Alberta Cannabis Laws

Alberta Introduces Numerous Policy Changes for Cannabis Retailers

On January 31, 2024, the Alberta Gaming, Liquor & Cannabis (AGLC) published a bulletin outlining a variety of policy changes and amendments to the Retail Cannabis Store Handbook. Key highlights of this bulletin include:

• Retailers can sell cannabis at adult-only events and trade shows
• Engage in product transfers with other licensed retailers without the previous 120-day wait
• Cannabis can remain in locked showcases in the customer area after store hours
• Cannabis waste disposal procedures updated to reflect the Cannabis Waste Management Fact Sheet 2023
• The minimum size of cannabis samples is changed to the smallest available size of the product (if it's not available as a <3.5 gram sample)

All of these changes take effect immediately.

Alberta Rounds off 2023 with Cannabis Amendments to Red Tape Reduction Act

The Red Tape Reduction Act was introduced to curb “overly prescriptive rules” and allow Albertan businesses across a variety of industries to operate with less government intervention.

Throughout 2023, the Government of Alberta and the AGLC introduced changes to increase cannabis revenue and support the industry. Here is a summary of those changes:

• Allowing more flexible store signage and names
• Simplifying online age verification systems
• Cutting listing fees for producers by 83% and shipping fees for retailers by 11%.
• Allowing cannabis stores to open at 9 a.m
• Letting licensed producers provide product samples to retailers for promotion
• Offering free sales data from AGLC

Alberta Cannabis Dispensary Key Laws and Regulations

• Minimum Age: Recreational cannabis can only be sold legally to adults older than 18 years of age.
• Possession Limits: Adults can carry up to 1 ounce (or approximately 30 grams) of recreational cannabis in public.
• Medical Use: Qualified patients 18 years of age or older can order medical cannabis from a federally licensed producer with a doctor’s written notice, online or by phone. Exceptions may be made for minors on a case-by-case basis.
• Recreational Use: Recreational cannabis has been legal in Alberta since 2018 after the Cannabis Act was passed.
• Consumption Areas: Consumption of cannabis is allowed in private residences, certain public places, and temporary designated consumption areas. Cannabis cannot be smoked in vehicles.
• Regulatory Organization: The Alberta Gaming, Liquor and Cannabis (AGLC) is responsible for the licensing and regulation of cannabis in Alberta.
• Compliance Software: Cannabis businesses in Alberta are required to submit monthly reports to the AGLC portal. These reports help track the movement of cannabis, from seed to sale. The Cova POS is fully integrated with Alberta’s data reporting and compliance requirements.
• Growing Regulations: Adults may grow up to 4 cannabis plants per residence (as long as it is not forbidden by a lease or rental agreement). It must be for your personal use and the starting materials must be purchased from an authorized retail store.

An overview of the medical and recreational marijuana laws in Alberta.

Alberta allows adults over the age of 18 to publicly possess up to 30 grams of dried cannabis or its equivalent. This means purchasing any of the following items places an individual at their possession limit:

• 150g of fresh cannabis
• 450g of edible product
• 2,100g of liquid product
• 7.5g of concentrates (solid or liquid)
• 30 cannabis plant seed

Source

In addition to this, budtenders must stop a transaction if they believe a transaction will place the individual over their 30-gram possession limit.

Alberta has set the minimum age at 18, which is consistent with the purchase and consumption age for alcohol and tobacco.

All retailers must purchase wholesale inventory directly from the AGLC. Cannabis products and inventory can be purchased directly from https://retail.albertacannabis.org/ through the online portal (more information can be found on the website itself).

Yes, on March 8, 2022, following amendments by the AGLC, licensed cannabis retailers were allowed to sell cannabis online and provide delivery.

As of May 2024, only licensed retailers with physical cannabis stores can provide these services. To promote local businesses, Albertacannabis.org (originally operated by the AGLC) has also been shut down.

The AGLC authorizes the sale of cannabis in various forms, including but not limited to,

• Dried flower
• Pre-rolled joints
• Oils and tinctures
• Capsules
• Seeds
• Vapes
• Topicals
• Edibles

Cannabis retailers are not allowed to sell alcohol, tobacco, or pharmaceuticals on the same premises.

Cannabis retailers in Alberta are allowed to sell cannabis accessories that are directly related to the consumption or storage of cannabis. Below is a list of cannabis accessories approved by the AGLC.

Source

Accessories like clothing, merchandise, cosmetics, health, and beauty items are explicitly prohibited by the AGLC.

Retail Cannabis Licensing in Alberta

Everything you need to know about opening a retail cannabis location in Alberta.

The AGLC has a comprehensive review process for Businesses, organizations, and individuals that are interested in becoming a licensed cannabis retailer. The process consists of background checks, municipal approval, and meeting specific business and retail store requirements.

The process itself is divided into the following six phases:

Municipal Assessment: Check local bylaws and zoning restrictions with your municipal government to ensure eligibility before submitting your application.

Preliminary Assessment: Submit necessary documents, such as floor plans, application forms, licence fees, and personal/financial documents. Applications will be posted on the AGLC website for 7 days for public objections.

Premises Assessment: An AGLC Inspector will visit the site to ensure it meets all requirements and review operating procedures with management.

Issuance of Licence: If approved, a Cannabis Retail Store licence will be issued. Licences are non-transferable and void if the premises is sold or transferred.

Post-Issuance Setup: An Account Management Coordinator will help set up ordering and reporting processes, taking roughly 3 weeks. Required documents include (but are not limited to) 360-degree photos of the premises and banking information.

Operating Requirements: The final phase of the application process is a review of the operating requirements, which include:

• Location: Adhere to buffer zone restrictions
• Product Supply: Obtain product supply exclusively from AGLC
• Premise Security: ensure premises security

Other operating requirements include compliance with store hours, securing all cannabis products, age verification, and prohibiting minors/intoxicated persons from entering the premises and/or purchasing cannabis.

Cannabis staff including budtenders must also complete SellSafe training and be AGLC Qualified Cannabis Workers. And finally, licensees must provide regular reports to the AGLC on cannabis sales, returns, destruction, loss, and recalls.

The Due Diligence Unit of the AGLC is in charge of processing retail cannabis applications in Alberta.

To apply, the corporate entity applying for a retail license must complete the Applicant Disclosure Form and have an ownership interest of 10% or more of the applying retail cannabis store. Any investors with 10% or more ownership are required to complete the Associated Applicant Disclosure Form.

The following key applicants must undergo thorough personal and financial background checks, conducted by the AGLC:

• Those who exercise influence or control over the day-to-day operations of the business
• Have decision-making power
• Can hire and/or fire employees
• You can view the full official AGLC Applicant Requirement Cannabis Retail Store License online.

There is no set time frame for the retail license application and the time required can vary based on the applicant. That said, application processing will generally take approximately two to four months and the AGLC processes retail applications on a first come, first serve basis.

Yes, municipal approval is required before the AGLC will issue a retail cannabis license.

Applicants should get in touch with their intended municipality to find out the requirements regarding:

• municipal retail cannabis laws
• zoning requirements
• land-use restrictions
• location requirements regarding how close a retail store can be to a provincial health care facility, school, or parcel of land designated as a school reserve.

In addition to this, as per Section 3.2 of the Retail Cannabis Store Handbook, the AGLC will not approve a retail cannabis license if the store is located within 100 meters of:

• a provincial health care facility
• a building containing a school
• Land designated for a school reserve or municipal and school reserve under the Municipal Government Act

The above restrictions also apply to the boundary of the parcel of land on which these facilities are located.

Section 3.1 of the Retail Cannabis Store Handbook lays out the separate business requirements for retail applicants. Key highlights of these business requirements are as follows:

• The retail cannabis store must operate as a separate, viable business, aiming to make a reasonable profit independently.
• The retail cannabis store licensee must be incorporated as a separate company, unless it is a sole proprietorship. A co-operative, or incorporation is prohibited by legislation.
• Separate financial records must be maintained for the retail cannabis store.
• The licensee must have a commercial relationship with any affiliated business for leasing, purchasing, or other services.
• Employees must be hired by and work solely for the retail cannabis store.
• The retail cannabis store must have management separate from any commonly-owned or affiliated business.
• A written contract is required for any services shared with an affiliated business.

At the time of the application, candidates are required to pay the following fees:

• A $400 non-refundable application fee for each store location at the time of submission
• A $700 annual license fee
• A $3,000 initial deposit to cover the cost of background checks and additional costs of due diligence (the AGLC will refund any part of the $3,000 that is unused).

The fee structure is reviewed every three years and is accurate as of May 2024.

Alberta Dispensary Laws

Learn how to remain compliant with Alberta cannabis retail laws.

Alberta established additional advertising laws in concert with federal guidelines. One major difference is that the AGLC allows a cannabis licensee and manufacturer of non-cannabis products and accessories to jointly advertise, so long as the advertisement complies with all other cannabis advertising laws.

The province also goes into more detail than the federal law when it comes to business-to-business advertising. These comprehensive advertising regulations are covered in Section 6.1 of the Retail Cannabis Store Handbook. The following list is a summary of the key highlights:

• Advertising is only allowed in places where those under 18 are prohibited. Ads must not be visible or audible to minors. They must also not appeal to minors in any way, shape, or form.
• Advertisements must not include:

• Prices (except inside the store)
• Testimonials or endorsements
• Associating cannabis with alcohol or tobacco
• Health or cosmetic benefits claims
• Depictions of people, characters, or animals
• Claims of positive or negative impact (e.g., glamorous, vitality)
• Depict cannabis consumption
• Encouragement of non-users to start using cannabis

• Advertisements must be paid for by the retailer—suppliers cannot cover these costs. Co-operative advertising is allowed if the retailer pays and keeps records for two years.
• Using cannabis brands for sponsoring events, activities, or entities is prohibited.
• Product promotions should not be false, misleading, encourage irresponsible use, offer added compensation/discounts for purchases, or require purchasing cannabis for participating in games or contests

If the form of advertisement you’re interested in is not covered in the Handbook, you’re required to get prior approval from the AGLC before releasing any material to the public.

Google AdWords has a strict no-cannabis policy, even in legal countries. A cannabis brand can try to get ads through this filter, but multiple disapproved ads can get your site URL banned for good. A better option is to focus on organic search optimizations.

No, the Cannabis Act is very clear that no free product can be given out.

Cannabis Tracking, Reporting, and Inventory Control in Alberta

Every regulated cannabis market has its own tracking and reporting requirements. Find out how Alberta will monitor commercial cannabis activity here.

The AGLC outlines the tracking, reporting, and inventory control requirements in the Federal Compliance Reporting - Technical Specification. It also lays down the mandatory requirements for all licensees, which are as follows: Maintain an electronic inventory system to track all cannabis products bought, stocked, and sold.

• The inventory management system must also be able to track inventory by lot number.
• Use a point-of-sale POS system connected to the inventory system for near-real-time tracking.
• The POS must also record the time and date of the transaction, the method of payment, and the cannabis product description and relevant AGLC SKU.
• Back up all POS and inventory data securely every week.
• Use the AGLC-provided SKU as a key reference in the inventory system.
• Complete and submit data to AGLC using the prescribed templates every month.
• Inventory, sales, and other records must be stored for a minimum of six years with the last two years' data being kept on the licensed premises itself. The AGLC or law enforcement may request and licensees are required to comply.

Yes, Cova's Cannabis Dispensary POS Software and inventory management system is one of Canada’s leading cannabis retail POS systems in Canada. It is fully compliant with Alberta’s tracking and reporting requirements and and more.

Cova’s dispensary POS and inventory management system includes all the features needed to keep cannabis retailers compliant, including:

• ID scanner for age and patient card verification
• Integrated inventory and sales tracking and reporting
• Built-in product equivalency conversions and purchase limit enforcement

See the cannabis industry’s most loveable POS in action with a live demo.

Dive deeper into everything related to cannabis retail in and around Alberta with these curated resources.

• AGLC E-Commerce & Delivery Regulations for Cannabis Retailers in Alberta
• How to Start Cannabis Delivery & Grow Your E-Commerce Business in Alberta
• Boutique Cannabis Store Owner’s Journey to E-Commerce Sales in Alberta

Since its first year of legalized cannabis sales in Canada, Alberta has led the way in the expansion of private retail. Although it lags behind Ontario in terms of market size, Alberta's year-over-year growth rate of 4.7% blows that of Ontario (-0.8%) and British Columbia out of the water (-12.6%).

In other words, Alberta’s cannabis market is outpacing its more populous counterparts. Part of this growth is down to the work of the Alberta Gaming and Liquor Commission (AGLC), which is responsible for creating the ideal environment for cannabis retailers to grow and compete.

For instance, in 2022, the AGLC announced that it would open up the online cannabis and delivery market to private players, which was previously controlled by the Government of Alberta. Since then, Alberta has introduced numerous other amendments to help the cannabis market grow (including the Red Tape Reduction Act).

Given its current trajectory, it’s clear that Alberta will become one of the largest legal cannabis markets in Canada and will lead the country in cannabis reforms in many ways.

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