THE SENATE

S.B. NO.

1353

THIRTIETH LEGISLATURE, 2019

S.D. 3

STATE OF HAWAII

H.D. 2

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO INDUSTRIAL HEMP.

 

 

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

 


SECTION 1. The legislature recognizes that the recently-enacted Agriculture Improvement Act of 2018, informally known as the "Farm Bill", among other matters, legalized hemp by removing hemp from the definition of "marihuana" contained in the federal Controlled Substances Act. Therefore, hemp is no longer classified as an illegal drug under federal law. The Agriculture Improvement Act also makes amendments to the Agricultural Marketing Act of 1946. These amendments authorize the department of agriculture of each state to submit to the federal Secretary of Agriculture a proposed plan for the state's department of agriculture to monitor and regulate hemp production within the state. After the federal Secretary of Agriculture approves a state plan, authorized entities within the respective state may engage in the production of hemp, including at the commercial level.

The legislature finds that the university of Hawaii's research on hemp shows that there is significant potential for a successful hemp agricultural industry in Hawaii. In addition to creating new agricultural commerce, hemp is also beneficial in removing toxins from the soil (phytoremediation), which is important because past agricultural operations in the State have deposited toxins in vast tracts of land. Hemp grows quickly and is a superior phytoremediation crop. The legislature also finds that hemp is an environmentally-friendly and efficient feedstock for biofuel. Hemp can be made into clothing and used in other products to promote the growth of small businesses.

The legislature also finds that although the State has authorized the limited production of hemp through its industrial hemp pilot program, progress in that program has been stalled by the rules, policies, and practices of the state department of agriculture, which have been far more onerous than even the requirements established under previous federal law.

The purpose of this Act is to facilitate the regulation and production of industrial hemp in the State by:

(1) Requiring the department of agriculture to establish a permanent industrial hemp program to license individuals to cultivate industrial hemp in the State;

(2) Imposing a monetary penalty on any person who produces hemp without authorization from a state or federal program;

(3) Establishing an affirmative defense to criminal penalties for the cultivation of industrial hemp;

(4) Authorizing licensees to utilize hemp genetics, from any state, that meet federal definitions of hemp and originate from any state having a federally approved industrial hemp program;

(5) Authorizing the department of agriculture to use temporary inspectors to perform industrial hemp inspections;

(6) Exempting certain persons who transport and move certain hemp plant materials from penalties and reporting requirements relating to the transportation and movement of those materials;

(7) Amending definitions of "marijuana" in state law to clarify that hemp is not marijuana;

(8) Requiring the chairperson of the board of agriculture to:

(A) Prepare and submit a proposed state plan to monitor and regulate hemp production, including commercial production and research, to the federal Secretary of Agriculture pursuant to section 297B of the Agricultural Marketing Act of 1946, as amended; and

(B) Report to the governor, speaker of the house of representatives, and president of the senate on the status of the federal Secretary of Agriculture's pending approval of the state plan and, if approved, the subsequent implementation of the plan; and

(9) Establishing an industrial hemp special fund for the purposes of the permanent industrial hemp program, appropriating moneys into that fund, and appropriating moneys from that fund for the establishment of positions relating to the regulation of industrial hemp.

SECTION 2. Chapter 141, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    . industrial hemp program

141-A Definitions. As used in this part:

"Chairperson" means the chairperson of the board of agriculture or the chairperson's designee.

"Cultivar" means a variety of industrial hemp.

"Department" means the department of agriculture.

"Industrial hemp" means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 per cent on a dry weight basis.

"Retail" means the sale of goods to the public in relatively small quantities for use or consumption and not for the purpose of processing into other products for eventual resale.

"Variety" means a group of individual plants that exhibit the same observable physical characteristics or have the same genetic composition.

141-B Industrial hemp program; established. The department shall establish an industrial hemp program to authorize licensed individuals to cultivate industrial hemp in the State.

141-C Licensing. (a) A person who intends to grow industrial hemp in the State shall apply to the department for a license on a form prescribed by the department and pay an application fee.

(b) If the chairperson determines that the requirements for a license pursuant to this part, and any other requirements established by rule, are satisfied, the chairperson shall issue a license to the applicant upon payment of the fee established in this section.

(c) Each license shall be valid for two years from the date of issuance, after which the licensee shall be required to renew the license and pay a renewal fee.

(d) The department may prescribe sampling, inspection, and reporting requirements for licensees.

(e) Any license issued under the industrial hemp pilot program shall have continued validity under the original terms and conditions of that license until it expires. Upon expiration, the licensee may renew that license under new terms and conditions that are compliant with this part, by paying a renewal fee and applying for license renewal pursuant to a process established by the chairperson.

141-D Approved seed cultivars; hemp genetics. (a) Only industrial hemp on the list of seed cultivars approved by the board shall be grown. The board may add or remove any seed cultivar from the list if the cultivar is found to be noncompliant with this part.

(b) The list of approved seed cultivars shall include the following:

(1) Industrial hemp seed cultivars that have been certified by the Organisation for Economic Co-operation and Development;

(2) Hawaii varieties of industrial hemp seed cultivars that have been certified by the board; and

(3) Hemp genetics that are shown to meet federal definitions of hemp and originate from any state with a federally approved industrial hemp program.

141-E Inspections; fees. (a) A licensee shall permit the annual inspection and sampling of the licensee's hemp plants pursuant to section 297B of the Agriculture Improvement Act of 2018.

(b) Any member of the department, or any agent or third party authorized by the department, may enter at a reasonable time upon any private property utilized for the cultivation of industrial hemp pursuant to this part in order to conduct an annual inspection and sampling pursuant to subsection (a).

(c) The department may set reasonable inspection and sampling fees.

(d) The department may employ temporary inspectors to assist in certification, audit, and inspection services under this part.

141-F Violations. (a) Unprocessed hemp material, including dried flowers and resin, shall not be sold at retail unless authorized by a state hemp dispensing program.

(b) In addition to any other violations of this part, the following acts and omissions by any licensee or authorized representative thereof constitute violations:

(1) Refusal or failure by a licensee or authorized representative to fully cooperate and assist the department with the inspection or sampling process;

(2) Failure to provide any information required or requested by the department for purposes pursuant to this part;

(3) Providing materially false information pertaining to the licensee's cultivation of industrial hemp to the department by any means, including information provided in any application form, report, record, or inspection required or maintained pursuant to this part;

(4) Failure to pay fees assessed by the department for inspection or laboratory analysis costs; or

(5) Any violation of any other state or federal law or regulation regarding industrial hemp.

(c) For any violation of this part, the department may impose civil penalties up to $100 and disciplinary sanctions, including denial or revocation of a license.

141-G Rules. (a) The department shall adopt rules pursuant to chapter 91 for the purposes of this part, which, at a minimum, shall include:

(1) Inspection and sampling requirements of any industrial hemp during growth or after harvest to determine tetrahydrocannabinol levels;

(2) Licensure requirements;

(3) Reporting requirements; provided that pre-planting and movement reporting shall not be required;

(4) A process to create standards for selecting licensees;

(5) Assessment and collection of fees for applications, licenses, license renewals, inspections, and the sampling and testing of industrial hemp;

(6) A procedure for the disposal of industrial hemp crop, plant, plant material, or seed, whether growing or not, found to be in violation of this part, and products derived from those plants;

(7) Penalties for any violation of this part; and

(8) Any other rules and procedures necessary to carry out this part.

(b) The department may adopt and amend interim rules that shall be exempt from chapters 91 and 201M to effectuate the purposes of this part; provided that any interim rules shall only remain in effect until July 1, 2025, or until rules are adopted pursuant to subsection (a) to replace the respective interim rule, whichever occurs sooner.

141-H Authority to cease operations. Notwithstanding any other provision of this part to the contrary, the chairperson shall have the authority to cease operations and issuance or renewal of any license, and terminate the industrial hemp program, in order to effectuate any other federal or state industrial hemp regulatory program; provided that any license that has been issued as of that time shall remain in effect until its expiration.

141-I Industrial hemp special fund; established. (a) There is created in the state treasury a special fund to be designated as the industrial hemp special fund to be administered by the department of agriculture. Moneys deposited in the special fund shall be used to fulfill the purposes of this part and shall include:

(1) Any moneys appropriated by the legislature to the special fund;

(2) Any fees collected by the department in relation to the industrial hemp pilot program or industrial hemp program, except for fees collected for the services provided by temporary inspectors, as specified in section 141-37; and

(3) The interest or return on investments earned from moneys in the special fund.

(b) The department of agriculture may use the moneys in the special fund to carry out the purposes of this part, including hiring employees, specialists, and consultants necessary to complete projects related to the purposes of this part."

SECTION 3. Chapter 712, Hawaii Revised Statutes, is amended by adding two new sections to part IV to be appropriately designated and to read as follows:

"712-   Unauthorized production of hemp. (a) A person shall not produce hemp unless authorized pursuant to a state or federal program.

(b) A person who violates this section shall be subject to a monetary penalty of $        .

712-   Cultivation of industrial hemp as an affirmative defense. (a) In any prosecution for an offense described in sections 712-1247, 712-1248, 712-1249, 712-1249.4, or 712-1249.5, a defendant may assert the affirmative defense that the defendant:

(1) Possessed a valid hemp cultivation license issued by the department of agriculture pursuant to chapter 141;

(2) Planted hemp varieties that are on a list of approved cultivars pursuant to chapter 141; and

(3) The cultivated hemp developed into plants with a delta-9 tetrahydrocannabinol concentration of more than 0.3 per cent on a dry weight basis.

(b) This affirmative defense applies to the cultivation and possession of marijuana, but it does not extend to the distribution of any marijuana."

SECTION 4. Section 141-1, Hawaii Revised Statutes, is amended to read as follows:

"141-1 Duties in general. The department of agriculture shall:

(1) Gather, compile, and tabulate, from time to time, information and statistics concerning:

(A) Entomology and plant pathology: Insects, scales, blights, and diseases injurious or liable to become injurious to trees, plants, or other vegetation, and the ways and means of exterminating pests and diseases already in the State and preventing the introduction of pests and diseases not yet here; and

(B) General agriculture: Fruits, fibres, and useful or ornamental plants and their introduction, development, care, and manufacture or exportation, with a view to introducing, establishing, and fostering new and valuable plants and industries;

(2) Encourage and cooperate with the agricultural extension service and agricultural experiment station of the [University] university of Hawaii and all private persons and organizations doing work of an experimental or educational character coming within the scope of the subject matter of chapters 141, 142, and 144 to 150A, and avoid, as far as practicable, duplicating the work of those persons and organizations;

(3) Enter into contracts, cooperative agreements, or other transactions with any person, agency, or organization, public or private, as may be necessary in the conduct of the department's business and on such terms as the department may deem appropriate; provided that the department shall not obligate any funds of the State, except the funds that have been appropriated to the department. Pursuant to cooperative agreement with any authorized federal agency, employees of the cooperative agency may be designated to carry out, on behalf of the State the same as department personnel, specific duties and responsibilities under chapters 141, 142, 150A, and rules adopted pursuant to those chapters, for the effective prosecution of pest control and animal disease control and the regulation of import into the State and intrastate movement of regulated articles;

(4) Secure copies of the laws of other states, territories, and countries, and other publications germane to the subject matters of chapters 141, 142, and 144 to 150A, and make laws and publications available for public information and consultation;

(5) Provide buildings, grounds, apparatus, and appurtenances necessary for the examination, quarantine, inspection, and fumigation provided for by chapters 141, 142, and 144 to 150A; for the obtaining, propagation, study, and distribution of beneficial insects, growths, and antidotes for the eradication of insects, blights, scales, or diseases injurious to vegetation of value and for the destruction of injurious vegetation; and for carrying out any other purposes of chapters 141, 142, and 144 to 150A;

(6) Formulate and recommend to the governor and legislature additional legislation necessary or desirable for carrying out the purposes of chapters 141, 142, and 144 to 150A;

(7) Publish at the end of each year a report of the expenditures and proceedings of the department and of the results achieved by the department, together with other matters germane to chapters 141, 142, and 144 to 150A and that the department may deem proper;

(8) Administer a program of agricultural planning and development, including the formulation and implementation of general and special plans, including but not limited to the functional plan for agriculture; administer the planning, development, and management of the agricultural park program; plan, construct, operate, and maintain the state irrigation water systems; review, interpret, and make recommendations with respect to public policies and actions relating to agricultural land and water use; assist in research, evaluation, development, enhancement, and expansion of local agricultural industries; and serve as liaison with other public agencies and private organizations for the above purposes. In the foregoing, the department shall act to conserve and protect agricultural lands and irrigation water systems, promote diversified agriculture, increase agricultural self-sufficiency, and ensure the availability of agriculturally suitable lands; [and]

(9) Manage, administer, and exercise control over any public lands, as defined under section 171-2, that are designated important agricultural lands pursuant to section 205-44.5, including but not limited to establishing priorities for the leasing of these public lands within the department's jurisdiction[.]; and

(10) Have the authority to monitor and regulate hemp production, including commercial production and research, pursuant to section 297B of the Agricultural Marketing Act of 1946, as amended, and part    ."

SECTION 5. Section 141-35, Hawaii Revised Statutes, is amended to read as follows:

"[[]141-35[]] Approved seed cultivars[.]; hemp genetics. (a) [Industrial] Only industrial hemp [shall be grown only if it is] on the list of [approved] seed cultivars[.] approved by the board shall be grown. The board may [from time to time] add or remove any seed cultivar from the list if the cultivar is found to be noncompliant with this part.

(b) The list of approved seed cultivars shall include the following:

(1) Industrial hemp seed cultivars that have been certified by the Organisation for Economic Co-operation and Development; [and]

(2) Hawaii varieties of industrial hemp seed cultivars that have been certified by the board[.]; and

(3) Hemp genetics that are shown to meet federal definitions of hemp and originate from any state with a federally approved industrial hemp program."

SECTION 6. Section 141-37, Hawaii Revised Statutes, is amended by amending subsections (b) to (d) to read as follows:

"(b) During the inspection, the licensee or the licensee's authorized representative shall be present at the growing area. The licensee or authorized representative shall provide the [board's] inspector with complete and unrestricted access to all industrial hemp plants and seeds whether growing or harvested; all land, buildings, and other structures used for the cultivation and storage of industrial hemp; and all documents and records pertaining to the licensee's industrial hemp business.

(c) Sampling of industrial hemp plants shall occur according to sampling protocol for industrial hemp set or adopted by the department of agriculture or in the following manner:

(1) Samples of each variety of industrial hemp may be sampled from the growing areas at the [board's] discretion[;] of the chairperson or the chairperson's designee;

(2) Quantitative laboratory determination of the delta-9 tetrahydrocannabinol concentration on a dry weight basis shall be performed according to protocols approved by the chairperson;

(3) A sample test result greater than 0.3 per cent of delta-9 tetrahydrocannabinol concentration or a tetrahydrocannabinol concentration allowed by federal law, whichever is greater, shall be considered conclusive evidence that at least one cannabis plant or part of a plant in the growing area contains a delta-9 tetrahydrocannabinol concentration over the limit allowed for industrial hemp and that the licensee of that growing area is therefore not in compliance with this part. Upon receipt of such a test result, the chairperson may summarily suspend and revoke the license of an industrial hemp licensee. The chairperson shall furnish to the licensee a portion of the violative sample if the licensee requests it within thirty days of notification; and

(4) Test results from an institution of higher education may, at the chairperson's discretion, be accepted in lieu of board sampling.

(d) Licensees shall pay a charge of [$35] $40 per hour per inspector, or fees established pursuant to section 147-102 when the services are performed by temporary inspectors, for actual drive time, mileage, inspection, and sampling time[.], and charges for traveling expenses and extraordinary services when the performance of the services involves unusual costs."

SECTION 7. Section 141-38, Hawaii Revised Statutes, is amended to read as follows:

"[[]141-38[]] Violations. In addition to any other violations of this part, the following acts and omissions by any licensee or authorized representative thereof constitute violations for which civil penalties up to $500 and disciplinary sanctions, including revocation of a license, may be imposed by the chairperson[:] or the chairperson's designee:

(1) Refusal or failure by a licensee or authorized representative to fully cooperate and assist the board with the inspection process;

(2) Failure to provide any information required or requested by the board for purposes pursuant to this part;

(3) Providing false, misleading, or incorrect information pertaining to the licensee's cultivation of industrial hemp to the chairperson or the chairperson's designee by any means, including but not limited to information provided in any application form, report, record, or inspection required or maintained pursuant to this part;

(4) Growing industrial hemp that when tested is shown to have a delta-9 tetrahydrocannabinol concentration greater than 0.3 per cent on a dry weight basis or a tetrahydrocannabinol concentration allowed by federal law, whichever is greater;

(5) Failure to pay fees assessed by the chairperson or the chairperson's designee for inspection or laboratory analysis costs; or

(6) Possessing, outside of a field of lawful cultivation, resin, flowering tops, or leaves that have been removed from the hemp plant; provided that [the]:

(A) The presence of a de minimis amount, or insignificant number, of hemp leaves or flowering tops in hemp bales [that result from the normal and appropriate processing of industrial hemp]; and

(B) Transportation in a department-approved manner of the resin, flowering tops, and leaves of a licensee's crop that passed department-ordered compliance testing to another site for processing,

shall not apply to this paragraph."

SECTION 8. Section 141-39, Hawaii Revised Statutes, is amended to read as follows:

"[[]141-39[]] Profits. The board shall forego any income or profit that licensees lawfully obtain through the disposition of the licensees' industrial hemp crop; provided that the licensee reports to the board, as required by this part:

[(1) Any movement of the licensee's industrial hemp plants, plant materials, or seeds outside the licensed growing area;

(2)] (1) Any sale of or benefit received in exchange for the licensee's industrial hemp plants, plant materials, or seeds; and

[(3)] (2) Any commercial details of [such movement,] the sale[,] or exchange for use by the board to research the marketability and logistical production of industrial hemp in the State."

SECTION 9. Section 141-41, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is created in the state treasury a special fund to be designated as the industrial hemp special fund to be administered by the department of agriculture. Moneys deposited in this special fund shall be used to fulfill the purposes of this part and shall include:

(1) Any moneys appropriated by the legislature to the special fund;

(2) Any fees collected by the department of agriculture in relation to the industrial hemp pilot program[;], except for fees collected for the services provided by temporary inspectors, as specified in section 141-37; and

(3) The interest or return on investments earned from moneys in the special fund."

SECTION 10. Section 147-101, Hawaii Revised Statutes, is amended to read as follows:

"147-101 Certification services revolving fund. There is established a certification services revolving fund for use by the department of agriculture to support certification [or], audit, or inspection services established under parts I, III, IV, VIII, and IX[.], and section 141-37. Moneys in the fund may be expended for materials, salaries, equipment, training, travel, and other costs related to providing certification [or], audit, or inspection services. Notwithstanding sections 147-10, 147-34, 147-64, 147-114 [and], 147-126, and 141-37, moneys derived from the certification [or], audit, or inspection services provided by temporary inspectors employed under this part or from charges for traveling expenses or extraordinary services shall be deposited into the fund."

SECTION 11. Section 147-102, Hawaii Revised Statutes, is amended to read as follows:

"[[]147-102[]] Certification [and], audit, and inspection services. The department of agriculture shall fix, assess, and collect fees for certification [or], audit, or inspection services provided by temporary inspectors employed under this part. The fees shall be in amounts necessary to cover all costs of the administration and provision of the certification [or], audit, or inspection services provided under this part; provided that the department of agriculture shall establish charges for traveling expenses and extraordinary services when the performance of the services involves unusual cost. The fees and charges established by the department of agriculture shall not be subject to chapter 91. The department of agriculture may employ temporary inspectors to assist in providing certification [or], audit, or inspection services under parts I, III, IV, VIII, and IX, and section 141-37, and those temporary inspectors shall be exempt from chapter 76."

SECTION 12. Section 328-15, Hawaii Revised Statutes, is amended to read as follows:

"328-15 Drugs or devices deemed misbranded when; prescriptions excepted, when. A drug or device shall be deemed to be misbranded:

(1) If its labeling is false or misleading in any particular, or if its labeling or packaging fails to conform with the requirements of section 328-19.1.

(2) If in package form, unless it bears a label containing:

(A) The name and place of business of the manufacturer, packer, or distributor; and

(B) An accurate statement of the quantity of the contents in terms of weight, measure, or numerical count, which statement shall be separately and accurately stated in a uniform location upon the principal display panel of the label, provided that under this subparagraph reasonable variations shall be permitted, and exemptions as to small packages shall be allowed, in accordance with rules adopted by the director. An accurate statement of the quantity of the contents in terms of weight, measure, or numerical count shall not be required for any commodity subject to packaging and labeling requirements imposed by the Secretary of Agriculture pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act or the provisions of the eighth paragraph under the heading "Bureau of Animal Industry" of the Act of March 4, 1913 (37 Stat. 832-833; 21 U.S.C. 151-158), commonly known as the Virus-Serum-Toxin Act.

(3) If any word, statement, or other information required by or under authority of this part to appear on the label or labeling is not prominently placed thereon with such conspicuousness (as compared with other words, statements, designs, or devices, in the labeling) and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use.

(4) If it is for use by a person and contains any quantity of the narcotic or hypnotic substance alpha-eucaine, barbituric acid, beta-eucaine, bromal, cannabis[,] (except hemp as defined in section 329-1), cabromal, chloral, coca, cocaine, codeine, heroin, marijuana, morphine, opium, paraldehyde, peyote, or sulphomethane, or any chemical derivative of [such] the substance, which derivative, after investigation, has been found to be and designated as habit forming, by rules adopted by the director under this part, or by regulations issued pursuant to section 502(d) of the Federal Act, unless its label bears the name and quantity or proportion of the substance or derivative and in juxtaposition therewith the statement "Warning--May be habit forming."

(5) (A) If it is a drug unless:

(i) Its label bears, to the exclusion of any other nonproprietary name (except the applicable systematic chemical name or the chemical formula), the established name, as defined in subparagraph (B), of the drug, if [such there be;] any; and in case it is fabricated from two or more ingredients, the established name and quantity of each active ingredient, including the kind and quantity or proportion of any alcohol, and also including, whether active or not, the established name and quantity or proportion of any bromides, ether, chloroform, acetanilid, acetophenetidin, amidopyrine, antipyrine, atropine, hyoscine, hyoscyamine, arsenic, digitalis, glucosides, mercury, ouabain, strophanthin, strychnine, thyroid, or any derivative or preparation of any [such] of those substances, contained therein; provided that the requirement for stating the quantity of the active ingredients, other than the quantity of these specifically named in this paragraph, shall apply only to prescription drugs; and

(ii) For any prescription drug the established name of [such] the drug or ingredient, as the case may be, on [such] the label (and on any labeling on which a name for [such] the drug or ingredient is used) is printed prominently and in type at least half as large as that used thereon for any proprietary name or designation for [such] the drug or ingredient; provided further that to the extent that compliance with the requirements of this subparagraph is impracticable, exemptions shall be allowed under rules adopted by the director.

(B) As used in this paragraph, the term "established name", with respect to a drug or ingredient thereof, means:

(i) The applicable official name designated pursuant to section 508 of the Federal Act;

(ii) If there is no [such] applicable name and the drug, or the ingredient, is an article recognized in an official compendium, then the official title thereof in the compendium; or

(iii) If neither clause (i) nor clause (ii) of this subparagraph applies, then the common or usual name, if any, of [such] the drug or of the ingredient;

provided further that where clause (ii) of this subparagraph applies to an article recognized in the United States Pharmacopoeia, in the United States Pharmacopoeia Dispensing Information, and in the Homeopathic Pharmacopoeia under different official titles, the official title used in the United States Pharmacopoeia shall apply unless it is labeled and offered for sale as a homeopathic drug, in which case the official title used in the Homeopathic Pharmacopoeia shall apply.

(6) Unless its labeling bears[:] adequate:

(A) [Adequate directions] Directions for use; and

(B) [Such adequate warnings] Warnings against use in those pathological conditions or by children where its use may be dangerous to health, or against unsafe dosage or methods or duration of administration or application, in [such] a manner and form[,] as [are] necessary for the protection of users; provided that where any requirement of subparagraph (A), as applied to any drug or device, is not necessary for the protection of the public health, the director shall adopt rules exempting the drug or device from [such] the requirements; provided further that articles exempted under regulations issued under section 502(f) of the Federal Act may also be exempt.

(7) If it purports to be a drug the name of which is recognized in an official compendium, unless it is packaged and labeled as prescribed therein; provided that the method of packaging may be modified with the consent of the director, or if consent is obtained under the Federal Act. 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 with respect to the packaging and labeling 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 to the United States Pharmacopoeia; provided that in the event of inconsistency between the requirements of this paragraph and those of paragraph (5) as to the name by which the drug or its ingredients shall be designated, the requirements of paragraph (5) shall prevail.

(8) If it has been found by the director to be a drug liable to deterioration, unless it is packaged in [such] any form and manner, and its label bears a statement of [such] any precautions, as the rules adopted by the director or regulations issued under the Federal Act require as necessary for the protection of public health. No [such] applicable rule shall be established for any drug recognized in an official compendium until the director shall have informed the appropriate body charged with the revision of the compendium of the need for [such] the packaging or labeling requirements and [such] the body shall have failed within a reasonable time to prescribe [such] the requirements.

(9) (A) If it is a drug and its container is so made, formed, or filled as to be misleading;

(B) If it is an imitation of another drug; or

(C) If it is offered for sale under the name of another drug.

(10) If it is dangerous to health when used in the dosage, or with the frequency or duration prescribed, recommended, or suggested in the labeling thereof.

(11) If it is, purports to be, or is represented as a drug composed wholly or partly of insulin, unless:

(A) It is from a batch with respect to which a certificate or release has been issued pursuant to section 506 of the Federal Act; and

(B) The certificate or release is in effect with respect to the drug.

(12) If it is, purports to be, or is represented as a drug composed wholly or partly of any kind of penicillin, streptomycin, chlortetracycline, chloramphenicol, bacitracin, or any other antibiotic drug, or any derivative thereof, unless:

(A) It is from a batch with respect to which a certificate or release has been issued pursuant to section 507 of the Federal Act; and

(B) The certificate or release is in effect with respect to the drug; provided that this paragraph shall not apply to any drug or class of drugs exempted by regulations promulgated under section 507(c) or (d) of the Federal Act.

For the purpose of this paragraph, the term "antibiotic drug" means any drug intended for use by a person containing any quantity of any chemical substance [which] that is produced by a microorganism and which has the capacity to inhibit or destroy microorganisms in dilute solution (including the chemically synthesized equivalent of [any such] the substance).

(13) If it is a color additive, the intended use of which in or on drugs is for the purpose of coloring only, unless its packaging and labeling are in conformity with the packaging and labeling requirements applicable to [such] a color additive prescribed under section 328-13(b).

(14) In the case of any prescription drug distributed or offered for sale in this State, unless the manufacturer, packer, or distributor thereof includes in all advertisements and other descriptive printed matter issued or caused to be issued by the manufacturer, packer, or distributor with respect to that drug a true statement of:

(A) The established name, as defined in paragraph (5)(B), printed prominently and in type at least half as large as that used for any trade or brand name thereof;

(B) The formula showing quantitatively each ingredient of the drug to the extent required for labels under section 502(e) of the Federal Act; and

(C) [Such] Any other information in brief summary relating to side effects, contra-indications, and effectiveness as shall be required in rules adopted by the director.

(15) If a trademark, trade name, or other identifying mark, imprint, or device of another or any likeness of the foregoing has been placed thereon or upon its container with intent to defraud.

(16) Drugs and devices [which] that are, in accordance with the practice of the trade, to be processed, labeled, or repacked in substantial quantities at establishments other than those where originally processed or packed shall be exempt from any labeling or packaging requirements of this part; provided that [such] those drugs and devices are being delivered, manufactured, processed, labeled, repacked, or otherwise held in compliance with rules adopted by the director.

(17) If it has met or exceeded the expiration date established by the manufacturer or principal labeler."

SECTION 13. Section 329-1, Hawaii Revised Statutes, is amended as follows:

1. By adding a new definition to be appropriately inserted and to read:

""Hemp" means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 per cent on a dry weight basis."

2. By amending the definition of "marijuana" to read:

""Marijuana" means all parts of the plant (genus) Cannabis whether growing or not; the seeds thereof, the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. [It]

"Marijuana" does not include [the]:

(1) Hemp; or

(2) The mature stalks of the plant[,] (genus) Cannabis, fiber produced from the stalks, oil, or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant [which] that is incapable of germination."

SECTION 14. Section 329-14, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

"(g) Any of the following cannabinoids, their salts, isomers, and salts of isomers, unless specifically excepted, whenever the existence of these salts, isomers, and salts of isomers is possible within the specific chemical designation:

(1) Tetrahydrocannabinols; meaning tetrahydrocannabinols naturally contained in a plant of the genus Cannabis (cannabis plant), as well as synthetic equivalents of the substances contained in the plant, or in the resinous extractives of Cannabis, sp. or synthetic substances, derivatives, and their isomers with similar chemical structure and pharmacological activity to those substances contained in the plant, such as the following: Delta 1 cis or trans tetrahydrocannabinol, and their optical isomers; Delta 6 cis or trans tetrahydrocannabinol, and their optical isomers; and Delta 3,4 cis or trans-tetrahydrocannabinol, and its optical isomers (since nomenclature of these substances is not internationally standardized, compounds of these structures, regardless of numerical designation of atomic positions, are covered); provided that tetrahydrocannabinols under this subsection shall exclude tetrahydrocannabinols in hemp;

(2) Naphthoylindoles; meaning any compound containing a 3-(1-naphthoyl)indole structure with substitution at the nitrogen atom of the indole ring by a alkyl, haloalkyl, alkenyl, cycloalkylmethyl,cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl or 2-(4-morpholinyl)ethyl group, whether or not further substituted in the indole ring to any extent and whether or not substituted in the naphthyl ring to any extent;

(3) Naphthylmethylindoles; meaning any compound containing a 1H-indol-3-yl-(1-naphthyl) methane structure with substitution at the nitrogen atom of the indole ring by a alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl) methyl or 2-(4-morpholinyl) ethyl group whether or not further substituted in the indole ring to any extent and whether or not substituted in the naphthyl ring to any extent;

(4) Naphthoylpyrroles; meaning any compound containing a 3-(1-naphthoyl)pyrrole structure with substitution at the nitrogen atom of the pyrrole ring by a alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl or 2-(4-morpholinyl) ethyl group whether or not further substituted in the pyrrole ring to any extent, whether or not substituted in the naphthyl ring to any extent;

(5) Naphthylmethylindenes; meaning any compound containing a naphthylideneindene structure with substitution at the 3-position of the indene ring by a alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl) methyl or 2-(4-morpholinyl) ethyl group whether or not further substituted in the indene ring to any extent, whether or not substituted in the naphthyl ring to any extent;

(6) Phenylacetylindoles; meaning any compound containing a 3-phenylacetylindole structure with substitution at the nitrogen atom of the indole ring by a alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl) methyl or 2-(4-morpholinyl) ethyl group whether or not further substituted in the indole ring to any extent, whether or not substituted in the phenyl ring to any extent;

(7) Cyclohexylphenols; meaning any compound containing a 2-(3-hydroxycyclohexyl) phenol structure with substitution at the 5-position of the phenolic ring by a alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl) methyl or 2-(4-morpholinyl) ethyl group whether or not substituted in the cyclohexyl ring to any extent;

(8) Benzoylindoles; meaning any compound containing a 3-(benzoyl) indole structure with substitution at the nitrogen atom of the indole ring by a alkyl, haloalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl) methyl, or 2-(4-morpholinyl) ethyl group whether or not further substituted in the indole ring to any extent and whether or not substituted in the phenyl ring to any extent;

(9) 2,3-Dihydro-5-methyl-3-(4-morpholinylmethyl) pyrrolo[1,2,3-de]-1, 4-benzoxazin-6-yl]-1-napthalenylmethanone (another trade name is WIN 55,212-2);

(10) (6a,10a)-9-(hydroxymethyl)-6, 6-dimethyl-3-(2-methyloctan-2-yl)-6a,7,10,10a-tetrahydrobenzo[c]chromen-1-ol (Other trade names are: HU-210/HU-211);

(11) Tetramethylcyclopropanoylindoles; meaning any compound containing a 3-tetramethylcyclopropanoylindole structure with substitution at the nitrogen atom of the indole ring by an alkyl, haloalkyl, cyanoalkyl, alkenyl, cycloalkylmethyl, cycloalkylethyl, 1-(N-methyl-2-piperidinyl)methyl, 2-(4-morpholinyl)ethyl, 1-(N-methyl-2-pyrrolidinyl)methyl, 1-(N-methyl-3-morpholinyl)methyl, or tetrahydropyranylmethyl group, whether or not further substituted in the indole ring to any extent and whether or not substituted in the tetramethylcyclopropyl ring to any extent;

(12) N-(1-adamantyl)-1-pentyl-1H-indazole-3-carboxamide, its optical, positional, and geometric isomers, salts, and salts of isomers (Other names: APINACA, AKB48);

(13) Quinolin-8-yl 1-pentyl-1H-indole-3-carboxylate, its optical, positional, and geometric isomers, salts, and salts of isomers (Other names: PB-22; QUPIC);

(14) Quinolin-8-yl 1-(5fluoropentyl)-1H-indole-3-carboxylate, its optical, positional, and geometric isomers, salts, and salts of isomers (Other names: 5-fluoro-PB-22; 5F-PB-22);

(15) N-(1-amino-3-methyl-1-oxobutan-2-yl)-1-(4-fluorobenzyl)-1H-indazole-3-carboxamide, its optical, positional, and geometric isomers, salts, and salts of isomers (Other names: AB-FUBINACA);

(16) N-(1-amino-3,3-dimethyl-1-oxobutan-2-yl)-1-pentyl-1H-indazole-3-carboxamide, its optical, positional, and geometric isomers, salts, and salts of isomers (Other names: ADB-PINACA);

(17) N-(1-amino-3-methyl-1-oxobutan-2-yl)-1-(cyclohexylmethyl)-1H-indazole-3-carboxamide, its optical, positional, and geometric isomers, salts, and salts of isomers (Other names: AB-CHMINACA);

(18) N-(1-amino-3-methyl-1-oxobutan-2-yl)-1-pentyl-1H-indazole-3-carboxamide, and geometric isomers, salts, and salts of isomers (Other names: AB-PINACA);

(19) [1-(5-fluoropentyl)-1H-indazol-3-yl](naphthalen-1-yl)methanone, and geometric isomers, salts, and salts of isomers (Other names: THJ-2201);

(20) Methyl (1-(4-fluorobenzyl)-1 H-indazole-3-carbonyl)-L-valinate, and geometric isomers, salts, and salts of isomers (Other names: FUB-AMB);

(21) (S)-methyl 2-(1-(5-fluoropentyl)-1H-indazole-3-carboxamido)-3-methylbutanoate, and geometric isomers, salts, and salts of isomers (Other names: 5-fluoro-AMB, 5-fluoro-AMP);

(22) N-((3s,5s,7s)-adamantan-1-yl)-1-(5-fluoropentyl)-1H-indazole-3-carboxamide, and geometric isomers, salts, and salts of isomers (Other names: AKB48 N-(5-fluoropentyl) analog, 5F-AKB48, APINACA 5-fluoropentyl analog, 5F-APINACA);

(23) N-adamantyl-1-fluoropentylindole-3-Carboxamide, and geometric isomers, salts, and salts of isomers (Other names: STS-135, 5F-APICA; 5-fluoro-APICA);

(24) Naphthalen-1-yl 1-(5-fluoropentyl)-1H-indole-3-carboxylate, and geometric isomers, salts, and salts of isomers (Other names: NM2201);

(25) N-(1-amino-3,3-dimethyl-1-oxobutan-2-yl)-1-(cyclohexylmethyl)-1H-indazole-3-carboxamide, and geometric isomers, salts, and salts of isomers (Other names: MAB-CHMINACA and ADB-CHMINACA);

(26) Methyl 2-[1-(5-fluoropentyl)-1H-indazole-3-carboxamido]-3,3-dimethylbutanoate (Other names: 5F-ADB, 5-flouro-ADB, and 5F-MDMB-PINACA), its optical, positional, and geometric isomers, salts, and salts of isomers; and

(27) 1-(4-cyanobutyl)-N-(2-phenylpropan-2-yl)indazole-3-carboxamide (CUMYL-4CN-BINACA), its optical, positional, and geometric isomers, salts, and salts of isomers; also known as SGT-78, 4-CN-CUMYL-BINACA; CUMYL-CB-PINACA; CUMYL-CYBINACA; 4-cyano CUMYL-BUTINACA."

SECTION 15. Section 712-1240, Hawaii Revised Statutes, is amended as follows:

1. By adding two new definitions to be appropriately inserted and to read:

""Hemp" shall have the same meaning as in section 329-1.

"Tetrahydrocannabinol" means tetrahydrocannabinol naturally contained in a plant of the genus Cannabis (cannabis plant), as well as synthetic equivalents of the substances contained in the plant, or in the resinous extractives of Cannabis, sp. or synthetic substances, derivatives, and their isomers with similar chemical structure and pharmacological activity to those substances contained in the plant, such as the following: Delta 1 cis or trans tetrahydrocannabinol, and their optical isomers; Delta 6 cis or trans tetrahydrocannabinol, and their optical isomers; and Delta 3,4 cis or trans-tetrahydrocannabinol, and its optical isomers (since nomenclature of these substances is not internationally standardized, compounds of these structures, regardless of numerical designation of atomic positions, are covered); provided that tetrahydrocannabinol shall exclude tetrahydrocannabinol in hemp."

2. By amending the definition of "marijuana" to read:

""Marijuana" means any part of the plant (genus) cannabis, whether growing or not, including the seeds and the resin, and every alkaloid, salt, derivative, preparation, compound, or mixture of the plant, its seeds or resin[, except that, as used herein, "marijuana"]. "Marijuana" does not include hemp, hashish, tetrahydrocannabinol, and any alkaloid, salt, derivative, preparation, compound, or mixture, whether natural or synthesized, of tetrahydrocannabinol."

SECTION 16. (a) The chairperson of the board of agriculture shall prepare and submit a proposed state plan to monitor and regulate hemp production in the State pursuant to section 297B of the Agricultural Marketing Act of 1946, as amended, to the federal Secretary of Agriculture within thirty days after the federal Secretary of Agriculture announces guidelines for state plans. The chairperson shall also submit a copy of the proposed state plan to the governor, the president of the senate, and the speaker of the house of representatives.

(b) The chairperson of the board of agriculture shall submit reports on a      basis to the governor, the president of the senate, and the speaker of the house of representatives concerning the status of the federal Secretary of Agriculture's pending approval of the state plan until the state plan is approved.

(c) The chairperson of the board of agriculture shall submit a report on the implementation of the state plan to the legislature no later than twenty days prior to the convening of the regular session of 2020. The report shall include any proposed legislation to facilitate the cultivation, monitoring, and regulation of hemp production in the State.

SECTION 17. There is appropriated out of the general revenues of the State of Hawaii the sum of $250,000 or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 to be deposited into the industrial hemp special fund established pursuant to section 141-I, Hawaii Revised Statutes.

SECTION 18. There is appropriated out of the industrial hemp special fund established pursuant to section 141-I, Hawaii Revised Statutes, the sum of $250,000 or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 to be allocated as follows:

(1) $         for the establishment of one full-time equivalent (1.0 FTE) program coordinator position;

(2) $         for the establishment of two full-time equivalent (2.0 FTE) specialist positions; and

(3) $         for administrative costs of the industrial hemp program.

The sums appropriated shall be expended by the department of agriculture for the purposes of this Act.

SECTION 19. Upon the repeal of the industrial hemp pilot program pursuant to Act 228, Session Laws of Hawaii 2016, all unencumbered funds remaining in the industrial hemp special fund established pursuant to 141-41, Hawaii Revised Statutes, shall be deposited into the industrial hemp special fund established pursuant to 141-I, Hawaii Revised Statutes.

SECTION 20. 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 21. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 22. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 23. This Act shall take effect on September 22, 2050.



 

Report Title:

Industrial Hemp; Permanent Program; Controlled Substances; Legalization; Hemp Genetics; State Plan; Appropriations

 

Description:

Requires the Department of Agriculture to establish a permanent industrial hemp program. Imposes a monetary penalty on any person who produces hemp without authorization from a state or federal program. Establishes an affirmative defense to criminal penalties for the cultivation of industrial hemp. Authorizes licensees to utilize hemp genetics from other states if certain requirements are met. Authorizes the use of temporary inspectors to perform industrial hemp inspections. Exempts certain persons who transport and move certain hemp plant materials from certain penalties and reporting requirements. Amends definitions of "marijuana" in state law to clarify that hemp is not marijuana. Requires the Chairperson of the Board of Agriculture to prepare and submit a proposed state plan to monitor and regulate hemp production, including commercial production and research, to the federal Secretary of Agriculture pursuant to section 297B of the Agricultural Marketing Act of 1946, as amended. Requires reports to the Governor and Legislature. Establishes a new industrial hemp special fund. Appropriates funds. (SB1353 HD2)

 

 

 

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