2.3 Background Checks

Retail Cannabis Store Handbook

IMPORTANT: Notices of Assessment/Reassessment must be submitted for the personal applicant, their partner and dependents for the last three years.

Policies

  1. A thorough background check is conducted on an applicant, the applicant’s associates and any key employees of the applicant as defined by AGLC pursuant to Section 9 and 9.1 of the Gaming, Liquor and Cannabis Regulation (GLCR).
  2. The background check is to ensure criminal interests, or those who otherwise would be a detriment to the lawful conduct of cannabis in the province, are prevented from operating, having a financial interest in or having an association with a cannabis licence.
  3. The applicant is responsible to pay for the actual cost of the background checks pursuant to Section 127 of the GLCR.
  4. The Licence Application Package consists of the following:
    1. Applicant Disclosure (form 8015);
    2. Associated Applicant Disclosure (form 8016);
    3. Personal Applicant Disclosure (form 8017); and
    4. $3,000 deposit or another specified amount to cover the cost of the background checks.
  5. An applicant’s key employees include individual(s) that exercise influence or control over day to day operations or decision‐making and individuals who have the authority to hire or terminate the employment of qualified cannabis workers, and include but are not limited to:
    1. individuals employed in senior management positions such as CEO, CFO, controller and senior compliance officers;
    2. the manager of the premises;
    3. a person holding a position specified by AGLC as related to the business; and
    4. any other person holding a key position as determined by AGLC.
  6. An applicant’s associates include:
    1. any person that has a financial interest in the applicant, in the applicant’s business, or in the premises to which the application relates and the spouse of the person or a person with whom the person is living in a relationship of interdependence;
    2. if the applicant is an individual or partnership in which one (1) or more of the partners is an individual, this also includes:
      1. the spouse of the individual or a person with whom the individual is living in a relationship of interdependence;
      2. any relative of the individual and of the spouse or person referred to in Subclause i) if the relative resides with the individual, spouse or person;
      3. any corporation controlled by the individual;
      4. an officer or director of, and any person with a financial interest in, a corporation controlled by the individual, and the spouse of the officer, director or person or a person with whom the officer, director or person is living in a relationship of interdependence; and
      5. any corporation that is affiliated with the corporation referred to in Subclause iv), the affiliated corporation's officers and directors, and any person having a financial interest in the affiliated corporation, and the spouse of the officer, director or person or a person with whom the officer, director or person is living in a relationship of interdependence; and
    3. if the applicant is a corporation or a partnership in which one (1) or more of the partners is a corporation,
      1. an officer or director of the corporation;
      2. the spouse of the officer or director of the corporation or a person with whom the officer or director is living in a relationship of interdependence;
      3. any  relative  of  the  officer  or  director  referred  to  in Subclause i) and any relative of the spouse or of a person referred to in Subclause ii), if the relative resides with the officer, director, spouse or person;
      4. any corporation affiliated with the applicant;
      5. an officer or director of an affiliated corporation and the spouse of the officer or director of an affiliated corporation or a person with whom the officer or director is living in a relationship of interdependence; and
      6. any person who has a financial interest in the affiliated corporation and the spouse of the person or a person with whom the person is living in a relationship of interdependence.
  7. A corporation is controlled by a person, if he or she has indirect influence over the corporation or if:
    1. securities of the corporation to which are attached more than 50 per cent of the votes that may be cast to elect directors of the corporation are controlled, other than by way of security only, directly or indirectly by the person or entity; and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the corporation; or
    2. the person has in relation to the corporation any direct or indirect influence which, if exercised, would result in control in fact of the corporation.
  8. A corporation is affiliated with another corporation if:
    1. one (1) of the corporations controls the other; or
    2. both of the corporations are controlled by the same person or group of persons.
  9. A relative of a person means any other person who is connected to that person:
    1. by blood relationship;
    2. by adoption;
    3. by marriage;
    4. by virtue of an adult relationship of interdependence (as defined in the Adult Interdependent Relationships Act).
  10. AGLC may refuse to allow an applicant to have a cannabis licence if, in its opinion, the applicant has misled AGLC or provided inaccurate or incomplete information.
  11. The applicant shall ensure that it, and all other parties to the application for a cannabis licence submit all documents or provide information as requested by AGLC and deemed necessary to complete the background checks. Failure to submit the documents or information may result in sanctions as determined by the Board up to and including the termination of the cannabis licence.
  12. AGLC may refuse to issue a cannabis licence, or may terminate a cannabis licence if AGLC is satisfied the applicant, any of the applicant’s key employees or associates, or any person or entity connected to or associated with the applicant:
    1. is a person who has not acted or may not act in accordance with the law, with honesty and integrity or in the public interest, having regard to the past conduct of the person;
    2. is a person whose background, reputation and associations may result in adverse publicity for the cannabis industry in Alberta.
    3. has at any time prior to being notified by AGLC of their eligibility for a cannabis licence:
      1. contravened the Gaming, Liquor and Cannabis Act (GLCA) or the GLCR;
      2. contravened a predecessor of the GLCA or the GLCR;
      3. contravened a condition imposed on a licence or registration issued or made under the GLCA or a predecessor of the GLCA; or
      4. fails to pass a records check as outlined in Section 10 of the GLCR.
    4. if at any time prior to being notified by AGLC of eligibility for a cannabis licence, a licence or registration issued or made under the GLCA or predecessor of the GLCA or a foreign licence or registration of the applicant, any of the applicant’s key employees or any of the applicant’s associates has been cancelled by the issuing authority.
  13. Notwithstanding Subsections 2.3.1 through 2.3.12 AGLC may refuse to allow an applicant to have a cannabis licence.
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