: Ontario Cannabis Legalization Implementation Fund (OCLIF)

OCLIF

Overview

Through the Ontario Cannabis Legalization Implementation Fund (OCLIF), the province is providing municipalities with $40 million over two years to help with the implementation costs of recreational cannabis legalization. OCLIF is 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 receive $5,000 each. 
    • Municipalities that did not opt-out of hosting private retail stores receive funding on a per-household basis, adjusted so that at least $5,000 is provided to each municipality.
  • Ontario is setting aside $10 million of the municipal funding to help address costs from unforeseen circumstances related to the legalization of recreational cannabis. Priority for this funding will be given to municipalities that have not opted-out. Further details will be provided at a later date.

Lower-tier and upper-tier municipalities

Lower-tier and upper-tier municipalities receive 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 payment, upper-tier municipalities receive funding in relation to opt-out decisions made by the lower-tier municipality. If a lower tier municipality opted out, the upper tier municipality does not receive funding on a per household basis in relation to that municipality.

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 have not opted-out 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)
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