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Author: Hazel Norman

New Medical Cannabis Industry Regulations Delayed In Spain

Back in June 2022 Spain’s Health and Consumption Commission of the Congress of Deputies approved an opinion of the Medical Cannabis Subcommittee which called for medical cannabis industry regulations.

Part of that approved opinion involved tasking the Spanish Agency for Medicines and Health Products (Aims) to come up with a regulatory plan within 6 months regarding how it would implement the recommendations of the approved opinion.

That six-month deadline expired in December 2022, and here we are in 2023 and it’s still unclear when the plan will be released. Per El Espanol (translated to English):

The agency dependent on the Ministry of Health coordinated by Carolina Darias had a period of 6 months to prepare a document with recommendations so that the regulations have legal requirements and are “viable”. The problem? That document has not arrived. And we are already in 2023.

This means that Health has not met the deadlines and that the great project of Podemos -which the PSOE later embraced- to make medical marijuana a reality before the May elections is complicated.

The government in Spain failing to meet a mandated, cannabis-based deadline is not entirely unique. In October 2018 Mexico’s Supreme Court rendered a decision that deemed cannabis prohibition to be unconstitutional, and tasked lawmakers with passing a legalization measure within a year.

Clearly, lawmakers in Mexico did not meet that original deadline, and have also failed in meeting subsequent deadlines. What is going on in Spain is not an apples to apples comparison to what is going on in Mexico, however, it does highlight that when deadlines are not met it leaves cannabis advocates inside and outside of government scrambling to try to find ways to move the needle in the country where delays are occurring.

We will make sure to continue to keep a very close eye and to monitor the situation in Spain for signs of movement.

Will Costa Rica Become A Top Cannabis Tourism Destination?

Cannabis tourism is not a new thing, however, the size of that particular sector of the emerging international cannabis industry has historically been limited. Obviously, that is due in large part to prohibition laws around the globe.

For many years Amsterdam was the undeniable leader when it came to international cannabis tourism, with a handful of other notable cities such as Barcelona and Vancouver (Canada) also serving as top destinations for cannabis enthusiasts.

As cannabis reform continues to spread across the globe, and with it, the legal cannabis industry, lawmakers in some countries are seeming to envision their regions also serving as top international cannabis tourism destinations, with the latest example of that being in Costa Rica. Per The Q Media (translated to English):

The bill to legalize the use of recreational marijuana in Costa Rica authorizes the Instituto Costarricense de Turismo (ICT) – Costa Rican Tourism Board –  to promote the country as a destination for responsible consumption.

This is established in article 52 of initiative 23,383 that is being analyzed by the legislative commission on the environment (Comisión de Ambiente del Congreso).

Specifically, it indicates:

“The Instituto Costarricense de Turismo should establish information campaigns at the international level to promote Costa Rica as a tourist destination for the responsible consumption of cannabis for recreational use.”

The bill itself is far from guaranteed to pass, so the language pertaining to boosting cannabis tourism needs to be taken with a grain of salt. Cannabis advocates inside and outside of Costa Rica are clearly rooting for legalization to be adopted in Costa Rica, however, as with all things political, no one should count any eggs before they hatch.

According to World Data, “Costa Rica recorded a total of one million tourists in 2020, ranking 90th in the world in absolute terms.” With that in mind, any and all additional tourism that cannabis legalization can generate for Costa Rica will surely be appreciated.

Medical Cannabis Products Now Covered By Government-Funded Health Insurance In Colombia

In 2022 Colombia’s Health Ministry approved the expansion of health insurance coverage of certain medical procedures and medications, including expansion to cover some medical cannabis products. The effective date for the expanded coverage was January 1, 2023.

While it never seemed to be in doubt that the medical cannabis insurance coverage would ultimately take effect, it was reassuring to see that the new coverage was indeed implemented, with reassurances provided by the Health Ministry.

News of the reassurances came via a press release from Khiron Life Sciences Corp late this week. Below are excerpts from the press release:

Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), announces that the new Colombian Government has included plant-based medical cannabis products (i.e., Khiron products) in the list of mandatory insurance-covered medications starting January 1st, 2023, as well as the signing of a first-of-its-kind medical cannabis contract with one of Colombia´s largest insurance companies based in the city of Bogota.

Resolution 2808 of 2022 was signed by the Ministry of Health on December 30, 2022. This revision was necessary to remove unintended ambiguities that had arisen whether plant-based magistral preparations from medical cannabis (i.e., Khiron products) were also included in the insurance coverage. This is now once and for all clearly confirmed. The new government is fully committed with the use of medical cannabis as a covered treatment under the Colombian health system.

The Government used this iteration to also validate medical conditions where they find moderate to strong evidence that cannabis is an effective treatment. These medical conditions evaluated by the IETS (Technical Institute of the health Sector) include chronic and neuropathic pain, oncology pain, sleep disorders, epilepsy, and fibromyalgia, which represent the primary conditions treated with Khiron products.

During the first half of 2022, insurance-covered prescriptions represented more than 90% of the Company´s cannabis sales in Colombia. With a patient base of more than 25,000 patients, Khiron will immediately resume filling insurance-covered prescriptions through its Zerenia clinic network.

Alvaro Torres, CEO of Khiron, comments: “Today is a great day for patients in Colombia and Khiron. We welcome the decision from the new Colombian government to categorically mandate insurance coverage for our medical cannabis products. With this decision, Khiron will immediately tackle the backlog of covered medical cannabis products to our patients. In parallel, we have also secured a first-of-its-kind contractual relationship with one of Colombia´s largest government-owned insurance companies for medical cannabis specific healthcare services and dispensation. These two achievements, will allow us to revert to predictable recurring revenues, shorter collection periods and improved cashflow.”

France Lifts Ban On CBD Product Sales

Roughly one year ago, on December 30, 2021 the government in France issued a ban on the sales of CBD products. CBD products have increased in popularity and availability throughout Europe in recent years, including in France.

Due to ongoing cannabis stigma, some lawmakers and regulators have portrayed CBD as being harmful, and they seem to have dusted off a number of reefer madness talking points that used to be applied to cannabis in general and are now revamping them to be more narrowly focused on CBD.

That stigma and ongoing anti-cannabis rhetoric by opponents has led to CBD crackdowns in some parts of the world. France’s ban was effectively short lived, as the ban was initially put on hold in January 2022 and is now being lifted altogether. Per Le Parisien:

The good news is confirmed for CBD sellers. Temporarily suspended last January, the ban on the sale in the raw state of the flowers and leaves of certain varieties of cannabis is now officially lifted, according to a decision of the Council of State on Wednesday , which “cancels the decree of December 30 2021 prohibiting the sale of cannabis flowers and leaves with a THC (tetrahydrocannabinol) level of less than 0.3%”.

The institution “notes that CBD (cannabidiol), which has no psychotropic effect and does not cause addiction, cannot be considered a narcotic product”.

The Council of State “retains that it has not been established that the consumption of the flowers and leaves of these varieties of cannabis with a low level of THC would involve risks for public health. It therefore considers illegal the general and absolute prohibition of their marketing”.

Another example of a looming CBD crackdown can be found in Hong Kong where a complete CBD ban is going into effect in 2023. Unlike France, leaders in Hong Kong have made it clear that they will not be reversing course and that the ban will indeed go into effect and anyone caught violating the new ban will receive years in prison.

France’s lifting of the previous CBD ban is certainly welcomed news, however, the European nation still has a long way to go when it comes to improving cannabis policy. Cannabis consumption is very popular in France, and cannabis prohibition is a failed public policy. It’s beyond time that France got completely on the right side of history when it comes to cannabis laws.

German Lawmakers Block Health Ministry Funding And Demand Legalization Measure

As 2022 draws to a close and cannabis observers start to look ahead to 2023, Germany will continue to be the focal point of most people’s attention. Germany’s Health Minister Karl Lauterbach is currently lobbying the European Union for its approval of the general legalization plan that he presented to the federal cabinet back in October.

Various theories are swirling as to why European Union sign off is being sought prior to the introduction of a measure in Germany, with the leading theory seeming to be that approval would mitigate challenges from EU member nations seeking to prevent the spread of legalization.

A group of lawmakers in Germany is growing impatient with the delays related to the introduction of legalization, demanding that a measure be introduced immediately. They even recently followed through with a threat to withhold some of the Health Ministry’s funding due to the delay. Per RND:

It was an unusual process: During the budget deliberations for 2022, the budget politicians of the traffic light coalition put Health Minister Karl Lauterbach (SPD) under heavy pressure: they decided to block an amount of one million euros for the ministry’s public relations work until Lauterbach presents a draft law for the legalization of cannabis agreed in the coalition agreement. The reason for this approach: the coalition partners had the impression that Lauterbach did not actually want the release and was therefore trying to delay the project.

Lauterbach actually thought he was on the right track, because at the end of October he presented very detailed key points for legalization. They stipulate that the acquisition and possession of up to 30 grams of cannabis should be exempt from punishment in the future. However, a concrete draft law is still missing.

There appears to be rumblings out of Germany that the components of the general legalization plan presented to the federal cabinet in October are not firm, and that it’s possible that some components could get watered down due to negative feedback from the EU during discussions.

Hopefully, a measure is officially introduced soon in Germany and the parameters are favorable, regardless of if there is EU sign off or not. It is unclear what will happen if/when EU approval is not granted.

Minister Lauterbach has previously indicated that he will not pursue legalization without prior EU approval, however, if it keeps resulting in lost funding perhaps it could change his tune. Meanwhile, we will all continue to wait and watch for any signs of movement.

Is Luxembourg Abandoning Its Previous Legalization Plans?

Luxembourg was once thought to have the best chance of passing Europe’s first nationwide adult-use cannabis legalization measure. Of course, that ‘historic first’ never materialized in Luxembourg and the actual first country to pass such a measure was eventually Malta, which did so near the end of 2021.

Even though Luxembourg failed to become the first to pass a legalization measure, there was still quite a bit of hope that legalization would still become a reality in the European nation in the near future. Unfortunately, the chances of legalization happening any time soon in Luxembourg seem to be getting worse with every passing month.

Earlier this month we reported on grievances aired by the general prosecutors office, which cited concerns about ‘contradictions, unequal treatment, lack of clarity, oversights, serious error of logic or even the door wide open to abuse.’

While it is not shocking to see political delay tactics and reefer madness rhetoric being incorporated by cannabis opponents, it is disheartening to a degree to see supporters of cannabis reform changing their tones and the type of wording they use to describe the current effort in Luxembourg. Per RTL Today (translated to English):

Minister of Justice Sam Tanson once again defended the government’s decision to regulate recreational cannabis consumption, pointing out that this was already included in the governing coalition’s programme before the last national elections in 2018.

The initial plan of the coalition between the Democratic Party (DP), the Luxembourg Socialist Workers’ Party (LSAP), and the Green Party (déi Gréng) was to legalise cannabis.

However, Tanson explained that because the government does not want to allow cannabis consumption in public spaces, they now prefer to talk about “regulation” rather than “legalisation.” In addition, cannabis will be “decriminalised,” as residents will be permitted to carry up to 3 grammes of marijuana.

In addition to permitting possession of up to 3 grams, the current proposal being circulated in Luxembourg’s political circles would also permit the cultivation of up to four plants. For contextual purposes, Germany is considering legalizing possession of up to 30 grams of cannabis and the cultivation of up to three plants, and Malta currently permits the possession of up to 7 grams of cannabis and four plants.

Is Luxembourg Abandoning Its Previous Legalization Plans?

Luxembourg was once thought to have the best chance of passing Europe’s first nationwide adult-use cannabis legalization measure. Of course, that ‘historic first’ never materialized in Luxembourg and the actual first country to pass such a measure was eventually Malta, which did so near the end of 2021.

Even though Luxembourg failed to become the first to pass a legalization measure, there was still quite a bit of hope that legalization would still become a reality in the European nation in the near future. Unfortunately, the chances of legalization happening any time soon in Luxembourg seem to be getting worse with every passing month.

Earlier this month we reported on grievances aired by the general prosecutors office, which cited concerns about ‘contradictions, unequal treatment, lack of clarity, oversights, serious error of logic or even the door wide open to abuse.’

While it is not shocking to see political delay tactics and reefer madness rhetoric being incorporated by cannabis opponents, it is disheartening to a degree to see supporters of cannabis reform changing their tones and the type of wording they use to describe the current effort in Luxembourg. Per RTL Today (translated to English):

Minister of Justice Sam Tanson once again defended the government’s decision to regulate recreational cannabis consumption, pointing out that this was already included in the governing coalition’s programme before the last national elections in 2018.

The initial plan of the coalition between the Democratic Party (DP), the Luxembourg Socialist Workers’ Party (LSAP), and the Green Party (déi Gréng) was to legalise cannabis.

However, Tanson explained that because the government does not want to allow cannabis consumption in public spaces, they now prefer to talk about “regulation” rather than “legalisation.” In addition, cannabis will be “decriminalised,” as residents will be permitted to carry up to 3 grammes of marijuana.

In addition to permitting possession of up to 3 grams, the current proposal being circulated in Luxembourg’s political circles would also permit the cultivation of up to four plants. For contextual purposes, Germany is considering legalizing possession of up to 30 grams of cannabis and the cultivation of up to three plants, and Malta currently permits the possession of up to 7 grams of cannabis and four plants.

Bavaria’s Health Minister Increases Efforts To Try To Prevent German Legalization

Earlier this month we reported that Germany’s Health Minister Karl Lauterbach (SPD) was seeking an ‘expert opinion’ to help with his European Union legalization lobbying push. Minister Lauterbach mentioned as part of his formal presentation to the federal cabinet in Germany back in October that prior to formally introducing a legalization measure he would seek the European Union’s approval to proceed.

At first it seemed to be a bit unclear as to why exactly an expert opinion would be incorporated into the lobbying effort, however, this week Bavaria’s Health Minister Klaus Holetschek (CSU) announced that he too would be seeking an expert opinion as part of his opposition push, which doesn’t seem like a coincidence. Minister Holetschek has emerged as the leading domestic voice against the Traffic Light Coalition’s legalization plan.

In his latest attempt to try to derail the legalization effort Minister Holetschek will commission an expert opinion from the University of Erlangen-Nuremberg. Per Nordbayern:

Bavaria’s Health Minister Klaus Holetschek (CSU) wants to have the federal government’s plans for cannabis legalization examined with a legal opinion. “Despite major health risks and legal concerns, the traffic light coalition has so far stuck to its plans. That’s why I commissioned a legal opinion to clarify the international and European legal limits of cannabis legalization in Germany,” said Holetschek. His goal is to objectify the debate.

Bernhard Wegener, Chair of Public Law and European Law at the University of Erlangen-Nuremberg, has been commissioned to draft the report. The report should be available by the end of February 2023.

Minister Holetschek may be the leading voice against legalization, however, he is not the only one to speak out against current German reform efforts. North Rhine-Westphalian Minister of the Interior, Herbert Reul, has also spoken out against legalization in recent days.

In an interview this week with Frankfurter Allgemeine, Minister Reul described the Traffic Light Coalition’s adult-use legalization plan as being “insane” and stated in the interview, “I dread legalization.” Comments were translated from German to English.

What is not being talked about among cannabis opponents in Germany, at least not in good faith, is the harms of cannabis prohibition. Cannabis prohibition is exponentially more harmful than any ‘social costs’ related to legalization. Canada and Uruguay are proving that in real time, and soon Malta likely will as well.

Saskatchewan Government Files First Nations Cannabis Authority Legislation

The emerging cannabis industry has the potential to transform communities and boost opportunities for those that live where cannabis commerce is permitted. A report from earlier this year by Deloitte highlighted just how much the legal cannabis industry has helped communities in Canada.

One of the major takeaways from the analysis is that the legal cannabis industry in Canada had created roughly 151,000 jobs as of the report’s publishing. In addition to generating new jobs across the country, the emerging legal cannabis industry was responsible for generating over $15 billion since legal adult-use sales launched in late 2018.

The overall economic boost from Canada’s legalized industry is substantial. Deloitte estimated that the legal cannabis industry in Canada had contributed over $43.5 billion to the nation’s GDP since the start of legalization as of February. Cannabis companies have directly invested roughly $4.4 billion into Canada’s economy, with the remaining boost to GDP coming from “indirect” economic contributions, and “induced” contributions according to Deloitte.

First Nations in Canada are progressively getting more involved in the emerging cannabis industry, and in Saskatchewan specifically, lawmakers are pushing for First Nations to be able to self-govern and self-regulate the cannabis industry on-reserve. Below is more information about it via a news release form the government of Saskatchewan:

Today, the Government of Saskatchewan introduced two pieces of legislation that lay the groundwork for increased First Nations self-governance.

The Summary Offences Procedure Amendment Act, 2022 will provide a legal framework that First Nations communities can use to enforce laws and bylaws on reserve.

“The Government of Saskatchewan is proud to take this important step as part of our ongoing work with the Muskoday and Whitecap Dakota First Nations,” Justice Minister and Attorney General Bronwyn Eyre said. “These amendments will allow these and other First Nations communities in the future to use the more simplified summary offences procedure, instead of the long-form process under the federal Criminal Code, to issue tickets and fines such as those issued for traffic violations and other provincial offences.”

These amendments follow a Memorandum of Understanding that was signed by the Government of Saskatchewan, Muskoday First Nation and Whitecap Dakota First Nation on October 18, 2019, to address longstanding issues around the enforcement of First Nations’ laws.

“First Nations assert their jurisdiction and maintain community safety by creating laws under the Indian Act, land codes, and other federal legislation but there have been difficulties in enforcing these laws in the courts,” Chief of Whitecap Dakota First Nation Darcy Bear said. “Through our work with the provincial government, the amendments to SOPA will give us access to prosecution and enforcement tools that will give force to our laws in areas such as environmental protection and community safety; and strengthen the place of our laws alongside federal and provincial law.”

The Cannabis Control (Saskatchewan) Amendment Act, 2022 establishes the provincial legal framework for First Nations to license and regulate the distribution and retailing of cannabis on-reserve.

“Our government supports First Nations exercising their authority over on-reserve distribution and retailing of cannabis through a legal framework with SLGA,” Minister Responsible for SLGA Lori Carr said. “This change further fosters reconciliation by ensuring First Nation-owned businesses are able to fully participate in the economic opportunities presented by the retail cannabis industry.”

The proposed amendments provide First Nations the opportunity to create their own First Nations regulatory framework consistent with federal and provincial legislation to establish a local cannabis authority. Once established, stores regulated by First Nations will have access to federally regulated cannabis products.

These amendments will also require all Saskatchewan cannabis retailers to only ask for proof of age when a purchaser appears to be under the age of 25. Currently, retailers are required to ask for proof of age from all purchasers.