Cannabis Act (S.C. 2018, c. 16)

Proceedings

Marginal note:Issuance of notice of violation

• 112 (1) If an individual who is designated under section 110 believes on reasonable grounds that a person has committed a violation, the designated individual may issue, and must provide the person with, a notice of violation that

  • (a) sets out the person’s name;

  • (b) identifies the alleged violation;

  • (c) sets out the penalty for the violation that the person is liable to pay; and

  • (d) sets out the particulars concerning the time and manner of payment.

• Marginal note:Summary of rights

  (2) A notice of violation must summarize, in plain language, the rights and obligations of the named person under this section and sections 113 to 125, including the right to have the acts or omissions that constitute the alleged violation or the amount of the penalty reviewed and the procedure for requesting that review.

• Marginal note:Penalty

  (3) The penalty for a violation is to be determined by taking into account

  • (a) the person’s history of compliance or non-compliance with the provisions of this Act or of the regulations;

  • (b) the nature and scope of the violation;

  • (c) whether the person made reasonable efforts to mitigate or reverse the effects of the violation;

  • (d) whether the person derived any competitive or economic benefit from the violation; and

  • (e) any other prescribed criteria.

Penalties

Marginal note:Payment

• 113 (1) If the person named in the notice of violation pays, in the time and manner specified in the notice, the amount of the penalty set out in the notice,

  • (a) they are deemed to have committed the violation in respect of which the amount is paid;

  • (b) the Minister must accept that amount as complete satisfaction of the penalty in respect of the violation; and

  • (c) the proceedings commenced in respect of the violation are ended.

• Marginal note:Alternatives

  (2) Instead of paying the amount of the penalty set out in the notice, the person named in the notice may, in the time and manner specified in the notice,

  • (a) if the amount of the penalty set out in the notice is $5,000 or more, request to enter into a compliance agreement with the Minister that ensures the person’s compliance with the provision or the order to which the violation relates; or

  • (b) request a review by the Minister of the acts or omissions that constitute the alleged violation or of the amount of the penalty.

• Marginal note:Deeming

  (3) If the person named in the notice does not pay the penalty set out in the notice in the time and manner specified in the notice and does not exercise any right referred to in subsection (2) in the specified time and manner, they are deemed to have committed the violation identified in the notice.

Compliance Agreements

Marginal note:Entering into compliance agreements

• 114 (1) After considering a request made under paragraph 113(2)(a), the Minister may enter into a compliance agreement, as described in that paragraph, with the person making the request on any terms and conditions that are satisfactory to the Minister. The terms and conditions may

  • (a) include a provision for the deposit of reasonable security, in a form and amount satisfactory to the Minister, as a guarantee that the person will comply with the compliance agreement; and

  • (b) provide for the reduction, in whole or in part, of the penalty for the violation.

• Marginal note:Deeming

  (2) A person that enters into a compliance agreement with the Minister is, on doing so, deemed to have committed the violation in respect of which the compliance agreement was entered into.

• Marginal note:Notice of compliance

  (3) If the Minister is satisfied that a person that has entered into a compliance agreement has complied with it, the Minister must cause a notice to that effect to be provided to the person, at which time

  • (a) the proceedings commenced in respect of the violation are ended; and

  • (b) any security given by the person under the compliance agreement must be returned to the person.

• Marginal note:Notice of default

  (4) If the Minister is of the opinion that a person that has entered into a compliance agreement has not complied with it, the Minister must cause a notice of default to be provided to the person to the effect that

  • (a) instead of being liable to pay the amount of the penalty set out in the notice of violation in respect of which the compliance agreement was entered into, the person is liable to pay, in the time and manner specified in the notice of violation, twice the amount of that penalty, and, for greater certainty, subsections 111(1) and 139(4) do not apply in respect of that amount; or

  • (b) the security, if any, given by the person under the compliance agreement is forfeited to Her Majesty in right of Canada.

• Marginal note:Effect of notice of default

  (5) Once provided with the notice of default, the person may not deduct from the amount set out in the notice of default any amount they spent under the compliance agreement and

  • (a) the person is liable to pay the amount set out in the notice of default in the time and manner specified in the notice of violation; or

  • (b) if the notice provides for the forfeiture of the security given under the compliance agreement, that security is forfeited to Her Majesty in right of Canada and the proceedings commenced in respect of the violation are ended.

• Marginal note:Effect of payment

  (6) If a person pays the amount set out in the notice of default in the time and manner specified in the notice of violation, the Minister must accept the amount as complete satisfaction of the amount owing in respect of the violation and the proceedings commenced in respect of the violation are ended.

Marginal note:Refusal to enter into compliance agreement

• 115 (1) If the Minister refuses to enter into a compliance agreement requested under paragraph 113(2)(a), the person that made the request is liable to pay, in the time and manner specified in the notice of violation, the amount of the penalty set out in the notice of violation.

• Marginal note:Effect of payment

  (2) If a person pays the amount referred to in subsection (1),

  • (a) they are deemed to have committed the violation in respect of which the amount is paid;

  • (b) the Minister must accept the amount as complete satisfaction of the penalty in respect of the violation; and

  • (c) the proceedings commenced in respect of the violation are ended.

• Marginal note:Deeming

  (3) If a person does not pay the amount referred to in subsection (1) in the specified time and manner, they are deemed to have committed the violation identified in the notice of violation.

Review by Minister

Marginal note:Review — with respect to facts

• 116 (1) On completion of a review requested under paragraph 113(2)(b) with respect to the acts or omissions that constitute the alleged violation, the Minister must determine whether the person that requested the review committed the violation. If the Minister determines that the person committed the violation but that the amount of the penalty was not established in accordance with the provisions of this Act and of the regulations, the Minister must correct the amount.

• Marginal note:Violation not committed — effect

  (2) If the Minister determines under subsection (1) that the person that requested the review did not commit the violation, the proceedings commenced in respect of it are ended.

• Marginal note:Review — with respect to penalty

  (3) On completion of a review requested under paragraph 113(2)(b) with respect to the amount of the penalty, the Minister must determine whether the amount of the penalty was established in accordance with the provisions of this Act and of the regulations and, if not, the Minister must correct the amount.

• Marginal note:Notice of decision

  (4) The Minister must cause a notice of any decision made under subsection (1) or (3) to be provided to the person that requested the review.

• Marginal note:Payment

  (5) The person that requested the review is liable to pay, in the time and manner specified in the notice of violation, the amount of the penalty that is confirmed or corrected in the Minister’s decision made under subsection (1) or (3).

• Marginal note:Effect of payment

  (6) If a person pays the amount referred to in subsection (5), the Minister must accept the amount as complete satisfaction of the penalty in respect of the violation and the proceedings commenced in respect of the violation are ended.

• Marginal note:Written evidence and submissions

  (7) The Minister is to consider only written evidence and written submissions in determining whether a person committed a violation or whether the amount of a penalty was established in accordance with the provisions of this Act and of the regulations.