THE SENATE

S.B. NO.

1458

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO HEALTH.

 

 

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

 


     SECTION 1.  On June 14, 2000, Act 228, Session Laws of Hawaii, was signed into law, making Hawaii one of the first states to permit the medical use of marijuana by registered patients.  No changes have been made to Hawaii's medical marijuana law since its inception, while registered patients have increased and more states have enacted more comprehensive medical marijuana laws.  Basically, the law allows for the growing, transporting, and possession of marijuana for medical purposes by qualified patients and caregivers.

     The medical cannabis working group was tasked with completing the mission originally assigned to the medical cannabis task force under Act 29, Special Session of Hawaii 2009, which was enacted over a veto by the governor.  The medical cannabis task force was never convened; therefore, the medical cannabis working group examined current state statutes, state administrative rules, and all county policies and procedures relating to the medical marijuana program and issues and obstacles encountered by qualifying patients, physicians, caregivers, and law enforcement officials.  The medical cannabis working group also compared and contrasted Hawaii's medical marijuana program with all other states' medical marijuana programs.  According to the findings of the medical cannabis working group in Report to the Hawaii State Legislature, February 2010, immediate actions should be taken by the legislature to improve Hawaii's medical cannabis program.

     Foremost, the medical cannabis working group recommends the creation of a state regulated medical marijuana distribution system so that qualifying patients have safe and reliable access to medical marijuana.  Currently, fourteen states have enacted laws allowing the use of marijuana for medical purposes.  In addition, Maine, Rhode Island, New Jersey, New Mexico, Colorado, Washington, D.C., and California have laws regulating the distribution of medical marijuana to qualified patients.  The medical cannabis working group found after compiling patient, caregiver, and physician information that patients do not have access to a safe and legal supply of medicine.  Rather, patients are often forced to find black market sources where risk of violence and robbery exist.  Many patients receive low quality cannabis which is ineffective as medication.  Patients' physical limitations and illness prevent or inhibit them from growing medical cannabis.  Further, it is almost impossible for most patients and caregivers to acquire the expertise, time, and intense cultivation skills to produce an adequate supply of medical cannabis that is medically effective.

     For purposes of health, public safety, and the social and economic welfare of the State, a fully integrated cultivation and distribution program would safely and more effectively regulate access to medical marijuana and generate jobs and revenue to provide resources for other state programs.

     The purpose of this Act is to establish a licensing system under the department of health for the distribution of medical marijuana.

     SECTION 2.  Chapter 329, Hawaii Revised Statutes, is amended by adding a new subpart to part IX to be appropriately designated and to read as follows:

"B.  Distribution Program for Medical Marijuana

     §329-A  Purpose.  A program to regulate the distribution of medical marijuana is in the interest of protecting the public's health and safety and in the interest of promoting the economic and social welfare of the State.  The distribution program:

     (1)  Provides a safe and accessible distribution system for qualifying patients by requiring qualifying patients to designate a compassion center as their supplier of medical marijuana;

     (2)  Establishes a class 1 medical marijuana compassion center license for selling medical marijuana to qualifying patients;

     (3)  Establishes a class 2 medical marijuana cultivation license for cultivating and distributing medical marijuana to class 1 licensees, and to sell medical marijuana to class 3 licensees;

     (4)  Establishes a class 3 medical marijuana-infused products manufacturing license for creating medical marijuana-infused products to be distributed to class 1 licensees for sale to qualifying patients;

     (5)  Collects from all licensees an initial licensing fee of $20,000 for a class 1 medical marijuana compassion center license; $10,000 for a class 2 medical marijuana cultivation license; and $10,000 for a class 3 medical marijuana-infused products manufacturing license;

     (6)  Establishes compassion centers on each island;

     (7)  Ensures that all medical marijuana distributed through the distribution program is produced by licensees;

     (8)  Ensures that class 1 licensed centers provide medical marijuana exclusively to qualifying patients and primary caregivers, and to other non-Hawaii qualifying patients holding a temporary registration certificate;

     (9)  Establishes a system whereby licensees may sell medical marijuana to other licensees;

    (10)  Prohibits any person who has had a felony drug conviction or any person convicted of any felony in the immediately preceding five years from obtaining or renewing a license;

    (11)  Prohibits individuals who are less than twenty-one years of age from being an employee or director of a licensed facility;

    (12)  Establishes inspection criteria for the business premises of medical marijuana licensees;

    (13)  Requires licensees to submit annual reports of their financial transactions to the department;

    (14)  Requires licensees to pay a quarterly special sales tax to the department of taxation in the amount of fifteen per cent of gross revenue, to be deposited into the state general fund;

    (15)  Ensures that class 1 licensees are permitted to possess sufficient medical marijuana or marijuana plants to reasonably guarantee an adequate supply;

    (16)  Establishes security procedures to monitor medical marijuana; and

    (17)  Allows out-of-state visitors who are qualifying patients or primary caregivers in their home state to obtain a temporary registration certificate upon payment of an administrative fee.

     §329-B  Definitions.  As used in this subpart:

     "Compassion center" means a class 1 medical marijuana compassion center licensee, other than the qualifying patient and the qualifying patient's physician, who has agreed to be the primary caregiver of the qualifying patient.

     "Department" means the department of health.

     "Distribution program" means a licensing system under the department of health for the distribution of medical marijuana.

     "Medical marijuana" means marijuana for medical use by a qualified patient upon issuance of a written certification by a licensed physician to the qualified patient pursuant to subpart A.

     "Medical marijuana-infused product" means a product that contains medical marijuana and is intended for medical use by means other than smoking.  The term includes edible products, ointments, and tinctures.

     §329-C  Distribution program for medical marijuana.  No later than August 7, 2012, the department shall establish, administer, and implement a distribution program for medical marijuana.

     329-D  Licensure.  (a)  No business or non-profit entity shall cultivate, distribute, manufacture, or sell marijuana for medical use or manufacture a medical marijuana-infused product without a license issued by the department.  The department may suspend or revoke any license that is not in substantial compliance with this subpart.  The medical use of marijuana under subpart A shall not require a license.

     (b)  The department shall assess fees for medical marijuana licensure as follows:

     (1)  An annual fee of $20,000 for the issuance of a class 1 medical marijuana compassion center license and a fee for annual renewal of a class 1 license in the same amount;

     (2)  An annual fee of $10,000 for issuance of a class 2 medical marijuana cultivation license and a fee for annual renewal of a class 2 license in the same amount; and

     (3)  An annual fee of $10,000 for issuance of a class 3 medical marijuana-infused products manufacturing license and a fee for annual renewal of a class 3 license in the same amount;

provided that all fees collected shall be used to defray the expenses of the department in administering this subpart.

     (c)  The amount of marijuana that may be sold for medical use or in a medical marijuana-infused product at any one time to a qualifying patient or primary caregiver for use by a qualifying patient shall not exceed an adequate supply, as defined in section 329-121.

     (d)  Medical marijuana and medical marijuana-infused products shall not be used or consumed on any business premises of a licensee.

     (e)  No licensee shall be subject to criminal prosecution for activities conducted in compliance with this subpart.

     (f)  There is established the following classes of licenses and requirements for each class of license:

     (1)  Class 1 medical marijuana compassion center license.

          (A)  A class 1 license may be issued to a business or nonprofit entity to sell marijuana for medical use by a registered qualifying patient; provided that the sale occurs on the licensee's business premises;

          (B)  A class 1 licensee may sell medical marijuana obtained from a class 2 licensee; provided that the marijuana is cultivated on the premises of the class 2 licensee;

          (C)  A class 1 licensee may sell marijuana purchased from another class 1 licensee whose marijuana was cultivated by a class 2 licensee; provided that the marijuana is cultivated on the premises of the class 2 licensee;

          (D)  A class 1 licensee may contract with a class 3 licensee to sell medical marijuana-infused products that are prepackaged and labeled so as to clearly indicate all of the following:

               (i)  That the product contains marijuana for medical use;

              (ii)  That the product is manufactured without any regulatory oversight for health, safety, or efficacy; and

             (iii)  That there may be health risks associated with the consumption or use of the product;

          (E)  Prior to initiating a sale to a qualified patient, a trained employee of a class 1 licensee making the sale shall verify that the purchaser is a qualified patient who has a valid written certification under section 329-123 and presents a valid picture identification card that matches the name on the written certification;

         (F)  All marijuana sold by a class 1 licensee shall be labeled with a list of all chemical additives, including nonorganic pesticides, herbicides, and fertilizers, that were used in the cultivation and the production of the marijuana; and

         (G)  Qualifying patients shall designate a class 1 licensee as their supplier of medical marijuana.

     (2)  Class 2 medical marijuana cultivation license.

          (A)  A class 2 license may be issued to a business or nonprofit entity to cultivate medical marijuana;

         (B)  The medical marijuana shall be cultivated on the class 2 licensees' business premises;

         (C)  An application for a license under this paragraph shall include plans and specifications for the land and any buildings used to cultivate medical marijuana;

         (D)  The business premises of a class 2 licensee may not be contiguous to a licensed class 1 medical marijuana compassion center;

         (E)  A class 2 licensee shall designate a class 1 licensee or a class 3 licensee as the business or nonprofit entity to which the class 2 licensee provides medical marijuana;

         (F)  A class 2 licensee shall be limited to cultivating marijuana in quantities not greater than an adequate supply, as defined in section 329-121, for qualifying patients for the sole purpose of selling medical marijuana for lawful use to qualifying patients that have designated a class 1 center licensee as the primary compassion center for the qualifying patient;

         (G)  Medical marijuana cultivation by a class 2 licensee shall be limited to an area of the licensee's business premises that is restricted solely for the purpose of cultivation of medical marijuana and excludes entrance by the general public.  The restricted area shall be demarcated from the rest of the premises and clearly identified as having restricted access by conspicuous signage; and

         (H)  No class 2 licensee shall sell directly to a qualifying patient.

     (3)  Class 3 medical marijuana-infused products manufacturing license.

     (A)  A class 3 license may be issued to a business or nonprofit entity to manufacture marijuana-infused products, including hashish, consumable products, and tinctures for sale that contain any amount of medical marijuana;

         (B)  Medical marijuana-infused products shall be prepared on the business premises that are used exclusively for the manufacture and preparation of medical marijuana-infused products;

         (C)  A class 3 licensee shall have a written contract with a class 2 licensee to obtain medical marijuana to manufacture and prepare medical marijuana-infused products.  The contract shall at a minimum set forth the total amount of medical marijuana obtained from the class 2 licensee for use in the manufacturing and preparation process;

         (D)  A class 3 licensee shall have a written contract with a class 1 licensee;

         (E)  All premises on which medical marijuana-infused products are manufactured shall meet applicable state and county sanitation standards applicable to the production of food products;

         (F)  All medical marijuana-infused products shall be sealed and conspicuously labeled to indicate that the product contains marijuana and list all other ingredients and the number of grams of medical marijuana infused in the product; and

          (G)  All class 3 licensees shall be limited to production in a properly licensed industrial or commercial warehouse or a properly licensed commercial kitchen.

     (g)  A licensee under any class shall not be permitted to transfer a license.

     (h)  No applicant for a license shall be eligible for issuance or renewal of a license under this section if:

     (1)  The issuance or renewal fee for the license has not been paid within thirty days of the payment due date;

     (2)  The applicant's criminal history check indicates that the applicant has been convicted of any felony drug offense or any felony in the immediately preceding five years from obtaining a license;

     (3)  The applicant is under twenty-one years of age;

     (4)  The applicant failed to pay any taxes, interest, or penalties due to a government agency or failed to pay any amount due to a government agency pursuant to a judgment or order; or

     (5)  The applicant is a law enforcement officer or an employee of the department of public safety or the department.

     (i)  The department shall conduct a criminal history record check under chapter 846 on each applicant for a license or renewal of a license and on other persons associated with the applicant as specified in this section.

     (j)  Any medical marijuana shall be labeled at all times with at least a listing of the type of strain and the non-organic ingredients used to grow the marijuana.

     329-E  Recordkeeping requirements.  Every licensee shall keep a complete set of all records of the business transactions of the licensee regarding medical marijuana, including dispensing records and patients' registry information.  The records shall be subject to inspection by the department and the department of taxation at any time during normal business hours.  The department and the department of taxation may conduct an audit of the licensee's business records.

     All records relating to a transaction shall be kept by the licensee for a period of not less than five years following that transaction; provided that all records shall be kept confidential.

     §329-F  Inspection.  The business premises of any licensee shall be subject to reasonable inspection by the department; provided that the department shall give reasonable notice of an inspection.  The department may review the licensees' confidential records, including dispensing records identified by a qualifying patient's registry number to protect confidentiality.

     §329-G  Taxation of medical marijuana sales.  (a)  All sales of medical marijuana between licensees of any class shall be subject to state income tax under chapter 235, state excise tax under chapter 237, and a special sales tax under subsection (c).

     (b)  For purposes of this section, a licensee shall maintain required records of sales and income for purposes of chapters 235 and 237.

     (c)  All sales of medical marijuana shall be subject to a special sales tax of fifteen per cent to be deposited into the general fund.

     §329-H  Security of licensed premises for public safety concerns.  (a)  All licensees shall implement appropriate security and safety measures to deter and prevent the theft of marijuana and the unauthorized entrance onto the licensee's business premises.

     (b)  All licensees shall:

     (1)  Install a security camera surveillance system with seventy-two hours of storage capacity;

     (2)  Install an alarm system for break-ins that is connected to an alarm company to alert law enforcement of break-ins; and

     (3)  Store marijuana in a locked area on the premises.

     §329-I  Miscellaneous security measures.  (a)  No class 1 medical marijuana compassion center licensee, class 2 medical marijuana cultivation licensee, or class 3 medical marijuana-infused products manufacturing licensee shall be located within three hundred feet of any day care facility, public or private school, or another class 1, class 2, or class 3 licensee facility.

     §329-J  Protections afforded licensees of program.  All class 1, class 2, and class 3 licensees, including their directors, agents, and employees shall be exempt from state criminal prosecution for possession, production, delivery, and transportation of marijuana; aiding and abetting another in the possession, production, delivery, and transportation of marijuana; or any other criminal offense in which possession, production, delivery, or transportation of marijuana is an element, if the activities are in substantial compliance with this subpart; provided that the following activities shall be subject to criminal prosecution:

     (1)  Driving a motor vehicle while under the influence of marijuana;

     (2)  Engaging in the production, possession, or distribution of marijuana in public view;

     (3)  Delivering marijuana to any individual whom the deliverer knows or should have known does not possess a written certification;

     (4)  Manufacturing or distributing marijuana at an address not registered with the department; and

     (5)  Failing to report otherwise legal sales of medical marijuana to the department.

     §329-K   Criminal history record check.  (a)  No person who has had a felony drug conviction or who has been convicted of any felony in the immediately preceding five years shall be eligible to obtain or renew any license under this subpart.

     (b)  Every applicant for a license or renewal of a license, including the applicant's employees, directors, owners, principals, partners, and stockholders shall undergo a criminal history record check under section 846-2.7.

     §329-L  Rules.  The department may adopt rules pursuant to chapter 91 necessary to carry out the purposes of this subpart."

     SECTION 3.  Section 328-14, Hawaii Revised Statutes, is amended to read as follows:

     "§328-14  Drugs or devices deemed adulterated when.  (a)  A drug or device shall be deemed to be adulterated:

     (1)  (A)  If it consists in whole or in part of any filthy, putrid, or decomposed substance; or

          (B)  (i)  If it has been produced, prepared, packed, or held under insanitary conditions whereby it may have been contaminated with filth, or whereby it may have been rendered injurious to health; or

             (ii)  If the methods used in, or the facilities or controls used for, its manufacture, processing, packing, or holding do not conform to or are not operated or administered in conformity with current good manufacturing practice to assure that the drug or device meets the requirements of this part as to safety and has the identity and strength, and meets the quality and purity characteristics which it purports or is represented to possess; or

         (C)  If its container is composed, in whole or in part, of any poisonous or deleterious substance which may render the contents injurious to health; or

         (D)  If:

              (i)  It bears or contains, for purposes of coloring only, a color additive which is unsafe within the meaning of the Federal Act; or

             (ii)  It is a color additive, the intended use of which is for purposes of coloring only, and is unsafe within the meaning of the Federal Act;

     (2)  If it purports to be or is represented as a drug the name of which is recognized in an official compendium, and its strength differs from, or its quality or purity falls below, the standard set forth in the compendium.  Such a determination as to strength, quality, or purity shall be made in accordance with the tests or methods of assay set forth in the compendium, or in the absence of or inadequacy of these tests or methods of assay, those prescribed under authority of the Federal Act.  No drug defined in an official compendium shall be deemed to be adulterated under this paragraph because it differs from the standard of strength, quality, or purity therefor set forth in the compendium, if its difference in strength, quality, or purity from that standard is plainly stated on its label.  Whenever a drug is recognized in both the United States Pharmacopoeia and the Homeopathic Pharmacopoeia of the United States it shall be subject to the requirements of the United States Pharmacopoeia unless it is labeled and offered for sale as a homeopathic drug, in which case it shall be subject to the Homeopathic Pharmacopoeia of the United States and not those of the United States Pharmacopoeia;

     (3)  If it is not subject to paragraph (2) and its strength differs from, or its purity or quality falls below, that which it purports or is represented to possess; or

     (4)  If it is a drug and any substance has been [(A)] mixed or packed therewith so as to reduce its quality or strength; or [(B)] substituted wholly or in part therefor.

     (b)  A medical marijuana-infused product, as defined in section 329-B, shall be exempt from this section if the food is labeled as containing marijuana for medical use and specifies the potency and quantity of the grams of the active ingredients."

     SECTION 4.  Part IX of chapter 329, Hawaii Revised Statutes, is amended by designating sections 329-121 to 329-128 as subpart A, entitled "General Provisions".

     SECTION 5.  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 or jointly possessed by the qualifying patient and a compassion center as defined in section 329-B, that is not more than is reasonably necessary to assure 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 [three mature]:

     (1)  Seven marijuana plants, [four immature marijuana plants,] and [one ounce] six ounces of usable marijuana per [each mature plant.] compassion center per registered patient per fourteen day period; and

     (2)  Seven marijuana plants and two ounces of usable marijuana per each plant for a qualifying patient."

     SECTION 6.  Section 329-123, Hawaii Revised Statutes, is amended by amending to read as follows:

     "[[]§329-123[]]  Registration requirements.  (a)  Physicians who issue written certifications shall register the names, addresses, patient identification numbers, and other identifying information of the patients issued written certifications with the department of public safety.

     (b)  Qualifying patients shall register with the department of public safety.  Such registration shall be effective until the expiration of the certificate issued by the physician.  Every qualifying patient shall provide sufficient identifying information to establish personal identity of the qualifying patient and the primary caregiver[.] or the qualifying patient and the compassion center as defined in section 329-B.  Qualifying patients shall report changes in information within five working days.  Every qualifying patient shall have only one primary caregiver or compassion center at any given time.  The department shall then issue to the qualifying patient a registration certificate, and may charge a reasonable fee not to exceed $25.

     (c)  Primary caregivers shall register with the department of public safety.  Every primary caregiver shall be responsible for the care of only one qualifying patient at any given time.

     (d)  Upon an inquiry by a law enforcement agent, the department of public safety shall verify whether the particular qualifying patient has registered with the department and may provide reasonable access to the registry information for official law enforcement purposes.

     (e)  For purposes of subpart B, the department shall allow out-of-state visitors who are qualifying patients or primary caregivers in their home state to obtain a temporary registration certificate; provided that there shall be assessed and collected an administrative fee of $100 for the length of time of the visit."

     SECTION 7.  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 on operators of adult foster homes or developmental disabilities domiciliary homes and their employees, as provided by section 333F-22;

     (2)  The department 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 services as provided by section 321‑171.5;

     (3)  The department on all applicants for licensure for, operators for, and prospective employees, and volunteers at one or more of the following:  skilled nursing facility, intermediate care facility, adult residential care home, expanded adult residential care home, assisted living facility, home health agent, hospice, adult day health center, special treatment facility, therapeutic living program, intermediate care facility for the mentally retarded, hospital, rural health center and rehabilitation agent, and, in the case of any of the above-related facilities operating in a private residence, on any adult living in the facility other than the client as provided by 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 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;

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

     (9)  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;

    (10)  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;

    (11)  The department of human services on operators and employees of home and community-based case management agencies and operators and other adults, except for adults in care, residing in foster family homes as provided by section 346-335;

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

    (13)  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;

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

    (15)  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;

    (16)  The department of health on each applicant for a license or renewal of a license under section 329-K, and on the applicant's employees, directors, owners, principals, partners, and stockholders;

   [(16)] (17)  The department on applicants for private detective or private guard licensure as provided by section 463‑9;

   [(17)] (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;

   [(18)] (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;

   [(19)] (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;

   [(20)] (21)  The department of human services on licensed adult day care center operators, employees, new employees, subcontracted service providers and their employees, and adult volunteers as provided by section 346-97;

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

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

   [(23)] (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;

   [(24)] (25)  The department 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;

   [(25)] (26)  The department on proposed directors and executive officers of a nondepository financial services loan company as provided by section 412:3‑301;

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

   [(27)] (28)  The department 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 section 489D-9;

   [(28)] (29)  The department on applicants for licensure and persons licensed under title 24;

   [(29)] (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;

  [(30)(31)  The department on an applicant for a mortgage loan originator's license as provided by chapter 454F; and

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

     SECTION 8.  Chapter 329, part IX, subpart A, Hawaii Revised Statutes, is amended by substituting the term "subpart" wherever the term "part" appears, as the context requires.

     SECTION 9.  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, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 10.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 11.  In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 12.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 13.  This Act shall take effect on August 7, 2012.

 

INTRODUCED BY:

_____________________________

 

 


 


Report Title:

Health; Medical Marijuana

 

Description:

Creates three classes of medical marijuana licenses: class 1 medical marijuana compassion center license for the sale of medical marijuana to qualified patients; class 2 medical marijuana cultivation license; class 3 medical marijuana-infused products manufacturing license.  Specifies requirements for each class.  Makes medical marijuana sales subject to income and excise taxes.  Establishes a special marijuana sales tax on sales of medical marijuana.  Establishes a fee for issuance and renewal of a license and a special marijuana sales tax.  Takes effect 8/7/2012.

 

 

 

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