CORPORATION OF THE VILLAGE OF CUMBERLAND BYLAW NO. 1040

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CORPORATION OF THE VILLAGE OF CUMBERLAND BYLAW NO. 1040 The purpose of this Bylaw is to provide for the regulation of marijuana-related businesses including to minimize any adverse effects that operation of such businesses may have on the safety, health and well-being of the community in anticipation of changes to the federal laws regarding distribution of marijuana. PART 1 TITLE 1. This Bylaw may be cited as the "Marijuana-Related Business License Regulation Bylaw No. 1040, 2016. PART 2 1. In this Bylaw: DEFINITIONS CAO Marijuana Medical Marijuana Dispensary Medical Marijuana Facility Shareholder means the Chief Administrative Officer of the Village and includes anyone authorized by Council to act on his behalf. means cannabis as defined in the Controlled Drugs and Substances Act and includes any products containing cannabis. means the use of land, buildings or other structures for dispensing, selling or distributing marijuana, or related controlled substances and derivatives, other than a medical marijuana facility, and in particular carrying on of activity where a) the use of marijuana for medical or any other purposes is advocated or promoted; b) marijuana or paraphernalia used in the consumption of marijuana are sold or otherwise provided to persons for any purpose; and c) marijuana is stored for a purpose of sale or distribution (note that this is a Marihuana Dispensary in the Village of Cumberland Zoning Bylaw No. 1027, 2016). means the use of buildings and other structures for the purpose of growing, processing, packaging, testing, destroying, storing or shipping medical marijuana as authorized by a license issued under the Federal Marihuana for Medical Purposes Regulations or the Access to Cannabis for Medical Purposes Regulations. (note that this is a Medical Marihuana Facility in the Village of Cumberland Zoning Bylaw No. 1027, 2016). means a shareholder with a 10% or greater interest.

Business License Regulation Bylaw No. 1040, 2016 Page 2 PART 3 APPLICATION OF THIS BYLAW 1. The provisions of this Bylaw do not apply to production and distribution of marijuana licensed by Health Canada under the Marihuana for Medical Purposes Regulations or the Marihuana Medical Access Regulations of the Controlled Drugs and Substances Act (Canada). 2. The Corporation of the Village of Cumberland Business License Bylaw No. 896, 2009 (the Business License Bylaw ) also applies to Medical Marijuana Dispensaries regulated by this Bylaw, except that the fees are those required under this bylaw. PART 4 BUSINESS LICENSES 1. Business Licenses required for Marijuana-Related Businesses a) A person must not operate a Medical Marijuana Dispensary unless the person holds a valid license issued under the provisions of this Bylaw and the Business License Bylaw. b) A person applying for the issuance or renewal of a license to carry on a Medical Marijuana Dispensary must: i) complete and submit an application for a license in a form satisfactory to the Village; iv) pay to the Village the applicable license fees prescribed under Schedule A attached to this Bylaw; provide a security plan for the premises that, in the opinion of the CAO, describes adequate security measures to mitigate risk of theft or robbery at the premises; provide proof of a security alarm contract that includes monitoring at all times during the period for which the license is being sought; v) provide proof of ownership or legal possession of the premises; vi) v v provide contact information for a responsible person or persons available to be contacted at any time; provide a list of the names of all staff, together with a copy of photo identification for each staff member; and provide a current police information check for: 1) the applicant 2) if the applicant is a corporation, each shareholder, officer and director, and 3) each on-site manager.

Business License Regulation Bylaw No. 1040, 2016 Page 3 2. Authority to Refuse or Suspend a License In addition to any power of refusal, suspension or revocation of licenses contained in the Business License Bylaw, the CAO may suspend, revoke or refuse to issue or renew a license for a Medical Marijuana Dispensary if the applicant or licensee, or a shareholder, officer, director or on-site manager of the applicant or licensee: a) was convicted anywhere in Canada of an offence involving dishonesty; b) was convicted, found guilty of, or liable for any contravention or offence relating to the conduct of a business similar to that to which the license relates; c) was convicted, found guilty of, or liable for any contravention or offence, in Cumberland, Courtenay, Comox, or the Comox Valley Regional District against this bylaw or against any bylaw authorizing the issuance of a business license or regulating the conduct of a business; or d) was guilty of misrepresentation, nondisclosure or concealment of any material fact relating to the subject matter of the license or required to be stated in, the application. For greater certainty, provisions regarding notice, reconsideration and all other procedures under the Business License Bylaw are applicable to Medical Marijuana Dispensaries regulated by this Bylaw. PART 5 - OPERATING REQUIREMENTS 1. Restrictions for all Medical Marijuana Dispensaries A person carrying on a Medical Marijuana Dispensary must not: a) allow a person under the age of 19 to enter or remain on the premises; b) advertise or promote the use of marijuana to a person under the age of 19, including through product displays, names, logos or other signage; c) allow a person to smoke, vape, consume or otherwise ingest marijuana or products containing marijuana on the premises; d) sell cannabis or other substances under the Controlled Drugs and Substances Act in edible form, including beverage form; however, this provision does not prevent the sale of tinctures, capsules or edible oils, in sealed containers. e) be open for business between the hours of 8pm and 7am the next day; f) mail or deliver any products from the business premises; and g) use the premises to carry on business other than the Medical Marijuana Dispensary and accessory uses.

Business License Regulation Bylaw No. 1040, 2016 Page 4 2. Requirements for all Medical Marijuana Dispensaries A person carrying on a Medical Marijuana Dispensary must: a) prominently display a sign on the premises indicating that no persons under 19 years of age are permitted on the premises; b) post health and safety warning signs on the premises; c) ensure that at least two employees are present on the premises at all times when the business is open to the public, including one manager; d) ensure that windows on any street frontage of the premises are not blocked by translucent or opaque material, artwork, posters, shelving, display cases or similar elements; e) conduct business within a completely enclosed building, with the doors remaining closed when not in use for immediate ingress and egress; f) install and maintain an air filtration system that effectively minimizes odour impacts on neighbouring properties; h) implement the following security measures: i) install video surveillance cameras that monitor all entrances and exits and the interior of the business premises at all times with a high definition resolution; iv) retain video camera data for at least 21 days after it is gathered; install a security and fire alarm system that is, at all times, monitored by a licensed third party; and, not allow marijuana, products containing marijuana or other valuables to remain on the premises when the business is not open to the public, unless the marijuana, products and other valuables are securely locked in a safe on the premises. i) promptly bring to the attention of the CAO: i) the name of any new on-site manager, officer, director or shareholder of the licensee; any criminal charge laid or pending against the licensee or an on-site manager, officer, director or shareholder of the licensee; and a current police information check, birth certificate and most recently issued driver s license and passport for any new on-site manager, officer, director or shareholder of the licensee.

Business License Regulation Bylaw No. 1040, 2016 Page 5 PART 6 GENERAL PROVISIONS 1. Offences a) A person commits an offence and is subject to the penalties imposed by this Bylaw, the Ticket Bylaw, and the Offence Act if that person i) contravenes a provision of this Bylaw, consents to, allows, or permits an act or thing to be done contrary to this Bylaw, or neglects or refrains from doing anything required by a provision of this Bylaw. b) Each day that a contravention of a provision of this Bylaw continues is a separate offence. 2. Schedule The attached Schedule A forms part of this Bylaw. 3. Severability Each part of this Bylaw shall be severable. If any part of this Bylaw is held to be illegal or invalid by a Court of competent jurisdiction, that part may be severed and the illegality or invalidity may be severed from the Bylaw without affecting the validity of the Bylaw or any portions of the Bylaw or remaining parts. PART 7 ADMINISTRATION & ENFORCEMENT 1. The Chief Administrative Officer, Corporate Officer, Finance Officer, Manager of Protective Services, Manager of Operations, and Building Inspector may administer and enforce this bylaw. 2. Any person who contravenes any provision of this bylaw is guilty of an offence and is liable on summary conviction to a fine of not less than $2,500 and not more than $10,000 in accordance with Section 263 of the Community Charter. READ A FIRST TIME THIS 11th DAY OF October 2016. READ A SECOND TIME THIS 11th DAY OF October 2016. READ A THIRD TIME THIS 11th DAY OF October 2016. RESCIND THIRD READING THIS 24th DAY OF October 2016. AMEND AT SECOND READING THIS 24th DAY OF October 2016. READ A THIRD TIME AS AMENDED THIS 24th DAY OF October 2016. ADOPTED THIS 14th DAY OF November 2016. Mayor Corporate Officer

Business License Regulation Bylaw No. 1040, 2016 Page 6 Application Fee Paid at the time of application License Fee Paid when License is approved, prior to issuing $1,250 $3,250 Annual License Fee $3,250 Special 1 Fire & Safety Inspection $250 Special 1 Building Inspection $180 Notes 1 The first inspection is included in the Application Fee, however if subsequent inspection(s) or one requested or required at another time, this fee will be paid.