THE SENATE

S.B. NO.

86

THIRTY-FIRST LEGISLATURE, 2021

S.D. 3

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO HAWAIIAN AFFAIRS.

 

 

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

 


     Section 1.  The legislature finds that article XII, section 2, of the Hawaii State Constitution states in part:  "The State and its people do further agree and declare that the spirit of the Hawaiian Homes Commission Act looking to the continuance of the Hawaiian homes projects for the further rehabilitation of the Hawaiian race shall be faithfully carried out".  Affording the opportunity to utilize lands designated for agriculture by the department of Hawaiian home lands would allow for increased revenue for both beneficiaries and the department of Hawaiian home lands.

     The purpose of this Act is to:

     (1)  Increase the number of medical cannabis dispensaries in the State by requiring the department of health to issue eight dispensary licenses to the department of Hawaiian home lands;

     (2)  Require the department of Hawaiian home lands to study the feasibility and revenue to be generated by medical cannabis dispensaries, limited gaming, and other potential revenue-generating options on Hawaiian home lands.

     Section 2.  Chapter 329D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§329D-     Medical cannabis dispensaries on Hawaiian home lands.  (a)  The department shall issue to the department of Hawaiian home lands eight dispensary licenses; provided that two dispensary licenses shall be issued for the city and county of Honolulu; three dispensary licenses shall be issued for the county of Hawaii with one for east Hawaii, one for north Hawaii, and one for west Hawaii; two dispensary licenses shall be issued for the county of Maui, one for Maui and one for Molokai; and one dispensary license shall be issued for the county of Kauai.

     (b)  The department shall advise and assist the department of Hawaiian home lands in establishing a license application procedure and verification process in accordance with section 329D-4 and the selection process in accordance with section 329D-5 to include the criteria of section 329D-7(3).

     (c)  Each application for a dispensary license shall include both an individual applicant and an applying entity.  The application shall be submitted to the department of Hawaiian home lands and shall include supporting documentation to establish:

     (1)  That the individual applicant:

          (A)  Is native Hawaiian, as defined in section 201 of the Hawaiian Homes Commission Act, 1920;

          (B)  Has been a legal resident of the State for not less than five years preceding the date of application;

          (C)  Is not less than eighteen years of age; and

          (D)  Has had no felony convictions;

     (2)  That the applying entity:

          (A)  Has been organized under the laws of the State;

          (B)  Has a Hawaii tax identification number;

          (C)  Has a department of commerce and consumer affairs business registration division number and suffix;

          (D)  Has a federal employer identification number;

          (E)  Is not less than fifty-one per cent held by native Hawaiians, as defined in section 201 of the Hawaiian Homes Commission Act, 1920, or entities wholly controlled by native Hawaiians, as defined in section 201 of the Hawaiian Homes Commission Act, 1920, 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 $1,000,000 for the license applied for, plus not less than $100,000 for each retail dispensing location allowed under the license applied for, in the form of bank statements or escrow accounts, and that the financial resources have been under the control of the applying entity for not less than ninety days immediately preceding the date the application was submitted; and

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

A dispensary license shall not be sold or otherwise transferred from one person to another person.  No person may be granted more than one dispensary license.

     (d)  Medical cannabis production centers and dispensaries on Hawaiian home lands shall not be subject to county zoning, ordinances, rules, or regulations."

     SECTION 3.  The department of Hawaiian home lands shall conduct a study on the feasibility and revenue to be generated by:

     (1)  Medical cannabis dispensaries on Hawaiian home lands;

     (2)  Limited gaming, in the form of a single gaming facility on Hawaiian home lands designated for commercial use; and

     (3)  Other potential revenue-generating options on Hawaiian home lands,

to address historic funding shortfalls exacerbated by the economic shutdown from the coronavirus disease 2019 (COVID-19) pandemic.

     (b)  The study shall consider public-private partnership options, cost estimates, and other implementation requirements.

     (c)  The department shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2022.

     SECTION 4.  The provisions of the amendments made by this Act to the Hawaiian Homes Commission Act, 1920, as amended, are declared to be severable, and if any section, sentence, clause, or phrase, or the application thereof to any person or circumstances is held ineffective because there is a requirement of having the consent of the United States to take effect, then that portion only shall take effect upon the granting of consent by the United States and effectiveness of the remainder of these amendments or the application thereof shall not be affected.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2050.


 


 

Report Title:

DHHL; DOH; Medical Cannabis; Dispensaries; Gaming; Study

 

Description:

Requires the Department of Health to issue medical cannabis dispensary licenses to the Department of Hawaiian Home Lands, allowing for increased revenue for beneficiaries.  Requires the Department of Hawaiian Home Lands to study the feasibility and revenue to be generated by medical cannabis dispensaries, limited gaming, and other potential revenue-generating options on Hawaiian home lands.  Effective 7/1/2050.  (SD3)

 

 

 

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