Stricken language would be deleted from and underlined language would be added to present law.

State of Arkansas

91st General Assembly

Regular Session, 2017

A Bill

DRAFT JMB/JMB
HOUSE BILL

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By: Representative D. Douglas

For An Act To Be Entitled

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AN ACT TO CREATE THE ARKANSAS COMPASSIONATE USE ACT

OF 2017; TO EXEMPT CERTAIN DRUGS FROM THE CONTROLLED

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SUBSTANCES ACT SCHEDULE VI; AND FOR OTHER PURPOSES.

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Subtitle

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TO CREATE THE ARKANSAS COMPASSIONATE USE

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ACT OF 2017.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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SECTION 1.

Arkansas Code 5-64-215, concerning the controlled

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substances that are included in Schedule VI of the List of Controlled

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Substances for the State of Arkansas by the Director of the Department of

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Health, is amended to add an additional subsection to read as follows:

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(c)(1)

Schedule VI does not include low-THC cannabis if the low-THC

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cannabis is administered, dispensed, distributed, possessed, produced, or

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used in a lawful manner under the Arkansas Compassionate Use Act of 2017,

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20-6-201 et seq.

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(2)

As used in this section, "low-THC cannabis" means the same

as defined in 20-6-202.

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SECTION 2.

Arkansas Code Title 20, Chapter 6, is amended to add an

additional subchapter to read as follows:

Subchapter 2 Arkansas Compassionate Use Act of 2017

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20-6-201.

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This subchapter shall be known and may be cited as the "Arkansas

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Title.

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Compassionate Use Act of 2017".

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20-6-202.

Definitions.

As used in this subchapter:

(1)

"Caregiver" means the parent or legal guardian of a patient;

(2)

"Dispensing organization" means an organization licensed by

the Department of Health to cultivate, process, and dispense low-THC cannabis

to a patient for whom low-THC cannabis is certified;

(3)(A)

"Healthcare facility" means an office or institution

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providing care or treatment of diseases, whether physical, mental, or

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emotional, or other medical, physiological, or psychological conditions,

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including weight control clinics, homes for the chronically ill,

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laboratories, and offices of surgeons, chiropractors, physical therapists,

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physicians, dentists, and all specialists within these professions.

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(B)

Healthcare facility includes the building or

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buildings in which a medical facility operates, together with all property

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owned or operated by a medical facility that is contiguous to the building or

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buildings in which medical services are provided;

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(4)

"Healthcare professional" means a person who is licensed,

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certified, or otherwise authorized by the laws of this state to administer

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health care in the ordinary course of the practice of his or her profession;

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(5)

"Low-THC cannabis" means the plant Cannabis sativa L., and

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any part of the plant or any compound, manufacture, salt, derivative,

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mixture, preparation, resin, or oil of the plant that contains:

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(A)

tetrahydrocannabinol; and

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Not more than five-tenths percent (0.5%) by weight of

(B)

Not less than ten percent (10%) by weight of

cannabidiol;
(6)

"Medical use" means the ingestion by a means of

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administration other than by smoking of a certified amount of low-THC

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cannabis by an individual for whom low-THC cannabis is certified;

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(7)

"Professional relationship" means at minimum a relationship

established between a healthcare professional and a patient when:

(A)

The healthcare professional has previously conducted

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an in-person examination and is available to provide appropriate follow-up

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care, when necessary, at medically necessary intervals;

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(B)

The healthcare professional personally knows the

patient and the patient's relevant health status through an ongoing personal

or professional relationship and is available to provide appropriate follow-

up care, when necessary, at medically necessary intervals;

(C)

The treatment is provided by a healthcare professional

in consultation with, or upon referral by, another healthcare professional

who has an ongoing relationship with the patient and who has agreed to

supervise the patient's treatment, including follow-up care;

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(D)

An on-call or cross-coverage arrangement exists with

the patient's regular treating healthcare professional;

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(E)

A relationship exists in other circumstances as

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defined by rule of the Arkansas State Medical Board for healthcare

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professionals under its jurisdiction and their patients; or

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(F)

A relationship exists in other circumstances as

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defined by rule of a licensing or certification board for other healthcare

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professionals under the jurisdiction of the appropriate board and their

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patients if the rules are no less restrictive than the rules of the Arkansas

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State Medical Board; and

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(8)

"Qualified physician" means a physician who is licensed by

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the Arkansas State Medical Board and has been issued a registration number

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from the United States Drug Enforcement Administration to prescribe

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controlled substances;

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(9)

"Qualifying condition" means one (1) or more of the

following:

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(A)

Cancer when the diagnosis is end-stage or the

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treatment produces related wasting illness, recalcitrant nausea, and

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vomiting;

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(B)
severe or end-stage;

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Amyotrophic lateral sclerosis when the diagnosis is

(C)

Seizure disorders related to a diagnosis of epilepsy

or trauma-related head injuries;

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(D)

Multiple sclerosis when the diagnosis is severe or

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(E)

Crohn's disease;

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(F)

Mitochondrial disease;

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(G)

Parkinson's disease when the diagnosis is severe or

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end-stage;

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end-stage; or

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(H)
end-state;

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Sickle cell disease when the diagnosis is severe or

(10)

"Smoking" means burning or igniting a substance and

inhaling the smoke.

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20-6-203.

(a)

Certification Treatment plan.

A qualified physician may certify the medical use of low-THC

cannabis to alleviate a qualifying condition of the patient if:

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(1)

The patient is a permanent resident of Arkansas;

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(2)

The qualified physician of the patient has a professional

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relationship with the patient when certifying the low-THC cannabis and

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complies with the registration requirements under 20-6-204(b); and

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(3)

The qualified physician certifies to the Department of

Health that:

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(A)

The patient is diagnosed with a qualifying condition;

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(B)

The qualified physician determines that the risk of

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the medical use of low-THC cannabis by the patient is reasonable in light of

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the potential benefit for the patient;

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(C)

If the patient is a minor or incompetent, the

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caregiver provides written consent for the medical use of low-THC cannabis;

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and

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(D)

Another qualified physician has concurred with the

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determination of subdivision (a)(3)(B) of this section and the concurrence is

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recorded in the medical record of the patient.

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(b)

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that indicates:

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(1)

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The qualified physician shall maintain a patient treatment plan

The dosage, means of administration, and the planned

duration of medical use of the low-THC cannabis; and

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(2)

A plan for monitoring:

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(A)

The symptoms of the patient; and

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(B)

The indicators of tolerance or reaction to the low-THC

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cannabis.

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20-6-204.

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(a)(1)

Compassionate Use Registry.

The Department of Health shall establish and maintain a secure

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online registry which shall be known and may be cited as the "Compassionate

Use Registry" to contain:

(A)

The name of the qualified physician;

(B)

The name of the patient and if applicable, the name of

the caregiver or caregivers;

(C)

The date of birth of the patient;

(D)

The dosage of low-THC cannabis certified for the

(E)

The means of administration for the low-THC cannabis;

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(F)

The total amount of low-THC cannabis required to fill

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patient;

the certification of the patient; and

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(G)

by a dispensing organization to a patient or caregiver.

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(2)

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The department shall ensure that the registry:

(A)

Is designed to prevent more than one (1) qualified

physician from registering as the qualified physician for a single patient;

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(B)

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A record of each amount of low-THC cannabis dispensed

Is accessible:
(i)

Upon written request of a patient or caregiver;

and

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(ii)

To law enforcement agencies and dispensing

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organizations for the purpose of verifying whether a patient has been

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certified for the medical use of low-THC cannabis and whether a certification

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for a patient has been filled; and

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(C)

Allows a qualified physician to input safety and

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efficacy data derived from the treatment of patients for whom low-THC

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cannabis is certified.

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(b)(1)

Prior to certifying or renewing a certification for low-THC

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cannabis, a qualified physician shall register as the qualified physician for

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the patient in the registry maintained by the department after submitting an

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application and a reasonable fee, each determined by the department.

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(2)

A qualified physician who is registered as a qualified

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physician shall submit to the department quarterly reports to include without

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limitation dosage recommendation for a particular condition and in

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consideration of clinical responses, patient compliance, patient responses to

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treatment, side effects, and drug interactions.

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(c)(1)(A)

Prior to obtaining low-THC cannabis, a patient and a

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caregiver shall submit a registration application and a nominal fee, each

determined by the department.

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(B)
that advises that:

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(i)

The use of low-THC cannabis has not been

approved by the United States Food and Drug Administration; and

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The registration application shall include a waiver

(ii)

The clinical benefits are unknown and may cause

harm.

(2)

The department shall issue a patient registration card to

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each patient and caregiver as soon as practicable if a patient meets the

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requirements of subdivision (c)(1) and 20-6-204.

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20-6-205.

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(a)

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Dispensing organization registration.

Each director, manager, and employee of a dispensing organization

shall apply for and obtain a registration.

(b)

An applicant for registration shall:

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(1)

Be at least eighteen (18) years old;

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(2)

Submit a complete set of fingerprints to the Department of

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Health in the manner determined by the department;

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(3)

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department; and

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(4)

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Pass a criminal background check as determined by the

Submit appropriate registration forms and fees as determined

by the department.
(c)

A registration issued or renewed under this section expires on the

second anniversary of the date of issuance or renewal as applicable.

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20-6-206.

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The Department of Health shall:

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(1)

Powers and duties.

Issue or renew a license to operate as a dispensing

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organization to each applicant that satisfies the requirements established

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under this subchapter;

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(2)

Register each director, manager, and employee of a

dispensing organization;

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(3)

Establish a procedure for a criminal background check of

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each director, manager, and employee of a dispensing organization that shall

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include:
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(A)

submit a complete set of fingerprints to the department;

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The manner by which an individual is required to

(B)

The criteria for determining whether an individual

passes the criminal background check; and

(C)

The means by which written notification of the

criminal background check is provided to the dispensing organization and the

individual who is the subject of the criminal background check;

(4)

Enforce compliance of licensees and registrants;

(5)

Establish procedures to assist qualified physicians in

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providing information relating to certification and matters relating to the

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issuance of certifications;

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(6)

Adopt criteria and procedures for denying, suspending, or

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revoking a license or registration issued under this subchapter and for

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renewing a license or registration under this subchapter; and

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(7)

Adopt rules necessary for the implementation,

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administration, registration, and enforcement of this subchapter, including

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without limitation rules imposing fees.

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20-6-207.

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(a)

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Licensing Dispensing organization.

A dispensing organization shall obtain a license from the

Department of Health prior to operating as a dispensing organization.

(b)

An applicant for a license to operate as a dispensing organization

is eligible for the license if:

(1)

As determined by the department, the applicant possesses:

(A)

The technical and technological ability to cultivate,

process, and dispense low-THC cannabis; and

(B)

The ability to:

(i)

Secure the resources and personnel necessary to

operate as a dispensing organization;

(ii)

Secure premises reasonably located to allow

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patients listed on the Compassionate Use Registry access to the dispensing

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organization through existing infrastructure;

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(iii)

Maintain accountability for the raw materials,

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the finished product, and any by-products used or produced in the

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cultivation, processing, or dispensing of low-THC cannabis to prevent

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unlawful access to or unlawful diversion or possession of those raw

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materials, finished products, or by-products; and

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(iv)

Financially maintain operations for not less

than two (2) years from the date of application;

(2)

Each director, manager, and employee of the applicant is

registered under this subchapter and passes a criminal background check as

determined by the department;

(3)

The applicant satisfies any additional criteria determined

by the Director of the Department of Health to be necessary to safely

implement this subchapter;

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(4)

The applicant passes a criminal background check; and

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(5)

The applicant submits an application fee and an application

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form prescribed by the department that includes without limitation:

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(A)

The name and address of the applicant;

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(B)

The name and address of each director, manager, and

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employee of the applicant; and

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(C)

department to determine eligibility for the license.

(c)

A dispensing organization may apply for a renewal license by

submitting an application form and renewal fee.

(d)(1)

The department shall issue or renew a license to operate a

dispensing organization only if:

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Any other information considered necessary by the

(A)

The department determines that the applicant meets the

eligibility requirements; and

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(B)

The issuance or renewal of the license is necessary to

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ensure the availability of and reasonable statewide access to low-THC

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cannabis for patients registered in the Compassionate Use Registry and for

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whom low-THC cannabis is certified.

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(2)

grounds for denial to the applicant.

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(3)

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If the department denies the issuance or renewal of a

license, the applicant is entitled to a hearing.

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The department shall issue a written notice explaining

(4)

A license issued or renewed under this section expires on

the second anniversary of the date of issuance or renewal, as applicable.

(e)(1)

Prior to hiring a director, manager, or employee, the

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dispensing organization shall provide the department with the name of the

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prospective hire.
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(2)

Before the department may approve a request for the transfer

of a license to another individual or entity, the prospective individual or

entity and each director, manager, and employee of the prospective individual

or entity shall pass a criminal background check as determined by the

department.

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(f)

A dispensing organization licensed under this subchapter shall be

in compliance at all times with the eligibility requirements of this section.

(g)(1)

Before dispensing low-THC cannabis to an individual who has a

certification for low-THC cannabis under the certification of a qualified

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physician, a dispensing organization shall verify that the certification:

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(B)

Matches the entry in the registry with respect to the

total amount of low-THC cannabis required to fill the certification; and

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Is for an individual listed as a patient in the

registry;

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(A)

(C)

Has not previously been filled by a dispensing

organization as indicated by an entry in the registry.

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(2)

After dispensing low-THC cannabis to an individual who has a

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certification for low-THC cannabis, the dispensing organization shall record

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in the registry the form and quantity of low-THC cannabis dispensed, the date

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of the dispensation, and the time of the dispensation.

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20-6-208.

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(a)

License suspension Revocation.

If the Department of Health determines that a licensed dispensing

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organization has been or is out of compliance with the eligibility

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requirements under 20-6-206 or has failed to comply with a duty imposed by

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this subchapter, the Department of Health may suspend or revoke the license

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of the dispensing organization.

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(b)(1)

The Director of the Department of Health shall issue a written

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notice to the licensee regarding the license suspension or revocation that

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includes the grounds for suspension or revocation.

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(2)

The notice shall be sent via certified mail with return

receipt requested.
(c)(1)(A)

The director may seize or place under seal all low-THC

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cannabis and drug paraphernalia owned or possessed by the dispensing

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organization after suspending or revoking the license of the dispensing

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organization.
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(B)

The Department of Arkansas State Police shall assist

the Department of Health in the seizure and sealing process and in the

storage of all seized or sealed low-THC cannabis and drug paraphernalia.

(2)

The seized or sealed low-THC cannabis or drug paraphernalia

shall not be disposed of until the time for an administrative appeal of the

suspension or revocation has elapsed or until all appeals have been

concluded.

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(3)

Upon a final revocation order, all seized or sealed low-THC

cannabis and drug paraphernalia shall be forfeited to the state.

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20-6-209.

Preemption.

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A municipality, county, or other political subdivision of the state

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shall not enact, adopt, or enforce a rule, ordinance, order, resolution, or

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other regulation that prohibits the possession or medical use of low-THC

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cannabis by a patient with a certification by a qualified physician for

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medical use of low-THC cannabis, or the cultivation, processing, or

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dispensing of low-THC cannabis by a licensed dispensing organization, as

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authorized by this subchapter.

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20-6-210.

Liability.

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A healthcare professional or a healthcare facility is not subject to

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civil liability, administrative action by a licensing board, or other

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detrimental action for allowing an individual or caregiver to possess,

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administer, or use low-THC cannabis on the premises of a healthcare facility

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if the possession of low-THC cannabis is in accordance with this subchapter.

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