As regulations for Maltese Cannabis Clubs were announced last month, Maltese authorities are accused of treating cannabis like plutonium, at the risk of delaying their arrival.
According to local reports collected by Business of Cannabis (BoC), the rules are too restrictive: overly restrictive testing policy, waste disposal and handling requirements, bureaucratic registration mechanisms and potential fines of up to 10,000 euros.
People wishing to create a cannabis risk reduction association on the Mediterranean island will also have to find several hundred thousand euros to achieve this.
A cost of up to 1 million euros
An island-based businessman specializing in cannabis told BoC: “The new rules for recreational use mean that at least €500,000 or even €1 million will have to be invested to make the association take off. »
“I know quite wealthy people who were going to buy properties to start an association, but after reading the rules and restrictions I find it ridiculous. »
“It’s all there: safe transport of products, separate sites for storage and distribution, and the fact of having only 500 grams at a time in the Club. »
” They [l’ARUC, l’autorité maltaise de régulation du cannabis] have made it really hard to do without a big capital. Many people who want to do this don’t have the money. And those who have the money say they won’t be able to get their money back for a long time. »
“CURA shot themselves in the foot. The barriers to entry are too high”.
Due to the strict rules, the sale price of cannabis grown by the association could reach 15 euros per gram, compared to 12 euros on the medical market and 8 euros on the illegal market.
No request received
In December 2021, Maltese President George Vella signed the law allowing adults to possess up to 7 grams, grow four plants at home and source cannabis from regulated clubs.
A few weeks later, he created the CURA, charged with drawing up a detailed plan for the implementation of these proposals.
These were released at the end of February this year, and those interested in setting up a Club were invited to apply for licenses. No request has been received to date according to BoC.
The rules have been criticized from all sides. For example, there are only two test machines on the island, which must record the levels of at least nine cannabinoids according to the regulations imposed on the Clubs.
One observer told Lovin Malta: “We were asked to test our cannabis at ten times the level of medical cannabis…if an NPO (non-profit organization) has eight strains, and the test costs 2,500 euros more, that’s thousands and thousands of dollars every month just to test the quality”.
Rules that are too restrictive
Transporting and disposing of waste also poses problems, as the rules are as strict as those applying to the transport of fuels, gas and fireworks.
The size of the Clubs can vary from 50 to 500 members. The annual registration fee is 1,500 euros for the smaller ones and 26,000 euros for the larger ones.
Cannabis Clubs will be required to contribute 5% of their annual revenue to a Harm Reduction Fund and 10% of their cumulative revenue to a Community Projects Fund, both managed by CURA.
People who sell cannabis to non-members or minors will be subject to a fine of up to 10,000 euros. Regardless of size, all associations must keep detailed records of each cannabis grow cycle and submit a quarterly report to CURA detailing membership numbers, cannabis sold and cash flow.
Associations must also maintain a register of members including all personal data.
Association founders must have lived in Malta for at least five years to establish an association and anyone convicted of serious crimes or drug offenses within the last ten years cannot establish an association or work for an association. association.
CURA inspectors will conduct site inspections or audits and violators will face a range of penalties including warnings, specific stop orders, fines, and even license revocation.
Cannabis Treated Like Plutonium
Fines range from €1,000 – for failing to submit a quarterly report or failing to maintain an adequate membership list – to €10,000 for more serious offences, such as selling unlabeled or mislabeled cannabis. packed up.
ReLeaf Malta, an NGO that has been at the forefront of cannabis regulation in the country, believes that the new regulations will exclude the local cannabis community.
Andrew Bonello, Chairman of ReLeaf Malta, told BoC: “As far as I know, there have been no requests so far. »
“These guidelines are not what the cannabis community would have liked. There is too much paperwork […] and the grassroots community is excluded from the process. »
“Permits are required for many things, including transportation from cultivation to the association and waste disposal. It seems like they treat cannabis like plutonium…that’s totally over the top. »
“All of these guidelines are what the illicit market doesn’t have, so how is the price in the regulated market going to match the price in the illicit market?” It looks like the goals will be very difficult to achieve.”
He said ReLeaf Malta had been pushing for a community-based approach where members band together to support the organization on a not-for-profit basis, which would not require outside investment.
He estimated that the minimum cost of the proposed scheme would be well over €100,000, which is beyond the reach of these grassroots organisations.
However, he added that it could very well open the door to those who have compliance teams in existing businesses such as entertainment or other psychoactive businesses such as alcohol or tobacco. »
