: Ontario Cannabis Legalization Implementation Fund (OCLIF)

2018 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:

  • Ontario is providing $15 million to all municipalities on a per-household basis, adjusted so that at least $5,000 is provided to each municipality. This will enable all municipalities to proceed with planned legalization activities.
  • After the deadline for municipalities to opt-out under the Cannabis Licence Act, which is January 22, 2019, Ontario will provide an additional $15 million.
    • Municipalities that have not opted-out as of January 22, 2019 will receive funding on a per-household basis, adjusted so that at least $5,000 is provided to each municipality. This funding will support initial costs related to hosting retail storefronts.
    • Municipalities that have opted-out will receive only a second $5,000 each. 

Ontario is setting aside $10 million of the municipal funding to 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.

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)

Lower-tier and upper-tier municipalities

Lower-tier and upper-tier municipalities will receive a 50/50 split of the allocation. The household numbers will be split between the upper- and lower-tier, and the allocation calculated accordingly. Decisions to adjust the split in allocation and transfer funding can be made at the local level as needed. Upper-tier municipalities will receive funding in relation to opt-out decisions made by the lower-tier municipality.