How will cannabis associations work in Malta?

A Authority for the Responsible Use of Cannabis (ARUC), the Maltese entity with responsibility for regulating the legal and recreational cannabis industry in the country, organized a convention, on the 27th of January, with the various stakeholders and actors in the industry to announce the legalization rules. With the theme “Setting the Standards – The regulatory framework of Non-Profit Organisations”, the entity presented several details about how the market will work. 

“This reform is helping to create a more just and humane society”, said parliamentary secretary Rebecca Buttigieg during the conference. The first major announcement revealed, already before the event, was that the official opening of registrations for non-profit organizations would be from February 28, 2023. However, it was during the event on the 27th that interested parties obtained more information about the procedures to enter this green wave.

How will associations work?

Entities eligible to enter this process will only be those constituted in the form of non-profit associations and can only commercialize the results of their own productions. It is not yet clear whether associations will be able to import their seeds or what the requirements are in relation to them.

Cannabis sold legally in Malta must be grown in the country and associations must comply with the following requirements:

• Minimum of two founders (founders must reside in Malta for at least 5 years)
• Minimum of three board members (members must reside in Malta for at least 5 years)
• Cannot have more than 500 members (over 18 and residents of Malta)
• The Licensing model announced by the Authority is based on progressive pricing based on the number of members which are categorized as follows:
  • 50 members
  • 51 – 100 members
  • 101 – 250 members
  • 251 – 350 members
  • 351 – 500 members
• The location of the association cannot be less than 250 meters from an educational establishment

According to TimesofMalta, associations must have a place for production, and another for carrying out associative activities. Applicants must pay a fixed application fee of €1.000 plus the variable license fee, which for 50 members is €8.750.

All income must be reinvested in the organization or in salaries and associations must also contribute a portion of their sales to a harm reduction fund. Associations can carry out cultivation in any location that complies with regulations and planning, but the plants must not be visible to the public and passers-by.

Cannabis packages intended for sale must include a label discouraging the use of cannabis as well as details of the flowers contained in the package.

ARUC is the entity responsible for issuing the license, and is also responsible for compliance and quality control. After issuing a one-year provisional license, the authority will look into the association's finances, ensure associations' compliance with regulations, and will also be the one to test samples for mould, microorganisms and synthetic elements. Testing must take place before a batch is distributed and also after its sale.

Operating licenses can be revoked or suspended by the ARUC, being extended after the first year for a three-year license.

What are the rules for consumers?

Anyone over the age of 18 can join only one association. However, there is a cap on the THC level for consumers under 21. The authority is still discussing the possibility for members of non-profit associations to consume cannabis within club premises.