This act gives the department rulemaking authority to implement the provisions of the act, regulate the distribution of hemp extract, and allow clinical trials involving hemp extract.

The department must establish fees that are no greater than the amount necessary to cover the costs the department incurs.

The registration cards issued under this section are valid for one year.

This act requires the registrant's neurologist keep certain records and transmit the records to the department. The department must maintain a database of the records, and may share the records with a higher education institution for the purpose of studying hemp extract.

This act defines the term "hemp extract" as an extract from a cannabis plant or a mixture or preparation containing cannabis plant material that is composed of no more than three tenths percent THC by weight and five percent cannabidiol by weight that contains no other psychoactive substance.

This act provides that a registrant who possesses or uses hemp extract is not subject to the state's controlled substances laws for possession or use of the hemp extract if the possession or use is only for the purpose of treating intractable epilepsy, was originally obtained from a sealed container with a label indicating the hemp extract’s place of origin and a number that corresponds with a certificate of analysis, and a certificate of analysis that contains certain information.

A registrant may possess up to 20 ounces of hemp extract, and may apply for a waiver to possess more than 20 ounces.

This act requires the Department of Agriculture to license up to two nonprofit entities to produce and distribute hemp extract for the treatment of intractable epilepsy. The act provides auditing and inspection provisions for the licensees. Each licensee can have up to three cannabidiol oil care centers in which the licensee is authorized to distribute processed hemp extract to registrants.

The Department of Agriculture must promulgate regulations regarding the manufacture, storage, and transportation of hemp extract and for application requirements for licensing, security requirements, hemp monitoring systems, and other procedures for internal control.

The department must also adopt rules requiring any hemp extract received from a legal source be submitted to a testing facility to ensure the extract complies with the requirements of this act and to ensure it does not contain any pesticides. Any hemp extract not submitted for testing or which is found not to comply with the requirements must not be distributed or used and must be submitted to the department for destruction.

Under this act, all hemp waste from the production of hemp extract must either be destroyed, recycled by the licensee at the hemp cultivation and production facility, or donated to the Department of Agriculture, or an institution of higher education for research purposes, and may not be used for commercial purposes.

In addition to any other penalty, the director may revoke or refuse to issue or renew a cultivation and production facility license and may impose a civil penalty for a violation of the provisions of this act.

This act contains an emergency clause.

MEGHAN LUECKE