Mexico's Senate Approves Bill on Cannabis Regulation Allowing Recreational Use

Mexico's Senate has approved a bill for the issuance of the Federal Law for the Regulation of Cannabis (Ley Federal para la Regulación del Cannabis or LFRC), and for the amendment and addition of several provisions to the General Health Law (Ley General de Salud) and the Federal Criminal Law (Código Penal Federal), allowing the recreational use of cannabis.

The draft has been turned over to the Chamber of Deputies for its discussion, and, if applicable, approval. The Chamber of Deputies may have additional comments on the bill.

The version of the bill approved by the Senate includes, among other aspects, the following:

• The Mexican Institute for the Regulation and Control of Cannabis (Instituto Mexicano para la Regulación y Control del Cannabis or IMRCC) is created to enforce the LFRC as a deconcentrated body of the Ministry of Health.
• Individuals aged 18 years or older are allowed to use psychoactive cannabis for recreational purposes as long as minors, individuals incapable of expressing their free and informed consent or individuals of legal age who have not granted their respective approval, are not present.
• Six to eight plants are allowed per household. Individual adults are allowed to plant, grow, harvest, use and prepare up to six plants at their home for self-consumption, or up to eight plants if more than one consuming adult person lives in the same household. Such plants shall remain in the home of the consuming adult person.
• There is a limit of 28 grams of psychoactive cannabis.
• Sale is limited to 28 grams per day and per person, and possession is allowed up to 28 grams.
• Fines shall apply for possession of more than 28 and fewer than 200 grams.
• Possession of more than 200 grams shall be punishable with prison.
• Hemp is removed from the list of psychotropic substances.
• Sale of psychoactive cannabis and its derivatives for adult-use is allowed only within Mexico and by establishments holding a license granted by IMRCC.
• The following are the five IMRCC licensing types for cannabis:
• Growing: acquisition of seeds or seedlings, planting, growing, harvesting and preparation of cannabis
• Transformation: preparation, transformation, manufacture and production of cannabis
• Commercialization: distribution and public sale of cannabis, its derivatives and products
• Export or Import: distribution and sale abroad and entry to Mexico of non-psychoactive cannabis or manufactured products made of it according to the terms of applicable laws, international treaties and other applicable regulations, specifying destination or origin, respectively
• Research: acquisition of seeds or seedlings, planting, growing, harvesting, preparation, and transformation of cannabis and its derivatives, exclusively in quantity and terms of the research protocol approved by IMRCC

Growing, transformation and commercialization licenses are mutually exclusive. IMRCC shall only grant one licensing type per holder, except for export or import licenses, which may be granted in conjunction with other licensing types.

Holland & Knight will keep you posted on this bill's updates and any applicable amendments after its discussion by the Chamber of Deputies.

For more information or questions about this bill, please contact the authors.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.