First two licenses granted for cannabis association in Malta

First two licenses granted for cannabis association in Malta

The Authority for Responsible Use of Cannabis (ARUC) in Malta has confirmed that it has issued the first two licenses to prospective cannabis associations. The licenses allow the associations to start building cultivation facilities, but do not allow cultivation to begin.

Associations can only begin growing cannabis after an operating license has been issued following additional inspections by ARUC. Leonid McKay, executive chairman of the Authority: “In principle, the license approves the proposed operating configuration. The operating license is granted when the associations have installed the cultivation facility and the ARUC confirms that it meets the requirements.”

Cannabis rules and penalties

The next step for licensed associations is to issue a registration number granting them legal personality. Under rules announced in March, clubs must keep a record of members’ personal information and must be ‘not-for-profit’ and pay their trustees at market rates set by the Voluntary Organizations Act.

Sales to minors or non-members are subject to fines of up to €10,000. Registration fees for cannabis clubs were reduced from the originally announced minimum annual fee of €8,750 to only €1,000 per year for small associations of up to 50 members. Associations with between 351 and 500 members pay an annual fee of €26,000. The law allows ARUC inspectors to conduct on-site inspections or audits. Associations that violate the rules may face sanctions ranging from warnings to revocation of their license.

Source: (EN)

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