Background Check Package

How To Complete a Background Check Package

Background checks for the application process will be conducted by the Cannabis Control Commission’s contracted vendor, Creative Services Inc. (CSI).
The Background Check Authorization Forms (three forms per individual), and payment must be submitted in a sealed envelope with the name of the Corporation and marked “authorization forms”.

Background Check Authorization Forms
All individuals requiring a background check will need to complete the Background Check Authorization Forms listed below. Corporate entities requiring a background check are not required to complete the Background Check Authorization Forms.

1. Release & Authorization Form

• Ensure the form is completed in its entirety.
• If you do not have a Social Security Number please indicate this at the bottom of the form.
• Page 2 must be notarized.
• A wet signature is required on the bottom of Page 1. Electronic signatures will not be accepted.

2. Disclosure and Acknowledgment Form

• This form only needs to be signed by the individual consenting to the background check – no notary signature is required.
• A wet signature is required on this form. Electronic signatures will not be accepted.

3. CORI Acknowledgement Form

• Sign and date page 1 – A wet signature is required. Electronic Signatures will not be accepted.
• Complete all portions of page 2 with an * next to them.
• Provide the last SIX digits of your Social Security Number.
• This form must be notarized.

Instructions for Payment
Payment of $395.00 for each individual submitted for a background check and $250.00 for each corporate entity submitted for a background check must be included with the above-referenced forms. Please make a check for the total amount payable to Creative Services, Inc

Who needs to complete a background check form?

The following guidance is provided to address questions regarding the definitions of Person or Entity Having Direct Control and Person or Entity Having Indirect Control contained in 935 CMR 500.002 and 935 CMR 501.002.  It is meant to address frequently asked questions and concerns about the definitions of the terms above as they relate to legislatively mandated limits on the number of adult-use cannabis licenses that can be held by any individual or entity. Capitalized terms used but not defined in this guidance shall have the meaning set forth in 935 CMR 500.000 and 501.000.

An individual or an entity is defined as a“Licensee ”if they are an Owner (possessing10% or more of the equity in a Marijuana Establishment or if they have direct or indirect control.

“Owner” is defined as any Equity Holder that possesses 10% or more of the equity in a Marijuana Establishment, MTC, or Independent Testing Laboratory.

“Equity Holder” means a person or entity that holds or may hold as a result of one or more of the following including, without limitation, vesting, conversion, exercising any option, a right of first refusal, or any agreement that would trigger an automatic transfer of or conversion to equity, any amount of equity in a Marijuana Establishment or an MTC.

“A person or entity having Direct Control” means any person or entity having direct control over the operations of a Marijuana Establishment, which satisfies one or more of the following criteria:

a) An Owner that possesses a financial interest in the form of equity of 10% or greater in a Marijuana Establishment;

b) A Person or Entity that possesses a voting interest of 10% or greater in a MarijuanaEstablishment or a right to veto significant events;

c) A Close Associate; – A Person who holds a relevant managerial, operational, or financial interest in the business of an applicant or Licensee and, by virtue of that interest or power, is able to exercise a significant influence over the corporate governance of a Marijuana Establishment, an MTC or Independent Testing Laboratory licensed under 935 CMR500.000.

d) A Person or Entity that has the right to control or authority, through contract or otherwise including, but not limited to:
1. To make decisions regarding operations and strategic planning, capital allocations, acquisitions, and divestments;
2. To appoint more than 50% of the directors or their equivalent;
3. To appoint or remove Corporate-level officers or their equivalent;
4. To make major marketing, production, and financial decisions;
5. To execute significant (in aggregate of $10,000 or greater) or exclusive contracts;or6.To earn 10% or more of the profits or collect more than 10% of the dividends.

e) A Court Appointee or assignee pursuant to an agreement for a general assignment or Assignment for the Benefit of Creditors; or

f) A Third-party Technology Platform Provider that possesses any financial interest in a Delivery Licensee including, but not limited to, a Delivery Agreement or other agreement for services.

“A person or entity having indirect control” is defined as any person or entity having indirect control over operations of a Marijuana Establishment. It specifically includes any Person or Entity Having Direct Control over an indirect holding or parent company of the applicant, and the chief executive officer and executive director of those companies, or any person or entity in a position indirectly to control the decision-making of a Marijuana Establishment.

Please consult an attorney if you have any questions regarding the legal requirements that apply. This guidance is not legal advice.