Regolamenti dwar l-Użu Responsabbli tal-Kannabis (Liċenzjar tal-Organizzazzjonijiet)

ORGANISATIONS)

cSUBSIDIARY LEGISLATION 628.01

RESPONSIBLE USE OF CANNABIS (LICENSING OF

ORGANISATIONS) REGULATIONS

10th March, 2023

LEGAL NOTICE 56 of 2023, as amended by Legal Notice 44 of

2026. Part I

Preliminary

The title of these regulations is the Responsible Use of

Cannabis (Licensing of Organisations) Regulations.

Permit Categories

Category 1

Associations with a maximum of

fifty (50) members.

Category 2

Associations whose membership

is between fifty-one (51) and one

hundred (100) members.

Category 3

Associations whose membership

is between one hundred and one (101)

and two hundred and fifty (250)

members.

Category 4

Associations whose membership

is between two hundred and fifty one

(251) and three hundred and fifty (350)

members.

Category 5

Associations whose membership

is between three hundred and fifty one

(351) and five hundred (500) members.

Substituted by: 

The scope of these regulations is to implement the

provisions of article 7A of the Drug Dependence (Treatment not

Imprisonment) Act.

L.N. 44 of 2026.

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

(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

ORGANISATIONS)

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

ORGANISATIONS)

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

ORGANISATIONS)

(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.

ORGANISATIONS)

(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,

ORGANISATIONS)

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).

ORGANISATIONS)

(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).

ORGANISATIONS)

(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

ORGANISATIONS)

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

ORGANISATIONS)

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).

ORGANISATIONS)

(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

ORGANISATIONS)

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.

ORGANISATIONS)

In these regulations, unless the context otherwise

requires

"Act" means the Drug Dependence (Treatment not

Imprisonment) Act;

"administrator" means any person who is appointed or

elected on the Board of Administration of an association in

accordance with Part II;

"association" means an association as defined in

regulation 5 and as set up in terms of these regulations and

article 7A of the Act;

"Authority" means the Authority on the Responsible Use

of Cannabis as established by article 3 of the Authority on the

Responsible Use of Cannabis Act;

"cannabis" means Cannabis as defined in Article 2(1) of

the Dangerous Drugs Ordinance;

"founding member" means any person who is involved in

the establishment of an association or holds out himself to third

parties as such, and after the establishment of the association

the first associating member, and "founding members" shall be

construed accordingly;

"non-profit making" means non-profit making as defined

in regulation 7(2);

"Register" means the Register of Cannabis Harm

Reduction Associations in accordance with Part IV;

ORGANISATIONS)

"Registrar" means the Registrar for Cannabis Harm

Reduction Associations in terms of Part III of these regulations;

"Tribunal" means the Administrative Review Tribunal

established by article 5 of the Administrative Justice Act.

Part II

Of Associations

Fees and Contributions

Part A

In accordance with the provisions of regulation 67, an

association shall pay to the Authority a fixed annual licence fee in

respect to its permit category, as outlined below

Permit Category

Licence Fee

Category 1 (up to 50

Euro 1,000

members)

Category 2 (51-100

Euro 5,000

members)

Category 3 (101-250

Euro 13,000

members)

Category 4 (251 –

Euro 18,000

350 members)

Category 5 (351 –

Euro 26,000

500 members)

Part B

In accordance with the provisions of regulation 67(1), an

association shall pay to the Authority, a harm reduction contribution

equivalent to five percent (5%) of the income that is generated by the

association pursuant to regulation 8(2).

Part C

In accordance with the provisions of regulation 67(2), an

association shall pay to the Authority, a community projects

contribution equivalent to ten percent (10%) of the amount of retained

earnings recorded on the association’s audited financial statement with

respect to each financial year.

Part D

In accordance with the provisions of regulation 68, an

association shall pay to the Authority an administrative fee of one

thousand euro (€1,000) relating to the submission and processing of an

application for a permit.

For the purposes of these regulations, an organisation

established in pursuance of the provisions of article 7A of the Act shall

be established in the form of an association.

For the purposes of these regulations, an association is an

agreement between two (2) or more natural persons to establish a non-

profit organisation with the sole purpose to cultivate the plant cannabis

exclusively for its members in a collective manner and to distribute it

only to those members as set out in article 7A of the Act, through the

dedication of efforts and resources by such persons and others who may

join voluntarily, the patrimony, namely assets and liabilities, if any, of

the association being distinct from that of the members and

administrators.

An association shall not be validly constituted under these

regulations unless a statute in the form established in regulation 17 is

entered into between three (3) or more individuals and a certificate of

registration is issued by the Registrar in respect thereof.

(1)

An association shall be non-profit making.

(2)

For the purposes of this regulation and without prejudice

to and for the better implementation of article 7A(2)(b) of the Act, an

association shall be deemed to be "non-profit making" if

(a)

its statute contains an express provision which

excludes the purpose to make profit;

(b)

its purposes do not include the promotion of

private interests;

(c)

except as permitted under this regulation, the First

Schedule to the Voluntary Organisations Act or the Second

Schedule to the Civil Code, no part of the income, capital or

property is available directly or indirectly to

(i)

any administrator; or

(ii)

any founding member, member, employee,

donor or;

(iii)

any other private interest;

ORGANISATIONS)

Provided that such income, capital, property or part

thereof is administered solely in order to achieve the purpose and

objectives for which the association is established.

(3)

An association shall continue to be deemed as "non-

profit making" notwithstanding it

(a)

obtains a pecuniary gain from its activities when

such gain is not received or accredited to its members, but is

intended exclusively for the achievement of the purposes and

objectives of the association as provided in its statute, and

(b)

buys or sells goods or services where such

activities are carried out exclusively to fulfil its sole purpose.

(4)

The following principles on remuneration shall be

applicable to an association

(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;

ORGANISATIONS)

(b)

Repealed by Legal Notice 44 of 2026;

(c)

an association may reimburse the administrator for

any costs incurred by him, if directly related to his work as

administrator of the association;

(d)

an association shall not

(i)

Repealed by Legal Notice 44 of 2026;

(ii)

remunerate any person, whether an

employee or otherwise, with a salary, wage or a fee,

which is higher than market levels, unless the Authority is

satisfied that in that particular case specific conditions

apply;

(iii) pay interest or other remuneration on loans

acquired in accordance with regulation 9, other than in

accordance with market conditions; or

(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.

For the purposes of this regulation, any reference to the

"Commissioner" in the Voluntary Organisations Act shall be

interpreted to mean the "Authority", and thereby any powers which

may otherwise be exercised by the Commissioner shall be exercised by

the Authority.

(1)

An association may only carry out acts of trade

which are related to and intended to achieve their sole purpose of

cultivating the plant cannabis exclusively for its members in a

collective manner and to distribute it only to those members.

(2)

In accordance with sub-regulation (1), the following

activities and income generated by associations directly in the

achievement of their purpose shall be permitted

(a)

the charging of admission and membership fees

and, or fees relating to the consumption of cannabis by its

members; and

(b)

income generated from the distribution of cannabis

cultivated by the association and permitted goods only to its

members

Provided that such activity and income shall only

be considered permitted if they are carried out

(a)

following

the

successful

conclusion

of

ORGANISATIONS)

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;

(c)

payment of a reimbursable deposit for the purchase

of accessories related to the operations of the

association.

(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.

For the purposes of this regulation, "permitted goods" shall

mean such goods as may be prescribed by the Authority in any binding

instrument.

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

ORGANISATIONS)

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.

An association shall acquire legal personality upon its

registration with the Registry in accordance with regulation 33.

(1)

Associations shall be regulated by the provisions

of the Second Schedule to the Civil Code regulating associations

established as private benefit organisations, as defined therein, save as

otherwise varied by these regulations. In case of inconsistency, the

provisions of these regulations shall prevail, and the provisions of the

Second Schedule to the Civil Code shall to the extent of the

inconsistency, not apply to an association.

(2)

Without prejudice to sub-regulation (1), the provisions of

the following regulations shall be excluded in their entirety from the

scope of these regulations

(a)

Civil Code (Second Schedule) (Fees) Regulations;

(b)

Civil Code (Second Schedule) (Notification and

Forms) Regulations, and

(c)

Civil

Code

(Second

Schedule)(Existing

Organisations) Regulations.

(3)

For the avoidance of doubt, the provisions of the Civil

Code (Second Schedule)(Register of Beneficial Owners-Associations)

regulations shall apply to associations established in accordance with

these regulations.

(4)

For the purposes of these regulations, reference to the

words "Registrar for Legal Persons" or "Registrar" in the Second

Schedule to the Civil Code shall be construed to mean "Registrar for

Cannabis Harm Reduction Associations", and thereby any powers

which may otherwise be exercised by the Registrar for Legal Persons

shall be exercised by the Registrar for Cannabis Harm Reduction

Associations.

ORGANISATIONS)

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.

An association shall be free to determine its 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.

(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.

(2)

No person may be appointed or elected as administrator

or as a member of the Board of Administrators unless such person has

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

consecutive years prior to his appointment as administrator.

(3)

No person may be appointed as an administrator unless

such person is a member of the same association.

(4)

Each administrator shall be approved by the Authority

prior to their appointment.

(5)

Repealed by Legal Notice 44 of 2026.

(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;

ORGANISATIONS)

(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.

ORGANISATIONS)

(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.

(1)

Subject to the provisions of sub-regulation (2) an

association may be designated by any name, but such name must end

with the words "Cannabis Harm Reduction Association" or their

abbreviation "C.H.R.A.".

(2)

An association shall not be registered by a name which

(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)

is in the opinion of the Registrar offensive or

otherwise undesirable

(c)

Repealed by Legal Notice 44 of 2026.

ORGANISATIONS)

Provided that the Registrar shall notify any refusal under

this sub-regulation to the person requesting the registration.

(1)

An agreement establishing an association shall be

in writing, on pain of nullity.

(2)

The statute shall contain at least the following

information for the association to be eligible for registration

(a)

its name which shall be followed by the words

"Cannabis Harm Reduction Association" or their abbreviation

"C.H.R.A.";

(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;

(c)

its email address;

(d)

Repealed by Legal Notice 44 of 2026.

(e)

its purpose which shall be clearly limited to the

cultivation of the plant cannabis exclusively for its members in a

collective manner to distribute it only to its members;

(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;

(g)

its non-profit nature;

(h)

the maximum number of members it may have

which shall not be more than that allowed in the conditions of its

operating permit;

(i)

its explicit commitment to operate in accordance

with all applicable laws and regulations and to promote harm

reduction from the use of cannabis among its members;

(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;

(k)

the conditions and procedures for the admission,

expulsion and resignation of its members;

(l)

the rights and obligations of its members;

(m)

the composition of the Board of Administrators,

ORGANISATIONS)

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

(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;

(o)

the provisions governing the functioning, powers

and responsibilities of its scheduled and extraordinary general

meetings;

(p)

the provisions governing the rights and

obligations of members, including voting rights liability of

members;

(q)

the frequency with which its general meeting shall

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

(r)

the grounds and procedures for its voluntary

dissolution;

(s)

the term for which it is established, if any; and

(t)

the date of adoption of the statutes and the

procedure for amending them;

(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.

(1)

An association may admit new members only

when it is in possession of a valid permit and certificate of approval in

accordance with the provisions of these regulations, and may only

admit the number of members allowed in its permit.

(2)

All members shall be at least eighteen (18) years old.

(3)

An association shall not distinguish between different

categories of members including founding members and grantors, if

any, and shall only admit full members with equal rights.

(4)

Each member shall be entitled to participate at each

general meeting and shall be entitled to one (1) vote.

ORGANISATIONS)

(5)

Without prejudice to regulations 12 and 14 relating to the

special residency requirements of founding members, grantors and

administrators, no person may become a member of an association

unless such person is a resident of Malta.

(6)

Notwithstanding any other regulation, no association may

admit more than five hundred (500) members.

No person shall seek to register or register with more than

one association at the same time.

The membership of any person in an association shall not

be transferable.

(1)

An association’s scheduled or extraordinary

general meeting, meaning the gathering of all members shall be

referred to as the general meeting.

(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.

(3)

The quorum of any general meeting shall not be less than

fifty percent (50%) of all members

Provided that the Authority may, by means of a binding

instrument, make provisions for circumstances where the quorum is not

achieved.

(4)

Decisions taken at a general meeting to terminate an

association shall on pain of nullity be supported by at least seventy five

percent (75%) of the members present.

(5)

Every member shall have the right to information and

obtain access to documents, in accordance with the rules set in the

statute.

Provided that the Authority may, by binding instrument,

prescribe the mandatory disclosure of certain information by an

association to its members.

(6)

Members may appoint proxies to attend a general meeting

on their behalf pursuant to the procedure established in the statute and

as long as such proxy is also a member of the association, and such

proxy shall have the right to vote in addition to his own vote

Provided that a member may not represent more than two

(2) other members.

ORGANISATIONS)

(7)

At least once a year, the general meeting shall include the

election of the members of the Board of Administrators.

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

ORGANISATIONS)

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.

(1)

No person shall render service in the premises of

an association unless such person is 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.

(1)

An association may make changes to its statute by

following the procedures in its statute

Provided that any change in the statute of the association

shall require the support of the majority of members present or such

higher amount as the statute may prescribe.

(2)

A certified copy of a resolution taken at a general meeting

of an association to change its statute together with the amended statute

shall be delivered to the Registrar within fourteen (14) days from when

it is passed.

(3)

The amended statute shall only take effect after it is

approved by the Registrar.

Repealed by Legal Notice 44 of 2026.

Repealed by Legal Notice 44 of 2026.

(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

ORGANISATIONS)

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.

(1)

The liability of the founding members, members

and administrators of the association shall be regulated by article 16 of

the Second Schedule to the Civil Code.

(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.

(3)

For the avoidance of doubt, no person directly or

indirectly involved in the association, including the key officer or

other persons performing a key function within the association, may

by agreement or otherwise, partially or fully waive or otherwise

restrict his liability for wilful misconduct, gross negligence or breach

of duty, and any provision in the statute or other agreement seeking to

exonerate or restrict a founding member, a member, an administrator, a

key officer or any other person performing a key function within the

association from such liability shall be null and void.

An association shall not establish other organisations of

whatever legal form, to directly or indirectly achieve the purposes for

which it has been established.

ORGANISATIONS)

It shall not be lawful for an association to establish cells

within the association.

Part III

Of the Registrar of Cannabis Harm Reduction Associations

(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.

(2)

Without prejudice to the provisions of sub-regulation (1),

the Registrar may authorise in writing any officer serving within the

Authority to perform any of the functions assigned to the Registrar

under these regulations or any other law.

(3)

The Registrar shall administer the Registry of Cannabis

Associations and perform the functions and duties conferred on him by

these regulations and any other law, and for the purpose of the exercise

of those functions and of the performance of those duties he shall have

power to require any person to give him any relevant information and

to produce to him any relevant document.

Part IV

Of the Register of Cannabis Harm Reduction Associations and

Registration

(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

ORGANISATIONS)

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.

(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

ORGANISATIONS)

(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.

(2)

The Registrar shall have the right to request any further

information or documentation, other than those established in this

regulation, in accordance with any rules which may be prescribed by

the Authority.

(3)

Repealed by Legal Notice 44 of 2026.

(4)

Repealed by Legal Notice 44 of 2026.

(5)

Upon registration, the Registrar shall issue a certificate of

registration in the name of the association and it shall allocate a unique

number to each association and that number shall at all times be quoted

by the association on

(i)

its letters, notices and any other documents issued

by the association, and

(ii)

each container or packet which holds cannabis or

seeds of the plant cannabis and which it distributes to its

members in accordance with these regulations.

Repealed by Legal Notice 44 of 2026.

Part V

Permits and Approvals

(1)

No person shall cultivate the plant cannabis and

produce, process, store, transport and distribute cannabis in terms of

the provisions of article 7A of the Act, except when in possession of a

valid permit for the purpose issued by the Authority and a valid

certificate of approval as provided in sub-regulation (2) hereunder.

(2)

Without prejudice to the requirements established in any

other law, no person shall use any premises to cultivate the plant

cannabis and to produce, process, store and distribute cannabis in terms

of article 7A of the Act, except when in respect of such premises, a

ORGANISATIONS)

valid certificate of approval for the purpose has been issued by the

Authority.

(3)

The Authority may, in granting or renewing any permit

or approval under sub-regulations (1) and (2), impose any such

condition as the Authority may deem fit and may restrict any activity

that may be provided or carried out in the approved premises.

(4)

The issuing and renewal of any permit or certificate of

approval shall be without prejudice to the requirement of any other

licence, authorization or approval required under any other law.

(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 Cannabis by

Associations) Regulations issued in this regard, or in any binding

instrument or written instruction issued by the Authority.

The Authority shall have the power to issue permits of

the categories set forth in the First Schedule.

(1)

Each new permit and certificate of approval shall

be valid for a period of one (1) year which period may be renewed by

the Authority for further periods of one (1) year each or for such

period as may be prescribed by the Authority in any binding

instrument.

(2)

Any renewal of a permit or a certificate of approval shall

in all cases be subject to the continued compliance by the association,

during the preceding original or renewed terms of the permit and

certificate of approval, with the provisions of the Act, these

regulations, all conditions or restrictions contained in the applicable

permit and certificate of approval, all applicable regulatory

instruments, binding instruments and all other applicable laws.

(3)

A request for renewal of a permit or certificate of

ORGANISATIONS)

approval shall be made within the time-frame prescribed by the

Authority.

(1)

The founding members of an association or an

association may apply to the Authority to obtain or renew a permit or a

certificate of approval by making use of the relevant prescribed forms

published by the Authority and by following the applicable procedure

as prescribed by the Authority.

(2)

An applicant under sub-regulation (1) shall provide all

information, documentation and assurances required by the Authority

and shall fulfil all the requirements as established in any regulatory

instruments or as prescribed by the Authority in any binding

instruments, in line with the governing principles and regulatory

objectives established by the Act.

(3)

In addition to and without prejudice to the generality of

sub-regulation (2) the applicant shall comply with any request made to

it by the Authority to provide it with any information, documentation

and assurances which it may consider necessary for it to determine the

suitability of the applicant that shall be issued with a permit or a

certificate of approval or their renewal.

(4)

All applications made in terms of sub-regulation (1) shall

be verified in the manner and to the extent required by the Authority.

(5)

Without prejudice to sub-regulation (4) in determining an

application for a permit or a certificate of approval or for their renewal,

the Authority shall have the power to inspect the premises of the

association.

(6)

All applications made in terms of sub-regulation (1) shall

be accompanied by the prescribed fee in accordance with regulation 68.

(7)

The Authority may, in furtherance of the regulatory

objectives under the Act and, or these regulations

(a)

establish, where appropriate or necessary, by

means of binding instruments, more extensive, reduced or

amended requirements for an applicant to qualify for an

authorisation in certain pre-defined circumstances; and, or

(b)

impose on an applicant, where appropriate or

necessary, specific additional requirements by means of a

binding instrument.

(1)

No person, other than an association that has been

registered in the Registry may be granted a permit or a certificate of

approval under sub-regulations (1) and (2) of regulation 35.

(2)

Upon the successful determination of an application for a

ORGANISATIONS)

permit, the Authority shall issue a permit to cultivate and distribute

cannabis, in the name of the association.

The association shall affix a copy of the permit in a prominent

place in each of its premises.

(1)

Upon the successful determination of an

application for the approval of the premises, the Authority shall issue a

certificate of approval, in the name of the association.

(2)

The association shall affix a copy of its certificate of

approval in a prominent place in each of its premises.

A permit, certificate of approval or any authorisation

granted by the Authority cannot be assigned or transferred.

(1)

The Authority shall refuse an application to grant

a permit or a renewal thereof in terms of this Part of the regulations, in

any of the following instances

(a)

if the application is not submitted in accordance

with the established form or applicable procedure;

(b)

if the applicable fees have not been paid;

(c)

if, in the reasonable opinion of the Authority, the

applicant’s proposed operational model is not compliant with

the Act, these regulations or any applicable regulatory

instruments or any binding instruments;

(d)

if the applicant’s premises have not been or shall

not be concurrently certified by the Authority;

(e)

if the Authority is not satisfied that the applicant

and all relevant persons as determined by it, are fit and proper

persons;

(f)

if, in the reasonable opinion of the Authority, the

applicant does not have the necessary competence, technical

know-how and resources to carry out the activity regulated by

article 7A of the Act and these regulations;

(g)

if it transpires that any document, information or

other submission made to the Authority is false, misleading, or

inaccurate; or

(h)

if the information submitted to the Authority is

incomplete in a material respect.

(2)

The applicant or association shall have the right to

request a reversal of the decision of the Authority by filing an appeal

before the Tribunal in accordance with the provisions of Part XV.

ORGANISATIONS)

(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.

(1)

The Authority shall refuse an application for the

approval of the premises or renewal thereof in terms of this Part of

these regulations, in any of the following instances

(a)

if the application is not submitted in accordance

with the established form or applicable procedure;

(b)

if the applicable fees have not been paid;

(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;

(d)

if, in the reasonable opinion of the Authority the

approval of the premises shall constitute a negative impact on

the amenity of the general area or the wider community where

the proposed premises are situated;

(e)

if, in the reasonable opinion of the Authority, the

premises do not meet the requirements prescribed by the

Authority in any binding instruments; or

(f)

if the applicant fails to obtain any other applicable

permit or authorization in terms of any other applicable law or

regulatory instruments

Provided that and without prejudice to any other law or

regulation, the Authority shall, when considering an application under

this regulation, also consider whether approving any such premises

may lead to a concentration of such premises in any area within a

locality, or part thereof, as well as any other factor and, or requirement,

which it deems objectively and reasonably justified and appropriate, to

fulfil its functions and regulatory objectives.

(2)

For the purposes of this regulation

(a)

"club" and "youth centre" mean the premises of any

organisation including voluntary organisations, religious

organisations and sports organisations or clubs registered with the

Commissioner for Voluntary Organisations or with any other

relevant authority or recognised association, from where such

organisations work or otherwise organise their activities with

children and youths under the age of eighteen (18) years.

(b)

"school" means the premises of any entity which

is registered or licensed to operate as a school or educational

ORGANISATIONS)

institution in Malta and from which it provides its services to

minors who have not attained the age of eighteen (18) years and

includes, but is not limited to, any one (1) or more of the

following

(i)

early childhood educational and care

centres;

(ii)

schools which provide educational services

up to compulsory school age, these include church,

independent and international schools for pre-primary

(kindergarten), primary and secondary levels;

(iii) private educational service providers of

specialised programmes for students with specific needs;

(iv) centres run by the society of Christian

Doctrine, more commonly referred to as M.U.S.E.U.M.

which provide religious teaching to children and

adolescents;

(v)

summer schools;

(vi)

schools for the performing arts;

(vii)

sport schools;

(viii)

English language schools;

(ix)

post-secondary schools;

(x)

further

and,

or

higher

education

institutions; and

(xi)

universities

Provided that any further and, or higher educational

institution or university which solely and exclusively provides online

tuition is excluded from the scope of application of this definition

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.

(3)

The applicant or licensed person shall have the right to

request a reversal of the decision of the Authority by filing an appeal

before the Tribunal in accordance with the provisions of Part XV.

(4)

Repealed by Legal Notice 44 of 2026.

ORGANISATIONS)

Part VI

Key Officer and Key Positions

(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.

(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.

(3)

The Key Officer shall be the sole person vested with the

legal and judicial representation of the association.

A Key Officer shall

(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.

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.

(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

ORGANISATIONS)

approved by the Authority.y.

(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).

(1)

The Authority may by means of a binding

instrument, establish other key positions or functions that shall be

performed by persons within an association.

(2)

No person shall be appointed to occupy any such key

position or provide any such key function unless such person is

approved by the Authority to provide such position or function, or as

may be otherwise directed by the Authority in any binding instrument.

Part VII

Records and Reports

(1)

Each association shall keep complete and accurate

records of its operating activities, which shall include the following

information and any other information as may be prescribed by the

Authority in any binding instrument, 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

(a)

Repealed by Legal Notice 44 of 2026.

(b)

for each cycle of cultivation

(i)

forecast of cultivation;

(ii)

the dates of the cultivation;

(iii) the exact location where each stage of the

cultivation process takes place;

(iv)

the amount of cannabis plants that it

cultivates;

(v)

used methods of agriculture and the

environmental conditions maintained during the

cultivation process;

(vi) results of the cultivation and harvest which

shall include amounts collected, the amounts of final

dried cannabis;

(vii) evaluation of the forecast and the results

indicated in sub-paragraph (vi);

ORGANISATIONS)

(viii) details relating to the transport of the

cannabis plant, harvest and, or product from the

cultivation premises to the premises where the

distribution takes place;

(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.

(c)

the quantity of cannabis distributed disaggregated

by each transaction and the security seal identification number

for each transaction.

(2)

The operating records of the association shall be kept for

a period of ten (10) years after the relevant period to which they refer.

Repealed by Legal Notice 44 of 2026.

Part VIII

Conditions and Binding Instruments

(1)

The Authority shall have the power to issue

conditions to permits or other authorisations granted in terms of the Act

and these regulations.

(2)

The Authority shall have the power to add, amend or

remove any conditions to permits or other authorisations granted in

terms of the Act and these regulations.

(3)

Compliance with the Act, any regulations thereunder,

these regulations and any binding instrument issued by the Authority

shall automatically be construed as conditions to permits or such other

authorisations.

The Authority may, from time to time, issue and publish

rules, directives and guidelines which shall be binding on associations

and others as may be specified therein. Such rules, directives and

guidelines, as may be amended from time to time, may lay down

additional requirements and conditions in relation to activities of the

associations, the conduct of their operations, reporting requirements,

harm reduction initiatives, and any other matters that the Authority may

consider appropriate.

Part IX

ORGANISATIONS)

Centralised Data Collection and Tracking System

(1)

The Authority may operate a digital centralized

data collection and tracking system for the purpose of facilitating data

collection and tracking from associations.

(2)

Associations shall adhere to any requirements

established by the Authority for the implementation and operation of a

digital centralised data collection system, including but not limited to,

the implementation of a tag and track system and the payment of a fee

as may be prescribed by the Authority.

The Authority may disclose information contained in the

centralised data collection and tracking system or which it may have

come to its possession through the performance of its functions, to the

Executive Police, the Financial Intelligence Analysis Unit or any other

public body for the purpose relating to compliance, preventing non-

compliance with the provisions of the Act, these regulations and

applicable laws, prevention or committal of a criminal offence,

protection of public health or safety or any other prescribed

circumstances.

Part X

Compliance Monitoring

(1)

An association shall, throughout the term of any

permit or authorisation, continuously comply with all relevant

requirements and be responsible for all obligations imposed by the

Act, these regulations and all applicable regulatory and binding

instruments.

(2)

An association shall, throughout the terms of any permit

or authorisation, comply with the policies and procedures which shall

be notified to the Authority in terms of the Act, these regulations or

any regulatory or binding instrument.

The Authority may require any association

(a)

to take actions, implement procedures or systems,

to make submissions, to provide information, reports,

compliance certificates and, or any other evidence of

compliance to the Authority, on a regular or ad hoc basis, to

demonstrate its compliance with the Act, these regulations and

all applicable regulatory and binding instruments;

(b)

to undergo a compliance audit, on a regular or ad

hoc basis, as may be prescribed by the Authority in any binding

instrument;

(c)

to limit aspects of its operations until it is satisfied

that an identified or potential non-compliance or

ORGANISATIONS)

risk of a breach of the regulations has been

addressed.

(1)

The Authority shall have the power to initiate a

review into the operations and, or conduct of the association and, or of

its premises, whenever it deems necessary.

(2)

If, throughout the conduct of such review, the Authority

discovers that the operations, conduct and, or premises of the

association may not be, or are not compliant with any applicable

regulatory or binding instrument, it shall notify the association of this

fact, giving such association a reasonable time within which to rectify

any such irregularity, and, or to make any relevant submissions

Provided that the Authority shall not be required to notify

the association where, in the opinion of the Authority, any such

notification may potentially prejudice any investigation related to such

irregularity or where the Authority is precluded from informing the

association by virtue of any applicable law.

(3)

The Authority may initiate a formal investigation, and, or

take such other measures, including any of the enforcement measures

listed in regulation 63 as it may deem appropriate where the association

fails to make submissions or, its submissions do not address the

concerns raised by the Authority.

(1)

When the Authority has reason to suspect that an

association is conducting its affairs in breach of the Act, these

regulations or any applicable regulatory or binding instrument or is

otherwise no longer suitable to hold such authorisation, it shall initiate

a formal investigation of such association.

(2)

The association shall be informed of the investigation and

the reasons for which it was initiated

Provided that where the Authority reasonably believes

that informing the association of such investigation may prejudice the

investigation or any possible outcome thereof, or is precluded from

informing the association by virtue of any applicable law, it may carry

out the investigation without informing the association.

(3)

In conducting such investigation, the Authority shall be

empowered to request and, or access any and all information,

documents and other things from the association or from third parties

that directly or indirectly provide one (1) or more services to the

association, or any other person, including any one (1) or more of the

members of the association, as that it deems relevant

Provided that where the Authority requests information,

documents or any other things from a third party, it shall not require the

consent of the association or of any other person to which the

ORGANISATIONS)

information, documents or other things relate.

(4)

It shall be an offence for the association not to provide

the Authority with any information, documents and, or other things

which the Authority may require, or to otherwise hinder the

Authority’s investigation or to neglect to collaborate therewith. In any

such case it shall also be lawful for the Authority to make a decision

based on the information available to it.

(5)

When the Authority’s investigation is concluded, the

Authority shall provide the association with a report thereon which

shall include

(a)

the reason or reasons for which the investigation

was initiated;

(b)

in the case of a breach of an applicable law or

regulation, the breaches of the applicable law, regulatory or

binding instruments by the authority, and a description of its

findings in relation to any such breaches, and

(c)

the enforcement measures which the Authority

has deemed it fit to take in the circumstances, if any

Provided that the Authority may withhold any or all of

the above information if disclosing them to the association may

prejudice the interests of its members or of any other person, or would

amount to a breach of any applicable law.

(6)

The association may contest the findings in such report

within twenty (20) days from the date of notification thereof

Provided that the findings in the report shall become

final, if the association fails to contest such findings within such

twenty-day contestation period.

(7)

The Authority shall review an association’s contestation

received within the twenty (20)-day contestation period within a

reasonable time and shall thereafter communicate to the association its

final decision on the matter, confirming, revoking or amending the

report.

(1)

For the purpose of the exercise by the Authority of

its functions relating to but not limited to the enforcement of Article

7A of the Act and these regulations, the Authority shall designate

individuals as inspectors to exercise the functions and powers referred

to in this regulation.

(2)

Each inspector shall be provided with a certificate of

designation which shall be issued by the Authority and which shall be

presented by the inspector when entering any place for the purpose of

ORGANISATIONS)

carrying out an inspection in terms of this regulation.

(3)

An inspector may, for the purpose of verifying

compliance or preventing non-compliance with the provisions of

Article 7A of the Act and these regulations and any regulatory or

binding instrument made thereunder conduct inspections, including on-

site inspections with the power to exercise any of the following acts

(a)

enter the premises of an association and search and

inspect its premises and any contents found therein;

(b)

take samples of any substance for laboratory

testing;

(c)

use or cause to be used any computer system at the

premises to examine any electronic document, excluding

documents that contain the personal data of the members of the

association;

(d)

reproduce any document by any means including

digital or paper form;

(e)

take any

document

in

whatever

form

for

examination purposes;

(f)

take photographs and make recordings;

(g)

seize or detain cannabis or any other thing found in

the premises that in the inspector’s reasonable opinion is

something in relation to which the provisions of Article 7A of

the Act, these regulations or any regulatory or binding

instrument have been breached or is something the seizure and

detention of which is necessary to prevent non-compliance with

the provisions of Article 7A of the Act, these regulations or any

regulatory or binding instrument;

(h)

order the key officer and, or the administrators not

to move the cannabis from the premises and, or to stop an

activity which in the inspector’s reasonable opinion is in breach

of the provisions of Article 7A of the Act, these regulations or

any regulatory or binding instrument;

(i)

order any person in the premises to identify

themselves by means of an official identification document, and

(j)

call to his assistance any member of the Police

Force, for the purpose of carrying out the powers conferred upon

him by this regulation.

(4)

If

ORGANISATIONS)

(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.

(1)

The key officer and any person who is present at

the premises at the time of the inspection shall give the inspector all

reasonable assistance in their power and provide the inspector with

any information that the inspector may reasonably require.

(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.

If the Authority determines that it is no longer necessary

to detain anything seized by the inspector under this regulation, the

inspector shall notify in writing the key officer of that determination

and, on being issued a receipt for it, shall return such thing to the key

officer.

Each inspector shall provide to the Authority a report of

the inspection and the Authority shall after having considered the

findings of the inspection, have the power to exercise any enforcement

measure or measures provided in regulation 63.

Part XI

Enforcement Measures

(1)

The Authority may exercise any enforcement

measure or measures listed in sub-regulation (2) hereunder, solely

following the conclusion of a compliance review, a formal

investigation by the Authority and, or an inspection

Provided that the Authority may, in exceptional

circumstances and in the interest of the members of the associations or

on grounds of public policy, public security or the safeguarding of the

reputation of Malta, exercise any enforcement measures which it

deems appropriate at any time or it deems necessary including prior to

or during the performance of the review, investigation, inspection or

following the conclusion thereof but prior to the lapse of the time

within which the association may contest the findings.

(2)

The enforcement measures which the Authority may take

are the following

ORGANISATIONS)

(a)

an order, directing the association to do or refrain

from doing any act or to rectify any irregularity in its conduct or

operations with the aim of ensuring compliance with the Act,

these regulations and any regulatory or binding instrument;

(b)

a warning to the association indicating that the

Authority may revoke or suspend the permit or approval unless

appropriate action as outlined in the warning is taken by the

association

Provided that notwithstanding the above and any other

provision in any regulatory instrument or any other law, the Authority

shall have the right to immediately suspend or revoke a permit or

approval and without giving a warning to the association, in terms of

regulations 64 and 65;

(c)

the filing of a report to the Executive Police for the

commencement of criminal proceedings, in the case where the

Authority has reasonable grounds to suspect that any person

involved within the association or who renders a service to the

association is in the process of committing or has committed an

offence against the Act, these regulations or any other law, and,

or;

(d)

suspending or revoking a permit or any approval in

terms of regulations 64 or 65, as the case may be

Provided that the enforcement sanctions mentioned in this

sub-regulation shall not be made public unless the Authority

determines that this is in the public interest or if the Authority is

obliged to make such sanction public in terms of any other law

Provided further that any measure mentioned in

paragraph (d) shall be made public;

(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.

(3)

Without prejudice to the foregoing, the Authority shall

also be empowered to keep and publish a list of associations which are

not compliant with the applicable laws and, or regulatory instruments

Provided that any association included on such list shall

be given the opportunity to make submissions to the Authority,

clarifying and, or addressing its lack of compliance, in order for the

Authority to remove such association from the list.

(1)

The Authority shall have the power to suspend a

permit and, or other approval granted, in terms of these regulations, if

throughout the term of the permit

ORGANISATIONS)

(a)

it considers that the requirements of any provision

of the Act, these regulations, any applicable regulatory

instruments or any binding instruments or any condition

imposed by the Authority pursuant to the permit or approval, as

the case may be, are not being fulfilled or complied with;

(b)

the association is in breach of any of the

provisions of the Act, these regulations, any applicable

regulatory instruments or any binding instruments or any

condition imposed by the Authority pursuant to the permit or

approval;

(c)

the association is found guilty of an offence

against the Act or these regulations;

(d)

if the Authority considers that an administrator or

any person who assumes responsibility in relation to the

Authority is no longer deemed to be fit and proper to carry out

the functions required by him or if there is no person in office

occupying a mandatory position within the association;

(e)

in the reasonable opinion of the Authority, the

certified premises no longer meet the requirements prescribed

by the Authority in any binding instruments and, or has

suspended or revoked the certificate of approval of the premises

of the association;

(f)

the association has failed or ceased to comply

with an order issued by the Authority;

(g)

the Authority has reason to believe that the

association is in financial distress;

(h)

the association is in breach of the laws or

regulations at any time in force for the prevention of money

laundering and financing of terrorism;

(i)

if, in the reasonable opinion of the Authority, the

association has failed to comply with its obligations towards its

members;

(j)

the association has ceased to comply with the

eligibility criteria for authorisation or circumstances arise

which, had they been present and known to the Authority at the

time of issuance of the permit or authorisation, would have led

the Authority not to issue such permit or authorisation;

(k)

the association has failed to seek the prior

approval of the Authority in relation to any material changes or

where such prior approval is otherwise required in terms of any

regulatory or binding instrument;

ORGANISATIONS)

(l)

the association has failed to pay in a timely manner

any amounts due to the Authority; or

(m) the association has failed to pay in a timely manner

any penalty imposed on it by a competent court for failure to

observe the provisions of Article 7A of the Act or these

regulations; or

(n)

the Authority, in its sole discretion, has determined

that there is material and sufficient reason for suspending the

authorisation.

(2)

Where a ground for suspension of the permit or approval

in terms of sub-regulation (1) is deemed to exist following the

conclusion of a formal investigation and the association has been given

a period of time within which to contest the findings of the Authority in

terms of regulation 58(6), the Authority shall give the association

notice in writing of its decision to suspend the approval and, or permit

setting out the reasons for its decision and giving such directions to the

association, as the Authority may consider necessary.

(3)

Where a ground for suspension of the permit or approval

in terms of sub-regulation (1) is deemed to exist and the association has

not been granted a period of time within which to contest the findings

of the Authority in terms of regulation 58(6), the Authority shall notify

the association in writing of its intention to suspend the permit or

approval, setting out the reasons for the decision it proposes to take, as

well as giving such directions to the association, as the Authority may

consider necessary, and give the association a reasonable period within

which to make representations in writing to the Authority explaining

why the proposed suspension should not be made, and the Authority

shall consider any representation so made before notifying it of its final

decision

Provided that, notwithstanding anything provided in this

regulation and any other provision in any regulatory instrument or any

other law, the Authority shall have the right to suspend a permit with

immediate effect, by written notice to the association and without

giving the association time to show cause why the permit should not be

suspended, where it determines that there exist exceptional grounds for

doing so, including but not limited to

(a)

when the Authority becomes aware that the

authorisation was obtained by one or more materially false or

misleading representations or in some other improper way; or

(b)

when the association presents an imminent threat

to the reputation of Malta; or

(c)

when the association presents an imminent threat

ORGANISATIONS)

or serious prejudice to the interests of the members of the

association or to public or national interest.

(4)

A suspension in terms of sub-regulation (1) may be lifted

by the Authority when it is satisfied that the matter which led to the

suspension has been rectified and in such circumstances the Authority

shall communicate the matter in writing to the association together

with any conditions it may deem fit.

(5)

The Authority may by means of binding instruments

regulate further the process and procedures to be followed by an

association in the circumstances listed in this regulation.

(1) The Authority shall have the power to revoke a

permit and, or other approval in the following instances

(a)

one of the grounds for suspension envisaged in

regulation 64 arises and the Authority, in its sole discretion,

determines that cancellation of the permit or approval is the

most appropriate measure;

(b)

the Authority has suspended the permit or

approval in terms of regulation 64 and, the association has not

rectified the issues indicated in the suspension decision within

the time period established therein;

(c)

the permit has been voluntarily suspended for

more than six (6) months and the association has not provided a

plan outlining when it expects the authorisation to be

reactivated, to the satisfaction of the Authority; or

(d)

the association continues to operate and, or

distribute cannabis to its members notwithstanding the

suspension of the permit or approval by the Authority in terms

of regulation 64.

(2)

Where a ground for revocation of the permit or approval

in terms of sub-regulation (1) is deemed to exist following the

conclusion of a formal investigation and the association has been

given a period a time within which to contest the findings of the

Authority in terms of regulation 58(6), the Authority shall give the

association notice in writing of the revocation of the permit and, or

approval setting out the reasons for its decision, as well as giving such

directions to the association, as the Authority may consider necessary.

(3)

Where a ground for revocation of the permit or an

approval in terms of sub-regulation (1) is deemed to exist and the

association has not been granted a period of time within which to

contest the findings of the Authority as provided in sub-regulation (2),

the Authority shall notify the association in writing of its intention to

revoke the permit and, or approval, as well as giving such directions to

ORGANISATIONS)

the association, as the Authority may consider necessary, setting out the

reasons for the decision it proposes to take and give the association a

reasonable period within which to make representations in writing to

made, and the Authority shall consider any representation so made

before notifying it of its final decision

Provided that, notwithstanding anything provided in this

regulation and any other provision in any regulatory instrument or any

other law, the Authority shall have the right to revoke a permit with

immediate effect, by written notice to the association and without

giving the association time to show cause why the permit should not be

revoked, where it determines that there exist exceptional grounds for

doing so, including but not limited to

(a)

when the Authority becomes aware that the

authorisation was obtained by one or more materially false or

misleading representations or in some other improper way; or

(b)

when the association presents an imminent threat

to the reputation of Malta; or

(c)

when the association presents an imminent threat

or serious prejudice to the interests of the members of the

association or to public or national interest.

(4)

The Authority may by means of binding instruments

regulate further the process and procedures to be followed by an

association in the circumstances listed in this regulation.

Part XII

Fees and Contributions

(1)

An association shall pay a non-refundable fixed

annual licence fee as stipulated in Part A of the Third Schedule, upon

the issue of a permit which shall be payable in advance for the first

twelve (12) running months and every anniversary thereof, throughout

the duration of the permit.

(2)

Where any amount payable in terms of these regulations

is not paid when due, interest shall be due and payable at the rate

prescribed in rule 2 of the Income Tax (Interest Rate) Rules, which rate

shall be applied to the unpaid amount for which the amount remains

unpaid.

(1) An association shall pay a harm reduction

contribution as stipulated in Part B of the Third Schedule, for each and

every period of the permit, which shall be payable by the association to

the Authority within twenty (20) days of submission of the last

quarterly report within a financial year submitted in terms of regulation

27, or within such time period as may be prescribed by the Authority.

ORGANISATIONS)

(2)

An association shall pay a community projects

contribution as stipulated in Part C of the Third Schedule which shall

be payable by the association to the Authority within twenty (20) days

of submission of the annual audited financial statements to the

Authority or within such time period as may be prescribed by the

Authority

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.

An association shall pay the administrative fees

stipulated in Part D of the Third Schedule.

Part XIII

Cannabis Harm Reduction

(1)

Without prejudice and in addition to requirements

of any provision of the Act, these regulations, any applicable

regulatory instruments or any binding instruments, every association

shall operate ethically and with integrity, prioritising harm reduction

of its members from the use of cannabis within its operations and

internal management functions.

(2)

An association shall not in any way directly or indirectly

promote or encourage and/or in any way stimulate the demand of

cannabis use.

(3)

Every association shall adopt harm reduction

mechanisms for the prevention of cannabis abuse by its members as

required by any provision of the Act, these regulations, any applicable

regulatory instruments or any binding instruments, which shall, inter

alia, include the following measures

(a)

the founding members, administrators and persons

occupying designated roles within the association shall attend

any training required by the Authority relating to, but not

limited to, the prevention of problematic use of cannabis

through harm reduction measures, as may be prescribed in any

binding instrument;

(b)

educate its members on the use and consumption

of cannabis by

(i)

providing information about the cannabis

that it distributes to its members,

(ii)

providing training to its members on the

general use of cannabis, and

ORGANISATIONS)

(iii)

organizing

private

harm

reduction

activities;

(c)

inform its members about their rights and

obligations as members of the association, including but not

limited to the right to information, privacy and the right to

request assistance from the association when the member feels

or recognises he is experiencing problematic use of cannabis;

(d)

where a member requests assistance in terms of

sub-regulation (c) above, the association shall assist that

member and help him have access to a rehabilitation process,

and

(e)

systematically provide each member with statistics

on the amounts and the cannabinoid profile of the cannabis

distributed to him.

Every association shall maintain and implement its own

code of conduct which shall set rules for the internal functioning of the

association to ensure the security and well-functioning of the

association and the implementation of harm reduction mechanisms in

terms of these regulations, applicable legislation and any binding

instruments.

Part XIV

Prevention of Money Laundering

(1)

Without prejudice to the obligations imposed or

that may be imposed upon an association by the Prevention of Money

Laundering Act and any regulations made thereunder, the

administrators of an association shall implement policies and

procedures relating to the prevention of money laundering and the

funding of terrorism so as to ensure that their association is not used for

such purposes.

(2)

The administrators shall obtain information on and keep

record of the source of funds of all endowments and permitted loans

made to the association and shall verify such information.

(3)

The administrators shall not accept any endowments or

permitted loans unless they verify that the funds originate from licit

sources.

(1)

Where the Authority discovers facts or obtains

information that is related to transactions which are known or

suspected to be related to proceeds of criminal activity or the funding

of terrorism, or to a person who may have been, is or may be connected

with money laundering or the funding of terrorism, the Authority shall

disclose those facts or that information, supported by the relevant

documentation that may be available, to the Financial Intelligence

ORGANISATIONS)

Analysis Unit in a timely manner.

(2)

Where through its monitoring, or through any other

means, the Authority notices that there are areas of arrangements and

services which are vulnerable to money laundering or the funding of

terrorism, the Authority shall inform the National Coordinating

Committee on Combating Money Laundering and the Funding of

Terrorism established under Article 12A of the Prevention of Money

Laundering Act of its concerns and provide it with any analysis.

Without prejudice to the provisions of the Prevention of

Money Laundering Act and any regulations made thereunder, the

Financial Intelligence Analysis Unit, in fulfilling the responsibilities

assigned to it under the Prevention of Money Laundering Act and any

regulations made thereunder, may demand access to the Register or to

any information or documentation relating to the operation of an

association and the Registrar and, or the Authority shall comply with

any such demand, without undue delay.

Part XV

Administrative Review Tribunal

(1)

The Administrative Review Tribunal shall have

jurisdiction to hear and determine appeals from decisions of the

Authority as provided in these regulations or in any law or regulations.

(2)

The provisions of the Administrative Justice Act, in so

far as they apply to the Administrative Review Tribunal, shall apply to

any proceedings before the said Tribunal, except as otherwise varied

by these regulations, in which case the provisions of these regulations

shall prevail, and the words "public administration" in the said

enactment shall be construed as a reference to the Authority.

(1)

An association or any person aggrieved by a

decision of the Authority may appeal to the Tribunal

Provided the person making an appeal to the Tribunal

shall show juridical interest in challenging the decision appealed from

Provided further that where the decision appealed from

related to the exercise of lawful discretion by the Authority, the

Tribunal shall not query the Authority’s decision based on the exercise

of such discretion

Provided further that no appeal shall lie from a warning

or from a decision of the Authority to refuse to grant, or to suspend or

cancel a permit or other authorisation on the grounds of public policy,

public security, national interest or for safeguarding the reputation of

Malta.

(2)

An appeal from a decision of the Authority shall be made

ORGANISATIONS)

by application within twenty (20) days from the date on which the said

decision has been notified to the association.

(3)

Subject to the provisions of regulation 76 the Tribunal

shall have the power to confirm or annul the decision of the Authority.

The decision of the Authority, pending an appeal whether

before the Tribunal or the Court of Appeal, shall not suspend the

operation of any decision and such decision shall stand and shall be

adhered to by the association and all parties to whom the decision

applies

Provided that a decision of the Authority to cancel a

permit or other authorisation shall not become operative until the

expiration of the period within which an appeal lies under this

regulation and, if an appeal is made within such period, the decision

shall become operative on the date of the decision of the Tribunal

dismissing the appeal or the date on which the appeal is abandoned

Provided further that when a decision to cancel a permit

or other authorisation is appealed, pending the determination of the

appeal the relevant licence or authorisation shall be deemed suspended.

(1)

Any party to the proceedings before the Tribunal

who feels aggrieved by a decision of the Tribunal, may appeal to the

Court of Appeal sitting in its inferior jurisdiction, on a point of law

only.

(2)

Without prejudice to sub-regulation (1) the proceedings

shall be regulated by the provisions of Part IV of the Administrative

Justice Act.

Part XVI

Offences

The Court of Magistrates in its criminal jurisdiction shall

be competent to take cognizance of the offences stipulated in the

Second Schedule.

(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

ORGANISATIONS)

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.

Any person who commits an act or omission

(i)

which relates to activities that are not tolerated

within the parameters and limits established by Article 7A, and

(ii)

which is not listed as an offence in the Second

Schedule, and constitutes an offence against the Medical and

Kindred Professions Ordinance or the Dangerous Drugs

Ordinance or any other law shall continue to be subject to the

proceedings established in the Act or under the Medical and

Kindred Professions Ordinance or the Dangerous Drugs

Ordinance or such other law, as the case may be.

Part XVII

Voluntary Suspension or Surrender of a Permit or Approval

(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.

(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.

(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.

(4)

The association may request the reactivation of the

permit and, or certificate of approval, in such manner and using such

forms as the Authority may prescribe. In processing a request for

reactivation of the permit and, or certificate of approval, the Authority

shall have the discretion to conduct any and all checks on the

association and its operations as it considers necessary, and to refuse

reactivation of the permit and, or certificate of approval on the same

grounds as it may refuse to grant an application for a permit and, or

ORGANISATIONS)

certificate of approval.

(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.

Repealed by Legal Notice 44 of 2026.

Part XVIII

Winding Up of Associations

(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.

(2)

For the purposes of this Part XVIII of these regulations,

any reference to the Court shall be deemed to be a reference to the Civil

Court (Voluntary Jurisdiction Section).

(1) An association that does not hold a permit and, or

certificate of approval may be wound up voluntarily in accordance with

the procedures laid down in the statute of the association.

(2)

An association that is in possession of a permit and, or

certificate of approval shall, prior to resolving its winding up, obtain

the cancellation of the permit and certificate of approval.

(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

ORGANISATIONS)

(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.

(4)

A certified copy of a winding up resolution shall be

delivered to the Registrar within fourteen (14) days from when it is

passed. The administrators shall, together with the winding up

resolution, render to the Registrar a statement of accounts, declaring

the assets and liabilities of the association, in such form as may be

prescribed by the Authority.

(5)

The administrators shall prepare a scheme of distribution

of the assets of the association which shall be notified to the Registrar

and which shall require the approval by the members of the

association, or in the absence, the Registrar, before being

implemented.

(6)

The assets of the association shall be applied towards the

liabilities of the association. Any assets remaining thereafter, shall not

be divided amongst the members of the association but shall devolve

unto the Government of Malta, or as the may be prescribed.

(7)

Repealed by Legal Notice 44 of 2026.

Repealed by Legal Notice 44 of 2026.

(1)

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.

(2)

Repealed by Legal Notice 44 of 2026.

(3)

Repealed by Legal Notice 44 of 2026.

(4)

Repealed by Legal Notice 44 of 2026.

Repealed by Legal Notice 44 of 2026.

Repealed by Legal Notice 44 of 2026.

ORGANISATIONS)

(1)

Upon receipt of a declaration by the

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.

(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.

ORGANISATIONS)

Part XIX

Miscellaneous

The Authority and any member of its board, officer or

employee of the Authority, shall not be liable in damages for anything

done or omitted to be done in the discharge or purported discharge of

any functions under the Act, the Authority on the Responsible Use of

Cannabis Act or any regulations made thereunder, unless the act or

omission is proven to have been done or omitted in bad faith.

Where any notification, howsoever described, is required

to be given by the Authority, such shall be addressed to the key officer

or if there is no key officer to the board of administrators or any other

person as the Authority may prescribe, and such notification shall be

given in one of the following ways

(a)

by delivering it directly to the person on whom it

is to be served;

(b)

by leaving it at last known residence of the

person, if such person has furnished such an address or, if such

person has furnished an address for service, at such latter

indicated address;

(c)

by sending it by registered mail addressed to that

person at the place of residence or address for service as

aforesaid;

(d)

in any case where the Authority considers that the

immediate giving of the notice is required, by sending it by

electronic means, to the person concerned, provided that the

means used must be such as to enable the production of proof of

delivery; or

(e)

in any case in which it is not reasonably possible

to effect service or give notice in any of the indicated manners,

in this regulation, whether on all or on any one or more of the

persons on whom service is to be made or the notice is to be

given, by affixing the document to be served or given in a

conspicuous place on the premises to which it relates, and

keeping it so affixed for a period of not less than seven (7)

working days, and by publishing the said notification in the

Gazette.

Notices of suspension and cancellation shall be served in

accordance with regulation 92

Provided that where the person is notified by electronic

means and the Authority does not have evidence that the notice was

received by the said person within twenty-four (24) hours, the

Authority may issue the suspension and, or cancellation notice on its

ORGANISATIONS)

website and the association shall be considered as having been notified

immediately as soon as the notice is visible on such website

Provided further that where the suspension or cancellation

is issued by the Authority with immediate effect, the Authority may

publish such notice prior to the lapse of such twenty-four (24) hours

and the association shall be considered to be notified immediately as

soon as the notice is visible on the website.

(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

ORGANISATIONS)

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.

Part XX

Appointment of Special Administrators

(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

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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.

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