Responsible Use of Cannabis (Licensing of Organisations)

L.N. 44 of 2026

AUTHORITY ON THE RESPONSIBLE USE OF CANNABIS

(CAP 628)

Responsible Use of Cannabis (Licensing of Organisations)

(Amendment) Regulations, 2026

IN EXERCISE of the powers conferred by article 20 of the

Authority on the Responsible Use of Cannabis Act, the Prime Minister

has made the following regulations:-

The title of the these regulations is the Responsible Use of Citation.

Cannabis (Licensing of Organisations) (Amendment) Regulations,

2026 and these regulations shall be read and construed as one with the

Responsible Use of Cannabis (Licensing of Organisations) S.L. 628.01.

Regulations, hereinafter referred to as the "principal regulations".

In regulation 3 of the principal regulations the definition Amends

regulation 3 of

"administrator" shall be substituted by the following new definition

the principal

regulations.

" "administrator" means any person who is appointed or

elected on the Board of Administration of an association in

accordance with Part II;".

In regulation 6 of the principal regulations the words "two Amends

regulation 6 of

(2)" shall be substituted by the words "three (3)".

the principal

regulations.

Regulation 7 of the principal regulations shall be amended Amends

regulation 7 of

as follows

the principal

regulations.

(a) sub-paragraph (ii) of paragraph (c) of sub-regulation

(2) thereof shall be substituted by the following new sub-

paragraph

"(ii) any founding member, member, employee,

donor or;";

(b)

sub-regulation (4) thereof shall be amended as

follows

(i) paragraph (a) thereof shall be substituted by the

following new paragraph

"(a) a founding member, administrator or

member may receive remuneration from the

association when he is engaged by, or is an employee

of the association under a written contract or when he

is the provider of any goods or services to the

association

Provided that such remuneration

(a) shall be strictly attributable to those

functions being the subject of the written contract or

to the governing provisions relating to goods or

services rendered to the association;

(b) shall be in accordance with market levels

and market conditions as established in any binding

instrument, or as otherwise approved by the

Authority, unless the Authority is otherwise satisfied

that the administrator has specific skills which meet

the needs of the association;

(c) shall not be as such as to prejudice the

achievement of the purposes and objectives of the

association or its sustainability;

(d) shall not prejudice the achievement of the

principal and sustainable purpose and objectives of

the association;

(e) shall be recorded in sufficient detail

through a written agreement, the details of which are

to be approved by the Authority prior to its signing;";

(ii)

paragraph (b) thereof shall be deleted;

(iii) paragraph (d) thereof shall be amended as

follows

-

sub-paragraph (i) thereof shall be deleted;

-

sub-paragraph (iv) thereof shall

be

substituted by the following new sub-paragraph

"(iv) pay a price for any good or service,

acquired or leased, which is higher than the

market price for such good or service as

established by the Authority.".

Regulation 8 of the principal regulations shall be amended Amends

regulation 8 of

the principal

regulations.

(a)

sub-regulation (2) thereof shall be amended as

(i) in paragraph (b) thereof the words "its

members." shall be substituted by the words "its members:"

and immediately thereafter there shall be added the

following new proviso

"Provided that such activity and income shall

only be considered permitted if they are carried out

(a) following the successful conclusion

of laboratory testing, according to the

parameters which the Authority may prescribe

by means of a binding instrument or other

written instruction;

(b) from

a

property

approved

specifically for such purpose by the Authority;

(c) in containers of the design, size and

type approved by the Authority, and which shall

be covered by labels as prescribed by the

Authority;

(d) sealed and enclosed with the

numbered tamper evident security seals

provided or prescribed by the Authority;

(e) in such form, variety, or processed

state of cannabis as may be approved by the

Authority; and

(f) in a manner which does not cause

nuisance to third parties, and does not give rise

to loitering in the immediate vicinity of the

property where the distribution takes place;";

(ii) immediately after paragraph (b), as amended,

there shall be added the following new paragraph

"(c) payment of a reimbursable deposit for the

purchase of accessories related to the operations of

the association.";

(b) immediately after sub-regulation (2) thereof, as

amended, there shall be added the following new sub-

regulations

"(3) An association shall not advertise its name,

logos and activities or use any words, signs and designs

which may be associated with the cannabis culture in any

manner which is visible by non-members, both by physical

and electronic means.

(4) An association shall not distribute to any

member more than seven (7) grams of cannabis in a day

and more than fifty (50) grams of cannabis in a month

Provided that the Authority may, by means of a

binding instrument, stipulate lower amounts for cannabis

with a higher potency.".

Regulation 9 of the principal regulations shall be

substituted by the following new regulation

Ir-regolament 12 tar-regolamenti prinċipali għandu jiġi Jissostitwixxi r-

regolament 12

sostitwit bir-regolament ġdid li ġej

tar-regolamenti

prinċipali.

"12. L-ebda persuna ma tista’ tidħol fi ftehim sabiex

twaqqaf assoċjazzjoni jew tagħmel dotazzjoni, sew inizjali jew

xort’oħra, lil assoċjazzjoni sakemm tali persuna ma kinitx

ordinarjament residenti f’Malta għal minimu ta’ ħames (5) snin

konsekuttivi qabel ma waqqfet l-assoċjazzjoni jew qabel ma

għamlet dotazzjoni lill-assoċjazzjoni

Iżda kontribuzzjoni minima inkluż fil-forma ta’

miżata ta’ ammissjoni jew sħubija ma għandhiex titqies bħala

dotazzjoni għall-fini ta’ dan ir-regolament.".

Ir-regolament 13 tar-regolamenti prinċipali għandu jiġi Jissostitwixxi r-

regolament 13

sostitwit bir-regolament ġdid li ġej

tar-regolamenti

prinċipali.

" Tmexxija u korpi.

Subject to the provisions of regulation 7 and

if so authorised by its statute, an association may only

borrow money from its administrators, any European

Union or European Economic Area licensed credit

institutions or financial institutions authorised to carry

out lending in the European Union or in the European

Economic Area

Provided that the association shall only

accept money borrowed from the administrators with

the prior approval of the Authority and following the

signing of an agreement which indicates the terms and

conditions of the loan. The loan transaction shall be

made through bank wire transfer and shall not be

through the physical exchange of cash

Provided further that prior to accepting any

loans from the administrators, the association shall

ensure that the source of such funds so advanced to it

by the administrators are either their own funds or

have been loaned to the administrators by a European

Union or European Economic Area licensed credit or

financial institution.".

7. Regulation 12 of the principal regulations shall be

substituted by the following new regulation

"12. No person may enter into an agreement to establish

an association or may make an endowment, whether initial or

otherwise, to an association unless such person has been

ordinarily residing in Malta for a minimum of five (5)

consecutive years prior to establishing the association or making

an endowment to the association

Provided that a minimum contribution including in

the form of an admission or membership fee shall not be

considered as an endowment for the purpose of this regulation.".

8. Regulation 13 of the principal regulation shall be Substitutes

regulation 13 of

substituted by the following new regulation

the principal

regulations.

An association shall be free to determine its

"Governance and

internal management structure and governance in its

statutes subject to the provisions of these regulations

and as otherwise prescribed by the Authority in any

binding instrument

Provided that the highest management organ

within an association shall be the Board of

Administrators in accordance with regulation 14.".

9. Regulation 14 of the principal regulations shall be amended Amends

regulation 14 of

as follows

the principal

regulations.

(a) sub-regulation (1) thereof shall be substituted by the

following new sub-regulation

"(1) Following the dismissal, resignation or

incapacitation of an administrator, an association shall take

immediate action to fill the vacant position as expediently

as possible as provided in its statute, these regulations, and

any binding instrument or written instruction issued by the

Authority, and in any case by not later than three (3)

months from when the post became vacant.";

(b) sub-regulation (3) thereof shall be substituted by the

following new sub-regulation

"(3) No person may be appointed as an administrator

unless such person is a member of the same association.";

(c) sub-regulation (4) thereof shall be substituted by the

following new sub-regulation

"(4) Each administrator shall be approved by the

Authority prior to their appointment.";

(d)

sub-regulation (5) thereof shall be deleted.

10. Regulation 15 of the principal regulations shall be

substituted by the following new regulation

Ir-regolament 21 tar-regolamenti prinċipali għandu jiġi

emendat kif ġej

(a) is-subregolament (1) tiegħu għandu jiġi sostitwit bis-

subregolament ġdid li ġej

"(1) Laqgħa ġenerali skedata jew straordinarja ta’

assoċjazzjoni, jiġifieri l-laqgħa tal-membri kollha għandha

tissejjaħ bħala l-laqgħa ġenerali.";

(b)

is-subregolament (2) tiegħu għandu jiġi sostitwit bis-

subregolament ġdid li ġej

"(2) L-avviż tal-jum, il-ħin, il-post u l-aġenda tal-

laqgħat ġenerali kollha għandu jingħata lil kull membru

mill-anqas ħmistax (15)-il jum ta’ xogħol qabel il-jum tal-

laqgħa jew kwalunkwe tali perjodu ieħor li l-Awtorità tista’

tindika permezz ta’ strument vinkolanti jew istruzzjoni

oħra.";

(ċ) fis-subregolament (3) tiegħu l-kliem "(50%) tal-

membri kollha." għandhom jiġu sostitwiti bil-kliem "(50%) tal-

membri kollha:" u minnufih wara għandu jiġi miżjud il-proviso

ġdid li ġej

"Iżda l-Awtorità tista’, permezz ta’ strument

vinkolanti, tipprovdigħal ċirkostanzi fejn il-kworum ma

jintlaħaqx.";

(d) minnufiħ wara s-subregolament (6) tiegħu għandu

jiġi miżjud is-subregolament ġdid ġdid li ġej

"(7) Mill-anqas darba fis-sena, il-laqgħa ġenerali

għandha tinkludi l-elezzjoni tal-membri tal-Bord tal-

Amministraturi . ".

(1) Persons who have been convicted in

the previous ten (10) years of

(a) any of the offences mentioned in Part I

and II of Book First of the Criminal Code or

abroad in accordance with laws of equivalent

effect;

(b) any offence in accordance with the

Dangerous Drugs Ordinance or the Medical and

Kindred Professions Ordinance, or any subsidiary

legislation thereunder;

(c) any offence involving the possession,

supply, production and importation of illegal

drugs by any court in Malta or abroad;

(d) any

offence

involving

money

laundering or the funding of terrorism; and

(e) any offence which leads to an

interdiction;

shall not be

(i) founding members of an

association;

(ii) eligible for appointment or

election to the office of administrator or to

hold any position, if already appointed or

elected, shall not be eligible to retain such

office;

(iii) eligible to render services in the

premises of any association,

(iv) employees of an association

Provided that any person who has been

convicted of an offence indicated in this sub-regulation

shall not be disqualified for the purpose of this sub-

regulation, if after his conviction the offence for which

he had been convicted is no longer considered to be an

offence in terms of Maltese law, or if he has been

convicted of possession of personal use of a prohibited

drug

Provided further that except in the case of

offences falling under Titles V VI or IX of Part II of

Book First of the Criminal Code, the Authority may,

after the lapse of five (5) years from the date of the final

judgment of conviction and subject to its discretion, and

upon due consideration of the nature and gravity of the

offence, the particular circumstances of the case, the

individual’s rehabilitation efforts, and any mitigating

factors acknowledged by the court, authorise a person

to hold the role of administrator, or to be employed with

an association, or to render services within the premises

of an association.

(2) An association shall carry out a due

diligence exercise on its administrators, employees and

service providers prior to their engagement, strictly for

the purpose of complying with this regulation. The due

diligence exercise shall include, but is not limited to,

requesting the individual concerned to submit a conduct

certificate issued in accordance with the Conduct

Certificates Ordinance. Any personal data processed by

the association shall fully comply with the provisions of

Regulation (EU) 2016/679 of the European Parliament

and of the Council of 27 April 2016 on the protection of

natural persons with regard to the processing of

personal data and on the free movement of such data,

and repealing Directive 95/46/EC (General Data

Protection Regulation) and the Data Protection Act,

including the regulations made thereunder and the

fundamental rights and freedoms of the data subjects.

(3) An association shall inform the Registrar in

writing about the findings of the due diligence exercise

by not later than twenty (20) days following their

completion

Provided that the original conduct

certificates or copies thereof, processed by the

association for the purpose of the due diligence exercise

shall be immediately and permanently erased after the

association communicates the relevant information to

the Registrar

Provided further that the association shall

notify the Authority in writing within twenty-four (24)

hours if it transpires that an individual mentioned in

sub-regulation (1) is no longer eligible to hold their

position. In such case the association shall, as a

minimum, suspend the individual in question from their

position with immediate effect and await further

instructions from the Authority.

(4) An association shall periodically conduct a

due diligence exercise in order to verify that the

individuals mentioned in sub-regulation (2) are in

possession of a clean police conduct certificate.".

11. Sub-regulation (2) of regulation 16 of the principal

regulations shall be amended as follows

(a) paragraph (a) thereof shall be substituted by the

following new paragraph

"(a) is the same as the name of another association

or entity registered in Malta, or is so nearly similar that, in

the opinion of the Registrar it may create confusion; or";

(b) in paragraph (b) thereof the words "otherwise

undesirable; or" shall be substituted by the words "otherwise

undesirable:"

(c)

paragraph (c) thereof shall be deleted.

12. Sub-regulation (2) of the regulation 17 of the principal

regulations shall be amended as follows

(a) paragraph (b) thereof shall be substituted by the

following new paragraph

"(b) the address of its registered office, which shall

be that of one (1) of the properties approved by the

Authority for the cultivation or distribution of cannabis;";

(b)

paragraph (d) thereof shall be deleted;

(c) paragraph (f) thereof shall be substituted by the

following new paragraph

"(f) the manner in which the legal and judicial

representation of the association is to be exercised, which

shall be as stipulated in regulation 44, and the name

surname, identification number, nationality and residential

address of the

first

person

vested

with

such

representation;";

(d) paragraph (h) thereof shall be substituted by the

following new paragraph

"(h) the maximum number of members it may have

which shall not be more than that allowed in the conditions

of its operating permit;";

(e) paragraph (j) thereof shall be substituted by the

following new paragraph

"(j) its assets at the time of its formation, which

shall consist, as a bare minimum, of an endowment of not

less than one thousand euro (€1,000) donated by the

founders;";

(f) paragraph (m) thereof shall be substituted by the

following new paragraph

"(m) the composition of the Board of Administrators,

which shall not be of less than three (3) administrators;";

(g) paragraph (n) thereof shall be substituted by the

following new paragraph

"(n) the procedures for the appointment of members

of the Board of Administrators, which shall generally be by

means of an election held during a scheduled or

extraordinary general meeting;";

(h) paragraph (o) thereof shall be substituted by the

following new paragraph

"(o) the provisions governing the functioning,

powers and responsibilities of its scheduled and

extraordinary general meetings;";

(i) paragraph (q) thereof shall be substituted by the

following new paragraph

"(q) the frequency with which its general meeting

shall be called, which shall be at least once a year;";

(j) in paragraph (t) thereof the words "amending them."

shall be substituted by the words "amending them;" and

immediately thereafter there shall be added the following new

paragraphs

"(u) the conditions and procedures for the dismissal

of members of the Board of Administrators, which shall

include the members’ right to call an extraordinary general

meeting for such purpose;

(v) provisions governing the functioning of the

Board of Administrators and its powers and

responsibilities; and

(w) the name, surname, identification number,

nationality and residential address of the first

administrators.".

13. Regulation 18 of the principal regulations shall be amended

as follows

(a) in sub-regulation (1) thereof immediately after the

words "in accordance with the provisions of these regulations"

there shall be added the words ", and may only admit the number

of members allowed in its permit";

(b) in sub-regulation (3) thereof immediately after the

words "and shall only admit full members" there shall be added

the following words "with equal rights.";

(c) immediately after sub-regulation (5) thereof there

shall be added the following new sub-regulation

"(6) Notwithstanding any other regulation, no

association may admit more than five hundred (500)

members.".

14. Regulation 21 of the principal regulations shall be amended

as follows

(a) sub-regulation (1) thereof shall be substituted by the

following new sub-regulation

"(1) An association’s scheduled or extraordinary

general meeting, meaning the gathering of all members

shall be referred to as the general meeting.";

(b) sub-regulation (2) thereof shall be substituted by the

following new sub-regulation

"(2) Notice of the day, time, place and agenda of all

general meetings shall be given to each member at least

fifteen (15) working days before the day of the meeting or

any other such period as the Authority may indicate by

means of a binding instrument or other instruction.";

(c) in sub-regulation (3) thereof the words "(50%) of all

members." shall be substituted by the words "(50%) of all

members:" and immediately thereafter there shall be added the

following new proviso

"Provided that the Authority may, by means of a

binding instrument, make provisions for circumstances

where the quorum is not achieved.";

(d) immediately after sub-regulation (6) thereof there

shall be added the following new sub-regulation

"(7) At least once a year, the general meeting shall

include the election of the members of the Board of

Administrators .".

15. Regulation 22 of the principal regulations shall be Substitutes

regulation 22 of

substituted by the following new regulation

the principal

regulations.

An association shall keep an internal up to

date register of members under strict security controls.

Such register shall include the following information

about each registered member

(a) the full name and surname;

(b) the identity card number or other

reference number indicated in an official

document issued by a competent Maltese

authority evidencing residency in Malta and the

expiry date of such document;

(c) the date of birth;

(d) the residential address;

(e) the email address;

(f) the contact number;

(g) the date when such person became a

member of the association;

(h) where applicable, the date when a

member ceased to be a member of the association

and the reason thereof;

(i) a copy of the identity card or residence

document from which the details in paragraph (b)

were obtained;

(j) details about each gram of cannabis

distributed to the members, including the location

where the transaction took place, the date and

time of the transaction, any unique transaction

identification codes as prescribed by the

Authority and the amount paid; and

(k) details about membership and

admission fees paid and the period for which they

pertain.

(2) An association shall, without divulging

details which may identify the identity of the members,

deliver an extract from the register of members to the

Registrar which indicates all changes for the preceding

month by not later than the seventh (7th) day of each

month.

(3) The association shall retain the personal data

of each member shall be kept for a period of two (2)

years after the date when the person ceases to be a

member of the association. Following the expiration of

such period, an association shall anonymise the date in

such manner that the person is no longer identifiable,

and keep only information in relation to the amount of

cannabis distributed and fees paid shall be kept for a

period of ten (10) years after the date when such person

ceased to be a member of the association.".

16. Regulation 23 of the principal regulations shall be

substituted by the following new regulation

(1) No person shall render service in the

premises

of an association unless such person is

goods and services.

approved by the Authority to carry out such service.

(2) An association shall only procure goods and

services against the issuance of a fiscal receipt.

(3) An association shall only procure goods and

services from persons and entities that are residents of,

or registered in the European Union or the European

Economic Area or such other approved jurisdiction, as

the Authority may prescribe.".

17. Immediately after sub-regulation (2) of regulation 24 of the

principal regulations there shall be added the following new sub-

"(3) The amended statute shall only take effect after it is

approved by the Registrar.".

18. Regulation 25 of the principal regulations shall be deleted.

Deletes

regulation 25 of

the principal

regulations.

19. Regulation 26 of the principal regulations shall be deleted.

Deletes

regulation 26 of

the principal

regulations.

20. Regulation 27 of the principal regulations shall be Substitutes

regulation 27 of

substituted by the following new regulation

the principal

regulations.

(1) The Board of Administrators shall

keep accounting records and prepare annual financial

statements in conformity with the requirements of the

International Financial Reporting Standards (IFRS)

which shall be duly verified and signed by an auditor

on an annual basis and as may be prescribed.

(2) The Board of Administrators shall keep a

register of assets which shall include a list of all assets

of the association including details relating to whether

they have been purchased, leased or donated, the

location where such assets are held and their cost or

value.

(3) The financial year of an association shall be

the calendar year

Provided that the first year shall be shorter

or longer as per generally accepted accounting

practices, or as the Authority may determine by means

of written instruction.

(4) An original copy of the audited financial

statements signed by the auditor shall be delivered to

the Registrar by not later than the thirtieth (30th) of

September of the following year.

(5) An association is to submit the following

accounts to the Registrar by not later than the twentieth

(20th) day of the end of each quarter

(a) cash flow statement;

(b) income and expenditure statement,

which shall provide a detailed breakdown of the

various transactions; and

(c) balance sheet

Provided that the Authority may, by

means of a binding instrument or other

instruction, demand the submission of additional

and more frequent financial records

Provided further that the Registrar

may also request an association to submit the

fiscal receipts and other documentation pertaining

to specific transactions.".

21. Sub-regulation (2) of regulation 28 of the principal

regulations shall be substituted by the following new sub-regulation

"(2) The liability of the founding members,

administrators or members towards third parties for the

obligations of the association shall be determined in

accordance with the provisions of article 48(3) and (4) of

Sub-Title III of Title III of the Second Schedule to the Civil

Code.".

22. Sub-regulation (1) of regulation 31 of the principal

regulations shall be substituted by the following new sub-regulation

"(1) For the purposes of these regulations, a senior officer

of the Authority shall be appointed as the Registrar for Cannabis

Harm Reduction Associations. In the absence of any such

appointment, the Chairperson of the Authority shall be deemed

to also hold the role of Registrar.";

23. Regulation 32 of the principal regulations shall be

substituted by the following new regulation

(1) There shall be an internal Register of

Cannabis Harm Reduction Associations which shall be

maintained by the Registrar subject to strict security

controls for the purpose of registering associations

Provided that the Authority may publish the name,

registration number and registered address of an

association together with the name of the individual

appointed in terms of regulation 44.

(2) The Register shall contain the following

information about each association which shall be

supported by the documentation outlined hereunder, as

may be further supplemented by guidelines issued by

the Authority, and as the same may be amended or

updated from time to time

(a) the name of the association;

(b) the addresses from which the

association is authorised to operate;

(c)

the registration number of the

association;

(d) an authenticated copy of the

constitutive instrument of the association and any

amendments thereto, each of which shall bear the

date when the constitutive instrument was drawn

up and the dates when any amendments were

made thereto and when such amendments were

approved;

(e) the names, identity card numbers, the

residential addresses, the contact details, and the

conduct certificate issued in terms of the Conduct

Certificates Ordinance of the

(i) founding members;

(ii) administrators;

(iii) employees; and

(iv) any other individual who

provides a regular service in the premises of

the association

Provided that the original conduct

certificates or copies thereof received by the

Registrar shall be immediately and permanently

erased following the necessary verifications, with

only an internal note recording the relevant

contents

(f) the persons who have been appointed

as the President, Treasurer and General Secretary

of the association;

(g) the permit number, its status and

category, if in possession of a permit in terms of

these regulations;

(h) anonymised monthly updates of the

Register of Members;

(i) annual audited accounts of the

association;

(j) quarterly accounts of the association;

and

(k) such other information as the

Authority may by a binding instrument prescribe.

(3) A member of an association may, in

accordance with any rules as the Authority may

prescribe, request the Registrar to view documentation

which has been submitted to the Registrar, pursuant to

this regulation by the association they form part of

insofar that this shall not adversely affect the rights and

freedom of others.".

24. Regulation 33 of the principal regulations shall be amended

as follows

(a) sub-regulation (1) thereof shall be substituted by the

following new sub-regulation

"(1) The Registrar shall issue a certificate of

registration upon the issuance of a letter of approval or any

other document, by whatever name it is referred to,

evidencing the approval in principle relating to the issuance

of a permit referred to in regulation 35 and following the

submission of the following documentation

(a) an authenticated copy of the constitutive

instrument with all binding regulations and byelaws,

together referred to as the "statute";

(b) a statement signed by the legal

representative of the association indicating the

composition of the Board of Administrators which

shall include the roles of Key Officer, President,

Treasurer and General Secretary; and

(c) an authenticated copy of the identity card

of each of the administrators.";

(b)

sub-regulations (3) and (4) thereof shall be

deleted.

25. Regulation 34 of the principal regulations shall be deleted.

26. Immediately after sub-regulation (4) of regulation 35 of the

principal regulations there shall be added the following new sub-

regulations

"(5) No person may access any premises on which a

certificate of approval to cultivate the cannabis plant and, or to

produce, process, store and distribute cannabis in accordance

with sub-regulations (1) and (2), unless such person is an

administrator, an employee, a member or an approved service

provider of the association in whose name the approval was

issued

Provided that a member of an association who is not

an administrator, an employee or an approved service provider

may only access the premises if the certificate of approval

denotes that the premises may be used for the distribution of

cannabis

Provided further that the Authority may grant a

derogation from this regulation in exceptional circumstances.

(6) An association shall not cultivate the cannabis plant

or hold a stock of cannabis in excess of the amounts stipulated in

the Act and the Responsible Use of Cannabis (Possession of S.L. 628.02.

Cannabis by Associations) Regulations issued in this regard, or

in any binding instrument or written instruction issued by the

Authority.".

27. Sub-regulation (3) of regulation 42 of the principal Amends

regulations shall be substituted by the following new sub-regulation: regulation

the principal

regulations.

"(3) If within forty-five (45) days of the submission of the

required documentation, the application has not been decided

upon by the Authority, the applicants shall have the right to

appeal to the Tribunal in accordance with the provisions of Part

XV.".

28. Regulation 43 of the principal regulations shall be amended Amends

regulation 43 of

as follows

the principal

regulations.

(a)

paragraph (c) of sub-regulation (1) thereof shall be

substituted by the following new sub-regulation

"(c) if the premises are located at a distance which is

less than two hundred and fifty meters (250m) from the

entrance of a school, a sports facility, a club or youth

centre;";

(b)

paragraph (b) of sub-regulation (2) thereof shall be

amended as follows

(i) sub-paragraph (vii) thereof shall be substituted

by the following new sub-paragraph

"(vii) sport schools;";

(ii) sub-paragraph (x) thereof shall be substituted

by the following new sub-paragraph

"(x) further

and,

or

higher

education

institutions; and";

(iii) in the proviso thereof the words "of this

definition." shall be substituted by the words "of this

definition:" and immediately thereafter there shall be added

the following new proviso

"Provided further that a property shall

continue to be considered compliant with these

regulations if a school, club, youth centre or sports

facility are opened in its vicinity following the

issuing of a conditional approval that it may be used

by an association.";

(c)

sub-regulation (4) thereof shall be deleted.

29. Regulation 44 of the principal regulations shall be amended

as follows

(a) sub-regulation (1) thereof shall be substituted by the

following new sub-regulation

"(1) An association shall at all times have one (1)

Key Officer who shall be a member of the Board of

Administrators and whose appointment shall be approved

by the Authority.";

(b) sub-regulation (2) thereof shall be substituted by the

following new sub-regulation

"(2) The Authority shall not approve an application

for the appointment of a Key Officer unless it is satisfied

that such person is fit and proper to fulfil his obligations

and any requirements, including any eligibility criteria

established by the Authority for the appointment of a Key

Officer in any binding instrument.";

(c) immediately after sub-regulation (2) thereof, as

substituted, there shall be added the following new sub-

regulation

"(3) The Key Officer shall be the sole person vested

with the legal and judicial representation of the

association.".

30. Regulation 45 of the principal regulations shall be

substituted by the following new sub-regulation

A Key Officer shall

"Functions of

(a) personally supervise the operations of

the association;

(b) be the main contact person of the

Authority for the association which he represents;

and

(c) shall ensure that the association

complies with all applicable laws and regulations,

the conditions of the permit and any binding

instruments.".

31. Regulation 46 of the principal regulations shall be Substitutes

substituted by the following new regulation

The Authority shall revoke an approval

granted to a Key Officer if such officer

(a) ceases to be resident in Malta;

(b) ceases to be an administrator of an

association;

(c) fails to comply with any order or

direction issued by the Authority; or

(d) ceases to be, in the Authority’s sole

discretion, a fit and proper person.".

32. Regulation 47 of the principal regulations shall be Substitutes

substituted by the following new sub-regulation

(1) A Key Officer may not be removed or be

substituted without the written consent of the Authority.

(2) In the case of the death, resignation or

incapacitation of the Key Officer, or if the Key Officer is

disqualified in accordance with regulation 15, the Board

of Administrators shall immediately notify the Authority

of such circumstance and shall provide the details of one

(1) of the administrators who shall temporarily assume

the functions and responsibilities of key officer until such

time as a new key officer is approved by the Authority.

(3) An application for the appointment of a new

key officer of the association shall be made by the

association as soon as practicable and in any case by not

later than one (1) month from the date of the occurrence

of the circumstances referred to in sub-regulation (2).".

33. Sub-regulation (1) of regulation 49 of the principal Amends

regulations shall be amended as follows

(a) immediately after the words "any binding instrument"

there shall be added the words ", and shall submit the records to

the Authority on the prescribed form by not later than two (2)

days following the completion of each stage of the cultivation,

harvesting, processing and distribution process:";

(b)

paragraph (a) thereof shall be deleted;

(c)

paragraph (b) thereof shall be amended as follows

(i) sub-paragraph (iii) thereof shall be substituted

by the following new sub-paragraph

"(iii) the exact location where each stage of the

cultivation process takes place;";

(ii) in sub-paragraph (v) thereof immediately after

the words "of agriculture" there shall be added the words

"and the environmental conditions maintained during the

cultivation process;";

(iii) in sub-paragraph (vi) thereof the words ", the

wasting plant material and its destruction" shall be

substituted by the word "cannabis;"

(iv) in sub-paragraph (vii) thereof the words "in

sub-paragraph (vi), and" shall be substituted by the words

"in sub-paragraph (vi);"

(v) in sub-paragraph (viii) the words "where the

distribution takes place." shall be substituted by the words

"where the distribution takes place;" and immediately

thereafter there shall be added the following new sub-

paragraphs

"(ix) the cannabinoid profile (strain name) of

each plant cultivated; and

(x) the amount of waste generated and

relevant details about its destruction, as the Authority

may prescribe.";

(d) paragraph (c) thereof shall be substituted by the

following new paragraph

"(c) the

quantity

of

cannabis

distributed

disaggregated by each transaction and the security seal

identification number for each transaction.".

34. Regulation 50 of the principal regulations shall be deleted.

Deletes

regulation 50 of

the principal

regulations.

35. Regulation 56 of the principal regulations shall be amended Amends

regulation 56 of

as follows

the principal

regulations.

(a) in paragraph (b) thereof the words "binding

instrument:" shall be substituted by the words "binding

instrument;" and the proviso thereof shall be deleted;

(b) immediately after paragraph (b) thereof, as amended,

there shall be added the following new paragraph

"(c) to limit aspects of its operations until it is

satisfied that an identified or potential non-compliance or

risk of a breach of the regulations has been addressed.".

36. Sub-regulation (3) of regulation 58 of the principal Amends

regulation 58 of

regulations shall be amended as follows

the principal

regulations.

(a) in the first proviso thereof the words "documents or

other things relate:" shall be substituted by the words

"documents or other things relate.";

(b)

the second proviso thereof shall be deleted.

37. Immediately after sub-regulation (3) of regulation 59 of the Amends

principal regulations there shall be added the following new sub- regulation

the principal

regulation

regulations.

"(4) If

(a) the administrators of an association

refuse to grant access to the property;

(b) the administrators of an association are

unreachable; or

(c) the association is deemed to be in

disarray following the resignation or incapacitation

of all administrators,

the Authority may, after obtaining a warrant from a

magistrate, enter any premises managed by an

association.".

38. Sub-regulation (2) of regulation 60 of the principal Amends

regulations shall be substituted by the following new sub-regulation: regulation

the principal

regulations.

"(2) An association or any person as referred to in

sub-regulation (1) who fails to cooperate with the Authority

or the orders of an inspector shall be guilty of an offence as

established in the Second Schedule.".

39. In the second proviso to paragraph (d) of regulation 63 of

the principal regulations the words "made public." shall be substituted

by the words "made public;" and immediately thereafter there shall be

added the following new paragraph

"(e) provisionally take custody and seal cannabis held by

an association at its premises or provide for its safekeeping at a

secure storage location elsewhere.".

40. Sub-regulation (1) of regulation 64 of the principal

regulations shall be amended as follows

(a) in paragraph (d) thereof the words "a founding

member, administrator, key officer or any person who assumes

responsibility towards the Authority" shall be substituted by the

words "an administrator or any person who assumes

responsibility in relation to the Authority";

(b) in paragraph (m) thereof the words "the

Commissioner for Justice" shall be substituted by the words "a

competent court".

41. Regulation 67 of the principal regulations shall be amended

as follows

(a)

in sub-regulation (1) thereof the words "regulation

50" shall be substituted by the words "regulation 27";

(b)

in sub-regulation (2) thereof the words "by the

Authority." shall be substituted by the words "by the Authority:"

and immediately thereafter there shall be added the following

new proviso

"Provided that an association which fails to

settle the amounts due within the timeframes stipulated in

this regulation shall also pay interest at the rate of zero

point six percent (0.6%) per month on the amount due.".

42. Regulation 78 of the principal regulations shall be

substituted by the following new regulation

78. The Court of Magistrates in its criminal

"Offences

triable by the

jurisdiction shall be competent to take cognizance of the

Courts of

Magistrates.

offences stipulated in the Second Schedule.".

43. Regulation 79 of the principal regulations shall be Substitutes

substituted by the following new regulation

79. (1) Any association which is guilty of an

offence stipulated in the Second Schedule shall on

conviction be liable to a fine (multa) of the amount

indicated for the offence for which it has been found

guilty.

(2) Any person, whether or not being a member,

officer, employee, administrator or otherwise connected

with an association, who engages in any conduct

prohibited under these regulations, including but not

limited to the advertising, promotion, or publicising of the

activities of an association, shall be guilty of an offence

and shall on conviction be liable to the same punishment

as that prescribed for the corresponding offence when

committed by an association.

(3) For the avoidance of doubt, the liability

established under these regulations shall apply

irrespective of whether the conduct was carried out on

behalf of, in collaboration with, or independently of the

Association concerned.".

44. In the Maltese version only, in the heading of Part XVII of Amends the

the principal regulations the word "Ċessjoni" shall be substituted by the heading

words "Rinunzja".

45. Regulation 81 of the principal regulations shall be amended Amends

as follows

(a) the marginal note thereof shall be substituted by the

following new marginal note

"Request for voluntary suspension or surrender of

permit or approval.";

(b) sub-regulation (1) thereof shall be substituted by the

following new sub-regulation

"(1) An association may request the Authority to

suspend or withdraw its permit by giving not less than

thirty (30) days notice in writing to the Authority and in

such manner as the Authority may prescribe.";

(c) sub-regulation (2) thereof shall be substituted by the

following new sub-regulation

"(2) The Authority may request the association to

provide it with such information and documentation as it

considers necessary for the purposes of assessing whether

to refuse or grant approval

Provided that the Authority may subject the

approval to certain conditions or may refuse to grant an

approval to safeguard the interests of the members of the

association, or on grounds of public policy or public

security or to safeguard the reputation of Malta.";

(d) sub-regulation (3) thereof shall be substituted by the

following new sub-regulation

"(3) Where the Authority gives its approval, such

suspension or surrender shall not affect any liability of the

association with respect to anything done or omitted to be

done, or for any amounts due which may have already

accrued, before the date of the voluntary suspension or

surrender.";

(e) immediately after sub-regulation (4) thereof there

shall be added the following new sub-regulation

"(5) Where the Authority approves a voluntary suspension

or surrender of a permit, the association shall destroy any

cannabis in its possession on the last day of operations in such

manner as the Authority may prescribe

Provided that the Authority may also seize such

cannabis at any point in time after it is notified that the

association intends to renounce its permit and provide for

its safekeeping at a secure storage location

Provided further that the Authority may provide

for the destruction of such cannabis or for other measures

as provided for in regulation 95.".

46. Regulation 82 of the principal regulations shall be deleted.

47. Sub-regulation (1) of regulation 83 of the principal

regulations shall be substituted by the following new sub-regulation

"(1) An association may be wound up voluntarily,

by order of the Court or by a special administrator

appointed by the Authority in accordance with Part XX.".

Regulation 84 of the principal regulations shall be amended Amends

as follows

(a) in sub-regulation (2) thereof the words "pursuant to

regulation 82" shall be deleted;

(b) sub-regulation (3) thereof shall be substituted by the

following new sub-regulation

"(3) The winding up of an association shall

commence only after a decision of the general meeting is

taken in accordance with regulation 21(4)

Provided that the administrators of an

association shall also be bound to wind up an association

(a) when the term for which it has been

created has expired;

(b) if the association has not been granted a

permit by the Authority within a period of one (1)

year from its registration or within such period as

the Authority may prescribe; or

(c) if following the granting of a permit, the

permit is withdrawn and a new permit is not granted

within a period of six (6) months from the

cancellation of the previous permit

Provided further that in such circumstances the

administrators shall call a general meeting of the

association and notify the members that the association

shall be wound up pursuant to this regulation.";

(c) in sub-regulation (5) thereof the words "An

association may be wound up voluntarily only if its assets exceed

its liabilities or its assets have been exhausted and all its debts

have been paid." shall be deleted;

(d)

sub-regulation (7) thereof shall be deleted.

Regulation 85 of the principal regulations shall be deleted.

Regulation 86 of the principal regulations shall be amended Amends

as follows

(a)

sub-regulation (1) thereof shall be substituted by the

following new regulation

"86. An association shall be wound up upon an

order of the Court following an application by any

interested party, for reasons valid at law in terms of the

provisions of the Second Schedule to the Civil Code that

shall apply to such associations or any other law.";

(b)

sub-regulations (2), (3) and (4) thereof shall be

deleted.

Regulation 87 of the principal regulations shall be deleted.

Regulation 88 of the principal regulations shall be deleted.

Regulation 89 of the principal regulations shall be

substituted by the following new regulation

89. (1) Upon receipt of a declaration by the

of registration.

administrators, liquidators or special administrators

appointed in accordance with Part XX, as the case may be,

or upon otherwise being satisfied that all assets of the

association have been appropriately exhausted as required

by law, the Registrar shall cancel the registration of the

association which shall thereby be struck off the Register

and the association shall thereafter cease to exist.

(2) Where the Registrar has reasonable cause to

believe that an association is not in operation, he may

send a letter to the association to enquire whether the

association is in operation. If the Registrar does not,

within one (1) month of sending such letter, receive any

notification, or if he receives confirmation from the

association or any member thereof, that the association is

not operational, he shall publish a notice in the Gazette

and in a daily newspaper to the effect that, at the

expiration of one (1) month from the date of the last

publication of the said notice, the association shall be

struck off the Register

Provided that a special administrator in

accordance with Part XX shall be appointed if the

Registrar has sufficient grounds to believe that the

association has not ceased operations or that its assets

have not been extinguished.".

Regulation 90 of the principal regulations shall be Substitutes

substituted by the following new regulation

90. (1) If it results that the assets or liabilities of

an association which has been cancelled were not

determined or dealt with, the Court shall, on the request of

an interested party, have the necessary powers to revive

the association, only for the purpose of determining and

dealing, paying out or liquidating such assets or liabilities.

In this case, upon the transmission of an official copy of

the order by the Registrar of the Courts to the Registrar,

the association shall be deemed to have continued in

existence as if the said association had not been struck off

Provided that such an application shall be

made before the expiration of five (5) years from the

publication of the notice of striking off.

(2) Subject to the provisions of sub-regulation (1),

the Court may give such directions and make such

provisions it deems appropriate for placing the association

and all other interested parties in the same position as they

were before the said association had been struck off.

(3) Notwithstanding that the name of the

association has been struck off the Register in accordance

with regulations 86 and 89, the liability, if any, of every

founder, administrator or member of the association shall

subsist and may be enforced as if the name of the

association had not been struck off the Register.".

Immediately after regulation 93 of the principal regulations Adds a new

there shall be added the following new regulation

94. (1) Any processing of personal data

conducted by the Authority in its capacity of a controller

in accordance with Article 4(7) of the Regulation (EU)

2016/679 of the European Parliament and of the Council

of 27 April 2016 on the protection of natural persons with

regard to the processing of personal data and on the free

movement of such data, and repealing Directive 95/46/EC

(General Data Protection Regulation), shall fully comply

with the provisions of Regulation (EU) 2016/679 and the

Data Protection Act, including the regulations made

thereunder and the fundamental rights and freedoms of

the data subjects.

(2) The controller shall process personal data as

necessary and required for the purpose of the performance

of its functions and, or the exercise of any of its powers

under these regulations.

(3) The processing of personal data shall be

proportionate to the aim pursued and respect the essence

of the right to data protection and provide for suitable and

specific measures to safeguard the fundamental rights and

the interests of the data subjects.

(4) The controller, while taking into account the

nature, scope, context and purposes of processing, as well

as the risks of varying likelihood and severity for the

rights and freedoms of the data subjects, both at the time

of the determination of the means for processing as well

as at the time of the processing itself, shall implement

appropriate technical and organisational measures, in an

effective manner and shall integrate the necessary

safeguards into the processing in order to protect the

rights of the data subjects and to ensure a level of security

appropriate to the risk.

(5) The access to personal data shall be reserved

exclusively to duly designated officers of the controller on

the basis of a role-base access control mechanism and

subject to confidentiality and, or professional secrecy

obligations, in order to prevent abuse, or unlawful access

to, or disclosure of personal data.

(6) The data protection officer designated by the

controller in accordance with Article 37(1)(a) of

Regulation (EU) 2016/679 of the European Parliament

and of the Council of 27 April 2016 on the protection of

natural persons with regard to the processing of personal

data and on the free movement of such data, and repealing

Directive 95/46/EC (General Data Protection Regulation)

shall be involved and duly consulted in a timely manner

on all matters in relation to the protection of personal data

processed for the purpose of these regulations.

(7) For the purposes of ensuring and being able to

demonstrate that the processing of personal data is

performed in accordance with the provisions of

Regulation (EU) 2016/679 of the European Parliament

and of the Council of 27 April 2016 on the protection of

natural persons with regard to the processing of personal

data and on the free movement of such data, and repealing

Directive 95/46/EC (General Data Protection Regulation),

the controller shall implement the appropriate data

protection policies, which policies shall be periodically

reviewed and updated where necessary.".

Immediately after regulation 93 of the principal Adds new Part

regulations, as added, there shall be added the following new Part

"Part XX

Appointment of Special Administrators

95. (1) If the Registrar has reasonable grounds to

believe that an association is not in a position to function

properly as stipulated by law and these regulations, he may

appoint a Special Administrator to take over the

management of the association for an interim period. Such

grounds include

(a) the sudden resignation, death or inability

of all administrators;

(b) if the Authority considers it necessary in

the public interest or if the provisions of these

regulations or any other law are not observed by the

association and the Authority deems the situation to

be so serious as to merit the issuing of such an order,

since it also deems that the ordinary remedies for

breach of law are not sufficient in the circumstances;

and

(c) if the administrators refuse to proceed

with the voluntary and orderly dissolution even

though an association is manifestly insolvent

Provided that the administrators of an

association may also request the Registrar to appoint

a special administrator if they are unable to organise

an orderly winding up of the operations and

subsequent dissolution of the association.

(2) In exceptional circumstances where the

Authority has a valid reason to believe that cannabis stored

in the property of an association is no longer being

monitored, the Authority may make an urgent application

before the competent court to obtain permission to make a

forced entry into the premises. When such authorisation is

granted, the Authority shall, upon gaining access to the

property, make a detailed inventory of the premises and

hand over its administration to the special administrator.

(3) The Authority shall specify the reasons for the

appointment of a special administrator and notify

interested parties by means of a notice in the Gazette and

on its electronic website.

(4) Special administrators shall have the powers to

carry out all functions usually carried out by the

administrators of the association.

(5) The remit of special administrators shall be to

hold elections for the appointment of new administrators

from amongst the members of the association and, if no

interest is shown, to proceed with the winding up and

dissolution of the association

Provided that special administrators may, if

they deem appropriate to safeguard the interests of

creditors, delay the winding up of an association

notwithstanding the lack of interest from the members to

appoint new administrators

Provided further that if in the opinion of the

special administrators it would be more prudent to proceed

with the immediate winding up of the association, they

shall have the powers to proceed accordingly without

consulting with the members. In such cases, the provisions

of the statute and these regulations about the members’

consent for the dissolution of an association shall not

apply.

(6) If an association is wound up in accordance

with this regulation, the special administrator shall observe

the ranking order of creditors as provided by law when

making payments to the creditors.

(7) Following the notification of its intention to

appoint a special administrator, the Authority shall have

the power to provisionally seal cannabis held by the

association and to provide for its storage in a secure

location.

(8) The provisions of regulation 81(5) regarding

the destruction of remaining cannabis shall apply if the

operating permit of the association is revoked.

(9) If an association is dissolved, the provisions of

regulation 84(6) shall apply if its assets exceed the

liabilities.".

The Second Schedule to the principal regulations shall be Substitutes the

substituted by the following new Schedule

"SECOND SCHEDULE

Offences

(1) Any person or association which, in breach of

regulation 5, permits, transfers or facilitates the transfer of

ownership, management or membership of an association

by, or to a legal entity, shall be guilty of an offence and

shall on conviction be liable to a fine (multa) of fifty

thousand euro (€50,000), or to a fine (multa) equivalent to

twice the amount of revenue generated during the period

when the legal entity formed part of the ownership,

management or membership of the association, whichever

is the higher.

(2) Any person or association which, in breach of

regulation 7

(a) distributes income to administrators,

employees, or any other private interests, except as

expressly permitted by these regulations or by the

Authority, pays remuneration, fees or other

compensation for goods or services at higher than

market rates as determined by the Authority;

(b) otherwise causes or permits the

distribution of the association’s income in a manner

that violates the not-for-profit principles established

in these regulations, shall be guilty of an offence and

shall on conviction be liable to a fine (multa) of not

less than two thousand euro (€2,000) and not more

than fifty thousand euro (€50,000), or double the

compensation distributed, whichever is the higher.

(3) Without prejudice to any other applicable law,

any person or association, who in breach of the provisions

of regulation 8(1) distributes cannabis to persons who are

not members of the association, shall be guilty of an

offence and shall on conviction be liable to a fine (multa)

of not less than two thousand euro (€2,000) and not more

than fifty thousand euro (€50,000), or to a fine (multa)

equivalent to twice the amount of revenue generated from

the activity, whichever is the higher.

(4) Any person or association which, in breach of

regulation 8(1) and (2), permits the premises of the

association to be used for any activity that is not directly

related to the cultivation and distribution of cannabis in

accordance with these regulations, shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than one thousand euro (€1,000) and not more

than fifty thousand euro (€50,000), or to a fine (multa)

equivalent to twice the amount of revenue generated from

the activity, whichever is the higher

Provided that without prejudice to the

applicability of any other laws or regulations, where such

unauthorised activity includes the distribution or sale of

alcohol, the offender shall be liable to a fine (multa) of not

less than twenty thousand euro (€20,000).

(5) Any person or association which, in breach of

regulation 8(2)(b)(i), distributes cannabis

(a) that has not been submitted for testing at

a laboratory duly authorised and approved by the

Authority in accordance with any applicable binding

instrument; or

(b) without receiving confirmation from the

Authority that the results of such testing confirm the

product’s compliance with safety and quality

standards criteria as established by the Authority,

shall be guilty of an offence and shall on conviction

be liable to a fine (multa) of not less than two thousand

euro (€2,000) and not more than fifty thousand euro

(€50,000), or to a fine (multa) equivalent to twice the

amount of revenue generated from the cannabis

distributed, whichever is the higher.

(6) Without prejudice to any other applicable law,

any person or association which, in breach of regulations

8(2)(b)(ii) and 35(2), distributes cannabis from a location

or premises not duly approved for such purpose by the

Authority, shall be guilty of an offence and shall be liable

on conviction to a fine (multa) of not less than ten

thousand euro (€10,000) and not more than fifty thousand

euro (€50,000), or to a fine (multa) equivalent to twice the

amount of revenue generated from the activity, whichever

is the higher

Provided that where such distribution takes

place from a property or location not compliant with

regulation 43, the offender shall be liable to a fine (multa)

of not less than twenty thousand euro (€20,000).

(7) Any person or association which, in breach of

regulation 8(2)(b)(iii), distributes cannabis that

(a) is not packaged in containers of the

design, size, and type approved by the Authority; or

(b) is not labelled as prescribed by the

Authority,

shall be guilty of an offence and shall on conviction

be liable to a fine (multa) of not less than one thousand

euro (€1,000) and not more than twenty thousand euro

(€20,000).

(8) Any person or association which, in breach of

regulation 8(2)(b)(iv), distributes cannabis that is not

sealed with the numbered security seals prescribed or

provided by the Authority, shall be guilty of an offence

and shall on conviction be liable to a fine (multa) of not

less than two thousand euro (€2,000) and not more than

fifty thousand euro (€50,000), or to a fine (multa)

equivalent to twice the amount of revenue generated from

the cannabis distributed, whichever is the higher.

(9) Any person or association which, in breach of

regulation 8(2)(b)(v), distributes cannabis products which

have not been approved by the Authority, shall be guilty of

an offence and shall be liable on conviction to a fine

(multa) of not less than ten thousand euro (€10,000) and

not more than fifty thousand euro (€50,000), or to a fine

(multa) equivalent to twice the amount of revenue

generated from the activity, whichever is the higher.

(10) Any person or association which, in breach of

regulation 8(2)(b)(vi), permits or allows the premises of an

association to cause a nuisance to third parties, including

loitering, shall be guilty of an offence and shall on

conviction, be liable to a fine (multa) of not less than one

thousand euro (€1,000) and not more than ten thousand

euro (€10,000).

(11) Any person or association which, in breach of

regulation 8(3)

(a) promotes or advertises the name, logo, or

activities of an association, whether directly or

indirectly and whether physically or through any

digital or electronic medium; or

(b) publishes any words, signs, symbols, or

designs related to cannabis culture in a manner that

may reasonably be associated with, or conferring a

benefit upon, an association,

shall be guilty of an offence and shall on conviction

be liable to a fine (multa) of not less than one thousand

euro (€1,000) and not more than fifty thousand euro

(€50,000).

(12) Any person or association which, in breach of

regulation 8(4), distributes more than seven grams (7g) of

cannabis to a member in a single day, or more than fifty

grams (50g) in a calendar month, or their equivalent

amount as stipulated in a binding instrument, shall be

guilty of an offence and shall be liable on conviction to a

fine (multa) of not less than one thousand euro (€1,000)

and not more than twenty thousand euro (€20,000) or

double the income generated from the additional

distribution over and above the stipulated limits,

whichever is the higher

Provided that the punishment established under

this item shall only be applicable where the Court is

satisfied that the breach occurred as a result of negligence

and that no circumstances indicative of trafficking or other

criminal activity were present, in such case, the provisions

of the Dangerous Drugs Ordinance shall apply.

(13) Any person or association which, in breach of

regulations 9 or 71, grants or receives a loan without the

prior approval of the Authority shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than five thousand euro (€5,000) and not more

than fifty thousand euro (€50,000), or to a fine (multa)

equivalent to twice the amount of revenue generated by the

association until the loan was repaid, whichever is the

higher.

(14) Any person or association which, in breach of

regulation 12, permits, enables, assists or otherwise

facilitates a person who has not been ordinarily resident in

Malta for the preceding five (5) consecutive years to

(a) establish or otherwise establish an

association, whether directly or through agents; or

(b) provide, contribute or otherwise channel

funds or other financial support to an association,

whether directly or indirectly,

shall be guilty of an offence and shall on conviction,

be liable to a fine (multa) of not less than ten thousand

euro (€10,000) and not more than fifty thousand euro

(€50,000), or to a fine (multa) equivalent to twice the

amount donated or income generated from such prohibited

conduct, whichever is the higher.

(15) Any person or association which, in breach of

regulation 13, establishes or maintains an organisational

structure for an association that does not conform with the

structure approved by the Authority or established in any

binding instrument shall be guilty of an offence and shall

be liable on conviction to a fine (multa) of not less than

one thousand euro (€1,000) and not more than ten

thousand euro (€10,000).

(16) Any person or association which, in breach of

regulation 14(1) or any binding instrument or written

instruction issued by the Authority, fails to take timely

action to fill a vacancy on the Board of Administrators and

permit the association to continue operations with fewer

than three (3) administrators shall be guilty of an offence

and shall be liable on conviction to a fine (multa) of not

less than one thousand euro (€1,000) and not more than

twenty thousand euro (€20,000).

(17) Any person or association which, in breach of

regulation 14(2), appoints or facilitates the appointment of

a person who has not been resident in Malta for the

preceding five (5) consecutive years as an administrator of

an association, shall be guilty of an offence and shall be

liable on conviction to a fine (multa) of not less than ten

thousand euro (€10,000), and not more than fifty thousand

euro (€50,000), or to a fine (multa) equivalent to twice the

amount of revenue generated by the association during the

person’s tenure, whichever is the higher.

(18) Any person or association which, in breach of

regulation 14(3), appoints or facilitates the appointment of

a person who is not a member of the association as an

administrator of the association shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than one thousand euro (€1,000) and not more

than ten thousand euro (€10,000)

Provided that if the appointed person is an

administrator of more than one association concurrently,

the person or association shall be liable to a fine (multa) of

fifty thousand euro (€50,000), or to a fine (multa)

equivalent to twice the amount of revenue generated by the

association during the person’s tenure, whichever is the

higher.

(19) Any person or association which, in breach of

regulation 14(4), appoints any person as an administrator,

key officer, or to any other management position within an

association without the prior written approval of the

Authority shall be guilty of an offence and shall be liable

to a fine (multa) of not less than one thousand euro

(€1,000) and not more than twenty thousand euro

(€20,000).

(20) Any person or association which, in breach of

regulation 15, appoints or facilitates the appointment of a

person who had committed a crime in the preceding ten

(10) years as an administrator, employee or service

provider, shall be guilty of an offence and shall be liable to

a fine (multa) of not less than five thousand euro (€5,000)

and not more than fifty thousand euro (€50,000), or to a

fine (multa) equivalent to twice the amount of revenue

generated during the appointed person’s tenure, whichever

is the higher.

(21) Any person or association which adopts or

causes the adoption of a statute in breach of regulation 17

or any applicable binding instrument shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than five hundred euro (€500) and not more

than five thousand euro (€5,000).

(22) Any person or association which in breach of

the provisions of regulation 18(1)

(a) enrols members in an association which

is not in possession of a valid permit issued in

accordance with regulation 35; or

(b) enrols more members than allowed in its

permit,

shall be guilty of an offence and shall be liable on

conviction to a fine (multa) of not less than five hundred

euro (€500) and not more than five thousand euro

(€5,000).

(23) Any person or association which, in breach of

regulation 18(2), admits a person under the age of eighteen

(18) years as a member of the association shall be guilty of

an offence and shall be liable on conviction to a fine

(multa) of not less than three thousand euro (€3,000) and

not more than ten thousand euro (€10,000) for each minor

so admitted.

(24) Any person or association which, in breach of

regulations 18(3) or 30, adopts a structure that

distinguishes between different categories of members or

includes segregation of members within an association,

shall be guilty of an offence and shall be liable on

conviction to a fine (multa) of not less than one thousand

euro (€1,000) and not more than twenty thousand euro

(€20,000).

(25) Any person or association which, in breach of

regulation 18(4)

(a) hinders or obstructs the participation of

members in a general meeting of the association; or

(b) hinders or denies a member his right to

vote, or allows a member to vote more than once,

shall be guilty of an offence and shall be liable on

conviction to a fine (multa) of not less than one thousand

euro (€1,000) and not more than twenty thousand euro

(€20,000).

(26) Any person or association which, in breach of

regulation 18(5), admits or facilitates the admission of

persons who are not resident in Malta as members of an

association, shall be guilty of an offence and shall be liable

on conviction to a fine (multa) of not less than two

thousand euro (€2,000) and not more than fifty thousand

euro (€50,000), or to a fine (multa) equivalent to twice the

amount of revenue generated by the association from the

enrolled members, whichever is the higher.

(27) Any person or association which, in breach of

regulation 18(6), admits or facilitates the admission of

more than five hundred (500) persons as members of the

association, shall be guilty of an offence and shall be liable

to a fine (multa) of not less than one thousand euro

(€1,000) and not more than fifty thousand euro (€50,000),

or to a fine (multa) equivalent to twice the amount of

revenue generated by the association from the additional

enrolled members, whichever is the higher.

(28) Any person or association which, in breach of

regulation 19, knowingly admits or facilitates the

admission of a person in more than one association

concurrently, shall be guilty of an offence and shall be

liable on conviction to a fine (multa) of not less than one

thousand euro (€1,000) and not more than ten thousand

euro (€10,000).

(29) Any person which, in breach of regulation 19,

becomes or attempts to become, a member of more than

one association concurrently, shall be guilty of an offence

and shall be liable on conviction to a fine (multa) of not

less than five hundred euro (€500) and not more than two

thousand euro (€2,000).

(30) Any person or association which, in breach of

regulation 20, transfers or facilitates the transfer of

membership within an association to another person, shall

be guilty of an offence and shall be liable on conviction to

a fine (multa) of not less than five hundred euro (€500)

and not more than two thousand euro (€2,000).

(31) Any person or association which, in breach of

regulation 21(2), fails to give proper and timely notice of a

general meeting of the association, shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than one thousand euro (€1,000) and not more

than ten thousand euro (€10,000).

(32) Any person or association which, in breach of

regulation 21(3) or any other binding instrument, proceeds

with the general meeting of an association in the absence

of the required quorum, shall be guilty of an offence and

shall be liable on conviction to a fine (multa) of not less

than one thousand euro (€1,000) and not more than ten

thousand euro (€10,000).

(33) Any person or association which, in breach of

regulation 21(4), effects the dissolution of an association

without securing the requisite support of at least seventy-

five per cent (75%) of the members during a general

meeting shall be guilty of an offence, and shall be liable on

conviction to a fine (multa) of not less than five thousand

euro (€5,000) and not more than fifty thousand euro

(€50,000).

(34) Any person or association which, in breach of

regulation 21(5), denies members access to information to

which they are entitled, shall be guilty of an offence and

shall be liable on conviction to a fine (multa) of not less

than five hundred euro (€500) and not more than two

thousand euro (€2,000).

(35) Any person or association who, in breach of

regulation 21(6), acts or permits a member to act as a

proxy for more than two (2) other members during a

general meeting of the association, shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than five hundred euro (€500) and not more

than five thousand euro (€5,000).

(36) Any person or association which, in breach of

regulation 21(7) or any other binding instrument, fails to

convene an annual general meeting of the association,

thereby the administrator subsists in office beyond their

tenure, shall be guilty of an offence and shall be liable on

conviction to a fine (multa) of not less than five thousand

euro (€5,000) and not more than fifty thousand euro

(€50,000), or to a fine (multa) equivalent to twice the

amount of income earned by such administrator from their

relationship with the association, whether directly or

indirectly, following the lapse of their tenure.

(37) Any person or association which, in breach of

regulation 22(1), fails to maintain a complete and up-to-

date register of the association’s members, shall be guilty

of an offence and shall be liable on conviction to a fine

(multa) of not less than five hundred euro (€500) and not

more than fifty thousand euro (€50,000), or to a fine

(multa) equivalent to twice the amount of revenue

generated from the members whose records were missing,

whichever is the higher.

(38) Any person or association which, in breach of

regulation 22(2), fails to submit information regarding the

distribution of cannabis to members within the deadlines

established by the Authority, shall be guilty of an offence

and shall be liable on conviction to a fine (multa) of not

less than five hundred euro (€500) and not more than

twenty thousand euro (€20,000).

(39) Any person or association which, in breach of

regulation 22(3), destroys or facilitates the destruction of

any part of the register of members prior to the expiration

of the retention period prescribed by law, shall be guilty of

an offence and shall be liable on conviction to a fine

(multa) of not less than five thousand euro (€5,000) and

not more than twenty thousand euro (€20,000).

(40) Any person or association which, in breach of

regulation 23(1), employs or engages any person to carry

out works or services on the premises of an association

without registering such person with the Authority and

obtaining the requisite approval from the Authority, shall

be guilty of an offence and shall be liable on conviction to

a fine (multa) of not less than one thousand euro (€1,000)

and not more than ten thousand euro (€10,000).

(41) Any person or association which, in breach of

regulation 23(2), makes or authorises payments for goods

or services without obtaining a valid fiscal receipt for such

payment, shall be guilty of an offence and shall be liable

on conviction to a fine (multa) of not less than five

hundred euro (€500) and not more than five thousand euro

(€5,000).

(42) Any person or association which, in breach of

regulation 23(3), makes or authorises payments for goods

or services to a person or entity who are resident or

registered in a country outside the European Economic

Area or another jurisdiction approved by the Authority,

shall be guilty of an offence and shall be liable on

conviction to a fine (multa) of not less than one thousand

euro (€1,000) and not more than ten thousand euro

(€10,000).

(43) Any person or association which, in breach of

regulation 24(1), amends or facilitates the amendment of

an association’s statute without first obtaining the approval

of the members during a general meeting, shall be guilty of

an offence and shall be liable on conviction to a fine

(multa) of not less than one thousand euro (€1,000) and not

more than ten thousand euro (€10,000).

(44) Any person or association which, in breach of

regulation 24(2), fails to submit an amended statute of an

association to the Authority, shall be guilty of an offence

and shall be liable on conviction to a fine (multa) of five

hundred euro (€500).

(45) Any person or association which, in breach of

the provisions of regulation 27(1), fails to ensure that the

accounts of the association are duly audited on an annual

basis, shall be guilty of an offence and shall be liable on

conviction to a fine (multa) of not less than ten thousand

euro (€10,000) and not more than fifty thousand euro

(€50,000).

(46) Any person or association which, in breach of

regulation 27(2), fails to keep or maintain a register of the

assets of an association, shall be guilty of an offence and

shall be liable on conviction to a fine (multa) of not less

than one thousand euro (€1,000) and not more than five

thousand euro (€5,000).

(47) Any person or association which, in breach of

regulation 27(4), fails to adhere to the deadline for the

submission of an association’s audited accounts, shall be

guilty of an offence and shall be liable on conviction to a

fine (multa) of not less than five hundred euro (€500) and

not more than five thousand euro (€5,000).

(48) Any person or association which, in breach of

regulation 27(5), fails to adhere to the deadline for the

submission of an association’s quarterly financial

statements, shall be guilty of an offence and shall be liable

on conviction to a fine (multa) of not less than five

hundred euro (€500) and not more than ten thousand euro

(€10,000).

(49) Any person or association which, in breach of

the provisions of regulation 29, establishes or facilitates

the establishment of a legal entity partially or wholly

owned or managed by an association, shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than ten thousand euro (€10,000) and not more

than fifty thousand euro (€50,000), or to a fine (multa)

equivalent to twice the income derived from the legal

entity so established.

(50) Any person or association which, in breach of

regulation 35(3) of these regulations or any binding

instrument or written instruction issued by the Authority

cultivates, processes or transports cannabis plants in a

manner not in conformity with the conditions established

or authorised by the Authority, shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than five hundred euro (€500) and not more

than ten thousand euro (€10,000).

(51) Any person or association which, in breach of

regulation 35(5), without the prior written approval of the

Authority

(a) allows individuals who are not members

of the association to access the association’s

premises; or

(b) permits

members

who

are

not

administrators, employees, or authorised service

providers to access the association’s cultivation site,

shall be guilty of an offence and shall be liable on

conviction to a fine (multa) of not less than one thousand

euro (€1,000) and not more than twenty thousand euro

(€20,000).

(52) Any person or association which, in breach of

regulation 35(6), cultivates cannabis plants or holds a

stock of cannabis in quantities exceeding those authorised

by the Authority, shall be guilty of an offence and shall be

liable on conviction to a fine (multa) of not less than one

thousand euro (€1,000) and not more than twenty thousand

euro (€20,000).

(53) Any person or association which, in breach of

regulations 44(1) or 47(3), fails to ensure that an

association appoints a key officer compliant with the

requirements established in these regulations and any

applicable binding instrument or written instruction issued

by the Authority, shall be guilty of an offence and shall be

liable on conviction to a fine (multa) of not less than two

thousand euro (€2,000) and not more than twenty thousand

euro (€20,000).

(54) Any person or association which, in breach of

regulation 44(3), vests the legal and judicial representation

of an association in any person who is not the appointed

key officer, shall be guilty of an offence and shall be liable

on conviction to a fine (multa) of not less than two

thousand euro (€2,000) and not more than twenty thousand

euro (€20,000).

(55) Any person or association which, in breach of

the provisions of regulation 47(1), removes or replaces the

key officer of an association without the prior approval of

the Authority, shall be guilty of an offence and shall be

liable on conviction to a fine (multa) of not less than five

thousand euro (€5,000) and not more than twenty thousand

euro (€20,000).

(56) Any person or association which, in breach of

regulation 48(2), appoints a person to a designated key

position within an association without having obtained the

prior approval of the Authority, shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than one thousand euro (€1,000) and not more

than twenty thousand euro (€20,000).

(57) Any person or association which, in breach of

regulation 49(1), fails to maintain accurate records relating

to the cannabis cultivation cycles, stock of cannabis or the

use of security seals issued or prescribed by the Authority,

shall be guilty of an offence and shall be liable on

conviction to a fine (multa) of not less than five hundred

euro (€500) and not more than twenty thousand euro

(€20,000).

(58) Any person or association which, in breach of

the provisions of regulation 49(2), destroys the records of

an association’s cultivation cycles, stock of cannabis or the

use of the security seals provided or prescribed by the

Authority prior to the lapse of the prescribed period of ten

(10) years, shall be guilty of an offence and shall be liable

on conviction to a fine (multa) of not less than one

thousand euro (€1,000) and not more than twenty thousand

euro (€20,000).

(59) Any person or association which, in breach of

regulation 51, fails to comply with any of the conditions

established in the association’s operating permit, shall be

guilty of an offence and shall be liable on conviction to a

fine (multa) of not less than five hundred euro (€500) and

not more than twenty thousand euro (€20,000).

(60) Any person or association which, in breach of

regulation 52, fails to comply with the rules, directives or

guidelines issued by the Authority by means of a binding

instrument, shall be guilty of an offence and shall be liable

on conviction to a fine (multa) of not less than five

hundred euro (€500) and not more than twenty thousand

euro (€20,000).

(61) Any person or association which, in breach of

regulation 53, fails to deploy a digital centralised data

collection system introduced by the Authority, shall be

guilty of an offence and shall be liable on conviction to a

fine (multa) of not less than five hundred euro (€500) and

not more than ten thousand euro (€10,000).

(62) Any person or association which, in breach of

regulation 60(2), refuses to fully and truthfully cooperate

with officials of the Authority or fails to comply with any

instruction issued by the Authority, shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than one thousand euro (€1,000) and not more

than twenty thousand euro (€20,000).

(63) Any person or association which, in breach of

regulation 69(2), encourages or induces members of an

association to consume cannabis or otherwise takes

measures that may stimulate the demand for cannabis,

shall be guilty of an offence and shall be liable on

conviction to a fine (multa) of not less than one thousand

euro (€1,000) and not more than twenty thousand euro

(€20,000).

(64) Any person or association which, in breach of

regulation 69(3), fails to adopt harm reduction

mechanisms, shall be guilty of an offence and shall be

liable on conviction to a fine (multa) of not less than five

thousand euro (€5,000) and not more than twenty thousand

euro (€20,000).

(65) Any person or association which, in breach of

regulation 70, fails to adopt a code of conduct governing

the internal functioning of an association, shall be guilty of

an offence and shall be liable on conviction to a fine

(multa) of not less than five hundred euro (€500) and not

more than five thousand euro (€5,000).

(66) Any person or association which, in breach of

regulation 84(6), disposes of the assets of an association

undergoing dissolution in favour of any person or entity

other than the Government of Malta, shall be guilty of an

offence and shall be liable on conviction to a fine (multa)

of not less than five thousand euro (€5,000) and not more

than fifty thousand euro (€50,000), or to a fine (multa)

equivalent to double the value of the assets so disposed of.

€4.05