German lawmakers pass cannabis legalization bill

The German parliament passed a marijuana decriminalization bill on Friday, setting up the country to eventually authorize legal sales to adults.

The legislation, part of an agreement by the country’s three-party coalition government, would legalize cannabis possession and home cultivation for adults and allow non-profit cannabis clubs to supply consumers.

"That's the way that works. Away from punishment. Away from taboo. We have to face up to the problems," German Health Minister Karl Lauterbach said before the law was adopted on Friday afternoon.

The vote has also been closely followed across the Atlantic. 

“It’s a historic moment,” said Omar Khan, a spokesperson for Canadian cannabis company High Tide. “Germany [will] become the first EU country and the second G7 country after Canada to legalize adult use.”

The details: Adults over 18 will be allowed to possess 25 grams of cannabis and grow up to three plants at home. Cannabis clubs will be allowed to supply up to 500 members with a monthly maximum of 50 grams per member.

But the potency of THC — the psychoactive chemical in cannabis — will be restricted for 18- to 21-year-olds in an effort to address the impact of marijuana use on the developing brain.

The impact: The legislation will remove cannabis as a narcotic substance in Germany, which will be a boon to the country’s existing medical marijuana operators.

“The barrier to entry to become [a] cannabis patient gets [lowered],” said Niklas Kouparanis, CEO of German medical cannabis company Bloomwell Group. “The barrier to prescribe cannabis for doctors gets lowered dramatically [too].”

Patients will no longer need to have a chronic disease to obtain a cannabis prescription. And doctors will be able to write a normal prescription rather than a narcotic prescription, Kouparanis explained.

Kouparanis estimates that the medical cannabis market will increase seven- to ten-fold in the next couple years thanks to the reclassification.

The criticism: But in recent days and weeks, the law has been on the brink. Resistance was particularly widespread in Chancellor Olaf Scholz's center-left SPD party. 

The main concern from MPs was that only possession would be legalized and there would be no controlled distribution in licensed stores, they argued. This would not combat organized crime or relieve the burden on the police, as legalization was supposed to do, they said. 

A big worry among the party is that they believe the bill as it stands lacks adequate protection for children. Prohibition zones within sight of playgrounds and schools would be difficult to control, SPD lawmakers said. 

What's next: The decriminalization legislation now heads to the Bundesrat, made up of regional state representatives. 

If the Bundesrat has no objections, the first part of the bill, that would legalize cannabis possession and home cultivation, could be enacted April 1. 

The second part, which regulates cultivation in cannabis clubs, would follow July 1. But it seems more likely that the Bundesrat will use its right to convene a "mediation committee" within three weeks to resolve disagreements with the Bundestag.

Many state governments, even with the participation of the three parties from the federal government, have strong reservations about the law. That could push back implementation into the summer but would not jeopardize it. The Bundestag can still overrule an objection to this type of law.

The decriminalization legislation is what is known as the “first pillar” in a two-step plan to legalize marijuana in the country. The “second pillar” is expected after the decriminalization bill passes, and would set up municipal five-year pilot programs for state-controlled cannabis to be sold in licensed shops.

While there is still work to be done to bring the law into effect, cannabis companies across the pond are excited for the pilot project.

“It opens up a really exciting possibility for us to enter Germany and the European market in terms of brick-and-mortar sales,” said Khan. High Tide has partnered with the Berlin-based cannabis company Sanity Group in preparation for legalization in Germany.