Referendum: national production limit and severe fines in the proposed legal cannabis market

A limit on the amount of cannabis that can be grown and heavy fines, including jail time, for sale or illegal supply are key features of the proposed framework to legalize cannabis for personal use.

This morning, Justice Minister Andrew Little released the latest version of the Cannabis Legislation and Control Bill, which sets out what a legal market for personal use would look like.

Voters will decide whether to legalize cannabis for personal use, with a referendum planned in conjunction with the September 19 elections calling on voters to support or oppose the bill.

Many details of the proposed framework have already been released, but today’s release includes new details, including proposed taxes and penalties.

The national production limit would be established by a new national cannabis authority with the aim of reducing general consumption and keeping users away from the black market.

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To counter corporate monopolies, a producer company could not contribute more than 20 percent of the national supply.

The authority would also allocate a share of cannabis production to ensure that Maori and economically disadvantaged areas are able to participate fairly.

People with cannabis convictions for personal use would not automatically be disqualified from obtaining a license to produce cannabis.

The authority, advised by an independent committee of experts, would also set THC’s prices and potency limit.

Legal cannabis would also be introduced in stages, first with dry or fresh cannabis and cannabis seeds, and products like edibles would be considered later.

Cannabis-infused beverages, injectables, or products that included tobacco or alcohol would be prohibited.

Fines or jail time would aim to paralyze gangs or even encourage them to turn their illegal trade into a legal one.

A company fine of $ 100,000 could be imposed or two years in prison for an individual for illegal sales of cannabis, or the offer of such sales.

This increases up to a $ 150,000 fine for a business or four years in prison for an individual for minor sales.

The fines for personal use are much less: a fine of $ 200 to $ 500 for buying or possessing too much, or for smoking a joint in public, and a fine of $ 100 to $ 200 for possession of minors.

Blowing smoke into a minor person’s face could see a fine between $ 500 and $ 1,000.

And a legal cannabis industry would be affected by the consumption tax, the goods and services tax and the restricted taxes for drug treatment and education programs, although the level of the tax or taxes has not been specified.

The Minister of Justice will determine the tax in consultation with the Minister of Finance.

Other details of the proposed framework have been previously published and include a purchase age of 20 years or more, a ban on public consumption, online advertising and sales, and a daily purchase limit of 14 g of dried leaves per day, or the equivalent to about 40 joints

Cannabis use would only be legal at home or in specialized bars, where you could buy products in simple containers and with health warnings.

Limited domestic cultivation would also be allowed (two plants for a household of one, or up to four for a household of at least two people over the age of 20).

The bill’s goal is to reduce cannabis-related harm, and a key question for voters is whether they believe the status quo is better at minimizing that harm than the proposed framework.

The wording of the cannabis referendum question has also been confirmed as a direct Yes / No question:

Do you support the cannabis legalization and control bill?

Yes, I support the cannabis legalization and control bill.

No, I do not support the cannabis legalization and control bill.

The government has rated the referendum as binding, and political parties have said they will honor the outcome of the referendum.

But the bill can be progressed, modified or allowed to languish in the Order Document, depending on the composition and will of the next Parliament.