Saskatchewan Head Of?ce - Box 5054, 2500 Victoria Avenue Liquor and Gaming] A Authority Canada November 15, 2018 Chief Anthony Cappo Muscowpetung Saulteaux Nation P.O. Box 1310 Fort Qu'Appelle SK 506 150 Dear Chief Cappo: I am writing regarding the recent opening of a cannabis retail store on Muscowpetung Saulteaux Nation land, as reported in several recent news articles. You may be aware that in January 2018, Government announced opportunities for up to 60 permits to sell non-medical cannabis to the general public in 40 communities of at least 2,500 residents across the province, including three First Nation communities. After discussions with the communities, only 32 communities opted to continue in the process, for a total of 51 permits. SLGA is currently processing the applications for these permits. The basis for this system of retail permit allocations is multi-leveled. The retail sale of cannabis for non-medical purposes in Saskatchewan is based on the authority of the federal Cannabis Act as well as The Cannabis Control (Saskatchewan) Act (CCA) and The Cannabis Control (Saskatchewan) Regulations (CCR). CCA and CCR require that anyone selling cannabis in Saskatchewan hold a permit from SLGA as well as a licence from the Saskatchewan Ministry of Finance pursuant to The Provincial Sales Tax Act. It is our view that these laws apply also on reserve land. The rules respecting the sale and distribution cannabis for medical purposes are the addressed in federal legislation; medical cannabis is not part of the provincial regulatory landscape. Cannabis that is produced for commercial sale by anyone who does not hold a federal licence under the federal Cannabis Act is illicit and cannot legally be possessed or sold anywhere in Canada. The federal Cannabis Act prohibits organizations and individuals from distributing cannabis that they know is illicit. A federally licensed cannabis Chief Anthony Cappo November 15, 2018 Page 2 producer is prohibited from selling cannabis to a retailer that has not been approved by a provincially recognized authority. Businesses that sell Illicit cannabis put their customers at risk with cannabis that has not had the benefit of regulatory oversight and which is not legal for the customer to possess. The Saskatchewan Liquor and Gaming Authority (SLGA) is monitoring the unfolding of the provincial permit system over the next 12-18 months in order to provide Government with additional information to consider regarding whether to increase the number of cannabis retail stores. During this period, SLGA will be monitoring the roll-out of 51 stores, the level of consumer demand, effect on the illegal black market, effect on youth access, driving offences, and health consequences. It is also our intention to consider community opinion including First Nations as part ofthis process. SLGA and other government officials would be pleased to meet with you to discuss this information and your perspective. lfyou would like to do so, or if you have any questions or require further information, please contact me at (306) 787-4705 or by email at Sincerely, 3 b. [pa/a? Fiona Cribb, Vice President Regulatory Services Division Saskatchewan Liquor and Gaming Authority cc: Clare lsman, President 8; CEO, SLGA Glen Gardner, Deputy Minister, Ministry ofJustice and Attorney General Greg Miller, Deputy, Minister, Ministry of Government Relations Rupen Pandya, Deputy Minister, Ministry of Finance