Such a move would effectively legalize consumption, growing and distribution of what is currently viewed as an illegal drug.
The group believes that the acquisition and possession of up to ten grams of cannabis should be permitted to anyone from the age of 16 years.
The initiative recommends that cannabis should be controlled and sold through tobacconists, pharmacies and other licensed distributors only.
For anything beyond growing for personal use, they recommend that a state license would be necessary, which would include payment of tax.
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"The supporters hope for a high level of participation from an estimated one million Austrian users of cannabis," they said in a press release.