Cannabis Regulations (SOR/2018-144)

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Regulations are current to 2019-05-07 and last amended on 2019-01-15. Previous Versions

PART 3Security Clearances

Marginal note:Definitions

 The following definitions apply in this Part.

corporation

corporation does not include a federal or provincial Crown corporation. (personne morale)

partnership

partnership does not include an incorporated entity. (société de personnes)

Marginal note:Requirement for security clearance

 The following individuals must hold a security clearance:

  • (a) an individual who holds a licence for cultivation, processing or sale;

  • (b) in the case of a corporation that holds a licence for cultivation, processing or sale,

    • (i) the directors and officers of the corporation,

    • (ii) any individual who exercises, or is in a position to exercise, direct control over the corporation,

    • (iii) the directors and officers of any corporation or cooperative that exercises, or is in a position to exercise, direct control over the corporation,

    • (iv) any individual who is a partner in a partnership that exercises, or is in a position to exercise, direct control over the corporation, and

    • (v) the directors and officers of any corporation that is a partner in a partnership that exercises, or is in a position to exercise, direct control over the corporation;

  • (c) in the case of a cooperative that holds a licence for cultivation, processing or sale,

    • (i) the directors and officers of the cooperative,

    • (ii) any individual who exercises, or is in a position to exercise, direct control over the cooperative,

    • (iii) the directors and officers of any corporation or cooperative that exercises, or is in a position to exercise, direct control over the cooperative,

    • (iv) any individual who is a partner in a partnership that exercises, or is in a position to exercise, direct control over the cooperative, and

    • (v) the directors and officers of any corporation that is a partner in a partnership that exercises, or is in a position to exercise, direct control over the cooperative;

  • (d) in the case of a partnership that holds a licence for cultivation, processing or sale,

    • (i) any individual who is a partner,

    • (ii) the directors and officers of any corporation or cooperative that is a partner,

    • (iii) any individual who is a partner in a partnership that exercises, or is in a position to exercise, direct control over the partnership that holds the licence, and

    • (iv) the directors and officers of any corporation that is a partner in a partnership that exercises, or is in a position to exercise, direct control over the partnership that holds the licence;

  • (e) in the case of a licence for cultivation, processing or sale, the responsible person referred to in section 37;

  • (f) in the case of a licence for cultivation, processing or sale, the head of security referred to in section 38;

  • (g) in the case of a licence for cultivation, the master grower referred to in section 12 or 15;

  • (h) in the case of a licence for processing, the quality assurance person referred to in section 19;

  • (i) an individual who has been designated as an alternate for a position referred to in any of paragraphs (e) to (h); and

  • (j) an individual who has been specified by name by the Minister under subsection 67(2) of the Act or who occupies a position that has been specified by the Minister under that subsection.

Marginal note:Eligibility

 Only the following individuals may submit an application for a security clearance:

  • (a) an individual who is required to hold a security clearance;

  • (b) an individual who will be required to hold a security clearance if an application for a licence, or for its renewal or amendment, that has been filed with the Minister results in the issuance, renewal or amendment of the licence;

  • (c) an individual who will be required to hold a security clearance if a pending business transaction is completed;

  • (d) an individual who has been selected for a position referred to in any of paragraphs 50(e) to (h) or as an alternate for such a position; and

  • (e) an individual who has been selected for a position that has been specified by the Minister under subsection 67(2) of the Act or who has been notified that the Minister intends to specify them, by name or position, under that subsection.

Marginal note:Checks

 The Minister may, at any time, conduct checks that are necessary to determine whether an applicant for, or the holder of, a security clearance poses a risk to public health or public safety, including the risk of cannabis being diverted to an illicit market or activity. Such checks include

  • (a) a check of the applicant’s or holder’s criminal record; and

  • (b) a check of the relevant files of law enforcement agencies that relate to the applicant or holder, including intelligence gathered for law enforcement purposes.

Marginal note:Grant of security clearance

  •  (1) Before granting a security clearance, the Minister must, taking into account any licence conditions that he or she imposes under subsection 62(10) of the Act, determine that the applicant does not pose an unacceptable risk to public health or public safety, including the risk of cannabis being diverted to an illicit market or activity.

  • Marginal note:Factors

    (2) Factors that the Minister may consider to determine the level of risk posed by the applicant include

    • (a) the circumstances of any events or convictions that are relevant to the determination, the seriousness of those events or convictions, their number and frequency, the date of the most recent event or conviction and any sentence or other disposition;

    • (b) whether it is known, or there are reasonable grounds to suspect, that the applicant

      • (i) is or has been involved in, or contributes or has contributed to, an activity that is prohibited by, or conducted in contravention of, any of the provisions of Division 1 of Part 1 of the Act — other than paragraphs 8(1)(a) to (e) — or Subdivision E of Division 2 of Part 1 of the Act,

      • (ii) is or has been involved in, or contributes or has contributed to, an activity that is prohibited by, or conducted in contravention of, any of the provisions of Part I of the Controlled Drugs and Substances Act — other than subsection 4(1) — or subsection 32(1) or (2) of that Act,

      • (iii) is or has been involved in, or contributes or has contributed to, an activity that is prohibited by, or conducted in contravention of, any provision of the Criminal Code relating to fraud, corruption of public officials, terrorism financing, counterfeiting or laundering the proceeds of crime,

      • (iv) is or has been involved in, or contributes or has contributed to, an offence involving an act of violence or the threat of violence,

      • (v) is or has been a member of a criminal organization as defined in subsection 467.1(1) of the Criminal Code, or is or has been involved in, or contributes or has contributed to, the activities of such an organization,

      • (vi) is or has been a member of an organization that is known to be involved in or to contribute to — or in respect of which there are reasonable grounds to suspect its involvement in or contribution to — activities directed toward, or in support of, acts of violence or the threat of violence, or is or has been involved in, or contributes or has contributed to, the activities of such an organization,

      • (vii) is or has been associated with an individual who

        • (A) is known to be involved in or to contribute to — or in respect of whom there are reasonable grounds to suspect their involvement in or contribution to — activities referred to in subparagraphs (i) to (iii), or

        • (B) is a member of an organization referred to in subparagraph (v) or (vi), or

      • (viii) has conspired to commit

        • (A) an offence under any of the provisions of the Criminal Code referred to in subparagraph (iii),

        • (B) an offence referred to in subparagraph (iv), or

        • (C) an offence under any of sections 467.11 to 467.13 of the Criminal Code;

    • (c) whether there are reasonable grounds to suspect that the applicant could be induced to commit an act — or to aid or abet any person to commit an act — that might constitute a risk to public health or public safety;

    • (d) whether there are reasonable grounds to believe that the applicant’s activities, including their financial activities, pose a risk to the integrity of the control of the production and distribution of cannabis under the Act;

    • (e) whether the applicant has had a security clearance suspended or cancelled;

    • (f) whether there are reasonable grounds to believe the applicant has, now or in the past, submitted false or misleading information, or false or falsified documents, to the Minister; and

    • (g) whether an entity has refused to issue a security clearance to the applicant — or has suspended or cancelled one — and the reason for the refusal, suspension or cancellation.

 
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