Title 915 | Chapter 002 | Regulation 040REG


PROPOSED
This document is not yet current.
CABINET FOR HEALTH AND FAMILY SERVICES
Office of the Secretary
(New Administrative Regulation)

915 KAR 2:040.Procedures to publish list of varieties of medicinal cannabis.

Section 1.

List of Varieties or Strains of Medicinal Cannabis.

(1)

Beginning January 1, 2026, the cabinet shall conduct regular surveys of licensed cultivators and producers in the Commonwealth to obtain the following information:

(a)

A current list of cannabis varieties or strains being grown and cultivated in the Commonwealth;

(b)

The average total tetrahydrocannabinol (THC) in each variety or strain based on the respective certificates of analysis;

(c)

The average total cannabidiol (CBD) in each variety or strain based on the respective certificates of analysis; and

(d)

The average terpenoid type and concentration in each variety or strain based on the respective certificates of analysis.

(2)

Beginning January 1, 2026, the cabinet shall conduct regular surveys of licensed dispensaries in the Commonwealth to obtain a list of any varieties of medicinal cannabis or medicinal cannabis products requested by cardholders that are not available for sale in the Commonwealth.

(3)

On or before December 1, 2026, the cabinet shall review, compile, and publish the information obtained from the surveys required by this section in print materials for cardholders available on the Web site for the Kentucky Medical Cannabis Program at https://kymedcan.ky.gov. Along with listing the cannabis varieties or strains being grown and cultivated in the Commonwealth, the printed materials may include information regarding:

(a)

Types of cannabis;

(b)

Types and general effects of THC;

(c)

Types and general effects of cannabinoids;

(d)

Types and general effects of terpenoids or terpenes;

(e)

Potential side effects of medicinal cannabis use and consumption;

(f)

Forms of medicinal cannabis and average activation times for different products;

(g)

Dosage or serving size information;

(h)

How to obtain appropriate services or treatment for medicinal cannabis abuse;

(i)

How to dispose of unused medicinal cannabis; and

(j)

Any other information that the cabinet deems appropriate for inclusion.

(4)

The cabinet shall annually review and update the printed materials for cardholders, including the list of cannabis varieties or strains being grown and cultivated in the Commonwealth.

SAM FLYNN, Executive Director
ERIC C. FRIEDLANDER, Secretary
APPROVED BY AGENCY: March 6, 2024
FILED WITH LRC: March 14, 2024 at 11:50 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall, if requested, be held on May 22, 2024, at 9:00 a.m. using the CHFS Office of Legislative and Regulatory Affairs Zoom meeting room. The Zoom invitation will be emailed to each requestor the week prior to the scheduled hearing. Individuals interested in attending this virtual hearing shall notify this agency in writing by May 15, 2024, five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who attends virtually will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on this proposed administrative regulation until May 31, 2024. Send written notification of intent to attend the public hearing or written comments on the proposed administrative regulation to the contact person. Pursuant to KRS 13A.280(8), copies of the statement of consideration and, if applicable, the amended after comments version of the administrative regulation shall be made available upon request.
CONTACT PERSON: Krista Quarles, Policy Analyst, Office of Legislative and Regulatory Affairs, 275 East Main Street 5 W-A, Frankfort, Kentucky 40621; phone 502-564-7476; fax 502-564-7091; email CHFSregs@ky.gov.

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Krista Quarles
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes procedures to publish and annually update a list of varieties of cannabis that possess a low but effective level of tetrahydrocannabinol.
(b) The necessity of this administrative regulation:
This administrative regulation is necessary to carry out the requirements of KRS Chapter 218B, specifically KRS 218B.140.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 218B.140 requires the Cabinet for Health and Family Services to promulgate administrative regulations for the medicinal cannabis program. This administrative regulation sets out procedures to publish and annually update a list of varieties of cannabis that possess a low but effective level of tetrahydrocannabinol.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation establishes procedures to publish and annually update a list of varieties of cannabis that possess a low but effective level of tetrahydrocannabinol.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
Not applicable. This is a new administrative regulation.
(b) The necessity of the amendment to this administrative regulation:
Not applicable. This is a new administrative regulation.
(c) How the amendment conforms to the content of the authorizing statutes:
Not applicable. This is a new administrative regulation.
(d) How the amendment will assist in the effective administration of the statutes:
Not applicable. This is a new administrative regulation.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This administrative regulation affects licensed cultivators and producers, cardholders, and the Kentucky Medical Cannabis Program within the Cabinet for Health and Family Services.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
Licensed cultivators and producers shall participate in surveys conducted by the cabinet regarding the types of cannabis varieties or strains being grown and cultivated in the commonwealth, and the Kentucky Medical Cannabis Program shall compile the information received into print materials for cardholders available on the program’s website. The Kentucky Medical Cannabis Program shall annually review and update the information in the print materials.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
There will be a time investment for licensed cultivators and producers to participate in the surveys conducted by the cabinet, and a cost associated with the cabinet compiling the information into print materials for cardholders.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Information regarding the varieties of cannabis strains being grown and cultivated in the commonwealth will be readily available to cardholders.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
This administrative regulation establishes procedures to publish and annually update a list of varieties of cannabis that possess a low but effective level of tetrahydrocannabinol, starting in 2026. There is no anticipated cost to implement this administrative regulation in the first year.
(b) On a continuing basis:
This administrative regulation establishes procedures to publish and annually update a list of varieties of cannabis that possess a low but effective level of tetrahydrocannabinol. There is an anticipated cost to implement this administrative regulation on a continuing basis as information obtained from surveys must be reviewed annually and print materials updated to reflect the new information received.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
State general funds provided by the commonwealth
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
It is anticipated that an increase in funding will be necessary to implement this regulation as additional staff and resources are necessary to survey licensees, review responses, and compile and regularly update printed materials.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation does not establish or increase any fees.
(9) TIERING: Is tiering applied?
Tiering is not applied. All licensed cultivators and producers will be treated equally.

FISCAL NOTE
(1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
This administrative regulation impacts the Kentucky Medical Cannabis Program within the Cabinet for Health and Family Services.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 218B.140.
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
This administrative regulation is not expected to generate revenue for state or local government in the first year.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
This administrative regulation is not expected to generate revenue for state or local government for subsequent years.
(c) How much will it cost to administer this program for the first year?
This administrative regulation establishes procedures to publish and annually update a list of varieties of cannabis that possess a low but effective level of tetrahydrocannabinol, starting in 2026. There is no anticipated cost to implement this administrative regulation in the first year.
(d) How much will it cost to administer this program for subsequent years?
This administrative regulation establishes procedures to publish and annually update a list of varieties of cannabis that possess a low but effective level of tetrahydrocannabinol. There is an anticipated cost to implement this administrative regulation on a continuing basis as information obtained from surveys must be reviewed annually and print materials updated to reflect the new information received. The cabinet estimates that the total staffing costs for the program on a continuing basis following the first year will be approximately $2,400,000, and a portion of those staffing costs will go toward conducting licensee surveys and compiling that information into print materials for cardholders.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Expenditures (+/-):
Other Explanation:
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
The cabinet does not anticipate any cost savings in the first year.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
The cabinet does not anticipate any cost savings in subsequent years.
(c) How much will it cost the regulated entities for the first year?
The cabinet does not anticipate any cost for licensed cultivators and producers arising out of this administrative regulation in the first year.
(d) How much will it cost the regulated entities for subsequent years?
There will be a time investment for licensed cultivators and producers to participate in the surveys conducted by the cabinet.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
Expenditures (+/-):
Other Explanation:
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
"Major economic impact" means an overall negative or adverse economic impact from an administrative regulation of five hundred thousand dollars ($500,000) or more on state or local government or regulated entities, in aggregate, as determined by the promulgating administrative bodies. [KRS 13A.010(13)] The annual cost estimate to administer all aspects of the Kentucky Medical Cannabis Program is $9,135,398. A portion of those funds will go toward compiling, publishing, and annually updating a list of varieties of cannabis that possess a low but effective level of tetrahydrocannabinol as required by KRS 218B.140(1)(c)(8). The Kentucky Medical Cannabis Program will have a major economic impact on the Cabinet for Health and Family Services, and it is anticipated that an increase in funding will be necessary to administer all of the administrative regulations contained in 915 KAR Chapter 2.

7-Year Expiration: 3/15/2031

Last Updated: 3/27/2024


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