On October 17, 2018, the Alberta we know will change. Some harken back to the fear mongering of Y2K at the turn of the millennium. Others are set to embrace it with the same fervor as the repeal of prohibition in 1923. Whatever your point of view, things will change. Besides its new name, Alberta Gaming, Liquor and Cannabis (still AGLC), has been working to make this change as seamless as possible for over a year.
AGLC has been tasked with both retailing and regulating cannabis in the province. While the federal government (under Bill C-45, the soon to be proclaimed Cannabis Act) maintains authority over cannabis production, distribution and certain aspects of its sale, AGLC will be making cannabis sales happen in Alberta.
The Gaming, Liquor and Cannabis Act and its regulation set out provisions similar to those for liquor. Come October 17, cannabis will be sold by provincially-licensed retailers out of closely regulated store fronts throughout Alberta communities. Business licences remain the purview of municipalities.
AGLC anticipates having 250 licensed retailers in the first year and has restricted any one retailer to no more than 37 stores within the province (the regulation prohibits any one retailer from holding more than 15% of total licences). Licence applicants have run the gambit from individuals to large TSX-traded corporations. All applicants are put through a due diligence review which includes a criminal record check and source of funds determination. AGLC is conscious of its role in ensuring that its licensed retailers are acting with honesty, integrity and in the public interest.
All cannabis sold in Alberta must be purchased from AGLC (there are exceptions for cannabis used for medical purposes). This allows Albertans two options: purchase from a licensed retailer who stock their businesses with AGLC product or purchase directly from AGLC online through its eCommerce site, albertacannabis.org. All of AGLC’s cannabis is purchased from Canadian licensed producers. On October 17, cannabis sales will be restricted to fresh or dried cannabis and cannabis oil. Edibles will be legalized in the future.
The advent of its eCommerce site means a new area of business for AGLC. Albertacannabis.org will be the only legal provider of online cannabis sales in the province. The intention of this online service is not to compete with other Alberta businesses but to offer Albertan’s another choice. Age verification is an integral part of these online sales; from viewing product online to the point of delivery. Additionally, as with liquor, socially responsible cannabis use will be part of AGLC’s message.
If you represent a cannabis supplier (a licensed producer) or a cannabis retailer in this new frontier it’s important to remember that all three levels of government play a role in the process, adding a level of complexity. AGLC is always available to assist in answering questions you may have. For further information, check out aglc.ca or albertacannabis.org.
Kirsten Merryweather is a lawyer with Alberta Justice and Solicitor General who provides legal advice to the AGLC.