Overview

The Cannabis Licence Act, 2018 (CLA) and Ontario Regulation 468/18, provide the Registrar with authority to establish standards that govern the following areas:

  • Store premises, equipment and facilities, including surveillance and security.
  • The prevention of unlawful activities.
  • Advertising and promotional activities.
  • Training related to the responsible use and sale of cannabis.
  • The protection of assets.
  • Record-keeping and measures to maintain confidentiality and security of records.
  • Compliance with the federal cannabis tracking system.

These Standards are outlined in the Registrar’s Standards for Cannabis Retail Stores. Licensees are required to comply with the Registrar’s Standards as well as all applicable laws and regulations, including the Cannabis Control Act, 2017 (CCA), the Cannabis Licence Act, 2018 (CLA), and Ontario Regulation 468/18.

As part of AGCO’s overall monitoring process to ensure compliance with the Registrar’s Standards, laws and regulations, all licensees are required to comply with the minimum notification obligations to the Registrar as outlined in AGCO`s established Notification Matrix. The AGCO Notification Matrix requires licensees to submit the following periodic and incident-based reports:

Regulatory Reports Timeline Accountability and Submission
Report on Discrepancies in Inventory Balances (quantities per record and weekly physical count results) As soon as possible (within 24 hours of becoming aware of the discrepancies)
  • Licensed Operator; OR
  • Licensed Retail Manager
Report on Destroyed Cannabis Products On or before the 5th day of the following month
  • Licensed Operator; OR
  • Licensed Retail Manager
Report on All Inter-Store Transfers of Cannabis Products (Incoming and Outgoing) On or before the 5th day of the following month
  • Licensed Operator; OR
  • Licensed Retail Manager

Report on Discrepancies in Inventory Balances

As required under Section 8.2 of the Registrar’s Standards for Cannabis Retail Stores, licensees must:

  • complete full physical counts of all cannabis products on a weekly basis at a minimum or upon request of AGCO
  • maintain a log of the physical inventory count results and report to AGCO as soon as possible (within 24 hours of becoming aware of a discrepancy) all discrepancies identified between the weekly physical inventory count results and the related inventory quantity per record as of the date of the count.

If discrepancies are noted/identified based on the results of the weekly physical count, licensees must also prepare and submit a Report on Discrepancies in Inventory Balances to AGCO. See section A of the “Periodic Regulatory Reporting” of this document for more information.

Report on Destroyed Cannabis Products

As required under Section 3.1 of the Registrar’s Standards, licensees must destroy or render unusable cannabis products that are ineligible to be sold and ineligible for return to the Ontario Cannabis Retail Corporation (OCRC).

As required under Section 3.3 of the Registrar’s Standards, licensees must destroy on a monthly basis (at a minimum) cannabis products that are ineligible for sale.

As required under Section 8.1.2.d of the Registrar’s Standards, licensees must maintain and retain records for a minimum of three (3) years of all cannabis products destroyed.

Licensees must prepare a Report on Destroyed Cannabis Products for all destructions of cannabis products performed during a particular month and must submit their report to AGCO on or before the fifth day of the following month. Submission of this regulatory report is not required if no destruction of cannabis products occurred during the reporting month. See section B of the “Periodic Regulatory Reporting” of this document for more information.

Report on All Inter-Store Transfers of Cannabis Products (Incoming and Outgoing)

As required under Section 4.2 of the Registrar’s Standards, licensees who hold more than one retail store authorization may transfer cannabis products between their retail stores. The Standards further state that records of all movements of cannabis products between stores must be maintained.

Licensees must prepare a Report on All Inter-Store Transfers of Cannabis Products for all inter-store transfers (incoming and outgoing) made during the month and submit the report to AGCO on or before the fifth day of the following month. Submission of this regulatory report is not required if no inter-store transfers (incoming or outgoing) of cannabis products are made during the reporting month. See sections C and D of the “Periodic Regulatory Reporting” Guidelines” of this document, for more information.

This document (known as the “Reporting Guide”) provides licensees with detailed guidelines and specifications to help them comply with their notification/reporting obligations to the Registrar in accordance with the Notification Matrix.

Licensees must read and understand the contents of this Reporting Guide prior to operating a cannabis retail store. A copy of this Guide should be maintained in the store at all times and must be readily accessible by the responsible store staff for reference purposes as needed.

Periodic Regulatory Reporting

A. Standard Reporting Template #1 - Report on Discrepancies in Inventory Balances (Per Book versus Per Weekly Physical Count Results)

Description Field Type Detailed Guidelines
Product Category Text

Identify the type of cannabis product category being reported as follows:

  • Dried Cannabis
  • Pre-rolled Cannabis
  • Cannabis Oil
  • Capsules
  • Cannabis Seeds.
Product Stock Keeping Unit (SKU)

Alpha

Numeric

This is the unique product identifier assigned to each cannabis product sold by Ontario Cannabis Retail Corporation (OCRC) to licensees. The perpetual inventory systems of the licensees must reference and use the specific SKU provided by the OCRC and should not use any other cannabis product identifier.
Universal Product Code (UPC) Numeric
  • This is the “universal product code” applicable to a particular size/format of a particular SKU.
  • A UPC consists of numeric digits that forms the barcode used for scanning an item at the point-of-sale.
  • UPC codes for each item will be provided to licensees prior to the launch of Authorized Stores.
Unit of Measure (UOM) Text This is the standard of unit or systems of unit by means of which the quantity of inventory for each SKU is expressed or accounted for. The same unit of measure (UOM) should be used in which each SKU were purchased from OCRC.
Balance Per Book Numeric This is the total volume or quantity of each SKU in stock as recorded in the books (perpetual inventory records) as at the date of the physical count.
Balance Per Weekly Physical Count Numeric This is the total volume or quantity of each SKU based on the results of the physical count.
Difference (variance) Numeric This is the difference in volume or quantity (overages or shortages) between items 3 and 4 for each SKU.
Comments/Disposition Text Use this field to describe the cause or reason for the difference/variance identified and the disposition taken to adjust the balances of the inventory accordingly.

B. Template #2 - Report on Destroyed Cannabis Products

Description Field Type Detailed Guidelines
Product Category Text

See Template #1 for related description/definition

Product Stock Keeping Unit (SKU)

Alpha

Numeric

See Template #1 for related description/definition
Universal Product Code (UPC) Numeric

See Template #1 for related description/definition.

Unit of Measure (UOM) Text See Template #1 for related description/definition
Quantity Destroyed Numeric

Indicate the total volume or quantity of a SKU destroyed at a given calendar month.

Data Destroyed Numeric Indicate the exact date (yyyy/mm/dd) when the cannabis product is destroyed.
Time Destruction is Completed Numeric Using the 24-hour format (00:00 – 23:59), indicate the exact time when the destruction of cannabis product is completed.
Method of Destruction Text

Describe the method used to destroy cannabis products that are deemed ineligible to be sold or ineligible for return to the OCRC. As required under Section 3.1 of the Registrar’s Standards, licensees shall use a method of destruction that:

 

  1. Complies with all applicable federal, provincial and municipal laws and regulations, including environmental protection legislation applicable to the location where it is being destroyed; and
  2. Does not result in any individual being exposed to cannabis smoke or cannabis vapour.
Done By Text

If carried out by the licensee, indicate the name and position/title of the authorized  personnel who oversee the destruction of the cannabis products that are deemed ineligible to be sold or ineligible for return to the OCRC. The authorized personnel could either be the Licensed Manager or Licensed Retail Operator in accordance with Section 3.2 of the Registrar’s Standards.

 

If the destruction of the cannabis product is carried out by a contracted third party service provider, indicate the name of the company and the name and title of its authorized representative. Attach a copy of the certificate of destruction when submitting this report to the AGCO.

Reason for Destruction Text Explain or describe the reason why the cannabis products are deemed ineligible to be sold or ineligible for return to the OCRC and therefore destroyed.

C. Template #3A - Report on Inter-Store Transfers Cannabis Products - Incoming

Description Field Type Detailed Guidelines
Product Category Text

See Template #1 for related description/definition

Product Stock Keeping Unit (SKU)

Alpha

Numeric

See Template #1 for related description/definition
Universal Product Code (UPC) Numeric

See Template #1 for related description/definition.

Unit of Measure (UOM) Text See Template #1 for related description/definition
Quantity Received Numeric Indicate the total volume or quantity of SKU(s) received from incoming inter-store transfers in a given calendar month. Do not report, as part of “Quantity Received”, incoming inter-store transfers in a given calendar month that are still in-transit and not yet physically received as at the last day of that month. Report them in the succeeding month when the inventory transferred was physically received.
Date Received Numeric Indicate the exact date (yyyyy/mm/dd) when the incoming inter-store transfers of SKU(s) are physically received and acknowledged/signed-off the store.
Received By Text Indicate the name and position/title of the authorized personnel who acknowledged and sign-off on the receipt of each incoming inter-store transfers of SKU(s).
Transferring Store Text & Numeric Indicate the exact/complete name and RSA number of the transferring store or source of the incoming inter-store transfers of SKU(s).

D. Template #3B - Report on Inter-Store Transfers of Cannabis Products - Outgoing

Description Field Type Detailed Guidelines
Product Category Text

See Template #1 for related description/definition

Product Stock Keeping Unit (SKU)

Alpha

Numeric

See Template #1 for related description/definition
Universal Product Code (UPC) Numeric

See Template #1 for related description/definition.

Unit of Measure (UOM) Text See Template #1 for related description/definition
Quantity Transferred Numeric Indicate the total volume or quantity outgoing inter-store transfers of SKU(s) in a given calendar month. Do not report, as part of “Quantity Transferred”, outgoing inter-store transfers in a given calendar month that are still in-transit and not yet physically received and acknowledged by the receiving store as at the last day of that month. Report them in the succeeding month when the inventory transferred was physically received and acknowledged by the receiving licensed cannabis retail store.
Date Transferred Numeric Indicate the exact date (yyyyy/mm/dd) when the outgoing inter-store transfers of SKU(s) are physically received and acknowledged/signed-off by the receiving store.
Receiving Store Text & Numeric Indicate the exact/complete name and RSA number of the receiving store or recipient of the outgoing inter-store transfers of SKU(s), as well as the name and position/title of the authorized store personnel who acknowledged/sign-off the receipt of the inventory transfer.

Other General Reporting Guidelines and Specifications

All licensees must comply with the following additional general guidelines and specification when preparing and completing the foregoing regulatory reports:

  • Do not modify column headings/descriptions in any of the reporting templates. (i.e. do modify the language used in the reporting templates, add columns or merge cells).
  • Additional rows may be added as necessary to enter or account for additional inventory line items; however, do not remove or delete unused or unfilled rows.
  • Only report information as per requirements of each reporting template. Do not provide additional information that is not required in the reporting template.

Submitting Your Periodic and Incident-Based Reports

  1. Timing of Submission
    All licensees are required to accurately complete and submit the period and incident-based reports as necessary to AGCO following the applicable timing of submission as discussed in the foregoing.
  2. Failure to Submit on Time
    Failing to submit accurate and complete periodic and/or incident-based reports within the required timeframe is a breach of the Registrar’s Standards and may result in regulatory action..
  3. Method of Submission
    All licensees must upload and submit their completed periodic and incident-based reports to AGCO online through the iAGCO portal. For more information, please visit the iAGCO Information page.

Please ensure the File Name follows the format “RSA#_AGCO_MMYY”, where:

RSA#: Retail Store Authorization Number;

MM: Month; and

YY: Year.

 

Line of Business: