed premises submitted under thissection.

(c)

(d)

(2)

(3)

(4)

14 (1)

(a)

(b)

(c)

(d)

(2)

(3)

(4)

49


Notification of Commissioner of Police of licences grantedWithin 14 days after the granting of a licence the Authority shall notify the

Commissioner of Police, in writing, the name of the licensee and the location of the retailshop, and the Commissioner of Police shall keep a list of all licences granted and in force.

Surrender of licenceA licensee with the prior approval of the Minister may surrender his licence by

written notice to the Minister.

A surrender shall take effect on the date of the giving of approval by theMinister.

The surrender of a licence shall be irrevocable unless the Minister by notice inwriting allows it to be withdrawn.

Where any licence has been surrendered under paragraph (1), no part of thelicence fee shall be refunded.

PART 2

PERMITTED HOURS

Permitted hoursThe permitted hours in respect of a retail shop shall be 10:00 a.m. to 10:00

p.m. of the same day.

The Minister may, on his own initiative or at the request of any applicant orlicensee, limit the permitted hours in respect of any retail shop and any such limitationshall be endorsed on the licence and shall be the permitted hours in respect of that retailshop.

Prohibition of sale etc. of cannabis outside permitted hoursExcept during the permitted hours, or as permitted by or under this Act, a

person shall not—

himself or by his servant or agent—

sell cannabis in a retail store; or

permit the consumption of cannabis in a retail shop;

purchase cannabis in a retail shop;

consume cannabis in a retail shop; or

take cannabis from a retail shop.

A person who contravenes subparagraph (1) commits an offence and shall beliable on summary conviction to a fine of $2,000 or to imprisonment of a term not exceedingsix months, or to both.

15

16 (1)

(2)

(3)

(4)

17 (1)

(2)

18 (1)

(a)

(i)

(ii)

(b)

(c)

(d)

(2)

50


PART 3

CONDUCT IN RETAIL SHOPS

Duty to display notice of permitted hoursA licensee shall cause to be displayed and to be kept on display in a

conspicuous place in the retail shop, a printed notice specifying the days and hours duringwhich the sale or sale and consumption of cannabis is permitted in the retail shop underhis licence.

A licensed person who fails to comply with subparagraph (1) commits anoffence and is liable on summary conviction to fine of $500 for each day the offencecontinues.

Duty of licensee to lock up cannabisIt shall be the duty of a licensee to ensure that all cannabis in the retail shop

is kept locked up at all times, including during the permitted hours and that any doorleading to the retail shop or other place in the retail shop where cannabis is ordinarily soldor consumed, and opening on a public road or street or other place to which the public haveaccess, or opening on any other part of the retail shop, is kept locked except during thepermitted hours.

A licensee who, himself or by his servant or agent, contravenes subparagraph(1) commits an offence and is liable on summary conviction to a fine of $800.

Duty of licensee to produce licenceA licensee who refuses to produce on demand his licence to any police officer when

acting in the execution of his duty commits an offence and is liable on summary convictionto a fine of $200.

Punishment of licensee being intoxicated in a retail shopAny licensee who is intoxicated by cannabis or who allows his servant or agent to

be intoxicated, in a retail shop commits an offence and is liable on summary conviction toa fine of $600.

Restrictions on consumption of cannabis in unlicensed part of premisesWhere a retail shop is licensed for the sale and consumption of cannabis, the

licensee, by his servant or agent, shall not permit any person to consume cannabis in anyother part of the retail shop that is not licensed for the consumption of cannabis.

Any person acting in contravention of subparagraph (1) commits an offence andis liable on summary conviction to a fine of $1,000.

Opening packagingA person shall not open the packaging of cannabis in a retail shop that is not

licensed for consumption.

19 (1)

(2)

20 (1)

(2)

21

22

23 (1)

(2)

24 (1)

51


Any person acting in contravention of subparagraph (1) commits an offence andis liable on summary conviction to a fine of $1,000.

Restrictions on employment of persons under the age of 21No licensee shall employ a person under the age of 21 years in a retail shop.

A person acting in contravention of subparagraph (1) commits an offence andis liable on summary conviction to a fine of $2,000.

General restrictionsA licensee or an employee of a licensee shall not—

sell cannabis to a person who is intoxicated from alcohol or drug or showssigns of intoxication from alcohol or any drug;

allow a person who is intoxicated from alcohol or a drug or shows signs ofintoxication from alcohol or a drug to enter or remain in a retail shop;

allow violent or disorderly conduct in a retail shop;

allow unlawful activities or conduct in a retail shop;

allow a person to enter a retail shop or to remain in a retail shop if thelicensee or employee knows that the person has possession of an offensiveweapon.

A licensee or an employee of a licensee may—

if the licensee or employee believes a person is intoxicated from alcohol ora drug or shows signs of intoxication from alcohol or a drug—

request that the person leave the retail shop; or

forbid the person from entering the retail shop; and

if the licensee or employee believes the presence of a person in anestablishment is undesirable or that the person has, without lawful excuse,possession of an offensive weapon—

request that the person leave the retail shop;

forbid the person from entering the retail shop.

A person shall not—

remain in a retail shop after the person is requested to leave in accordancewith subparagraph (2);

enter an establishment within 24 hours after the time the person wasrequested to leave the establishment in accordance with subparagraph (2).

A police officer may arrest without warrant a person who has committed, orwhom the police officer, with reasonable cause, suspects to have contravened subparagraph(3).

(2)

25 (1)

(2)

26 (1)

(a)

(b)

(c)

(d)

(e)

(2)

(a)

(i)

(ii)

(b)

(i)

(ii)

(3)

(a)

(b)

(4)

52


PART 4

POLICE POWERS

Inspection of retail shop by Commissioner of PoliceIt shall be the duty of the Commissioner of Police to inspect every retail shop at

least once in every six months and to report in writing to the Authority whether, in hisopinion, such retail shops are or are not being used or maintained in accordance with thisSchedule.

Power of police to enter licensed premises, etcAny police officer when on duty may, for the purpose of preventing or detecting

the commission of any offence against this Schedule, at all times enter any retail shop inrespect of which no licence is in force, and may remain on such premises for so long as hemay deem necessary for the carrying out of his duties.

If any licensee, his servant or agent, or any other person acting with hisknowledge or consent, fails or unreasonably delays to admit a police officer demanding toenter in pursuance of this paragraph, he commits an offence and is liable on summaryconviction to a fine of $700.

In any proceedings for an offence under this paragraph the burden of provingthat any delay in admitting a police officer was reasonable shall lie upon the defendant.

Powers of searchAny magistrate having reason to believe, from the information or evidence upon

oath of any credible person, that cannabis is being unlawfully sold or kept for sale in anypremises which are not licensed retail shops may issue a warrant to any police officer,authorizing him, with or without assistants, to enter and search those premises at any hourby day or night, for the purpose of ascertaining whether an offence under this Schedule isbeing or has been committed.

If, upon such search, any cannabis is found in such quantities or under suchcircumstances as to satisfy the police officer that it is kept for the purpose of unlawful sale,then he, and any person assistant to him, shall seize and carry away or otherwise securethe cannabis.

If upon a hearing before a court of summary jurisdiction the court adjudgesand determines that such cannabis has been kept for the purpose of unlawful sale, thenthe court may adjudge the cannabis to be forfeited.

Cannabis adjudged to be forfeited shall be sold in such manner as the courtshall direct and the net proceeds from such sales shall be paid into the Consolidated Fund.

Before a hearing under subparagraph (3), every person who is, or who appearsto the police officer to be the owner of such cannabis shall be summoned to appear at suchhearing.

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28 (1)

(2)

(3)

29 (1)

(2)

(3)

(4)

(5)

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Obstruction of police officersAny person who interrupts or obstructs any police officer while in the execution of

any duty imposed on him, or any power conferred on him, by or under the authority of thisSchedule, commits an offence and shall be liable on summary conviction to a fine of $400.

Power of police to close retail shop for a period not exceeding 24 hoursA police officer of the rank of superintendent or above, may, upon reasonable

belief that any serious disorder or threat to public safety has occurred, is likely to occur oris reasonably expected to occur in a retail shop or near a retail shop, order any licensee,his servant or agent carrying on business at or near the retail shop where such seriousdisorder or threat to public safety has occurred, is likely to occur or is expected to occur,to close the licensed premises and any place of business of the licensed person, his servantor agent near the retail shop, for a period not exceeding 24 hours, for the preservation ofpublic peace.

A licensee, his servant or agent who contravenes subparagraph (1) commits anoffence and is liable on summary conviction to a fine not exceeding $7,850.

Evidential provisionsThe following provisions shall have effect in relation to any criminal proceedings

taken under this Schedule—

the prosecution shall not be required to prove that the defendant, at thetime of the offence charged, did not hold a licence, but the burden of proofof his having held such licence at such time, where relevant, shall be onthe defendant, who shall be presumed to have held no licence at the timeof the commission of the offence charged, in the absence of proof to thecontrary;

for the purposes of subparagraph (a) a certificate purporting to be signedby the Chairman of the Authority to the effect that any person did on anyspecified day hold a licence shall be sufficient evidence of the fact certified,in the absence of proof to the contrary;

evidence that a transaction in the nature of a sale of cannabis took placeshall be evidence of the sale of the cannabis without proof that moneypassed;

evidence that consumption of cannabis was about to take place shall beevidence of the consumption of cannabis without proof of actualconsumption;

evidence that any person other than the licensee, his servant or agent,consumed or intended to consume cannabis in the retail shop shall beevidence that the cannabis was sold to that person by the licensee, hisservant or agent;

where cannabis in open packages is found in any retail shop that is notlicensed for consumption, consumption of cannabis shall be deemed tohave taken place in that retail shop, unless the contrary is proved.

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31 (1)

(2)

32

(a)

(b)

(c)

(d)

(e)

(f)

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Suspension or cancellation of licenceOn the conviction of a licensee for an offence under this Schedule, he shall be

liable, at the discretion of the court by which he is convicted and in addition to anypunishment imposed or order made, to have his licence suspended or cancelled.

Without prejudice to subparagraph (1) where the court suspends or cancels thelicence of a licensed person it may further order that the person and any corporate bodyover which he exercises effective control shall be disqualified for obtaining a licence eitherabsolutely or for such period as the court may determine.

PART 5

GENERAL PROVISIONS

Record keeping requirementsThe records that a licensee shall keep are as follows—

cannabis purchase records;

cannabis sales records, including quantity of cannabis sold and pricescharged;

security camera recordings for a period of ............;

when cannabis is disposed of, records setting out the date, location andmethod of disposal and the type and amount of cannabis;

sales records respecting cannabis accessories;

invoices and purchase receipts for all equipment and other inventory thatis used in the operation of the establishment;

employee records, including names, addresses, compensation, primary jobresponsibilities, shift schedules and dates of employment.

PART 6

OFFENCES

Altering or adding to cannabisA licensee shall not—

alter cannabis in smell jars or cannabis in its packaging; or

add a substance to cannabis in smell jars or to cannabis in its packaging.

Any licensee who alters or adds a substance to cannabis commits an offenceand shall be liable on summary conviction to a fine not exceeding $4,000 or to six monthsimprisonment, or to both.

33 (1)

(2)

34

(a)

(b)

(c)

(d)

(e)

(f)

(g)

35 (1)

(a)

(b)

(2)

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Prohibition; consumption of cannabis at an unlicensed retail shopNo person shall have or consume any cannabis in a retail shop in respect of

which a licence is not in force.

The proprietor, manager or person for the time being in charge, of any retailshop who knowingly permits or allows any cannabis to be consumed in such premisescommits an offence and is liable on summary conviction to a fine not exceeding $1,000.

Any other person having or consuming cannabis on such premises commits anoffence and is liable on summary conviction to a fine not exceeding $500.

Persons found in a retail shop outside permitted hoursWhere a person is found in a retail shop outside the permitted hours or the

period mentioned in paragraph 17—

he shall, unless he proves that he is there for a lawful purpose, commitsan offence; and

the licensee if, himself or by his servant or agent, permits that person tobe there and does not prove that he is there for a lawful purpose commitsan offence,

and is liable on summary conviction to a fine of $500.

Where, on being asked by a police officer for the name and address, a personfound in a retail shop outside the permitted hours or such period as aforesaid—

refuses to give them;

gives a false name or address; or

refuses to answer satisfactorily any question put to him to ascertain thecorrectness of the name or address given,

he commits an offence and is liable on summary conviction to a fine of $600.

A police officer may arrest without warrant any person whom he, withreasonable cause, suspects of having committed an offence under subparagraph (2).

Procuring cannabis for a person under the age of 21 yearsIf a person in a retail shop—

procures cannabis for consumption by a person under the age of 21 years;or

aids a minor in obtaining or consuming cannabis in a retail shop,

he commits an offence and is liable on summary conviction to a fine of $300.

It shall be a defence to any charge under this paragraph for the person to provethat he believed and had reasonable grounds for believing that the person was 21 years ofage or older.

36 (1)

(2)

(3)

37 (1)

(a)

(b)

(2)

(a)

(b)

(c)

(3)

38 (1)

(a)

(b)

(2)

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Restrictions on consumption of cannabis in or near a retail shop licensed to sellWhere, having purchased cannabis from a licensee, his servant or agent, in a retail

shop that is licensed only to sell cannabis, a person consumes cannabis,

in the retail shop;

in premises which adjoin or are near the retail shop and which belong tothe licensee or under his control or used with his permission,

then, that person and the licensee, if the consumption is with the knowledge and consentof the licensee or of his servant or agent, commits an offence and is liable on summaryconviction to a fine of $500.

Misleading informationA person who wilfully—

provides any false or materially misleading information in any application,report or other document required to be furnished to the Authority; or

fails or refuses to produce any document or other information which theperson is required to produce,

commits an offence and is liable on summary conviction to fine not exceeding $2,000 orimprisonment for a term of six months or both.

Miscellaneous offencesA licensee who—

refuses or fails to admit in his retail shop on demand any police officerwhen acting in the execution of his duty and demanding admission in thatcapacity;

permits any violent, quarrelsome or disorderly conduct in his retail shopor on any other premises in his occupation adjoining or contiguous thereto;

in his retail shop, sells or serves any cannabis to or for consumption byany person under the age of 21 years, or allows any person under the ageof 21 years to consume cannabis;

allows any person who is unruly to remain in his retail shop or on any otherpremises in his occupation adjoining or contiguous thereto;

allows his retail shop, or any premises in his occupation adjoining orcontiguous thereto, to be the resort of notorious bad characters or personsunder the influence of any controlled drug as defined in the Misuse ofDrugs Act 1972, or allows any such persons to remain in the retail storelonger than is necessary,

commits an offence.

A licensee, his servant or agent, who—

39

(a)

(b)

40

(a)

(b)

41 (1)

(a)

(b)

(c)

(d)

(e)

(2)

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fails to examine photographic identification before granting access to thelicensed premises contrary to paragraph 11;

allows a person under the age of 21 years to gain entry to or be in a retailshop at a time when cannabis is on sale at the retail shop,

commits an offence.

Any person who—

fails to leave a licensed premises on being asked by a licensed person, hisservant or agent to leave contrary to paragraph 26; or

produces any photographic identification that has been altered or is false,

commits an offence and is liable on summary conviction to a fine not exceeding $1,000.

It shall be a defence for a person charged with an offence under subparagraph(1)(c) or (2) to prove that he believed, and had reasonable grounds to believe that the personwas 21 years or older.

A person found guilty of an offence under subparagraph (1)(c) or (2) is liable onsummary conviction to a fine not exceeding $5,000.

(a)

(b)

(3)

(a)

(b)

(4)

(5)

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CANNABIS (LICENSING AND REGULATION) ACT 2020 entitled A … · CANNABIS (LICENSING AND REGULATION)...

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