A guide to the legalization and regulation of recreational marijuana use in Mexico

RIO DE JANEIRO, BRAZIL – Mexico has taken yet another step towards becoming the third country in the world, along with Uruguay and Canada, to legalize the personal recreational use of marijuana.

After the Senate had passed, last November 19th, a ruling on the responsible adult use of cannabis, on Thursday, March 10th, the Chamber of Deputies passed the general decriminalization and regulation of the recreational use -called “adult use”- of marijuana throughout the country.

Some of the key points in this ruling, which would reform articles in the Federal Criminal Code and the General Health Law, include the enactment of the General Law for the Regulation of Cannabis, as well as the establishment of the Mexican Institute for the Regulation and Control of Cannabis (IMRCC).

It will also allow people over 18 years of age to consume psychoactive cannabis unless it is done in the presence of a minor or any other person unable to express their free and informed consent. Nor will it be possible to use it in public spaces if a person of legal age has not given his or her consent.

It will be possible to sell cannabis and its derivatives for adult use in Mexico, although this must be done in establishments authorized by the IMRCC. With respect to planting, cultivation, harvesting, use and preparation of cannabis plants, an individual living alone may grow up to 6 plants, whereas if there are 2 consumers in the same household, the number is increased to 8.

It should be noted that for growing, processing, marketing, exporting or importing, the ruling establishes that licenses must be obtained, although an individual may hold more than one type of license, none of which implies any activity involving the medicinal use of cannabis.

If an individual wishes to use cannabis in his or her home, he or she must perform the necessary building adaptations so that the smoke is not inhaled by people other than the consumers. Regarding possession, an individual may only carry less than 28 grams of marijuana.

In case someone possesses more than this amount, they are subject to an administrative offense, for which a fine between 5,000 and 10,500 pesos must be paid. If an individual carries more than 200 grams, they may be criminally punished with 3 to 6 years of imprisonment.

On the other hand, clubs for recreational cannabis consumption may be opened with a minimum of two members and a maximum of 20, all of them of legal age. These places must display signs that identify their business, but they may not promote their product. Regarding planting, these places will be able to grow up to four plants per member.

Another way to access the product will be through companies with a regulated production authorized by the Institute. In this case, establishments will be allowed to sell specific doses of marijuana.

The regulation also provides a place for research on medical, pharmaceutical or palliative uses of the cannabis plant by universities, specialized centers and other institutions.

What are the bans contemplated by this initiative?

People under 18 years of age will not have access to adult cannabis, and those who supply it to them commit a crime. Nor will it be allowed to employ children and adolescents in any activity related to the planting, cultivation, growing, harvesting, trade, production, distribution, supply, sale and consumption of cannabis.

Marijuana may not be consumed in work areas, whether public or private, in addition to commercial establishments with public access, elementary, middle and high schools, governmental facilities or any place where the use of tobacco is banned.

Other places where psychoactive cannabis may not be consumed are points of “massive concurrence where people under 18 years of age may have access,” such as shopping malls, parks, amusement parks, stadiums, sports facilities, whether open or any place where people are or may be exposed to the harmful effects of “second-hand smoke.”

It will also not be possible to provide psychoactive cannabis, its derivatives and products based on this substance free of charge. Another prohibition established by the ruling is to drive any vehicle, drive or operate equipment or machinery that may cause danger under the effects of THC. In this case, the punishment will be a fine and arrest from 12 to 36 hours.

No alcoholic beverages may be sold or consumed in the clubs and establishments and the license issued by IMRCC must be shown. Likewise, it must be ensured that the persons entering these places are of legal age and they must also display a sign with the prohibition to market, sell, distribute and supply to persons under 18 years of age.

Failure to comply with the provisions of the legislation will be sanctioned with a fine of 500 to 3,000 times the daily value of the Unit of Measurement and Actualization, which will be doubled in case of repeated offenses. In the event of a third offense, the penalty will be the revocation of the permit.

In this sense, it will be prohibited to commercialize products that mix marijuana with other substances such as tobacco, caffeine, alcohol, energy drinks or any other substance that may or may not be considered psychotropic.

Controversies surrounding cannabis regulation

Although this ruling may represent an opportunity to take a step forward on the issue, some groups have warned the population that it is “concerning” and that certain aspects of the legislation that they consider deficient, especially in terms of social justice, should be addressed.

Tania Ramirez, director of the Drug Policy program of Mexico United Against Delinquency (MUCD), has denounced through various media that although the quantities of cannabis that a person can possess have been changed, this plant will still remain on the list of banned substances.

Likewise, it has pointed out that crimes in the Federal Criminal Code will persist despite the existence of a regulated market, which, at least in theory, will allow self-cultivation, cannabis clubs and retail sales. In this respect, the most relevant contradiction from her perspective is that a regulation without decriminalization is being proposed, since the crime of simple possession will be maintained.

“If before they were extorting with 5 grams, now they will extort with 28. This criminal regime needs to be modified, eliminating the crime of simple possession, it is a conduct that should not be considered a crime and the criteria to prosecute carrying small amounts should be changed,” as reported by Animal Político.

Julio Salazar, an attorney for the same civil organization, also pointed out that there is “over-regulation” for people who want to consume within their homes, since they must perform alterations to their properties so as not to disturb neighbors.

“The fact that authorities may visit homes to inspect the place paves the way for extortion and abuses by authorities, although it is an activity for the legitimate development of one’s personality,” said the expert, who also considered that these conditions are excessive and that they favor certain sectors of the population.

On the other hand, Erick Ponce, director of the Cannabis Industry Promotion Group (GPIC), considered that there will be no criminalization of consumers if the sector assumes its role responsibly and educates the population about the legality and quality of the plant, but also about their rights.

Regarding the economic impact that this regulation could produce, there are also conflicting positions. On the one hand, Salazar pointed out that “far from establishing the conditions for the creation of a national market, it is establishing conditions for foreign companies to enter the market with an advantage”.

This argument is based on the fact that if the ruling is passed as it was submitted to the Chamber of Deputies, the first companies to enter the market will be the ones with all the infrastructure required by law, such as the genetic seed traceability and testing mechanisms, which are complex, expensive and currently only foreign companies have them.

In addition, the legislation states that the seeds to be used must be of legal origin, that is, they must be imported from registered suppliers, and although there are seeds in Mexico, none of them are registered and there are still no suppliers to perform this process.

In contrast, the GPIC’s outlook is encouraging, as they project that the cannabis industry, in 2025, will generate an economic flow of US$10 billion in Mexico alone, based on criteria such as tax collection and the creation of new jobs in distributors, production chains and sales, as well as sub-industries, including consultancy, education, analytical laboratories, monitoring and health.

He also pointed out that this legislation will represent a benefit for growers, as it will discourage the black market, in addition to the fact that “special and priority support is contemplated for marginalized communities, common farmers and peasants to provide them with advice and counseling regarding the procedures and access to the investment aspect.”

However, the last points mentioned by Ponce are not included in the ruling. Rather, the wording states the following: “Indigenous peoples and communities, peasants or peasant farmers, and agrarian communities in a situation of marginalization or that due to their nature or because they have been affected by the prohibitive system, must be given priority attention.”

In any case, the advantage that these communities will have will be related to the possibility of holding more than one license to cultivate, transform or commercialize the cannabis plant. “The above, as an affirmative action to compensate for the damages caused by the prohibition,” the document reads.

Despite the fact that marginalized populations will have priority access to licenses for these activities, their mere existence is something that organizations have also demanded to eliminate, as the economic, technical and legal obstacles will be a reason for these communities to shy away from growing, processing or commercializing cannabis.

“The requirements are too expensive, excessive and equally demanded. So, those who will be in a position to afford them will be companies, and despite the priority given to peasant communities, the truth is that if they are not provided with support and entry barriers to the market are removed, they will not be able to access it,” explained Salazar.

For this specialist and the civil organization he represents, this type of conditions will not put an end to the illegal cannabis market, as it will result in the creation of a luxury market, and both will coexist.

On the other hand, the GPIC considered that licenses should be maintained, as they will help control and regulate activities, in addition to preventing certain communities from being subject to extortion by organized crime groups.

On the other hand, this group is concerned about the taxes that could be imposed on cannabis-derived products. In this respect, Ponce mentioned that they are working on a proposal for the 2021 Economic Package, with the aim of this being gradual, “starting with a low rate through the IEPS tax and possibly a larger rate being adopted so that we could compete with the black market.”

With respect to these issues, Senator Emilio Álvarez Icaza said that he is surprised by the fact that the budget for next year does not contemplate the creation of the Mexican Institute for the Regulation and Control of Cannabis, which is not a minor issue if one considers “the austerity” practiced by López Obrador’s government.

Regarding research for the medicinal use of cannabis, the ruling remained unchanged. Universities, institutions or specialized centers will be allowed to conduct studies and analyze the benefits of any plant, although such research must be supervised by the Federal Commission for the Protection of Health Risks (COFEPRIS).

However, Dr. Omar Ortega Carrasco, head of the Department of Pharmacology of the Faculty of Medicine of the UNAM, accepted that the pharmaceutical industry in the country is facing unfavorable competition with the international industry.

“Encouraging national development and research is something pending on the agenda. National industry should be supported so that it may compete with the transnational monsters,” he said.

Source: Infobae