November 22, 2018
Government Introduces Amendment that would Formalize Social Responsibility Fee for Cannabis Retailers
– – –Social Responsibility Fee Supports Government's Commitment to Health and Safety: Cullen
Proposed amendments to The Liquor, Gaming and Cannabis Control Act would establish the legislative foundation for the Manitoba government to create a social responsibility fee for cannabis to strengthen health and safety initiatives, Justice Minister Cliff Cullen announced today.
“Our government recognizes the legalization of non-medical cannabis will create substantial social costs,” said Cullen. “The social responsibility fee is a key component of Manitoba’s non-medical cannabis regulatory framework. The fee would ensure retailers share in the social costs of public education, safety, health and addictions.”
The amendment would confirm that beginning in January 2019, all retail cannabis stores in Manitoba would be subject to the payment of a social responsibility fee. The fee would initially be based on six per cent of the retailer’s gross revenue from the sale of non-medical cannabis.
Manitoba developed and implemented the framework for the legalization of non-medical cannabis guided by four principles of social responsibility, education and treatment, protecting youth and preventing illegal sales by organized crime. Establishing the legislative foundation for the social responsibility fee continues that commitment to protect Manitobans, noted Cullen.
The social responsibility fee is already recognized in the existing agreements between the Manitoba government and individual cannabis retailers. This amendment would ensure all retailers selling non-medical cannabis going forward will be subject to the same obligation, Cullen added.
The social responsibility fee would be applied as of January of 2019, and the first payment by retailers would be due in June 2020.
Manitoba will be monitoring the non-medical cannabis market, and can adjust the social responsibility fee as the market evolves and social costs are identified, the minister said.
More information on the cannabis social responsibility fee is available at www.gov.mb.ca/jec/busdev/cannabis/fees.html.
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