Bill Text: HI SB2307 | 2016 | Regular Session | Introduced

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Bill Title: Medical Marijuana Dispensary Program; Operations; Licensing

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2016-01-29 - Re-Referred to CPH/PSM, JDL/WAM. [SB2307 Detail]

Download: Hawaii-2016-SB2307-Introduced.html

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THE SENATE	S.B. NO.	2307
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to medical marijuana.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

PART I

     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

MEDICAL MARIJUANA DISPENSARY PROGRAM

     §   -1  Definitions.  As used in this chapter:

     "Cultivation" or "cultivate" means the planting, growing, or harvesting of marijuana.

     "Department" means the department of health.

     "Dispense" or "dispensing" means the act of a licensed retail dispensing location providing marijuana or manufactured marijuana products to a qualifying patient or a primary caregiver for a fee.

     "Manufacture" means the preparation, propagation, compounding, conversion, or processing of a substance containing marijuana or its principal psychoactive constituent tetrahydrocannabinol, either directly or indirectly, by a person other than a qualifying patient or primary caregiver for the qualifying patient's use, by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container.

     "Manufactured marijuana product" means any capsule, lozenge, oil or oil extract, tincture, ointment or skin lotion, or pill that has been manufactured using marijuana.

     "Marijuana" shall have the same meaning as in section 329-121.

     "Medical marijuana growing facility" or "growing facility" means an entity licensed under this chapter that grows or cultivates marijuana for distribution to licensed medical marijuana production centers and retail dispensing locations.

     "Medical marijuana production center" or "production center" means an entity licensed under this chapter who is authorized to purchase medical marijuana from a medical marijuana growing facility for the purpose of manufacturing the medical marijuana for distribution to a medical marijuana retail dispensing location pursuant to this chapter.

     "Person" means an individual, firm, corporation, partnership, association, or any form of business or legal entity.

     "Primary caregiver" shall have the same meaning as in section 329-121.

     "Qualifying patient" shall have the same meaning as in section 329-121.

     "Retail dispensing location" means an establishment owned, operated, or subcontracted where marijuana and manufactured marijuana are made available for retail sale to qualifying patients or primary caregivers.

     §   -2  Medical marijuana dispensary program; authorized; licensure.  (a)  No person shall operate a medical marijuana growing facility, production center, or retail dispensing location unless the person has a license issued by the department pursuant to this chapter.

     (b)  The director of health shall grant medical marijuana growing facility licenses, medical marijuana production center licenses, and medical marijuana retail dispensing licenses pursuant to this chapter; provided that each license shall grant the licensee to operate only in the county for which the license is granted.

     (c)  The department shall issue:

     (1)  For the city and county of Honolulu:

         (A)  At least       growing facility licenses;

         (B)  At least       production center licenses; and

         (C)  At least       retail dispensing licenses;

     (2)  For the county of Hawaii and the county of Maui:

         (A)  A total of at least       growing facility licenses;

         (B)  A total of at least       production center licenses; and

         (C)  A total of at least       retail dispensing licenses; and

     (3)  For the county of Kauai:

         (A)  At least       growing facility licenses;

         (B)  At least       production center licenses; and

         (C)  At least       retail dispensing licenses;

provided that no medical marijuana growing facility, production center, or retail dispensing license shall be issued for the county of Kalawao.

     (d)  A person may be granted and concurrently hold a medical marijuana growing facility license, medical marijuana production center license, and medical marijuana retail dispensing license within one county.  No person shall be granted or concurrently hold a growing facility license, production center license, or retail dispensing license, or any combination thereof, in more than one county.

     (e)  Each respective licensee may commence cultivating, manufacturing, or dispensing medical marijuana and manufactured marijuana products pursuant to this chapter no sooner than July 15, 2017, with approval by the department; provided that any licensee who received a medical marijuana license from the department of health to cultivate, manufacture, or dispense medical marijuana and manufactured marijuana products for any reason prior to December 31, 2016, may commence growing, producing, or dispensing medical marijuana and manufactured marijuana products to qualifying patients or primary caregivers no sooner than July 15, 2016, with approval by the department, in accordance with this chapter.

     (f)  Retail dispensing locations shall not be at the same location as growing facilities or production centers.

     (g)  Notwithstanding subsection (c), the department shall determine whether, based on the qualifying patient need, additional licenses shall be offered to qualified applicants in the State after October 1, 2018; provided that the department shall make available not more than one license per five hundred qualifying patients residing in any single county.

     (h)  No marijuana or manufactured marijuana 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.

     §   -3  Qualifications for licensure.  (a)  Each application for a growing facility license, production center license, or retail dispensing 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; and

     (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 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 forty-five days immediately preceding the date the application was submitted; and

         (G)  Is composed of principals or members, each of whom has no felony convictions.

     (c)  Any license issued pursuant to this chapter shall not be sold or otherwise transferred from one person to another person.

     (d)  Any applicant seeking to apply for more than one type of license within one county shall submit one application per license.

     §   -4  License application procedure and verification; fees.  (a)  The department shall make medical marijuana dispensary program license application forms for growing facility licenses, production center licenses, and retail dispensing licenses available to the public on January 11, 2017, commencing at 8:00 a.m., Hawaii-Aleutian Standard Time; provided that the department shall make a separate application form for each type of license.

     (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 January 12, 2017, during which an application may be submitted.  This submittal period shall be closed on January 29, 2017, 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 non-refundable application fee of $500 for each license application shall be submitted to the department by certified or cashier's check.

     (d)  All fees collected pursuant to this section shall be deposited in the medical marijuana 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 non-refundable application fee shall be deposited in the medical marijuana registry and regulation special fund established pursuant to section 321-30.1.

     (g)  The medical marijuana dispensary program license application forms shall request information necessary to verify that applicants meet the required qualifications pursuant to section    -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 12, 2016, at 8:00 a.m., Hawaii-Aleutian Standard Time;

     (4)  Street address, telephone number, fax number, and email 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 email 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 in which the license will be operative 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; and

    (20)  Copies of the entity's bank statements for the twelve months prior to the date of the application.

     (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 non-refundable 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    -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 a lottery system by the department.

     (n)  A growing facility license, production center license, or retail dispensing license may be renewed annually by payment of an annual renewal fee of $           and subject to verification by the department that the individual licensee and entity licensee continue to meet all licensing requirements from the date the initial licenses were issued.

     §   -5  Licenses; selection; issuance.  (a)  The department shall provide for a lottery selection process for verified applicants for medical marijuana growing facility licenses, production center licenses, and retail dispensing licenses; provided that any person who received a medical marijuana dispensary program license that allowed the person to cultivate, manufacture, and dispense medical marijuana prior to December 31, 2016, shall be awarded a growing facility license, production center license, and retail dispensing license, as applicable, and shall not count toward the limitation of licenses to be issued pursuant to section    -2(c); provided further that upon the issuance of these licenses, the person shall operate any growing facilities, production centers, and retail dispensing locations pursuant to this chapter.

     (b)  Licensees selected after January 1, 2017, will be announced by April 15, 2017.  A growing facility, production center, and retail dispensing location licensed pursuant to this chapter may begin dispensing no sooner than July 15, 2017, with the approval of the department.

     §   -6  Growing facility; operations.  (a)  No person shall operate a growing facility, nor engage in the cultivation, manufacture, or sale of marijuana or manufactured marijuana products, unless the person has obtained a license from the department pursuant to this chapter.

     (b)  No growing facility licensee, its officers, employees, or agents shall provide written certification for the use of medical marijuana or manufactured marijuana products for any person.

     (c)  No person under the age of twenty-one shall be employed by a growing facility licensee.

     (d)  Notwithstanding any other law to the contrary, including but not limited to sections 378-2 and 378-2.5, no growing facility shall employ a person convicted of a felony.  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)  All growing facilities 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.  Growing facilities shall remain locked at all times.

     (f)  In all medical marijuana growing facilities, only the licensee, if an individual, the registered employees of the licensee, and the registered employees of any subcontractors shall be permitted to touch or handle any marijuana.

     (g)  A growing 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 growing facility allowed under a license for a county no later than thirty days prior to any medical marijuana being grown or cultivated at that growing facility.

     (h)  No free samples of marijuana shall be provided at any time, and no consumption of marijuana shall be permitted on any growing facility premises.

     (i)  A growing facility shall not transport marijuana to another county or another island.

     (j)  A growing facility shall be prohibited from off-premises delivery of marijuana.

     (k)  A growing facility shall only sell, transport, or deliver medical marijuana to a production center, certified laboratory, or retail dispensing location.

     (l)  A growing 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 section    ‑9; and

     (2)  Allow each licensed growing facility to submit to the department in real time, by automatic identification and data capture, all marijuana and marijuana plants in possession of that growing facility from either seed or immature plant state, including all plants that are derived from cuttings or cloning, until the marijuana is sold or destroyed pursuant to section    -10.

     (m)  A growing facility shall provide a cultivation, inventory, and packaging plan and procedures for the oversight of the cultivation area, including a plant monitoring system, container tracking system, and staffing plan.

     (n)  Up to       growing facilities shall be allowed under each growing facility license; provided that each growing facility shall be limited to no more than one thousand five hundred marijuana plants.

     §   -7  Production center; operations.  (a)  No person shall operate a production center, nor engage in the manufacture or sale of marijuana or manufactured marijuana products, unless the person has obtained a license from the department pursuant to this chapter.

     (b)  No production center licensee, its officers, employees, or agents shall provide written certification for the use of medical marijuana or manufactured marijuana products for any person.

     (c)  No person under the age of twenty-one shall be employed by a production center licensee.

     (d)  Notwithstanding any other law to the contrary, including but not limited to sections 378-2 and 378-2.5, no production center shall employ a person convicted of a felony.  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)  All production centers 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.  Production centers shall remain locked at all times.

     (f)  In all production center facilities, only the licensee, if an individual, the registered employees of the production center licensee, and the registered employees of any subcontractors shall be permitted to touch or handle any marijuana or manufactured marijuana products.

     (g)  A production center 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 allowed under a license for a county no later than thirty days prior to any medical marijuana or manufactured marijuana products being produced or manufactured at that production center.

     (h)  A production center 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 section    -9; and

     (2)  Allow each licensed production center to submit to the department in real time, by automatic identification and data capture, all marijuana, marijuana plants, and manufactured marijuana product inventory in possession of that production center from either seed or immature plant state, including all plants that are derived from cuttings or cloning, until the marijuana or manufactured marijuana product is sold or destroyed pursuant to section    -10.

     (i)  No free samples of marijuana or manufactured marijuana products shall be provided at any time, and no consumption of marijuana or manufactured marijuana products shall be permitted on any production center premises.

     (j)  A production center shall not transport marijuana or manufactured marijuana products to another county or another island.

     (k)  A production center shall be prohibited from off-premises delivery of marijuana or manufactured marijuana products to a retail dispensing location.

     (l)  A production center shall not display marijuana or manufactured marijuana products in windows or in public view.

     (m)  Up to two production centers shall be allowed under each production center license; provided that each production center shall be limited to no more than one thousand five hundred marijuana plants.

     §   -8  Retail dispensing location; operations.  (a)  No person shall operate a retail dispensing location, nor engage in the retail sale of marijuana or manufactured marijuana products, unless the person has obtained a license from the department pursuant to this chapter.

     (b)  No retail dispensing licensee, its officers, employees, or agents shall provide written certification for the use of medical marijuana or manufactured marijuana products for any person.

     (c)  No person under the age of twenty-one shall be employed by a retail dispensing licensee.

     (d)  Notwithstanding any other law to the contrary, including but not limited to sections 378-2 and 378-2.5, no retail dispensing location shall employ a person convicted of a felony.  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 Saturday.  Retail dispensing locations shall be closed on Sundays and official state and federal holidays.

     (f)  All 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.  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 retail dispensing locations, only the licensee, if an individual, the registered employees of the retail dispensing licensee, and the registered employees of any subcontractors shall be permitted to touch or handle any marijuana or manufactured marijuana products, except that a qualifying patient or the primary caregiver of a qualifying patient may receive manufactured marijuana products at a retail dispensing location following completion of a sale.

     (h)  A retail dispensing location 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.

     (i)  A retail dispensing location 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 section    -9;

     (2)  Allow the licensed retail dispensing location to submit to the department in real time, by automatic identification and data capture, all marijuana, marijuana plants, and manufactured marijuana product inventory in possession of that retail dispensary location from either seed or immature plant state, including all plants that are derived from cuttings or cloning, until the marijuana or manufactured marijuana product is sold or destroyed pursuant to section    ‑10; and

     (3)  Allow the licensed retail dispensing location to submit to the department in real time the total amount of marijuana and manufactured marijuana product purchased by a qualifying patient or primary caregiver from the retail dispensing location 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 marijuana or manufactured marijuana products, if the maximum allowable amount of marijuana has already been purchased for the applicable fifteen day period; provided further that additional purchases shall not be permitted until the next applicable period.

     (j)  No free samples of marijuana or manufactured marijuana products shall be provided at any time, and no consumption of marijuana or manufactured marijuana products shall be permitted on any retail dispensing location premises.

     (k)  A retail dispensing location shall not transport marijuana or manufactured marijuana products to another county or another island.

     (l)  A retail dispensing location shall be prohibited from off-premises delivery of marijuana or manufactured marijuana products to qualifying patients or to primary caregivers of qualifying patients.

     (m)  A retail dispensing location shall not:

     (1)  Display marijuana or manufactured marijuana 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.

     (n)  A retail dispensing licensee may establish up to two retail dispensing locations under the licensee's retail dispensing license.

     (o)  Notwithstanding any other law to the contrary, a retail dispensing location shall not be subject to the prescription requirement of section 329-38 or to the board of pharmacy licensure or regulatory requirements under chapter 461.

     §   -9  Medical marijuana dispensary program facilities; computer software; tracking.  (a)  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 growing facilities, production centers, and retail dispensing locations relating to:

     (1)  The total amount of marijuana in possession of all licensees from either seed or immature plant state, including all plants that are derived from cuttings or cloning, until the marijuana, marijuana plants, or manufactured marijuana product is sold or destroyed pursuant to section    -10, if applicable;

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

     (3)  The amount of waste produced by each plant at harvest, if applicable; and

     (4)  The transport of marijuana and manufactured marijuana products between growing facilities, certified laboratories, production centers, and retail dispensing locations, including tracking identification issued by the tracking system, the identity of the person transporting the marijuana or manufactured marijuana products, and the make, model, and license number of the vehicle being used for the transport.

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

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

     (2)  The selection of the computer software tracking system shall be approved by the director of health and the chief information officer.

     §   -10  Medical marijuana dispensary program; standards.  The department shall establish standards with respect to:

     (1)  The number of medical marijuana growing facilities, production centers, and retail dispensing locations that shall be permitted to operate in the State;

     (2)  A fee structure for the submission of applications and renewals of licenses for growing facilities, production centers, and retail dispensing locations; provided that the department shall consider the market conditions in each county in determining the license renewal fee amounts;

     (3)  Procedures for the review and lottery selection of applicants for licensure;

     (4)  Specific requirements regarding annual audits and reports required from each growing facility, production center, and retail dispensing location licensed pursuant to this chapter;

     (5)  Procedures for announced and unannounced inspections by the department or its agents of growing facilities, production centers, and retail dispensing locations licensed pursuant to this chapter;

     (6)  Security requirements for the operation of growing facilities, production centers, and retail dispensing locations; provided that, at a minimum, the following shall be required:

         (A)  For growing facilities and production centers:

              (i)  Video monitoring and recording of the premises;

             (ii)  Fencing that surrounds the premises and that is sufficient to reasonably deter intruders and prevent anyone outside the premises from viewing any marijuana in any form;

            (iii)  An alarm system; and

             (iv)  Other reasonable security measures to deter or prevent intruders, as deemed necessary by the department; and

         (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, upon entering the premises;

             (ii)  Video monitoring and recording of the premises;

            (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 marijuana and manufactured marijuana products between growing facilities, certified laboratories, production centers, and retail dispensing locations;

     (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 marijuana growing facilities, production centers, and retail dispensing locations; 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 growing facilities, production centers, and retail dispensing locations;

    (10)  The types of manufactured marijuana products that production centers shall be authorized to manufacture and sell pursuant to sections    -12 and    -13;

    (11)  Laboratory standards related to testing marijuana and manufactured marijuana products for content, contamination, and consistency;

    (12)  The quantities of marijuana and manufactured marijuana products that a retail dispensing location may sell or provide to a qualifying patient or primary caregiver; provided that no retail dispensing location shall sell or provide to a qualifying patient or primary caregiver any combination of marijuana and manufactured products that:

         (A)  During a period of fifteen consecutive days, exceeds the equivalent of four ounces of marijuana; or

         (B)  During a period of thirty consecutive days, exceeds the equivalent of eight ounces of marijuana;

    (13)  Growing facility, production center, and retail dispensing location inventory controls to prevent the unauthorized diversion of marijuana or manufactured marijuana products or the distribution of marijuana or manufactured marijuana products to qualifying patients or primary caregivers 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    -9; 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; provided that the signage limitations, at a minimum, shall comply with section    -8(m)(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 marijuana and manufactured marijuana products;

    (16)  The enforcement of the following prohibitions against:

         (A)  The sale or provision of marijuana or manufactured marijuana products to unauthorized persons;

         (B)  The sale or provision of marijuana or manufactured marijuana products to qualifying patients or primary caregivers in quantities that exceed limits established by this chapter;

         (C)  Any use or consumption of marijuana or manufactured marijuana products on the premises of a growing facility, production center, or retail dispensing location; and

         (D)  The distribution of marijuana or manufactured marijuana products, for free, on the premises of a growing facility, production center, or retail dispensing location;

    (17)  The establishment of a range of penalties for violations of this chapter or rule adopted pursuant to this chapter; and

    (18)  A process to recognize and register patients who are authorized to purchase, possess, and use medical marijuana in another state, United States territory, or the District of Columbia as qualifying patients in this State; provided that this registration process may commence no sooner than January 1, 2018.

     §   -11  Laboratory standards and testing; laboratory certification.  (a)  The department shall establish and enforce standards for laboratory-based testing of marijuana and manufactured marijuana products for content, contamination, and consistency.

     (b)  The department may certify laboratories that can test marijuana and manufactured marijuana products prior to the sale of marijuana and manufactured marijuana products.

     §   -12  Manufacturing of medical marijuana products.  (a)  Any medical marijuana production center licensed by the department pursuant to this chapter shall be permitted to manufacture marijuana products; provided that the production center shall also obtain any other state or county permits or licenses that may be necessary for a particular manufacturing activity.

     (b)  The department shall establish health, safety, and sanitation standards regarding the production or manufacture of manufactured marijuana products.

     (c)  Any licensed medical marijuana production center that manufactures manufactured marijuana products shall calculate the equivalent physical weight of the marijuana that is used to manufacture the product and shall make the equivalency calculations available to the department and to a consumer of the manufactured marijuana product.

     §   -13  Types of manufactured marijuana products.  (a)  The types of medical marijuana products that may be manufactured and distributed pursuant to this chapter shall be limited to:

     (1)  Capsules;

     (2)  Lozenges;

     (3)  Pills;

     (4)  Oils and oil extracts;

     (5)  Tinctures;

     (6)  Ointments and skin lotions; and

     (7)  Other products as specified by the department.

     (b)  As used in this section, "lozenge" means a small tablet manufactured in a manner to allow for the dissolving of its medicinal or therapeutic component slowly in the mouth.

     §   -14  Advertising and packaging.  (a)  The department shall establish standards regarding the advertising and packaging of marijuana and manufactured marijuana 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 growing facility and production center where marijuana in the product or manufactured marijuana 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 marijuana product, a listing of the equivalent physical weight of the marijuana used to manufacture the amount of the product that is within the packaging, pursuant to section     -12(c).

     (b)  Any capsule, lozenge, or pill containing marijuana or its principal psychoactive constituent tetrahydrocannabinol shall be packaged so that one dose, serving, or single wrapped item contains no more than ten milligrams of tetrahydrocannabinol; provided that no manufactured marijuana product that is sold in a pack of multiple doses, servings, or single wrapped items, nor any containers of oils, shall contain more than a total of one hundred milligrams of tetrahydrocannabinol per pack or container.

     §   -15  Background checks.  Each applicant and licensee for a medical marijuana growing facility, production center, and retail dispensing license, including the individual applicant and all officers, directors, shareholders with at least twenty-five per cent ownership interest or more, members, and managers of an entity applicant; each employee of a medical marijuana growing facility, production center, and retail dispensing; each subcontractor of a growing facility, production center, and retail dispensing location; all officers, directors, shareholders with at least twenty-five per cent ownership interest or more in a subcontractor of a growing facility, production center, or retail dispensing location; and any person permitted to enter and remain in any facility pursuant to section    ‑18(a)(3),    -19(a)(3), or    -20(a)(4), 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.  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.

     §   -16  Qualifying patients and primary caregivers; dispensing limits; other states.  (a)  A qualifying patient or a primary caregiver on behalf of a qualifying patient shall be allowed to purchase no more than four ounces of marijuana within a consecutive period of fifteen days, or no more than eight ounces of marijuana within a consecutive period of thirty days.

     (b)  A qualifying patient or a primary caregiver on behalf of a qualifying patient may purchase marijuana from any retail dispensing location in the State, subject to the limits set forth in subsection (a).

     (c)  Beginning on January 1, 2018, this section shall apply to qualifying patients from other states, territories of the United States, or the District of Columbia; provided that the patient is verified as a patient in the patient's home state and registers with the department through a registration process established by the department.

     §   -17  Prohibited acts related to exceeding limits; fraud; penalties.  (a)  It shall be unlawful for any person to obtain or attempt to procure any medical marijuana or medical marijuana product by:

     (1)  Fraud, deceit, misrepresentation, embezzlement, or theft;

     (2)  The forgery or alteration of a medical marijuana permit;

     (3)  Furnishing fraudulent medical information or the concealment of a material fact;

     (4)  The use of a false name or patient identification number, or the giving of a false address; or

     (5)  The alteration of a state issued medical use of marijuana permit card.

     (b)  Any person who violates subsection (a) shall be guilty of a class C felony.

     §   -18  Criminal offense; unauthorized access to growing facilities.  (a)  No person shall intentionally or knowingly enter or remain upon the premises of a medical marijuana growing facility unless the person is:

     (1)  An individual licensee or registered employee of the growing 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 growing facility for a specific purpose for that growing facility, 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 growing facility at all times while in the growing facility;

         (E)  The person is only permitted within those portions of the growing facility as necessary to fulfill the person's purpose for entering;

         (F)  The person is only permitted within the growing facility during the times and for the duration necessary to fulfill the person's purpose for entering;

         (G)  The growing facility shall keep an accurate record of each person's identity, date and times upon entering and exiting the growing 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 marijuana growing facility with control over or responsibility for a growing facility shall intentionally or knowingly allow another to enter or remain upon the premises of the growing facility, unless the other is permitted to enter and remain as specified in subsection (a).

     (c)  Unauthorized access to a growing facility is a class C felony.

     §   -19  Criminal offense; unauthorized access to production centers.  (a)  No person shall intentionally or knowingly enter or remain upon the premises of a medical marijuana production center unless the person is:

     (1)  An individual licensee or registered employee of the production center;

     (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 production center's facilities for a specific purpose for that production center, 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 production center at all times while in the production center;

         (E)  The person is only permitted within those portions of the production center as necessary to fulfill the person's purpose for entering;

         (F)  The person is only permitted within the production center during the times and for the duration necessary to fulfill the person's purpose for entering;

         (G)  The production center shall keep an accurate record of each person's identity, date and times upon entering and exiting the production center, 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 marijuana production center 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)  Unauthorized access to a production center is a class C felony.

     §   -20  Criminal offense; unauthorized access to retail dispensing locations.  (a)  No person shall intentionally or knowingly enter or remain upon the premises of a medical marijuana retail dispensing location unless the individual is:

     (1)  An individual licensee or registered employee of the retail dispensing location;

     (2)  A qualifying patient or primary caregiver of a qualifying patient;

     (3)  A government employee or official acting in the person's official capacity; or

     (4)  Previously included on a current department-approved list provided to the department by the licensee of those persons who are allowed into that retail dispensing location's facilities for a specific purpose for that retail dispensing location, 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 retail dispensing location at all times while in the retail dispensing location;

         (E)  The person is only permitted within those portions of the retail dispensing location as necessary to fulfill the person's purpose for entering;

         (F)  The person is only permitted within the retail dispensing location during the times and for the duration necessary to fulfill the person's purpose for entering;

         (G)  The retail dispensing location shall keep an accurate record of each person's first and last name, date and times upon entering and exiting the retail dispensing location, purpose for entering, and the identity of the escort; and

         (H)  The approved list shall be effective for one year from the date of the department approval.

     (b)  No individual licensee or registered employee of a medical marijuana retail dispensing location with control over or responsibility for a retail dispensing location shall intentionally or knowingly allow another to enter or remain upon the premises of the retail dispensing location, unless the other is permitted to enter and remain as specified in subsection (a).

     (c)  Unauthorized access to a retail dispensing location is a class C felony.

     §   -21  Prohibition of distribution of medical marijuana and medical marijuana products to minors; penalties.  (a)  A person commits the offense of promoting medical marijuana or medical marijuana products to a minor if the person intentionally or knowingly distributes any amount of marijuana or manufactured marijuana products that came from a growing facility, production center, or retail dispensing location to a minor who is not a registered qualifying patient.

     (b)  Any person who violates this section shall be guilty of a class B felony.

     §   -22  Diversion from growing facility, production center, certified laboratory, or retail dispensing location; penalties.  (a)  A person commits diversion from a growing facility, production center, certified laboratory, or retail dispensing location if the person is a licensee, operator, or employee of a growing facility, production center, certified laboratory, or retail dispensing location 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 marijuana, manufactured marijuana product, or marijuana concentrate under the person's possession, care, or custody as a licensee, operator, or employee of a medical marijuana growing facility, production center, certified laboratory, or retail dispensing location licensed by the department.

     (b)  Any person who violates this section shall be guilty of a class C felony.

     §   -23  Criminal offense; alteration or falsification of medical marijuana records.  (a)  A person commits the offense of alteration or falsification of medical marijuana records if the person intentionally or knowingly:

     (1)  Makes or causes a false entry in medical marijuana records;

     (2)  Alters, erases, obliterates, deletes, removes, or destroys a true entry in medical marijuana records;

     (3)  Omits to make a true entry in medical marijuana records in violation of a duty that the person knows to be imposed upon the person by law or by the nature of the person's position; or

     (4)  Prevents the making of a true entry or causes the omission thereof in medical marijuana records.

     (b)  Alteration or falsification of medical marijuana records is a class C felony.

     (c)  For the purposes of this section:

     "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or other similar capabilities.

     "Information" includes data, text, images, sounds, codes, computer programs, software, or databases.

     "Medical marijuana records" means any inventory tracking records and other records maintained by a licensed medical marijuana growing facility, production center, certified laboratory, or retail dispensing location that are required by law to be created and retained or provided to the department.

     "Record" means information that is written or printed or that is stored in an electronic or other medium and is retrievable in a perceivable form.

     §   -24  Law enforcement access to growing facility, production center, certified laboratory, and retail dispensing location records.  Notwithstanding any other law, the department shall disclose information, documents, and other records regarding medical marijuana growing facilities, production centers, certified laboratories, and retail dispensing locations, 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 marijuana growing facility, production center, certified laboratory, or retail dispensing location.

     §   -25  Revocation and suspension of licenses.  (a)  In addition to any other actions authorized by law, the department may deny, revoke, or suspend any license applied for or issued by the department, in accordance with this chapter, and to fine or otherwise discipline a licensee for any cause authorized by law, including but not limited to the following:

     (1)  Procuring a license through fraud, misrepresentation, or deceit;

     (2)  Professional misconduct, gross carelessness, or manifest incapacity;

     (3)  Violation of any of the provisions of this chapter or the rules adopted pursuant to this chapter;

     (4)  False, fraudulent, or deceptive advertising;

     (5)  Any other conduct constituting fraudulent or dishonest dealings;

     (6)  Failure to comply with a department order; and

     (7)  Making a false statement on any document submitted or required to be filed by this chapter, including furnishing false or fraudulent material information in any application.

     (b)  Any person who violates any of the provisions of this chapter or the rules adopted pursuant to this chapter shall be fined not less than $100 nor more than $1,000 for each violation.

     (c)  If the department revokes or suspends a license under this section, the licensee shall not:

     (1)  Dispense, sell, transfer, or otherwise dispose of any marijuana or manufactured marijuana products owned by or in the possession of the licensee; or

     (2)  Cultivate marijuana or manufacture marijuana products.

Upon a revocation order becoming final, all marijuana and manufactured marijuana products may be forfeited to the State.

     (d)  All proceedings for denial, suspension, or revocation of a license or fining of a licensee on any ground specified in subsection (a) shall be conducted pursuant to chapter 91, including the right to judicial review.

     §   -26  Medical marijuana; facilities; zoning.  (a)  Medical marijuana growing facilities, production centers, certified laboratories, and retail dispensing locations shall comply with all county zoning ordinances, rules, or regulations; provided that:

     (1)  A medical marijuana growing facility and production center shall be permitted in any area in which agricultural production is permitted except as provided within this chapter; and

     (2)  No medical marijuana growing facility, production center, certified laboratory, or retail dispensing location shall be permitted within seven hundred fifty feet of the real property comprising a playground, public housing project or complex, or school.

     (b)  As used in this section:

     "Playground" means any public outdoor facility, including any parking lot appurtenant thereto, that is intended for recreation, with any portion thereof containing three or more separate apparatus intended for the recreation of children, including but not limited to sliding boards, swing sets, and teeterboards.

     "Public housing project or complex" means a housing project directly controlled, owned, developed, or managed by the Hawaii public housing authority pursuant to the federal or state low-rent public housing program.

     "School" means any public or private preschool, kindergarten, elementary, intermediate, middle, secondary, or high school.

     §   -27  Annual inspections, audits, and reports.  (a)  Each medical marijuana growing facility, production center, certified laboratory, and retail dispensing location licensed pursuant to this chapter shall:

     (1)  Be subject to an annual announced inspection and unlimited unannounced inspections of its operations by the department;

     (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 licensee's own expense, to be conducted of the growing facility, production center, or retail dispensing location 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 marijuana growing facilities, production centers, and retail dispensing locations including but not limited to the number and location of growing facilities, production centers, and retail dispensing locations licensed; the total licensing fees collected; the total amount of taxes collected from growing facilities, production centers, and retail dispensing locations; and any licensing violations determined by the department.

     §   -28  Cultivation of medical marijuana by qualifying patients and primary caregivers.  Nothing in this chapter shall be construed as prohibiting a qualifying patient or primary caregiver from cultivating or possessing an adequate supply of medical marijuana pursuant to part IX of chapter 329.

     §   -29  Coordination among state and federal agencies.  The department shall initiate ongoing dialogue among relevant state and federal agencies to identify processes and policies that ensure the privacy of qualifying patients and the compliance of qualifying patients, primary caregivers, and medical marijuana growing facilities, production centers, certified laboratories, and retail dispensing locations with state laws and regulations related to medical marijuana.

     §   -30  Public education.  (a)  The department shall conduct a continuing education and training program to explain and clarify the purposes and requirements of this chapter or to provide substance abuse prevention and education.  The program shall target community partner agencies, physicians and other health care providers, patients and caregivers, law enforcement agencies, law and policy makers, and the general public.

     (b)  The department shall employ at least one full-time staff member whose qualifications and duties include the provision of medical marijuana health education.

     §  -31  Administrative rules.  (a)  The department shall adopt rules pursuant to chapter 91 to effectuate the purposes of this chapter.

     (b)  No later than July 1, 2017, the department shall adopt interim rules, which shall be exempt from chapter 91 and chapter 201M, to effectuate the purposes of this chapter; provided that the interim rules shall remain in effect until January 1, 2020, or until rules are adopted pursuant to subsection (a), whichever occurs sooner."

PART II

     SECTION 2.  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 marijuana growing facilities, medical marijuana production centers, or medical marijuana [dispensaries] retail dispensing locations established and licensed pursuant to chapter [329D;]      ; provided that the land is otherwise zoned for agriculture, manufacturing, or retail purposes."

PART III

     SECTION 3.  Section 321-30.1, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  There is established within the state treasury the medical marijuana registry and regulation special fund.  The fund shall be expended at the discretion of the director of health:

     (1)  To establish and regulate a system of medical marijuana [dispensaries] growing facilities, production centers, and retail dispensing locations in the State;

     (2)  To offset the cost of the processing and issuance of patient registry identification certificates and primary caregiver registration certificates;

     (3)  To fund positions and operating costs authorized by the legislature;

     (4)  To establish and manage a secure and confidential database;

     (5)  To fund public education as required by section [329D‑26;]    -30;

     (6)  To fund substance abuse prevention and education programs; and

     (7)  For any other expenditure necessary, consistent with this chapter and chapter [329D,]      , to implement medical marijuana registry and regulation programs.

     (b)  The fund shall consist of all moneys derived from fees collected pursuant to subsection (c) and section [329D-4.]    ‑4.  There is established within the medical marijuana registry and regulation special fund:

     (1)  A medical marijuana registry program sub-account, into which shall be deposited all fees collected pursuant to subsection (c); and

     (2)  A medical marijuana dispensary program sub-account, into which shall be deposited all fees collected pursuant to section [329D-4.]    -4."

PART IV

     SECTION 4.  Section 329-121, Hawaii Revised Statutes, is amended by amending the definition of "adequate supply" to read as follows:

     ""Adequate supply" means an amount of marijuana jointly possessed between the qualifying patient and the primary caregiver that is not more than is reasonably necessary to ensure the uninterrupted availability of marijuana for the purpose of alleviating the symptoms or effects of a qualifying patient's debilitating medical condition; provided that an "adequate supply" shall not exceed: seven marijuana plants, whether immature or mature, and four ounces of usable marijuana at any given time.  The four ounces of usable marijuana shall include any combination of usable marijuana and manufactured marijuana products, as provided in chapter [329D,]      , with the marijuana in the manufactured marijuana products being calculated using information provided pursuant to section [329D‑9(c).]    -12(c)."

     SECTION 5.  Section 329-122, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:

     "(c)  The authorization for the medical use of marijuana in this section shall not apply to:

     (1)  The medical use of marijuana that endangers the health or well-being of another person;

     (2)  The medical use of marijuana:

         (A)  In a school bus, public bus, or any moving vehicle;

         (B)  In the workplace of one's employment;

         (C)  On any school grounds;

         (D)  At any public park, public beach, public recreation center, recreation or youth center; or

         (E)  At any other place open to the public; provided that a qualifying patient, primary caregiver, or an owner or employee of a medical marijuana [dispensary] growing facility, production center, or retail dispensing location licensed under chapter [329D]       shall not be prohibited from transporting marijuana or any manufactured marijuana product, as that term is defined in section [329D-1,]    -1 in any public place; provided further that the marijuana or manufactured marijuana product shall be transported in a sealed container, not be visible to the public, and shall not be removed from its sealed container or consumed or used in any way while it is in the public place; and

     (3)  The use of marijuana by a qualifying patient, parent, or primary caregiver for purposes other than medical use permitted by this part.

     (d)  For the purposes of this section, "transport" means the transportation of marijuana, usable marijuana, or any manufactured marijuana product between:

     (1)  A qualifying patient and the qualifying patient's primary caregiver; or

     (2)  The growing facility, production centers, and [the] retail dispensing locations under a [dispensary] licensee's license;

provided that "transport" does not include the interisland transportation of marijuana, usable marijuana, or any manufactured marijuana product."

     SECTION 6.  Section 329-125.6, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§329-125.6[]]  Protections afforded to an owner or qualified employee of a licensed medical marijuana [dispensary.] growing facility, production center, or retail dispensing location.  (a)  An owner or employee of a medical marijuana [dispensary] growing facility, production center, or retail dispensing location that is licensed under chapter [329D]       may assert the cultivation, production, or distribution of medical marijuana as an affirmative defense to any prosecution involving marijuana under this part, chapter [329D,]      , or chapter 712; provided that the owner or employee strictly complied with the requirements of chapter [329D]       and any administrative rules adopted thereunder.

     (b)  An owner or employee of a licensed medical marijuana [dispensary] growing facility, production center, or retail dispensing location not strictly complying with the requirements of chapter [329D,]      , and any administrative rules adopted thereunder, shall not be afforded the protections provided by subsection (a)."

     SECTION 7.  Section 329-130, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§329-130[]]  Authorized sources of medical marijuana.  (a)  After December 31, 2018, a qualifying patient shall obtain medical marijuana or manufactured marijuana products only:

     (1)  From a [dispensary] retail dispensing location licensed pursuant to chapter [329D;]      ; provided that the marijuana shall be purchased and paid for at the time of purchase; or

     (2)  By cultivating marijuana in an amount that does not exceed an adequate supply for the qualifying patient, pursuant to section 329-122.

After December 31, 2018, no primary caregiver shall be authorized to cultivate marijuana for any qualifying patient.

     (b)  This section shall not apply to:

     (1)  A qualifying patient who is a minor or an adult lacking legal capacity and the primary caregiver is the parent, guardian, or person having legal custody of a qualifying patient described in this paragraph; or

     (2)  A qualifying patient on any island on which there is no medical marijuana [dispensary] retail dispensing location licensed pursuant to chapter [329D.]      ."

PART V

     SECTION 8.  Section 846-2.7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Criminal history record checks may be conducted by:

     (1)  The department of health or its designee on operators of adult foster homes for individuals with developmental disabilities or developmental disabilities domiciliary homes and their employees, as provided by section 321-15.2;

     (2)  The department of health or its designee on prospective employees, persons seeking to serve as providers, or subcontractors in positions that place them in direct contact with clients when providing non-witnessed direct mental health or health care services as provided by section 321-171.5;

     (3)  The department of health or its designee on all applicants for licensure or certification for, operators for, prospective employees, adult volunteers, and all adults, except adults in care, at health care facilities as defined in section 321-15.2;

     (4)  The department of education on employees, prospective employees, and teacher trainees in any public school in positions that necessitate close proximity to children as provided by section 302A-601.5;

     (5)  The counties on employees and prospective employees who may be in positions that place them in close proximity to children in recreation or child care programs and services;

     (6)  The county liquor commissions on applicants for liquor licenses as provided by section 281-53.5;

     (7)  The county liquor commissions on employees and prospective employees involved in liquor administration, law enforcement, and liquor control investigations;

     (8)  The department of human services on operators and employees of child caring institutions, child placing organizations, and foster boarding homes as provided by section 346-17;

     (9)  The department of human services on prospective adoptive parents as established under section 346‑19.7;

    (10)  The department of human services on applicants to operate child care facilities, prospective employees of the applicant, and new employees of the provider after registration or licensure as provided by section 346-154;

    (11)  The department of human services on persons exempt pursuant to section 346-152 to be eligible to provide child care and receive child care subsidies as provided by section 346-152.5;

    (12)  The department of health on operators and employees of home and community-based case management agencies and operators and other adults, except for adults in care, residing in community care foster family homes as provided by section 321-15.2;

    (13)  The department of human services on staff members of the Hawaii youth correctional facility as provided by section 352-5.5;

    (14)  The department of human services on employees, prospective employees, and volunteers of contracted providers and subcontractors in positions that place them in close proximity to youth when providing services on behalf of the office or the Hawaii youth correctional facility as provided by section 352D-4.3;

    (15)  The judiciary on employees and applicants at detention and shelter facilities as provided by section 571-34;

    (16)  The department of public safety on employees and prospective employees who are directly involved with the treatment and care of persons committed to a correctional facility or who possess police powers including the power of arrest as provided by section 353C-5;

    (17)  The board of private detectives and guards on applicants for private detective or private guard licensure as provided by section 463-9;

    (18)  Private schools and designated organizations on employees and prospective employees who may be in positions that necessitate close proximity to children; provided that private schools and designated organizations receive only indications of the states from which the national criminal history record information was provided pursuant to section 302C-1;

    (19)  The public library system on employees and prospective employees whose positions place them in close proximity to children as provided by section 302A‑601.5;

    (20)  The State or any of its branches, political subdivisions, or agencies on applicants and employees holding a position that has the same type of contact with children, vulnerable adults, or persons committed to a correctional facility as other public employees who hold positions that are authorized by law to require criminal history record checks as a condition of employment as provided by section 78-2.7;

    (21)  The department of health on licensed adult day care center operators, employees, new employees, subcontracted service providers and their employees, and adult volunteers as provided by section 321-15.2;

    (22)  The department of human services on purchase of service contracted and subcontracted service providers and their employees serving clients of the adult protective and community services branch, as provided by section 346-97;

    (23)  The department of human services on foster grandparent program, senior companion program, and respite companion program participants as provided by section 346-97;

    (24)  The department of human services on contracted and subcontracted service providers and their current and prospective employees that provide home and community-based services under section 1915(c) of the Social Security Act, title 42 United States Code section 1396n(c), or under any other applicable section or sections of the Social Security Act for the purposes of providing home and community-based services, as provided by section 346-97;

    (25)  The department of commerce and consumer affairs on proposed directors and executive officers of a bank, savings bank, savings and loan association, trust company, and depository financial services loan company as provided by section 412:3-201;

    (26)  The department of commerce and consumer affairs on proposed directors and executive officers of a nondepository financial services loan company as provided by section 412:3-301;

    (27)  The department of commerce and consumer affairs on the original chartering applicants and proposed executive officers of a credit union as provided by section 412:10-103;

    (28)  The department of commerce and consumer affairs on:

         (A)  Each principal of every non-corporate applicant for a money transmitter license; and

         (B)  The executive officers, key shareholders, and managers in charge of a money transmitter's activities of every corporate applicant for a money transmitter license,

          as provided by sections 489D-9 and 489D‑15;

    (29)  The department of commerce and consumer affairs on applicants for licensure and persons licensed under title 24;

    (30)  The Hawaii health systems corporation on:

         (A)  Employees;

         (B)  Applicants seeking employment;

         (C)  Current or prospective members of the corporation board or regional system board; or

         (D)  Current or prospective volunteers, providers, or contractors,

          in any of the corporation's health facilities as provided by section 323F-5.5;

    (31)  The department of commerce and consumer affairs on:

         (A)  An applicant for a mortgage loan originator license; and

         (B)  Each control person, executive officer, director, general partner, and manager of an applicant for a mortgage loan originator company license,

          as provided by chapter 454F;

    (32)  The state public charter school commission or public charter schools on employees, teacher trainees, prospective employees, and prospective teacher trainees in any public charter school for any position that places them in close proximity to children, as provided in section 302D-33;

    (33)  The counties on prospective employees who work with children, vulnerable adults, or senior citizens in community-based programs;

    (34)  The counties on prospective employees for fire department positions which involve contact with children or vulnerable adults;

    (35)  The counties on prospective employees for emergency medical services positions which involve contact with children or vulnerable adults;

    (36)  The counties on prospective employees for emergency management positions and community volunteers whose responsibilities involve planning and executing homeland security measures including viewing, handling, and engaging in law enforcement or classified meetings and assisting vulnerable citizens during emergencies or crises;

    (37)  The State and counties on employees, prospective employees, volunteers, and contractors whose position responsibilities require unescorted access to secured areas and equipment related to a traffic management center;

    (38)  The State and counties on employees and prospective employees whose positions involve the handling or use of firearms for other than law enforcement purposes;

    (39)  The State and counties on current and prospective systems analysts and others involved in an agency's information technology operation whose position responsibilities provide them with access to proprietary, confidential, or sensitive information;

    (40)  The department of commerce and consumer affairs on applicants for real estate appraiser licensure or certification as provided by chapter 466K;

    (41)  The department of health or its designee on all license applicants, licensees, employees, contractors, and prospective employees of medical marijuana [dispensaries,] growing facilities, production centers, or retail dispensing locations, and individuals permitted to enter and remain in medical marijuana [dispensary facilities] growing facilities, production centers, or retail dispensing locations as provided under sections [329D-15(a)(4) and 329D‑16(a)(3);]    -18(a)(3),    -19(a)(3), and    ‑20(a)(4); and

    (42)  Any other organization, entity, or the State, its branches, political subdivisions, or agencies as may be authorized by state law."

PART VI

     SECTION 9.  Chapter 329D, Hawaii Revised Statutes, is repealed.

PART VII

     SECTION 10.  No later than March 15, 2017, the director of health, or the director's designee, shall submit a report and provide an informational briefing to the legislature concerning the progress of implementing part I of this Act, including the status of rulemaking by the department of health pertaining to the licensure of medical marijuana growing facilities, production centers, and retail dispensing locations.

PART VIII

     SECTION 11.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 12.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 13.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 14.  This Act shall take effect on January 1, 2017; provided that part VI of this Act shall take effect on December 31, 2016.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Medical Marijuana Dispensary Program; Operations; Licensing

 

Description:

Beginning January 1, 2017, establishes a licensing system for medical marijuana growing facilities, production centers, and retail dispensing locations.  Allows persons authorized to use and possess medical marijuana in other states to be treated similarly to qualifying patients in this State pursuant to rules adopted by the department of health after 1/1/2018.  Authorizes the department of health to conduct criminal history checks on license applicants; licensees; prospective employees of growing facilities, production centers, and retail dispensing locations; subcontractors; and persons authorized to enter and remain on such premises.  Repeals chapter 329D on December 31, 2016.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.