Item - 2019.GL8.20

The General Government and Licensing Committee recommends that:

1.  City Council amend the City of Toronto Municipal Code Chapter 545, Licensing, as follows:

Definitions

a.  Adopt the following definitions subject to such technical and stylistic amendments as required by the City Solicitor and the Executive Director, Municipal Licensing and Standards:

Vapour Product - An electronic cigarette, an e-substance, or any component of an electronic cigarette and includes the package in which the electronic cigarette, e-substance, or any component is sold.

E-cigarette - A vaporizer or inhalant-type device, whether called an electronic cigarette or any other name, that contains a power source and heating element designed to heat a substance and produce a vapour intended to be inhaled by the user of the device directly through the mouth, whether or not the vapour contains nicotine.

E-substance - A substance that is manufactured or sold to be used in an electronic cigarette.

Licensing Requirements

b.  Create a new business licence category for vapour product retailers and adopt a new licensing requirement for existing owners or operators of any store or shop where vapour products are sold.

c.  Require that any person or entity who applies for the vapour product retailer licence shall provide the following information:

1.  name of applicant;

2.  address for business;

3.  contact information (phone number and e-mail address);

4.  primary contact person name, phone number, e-mail address, and mailing address;

5.  criminal background check; and

6.  any other information as required by the Executive Director, Municipal Licensing and Standards.

d.  Require that, in order for a vapour product retailer in the City of Toronto to obtain and continue holding a licence under Chapter 545, Licensing, every applicant for a licence is required to register, where applicable, under the Smoke-Free Ontario Act, 2017.

e.  Require that licence holders must attend the offices of the Municipal Licensing and Standards Division within 48 hours of changing their business address to inform of the change of address and produce their licence for the change to be entered thereon.

f.  Require that existing business licensees that sell vapour products obtain a vapour product retail endorsement on their business licence upon licence renewal as of April 1, 2019.

Fees

2.  City Council amend the City of Toronto Municipal Code Chapter 441, Fees and Charges, Appendix C - Schedule 12, Municipal Licensing and Standards, to include the following fees for the vapour product retailer licence, subject to annual adjustments based on the Consumer Price Index:

a.  Vapour Product Retailer Licence Fee: $645.53; and

b.  Vapour Product Retailer Annual Renewal Fee: $315.17.

Implementation

3.  City Council direct that the changes to the City of Toronto Municipal Code Chapter 441, Fees and Charges, and the City of Toronto Municipal Code Chapter 545, Licensing, come into force on April 1, 2020.

4.  City Council authorize the City Solicitor and the Executive Director, Municipal Licensing and Standards, to make such technical and stylistic amendments to the Bill amending the City of Toronto Municipal Code Chapter 441, Fees and Charges, and the City of Toronto Municipal Code Chapter 545, Licensing, as required to give effect to City Council's decision.

This report recommends amendments to the City of Toronto Municipal Code Chapter 545, Licensing, to introduce a new licence requirement for vapour product retailers.

Vapour products containing nicotine have only recently been legalized in Canada and are now a regulated product. Since 2018, the provincial government now regulates vapour product use and sales through the Smoke-Free Ontario Act, 2017 (SFOA). Vapour products include electronic cigarettes (e-cigarettes), any part of an e-cigarette (for example, coils), and substances made or sold to be used in an e-cigarette. The SFOA treats vapour products similar to tobacco products in their display, handling, and sale in retail stores. One of the main purposes of the SFOA is to help reduce youth access to tobacco and vapour products and to protect workers and the public from second-hand tobacco and cannabis smoke and second-hand vapour.

Over the past few years, the presence of vapour products has become widespread throughout the City of Toronto; they are sold in most stores where tobacco is sold and there has been a growth of specialty vape stores. Members of the public should be aware of the potential harms of using vapour products (vaping), the addictive potential of vapour products containing nicotine, and the risk of vaping leading to subsequent tobacco cigarette smoking.

There have been growing concerns about youth access to vapour products, heightened with recent examples of respiratory illnesses among vapour product users. As of September 2019, there have been reports of cases of severe pulmonary illness associated with vapour product use in the USA and in Canada. Most of the cases report using vapour products containing unregulated/illegal cannabis products; however, the cause is still under investigation.

There is currently no reliable system in place for Toronto Public Health (TPH) staff to accurately track and inspect all vapour product retailers to ensure their compliance with the SFOA. Introducing a new licensing category for vapour product retailers will assist TPH in their enforcement of the SFOA by enabling adequate City oversight of the number and location of retailers. The proposed new licence category would also provide the City with tools under the City of Toronto Municipal Code Chapter 545, Licensing, to ensure compliance with all laws and, where appropriate, take enforcement actions.

TPH and Legal Services were consulted in the preparation of this report.