AB 1040

This bill creates a program that allows a registered patient to possess and use

medical cannabis products; allows designated caregivers to possess medical

cannabis products on behalf of registered patients; licenses and regulates medical

cannabis growers, processors, and testing laboratories; and directs the state to

establish state-owned dispensaries to sell medical cannabis products. No person

may possess, sell, transfer, or transport cannabis or medical cannabis products

unless the person is licensed or registered as provided in the bill. Under the bill,

“medical cannabis products” includes products in the form of concentrates, oils,

tinctures, edibles, pills, topical forms, gels, creams, vapors, patches, liquids, and

forms administered by a nebulizer but excludes cannabis in a form that can be

smoked. Major provisions of the bill are summarized as follows.

Office of Medical Cannabis Regulation

The bill creates the Office of Medical Cannabis Regulation to establish and

manage the patient and caregiver registry (described below) and to oversee the

dispensing of medical cannabis products. The office is attached to the Department

of Health Services. The head of the office is a director who is appointed by the

governor and confirmed by the senate to serve at the pleasure of the governor. If the

position of director of the office remains vacant for a period of at least 90 days and

the governor has not filled the vacancy, the bill directs the Joint Committee on

Legislative Organization to appoint the director of the office.

DATCP duties

The bill requires the Department of Agriculture, Trade and Consumer

Protection to oversee and regulate the growing of cannabis and the processing and

testing of medical cannabis products. The bill requires DATCP to promulgate rules

establishing safety and security requirements for the premises of growers,

processors, and laboratories that handle cannabis or medical cannabis products.

Cannabis grower licenses

The bill requires any person operating as a cannabis grower to obtain a license

from DATCP. To obtain a cannabis grower license, the applicant or at least 80 percent

of the principal officers or board members of the applicant must be residents of this

state. Further, neither the applicant nor any principal officer or board member of the

applicant may have been convicted of any crime, unless at least 10 years have passed

since the completion of any sentence imposed for the crime, including any period of

incarceration, parole, or extended supervision, and any period of probation imposed

for the crime.

Under the bill, a licensed cannabis grower may plant, grow, cultivate, and

harvest cannabis; transport cannabis to or from any licensed grower, processor, or

laboratory; transfer or sell cannabis to a processor that is contracted with and

licensed by DATCP; and engage in any related activities that are necessary for the

operation, such as possessing and storing cannabis. The applicant must also submit