Hawaii-2022-HB1873-Introduced

SECTION 1. Section 141-42, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) It shall be legal for an individual or entity to produce hemp, as defined in title 7 United States Code section 1639o, if that individual or entity has a license to produce hemp, issued by the Secretary of the United States Department of Agriculture pursuant to title 7 United States Code section 1639q; provided that:

(1) Any person convicted of a felony related to a controlled substance under state or federal law is prohibited from producing hemp, or being a key participant in an entity producing hemp, for a period of ten years following the date of conviction;

(2) Hemp shall not be grown outside of a state agricultural district;

(3) Hemp shall not be grown within [~~500~~] one hundred feet of pre-existing real property comprising a playground, childcare facility, or school; provided that this restriction shall not apply to an individual or entity licensed to grow hemp in those areas under the State industrial hemp pilot program prior to August 27, 2020;

(4) Hemp shall not be grown within [~~500~~] one hundred feet of any pre-existing house, dwelling unit, residential apartment, or other residential structure that is not owned or controlled by the license holder; provided that this restriction shall not apply to an individual or entity licensed to grow hemp in those areas under the State industrial hemp pilot program prior to August 27, 2020; and

(5) Hemp shall not be grown in any house, dwelling unit, residential apartment, or other residential structure."

SECTION 2. Section 328G-1, Hawaii Revised Statutes, is amended by amending the definition of "enclosed indoor facility" to read as follows:

""Enclosed indoor facility" means a permanent, stationary structure with a solid floor, rigid exterior walls that encircle the entire structure on all sides, and a roof that protects the entire interior area from the elements of weather. Nothing in this definition shall be construed to relieve [~~the registered applicant~~] a hemp processor from [~~the applicant's~~] any duty to comply with all applicable building codes and regulations."

SECTION 3. Section 328G-2, Hawaii Revised Statutes, is amended as follows:

1. By amending subsections (b) and (c) to read:

"(b) No person shall process hemp without being registered by the department as a hemp processor pursuant to this part and any rules adopted pursuant [[]to[]] this chapter[.]; provided that a person that:

(1) Produces hemp as authorized by part III of chapter 141;

(2) Does not produce more than five thousand pounds of hemp, on a dry weight basis, per year; and

(3) Processes only hemp produced by the person,

shall be exempt from the registration requirement established in this part.

(c) A person who intends to process hemp shall apply to the department for registration on an application form created by the department[.], unless the person is exempt from registration pursuant to subsection (b)."

2. By amending subsection (j) to read:

"(j) The department may remove any person from the registry for failure to comply with any law or regulation under this chapter. It is the responsibility of the hemp processor to make sure it is registered [~~and~~] by the department, unless exempt pursuant to subsection (b), legally allowed to process hemp, and in compliance with any and all laws and regulations. The removal of a hemp processor from the registry shall be in accordance with the procedures set forth in section 328G-6."

SECTION 4. Section 328G-3, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) [~~Hemp~~] A hemp processor may process hemp and hemp products [~~shall be processed~~] only in the following manner:

(1) If the hemp processor is a person required to be registered pursuant to section 328G-2(b):

(A) Processing shall occur within an enclosed indoor facility secured to prevent unauthorized entry[.]; and

(B) Hemp, hemp products, and any toxic or otherwise hazardous by-products of hemp processing, or by‑products, including [~~but not limited to~~] delta-9 tetrahydrocannabinol, shall be stored within an enclosed indoor facility, secured to prevent unauthorized entry in a manner that prevents cross-contamination and unintended exposures[.]; or

(2) If the hemp processor is a person exempt from registration pursuant to section 328G-2(b), processing shall occur in any:

(A) Enclosed facility described in paragraph (1)(A); or

(B) Certified kitchen, food hub, or agricultural park; provided that the hemp processor shall comply with building codes and regulations, if applicable.

(c) Hemp shall not be processed within [~~500~~] one hundred feet of a pre-existing playground, school, state park, state recreation area, residential neighborhood, hospital, or daycare facility."

SECTION 5. Act 14, Session Laws of Hawaii 2020, is amended by amending section 9 to read as follows:

"SECTION 9. This Act shall take effect upon its approval, and shall be repealed on June 30, [~~2022;~~] ; provided that the definition of "marijuana" in section 329-1, Hawaii Revised Statutes, and the definitions of "marijuana" and "marijuana Concentrate" in section 712-1240, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act."

SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2022; provided that section 5 shall take effect on June 29, 2022.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1873
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII