Cannabis regulatory authority established

CCRA to regulate cultivation, extraction, medical and industrial use as well as sale of cannabis plant

ISLAMABAD:

President Dr Arif Alvi has officially promulgated an ordinance paving the way for the establishment of the Cannabis Control and Regulatory Authority (CCRA).

The primary objective of the newly established authority is to oversee and regulate the cultivation, extraction, medical and industrial use, as well as the sale of the cannabis plant.

Under its governance, a 13-member board of governors will administer control, with the chairmanship held by the secretary of the defence division.

The Board will consist of members such as the cabinet secretary, the secretary of law and justice, and the secretary of national food security and research.

Additionally, the board will include the chief secretaries of the four provinces, two members from the private sector, representatives from ISI, IB, AINF, and DRAP.

The board will advise the federal government on cannabis-related matters, including policy decisions, amendments, or omissions. It will also have the authority to issue licenses.At the local level, the government will formulate a national policy governing the cultivation, sale, and production of cannabis plants. Licenses will be issued for five years under this ordinance.

Furthermore, the authority has been tasked with various functions including policy-making, advising the government, formulating procedures for fund utilisation, specifying fees and charges, issuing licenses and quality controls.

The regulator will coordinate with provincial governments and international counterparts, conducting research and development, ensuring security standards, issuing certifications, maintaining lists of violators, and operating laboratories and testing facilities.

The board of governors, appointed by the prime minister, will oversee the authority's operations and make policy decisions subject to government approval.

The ordinance also outlines the procedures for board meetings, including quorum and decision-making processes.

Additionally, it mandates the appointment of a director general, who may be an officer in the service of Pakistan, to oversee the authority's day-to-day functions. The DG of the authority will hold a rank not below BPS-21 or its equivalent.

Meanwhile, legal immunity is also provided to the director general, members, and employees for actions performed in good faith under the ordinance.

A national cannabis policy will also be formulated by the federal government, addressing the cultivation, production, sale, and import/export of cannabis derivatives, with input from relevant bodies.A fund will be established for the authority's operation, consisting of various revenue sources including government grants and fees.

Auditors, appointed by the authority with the approval of the federal government, will conduct an audit of the authority's accounts annually.

The authority must publish its annual accounts and auditors' reports in the official gazette and present them to the parliament.

The authority has been allowed to invest its surplus funds and maintain bank accounts in rupees or foreign currencies.

A committee will be established to consider license applications for pharmaceutical, herbal, and nutraceutical purposes from cannabis plant derivatives.

License holders will have various duties, including compliance with licensing conditions and contributing to the Authority's fund. The authority will also set safety and performance standards for regulated activities with consultation from relevant agencies.

The authority has also been empowered to conduct inspections of licensees' premises and investigate violations, with penalties for non-compliance.

The Control of Narcotic Substances Act, 1997, and other relevant laws will apply for the trial of criminal offences under this ordinance.

Individuals or companies contravening the ordinance or its regulations may face fines ranging from Rs1 million to Rs10 million for individuals and Rs10,000,000 to Rs200,000,000 for companies. Additional fines may apply for continuing defaults.Persons dissatisfied with authority decisions may appeal to the high court within thirty days. Appeals against decisions by authority officers must be made to the authority itself within thirty days.

Moreover, the authority may prohibit individuals from engaging in regulated activities or require them to cease dealings with violators. Prohibitions or requirements may be rescinded or varied by the authority if violations cease to exist.

The authority may suspend or revoke licenses for consistent non-compliance, following a show cause notice and opportunity to rectify the omission.

The authority will cooperate with the Anti-Narcotics Force in cases of suspected offences under relevant laws.

The federal government can make rules regarding various aspects of the ordinance, subject to public opinion and response publication requirements.  The authority can make regulations to facilitate ordinance implementation, subject to similar public opinion and response publication requirements.

The ordinance does not diminish the powers of the Anti-Narcotics Force or other relevant laws unless otherwise specified.

The federal government can issue orders to resolve difficulties in implementing the ordinance, provided they align with its provisions and rules.