Hawaii-2023-SB1244-Introduced

SECTION 1. Section 329D-6, Hawaii Revised Statutes, is amended by amending subsection (j) to read as follows:

"(j) The department shall establish, maintain, and control a computer software tracking system that shall have real time, twenty-four-hour access to the data of all dispensaries.

(1) The computer software tracking system shall collect data relating to:

(A) The total amount of cannabis in possession of all dispensaries from either seed or immature plant state, including all plants that are derived from cuttings or cloning, until the cannabis, cannabis plants, or manufactured cannabis product is sold or destroyed pursuant to section 329D-7;

(B) The total amount of manufactured cannabis product inventory, including the equivalent physical weight of cannabis that is used to manufacture manufactured cannabis products, purchased by a qualifying patient, primary caregiver, qualifying out-of-state patient, and caregiver of a qualifying out-of-state patient from all retail dispensing locations in the State in any fifteen-day period;

(D) The transport of cannabis and manufactured cannabis products between production centers and retail dispensing locations and as authorized by subsection (r), including tracking identification issued by the tracking system, the identity of the person transporting the cannabis or manufactured cannabis products, and the make, model, and license number of the vehicle being used for the transport;

(2) The procurement of the computer software tracking system established pursuant to this subsection shall be exempt from chapter 103D; provided that:

(A) The department shall publicly solicit at least three proposals for the computer software tracking system; and

(B) The selection of the computer software tracking system shall be approved by the director of the department and the chief information officer; [~~and~~]

(3) The computer software tracking system established pursuant to this subsection shall meet the following system access requirements:

(A) The department of taxation shall have ready access to the data collected by the computer software tracking system for the purpose of taxation and regulation of cannabis and manufactured cannabis products; and

(B) Banks and other financial institutions may be allowed access to specific limited information from the computer software tracking system; provided that the information that may be available to these institutions shall be limited to financial data of individuals and business entities that have a business relationship with the bank or financial institution; provided further that the information provided shall be limited to the information needed by banks or financial institutions to comply with applicable federal regulations and shall not include medical or personal information about registered qualifying patients or primary caregivers;

(4) The computer software tracking system shall allow for integration with other enterprise software systems; provided that the use of any third-party tracking system that integrates with the computer software tracking system established by this subsection shall not relieve a dispensary from complying with the mandated use of the computer software tracking system established by this subsection;

(5) Using data obtained from the computer software tracking system, the department shall submit a report to the legislature no later than twenty days prior to the convening of each regular session on the following information:

(A) A summary of dispensary supply chain activity, including annual statewide sales of cannabis and manufactured cannabis products;

(B) Total number of cultivated plants in the State;

(D) Total number of plants in a vegetative state in the State;

(E) Average price per gram for retail cannabis and manufactured cannabis products;

(F) Total number of plant or product recalls; and

(G) All other public safety concerns addressed during the previous reporting year; and

[~~(3)~~](6) Notwithstanding any other provision of this subsection to the contrary, once the department has authorized a licensed dispensary to commence sales of cannabis or manufactured cannabis products, if the department's computer software tracking system is inoperable or is not functioning properly, as an alternative to requiring dispensaries to temporarily cease operations, the department may implement an alternate tracking system that will enable a qualifying patient, primary caregiver, qualifying out-of-state patient, and caregiver of a qualifying out-of-state patient to purchase cannabis or manufactured cannabis products from a licensed dispensary on a temporary basis. The department shall seek input regarding the alternate tracking system from medical cannabis licensees. The alternate tracking system may operate as follows:

(A) The department may immediately notify all licensed dispensaries that the computer software tracking system is inoperable; and

(B) Once the computer software tracking system is operational and functioning to meet the requirements of this subsection, the department may notify all licensed dispensaries, and the alternate tracking system in this subsection shall be discontinued."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2023.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1244
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII