The AGCO employs a risk-based approach when issuing and regulating Cannabis Retail Operator Licences, Cannabis Retail Manager Licences, and Cannabis Retail Store Authorizations. Risk-based licensing allows the AGCO to encourage good business practices throughout the industry and to focus its own regulatory resources where they will make the most difference.
Although there is always some risk attached to the sale of recreational cannabis, the AGCO recognizes that due to variables (such as location, past history and experience), some establishments and individuals pose a greater risk to the public interest and/or to non-compliance with the law. Risk-based licensing is one of several initiatives the AGCO has implemented in the other sectors it regulates. This approach to licensing allows AGCO to base its decisions on risk assessments and its approach to regulation on encouraging compliance rather than relying solely on enforcement following any violations.
Risk-based licensing assists Cannabis Retail Operator licensees, Cannabis Retail Manager licensees and Cannabis Retail Store Authorization holders in operating their establishments in a safe, responsible, and compliant way.
The authority to carry out a risk-based licensing regime is given to the AGCO under Section 6 (5) of the Cannabis Licence Act, 2018.
There are four key principles behind risk-based licensing:
The application of risk-based licensing can occur at any point in the lifecycle of a Cannabis Retail Operator licence, Cannabis Retail Manager licence, and Cannabis Retail Store Authorizations.
New applicants proceed through a three step process:
Applicants renewing their licence or authorization, or having a condition on their licence, would only proceed through steps 2 and 3.
During the lifetime of a licence or authorization, the Registrar can reassess the risk posed by the licensee. This reassessment can occur either because the licensee requests a reassessment, or because the Registrar becomes aware that there has been a change in circumstances and there should be a reassessment. At each of these times the Registrar may add, remove or amend one or more conditions.