: Ontario Cannabis Legalization Implementation Fund (OCLIF)

OCLIF

Overview

Through the Ontario Cannabis Legalization Implementation Fund (OCLIF), the province provided municipalities with $36.74 million in direct funding to help with the implementation costs of recreational cannabis legalization. OCLIF was distributed as follows:

  • A first payment of $15 million to all municipalities on a per-household basis, adjusted so that at least $5,000 is provided to each municipality.
  • Following the deadline for municipalities to opt-out under the Cannabis Licence Act, a second payment of $15 million.
    • Municipalities that opted-out of hosting private retail stores received $5,000 each. 
    • Municipalities that did not opt-out of hosting private retail stores received funding on a per-household basis, adjusted so that each received at least $5,000.
  • A third payment of $6.74 million (to municipalities that did not opt-out of hosting retail stores), adjusted so that each received at least $5,000.

Ontario also invested $3.26 million to support municipalities through enhanced enforcement against illegal cannabis operations.

Federal Excise Duty

If Ontario’s portion of the federal excise duty on recreational cannabis over the first two years of legalization exceeds $100 million, the province will provide 50 per cent of the surplus only to municipalities that did not opt-out of hosting private retail stores as of January 22, 2019.

Use of the Funds

Municipalities must use their OCLIF funding to address the implementation costs that directly relate to the legalization of recreational cannabis. Examples of permitted costs include:

  • increased enforcement (e.g. police, public health and by-law enforcement, court administration, litigation)
  • increased response to public inquiries (e.g. 311 calls, correspondence)
  • increased paramedic services
  • increased fire services
  • by-law / policy development (e.g. police, public health, workplace safety policy)

Lower-tier and upper-tier municipalities

Lower-tier and upper-tier municipalities received a 50/50 split of the allocations made on a per household basis. Decisions to adjust the split in allocation and transfer funding can be made at the local level as needed. In the second and third payments, upper-tier municipalities received funding in relation to opt-out decisions made by the lower-tier municipality. If a lower tier municipality opted-out, the upper tier municipality did not receive funding on a per household basis in relation to that municipality.

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