S.L. 628.1 Art. 95Appointment 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 ORGANISATIONS)

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. FIRST SCHEDULE 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.

 SECOND SCHEDULE Substituted by: 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 7:

(a) distributes income to administrators, employees, or any other private interests, except as expressly permitted by these regulations or by the Authority, pays remuneration, fees or other compensation for goods or services at higher than market rates as determined by the Authority;

(b) otherwise causes or permits the distribution of the association’s income in a manner that violates the not-for-profit principles established in these regulations, shall be guilty of an offence and shall on conviction be liable to a fine (multa) of not less than two thousand euro (€2,000) and not more than fifty thousand euro (€50,000), or double the compensation 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 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.

(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).

(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 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).

(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. THIRD SCHEDULE 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.