The province has just released the funding approach to help municipal governments offset
implementation costs. While opting out can be reversed after January 22, the municipal
government will not gain any additional funding from the Ontario Cannabis Legalization
Implementation Fund (OCLIF) than it had as of January 22 when it opted out - beyond the
minimum second payment of $5,000.
The Ontario Cannabis Legalization Implementation Fund (OCLIF) will be distributed as
- The City has been notified that it will receive its share of $15 million in mid-January in
the amount of $48,254. This will enable all municipalities to proceed with their planned
- A second payment of at least $5,000 from the $15 million will be distributed following
the January 22, 2019 deadline for municipalities to opt-out under the Cannabis
- Those municipalities that have opted-out will only receive a second payment of
- The Province is setting aside $10 million of the municipal funding to address costs
from unforeseen circumstances related to the legalization of recreational cannabis,
and priority will be given to municipalities that have not opted-out. Further details will
be provided at a later date.
- Finally, if the 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 %
of the surplus only to municipalities that have not opted-out.
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.
Municipalities must use this 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
- Increased response to public inquiries (e.g., 311 calls, correspondence);
- Increased paramedic services; increased fire services; and
- By-law / policy development (e.g., police, public health, workplace safety policy).
Complementary to this municipal funding, the Province will continue to do the following:
- Increase the capacity of law enforcement to help detect drug impaired driving through
The Province has also created a specialized legal team to support drug
impaired driving prosecutions, increased capacity at the Province’s Centre of Forensic
Sciences, and has created a Cannabis Intelligence Coordination Centre.
- Support local boards of health (public health units) by providing a suite of tools and
resources for enforcement of the Smoke-Free Ontario Act, 2017, which includes rules
for smoking and vaping of cannabis.
- Conduct an integrated public awareness campaign to communicate the rules and
regulations for recreational cannabis and educate Ontarians about the health and
safety measures in place to protect them.