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Will Germany’s Current Legalization Measure Evolve?

Written by Johnny Green on . Posted in Policy.

Earlier this month Germany’s federal cabinet approved a long-awaited cannabis legalization measure that was largely led by Health Minister Karl Lauterbach. The measure in its current form would, among other things, legalize the personal cultivation, possession, and consumption of cannabis for adult-use purposes.

The announcement of the measure’s updated provisions, which occurred several months ago, was received with mixed reactions from Germany’s cannabis community, as well as by cannabis community members abroad. Everyone seems to agree that the measure is better than outright prohibition, however, some of the provisions are better than others, as captured in a recent press release from the German Hemp Association:

The German Hemp Association welcomes the cabinet draft as a milestone on the way to reforming cannabis policy in Germany. With the debate now starting in the Bundestag, the passage of the law is within reach. Hundreds of thousands of consumers have been the subject of criminal proceedings for consumption-related offenses in recent decades. This senseless repression could come to an end at the turn of the year.

The DHV hopes that the participation of the MPs will bring a breath of fresh air to the discussion about the details. Because since the draft bill, no major improvements are discernible. All of the main criticisms of the DHV are still relevant:

  • The ban on consumption in cannabis cultivation clubs is unrealistic.
  • The distance regulation will make it unreasonably difficult for clubs to find suitable locations.
  • The distance regulations for consumption cannot be observed. They violate the principle of certainty of the Basic Law. Neither consumers nor the police can know exactly where consumption is permitted and where it is not.
  • The threat of penalties and fines for small violations of the already arbitrary limits is completely exaggerated. Possession of 25 grams is perfectly legal, possession of 26 grams carries a prison sentence of up to three years. A fine of up to 100,000 euros can be imposed for consumption within a distance of 199 meters from a school.
  • A total of three plants for home cultivation is not enough. An upper limit of 25 grams is unrealistic for the storage of home-grown cannabis in your own home.

The DHV is confident that these and many other problems will now be addressed in detail in the parliamentary process. However, the current plans cannot remain the same. A large-scale suppression of the black market is only possible with the nationwide introduction of cannabis specialty shops for adults.

“Today is a good day, above all, because Parliament now has sovereignty over further decisions and no longer Karl Lauterbach,” said DHV spokesman Georg Wurth.

It does appear that changes to the measure will at least be attempted by domestic lawmakers in Germany now that the process has transitioned over to the Bundestag, as reflected in a recent social media post by Bundestag member Kristine Lütke (FDP):

It’s a safe bet that changes are on the way. It’s not a question of ‘if,’ but rather ‘what?’ Will the changes amount to minor tweaks, or will they be a fairly substantial overhaul of major components of the measure, such as those listed in the DHV’s recent press release? Will attempts to change the measure derail the process? Only time will tell.

The domestic political process is not occurring in a vacuum. All the while the European Union and various treaties loom over the process, and needless to say, it will be interesting to see what the EU’s reaction is to any changes made during the domestic political process.

It’s also worth noting that the current measure being considered does not encapsulate everything involved with Germany’s cannabis policy modernization effort. It’s merely the first of what will ultimately prove to be three phases of the effort.

This first one involves components related to personal freedoms and noncommercial cannabis clubs, which is what is being considered now. Phase two will involve the launch of regional commerce pilot programs, and that will require a separate measure. Lastly, and this third phase is currently out of the scope of Minister Lauterbach’s plan, is the launch of nationwide sales.

Given how long the first phase is taking, cannabis observers inside and outside of Germany should be ready for a lengthy process. ‘Rome wasn’t built in a day’ as the saying goes, and the same is true for modernizing the cannabis policies of Europe’s largest economy.

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The Global Significance Of German Cannabis Policy Modernization

Written by Johnny Green on . Posted in Policy.

Earlier today members of Germany’s government announced that the nation’s federal cabinet had approved a draft cannabis legalization measure that would serve as the first phase of an ongoing cannabis policy modernization effort largely led by Germany’s Health Minster Karl Lauterbach. The measure now heads to the Bundestag for consideration by members of the legislative body.

The proposal, as it currently stands and subject to further potential changes, would allow adults to legally cultivate, possess, and consume cannabis for personal use in Germany. The measure would also create noncommercial clubs that would provide cannabis to members. Purchasing limits would be involved, as would ‘buffer zones,’ limits on the number of clubs per jurisdiction, and a limit of 500 members per club. Minister Lauterbach made an appearance later in the day, during which he defended his measure:

The German Hemp Association stated the following regarding today’s federal cabinet approval and the transition of the process over to the Bundestag:

The German Hemp Association welcomes the cabinet draft as a milestone on the way to reforming cannabis policy in Germany. With the debate now starting in the Bundestag, the passage of the law is within reach. Hundreds of thousands of consumers have been the subject of criminal proceedings for consumption-related offenses in recent decades. This senseless repression could come to an end at the turn of the year.

The DHV hopes that the participation of the MPs will bring a breath of fresh air to the discussion about the details. Because since the draft bill, no major improvements are discernible. All of the main criticisms of the DHV are still relevant:

  • The ban on consumption in cannabis cultivation clubs is unrealistic.
  • The distance regulation will make it unreasonably difficult for clubs to find suitable locations.
  • The distance regulations for consumption cannot be observed. They violate the principle of certainty of the Basic Law. Neither consumers nor the police can know exactly where consumption is permitted and where it is not.
  • The threat of penalties and fines for small violations of the already arbitrary limits is completely exaggerated. Possession of 25 grams is perfectly legal, possession of 26 grams carries a prison sentence of up to three years. A fine of up to 100,000 euros can be imposed for consumption within a distance of 199 meters from a school.
  • A total of three plants for home cultivation is not enough. An upper limit of 25 grams is unrealistic for the storage of home-grown cannabis in your own home.

The DHV is confident that these and many other problems will now be addressed in detail in the parliamentary process. However, the current plans cannot remain the same. A large-scale suppression of the black market is only possible with the nationwide introduction of cannabis specialty shops for adults.

“Today is a good day, above all, because Parliament now has sovereignty over further decisions and no longer Karl Lauterbach,” said DHV spokesman Georg Wurth.

The second phase of Germany’s current cannabis policy modernization effort, if it succeeds in making it through the political labyrinth, will involve the launch of regional cannabis pilot projects. Germany’s pilot projects will be generally similar in principle, but likely not in size and scope, to the pilot projects currently operating in Switzerland.

Due in large part to limitations at the EU level, Germany’s current policy modernization effort does not involve the legalization of large-scale cultivation and national sales. However, that is not to say that those components will never be passed and implemented.

Today’s approval by the federal cabinet is one of the many steps along the way. It’s a significant one to be sure, although, it needs to be seen as a milestone, and not a final destination. Now that the process for approving the phase one bill has been turned over to domestic lawmakers, it will be interesting to see what evolutions the political process may yield.

It’s vital for cannabis observers to consistently keep Germany’s legalization efforts in the proper global context. Germany is trying to modernize its cannabis policies and stand up an adult-use cannabis industry for its population of over 83 million people. By comparison, the combined population of all four current legal nations (Uruguay, Canada, Malta, and Luxembourg) is only roughly half that of Germany’s population.

Furthermore, Germany shares more borders with other countries than any other nation in Europe, and all of those countries currently prohibit adult use. It’s logical that Germany’s cannabis policy modernization effort is taking longer given how ‘heavy the lift is,’ and that is also why German legalization will prove to be more significant than its predecessors. Germany is ushering in the modern cannabis policy era.

Criticisms for larger reform are absolutely valid, but the fight is also not over. A recent study by the Düsseldorf Institute for Competition Economics found that comprehensive legalization in Germany would net the country 4.7 billion euros per year via cannabis taxes, fees, and savings from no longer enforcing failed cannabis prohibition. That is significant, and clearly worth fighting for, in addition to fighting to prevent lives from being needlessly ruined by draconian public policies.

German Health Minister Karl Lauterbach is currently headed to India for a meeting of G-20 health ministers. Given that he just held a press conference today and made international headlines, again, it’s a safe bet that cannabis will be a popular topic of discussion between Minister Lauterbach and his peers.

While it’s unclear how many will be sympathetic to Germany’s efforts, one has to assume that at least some of Minster Lauterbach’s peers will be curious and want to learn more about the topic, and that is a good thing. As a long-time cannabis activist friend used to say in regard to cannabis reform, “If we are talking, we are winning,” and Germany has the whole world talking right now.

When legalization inevitably becomes a reality in Germany, and it inevitably succeeds, other nations are going to surely follow suit and that will, in turn, result in cannabis policies being modernized on a much larger scale globally than they are right now. The legalization process in Germany has been frustrating up until this point to be sure, however, today is a big milestone that is worth celebrating, both within Germany’s borders, and beyond.

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Cannabis Policy Reform History Made In Australia

Written by Hazel Norman on . Posted in Policy.

Australian cannabis reform efforts reached a historic milestone this week with Greens Senator David Shoebridge introducing the Legalising Cannabis Bill 2023. The measure would permit the “adult recreational use of cannabis across the country.”

Senator Shoebridge’s legalization measure marks the first time that a bill has ever been introduced to Australia’s Federal Parliament that would, if approved by both chambers, legalize adult-use home cultivation and commerce across the nation.

“With just a sprinkling of political courage and collaboration mixed with a truckload of common sense we can make this law and end the war on cannabis.” Greens Senator and Justice Spokesperson Senator Shoebridge stated about the measure in a press release.

“It’s time to stop pretending that consumption of this plant, consumed each year by literally millions of Australians, should still be seen as a crime. Everyone knows that it is not a matter of if we legalise cannabis in Australia, it’s a matter of when, and today we’re taking a huge step forward. The Greens are here to get this done, and we’ll be working hard to get the numbers to make this law.” Senator Shoebridge also stated.

“It’s time to seize the many opportunities that legalisation poses. This includes the $28 billion in public revenue that legalisation can bring in in the first 9 years of operation. This is the chance for tens of thousands of quality green jobs, new small businesses, enriched regional economies and the boon for tourism that will come with establishing a totally new legal industry.” Senator Shoebridge added.

“It is the opportunity to regulate the quality, strength and safety of a product that millions of Australians are already using, and it’s the chance to radically reduce harm, by stopping 80,000 Australians a year from being caught up in the criminal justice system for possession of cannabis. Using the collective wisdom of thousands of contributors who shared their knowledge and experience with us, we are introducing a solidly founded bill that maps out the way to legalise cannabis across Australia.” Senator Shoebridge concluded.

The formal introduction of the measure comes on the heels of the Greens announcing “unprecedented engagement” for a public survey the party conducted focused on the legalization measure.

“A total of 8,916 individual responses on our survey were received and we received 38 detailed submissions in response to our consultation paper. This is in addition to thousands of calls, social media messages and real life conversations.” the Greens stated in a press release about the survey.

“The results show an extremely strong level of support for legalising cannabis with a single national cannabis market that allows for home grow and prioritises co-ops and small business involvement. Respondents told us they don’t want an overly corporatised scheme and how it is important to ensure any tax rate doesn’t force up prices and drive people back into the illicit market.” the press release also stated.

Below are “improvements” made to the bill during the public consultation process:

  • Quality and labelling to set out labelling requirements for cannabis and cannabis products including safety and dosage information, strength and chemical composition
  • Penalties – we will amend the bill to provide a clear requirement for serious or repeated breaches of licence conditions to result in serious consequences for the licence holder – not just employees.
  • Home grow and production – we will amend the bill to explicitly allow people to make products like brownies or gummies at home for personal use, we will also explicitly require that grow at home cannabis not be accessible to the public.
  • Young people – we’ll add a new requirement to store cannabis where it’s not readily available to minors and give the regulator the capacity to impose other safe storage if needed like child safe containers for edibles for example.
  • Advertising – we will make clear that the ban on advertising won’t stop cafes and dispensaries from point of sale advertising or having an authorised online presence.

“Using the collective wisdom of almost ten thousand respondents we know the Greens will be tabling the most popular and effective bill possible to legalise cannabis for the whole country. We have made improvements around labelling, storage, manufacture, advertising, penalties and more as a result of this consultation process.” Greens Senator David Shoebridge stated about the consultation.

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Regulatory Changes In Israel Will Expand Patients’ Medical Cannabis Access

Written by Hazel Norman on . Posted in Policy.

Israel is home to arguably the best cannabis research community on earth, serving as the longtime base for legendary cannabis researcher (and International Cannabis Business Conference alumni) Raphael Mechoulam.

Mechoulam first isolated tetrahydrocannabinol (THC) while conducting his research in Israel in the mid-1960s, and the nation’s scientists built on that research ever since. Unfortunately, Israel’s medical cannabis policies have not always kept up with the nation’s research.

Thankfully, new regulatory changes should help improve the level of safe access for suffering patients in Israel. Below is more information about it via a news release from NORML:

Jerusalem, Israel: Regulators are further easing restrictions on patients’ access to medical cannabis products.

Regulatory reforms approved by the Ministry of Health will allow physicians to prescribe cannabis to patients as a first-line treatment rather than as an option of last resort. (Under current law, doctors must attest that their patients have been unresponsive to other conventional treatments, including opioids, prior to granting them access to medical cannabis products.)

About 100,000 Israelis are currently authorized to use medical cannabis.

Another regulatory change eases legal restrictions on patients’ access to hemp-derived CBD products.

Regulators are also seeking to further facilitate clinical trial research involving cannabis products.

The regulatory changes are anticipated to go into effect this December.

Global Investment Forum Berlin 2023 Jim Belushi

One Global Cannabis Industry: Who Will Be The Winners And Losers?

Written by Hazel Norman on . Posted in Business, Policy.

The global cannabis industry is still emerging. The commodity cannabis is becoming more and more relevant for conventional industries, from food and health care via fashion to luxury niche segments. With adult-use reform coming across several nations, the opportunity for other industries in those countries has been unlocked. The biggest question today is: where are global cannabis sectors going and where will the best investments be? Panelists recently discussed this at the International Cannabis Business Conference’s Global Investment Forum in Berlin, as seen in the embedded video below. Panelists include:

  • David Traylor – Senior Managing Director, Golden Eagle Partners
  • Oliver Lamb – Co-Founder and Investment Manager, Óskare Capital
  • Trenton Birch – Co-Founder and CEO, Cheeba Africa
  • Bret Worley – CEO and President, MC Global Holdings

This panel also includes a guest appearance by legendary entertainer Jim Belushi. We look forward to seeing you in Berlin in 2024, as well as at our upcoming science and technology event in Slovenia this September!

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UK Court Of Appeal: Low-THC Hemp Flower Is Not A ‘Narcotic Drug’

Written by Hazel Norman on . Posted in Policy.

For many years, hemp flower was largely considered to be an undesirable commodity to cannabis consumers. The hemp plant was almost always associated with paper, rope, and various textiles, and not something that cannabis consumers actually combusted and inhaled.

However, that has changed in recent years. Hemp flower that is low in THC, often referred to as ‘floral hemp,’ is a hot item in many markets these days due to various reasons. While it will never completely supplant cannabis products that are high in THC, low-THC floral hemp is legal in far more jurisdictions right now compared to high-THC products, and the increased access is something that many consumers are taking advantage of.

The floral hemp sector of the emerging cannabis industry is still very young, and it is causing legal headaches for entrepreneurs and investors that have to navigate laws, rules, and regulations that are either shifting, incomplete, or entirely nonexistent.

One jurisdiction that has struggled is the United Kingdom where low-THC cannabis products are widely available, yet, not necessarily legal according to some authorities. The UK Court of Appeal recently ruled that some low-THC products are not a ‘narcotic drug’ which is a designation that should help clear up some of the confusion. Per Cannabis Health News:

A ‘landmark’ Court of Appeal ruling in the UK has set a new legal precedent for businesses in the UK importing and selling CBD or low-THC hemp flower.

Crucially, the Court of Appeal has made it clear that it does not consider hemp flower with a THC content below 0.2% as ‘a narcotic drug’.

The case stemmed from the arrest of the owners of UK-based CBD retailer Uncle Herb, with the owners being charged with ‘violating the Misuse of Drugs Act.’ The owners were able to successfully argue that under EU law floral hemp products with less than .2% THC are not a narcotic and that EU law superseded UK law.

It’s ironic that EU law has hindered so many domestic THC policy modernization efforts in recent years, just to simultaneously be used to advance low-THC policy in the UK. It will be interesting to see if the same legal strategy is used in other European countries that have historically dragged their feet on low-THC reform.

This case out of the UK serves as yet another reminder that cannabis policies are harmful, outdated, and often contradictory throughout the European continent and that an EU-wide overhaul of cannabis policies is well overdue.

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Policymaker Points To Schengen Agreement As Major Hurdle For European Cannabis Reform

Written by Johnny Green on . Posted in Policy.

In the mid-1980s a big effort was waged in Europe to promote ‘free movement’ to help the continent’s working population by increasing the places where people could feasibly carve out a viable living. Free movement involves lowering controls at borders for residents of participating jurisdictions.

The concept of free movement reached a big milestone in 1985 with the initial signing of the Schengen Agreement (named after a small village in Luxembourg). Belgium, Germany, France, Luxembourg, and the Netherlands were the original signers, agreeing to gradually remove controls at their internal borders and to ‘introduce freedom of movement for all nationals of the signatory countries.’

The implementation of the Schengen Agreement officially began in 1995 and initially involved just seven EU countries. However, it has since expanded to most EU countries, with the exception of Bulgaria, Cyprus, Ireland, and Romania. By many measures, the free movement effort has yielded several positives for the European continent.

Unfortunately, it may also be a major hurdle for cannabis policy modernization efforts on the continent according to Mikuláš Peksa, Chairperson of the European Pirate Party.

“Any country wishing to legalise cannabis faces obstacles making legislation compliant with international agreements.” Mikuláš Peksa stated according to original reporting by Business of Cannabis.

“However, this is achievable particularly for countries outside the European Union, but the biggest obstacle for countries in the EU is the Schengen Agreement.” Peksa went on to state. He also indicated that an amendment to the Schengen  Agreement may be on the way. “Our aim is to make legalisation possible for all member states.”

Whether an amendment makes it to the finish line or not in the near future is anyone’s guess, but one thing is for sure – the longer lawmakers drag their feet at the continental level, the farther removed from reality continental and international agreements will become.

The legal cannabis industry is on the move at the national level in many parts of Europe, in addition to the long-established unregulated market that is found throughout the continent. To refrain from modernizing continental and international agreements in order to permit countries to modernize their own domestic cannabis policies is to deny reality. Nations like Germany will have their efforts slowed down by the European Union to some degree, but certainly not halted.

Cannabis commerce and use are not going anywhere. The status quo is a complete waste of limited public resources by every measure and it’s beyond time for a new approach. There is no valid reason why countries in Europe, and the rest of the world, shouldn’t be able to set their own policies for domestic cannabis activity. If a country wants to cling to prohibition, as ridiculous as that approach would be, then so be it.

The seemingly never-ending wrangling between national lawmakers in Europe and the European Union is both frustrating and exhausting. Fortunately, the coalition of pro-modernization lawmakers in Europe is increasing in size, and the same is true beyond the continent’s borders where the Schengen Agreement and other European provisions do not apply.

The European Union has to be feeling the squeeze whether they want to admit it or not, and at some point, it will presumably yield movement, both in regards to the Schengen Agreement and to all other provisions that are currently holding cannabis policy modernization efforts back.

 

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New Study Highlights How Everyone Benefits From Modernized Cannabis Policies

Written by Johnny Green on . Posted in Policy.

Cannabis policy modernization efforts are gaining momentum in many parts of the world. Every continent except Antarctica is now home to a nation that has either legalized cannabis for adult use to some degree or is experiencing ramped-up efforts to do so.

Modernized cannabis policies in nations like Uruguay, Canada, Malta, and Luxembourg have yielded new freedoms for consumers. Additionally, modernized cannabis policies also create new opportunities for entrepreneurs and investors.

Casual observers often make the mistake of assuming that modernized cannabis policies only affect consumers and people with business pursuits in the emerging legal cannabis industry. However, that is not the case, as highlighted by a recent comprehensive study conducted in Canada.

A team of researchers associated with the University of Northern British Columbia, the Centre for Addiction and Mental Health, the University of Victoria, the University of Guelph, and
Dalhousie University recently evaluated the relationship between legalization, adult cannabis-related, property, and violent crimes.

As part of the evaluation, the researchers examined criminal incident data from the Canadian Uniform Crime Reporting Survey for the period of January 1, 2015 to December 31, 2021. A main goal of the Cannabis Act in Canada, implemented in 2018, was to lower the burden on the nation’s criminal justice system. Researchers sought to determine if the legislation was successful in that regard, in addition to seeing if there were any changes to property and/or violent crime rates post-legalization.

“Implementation of the Cannabis Act was associated with decreases in adult police-reported cannabis-related offenses: females, −13.2 daily incidents (95% CI, −16.4; −10.1; p < 0.001) – a reduction of 73.9% [standard error (se), 30.6%]; males, −69.4 daily offenses (95% CI, −81.5; −57.2; p < 0.001) – a drop of 83.2% (se, 21.2%).” the researchers stated.

“Legalization was not associated with significant changes in the adult property-crime or violent-crime series.” researchers went on to state.

“Our findings suggest that Canada’s cannabis legalization was successful in reducing cannabis-related criminalization among adults. There was also a lack of evidence for spillover effects of cannabis legalization on adult property or violent crimes.” the researchers concluded.

Not everyone consumes cannabis, obviously. However, all members of society rely on their nation’s criminal justice system to keep society safe and to properly and equitably hold people accountable when they harm other people.

Criminal justice policy and enforcement is a zero-sum situation, in that there are not unlimited resources to fund such activity. Law enforcement agencies and courts have to decide what matters to prioritize, and what is not worth the resources.

Under prohibition, law enforcement wastes enormous amounts of resources enforcing failed public policy, and at an opportunity cost. Every hour that a member of law enforcement spends enforcing failed cannabis prohibition is an hour that they could have spent fighting actual crime, such as property and violent crime.

The same is true for the court system. Every cannabis case that has to go through the court system wastes docket hours and court resources that should be used instead for prosecuting actual criminal activity. Cannabis prohibition harms every member of society to some degree by wasting limited public criminal justice resources, whether people realize it or not.

Compare that to a country in which cannabis modernization is not only helping save limited tax dollars from being wasted on cannabis prohibition enforcement, but it also generates tax dollars for local and national governments to use to help improve society, such as helping fund schools, parks, and other civic projects. Canada is now a prime example of that on display for the world to see.

All members of society should support cannabis policy modernization, even if they do not consume cannabis and/or never have plans to. Cannabis prohibition is a failed public policy wherever it still exists, and it’s time for governments in those jurisdictions to take a more sensible approach.

Yoram Eshel

Overcoming International Cannabis Logistical Challenges

Written by Hazel Norman on . Posted in Business, Policy.

The emerging international cannabis industry is currently governed by a complex web of laws, rules, and regulations that are constantly shifting and evolving. With more countries reforming their cannabis policies and regulations, the regulatory layers will continue to increase in volume for the foreseeable future.

Yoram Eshel, CEO of Cannabilog, recently presented tips and insight regarding how to navigate the ‘regulatory maze’ in an effective way as part of his presentation at the recent International Cannabis Business Conference in Berlin. Eshel analyzes current international supply chain trends, provides an update on regulatory requirements in various markets, and discusses what to anticipate soon. He also discusses the ‘do’s and don’ts’ when shipping cannabis products worldwide.

We look forward to seeing you in Berlin in 2024, as well as at our upcoming science and technology event in Slovenia this September!