Ontario Municipalities with Tobacco Retailer Licensing Page 1

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Ontario Municipalities with Tobacco Retailer Licensing

Why a municipal tobacco retailer licence?

This is a valid question, as Ontario does currently require all tobacco retailers to hold a provincial vendor permit. The government has also taken

steps to reduce the prevalence of contraband tobacco in Ontario—recent amendments to the Tobacco Tax Act include a requirement that

tobacco retailers currently holding a permit under the Retail Sales Tax Act transition to a tobacco retail dealer permit, effective July 1st, 2018.

Among other requirements, tobacco retail dealers must sell only legal tobacco products and only buy tobacco products from Ontario-registered

tobacco wholesalers. While this development is positive in terms of addressing the problem of unregulated tobacco, it does nothing to address

the more pressing problem of the widespread retail availability of legal tobacco in communities.

Benefits of a municipal licence include:

• Provides an added incentive for retailers to comply with all tobacco control laws and regulations;

• Puts more control into the hands of a municipality, especially if SFOA convictions are a violation of the licence;

• Sends a strong message to tobacco vendors and the general public about the uniquely lethal nature of tobacco and the need for greater

regulatory oversight on tobacco sales;

• Provides a disincentive for low-volume retailers to continue selling tobacco;

• Establishes a mechanism to reduce the total number of tobacco vendors;

• Creates additional revenue to support more frequent active enforcement inspections; evidence suggests that retailer behaviour can be positively influenced by active enforcement of youth access

laws;1

o More frequent visits to vendors also means an opportunity for public health officials to build relationships and trust with vendors, and to educate and counter the information and messages

retailers receive from tobacco manufacturers.

1 Diemert L, Dubray J, Babayan A et al. Strategies Affecting Tobacco Vendor Compliance with Youth Access Laws: A Review of the Literature. Toronto: Ontario Tobacco Research Unit, October 2013. http://otru.org/wp-content/uploads/2013/10/special_vendor_compliance.pdf

A municipal tobacco retailer licence

is an important foundational

tobacco control policy upon which

further controls and penalties,

including zoning,

can be built.

Ontario Municipalities with Tobacco Retailer Licensing Page 2

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Optional licensing requirements

Consider the following options that could be made a condition of licence:

• A licence applicant must provide proof of completion (100% score) of the online Smoke-Free Ontario tobacco vendor training test or the e-cigarette vendor training test prior to being issued a licence;2

• Regular online vendor training required for licence holders and all employees who sell tobacco and/or vaping products. Successful (100% score) completion of the training must happen before anyone

can sell tobacco and/or vaping products;

o A requirement that SFOA vendor training certificates be stored in a binder at the point of sale, ready for inspection;

o A fine for failure to have a binder ready for inspection with up-

to-date certificates for all employees who sell tobacco and/or

vaping products;

o A fine for out-of-date or forged certificates.

• Make specific SFOA convictions a violation of licence; for example,

tobacco sales to minors. The table illustrates how the terms and

enforcement of a licence could compare with the current provincial

automatic prohibitions. This strategy is beneficial for two reasons. First, it

puts more control in the hands of a municipality regarding who is

permitted to sell tobacco when there are provincial violations involved.

The “three strikes, you’re out” approach is appropriately reflective of the

uniquely lethal nature of cigarettes and is more punitive than the SFOA

which has recently been amended to make it more onerous to secure a

12-month AP. It does not make sense, nor is it consistent from a policy

perspective, for a retailer convicted multiple times of selling tobacco to

minors to be given an additional opportunity to violate the law before being subject to a 12-month AP. By including an automatic revocation of the tobacco licence in the licensing bylaw, it reduces the

administrative burden of having to go to a licensing tribunal or committee each time to make the case.

2 Note that the Electronic Cigarettes Act and the Smoke-Free Ontario Act have both been repealed and replaced by the new Smoke-Free Ontario Act, 2017. These two separate websites will eventually be consolidated to reflect the new law.

Municipal Licence

(hypothetical)

Provincial Automatic Prohibition

(Smoke-Free Ontario Act, 2017)

Person convicted of a specified SFOA violation can be an employee or owner of the business (licence holder).

Person convicted of an SFOA violation must be the owner of the business.

Automatic revocation of licence for a specified SFOA conviction for a specified length of time. Owner can re-apply and pay annual fee for a second licence following a specified waiting period. (“Strike One”)

6 months for “only two convictions” of tobacco sales offences committed in the same place during a 5-year period

Second specified SFOA conviction committed in same place during a 5-year period = automatic revocation of licence for a specified length of time. Owner can re-apply and pay annual fee for a third and final licence following a specified waiting period. (“Strike Two”)

9 months for “only three convictions” of tobacco sales offences committed in the same place during a 5-year period

Third specified SFOA conviction committed in same place during a 5-year period = automatic permanent revocation of licence under owner’s name and at that location. (“Three Strikes You’re Out”)

12 months if there are four or more convictions of tobacco sales committed in the same place in a 5-year period

Ontario Municipalities with Tobacco Retailer Licensing Page 3

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

• A requirement that if a store chooses to post tobacco price signs at POS (provincial law permits up to 3), or displays any unbranded tobacco accessories, then minors are not permitted access;

• A requirement that the licence owner, or any employee, not receive any incentives or payments of any kind from tobacco companies, and sign a document annually upon application or renewal of

licence affirming that the vendor has not received and will not accept any such incentives or payments;

• A ban on the sale of tobacco at a reduced price based on a larger quantity sold;3

• A ban on the sale of tobacco on municipal property.4

For more information, consult Best Practices in Tobacco Retailer Licensing.

It’s a good idea to license e-cigarette retailers too—but separately

A 2017 report commissioned by Health Canada estimated up to 1,000 e-cigarette retailers in Canada comprising a market worth over $500 million CAD.5 When Bill S-5 legalizes and regulates vaping products,

yet more businesses could enter the market. There is currently no provincial permit required for e-cigarette vendors. A municipal licence would provide important local data about the number and location of

e-cigarette vendors in a municipality, and would bring the same benefits as those created by a tobacco licence, as described above.

However, note that e-cigarettes are not tobacco products and should not be licensed as such. It is therefore recommended that a separate licence be established for e-cigarette retailers, and at a lower fee to reflect the reduced harm of e-cigarettes. Municipalities may even want to consider a two-tier licensing system for e-cigarette vendors: one for specialty vape shops that meet the province’s 85% threshold for revenue or inventory (and that qualify for display and promotion exemptions), and one for other lower-volume retailers (an upper threshold would need to be established).

Smoke-Free Ontario Act, 2017 and proposed regulations

From a retail perspective, there are some changes to note regarding the SFOA, 2017 and proposed regulations:

• The display and promotion of tobacco products, branded tobacco product accessories and vapour products is prohibited;

• Proposed regulations state that it will be up to local boards of health, not the Ministry, to determine which tobacco vendors and which vape shops meet a new 85% threshold to qualify for a display

exemption:

3 Providence, Rhode Island passed an ordinance with such a provision in 2012. http://providenceri.wpengine.com/wp-content/uploads/2017/05/Tobacco-Pricing-Ordinance-2012-7.43.pdf 4 This is currently a condition in Ottawa’s Harmonized Licensing By-law No. 2002-189. 5 Euromonitor Consulting. Study of the market size and growth trends of the nicotine-based vaping products market in Canada. A custom report compiled by Euromonitor International for Health Canada. 3 February 2017.

Ontario Municipalities with Tobacco Retailer Licensing Page 4

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

o Tobacconists:6 Tobacconists registered with the local board of health would be permitted to display and promote specialty tobacco products, if at minimum 85% of the store’s revenues or

inventory is dedicated to specialty tobacco products. “Specialty tobacco products” would include tobacco products and tobacco product accessories, but not cigarettes. Tobacconists would not

be permitted to sell vapour products, except for heat-not-burn devices that use tobacco. The remaining up to 15% of the store’s revenues or inventory would be dedicated to other items

associated or branded with the name of the tobacconist or a brand of tobacco.

o Specialty vape stores: Specialty vape stores registered with the local board of health would be permitted to display and promote vapour products, if at minimum 85% of the store’s revenues or

inventory is dedicated to vapour products, as defined in the Act. Speciality vape stores would not be permitted to sell tobacco products. The remaining up to 15% of the store’s revenues or

inventory would be dedicated to other items associated or branded with the name of the vape store or a brand of vapour product.

• In order for a tobacconist or specialty vape store to display and/or promote under the exemption, additional conditions need to be met:

o Entry into the place of business must be restricted to persons who are 19 years of age or older (this condition would not apply to duty free retailers);

o The products displayed inside the place of business and any promotional material cannot be visible from outside the place at any time of day;

o The place of business must be located in a building; and

o The place of business must not be a thoroughfare.

New Ontario Public Health Standards

The new Ontario public health standards for tobacco and electronic cigarettes require that inspection results be posted online to a board of health’s website in a location that is easily located within two weeks

of a conviction. Reports must be posted for five years.

• Publicizing inspection results/violations is a good idea, as some vendors may consider fines simply part of the cost of doing business and may be more incentivized to follow the law to avoid bad

publicity.

o However, there will likely not be much publicity generated from simply posting violations online. Boards of Health and Public Health Units can consider other options of increasing public

awareness in their communities, such as using social media, issuing press releases, etc.

o Provincial violations could also be included on GIS mapping, which could also be shared publicly. This information is foundational with respect to gathering evidence and building a case in favour

of municipal retailer licensing.

6 Note that many municipal licensing bylaws define any retailer that sells tobacco as a “tobacconist.” It is recommended that bylaws be amended to avoid confusion with exempted tobacconists.

Ontario Municipalities with Tobacco Retailer Licensing Page 5

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Other ideas

Build the cost of public and vendor education into the licence fee.

• For example, Lloydminster SK/AB includes a tobacco surcharge on top of its regular business licence fee. This money, in the form of the Lloydminster Tobacco Reduction Grant, provides funds to non-profit

organizations, schools, and volunteer groups for projects that raise awareness of the health risks associated with tobacco or that support the adoption of a tobacco free lifestyle.7

• Build the cost of maintaining and administering the Smoke-Free Ontario vendor training website into licence fees.

• To help determine what an appropriate licence fee might be, try using an online calculator8 while keeping in mind that a portion (sometimes 100%) of a tobacco enforcement officer’s salary is already paid

for with Ministry dollars. Revenue generated by a licence fee would have to cover additional inspections, public and vendor education and other activities not already accounted for.

To better understand how multi-tiered tobacco pricing is used as a promotional tool in Ontario, consider performing store audits or requiring tobacco enforcement officers (TEOs) to collect information on price

signs during proactive inspections.

• Store audits could be undertaken by youth groups such as Freeze the Industry. Checklists and other tools available online can be modified for Ontario.9

7 City of Lloydminster. Bylaw 16-2016. http://www.lloydminster.ca/DocumentCenter/View/11492. However, note that this bylaw includes e-cigarettes under the definition of tobacco retailing, which is not recommended. If a municipality wishes to regulate e-cigarette vendors, the creation of a separate e-cigarette licence is recommended. 8 ChangeLab Solutions. Tobacco Retailer Licensing Fee Calculator. http://www.changelabsolutions.org/tobacco-control/trl-fee-calculator#/page/0 9 Counter Tobacco. Standardized Tobacco Assessment for Retail Settings (STARS). http://countertobacco.org/wp-content/uploads/2017/02/2_STARS-Assessment-Tool.pdf

Ontario Municipalities with Tobacco Retailer Licensing Page 6

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Ontario municipalities with tobacco retailer licensing

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

East TCAN

1 Ottawa $893 $893 • Harmonized Licensing By-law No. 2002-189; Tobacco Vendors – Schedule 12

• https://ottawa.ca/en/business/business-resources/laws-businesses/harmonized-licensing-law-no-2002-189

• https://ottawa.ca/en/business/business-resources/laws-businesses/harmonized-licensing-law-no-2002-189/businesses#tobacco-vendors-schedule-no-12

• https://ottawa.ca/en/business/permits-business-licences-and-applications/business-licensing

• http://app06.ottawa.ca/online_services/forms/bylaws/business_license_application_en.pdf

• The premises of the applicant is confirmed by a By-law Officer to be a premises that is not prohibited from selling or offering for sale tobacco products pursuant to the Tobacco Control Act, 1994…

• No license will be issued to an applicant if the intended premises for the sale or distribution of tobacco products by retail is an outdoor property, a facility, a building or a property leased or owned by the City of Ottawa

• Every licensee shall post the license in a prominent location on the licensed premises so as to be clearly visible to the public

• “13(1) An applicant for an original license, or the renewal of a license, is, subject to the provisions of this by-law, entitled to be issued the license, except where:

o (b) the conduct of the applicant affords reasonable grounds for belief that the applicant has not carried on, or will not carry on, his or her business in accordance with the law and with integrity and honesty,

o (c) there are reasonable grounds for belief that the carrying on of the business by the applicant has resulted, or will result, in a breach of this by-law or any other law,

o (d) there are reasonable grounds for belief that the carrying on of the business may be adverse to the public interest…

• Amend Schedule 12 to cite Smoke-Free Ontario Act, 2017

• As per section 13, consider specifying what conduct of the applicant has not been in accordance with the law

o i.e. SFOA violations, APs

• Consider specifying parameters to operationalize refusal or renewal of a licence and include these in Schedule 12

• Consider making consequences automatic in bylaw to avoid the time and expense of appearing at licensing tribunal/committee each time to argue each case

• Consider creating a mandatory review of licence application by Bylaw and Regulatory Services/Ottawa Public Health to flag previous SFOA violations

• Consider making vendor training and certification a condition of licence

o Consider invoking an “additional fee” (as per Schedule A) to cover costs associated with vendor training website, and also to fund local tobacco-related public education and awareness activities

• Consider licensing e-cigarette vendors

Policy highlights

• High licence fees—Ottawa has essentially halved its number of tobacco retailers in recent years

• Tobacco vending prohibited on municipal property

Ontario Municipalities with Tobacco Retailer Licensing Page 7

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

• 15A (1) Despite any provision of this by-law, the Chief License Inspector may impose an additional fee, as set out in Schedule "A" to this by-law, on a licensee by way of a notice of additional fee at any time during the term of the license for costs incurred by the municipality attributable to the activities of the business.

o "Additional fee" means a fee imposed by the City on a business at any time during the term of the license for costs incurred by the City attributable to the activities of the business

• 21(1) The Chief License Inspector shall refuse to issue to the applicant the license applied for if the conditions for issuance in Section 13 have not been met.”

2 Kingston $275 $275 • By-Law Number 2006-213, A By-Law To License, Regulate And Govern Certain Businesses

• https://www.cityofkingston.ca/documents/10180/16904/Business+Bylaw

• https://www.cityofkingston.ca/documents/10180/26367/Business+License+Application+2013.doc/ffaecd0f-4006-4caa-8c92-d0a074adb9de

• Licence required for health and safety reasons: safe storage of flammable materials and consumer protection – that provincial requirements are met for storage, sale and advertising of tobacco products

• Review and approval required from Building Section, Zoning, Fire Department, KFL&A Health Unit & Kingston Police

• 4.11 A person is not eligible to hold a license if the property to be used for carrying on the trade, business or occupation does not conform with all applicable law, including but not limited to the property standards by-law that applies to the property, the Tobacco Control Act, the Fire Protection and Prevention Act, 1997, the fire code and the Health Protection and Promotion Act

• 4.12 Despite Section 4.11, a conditional license may be issued to the applicant if it is determined that there are deficiencies found by the relevant inspectors that can be remedied within a specified time frame in order to come into compliance, and if the deficiencies are not likely to be a danger to the public.

• 4.13 Any conditional licenses shall clearly state the duration of the temporary license, and if the applicant fails to come into compliance with any Act or Code within the time specified then the license shall become null and void.

• 4.14 A person is not eligible to hold a license if the operation of his or her business does not

• Amend Bylaw 2006-213 and Schedule T-2 to cite Smoke-Free Ontario Act, 2017

• Consider amending Schedule T-2 to expand reasons for licensing to include public education and vendor education and training

• Consider making vendor training and certification a condition of licence and increasing fee to cover associated costs

• Consider specifying parameters to operationalize sections 4.11, 4.12, 4.13 and 4.14

• Consider adding, as a condition of licence, approval by Bylaw Enforcement/KFL&A as it relates to SFOA and bylaw convictions

• Consider licensing e-cigarette vendors

Ontario Municipalities with Tobacco Retailer Licensing Page 8

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

conform with the applicable standards and requirements of: (1) every by-law of the City; (2) every provincial or federal Act and regulation made under such an Act; and (3) every instrument of a legislative nature made or issued under a provincial or federal Act or regulation, including standards and requirements with respect to the qualifications of the persons carrying on or engaged in the business and with respect to the vehicles and equipment used for the purposes of the business.

• 4.17 A licensee shall display the license permanently in a prominent place in his or her place of business.

3 Cornwall $40 $40 • Bylaw 201-2005, Being a Bylaw of the Corporation of the City of Cornwall to provide for licensing, regulating, governing and inspecting Tobacco

• http://www.cornwall.ca/en/cao/resources/By-law201-2005Tobacco.pdf

• http://www.cornwall.ca/en/planningandpermits/resources/bl-tobacco.pdf

• http://www.cornwall.ca/en/planningandpermits/resources/EOHU_BUSINESS_LICENSE_FORM.pdf

• Inspections required by the Zoning Department and the Eastern Ontario Health Unit

• 10 A license shall not be renewed by the Chief Building Official until it has been determined that the licensee has complied with:

o (a) the regulations under the jurisdiction of the Board of Health; o (b) this or any other By-laws of the Corporation, which shall be contrary to the law; o (c) any other federal or provincial statutes and regulations.

• 16 Every person obtaining a licence under this by-law: o (a) shall keep his/her licence posted up in a conspicuous place on the premises in respect to

which the licence is issued

• Consider increasing licence fee to better reflect the cost of tobacco to the municipality and society in general

• Consider implementing yearly increase to keep pace with inflation

• With respect to section 10, consider specifying and operationalizing refusal of a tobacco licence renewal application

• Consider making online vendor training a condition of licence and increasing the fee to cover associated costs

• Consider requiring approval of application from bylaw services and the Eastern Ontario Health Unit as it relates to past violations/convictions under SFOA and municipal bylaws

• Consider licensing e-cigarette vendors

Central East TCAN

4 Vaughan $323 $222 • By-law Number 315-2005, Licensing By-Law

• https://www.vaughan.ca/cityhall/by_laws/Bylaws/315-2005(Consolidated).pdf

• https://www.vaughan.ca/services/residential/licensing_and_permits/Forms/Municipal%20License%20application.pdf

• Applicant must obtain a Clearance Zoning Search for Municipal License through the Building Standards Department

• Consider amending Schedule A to include vendor education and training as a reason for licensing

• Consider making vendor education and training a condition of license

• Consider increasing licence fee to help pay for vendor training website

Ontario Municipalities with Tobacco Retailer Licensing Page 9

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

• 28.0(3) No person licensed under this section shall sell or allow the sale of tobacco, cigarette and cigar products to persons under the age of nineteen (19) years

• Consider explicitly making violation of section 28.0(3) a reason for licence suspension or revocation (see Conditional Requirements for Licensing above)

• Consider licensing e-cigarette vendors

• Consider amending 28.0(3) to include vaping products

Policy Highlight

• SFOA conviction (tobacco sales to minors) is a violation of licence

5 Richmond Hill $297 $297 • Chapter 826 of Municipal Code - General Provisions – Licence

• https://www.richmondhill.ca/en/shared-content/resources/documents/486-826.pdf

• Applicant must provide copy of business registration, receive zoning clearance as well as clearance from York Regional Police

• 826.3.5 Every person obtaining a licence under this Chapter, where the same applies to premises, shall keep his or her licence posted up in some conspicuous place on the premises in respect to which the licence is issued...

• 826.7.3 Notwithstanding Section 826.7.1, a licence may not be issued or renewed where the past conduct of the applicant or licensee affords reasonable grounds for the belief that the applicant or licensee will not carry on the activity for which he or she is to be licensed, in accordance with law and with integrity and honesty.

• 826.7.4 Notwithstanding Section 826.7.1, a licence may not be issued or renewed where the issuance of the licence or renewal of the licence would be contrary to the public interest.

• Consider specifying and operationalizing conditions in Article 7 regarding refusal to grant or renew a licence

o i.e. SFOA convictions, APs

• Consider making vendor education and training a condition of licence

• Consider increasing licence fee to help pay for vendor training website; consider increasing the fee each year to keep pace with inflation

• Consider adding other conditions of licence

• Consider licensing e-cigarette vendors

6 Markham $383 $383 • By-Law 2012-137, Licensing, Permit and Service Fees By-law

• https://www.markham.ca/wps/wcm/connect/markhampublic/36231883-257c-412b-b756-7cab31c76726/2012-137-Consolidated.pdf?MOD=AJPERES&CACHEID=36231883-257c-412b-b756-7cab31c76726

• https://www.markham.ca/wps/wcm/connect/markhampublic/c58a5d8d-7db9-4db8-ade3-766f54055134/SB--Tobacco-Sales.pdf?MOD=AJPERES&CACHEID=c58a5d8d-7db9-4db8-ade3-766f54055134

• Consider making online vendor training and certification a condition of licence

• Consider imposing an additional charge to cover the cost of vendor training website and certification

• Consider other licensing conditions with related consequences

• Consider licensing e-cigarette vendors

Ontario Municipalities with Tobacco Retailer Licensing Page 10

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

• Licence cannot be issued unless proposed business complies with zoning for that location.

• "Additional Charge" means a charge in addition to the licence fee, imposed by the municipality on a business at any time during the term of the licence for costs incurred by the municipality attributable to the activities of the business;

• 3.1 Notwithstanding any other provision of this By-law, the Manager, Bylaw Enforcement & Licensing may impose additional charges on a licence applicant, licensee, or a person obtaining a registration or permit by way of notice of additional charge at any time during the application process or the term of the licence, registration or permit for costs incurred by the municipality attributable to the activities of the applicant, licensee, registrant, permit holder.

7 Brampton $228 $228 • Business Licensing By-law 332-2013

• http://www.brampton.ca/EN/City-Hall/Bylaws/All%20Bylaws/Business%20Licensing.pdf

• Applicant must submit completed application to the Zoning Section of the Planning, Design and Development Department for review and approval

• “Additional Fee” means a fee, in addition to the Licence fee, imposed by the City on a business at any time during the term of the Licence for costs incurred by the City that are attributable to the activities of the business;

• 23. Despite section 21, the Licence Issuer may refuse to issue a Licence or renew a Licence, if the Licence Issuer has reasonable grounds to believe any one or more of the following:

• (j) The conduct of the Applicant or Licensee affords reasonable grounds for belief that the Applicant or Licensee has not carried on or will not carry on his or her trade, business or occupation in accordance with law and with integrity and honesty.

• (k) There are reasonable grounds for belief that the carrying on of the trade, business or occupation by the Applicant or Licensee has resulted or will result in a breach of this By-law or any other law.

• 30. An Applicant or Licensee whose Licence has been refused or revoked, shall not be entitled to make a new Application for the same or similar type of Licence for a period of at least 12 months from the date of the refusal or revocation.

• 35.(1) Any Licence issued under this By-law shall be posted on the Premises to which the Licence relates, in a conspicuous place that is clearly visible to the public.

• Schedule 26: 3. No Person shall sell or supply any tobacco product to any person who is less than

• Consider making vendor training a condition of licensing

• Consider imposing an additional fee to help cover the cost of vendor education and training (website)

• Consider making explicit and operationalizing Section 23 and Schedule 26 (Tobacco Retailers) as it relates to violation of the bylaw and subsequent suspension or revocation of a licence

o Schedule 26 #3: sales to minors – consider an automatic revocation of the licence with no opportunity to re-apply for 6 months (see Conditions of Licensing above for more details)

o Schedule 26 #5: Consider changing the suspension to revocation. Vendor would need to re-apply and pay annual fee after the specified period of time.

Policy Highlights

• SFOA conviction (sales to minors) is a violation of licence

Ontario Municipalities with Tobacco Retailer Licensing Page 11

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

19 years old

• 5. Where an AP order is issued by the Minister of Health for the sale of tobacco, the Licence issued by the City is automatically suspended for the period of time specified in the automatic prohibition order. There shall be no appeal under this By-law for a Licence suspended under this section.

8 Mississauga $304 $220 • Business Licensing Bylaw 1-06 and Schedule 26; http://www7.mississauga.ca/documents/bylaws/Business_Licensing.pdf

• http://www7.mississauga.ca/documents/TW/forms/bl_form2015.pdf

• http://www7.mississauga.ca/Documents/TW/businesslicensing/Bus_Req_M2013.pdf

• Applicant must submit articles of incorporation business registration as well as receive zoning/committee of adjustment approval

• “Additional Fee” means a fee, in addition to the licence fee, imposed by the municipality on a business at any time during the term of the licence for costs incurred by the municipality attributable to the activities of the business;

• 8.(1) Notwithstanding any other provisions of this By-law, Licence Manager may impose terms and conditions on any Licence at issuance, renewal or any time during the Licence period...

• 8.(2) Notwithstanding any other provisions of this By-law, Licence Manager may impose Additional Fees on a Licencee, by way of a Notice of Additional Fee at any time during the term of the Licence for costs incurred by the municipality attributable to the activities of the Licencee.

• 9. An Applicant whose application meets all the requirements of this By-law and its Schedules is entitled to a Licence or the renewal of a Licence except where:

• (4) The issuance of the Licence or renewal of the Licence would be contrary to the public interest;

• 19. (1) Every Owner shall prominently display the Licence at the licensed premises at all times and shall produce the Licence upon request by the Licence Manager or an Inspector.

• Schedule 26, 2. Where an Automatic Prohibition Order is issued by the Minister of Health for the sale of tobacco, the licence issued by the City is automatically revoked.

• Consider making vendor training a condition of licensing

• Consider imposing an additional fee to help cover the cost of vendor education and training (website)

• Consider clarifying conditions related to Schedule 26, #2: o Can a business re-apply for a licence following

automatic revocation? How much would it cost? o How long would a business need to wait before

re-applying for a licence? Would it reflect the length of the AP?

• Clarify conditions related to 9(4): Is there a limit to how many times automatic revocation can occur before a business would be permanently ineligible for application for a tobacco vendor licence?

• Consider licensing e-cigarette vendors Policy Highlight

• Where an Automatic Prohibition Order is issued by the Minister of Health for the sale of tobacco, the licence issued by the City is automatically revoked.

Ontario Municipalities with Tobacco Retailer Licensing Page 12

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

9 Wasaga Beach $160 $132.50 • Business Licensing Bylaw 2007-38 (Amended by 2009-45 & 2013-43), Schedule A13

• https://www.wasagabeach.com/Bylaws/Business%20Licensing_By-law.pdf

• https://www.wasagabeach.com/Print%20Forms/Business%20Application.pdf

• Applicant must obtain approvals from the Zoning Department, Fire Department, Building Department, Property Standards Office and Public Health

• (2009-45) B. Reasons for requiring licence and/or imposing conditions:

• 1. For the purpose of protecting the health and safety of the customers, to ensure the protection of the consumer, and to ensure that the business is not a nuisance to the surrounding properties and neighborhood.

• C. 2. No person shall sell, offer for sale or permit to be sold cigars, cigarettes or tobacco either directly or indirectly give or furnish to a child under nineteen (19) years of age in accordance with the Smoke-Free Ontario Act.

• (2013-43) 1. The Business Licensing Officer may, where a licence has been issued, revoke or suspend any licence where, in the opinion of the officer:

• a) upon the grounds that the holder is in breach of the business licensing by-law, including any conditions of a licence issued there under...

• Consider operationalizing Bylaw 2013-43, Section 1(a) to clarify the specific circumstances under which a tobacco vendor licence would be suspended or revoked

o The bylaw prohibits sales to minors: would a conviction under the SFOA trigger an automatic suspension of the licence? Or revocation?

o If suspension, for how long? o If revocation, could a vendor re-apply? How soon

after revocation? o If the bylaw was amended to make the

suspension or revocation automatic, the municipality could save considerable time and resources avoiding making individual cases before the licensing tribunal/committee

Policy Highlights

• SFOA conviction (sales to minors) is a violation of licence

Toronto TCAN

10 Toronto $632.87 $361.98

$308.99 $239.30

• Toronto Municipal Code, Chapter 545, Licensing;

• https://www.toronto.ca/legdocs/municode/1184_545.pdf

• https://www.toronto.ca/services-payments/permits-licenses-bylaws/smoke-shops-stores-that-sell-cigarscigarettes/

• These fees apply for a smoke shop licence; fees for a food store with a tobacco endorsement are $361.98 initially and $239.30 for renewal

• There is no fee to have the tobacco endorsement at the initial application for licensing; however, there is a $54 fee to add the tobacco endorsement at any other time

• Zoning approval is required for the majority of new business licence applications

• Section 201 Every person to whom this article relates shall at all times post and keep posted in a conspicuous place in the premises, in a manner satisfactory to the Municipal Licensing and

• Consider deleting sections 199 and 200 (vending machines)

• Consider amending section 201 to prohibit the sale of tobacco to minors under 19 a condition of licence

o Consider automatic licence suspension or revocation for breach of this licence requirement

• Consider requiring vendor training and certification a condition of licence

• Consider imposing an additional fee to cover the cost of regular vendor training and certification

• Consider licensing e-cigarette vendors

Ontario Municipalities with Tobacco Retailer Licensing Page 13

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

Standards Division, a sign or signs advising that federal legislation prohibits the sale of tobacco to any person under the age of 18 years and that Provincial legislation imposes restrictions on the sale of tobacco to persons under the age of 19 years.

Central West TCAN

10 Oakville $180 $242

$180 $242

• Bylaw 2015-075; A bylaw to provide for the licensing and regulation of various businesses in the Town of Oakville (Schedule 16, Food shop – ancillary use, and Schedule 35, Tobacconist)

• https://assets.oakville.ca/blis/BylawIndexLibrary/2015-075.pdf#search=2015%2D075&toolbar=1&navpanes=0

• https://www.oakville.ca/assets/general%20-%20town%20hall/TobSellAppl.pdf

• http://www.oakville.ca/assets/general%20-%20town%20hall/FoodShopAncAppl.pdf

• Oakville licenses 2 different types of tobacco retailers: tobacconists ($180) and “food shops – ancillary use” (convenience stores, $242)

• Both types of licences require zoning approval

• 3.(3) Every person licensed under this By-law shall at all times:

• (a) post the licence in a conspicuous place at the fixed place of business where a Licensee carries on business;

• 4.1) The Licensing Commissioner shall:

• (b) issue licences and renew licences, either conditionally or unconditionally, to any person who meets the requirements of this By-law except where:

• i. the conduct of an applicant affords reasonable grounds for belief that the applicant has not carried on, or will not carry on the business in accordance with the law or with integrity and honesty;

• ii. there are reasonable grounds for belief that the carrying on of the business may be adverse to the public interest;

• (c) with respect to subsection (1)(b)(ii), include in the Licensing Commissioner’s consideration, any record of offence that is less than three (3) years and relevant to the nature of the business, or any record of offence that directly affects the applicant’s or licensee’s ability to competently and responsibly carry on the business, or any particular record of offence for any time period that may be specified in any Schedule;

• Consider vendor training and certification a condition of licence

• Consider imposing an additional fee to cover cost of vendor training and certification

• Consider amending Schedules 16 and 35 to: o Make prohibition of sale of tobacco to minors

under 19 a condition of licence ▪ Consider automatic suspension or

revocation of licence for breach of this requirement

o Clarify and operationalize Section 4 ▪ Define conduct that is not in accordance

with the law (sales to minors, etc. under SFOA)

• Consider creating an e-cigarette licence with similar conditions and consequences

Ontario Municipalities with Tobacco Retailer Licensing Page 14

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

11 Hamilton $698 $558.80 $765.80

$305 • Bylaw No. 07-170, Being a bylaw to license and regulate various businesses; Schedule 27; Tobacco and Electronic Cigarette Retailers

• https://d3fpllf1m7bbt3.cloudfront.net/sites/default/files/media/browser/2017-07-06/bylaw-07-170_consolidation-december2017.pdf

• https://d3fpllf1m7bbt3.cloudfront.net/sites/default/files/media/browser/2017-04-19/establishment-licence-application-2017.pdf

• https://d3fpllf1m7bbt3.cloudfront.net/sites/default/files/media/browser/2016-02-01/business-license-reference-guide-may2017.pdf

• Applicants must provide a business registration/corporate profile dated within 1 year of application, and must also receive a zoning verification certificate or addendum as well as a health inspection

• 4. In addition to complying with the General Provisions of this By-law, an operator who applies for a licence shall provide proof satisfactory to the Director of Licensing that the premises are not subject to a prohibition imposed under section 16 of the Smoke-Free Ontario Act.

• 7. A licence holder;

• (a) shall keep their licence issued in respect of this Schedule posted in a conspicuous location on the premises, so as to be clearly visible to the public and in a manner satisfactory to the Municipal Officer, at all times during the currency of the licence;

• (b) who sells tobacco, cigars or cigarettes, shall comply with the Smoke-Free Ontario Act legislation and regulations pertaining to the promotion, display and sale of tobacco products, including displaying the required signs;

• (c) who sells electronic cigarettes, shall comply with the in-force provisions of the Electronic Cigarettes Act, 2015 respecting the promotion, display and sale of electronic cigarettes, including displaying the required signs;

• (d) shall require employees of the premises to read the required signs prior to commencing work involving the sale of tobacco, cigars, cigarettes or electronic cigarettes, and instruct employees to bring any removal or defacement of the required signs to the immediate attention of the licence holder;

• (e) shall replace with a new sign any required sign which has been removed or where the

• Amend Schedule 27 to reflect new SFOA, 2017

• $698 = fee for tobacco retailers (no zoning)

• $558.80 = fee for e-cigarette retailers (no zoning)

• $765.80 = fee for retailers who sell both (no zoning)

• Consider making vendor training and certification a condition of licence

• Consider imposing an additional fee to cover cost of vendor training website

• Consider specifying and operationalizing conditions and consequences of 7(b) and (c)

o Automatic licence suspension or revocation

Policy Highlights

• High licence fees: Hamilton has reduced # tobacco vendors in recent years

• E-cigarette vendor licensing

• SFOA convictions (promotion, display and sale) a violation of licence

Other highlights

• Hamilton is considering a payday loan amendment to its licensing bylaw that would limit the number of establishments (February 2018)

• Health Department’s unique working relationship with the City’s Licensing Department

Ontario Municipalities with Tobacco Retailer Licensing Page 15

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

prescribed message or part thereof has been defaced; and,

• (f) shall use as the required signs the provincially-legislated required signs available from the City or the Ontario Ministry of Health and Long-Term Care.

12 Burlington

$185 $325

$185 $325

• Bylaw Number 42-2008, A bylaw to provide for the licensing, regulating and governing various businesses in the City of Burlington; Part 39, Sale of Tobacco

• http://www.burlington.ca/uploads/91/635575154676735581.pdf

• http://www.burlington.ca/en/services-for-you/Business-Licence.asp

• http://www.burlington.ca/en/services-for-you/resources/Applications,%20Licences%20and%20Permits/Application_-_Convenience_Store_-_Sales_of_Foodstuff_2016.pdf

• http://www.burlington.ca/en/services-for-you/resources/Applications,%20Licences%20and%20Permits/REQUIREMENTS_-_FOODSTUFF_TOBACCO_ADULT_MAGAZINES_ADULT_VIDEO_LUNCH_COUNTER.pdf

• In addition to other conditions, zoning approval is required

• "Additional Fee" means a fee, in addition to the licence fee, imposed by the municipality on a business at any time during the term of the licence for costs incurred by the municipality attributable to the activities of the business.

• 9.1 An Applicant whose application meets all the requirements of this By-law and its Schedules is entitled to a Licence or the renewal of a Licence except where:

• (n) The past or present conduct of the Applicant, or of any partner, in the case of an Applicant which is a partnership, or of any director or officer, employees or agents of the corporation, if the Applicant is a corporation, affords reasonable grounds for the belief that the Applicant will not carry on the activity for which he or she is to be licenced or to continue to be licensed, in accordance with law and with integrity and honesty; or

• (r) The issuance of the Licence or renewal of the Licence would be contrary to the public interest.

• 39.1 Every application for a new Licence to own or operate a sale of Tobacco Business under this By-Law and in accordance with this Part shall be accompanied by an inspection letter dated within the last 90 days, issued and signed by the Medical Officer of Health or designate confirming that all necessary inspections have been completed and the Business is in compliance with the

• $185 fee applies to a convenience store that sells tobacco

• For convenience stores that sell tobacco and foodstuff, the fee is $325

• Consider making vendor training and certification a condition of licence

• Consider imposing an additional fee to cover the cost of the vendor training website

• Consider amending Part 39, Sale of Tobacco, to specify and operationalize the ban on selling tobacco accessories, as well as Part 9 regarding suspension and revocation

• Consider licensing e-cigarette vendors with similar conditions and consequences

Policy Highlights

• Licensed establishments prohibited from selling any matches, lighters, novelty lighters etc. to any persons under the age of 19 years

Ontario Municipalities with Tobacco Retailer Licensing Page 16

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

requirements of the Region of Halton Health Department.

• 39.2 It shall be a condition of every Licence that the Licensee, or employees of an establishment licensed to sell tobacco, is prohibited from selling any matches, lighters, novelty lighters etc. to any persons under the age of 19 years.

13 Waterloo $172 $149 • Bylaw No. 2014-085; Bylaw to provide for the licensing and regulation of various businesses in the City of Waterloo, Schedule 40 Tobacconist

• http://www.waterloo.ca/uploads/94/Doc_635465426947204469.pdf

• http://www.waterloo.ca/en/contentresources/resources/government/Business_Licence_Applications/Business_Licence_Application__Tobacconist.pdf

• Applications are subject to zoning approval

• 3.3. Every Licensee shall: a) post the Licence in a conspicuous place at the Licenced Premises;

• 4.2. The Director shall issue a Licence or renew a Licence to any Person who meets the requirements of this By-law, except where:

• a) the past conduct of the Applicant affords the Director reasonable grounds to believe that the Applicant has not or will not carry on their Business in accordance with the applicable law or with integrity and honesty;

• b) the Director reasonably believes that the carrying on of the Business may be adverse to the public interest;

• 4.3. The Director may deny the issuance or renewal of a Licence where the Applicant has been convicted within the past five (5) years of:

• a) a criminal offence for which a pardon has not been granted; or,

• b) a regulatory offence in any way related to the Business.

• 6.1. The Director may revoke or suspend a Licence at any time where:

• a) the Director is of the opinion that the Business carried on by the Licensee poses a threat to the health and safety of the public;

• b) the Licensee has violated any of the provisions of this By-law or any other applicable laws;

• Schedule 40: 2. Every Licensee shall:

• a) comply with all applicable laws with respect to the sale and display of tobacco products, including, but not limited to, the Smoke-Free Ontario Act, S.O. 1994, c. 10.

• Amend business bylaw to reflect new smoke-free legislation

• Consider amending schedule 40 to specify and operationalize sections 4 and 6 as they relate to SFOA convictions and licence suspension and revocation

• Consider increasing fee yearly to keep pace with inflation

• Consider vendor training and certification as a condition of licence

• Consider increasing fee to help cover costs of vendor training website

• Consider licensing e-cigarette vendors Policy Highlights

• SFOA conviction (sale and display of tobacco) a violation of licence

Ontario Municipalities with Tobacco Retailer Licensing Page 17

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

South West TCAN

14 London $277 $277 • Business Licensing Bylaw L.-131-16; Schedule 9 Electronic cigarette and tobacco retail business

• https://www.london.ca/business/Permit-Licences/Business-Licensing/Documents/L.-131.16%20APPROVED%20BUSINESS%20LICENSING%20BY-LAW.pdf

• https://www.london.ca/business/Permit-Licences/Business-Licensing/Documents/Business%20Licence%20Application.pdf

• 2.1 The following categories of licences are established:

• (a) Electronic Cigarette Retail Business; and

• (b) Tobacco Retail Business.

• 3.5 No person holding a licence issued under this By-law shall fail to:

• (a) with respect to premises, display the licence in a conspicuous place in or on the said premise;

• 8.3 The Licence Manager may refuse to issue, refuse to renew or revoke or suspend a licence or impose a term or condition on a licence on the following grounds:

• (a) the conduct of the Applicant or Licensee, or any partner, officer, director, employee or agent of the Applicant or Licensee, affords reasonable cause to believe that the Applicant or Licensee will not carry on or engage in the operation of the business in accordance with the law or with honesty or integrity;

• (f) an Applicant or Licensee is not in compliance with any federal, provincial law or City Bylaw, including this By-law

• 8.4 Notwithstanding any other provision of this By-law, the Licence Manager may impose terms and conditions on any licence at issuance, renewal or any time during the term of the licence, including special conditions, as are necessary in the opinion of the Licence Manager to give effect to this By-law.

• Consider amending Schedule 9 to specify and operationalize section 8 regarding SFOA convictions and licence suspension and revocation

• Consider making vendor training and certification a condition of licence

• Consider increasing the fee to help cover the cost of vendor training website and management

• Consider implementing other conditions of licence Policy Highlights (and lowlights)

• New business licensing bylaw comes into effect April 2, 2018 with new categories for tobacco and e-cigarette retailers

o London becomes the second municipality, after Hamilton, to licence e-cig retailers

• SFOA conviction a violation of licence (generally)

• The licence fee for a tobacco retailer has actually decreased significantly from $410 in 2017 to $277 in 2018; however, application and renewal fees are now the same

Ontario Municipalities with Tobacco Retailer Licensing Page 18

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

15 Chatham-Kent $23510 $145 • Consolidated Business Licensing By-law No. 178-2015; Schedule X, Tobacco Shops

• https://www.chatham-kent.ca/LocalGovernment/Documents/bylaws/Consolidated%20Business%20Licensing%20By-law%20178-2015%20Accessible.pdf

• https://www.chatham-kent.ca/community-services/licensing/business-licenses/TobaccoShop

• https://www.chatham-kent.ca/Licensing/Documents/Business/Municipal%20Business%20Licence%20Application%20Accessible.pdf

• Health and zoning department approvals required

• Additional Fees – The Issuer of Licences shall be authorized to charge a Licensee for any direct costs incurred by the Municipality in relation to the administration or enforcement of a Licence.

• 3.(2) The Issuer of Licences may refuse to issue, or revoke any or each of the Licences held by a Licensee, for cause and without limiting the generality of the foregoing for:

• (a) a breach of the law,

• (b) anything which may be in any way adverse to the public interest,

• (c) the belief that the Person will not carry on or engage in the Business in accordance with the law or with honesty and integrity

• 3.(4) The Issuer of Licences may impose conditions as a requirement of obtaining, continuing to hold, or renewing the Licence, including special conditions.

• Schedule X 1. In addition to the general provision of the Consolidated Business Licensing Bylaw to follow all applicable laws, any Licensee shall comply at all times with all provisions of the Smoke Free Ontario Act.

• Amend bylaw to reflect new SFOA

• Consider amending Schedule X to specify the conditions and operationalize section 3 regarding SFOA convictions and licence suspension and revocation

• Consider making vendor training and certification a condition of licence

• Consider imposing an additional fee to cover the costs associated with the vendor training website

• Consider licensing e-cigarette retailers Policy Highlight

• SFOA conviction a violation of licence (“Any Licensee shall comply at all times with all provisions of the Smoke Free Ontario Act.”)

10 A proposed fee increase goes before Council later in February 2018.

Ontario Municipalities with Tobacco Retailer Licensing Page 19

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

16 Windsor $232 $191 • Business Licensing Bylaw #395-2004; Schedule T1, Tobacconist

• https://www.citywindsor.ca/cityhall/By-laws-Online/Documents/395-2004-Business-Licensing-Bylaw.pdf

• https://www.citywindsor.ca/cityhall/licensingandregistration/Business-Licences/Documents/Tobacconist-Application-Form.pdf

• Zoning approval required

• “TOBACCONIST” for the purpose of health and safety to ensure that tobacco is not sold to persons eighteen or under.

• 2.1 (25) any person carrying on business of a TOBACCONIST including an automatic vending machine which sells tobacco.

• Schedule T1 1. No vending machines shall be used for the sale of tobacco products, except in premises licensed by the Alcohol and Gaming Commission of Ontario.

• 2. Every licensee shall at all times display in a conspicuous place in the premises, a sign or signs advising that tobacco sales to minors is prohibited.

• 3. Every licensee shall ensure that no person under his or her control sells, gives or furnishes tobacco, cigars or cigarettes contrary to this by-law or Provincial or Federal laws.

• 4. No person shall sub-divide tobacco packages for sale.

• 5. The licensee shall display the licence prominently in a place near where tobacco is sold or displayed so that the licence is visible by the public.

• 6. Every licensee shall be in compliance with the Tobacco Control Act and all regulations thereunder.

• Amend bylaw to correct minimum legal age of sale (19) and to cite correct provincial smoke-free legislation

• Consider specifying and operationalizing Schedule T1 regarding SFOA convictions and licence suspension and revocation

• Consider amending Schedule T1 1 to prohibit vending machines

• Consider making vendor training and certification a condition of licence

• Consider increasing fee to help cover costs associated with vendor training website and management

• Consider licensing e-cigarette retailers

• Consider avoid using term “tobacconist” except in relation to tobacco vendors that qualify for the display exemption

Policy Highlight

• Once correct legislation is cited, SFOA conviction will be a violation of the licence

North East TCAN

17 Greater Sudbury

$442.68 $150 • Bylaw 2004-350, A bylaw to regulate various businesses; Part IX, Retail Sales of Cigars, Cigarettes and Tobacco

• https://www.greatersudbury.ca/content/bylaws/By_law_20_558782.pdf

• https://www.greatersudbury.ca/linkservid/CAECDF93-0A23-B575-0443E89D417486C1/showMeta/0/

• 2(4) No person holding a licence issued pursuant to this bylaw shall fail to:

• (a) with respect to premises, display the licence in a conspicuous place in or on the said premises;

• Amend bylaw to correct federal legal age of sale for tobacco

• Consider making vendor training and certification a condition of licence

• Consider increasing the fee yearly to keep pace with inflation

• Consider increasing the fee to help cover the cost of the

Ontario Municipalities with Tobacco Retailer Licensing Page 20

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

• (24) The Issuer of Licences, or, where there is a referral to Council, the Council, may suspend, revoke or refuse to issue any licence that may be issued under the provisions of any part of this bylaw:

• (d) if the conduct of the applicant or licencee affords reasonable grounds for belief that the applicant or licencee will not carry on the business in accordance with the law or with honesty and integrity;

• Part IX, 9(2) Every person to whom this Part relates shall at all times post and keep posted in a conspicuous place in the premises, in a manner satisfactory to the Issuer of Licences, a sign or signs advising that Federal legislation prohibits the sale of tobacco to any person under the age of nineteen years.

• 9(3) Any person holding a convenience store licence issued under Part VIII of the Bylaw is not required to hold an additional licence under this Part IX.

vendor training website and its management

• Consider licensing e-cigarette retailers

18 North Bay $50 $50 • Bylaw No. 2012-225, Bylaw for Licensing, Regulating and Governing Business in the City of North Bay

• https://www.cityofnorthbay.ca/media/13904/2012_225.pdf

• https://www.cityofnorthbay.ca/media/1907/application-tobacco-sales-licence.pdf?v=636010001800000000

• Approval required from North Bay Parry Sound District Health Unit

• "Tobacco" shall mean a product composed in whole or in part of tobacco, including tobacco leaves, and any extract of tobacco leaves. It includes cigarette papers, tubes, filters and snuff but does not include any food, drug or device that contains nicotine to which the Food and Drugs Act, R.S.C., 1985, c. F-27 applies.

• 3.6 The applicant shall comply with all requirements as set out in this Bylaw as well as all applicable Federal, Provincial, Municipal Statutes, Regulations, Bylaws and Codes and any other provisions that may govern the Business, Place or Premises used in the carrying on of the Business and/or the Persons carrying on the Business or engaged in it and to which the application pertains.

• 13.1 Every person licensed pursuant to this Bylaw shall post in a prominent and conspicuous place the current licence on the premises or that part thereof to which the licence pertains. The licensee shall ensure that the licence is positioned in such a location that it may be readily seen and read by

• In light of Bill S-5 which will legalize and regulate e-cigarettes, consider amending the definition of tobacco

• Amend Schedule Q (as per application form): o To cite provincial legislation regarding the sale

and supply of tobacco products o To specify and operationalize SFOA convictions

and licence suspension and revocation

• Consider making vendor training and certification a condition of licence

• Consider imposing an additional fee to help cover the costs of the vendor training website and its management

• Consider separately licensing e-cigarette retailers Policy Highlights

• Upon amendment to cite correct legislation, SFOA conviction will be a violation of licence

Ontario Municipalities with Tobacco Retailer Licensing Page 21

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

Name of

Municipality

Initial Cost of Licence

Renewal Bylaw, Licence Information & Relevant Conditional Requirements Comments

persons entering the premises.

• 15.2 The Issuer of Licences may also suspend or revoke any licence issued to any applicant where the issuer of licences believes it is in the public interest to do so.

• Schedule Q 1. The operation of every Business which sells tobacco and/or tobacco products shall conform with the provisions of the Tobacco Act, S.C. 1997, c.13 and the Tobacco Tax Act, R.S.O. 1990, c. T.10, and any amendments thereto, regarding the sale and supply of tobacco and/or tobacco products.

19 Hearst Under $3011

Under $30

• https://www.hearst.ca/en/town-hall/by-laws/busines-licensing/

• http://www.hearst.ca/wp-content/uploads/2015/10/business-permit-e.pdf

North West TCAN

Conclusion

• There are many benefits of licensing tobacco and e-cigarette vendors, including added incentive to comply with the Smoke-Free Ontario Act, and more local control over tobacco and e-cigarette sales;

• It is recommended that municipalities license tobacco and e-cigarette vendors separately, and consider imposing a lower fee for e-cigarette licences;

• There are very few municipalities in Ontario that require a tobacco vendor licence, and while some licences have some promising elements (i.e. high fees, meaningful conditions), none can be

considered a comprehensive best practice example.12

11 The business licence for Hearst is currently being renewed and the clerk could not provide a specific dollar amount. 12 For more information on tobacco retail reform as a public health measure, consult “Reforming the Retail Landscape for Tobacco: Why we should do it & how it can be done.” http://nsra-adnf.ca/wp-content/uploads/2016/07/ReformingRetailLandscape_Final.pdf.

Ontario Municipalities with Tobacco Retailer Licensing Page 22

Non-Smokers’ Rights Association/ Smoking & Health Action Foundation

1 February 2018

• Vendor licence fees vary considerably, from $893 in Ottawa to under $30 in Hearst. A licence fee should be high enough to ensure that it is regarded as more than a cost of doing business.

o The fee in Ottawa has increased from $150 in 2003; over this same 15-year period, the number of tobacco vendors has decreased 46% from approximately 800 to approximately 431.13 Not only

has the number of vendors decreased, but the population of Ottawa has also increased, resulting in both a decrease in vendor density as well as the number of tobacco vendors per capita.

However, other than the high fee and a ban on tobacco sales on municipal property, Ottawa does not impose additional conditions on applicants such as mandatory training.

o Also of note is the City of Hamilton, where the total fee for 2018 is $698. Hamilton’s Public Health Department works in close collaboration with the City’s Licensing Department. Hamilton was

the first municipality in Ontario to license e-cigarette vendors—note the fee ($558.80) is slightly lower than a tobacco vendor licence.

• The general language found in business licensing bylaws is very similar across municipalities and essentially states that a licence can be suspended or revoked based on the conduct of an applicant—if

there are reasonable grounds for belief that the applicant has not carried on, or will not carry on the business in accordance with the law or with integrity and honesty, or if there are reasonable

grounds for belief that the carrying on of the business may be adverse to the public interest.

o Municipalities can consider amending tobacco and/or e-cigarette schedules to specify and operationalize the circumstances under which a licence would be suspended or revoked.

• Despite being a uniquely lethal consumer product that kills half of long-term users, tobacco remains readily available 24/7 in convenience stores and gas stations across Ontario. Much is needed to be

done to reform the tobacco retail landscape, including the implementation of more municipal tobacco vendor licences, and with meaningful conditions that fulfill public health regulatory goals.

• In addition, provincial legislation could be passed to ban any type of tobacco industry payment or benefit to retailers. Canada is considered a “dark market” because of the tight restrictions on tobacco

advertising and promotion. Tobacco manufacturers have therefore increasingly relied on retailers to communicate with customers and help boost sales, recognizing them as an essential component of

their marketing strategies. With the advent pf plain and standardized tobacco packaging, banning tobacco industry payments and benefits to retailers will become even more important, as

manufacturers will no doubt further increase their reliance on retailers to communicate with customers about their products. Quebec was the first province to adopt such legislation, which went into

effect in November 2016.

13 City of Ottawa. Personal communication with Dana Periard, 1 February 2018.