The Senate of the Republic approved the opinion bill enacting the Federal Law for the Regulation of Cannabis, which will pass to the Chamber of Deputies for its discussion and/or modification and eventual approval. Although the opinion bill did not satisfy the expectations of all the political, economic, and social sectors involved, it represents a plausible start on the path toward liberalizing certain uses of cannabis. In our view, the most relevant points of the opinion bill are the following:
The law would only regulate the adult, research, and industrial use of cannabis. Its pharmaceutical, therapeutic, and palliative use will be governed by the General Health Law and the Regulation on Sanitary Control for the Production, Research, and Medicinal Use of Cannabis and its Pharmacological Derivatives, which is pending issuance, publication, and entry into force. The self-consumption and personal use of psychoactive cannabis (whose THC concentration is equal to or greater than 1%) are not subject to authorization, but are limited to a specific number of plants per individual and to consumption in certain places. The use of non-psychoactive cannabis in concentrations of less than 1% THC (hemp) is permitted for the preparation and manufacture of products other than medicines, which may be subject to import or export. However, its use in edible and drinkable products is prohibited, which would exclude a large number of hemp products available in other markets. Carrying out the various acts that make up the chain of production, distribution, and commercialization of cannabis for authorized uses is subject to obtaining a license. Five types of licenses are contemplated: (i) cultivation, (ii) transformation, (iii) commercialization, (iv) Export and Import (hemp products only), and (v) research. The granting of these licenses would be subject to certain restrictions. Each individual or legal entity may obtain only a single type of license, except for hemp export or import licenses, which may coexist with another type of license upon meeting certain requirements. The possibility for related parties of licensees (partners, shareholders, family members) to obtain licenses of other types is also limited when the result would be a “vertical integration” of the industry. The number of licenses will be limited by federal entity, and during the first 5 years, at least 40% of the cultivation licenses will be granted to indigenous and peasant groups affected by the prohibitionist system prevailing to date. It is important to note that the opinion bill does not limit the participation of foreign investment, which will be governed in accordance with the corresponding law. Finally, the creation of the Mexican Institute for the Regulation and Control of Cannabis stands out, tasked with, among other things, granting licenses and establishing the mechanisms to supply the domestic market with lots of cannabis seeds and plants during the period deemed appropriate, so that the cannabis market in Mexico can be launched. Although this advance is highly commendable, it presents certain inconsistencies and problems as to its approach, especially regarding the favoring of certain minority groups and the ownership of the licenses, which we hope will be corrected in the Chamber of Deputies. For additional information, please contact our experts: Luis Miguel Jiménez, Partner: +52 (55) 5258 1058 | lmjimenez@vwys.com.mx Javier Lizardi, Partner: +52 (55) 5258 1021 | jlizardi@vwys.com.mx María de Lourdes Salazar y Vera, Associate: +52 (55) 5258 1058 | mlsalazar@vwys.com.mx Cinthya González, Associate: +52 (55) 5258 1021 | cgonzalez@vwys.com.mx
