On Wednesday, Australia took an important step towards legalising medical cannabis after amendments to the Narcotics Drugs Act passed the senate.

The Narcotic Drugs Amendment Bill 2016, introduced by Minister for Health Sussan Ley on Feb. 10, will create a national licensing scheme for the controlled cultivation of medical cannabis in Australia. The consumption of medical marijuana remains illegal, with some exceptions, in Australian states and territories.

The bill will allow the government to issue licenses allowing the manufacture of medical cannabis products and research into medical uses of the drug. Those who receive such licenses will have to be proven to be a “fit and proper person,” and there will be penalties for misuse.

In a statement, Ley called the bill’s passing “an historic day.”

“This is the missing piece in a patient’s treatment journey and will now see seamless access to locally-produced medicinal cannabis products from farm to pharmacy,” she said. 

Ley added that the Department of Health is also considering down-scheduling medical cannabis in the Poisons Schedule. “This will simplify arrangements around the legal possession of medicinal cannabis products, placing them in the same category as restricted medicines such as morphine, rather than an illicit drug,” she said.

“Each state and territory would need to give effect to any decision to down-schedule in their own jurisdiction,” a spokesperson for Minister Ley clarified. “For some states this happens automatically; others need to make changes to their regulations.”

Michael Katz, a lecturer at the University of Sydney Business School who is researching the medical cannabis industry, told Mashable Australia the legislation change is “a great first step.”

In Australia, drug law enforcement is dictated state by state. In Katz’s view, the bill provides a federal framework to create a legal supply chain when the states are ready to legalise the consumption of medical cannabis and the associated manufacturing industry.

“There’s still significant work needed on the legal side, particularly on the state level to amend some of their acts.”

“There’s still significant work needed on the legal side, particularly on the state level to amend some of their acts,” he said. “We’ve already seen an appetite on the state level in Victoria, Queensland and now New South Wales.”

Medical cannabis is available through specific, limited schemes on a federal level and in some states. In NSW, for example, adults with a terminal illness can register with the Terminal Illness Cannabis Scheme, allowing police the discretion not charge them with drug possession. However, some state governments have signalled they would be open to passing more comprehensive schemes allowing medical cannabis consumption in the near future. 

In October 2015, for example, the Victorian Government introduced a bill that would allow patients in “exceptional circumstances” to access medicinal cannabis products. It’s expected to be debated in early 2016. Victoria and NSW have both proposed medical cannabis trials.

According to Katz, by passing this bill, the Australian government will hopefully avoid the legal problems — from tax to labour laws — experienced in the U.S., where states, including Colorado, have legalised the consumption and limited sale of marijuana but where the drug remains illegal on a federal level.

“That’s caused really a lot of confusion around what’s legal, what’s not,” Katz said. “[Regarding] how these legal entities [that sell cannabis in Colorado] can operate on a federal level … a lot of them can’t use banks that operate at a national level because it’s illegal.”

By moving quickly, Australia has hopefully avoided that disconnect. “What this means for Australia is when the states go through their process, they’ll be doing so within a national framework,” he added. “As they approve things on their end, they’ll be entering into an orderly process.”

In other words, the path to medical cannabis in Australia could be nice and smooth if the states get on board.

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