Bill Text: HI SB1372 | 2022 | Regular Session | Amended
Bill Title: Relating To Medical Cannabis.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced - Dead) 2021-12-10 - Carried over to 2022 Regular Session. [SB1372 Detail]
Download: Hawaii-2022-SB1372-Amended.html
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THE SENATE |
S.B. NO. |
1372 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO MEDICAL CANNABIS.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Chapter 329D, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§392D- Cultivation
facility; authorized; licensure. (a) No
person shall operate a cultivation facility unless the person has a license
issued by the department pursuant to this chapter.
(b)
The director of health shall grant cultivation licenses to allow facilities
to plant, cultivate, grow, and harvest cannabis pursuant to this chapter.
(c)
Each cultivation license shall allow planting, cultivating, growing, and
harvesting of cannabis only in the county for which the license is granted.
(d) The
department shall determine whether, based on the qualifying patient need, cultivation
licenses shall be offered to qualified applicants in the State after December 31,
2023; provided that the department shall make available not more than one
license per five hundred qualifying patients residing in any single county; provided
further that in considering whether to award a new license, the department
shall consider an applicant's capability to serve and supply medical cannabis
to qualified patients in a rural or underserved geographical area of a county;
provided further that a "rural or underserved geographical area" shall
be determined by considering the number of registered medical cannabis patients
that reside within a certain zip code compared to the quantity of medical
cannabis that the closest production center and retail dispensing location have
the capability to provide.
(e) No
person may be granted a cultivation license in more than one county.
(f) Each
cultivation facility shall be limited to no more than one thousand cannabis
plants. For purposes of this subsection,
"plant" means a cannabis plant that is greater than twelve vertical
inches in height from where the base of the stalk emerges from the growth
medium to the tallest point of the plant, or greater than twelve horizontal
inches in width from the end of one branch to the end of another branch;
provided that multiple stalks emanating from the same root ball or root system
shall be considered part of the same single plant. Each cultivation facility shall track the
cannabis it cultivates from seed or immature plant to wholesale purchase.
(g) No
more than one cultivation license may be issued for each tax map key.
(h)
Notwithstanding subsection (f) to the contrary, the department may
determine whether cultivation licensees shall be allowed an additional one
thousand cannabis plants. In no case
shall a licensee be allowed more than two thousand plants at a single
production center.
(i)
Notwithstanding any other law to the contrary, a cultivation facility
shall not be subject to any of the regulatory requirements under chapter 141.
§329D- Cultivation facilities;
license application procedure and verification; fees. (a)
The department shall make a cultivation facility license application
form available to the public on December 30, 2023, commencing at 8:00 a.m.,
Hawaii-Aleutian Standard Time.
(b) The department shall establish an open
application period for each available license, the first of which shall be no
later than 8:00 a.m., Hawaii-Aleutian Standard Time, on December 31, 2023,
during which an application may be submitted.
This submittal period shall be closed on January 15, 2024, at 4:30
p.m. The department shall publish notice
of the open application period no less than thirty days prior to the start of
the open application period.
(c) A nonrefundable application fee of $1,000
for each license
application shall be submitted to the department by certified or cashier's
check. Within seven days of approval, a cultivation
license fee of $10,000 for each license approved shall be submitted to the
department by certified or cashier's check or the department shall issue a license
to the next qualified applicant.
(d) All fees collected pursuant to this section
shall be deposited in the medical cannabis registry and regulation special fund
pursuant to section 321-30.1.
(e) Immediately upon receipt of each completed
application form, the department shall issue a receipt to each applicant that includes
the date and time of receipt.
(f) If an applicant submits an application form
in which all required information is not complete and valid, the application shall
not be accepted by the department and the nonrefundable application fee shall
be deposited in the medical cannabis registry and regulation special fund
established pursuant to section 321-30.1.
(g) The cultivation facility application form shall
request information necessary to verify that applicants meet the required
qualifications for a cultivation license pursuant to section 329D-3. Applicants shall provide a minimum of the
following information:
(1) Legal name and date of birth of individual applicant;
(2) Last four
digits of individual applicant's social security number;
(3) Validation code
from an eCrim report for the individual applicant generated by the Hawaii
criminal justice data center no earlier than December 1, 2023, at 8:00 a.m., Hawaii-Aleutian Standard Time;
(4) Street address,
telephone number, fax number, and e‑mail address of the individual
applicant;
(5) A tax clearance certificate issued
by the department of taxation dated not more than thirty days prior to the date
of the application;
(6) Name of the applying entity and any other name
under which the applying entity does business, if applicable;
(7) Street address,
telephone number, fax number, and e‑mail address of the applying entity;
(8) Date the applying entity was organized
under the laws of Hawaii;
(9) A certified copy of the organizing documents of the
applying entity;
(10) A copy of the applying entity's bylaws;
(11) Federal employer identification number of the applying
entity;
(12) Hawaii tax identification
number of applying entity;
(13) Department of commerce and
consumer affairs business registration number and suffix of the applying
entity;
(14) Name(s) of all
owners of the applying entity, in whole or in part, and their percentage of
ownership;
(15) Date when
continuous legal residence in Hawaii began for each Hawaii legal resident that
owns a percentage of the applying entity;
(16) Total percentage of the applying
entity that is owned by Hawaii legal residents;
(17) Designation of the county for which the cultivation license applied for and proof that the
required minimum financial resources of $250,000 are met;
(18) Total dollar
amount of financial resources under control of the applying entity in the form
of bank statements or escrow accounts;
(19) Date from when financial resources have been
continuously controlled by the applying entity;
(20) Copies of the entity's bank statements for the twelve
months prior to the date of the application; and
(21) A copy of the agreement in place with an existing dispensary
licensed by the State for the sale of the applying entity's product.
(h) The department shall maintain a record of the
time and date that all completed application forms were submitted.
(i) The department shall process and deposit the
application fee within four business days of receipt of the completed
application form.
(j) If, for any reason, the application fee is not
available for deposit, the application shall be deemed void and the department
shall inform the applicant in writing that its application has been rejected.
(k) The department shall review and verify the
information and documentation materials only of applicants whose nonrefundable
application fee has been processed and deposited.
(l) The department shall verify that the
information submitted in the application is true and valid and meets the
requirements established in section 329D-3(b).
(m) Upon verification of the minimum requirements,
the department shall place the verified application into the pool of applicants
for further review and selection based on merit by the department.
(n) A cultivation license may be renewed annually by payment of an annual renewal fee of $10,000 and subject to verification by the department through an unannounced inspection that the individual licensee and entity licensee continue to meet all licensing requirements from the date the initial licenses were issued."
SECTION 2. Section 329D-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Cultivation facility" means an establishment that is not owned, operated, or subcontracted by a medical cannabis dispensary and that is licensed by the State pursuant to this chapter to plant, cultivate, grow, or harvest cannabis and that sells its product only to dispensaries licensed under this chapter."
PART II
SECTION 3. Section 46-4, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:
"(f) Neither this section nor any other law, county ordinance, or rule shall prohibit the use of land for medical cannabis production centers, medical cannabis cultivation facilities, or medical cannabis dispensaries established and licensed pursuant to chapter 329D; provided that the land is otherwise zoned for agriculture, manufacturing, or retail purposes."
SECTION 4. Section 329D-2.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§329D-2.5[]]
Office of medical cannabis control and regulation; established; duties. (a)
There is established within the department the office of medical
cannabis control and regulation, which shall report to the deputy director of
health resources administration.
(b)
The office of medical cannabis control and regulation shall administer the
licensure and regulation of medical cannabis [dispensary licensure and regulation,]
dispensaries and cultivation facilities, pursuant to this chapter, and
the registration of qualifying patients and primary caregivers, pursuant to
part IX of chapter 329."
SECTION 5. Section 329D-3, Hawaii Revised Statutes, is amended to read as follows:
"[[]§329D-3[]] Qualifications for
licensure. (a)
Each application for a dispensary license or a cultivation facility license
shall include both an individual applicant and an applying entity.
(b) The application shall be submitted to the
department and shall include supporting documentation to establish the
following:
(1) That the individual applicant:
(A) Has been a legal resident of the State for not less than five
years preceding the date of application;
(B) Is not less than twenty-one years of age; and
(C) Has had no felony convictions;
(2) That the applying entity:
(A) Has been organized under the laws of the State;
(B) Has a Hawaii tax identification number;
(C) Has a department of commerce and consumer affairs business
registration division number and suffix;
(D) Has a federal employer identification number;
(E) Is not less than fifty-one per cent held by Hawaii legal
residents or entities wholly controlled by Hawaii legal residents who have been
Hawaii legal residents for not less than five years immediately preceding the
date the application was submitted;
(F) [Has] If applying for a dispensary license,
has financial
resources under its control of not less than $1,000,000 for each license
applied for, plus not less than $100,000 for each retail dispensing location
allowed under the license applied for,
in the form of bank statements or escrow accounts, and that the
financial resources have been under the control of the applying entity for not
less than ninety days immediately preceding the date the application was
submitted; [and]
(G) If
applying for a cultivation license, has financial resources under
its control of not less than $250,000 for each license applied for, in the form of bank statements or escrow accounts,
and that the financial resources have been under the control of the applying
entity for not less than ninety days immediately preceding the date the
application was submitted;
(H) If
applying for a cultivation license, has an agreement with an existing dispensary,
licensed by the State, to which sales of the cultivator's cannabis will be made
and such agreement can be amended annually; and
[(G)] (I)
Is composed of principals or members,
each of whom has no felony convictions.
(c) A dispensary license or cultivation license shall not be sold or otherwise transferred from one person to another person."
SECTION 6. Section 329D-6, Hawaii Revised Statutes, is amended to read as follows:
"§329D-6 Dispensary and cultivation facility
operations. (a) No person shall operate a dispensary[,]
or cultivation facility, nor engage in the production, manufacture, or
sale of cannabis or manufactured cannabis products, unless the person has
obtained a license from the department pursuant to this chapter.
(b) No dispensary or cultivation licensee,
its officers, employees, or agents shall provide written certification for the
use of medical cannabis or manufactured cannabis products for any person.
(c) No person under the age of twenty-one shall
be employed by a dispensary or cultivation licensee.
(d) Notwithstanding any other law to the
contrary, including but not limited to sections 378-2 and 378-2.5, dispensaries[:]
and cultivation facilities:
(1) Shall deny employment to any
individual who has been:
(A) Convicted of murder in any degree;
(B) Convicted of a class A or class B felony; or
(C) Convicted of a class C felony involving trafficking, distributing, or promoting a schedule I or II controlled substance other than cannabis within the last ten years; and
(2) May deny employment to any individual who has been convicted of a class C felony involving:
(A) Fraud, deceit, misrepresentation, embezzlement, or theft; or
(B) Endangering the welfare of a minor.
Employment under this chapter shall be exempt from section 378‑2(a)(1),
as it relates to arrest and court record discrimination, and section 378-2.5.
(e) Retail dispensing locations shall not be open for retail sales before 8:00 a.m. or after 8:00 p.m., Hawaii-Aleutian Standard Time, Monday through Sunday.
(f) All dispensary facilities, including but not
limited to production centers and retail dispensing locations, shall be
enclosed indoor facilities and shall maintain twenty-four hour security
measures, including but not limited to an alarm system, video monitoring and
recording on the premises, and exterior lighting. A cultivation or dispensary licensee
who intends to utilize, as a production center, an enclosed indoor facility
that includes a roof that is partially or completely transparent or
translucent, as provided under section 329D-1, shall notify the department of
that intention prior to altering or constructing the facility. Production centers shall remain locked at all
times. Retail dispensing locations shall
remain locked at all times, other than business hours as authorized by
subsection (e), and shall only be opened for authorized persons.
(g) In all dispensary facilities, only the licensee, if an individual, registered employees of the dispensary licensee, registered employees of a subcontracted production center or retail dispensing location, employees of a certified laboratory for testing purposes, state employees authorized by the director of health, and law enforcement and other government officials acting in their official capacity shall be permitted to touch or handle any cannabis or manufactured cannabis products, except that a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient may receive manufactured cannabis products at a retail dispensing location following completion of a sale.
(h) A dispensary or cultivation facility
shall provide the department with the address, tax map key number, and a copy
of the premises lease, if applicable, of the proposed location of a production
center or cultivation facility allowed under a license for a county not
later than thirty days prior to any medical cannabis or manufactured cannabis
products being produced or manufactured at that production center[.] or
cultivation facility.
(i) A dispensary shall provide the department
with the address, tax map key number, and a copy of the premises lease, if applicable,
of the proposed location of each retail dispensing location allowed under a
license not less than sixty days prior to opening for business.
(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[.] and cultivation facilities.
(1) The computer
software tracking system shall collect data relating to:
(A) The total amount of cannabis in possession of all dispensaries and cultivation facilities 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;
(C) The amount of waste produced by each plant at harvest; and
(D) The transport of
cannabis and manufactured cannabis products between production centers or cultivation
facilities and retail dispensing locations, 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) 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.
(k) A dispensary or cultivation facility licensed
pursuant to this chapter shall purchase, operate, and maintain a computer
software tracking system that shall:
(1) Interface with the department's computer software tracking system established pursuant to subsection (j);
(2) Allow each licensed cultivation facility or dispensary's production center to submit to the department in real time, by automatic identification and data capture, all cannabis, cannabis plants, and manufactured cannabis product inventory in possession of that cultivation facility or dispensary from either seed or immature plant state, including all plants that are derived from cuttings or cloning, until the cannabis or manufactured cannabis product is sold or destroyed pursuant to section 329D-7;
(3) Allow the licensed dispensary's retail dispensing location to
submit to the department in real time for the total amount of cannabis and manufactured
cannabis product purchased by a qualifying patient, primary caregiver,
qualifying out-of-state patient, and caregiver of a qualifying out-of-state
patient from the dispensary's retail dispensing locations in the State in any
fifteen day period; provided that the software tracking system shall impose an
automatic stopper in real time, which cannot be overridden, on any further
purchases of cannabis or manufactured cannabis products, if the maximum
allowable amount of cannabis has already been purchased for the applicable
fifteen day period; provided further that additional purchases shall not be
permitted until the next applicable period; [and]
(4) Allow the cultivation facility to submit to the
department in real time for the total amount of cannabis purchased by a licensed
dispensary; and
[(4)] (5) Allow the licensed dispensary or cultivation
facility to submit all data required by this subsection to the department
and permit the department to access the data if the department's computer software
tracking system is not functioning properly and sales are made pursuant to the
alternate tracking system under subsection (j).
(l) No free samples of cannabis or manufactured cannabis
products shall be provided at any time, and no consumption of cannabis or
manufactured cannabis products shall be permitted on any dispensary or cultivation
facility premises.
(m) A
dispensary or cultivation facility shall not transport cannabis or manufactured cannabis
products to another county or another island; provided that this subsection
shall not apply to the transportation of cannabis or any manufactured cannabis
product solely for the purposes of laboratory testing pursuant to section
329D-8, and subject to subsection (j); provided further that a dispensary shall
only transport samples of cannabis and manufactured cannabis products for
laboratory testing for purposes of this subsection in an amount and manner
prescribed by the department, in rules adopted pursuant to this chapter, and
with the understanding that state law and its protections do not apply outside
of the jurisdictional limits of the State.
(n) A dispensary or cultivation facility shall be prohibited from
off-premises delivery of cannabis or manufactured cannabis products to a
qualifying patient, primary caregiver, qualifying out-of-state patient, or
caregiver of a qualifying out-of-state patient.
(o) A dispensary or cultivation facility
shall not:
(1) Display cannabis or manufactured cannabis products in windows
or in public view; or
(2) Post any signage other than a single sign no greater than one
thousand six hundred square inches bearing only the business or trade name in
text without any pictures or illustrations; provided that if any applicable law
or ordinance restricting outdoor signage is more restrictive, that law or
ordinance shall govern.
(p) No cannabis or manufactured cannabis products
shall be transported to, from, or within any federal fort or arsenal, national
park or forest, any other federal enclave, or any other property possessed or
occupied by the federal government.
(q) A cultivation facility or dispensary licensed pursuant to this chapter shall be prohibited from providing written certification pursuant to section 329-122 for the use of medical cannabis for any person."
SECTION 7. Section 329D-7, Hawaii Revised Statutes, is amended to read as follows:
"§329D-7 Medical cannabis dispensary, production center, and cultivation facility rules. The department shall establish standards with respect to:
(1) The number of medical cannabis dispensaries that shall be
permitted to operate in the State;
(2) A fee structure for the submission of applications and
renewals of licenses to dispensaries[;] and cultivation facilities;
provided that the department shall consider the market conditions in each
county in determining the license renewal fee amounts;
(3) Criteria and procedures for the consideration and selection,
based on merit, of applications for licensure of dispensaries[;] and
cultivation facilities; provided that the criteria shall include but not be
limited to an applicant's:
(A) Ability to operate a business;
(B) Financial
stability and access to financial resources; provided that applicants for medical
cannabis dispensary licenses shall provide documentation that demonstrates
control of not less than $1,000,000 in the form of escrow accounts, letters of
credit, surety bonds, bank statements, lines of credit or the equivalent to
begin operating the dispensary; provided further that applicants for cultivation
facility licenses shall provide documentation that demonstrates control of not
less than $250,000 in the form of escrow accounts, letters of credit, surety
bonds, bank statements, lines of credit or the equivalent to begin operating
the cultivation facility;
(C) Ability to comply with the security requirements developed pursuant to paragraph (6);
(D) Capacity to meet the needs of qualifying patients and qualifying out-of-state patients;
(E) Ability to comply with criminal background check requirements developed pursuant to paragraph (8); and
(F) Ability to comply with inventory controls developed pursuant to paragraph (13);
(4) Specific requirements regarding annual audits and reports
required from each production center [and], dispensary, and cultivation
facility licensed pursuant to this chapter;
(5) Procedures for announced and unannounced inspections by the
department or its agents of production centers [and], dispensaries,
and cultivation facilities licensed pursuant to this chapter; provided
that inspections for license renewals shall be unannounced;
(6) Security requirements for the operation of production centers
[and], retail dispensing locations[;], and cultivation facilities;
provided that, at a minimum, the following shall be required:
(A) For production
centers[:] and cultivation facilities:
(i) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;
(ii) Fencing that surrounds the premises and that is sufficient to reasonably deter intruders and prevent anyone outside the premises from viewing any cannabis in any form;
(iii) An alarm system; and
(iv) Other reasonable security measures to deter or prevent intruders, as deemed necessary by the department;
(B) For retail dispensing locations:
(i) Presentation of a valid government-issued photo identification and a valid identification as issued by the department pursuant to section 329-123 by a qualifying patient or caregiver, or section 329-123.5 by a qualifying out-of-state patient or caregiver of a qualifying out-of-state patient, upon entering the premises;
(ii) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;
(iii) An alarm system;
(iv) Exterior lighting; and
(v) Other reasonable security measures as deemed necessary by the department;
(7) Security
requirements for the transportation of cannabis and manufactured cannabis
products between production centers [and], retail dispensing locations,
and cultivation facilities and between a production center, retail dispensing
location, cultivation facility, qualifying patient, primary caregiver,
qualifying out-of-state patient, or caregiver of a qualifying out-of-state
patient and a certified laboratory, pursuant to section 329‑122(f);
(8) Standards and criminal background checks to ensure the reputable and responsible character and fitness of all license applicants, licensees, employees, subcontractors and their employees, and prospective employees of medical cannabis dispensaries to operate a dispensary; provided that the standards, at a minimum, shall exclude from licensure or employment any person convicted of any felony;
(9) The training and
certification of operators and employees of production centers [and],
dispensaries[;], and cultivation facilities;
(10) The types of manufactured cannabis products that dispensaries shall be authorized to manufacture and sell pursuant to sections 329D-9 and 329D-10;
(11) Laboratory standards related to testing cannabis and manufactured cannabis products for content, contamination, and consistency;
(12) The quantities of cannabis and manufactured cannabis products that a dispensary may sell or provide to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient; provided that no dispensary shall sell or provide to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient any combination of cannabis and manufactured products that:
(A) During a period of fifteen consecutive days, exceeds the equivalent of four ounces of cannabis; or
(B) During a period of thirty consecutive days, exceeds the equivalent of eight ounces of cannabis;
(13) Dispensary [and],
production center, and cultivation facility inventory controls to
prevent the unauthorized diversion of cannabis or manufactured cannabis
products or the distribution of cannabis or manufactured cannabis products to a
qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver
of a qualifying out-of-state patient in quantities that exceed limits
established by this chapter; provided that the controls, at a minimum, shall
include:
(A) A computer software tracking system as specified in section 329D-6(j) and (k); and
(B) Product packaging standards sufficient to allow law enforcement personnel to reasonably determine the contents of an unopened package;
(14) Limitation to the
size or format of signs placed outside a retail dispensing location [or], production
center[;], or cultivation facility; provided that the signage limitations,
at a minimum, shall comply with section 329D-6(o)(2) and shall not include the
image of a cartoon character or other design intended to appeal to children;
(15) The disposal or destruction of unwanted or unused cannabis and manufactured cannabis products;
(16) The enforcement of the following prohibitions against:
(A) The sale or provision of cannabis or manufactured cannabis products to unauthorized persons;
(B) The sale or provision of cannabis or manufactured cannabis products to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient in quantities that exceed limits established by this chapter;
(C) Any use or consumption
of cannabis or manufactured cannabis products on the premises of a retail
dispensing location [or], production center[;], or cultivation
facility; and
(D) The distribution
of cannabis or manufactured cannabis products, for free, on the premises of a retail
dispensing location [or], production center[;], or cultivation
facility;
(17) The establishment of a range of penalties for violations of this chapter or rule adopted thereto; and
(18) A process to recognize and register patients who are authorized to purchase, possess, and use medical cannabis in another state, a United States territory, or the District of Columbia as qualifying out-of-state patients; provided that this registration process may commence no sooner than January 1, 2018."
SECTION 8. Section 329D-8, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) If a dispensary or cultivation licensee obtains a laboratory result indicating that a sample of a batch of its cannabis or manufactured cannabis products does not meet the department's standards for patient safety, the dispensary or cultivation licensee, at its own expense, may have the same sample or a different sample from the same batch retested by the same laboratory or a different laboratory. If a retest at a different laboratory yields a different result, the department shall determine which result controls whether the batch may be approved for sale or whether further testing shall be required."
SECTION 9. Section 329D-11, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The department shall establish standards regarding the advertising and packaging of cannabis and manufactured cannabis products; provided that the standards, at a minimum, shall require the use of packaging that:
(1) Is child-resistant and opaque so that the product cannot be seen from outside the packaging;
(2) Uses only black lettering on a white background with no pictures or graphics;
(3) Is clearly labeled with the phrase "For medical use only";
(4) Is clearly labeled with the phrase "Not for resale or transfer to another person";
(5) Includes instructions for use and "use by date";
(6) Contains information about the contents and potency of the product;
(7) Includes the name of the production center or cultivation facility where cannabis in the product was produced, including the batch number and date of packaging;
(8) Includes a barcode generated by tracking software; and
(9) In the case of a manufactured cannabis product, includes a:
(A) Listing of the equivalent physical weight of the cannabis used to manufacture the amount of the product that is within the packaging, pursuant to section 329D-9(c);
(B) Clearly labeled warning stating that the product:
(i) Is a medication that contains cannabis, and is not a food; and
(ii) Should be kept away from children; and
(C) Date of manufacture."
SECTION 10. Section 329D-12, Hawaii Revised Statutes, is amended to read as follows:
"§329D-12 Background checks. (a) The following shall be subject to background checks conducted by the department or its designee, including but not limited to criminal history record checks in accordance with section 846‑2.7:
(1) Each applicant and licensee for a medical cannabis dispensary or cultivation facility license, including the individual applicant and all officers, directors, members of a limited liability corporation; shareholders with at least twenty-five per cent or more ownership interest in a corporation; and managers of an entity applicant;
(2) Each employee of a medical cannabis dispensary;
(3) Each employee of a
subcontracted production center [or], retail dispensing location[;],
or cultivation facility;
(4) All officers, directors,
members of a limited liability corporation; and shareholders with at least
twenty-five per cent or more ownership interest in a corporate owner of a subcontracted
production center [or], retail dispensing location[;], or
cultivation facility; and
(5) Any person permitted to enter and remain in a dispensary facility pursuant to section 329D‑15(a)(4) or 329D‑16(a)(3).
The person undergoing the background check shall provide written consent and all applicable processing fees to the department or its designee to conduct the background checks.
(b) This section shall not apply to:
(1) A qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient who enters or remains on the premises of a retail dispensing location for the purpose of a transaction conducted pursuant to sections 329D-6 and 329D-13; or
(2) Government
officials and employees acting in an official capacity and employees of a
certified laboratory who enter or remain on the premises of a retail dispensing
location [or], production center, or cultivation facility for
any purpose authorized by this chapter."
SECTION 11. Section 329D-16, Hawaii Revised Statutes, is amended to read as follows:
"[[]§329D-16[]] Criminal
offense; unauthorized access to production centers[.] and cultivation
facilities. (a) No person shall intentionally or knowingly
enter or remain upon the premises of a medical cannabis production center or
cultivation facility unless the person is:
(1) An individual licensee
or registered employee of the production center[;] or cultivation facility;
(2) A government employee or official acting in the person's official capacity; or
(3) Previously
included on a current department-approved list provided to the department by the
licensee of those persons who are allowed into that [dispensary's facilities]
dispensary or facilities' premises for a specific purpose for that
dispensary, including but not limited to construction, maintenance, repairs,
legal counsel, or investors; provided that:
(A) The person has been individually approved by the department to be included on the list;
(B) The person is at least twenty-one years of age, as verified by a valid government issued identification card;
(C) The department has confirmed that the person has no felony convictions;
(D) The person is
escorted by an individual licensee or registered employee of the dispensary or
facility at all times while [in the dispensary facility;] on the premises;
(E) The person is only permitted within those portions of the dispensary or cultivation facility as necessary to fulfill the person's purpose for entering;
(F) The person is only permitted within the dispensary or cultivation facility during the times and for the duration necessary to fulfill the person's purpose for entering;
(G) The dispensary or cultivation facility shall keep an accurate record of each person's identity, date and times upon entering and exiting the dispensary or cultivation facility, purpose for entering, and the identity of the escort; and
(H) The approved list shall be effective for one year from the date of department approval.
(b) No individual licensee or registered employee of a medical cannabis dispensary with control over or responsibility for a production center shall intentionally or knowingly allow another to enter or remain upon the premises of the production center, unless the other is permitted to enter and remain as specified in subsection (a).
(c) No individual licensee or registered employee
of a cultivation facility with control over or responsibility for the facility shall
intentionally or knowingly allow another to enter or remain upon the premises
of the facility, unless the other is permitted to enter and remain as specified
in subsection (a).
[(c)] (d) Unauthorized access to a production center or
cultivation facility is a class C felony."
SECTION 12. Section 329D-17, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) A person commits the offense of promoting
medical cannabis or medical cannabis products to a minor if the person
intentionally or knowingly distributes any amount of cannabis or manufactured
cannabis products that came from a dispensary [or], production
center, or cultivation facility to a minor who is not a registered
qualifying patient or a registered qualifying out-of-state patient under
eighteen years of age."
SECTION 13. Section 329D-18, Hawaii Revised Statutes, is amended to read as follows:
"[[]§329D-18[]] Diversion
from dispensary [or], production center[;], or cultivation
facility; penalties. (a) A person commits diversion from a dispensary [or], production
center, or cultivation facility if the person is a licensee,
operator, or employee of a dispensary [or],
production center, or cultivation facility and intentionally or
knowingly diverts to the person's own use or other unauthorized or illegal use,
or takes, makes away with, or secretes, with intent to divert to the person's
own use or other unauthorized or illegal use, any medical cannabis, manufactured
cannabis product, or cannabis concentrate under the person's possession, care,
or custody as a licensee, operator, or employee of a medical cannabis dispensary [or], production
center, or cultivation facility licensed by the department.
(b) Any person who violates this section shall be guilty of a class C felony."
SECTION 14. Section 329D-20, Hawaii Revised Statutes, is amended to read as follows:
"[[]§329D-20[]] Law
enforcement access to dispensary, [and] production center, and
cultivation facility records. Notwithstanding
any other law, the department shall disclose information, documents, and other
records regarding medical cannabis dispensaries [and], production
centers, and cultivation facilities, upon request, to any state,
federal, or county agency engaged in the criminal investigation or prosecution
of violations of applicable state, county, or federal laws or regulations
related to the operations or activities of a medical cannabis dispensary[.]
or cultivation facility."
SECTION 15. Section 329D-22, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Medical cannabis production centers [and],
dispensaries, and cultivation facilities shall comply with all county zoning
ordinances, rules, or regulations; provided that:
(1) A medical cannabis production center or cultivation facility shall be permitted in any area in which agricultural production is permitted except as provided within this chapter; and
(2) No medical cannabis
production center [and], dispensary, or cultivation facility
shall be permitted within seven hundred fifty feet of the real property
comprising a playground or school."
SECTION 16. Section 329D-23, Hawaii Revised Statutes, is amended to read as follows:
"§329D-23 Annual inspections,
audits, and reports. (a) Each medical cannabis production center [and],
dispensary, and cultivation facility licensed pursuant to this part
shall:
(1) Be subject to an
annual announced inspection and unlimited unannounced inspections of its
operations by the department; provided that inspections for license renewals
shall be unannounced;
(2) Submit reports on at least a quarterly basis, or as otherwise required, and in the format specified by the department; and
(3) Annually cause an
independent financial audit, at the [dispensary] licensee's own expense,
to be conducted of the cultivation facility, dispensary, its production
center, and retail dispensing
locations and shall submit the audit's findings to the department.
(b) The department shall report annually to the
governor and the legislature on the establishment and regulation of medical cannabis
production centers [and], dispensaries, and cultivation facilities,
including but not limited to the number and location of production centers and
dispensaries and cultivation facilities licensed, the total licensing
fees collected, the total amount of taxes collected from production centers [and],
dispensaries, and cultivation facilities and any licensing violations determined
by the department."
SECTION 17. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 18. This Act shall take effect on July 1, 2050.
Report Title:
Medical Cannabis; Cultivation; Cultivation Licenses
Description:
Creates a cultivation facility license, which allows cultivators to grow cannabis for sale to licensed dispensaries. Establishes requirements for license application and qualifications for license holders. Establishes requirements for cultivation facility operations, including plant tracking and testing. Clarifies that cultivation facilities may sell product only to licensed dispensaries. Authorizes the Department of Health to determine the number of cultivation licenses to be issued. Allows one cultivation license to be issued per tax map key number. Limits the number of cannabis plants grown at each cultivation facility to one thousand. Effective 7/1/2050. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
