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Thursday, April 7, 2016

Mexico Marijuana Debate: Congress Considers Law to Legalize and Regulate Marijuana

AnimalPolítico: Tania L. Montalvo*

A General Law for Control of Cannabis to be presented Thursday [4/7/2016] in the full Senate proposes that adults may have up to six cannabis plants in their homes for personal consumption. A legal marijuana market would be created, over which federal government agencies would have absolute control of production and distribution activities.

The legislation establishes the legal basis for the issuing of licenses for planting, growing and preparing cannabis both for personal use and for therapeutic and medical purposes and for opening retail sales sites.

Two agencies with absolute control of the marijuana market would be established:
  1. The Mexican Institute of Cannabis (IMCANN) would be the regulatory body responsible for issuing licenses for growing, processing and storing cannabis. It would also authorize retail outlets.
  2. CANNAMEX would be the sole authorized agent for purchasing cannabis from licensed producers. And it would also have the authority to sell [cannabis] both to franchises authorized (by the IMCANN) which, in turn, could sell cannabis for therapeutic or personal purposes and to the pharmaceutical industry for manufacture of medicines.
Through these two agencies the State would retain full control of the production and marketing chain. IMCANN would also monitor product quality—testing for contaminants and heavy metals—and determine the type of packaging and security measures under which cannabis can be marketed.

IMCANN would issue rules on the quantity of cannabis that each person or company can grow, limit the number of licenses issued by a state or municipality, the number of franchises allowed and the type of cannabis products that can be produced. It would also be authorized to set the price for CANNAMEX to buy marijuana from growers and sell to retail outlets and the pharmaceutical sector.

The General Law for Control of Cannabis also proposes the creation of marijuana cooperatives and cannabis clubs. These will have to be registered as non-profit civil associations with a minimum of two and a maximum of 80 members. As cooperatives, their production would be limited to their own demandup to six plants per member—and if they were to sell surplus production, they would have to sell it to CANNAMEX. The groups cannot advertise and members must provide services of information and advice regarding reducing the risks and harm from drug use.

The initiative prohibits sales to minors, advertising and consumption in public spaces, including public service vehicles, whether by individuals or groups. Other prohibited activities include marketing, distributing, donating, gifting, selling or supplying marijuana to minors; or employing minors in activities related to the cannabis market.

Finally, the initiative establishes taxes; hence, it is proposed to amend the Law on Special Tax for Production and Services (IEPS). The proposed tax on a package for personal use is 15%. For therapeutic products it is 5%, but $1.00 peso more will also be paid per grade of cannabis. Spanish original 
Original article: Link to YouTube video (2:15 min; Spanish no subtitles) prepared by Mexico United Against Crime to explain the law. Link also to complete text of draft legislation in Spanish.
*Twitter: @tanlmont