19Condition that medicinal cannabis licence holder be party to certain contracts

19 Condition that medicinal cannabis licence holder be party to certain contracts

Licences authorising cultivation but not production (1) For the purposes of subsection 10J(1) of the Act, the following matters are prescribed as matters that must be dealt with by a contract referred to in that subsection: (a) the range of concentration of tetrahydrocannabinol that will be contained in the cannabis plants to be supplied; (b) the number of cannabis plants to be supplied. Licences authorising production (2) For the purposes of paragraph 10J(2)(c) of the Act, the following matters are prescribed as matters that must be dealt with by a contract referred to in that paragraph: (a) the range of concentration of tetrahydrocannabinol that will be contained in the cannabis plants to be used to produce the cannabis or cannabis resin to be supplied; (b) the quantity of cannabis or cannabis resin to be supplied. Circumstances in which contract not required—licences authorising cultivation but not production (3) For the purposes of paragraph 10J(3)(a) of the Act, the circumstances referred to in subsection (4) of this section are prescribed as circumstances in which a contract referred to in subsection 10J(1) of the Act is not required to be in existence. (4) For the purposes of subsection (3), the circumstances are that: (a) a contract between: (i) the holder (the first licence holder) of a medicinal cannabis licence of a kind referred to in paragraph 10J(1)(a) of the Act; and (ii) the holder of another medicinal cannabis licence that authorises the production of cannabis or cannabis resin; has ceased to be in existence and the first licence holder is taking steps to arrange a new contract with another holder of a medicinal cannabis licence that authorises the production of cannabis or cannabis resin; or (b) the first licence holder’s licence has been suspended under the Act. (5) Paragraph (4)(a) ceases to apply in relation to the first licence holder if the first licence holder fails to arrange a new contract within 4 months after the contract mentioned in that paragraph has ceased to be in existence. Circumstances in which contract not required—licences authorising production (6) For the purposes of paragraph 10J(3)(a) of the Act, the circumstances referred to in subsection (7) of this section are prescribed as circumstances in which a contract referred to in paragraph 10J(2)(c) of the Act is not required to be in existence. (7) For the purposes of subsection (6), the circumstances are that: (a) a contract between: (i) the holder (the first licence holder) of a medicinal cannabis licence of a kind referred to in paragraph 10J(2)(a) of the Act; and (ii) the holder of another medicinal cannabis licence that authorises the manufacture of a cannabis drug; has ceased to be in existence and the first licence holder is taking steps to arrange a new contract with another holder of a medicinal cannabis licence that authorises such manufacture; or (b) the first licence holder’s licence has been suspended under the Act. (8) Paragraph (7)(a) ceases to apply in relation to the first licence holder if the first licence holder fails to arrange a new contract within 4 months after the contract mentioned in that paragraph has ceased to be in existence. (9) For the purposes of paragraph 10J(3)(a) of the Act, the circumstances referred to in subsection (10) of this section are prescribed as circumstances in which a contract referred to in paragraph 10J(2)(c) of the Act is not required to be in existence. (10) For the purposes of subsection (9), the circumstances are that the production of the cannabis or cannabis resin is for the supply of the cannabis or cannabis resin to a person who holds a licence under Part 3‑3 of the Therapeutic Goods Act 1989 for use by that person in the manufacture of a medicine (within the meaning of that Act).