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History of Legalization
Uruguay’s House of Representatives held a debate on July 31, 2013, during which 50 of the 96 lawmakers supported and passed Bill 534 which legalizes the production, distribution, and recreational use of marijuana. The bill passed through Uruguay’s House of Representatives, then traveled to the Senate for a final evaluation; the left wing party of the Senate, the Frente Amplio (translated as the “Broad Front”), won the eleven hour debate with a 16 to 13 majority, and sent the bill to president Jose Mujica, who signed Bill 534 into law. According to President Jose Mujica’s chief of staff, Diego Canepa, “The state is able to better regulate a visible market than an invisible market. When a market is illegal the regulatory capacity of the state is much less”. By depriving the black market of an illicit, previously illegal revenue source, the government hopes to see a significant reduction in unregulated drug trafficking and distribution. Most drug trafficking in Uruguay is related to recreational cannabis use and distribution. The Uruguayan government also sees legalizing the sale of marijuana as a way to increase the nation’s agricultural financial net worth; Uruguay is an agricultural nation consisting of 3.3 million people. Secretary-General Calzada said that the goal is to stop the smuggling of cannabis from Paraguay. This black market supplies inexpensive marijuana to 25,000 habitual Uruguayan users and is valued at $20 to $30 million (USD). It is also attributed to an increase in homicides and robberies. "People traffic drugs to make money, and we are taking that away," he said. "We're not saying that we're going to end the black market. We're saying we're going to seriously upset it." Officials estimate that, by distributing 22 tons of marijuana in 2014, the government could annually make $40 million (USD). Individual marijuana clubs can have up to fifteen people growing ninety-nine plants, helping eliminate joblessness and boost total economic revenue in Uruguay. According to United Nations records, marijuana was globally the most trafficked, consumed, and produced recreational drug in 2010, and it has an estimated 119-224 million adult users , excluding those with medical marijuana usage. Over a ten year period from 1998 to 2008, annual global consumption increased by 8.5%. Annually, Uruguay’s marijuana market is worth $75 million (USD).

The National Cannabis Institute
Uruguay’s National Cannabis Institute (Instituto Nacional del Cannabis), or the INC, grants licenses to individuals and memberships to cannabis clubs. It also regulates and documents all records of “self-cultivation”, wherein an individual may possess less than 40g (1.4 oz). Minors and foreigners will be excluded from the group able to grow, distribute, and use any cannabis related product; driving while under the influence of marijuana remains illegal. The INC may also issue punishments for violations that are not in compliance with Bill 534’s provisions. These violations include, but are not limited to, selling marijuana to minors, driving under the influence, producing more than the allotted mount of marijuana allowed per club, selling to tourists and nations outside of Uruguay, and many more. Such violations are punishable by warnings, penalties, confiscations, destruction, suspensions, disqualification, or closing of establishments, and the INC maintains the ability to decide how to appropriately reprimand individual violations. The INC also regulates memberships by allowing legally entitled marijuana clubs to produce an amount of up to 7,200 grams per year within the ninety-nine plant parameters. Private firms will be allowed to cultivate and produce marijuana, but the yielded cannabis must be sold to the government. For individuals under Article 31 of Bill 534, any person with less than forty grams of recreational marijuana will fall under the personal consumer category. Permits will also be granted by the government for the limited production of marijuana for the domestic market and sales to pharmacies.

Commercializing Cannabis
Many people feared that the legalization of marijuana would be treated as tobacco was in the media; sponsoring, reaching out to children, increasing its sale and thus health risks. Under Article 9 of Bill 534, there is to be absolutely no advertisement of marijuana or its products in all prominent forms of media. This prohibition echoes other nations’ legal halts on the commercialization of tobacco. The government of Uruguay believes that this law will allow law enforcement more time to combat violent crime and to focus on preventing the smuggling of harder drugs. Other Latin American countries, such as Colombia and Guatemala, are considering similar action but want to do so as part of an international movement. This idea has been blocked for quite some time by other countries, including the United States.