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The closed coffeeshop chain experiment: Not a step towards legalization

On April 7, 2025, the experimental phase of the Closed Coffee Shop Chain Experiment will begin, marking an important step in regulating cannabis production and sales in the Netherlands. Ten municipalities will then exclusively focus on the sale of regulated cannabis products, supplied by selected growers. This experiment is presented as an opportunity to examine whether a fully regulated cannabis chain can replace the illegal market. However, the reality is different: this experiment is not a stepping stone to nationwide legalization. In fact, it may simply end without leading to any lasting changes.


A fundamental difference

While both the initiative law and the experiment law aim to address issues surrounding cannabis cultivation and sales, their objectives and legal approaches differ fundamentally.


The initiative law: codification and expansion of the

tolerance policy

The initiative bill, submitted by Vera Bergkamp (D66) in 2015, aimed to expand the existing tolerance policy for coffee shops to include cannabis cultivation. The primary goal was to resolve the so-called backdoor problem: coffee shops are allowed to sell cannabis (tolerated), but must obtain their stock illegally.


Objectives of the initiative law:

  1. Codification of the Tolerance Policy: The bill aimed to legally enshrine the existing tolerance policy, ensuring that not only sales but also cultivation would be tolerated under specific conditions.

  2. Expansion to Cultivation: The tolerance policy would be extended to growers, who could cultivate cannabis under a tolerance permit for sale to coffee shops.

  3. Decentralization: Municipalities would play a larger role in determining local coffee shop policies, such as the maximum number of coffee shops and rules for their establishment and operations.

The initiative law envisioned a step toward nationwide regulation, offering growers and coffee shops more legal certainty. For many supporters, it was seen as the foundation for a regulated cannabis market in the Netherlands.


The experiment law: a temporary Trial

The Closed Coffee Shop Chain Experiment Law, which came into effect on July 1, 2020, adopts a completely different approach. It is a temporary trial aimed at studying the effects of a fully regulated cannabis chain. The experiment will be conducted in ten selected municipalities and will last for a maximum of four years.


Objectives of the experiment law:

  1. Closed chain: Within the experiment, selected growers may produce cannabis, which can only be sold in coffee shops in participating municipalities.

  2. Full regulation: Within the experimental chain, there is no tolerance policy; cultivation and sales are fully regulated and no longer punishable.

  3. Scientific research: The experiment aims to determine whether a regulated chain can reduce the illegal market and to assess its effects on public health, safety, and crime.

The experiment is explicitly intended as a trial, with no guarantee that its results will lead to nationwide regulation.


Key differences between the laws

Aspect

Initiative Law (D66)

Experiment Law

Objective

Codify and expand the tolerance policy

Examine whether a closed chain is feasible and desirable

Scope

Nationwide policy for coffee shops and growers

Temporary trial in ten municipalities

Legal Framework

Tolerance permits for sales and cultivation

Full regulation within the experimental chain

Role of Municipalities

Central role in establishing local coffee shop policies

Municipalities implement experimental rules with limited influence

Punishability

Punishability remains, but is suspended under the tolerance policy

Punishability is temporarily lifted within the chain

Tensions between the models

The differences between the initiative law and the experiment law create tensions and misunderstandings. Many stakeholders and observers still perceive the experiment as a stepping stone toward the full regulation envisioned in the initiative law. However, this is not the case. As stated in the parliamentary documents: “The government believes that the legal framework chosen for the experiment, namely regulating the entire coffee shop chain, is preferable to codifying and expanding the tolerance policy.” (Eerste Kamer, 2021, p. 5).


End of the experiment: regulation or return to the old system?

The initiative law was an ambitious attempt to structurally regulate cannabis production and sales and resolve the backdoor problem. The experiment law, by contrast, is a temporary and limited trial aimed at gathering scientific insights. As explicitly stated in the parliamentary documents: “If the results of the experiment do not lead to a situation in which regulation is deemed desirable, the experimental regulations will expire, and the current policy will be reinstated (or it may even be decided to discontinue the current tolerance policy).” (Eerste Kamer, 2021, p. 6).


If the experiment concludes without positive results or political support, all stakeholders—coffee shop owners, growers, and municipalities—will revert to the old situation governed by the current tolerance policy. The experiment law will then lapse, and the regulation and collaboration established within the closed chain will be entirely dismantled. This not only creates uncertainty but may also erode trust among the parties that complied with the strict requirements of the experiment. The prospect that even the current tolerance policy could be questioned makes the situation even more precarious.


With the experimental phase starting on April 7, 2025, it is crucial to consider what must happen after the experiment ends. Without a clear plan, the insights and efforts gained could be lost, leading to a return to the problematic status quo. It is essential to define how any eventual nationwide regulation will be structured and to prepare for progress. The focus must be on creating a forward-looking and sustainable policy that not only resolves the backdoor problem but also establishes a robust foundation for a regulated and controlled cannabis market in the Netherlands. Only by making concrete choices and formulating a vision now can we prevent the experiment from ending in stagnation and uncertainty.


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©2024 by Simone van Breda.

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