THE SENATE

S.B. NO.

444

THIRTY-SECOND LEGISLATURE, 2023

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to cannabis.

 

 

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

 


PART I

SECTION 1. The purpose of this part is to amend the State's medical cannabis dispensary system law to:

(1) Include cannabis propagules and cuttings in the definition of the term "cannabis", thereby authorizing dispensaries to distribute medical cannabis propagules and cuttings;

(2) Authorize only those persons who may cultivate medical cannabis to purchase the propagules and cuttings; and

(3) Impose quantity limits and quality requirements on the distributed propagules and cuttings.

SECTION 2. Section 329D-1, Hawaii Revised Statutes, is amended as follows:

1. By inserting two new definitions to read:

""Cutting" means the stem of a cannabis plant that is taken or cut off for the purpose of being rooted and grown into a new cannabis plant.

"Propagule" means any part of a cannabis plant that can be used to grow a new cannabis plant."

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

""Cannabis" shall have the same meaning as in section 329‑121. "Cannabis" includes propagules and cuttings."

SECTION 3. Section 329D-13, Hawaii Revised Statutes, is amended to read as follows:

"329D-13 Dispensing limits. (a) A qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient shall be allowed to purchase no more than four ounces of cannabis, not including propagules and cuttings, within a consecutive period of fifteen days, or no more than eight ounces of cannabis, not including propagules and cuttings, within a consecutive period of thirty days.

(b) A qualifying patient[, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient may purchase cannabis] or primary caregiver authorized to cultivate cannabis pursuant to sections 329-122 and 329‑130(a) shall be allowed to purchase no more than five propagules or cuttings within a consecutive period of fifteen days, or no more than ten propagules or cuttings within a consecutive period of thirty days; provided that:

(1) Propagules or cuttings sold by the licensee shall have undergone laboratory-based testing for residual pesticides and heavy metals, and shall not be distributed if pesticides or heavy metals are detected; and

(2) This subsection shall not apply to a qualifying out-of-state patient or a caregiver of a qualifying out-of-state patient.

(c) Purchases under subsections (a) and (b) may be made from any dispensary location in the State, subject to the limits and restrictions set forth in [subsection] subsections (a)[.] and (b).

[(c) Beginning on January 1, 2018, this section] (d) Subsections (a) and (c) may apply to qualifying out-of-state patients from other states, territories of the United States, or the District of Columbia[;] attempting to purchase cannabis, not including propagules and cuttings, provided that the patient meets the registration requirements of section 329-123."

PART II

SECTION 4. The purpose of this part is to authorize the department of health to approve under certain conditions in-vehicle receipt of medical cannabis and manufactured cannabis products on or near the premises of dispensaries.

SECTION 5. Section 329D-6, Hawaii Revised Statutes, is amended by amending subsection (n) to read as follows:

"(n) A dispensary shall [be prohibited from] not make an off-premises delivery of cannabis or manufactured cannabis products to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient[.], unless authorized by the department and:

(1) The dispensary receives a pickup order by telephone or electronic means from the qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of the qualifying out-of-state patient;

(2) The qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of the qualifying out-of-state patient arrives in a vehicle, provides the license number for the vehicle, and notifies the dispensary upon arrival at the dispensary in a designated area for pickup;

(3) The area designated for pickup:

(A) Is no further than one hundred feet from the main entry of a secured retail location;

(B) Complies with subsection (f) and section 329D‑7(6);

(C) Is monitored by a video recording system that:

(i) Is under the control of the dispensary; and

(ii) Regularly records and stores video of pickup transactions, including vehicles, vehicle license plates, and persons receiving the medical cannabis or manufactured cannabis product;

(4) Before providing the medical cannabis or manufactured cannabis product, the dispensary confirms the identity of the qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of the qualifying out-of-state patient by:

(A) Verifying that the license plate number of the vehicle matches the number stated by the qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of the qualifying out-of-state patient at the time the order was placed;

(B) Reviewing valid photographic identification in the form of a state identification card, driver's license, or passport;

(C) Requiring the person attempting to receive the order to sign an acknowledgment of receipt; and

(D) Comparing the signature provided pursuant to subparagraph (C) with the signature on the photographic identification described in subparagraph (B) or another reliable signature sample; and

(5) The amount of medical cannabis or manufactured cannabis products received do not exceed the limitations established by the department."

PART III

SECTION 6. The purpose of this part is to authorize a non-registered qualifying patient to have immediate access to the medical use of cannabis for a period of one year from the date of the issuance of a medical provider's certification letter; provided that:

(1) The medical provider is in full compliance with all requirements imposed by the department of health pursuant to part IX of chapter 329, Hawaii Revised Statutes;

(2) The patient holds the State, the department of health, and dispensaries harmless regarding any consequences the patient may endure for using cannabis before the receipt of a registry card;

(3) The patient does not possess cannabis in an amount that exceeds half of the amount that a registered qualifying patient may possess; and

(4) The patient submits to certain other requirements.

SECTION 7. Chapter 329, Hawaii Revised Statutes, is amended by adding a new section to part IX to be appropriately designated and to read as follows:

"329-   Non-registered qualifying patients. Notwithstanding section 329-123, a qualifying patient who has not been issued a registry card by the department of health pursuant to section 329-123(a) may engage in the medical use of cannabis as a non-registered qualifying patient; provided that:

(1) A physician or an advanced practice registered nurse has issued a written certification for the patient on a form designated by the department of health pursuant to section 329‑123(a); provided that:

(A) The physician has a bona fide physician-patient relationship with the non-registered qualifying patient or the advanced practice registered nurse has a bona fide advanced practice registered nurse-patient relationship with the patient; and

(B) The physician or advanced practice registered nurse is in full compliance with all requirements imposed by the department of health pursuant to this part;

(2) The non-registered qualifying patient has submitted to the dispensary from which the patient will obtain cannabis:

(A) Consent forms, designated by the department of health and signed by the patient, that authorize the department of health and the dispensary to obtain information from the patient's physician or advanced practice registered nurse to verify the information provided in the written certification issued for the patient; and

(B) Waiver forms, designated by the department of health and signed by the patient, which establish that the patient agrees to hold the department of health, the State, and the dispensary harmless with respect to any legal, health, or other consequences that the patient may endure as a result of the patient's possession or medical use of cannabis before the department of health has issued the patient a registry card;

(3) The amount of cannabis possessed by the non-registered qualifying patient does not exceed an adequate supply; provided further that, notwithstanding section 329-121 or any other law to the contrary, an adequate supply for the non-registered qualifying patient shall at no time exceed five cannabis plants, whether immature or mature, and two ounces of usable cannabis; and

(4) The non-registered qualifying patient shall cease to be qualified to use and possess medical cannabis under this section one year after the date of the issuance of the written certification described in paragraph (1), unless the department of health has issued a registry card to the patient, and the card has not expired."

SECTION 8. Section 329-122, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Notwithstanding any law to the contrary, the medical use of cannabis by a qualifying patient shall be permitted only [if:] under the following circumstances:

(1) The qualifying patient has been diagnosed by a physician or advanced practice registered nurse as having a debilitating medical condition;

(2) The qualifying patient's physician or advanced practice registered nurse has certified in writing that, in the physician's or advanced practice registered nurse's professional opinion, the potential benefits of the medical use of cannabis would likely outweigh the health risks for the particular qualifying patient; [and]

(3) The amount of cannabis possessed by the qualifying patient does not exceed an adequate supply[.]; provided that, notwithstanding section 329-121 or any other law to the contrary, an adequate supply for a non-registered qualifying patient described in section 329-    shall at no time exceed five cannabis plants, whether immature or mature, and two ounces of usable cannabis; and

(4) If the qualifying patient is a non-registered qualifying patient as described in section 329-   , the non-registered qualifying patient shall fully comply with that section."

PART IV

SECTION 9. The purpose of this part is to provide senior citizens with greater access to the state medical cannabis program.

SECTION 10. Section 329-121, Hawaii Revised Statutes, is amended by amending the definition of "qualifying patient" to read as follows:

""Qualifying patient" means a person who has been diagnosed by a physician or advanced practice registered nurse as having a debilitating medical condition[.] or who has reached the age of sixty-five.

SECTION 11. Section 329-122, Hawaii Revised Statutes, is amended to read as follows:

"329-122 Medical use of cannabis; conditions of use. (a) Notwithstanding any law to the contrary, the medical use of cannabis by a qualifying patient shall be permitted only if:

(1) The qualifying patient has been diagnosed by a physician or advanced practice registered nurse as having a debilitating medical condition;

(2) The qualifying patient's physician or advanced practice registered nurse has certified in writing that, in the physician's or advanced practice registered nurse's professional opinion, the potential benefits of the medical use of cannabis would likely outweigh the health risks for the particular qualifying patient; and

(3) The amount of cannabis possessed by the qualifying patient does not exceed an adequate supply.

(b) Subsection (a) shall not apply to a qualifying patient under the age of eighteen years, unless:

(1) The qualifying patient's physician or advanced practice registered nurse has explained the potential risks and benefits of the medical use of cannabis to the qualifying patient and to a parent, guardian, or person having legal custody of the qualifying patient; and

(2) A parent, guardian, or person having legal custody consents in writing to:

(A) Allow the qualifying patient's medical use of cannabis;

(B) Serve as the qualifying patient's primary caregiver; and

(C) Control the acquisition of the cannabis, the dosage, and the frequency of the medical use of cannabis by the qualifying patient.

(c) The requirements in paragraphs (1) and (2) of subsection (a) hall not apply to a qualifying patient aged sixty-five or older.

[(c)] (d) Notwithstanding any law to the contrary, the medical use of cannabis within the State by a qualifying out-of-state patient aged eighteen years or older legally authorized to use cannabis for medical purposes in another state, a United States territory, or the District of Columbia shall be permitted only if the qualifying out-of-state patient:

(1) Provides to the department of health a valid medical use of cannabis card with an explicit expiration date that has not yet passed from the issuing jurisdiction and a valid photographic identification card or driver's license issued by the same jurisdiction;

(2) Attests under penalty of law pursuant to section 710‑1063 that the condition for which the qualifying out-of-state patient is legally authorized to use cannabis for medical purposes is a debilitating medical condition as defined in section 329-121;

(3) Provides consent for the department of health to obtain information from the qualifying out-of-state patient's certifying medical provider and from the entity that issued the medical cannabis card for the purpose of allowing the department of health to verify the information provided in the registration process;

(4) Pays the required fee for out-of-state registration to use cannabis for medical purposes;

(5) Registers with the department of health pursuant to section 329-123.5 to use cannabis for medical purposes;

(6) Receives a medical cannabis registry card from the department of health; and

(7) Abides by all laws relating to the medical use of cannabis, including not possessing an amount of cannabis that exceeds an adequate supply.

[(d)] (e) Notwithstanding any law to the contrary, the medical use of cannabis by a qualifying out-of-state patient under eighteen years of age shall only be permitted if:

(1) The caregiver of the qualifying out-of-state patient provides the information required pursuant to subsection [(c);] (d); and

(2) The caregiver of the qualifying out-of-state patient consents in writing to:

(A) Allow the qualifying out-of-state patient's medical use of cannabis;

(B) Undertake the responsibility for managing the well-being of the qualifying out-of-state patient who is under eighteen years of age with respect to the medical use of cannabis; and

(C) Control the acquisition of the cannabis, the dosage, and the frequency of the medical use of cannabis by the qualifying out-of-state patient who is under eighteen years of age.

[(e)] (f) The authorization for the medical use of cannabis in this section shall not apply to:

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

(2) The medical use of cannabis:

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

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

(C) On any school grounds;

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

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

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

[(f)] (g) For the purposes of this section, "transport" means the transportation of cannabis, usable cannabis, or any manufactured cannabis product between:

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

(2) A qualifying out-of-state patient under eighteen years of age and the caregiver of a qualifying out-of-state patient;

(3) The production centers and the retail dispensing locations under a dispensary licensee's license;

(4) Dispensaries, to the extent authorized by section 329D-6(r); or

(5) A production center, retail dispensing location, qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient and a certified laboratory for the purpose of laboratory testing; provided that a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient may only transport up to one gram of cannabis per test to a certified laboratory for laboratory testing and may only transport the product if the qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient:

(A) Secures an appointment for testing at a certified laboratory;

(B) Obtains confirmation, which may be electronic, that includes the specific time and date of the appointment and a detailed description of the product and amount to be transported to the certified laboratory for the appointment; and

(C) Has the confirmation, which may be electronic, available during transport.

For purposes of interisland transportation, "transport" of cannabis, usable cannabis, or any manufactured cannabis product, by any means is allowable only between dispensaries to the extent authorized by section 329D-6(r) and between a production center or retail dispensing location and a certified laboratory for the sole purpose of laboratory testing pursuant to section 329D-8, as permitted under section 329D-6(m) and subject to section 329D-6(j), and with the understanding that state law and its protections do not apply outside of the jurisdictional limits of the State. Allowable transport pursuant to this section does not include interisland transportation by any means or for any purpose between a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient and any other entity or individual, including an individual who is a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient."

SECTION 12. Section 329D-7, Hawaii Revised Statutes, is amended to read as follows:

"329D-7 Medical cannabis dispensary rules. The department shall establish standards with respect to:

(1) The number of medical cannabis dispensaries that shall be permitted to operate in the State;

(2) A fee structure for:

(A) The submission of applications and renewals of licenses to dispensaries; provided that the department shall consider the market conditions in each county in determining the license renewal fee amounts;

(B) The submission of applications for each additional production center; and

(C) Dispensary-to-dispensary sales authorized by section 329D-6(r);

(3) Criteria and procedures for the consideration and selection, based on merit, of applications for licensure of dispensaries; provided that the criteria shall include but not be limited to an applicant's:

(A) Ability to operate a business;

(B) Financial stability and access to financial resources; provided that applicants for medical cannabis dispensary licenses shall provide documentation that demonstrates control of not less than $1,000,000 in the form of escrow accounts, letters of credit, surety bonds, bank statements, lines of credit or the equivalent to begin operating the dispensary;

(C) Ability to comply with the security requirements developed pursuant to paragraph (6);

(D) Capacity to meet the needs of qualifying patients and qualifying out-of-state patients;

(E) Ability to comply with criminal background check requirements developed pursuant to paragraph (8); and

(F) Ability to comply with inventory controls developed pursuant to paragraph (13);

(4) Specific requirements regarding annual audits and reports required from each production center and dispensary licensed pursuant to this chapter;

(5) Procedures for announced and unannounced inspections by the department or its agents of production centers and dispensaries licensed pursuant to this chapter; provided that inspections for license renewals shall be unannounced;

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

(A) For production centers:

(i) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;

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

(iii) An alarm system; and

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

(B) For retail dispensing locations:

(i) Presentation of a valid government-issued photo identification and a valid identification as issued by the department pursuant to section 329-123 by a qualifying patient or caregiver, or section 329-123.5 by a qualifying out-of-state patient or caregiver of a qualifying out-of-state patient, upon entering the premises;

(ii) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;

(iii) An alarm system;

(iv) Exterior lighting; and

(v) Other reasonable security measures as deemed necessary by the department;

(7) Security requirements for the transportation of cannabis and manufactured cannabis products between production centers and retail dispensing locations and between a production center, retail dispensing location, qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient and a certified laboratory, pursuant to section [329‑122(f);] 329‑122(g);

(8) Standards and criminal background checks to ensure the reputable and responsible character and fitness of all license applicants, licensees, employees, subcontractors and their employees, and prospective employees of medical cannabis dispensaries to operate a dispensary; provided that the standards, at a minimum, shall exclude from licensure or employment any person convicted of any felony;

(9) The training and certification of operators and employees of production centers and dispensaries;

(10) The types of manufactured cannabis products that dispensaries shall be authorized to manufacture and sell pursuant to sections 329D-9 and 329D-10;

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

(12) The quantities of cannabis and manufactured cannabis products that a dispensary may sell or provide to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient; provided that no dispensary shall sell or provide to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient any combination of cannabis and manufactured products that:

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

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

(13) Dispensary and production center inventory controls to prevent the unauthorized diversion of cannabis or manufactured cannabis products or the distribution of cannabis or manufactured cannabis products to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient in quantities that exceed limits established by this chapter; provided that the controls, at a minimum, shall include:

(A) A computer software tracking system as specified in section 329D-6(j) and (k); and

(B) Product packaging standards sufficient to allow law enforcement personnel to reasonably determine the contents of an unopened package;

(14) Limitation to the size or format of signs placed outside a retail dispensing location or production center; provided that the signage limitations, at a minimum, shall comply with section 329D-6(o)(2) and shall not include the image of a cartoon character or other design intended to appeal to children;

(15) The disposal or destruction of unwanted or unused cannabis and manufactured cannabis products;

(16) The enforcement of the following prohibitions against:

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

(B) The sale or provision of cannabis or manufactured cannabis products to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient in quantities that exceed limits established by this chapter;

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

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

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

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

PART V

SECTION 13. The purpose of this part is to 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.

SECTION 14. 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; and

(2) That the applying entity:

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

(B) Has a Hawaii tax identification number;

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

(D) Has a federal employer identification number;

(E) Is not less than fifty-one per cent held by 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."

PART VI

SECTION 15. The purpose of this part is to:

(1) Allow primary caregivers, qualifying out-of-state patients, and caregivers of a qualifying out-of-state patient to access the waiting room within a medical cannabis retail dispensary; and

(2) Clarify violations related to medical cannabis dispensaries

SECTION 16. Section 329D-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Waiting room" means a designated area at the public entrance of a retail dispensing location that may be accessed by a member of the general public who is waiting for, assisting, or accompanying a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient who enters or remains on the premises of a retail dispensing location for the purpose of a transaction conducted pursuant to sections 329D-6 and 329D-13."

SECTION 17. Section 329D-7, Hawaii Revised Statutes, is amended to read as follows:

"329D-7 Medical cannabis dispensary rules. The department shall establish standards with respect to:

(1) The number of medical cannabis dispensaries that shall be permitted to operate in the State;

(2) A fee structure for:

(A) The submission of applications and renewals of licenses to dispensaries; provided that the department shall consider the market conditions in each county in determining the license renewal fee amounts;

(B) The submission of applications for each additional production center; and

(C) Dispensary-to-dispensary sales authorized by section 329D-6(r);

(3) Criteria and procedures for the consideration and selection, based on merit, of applications for licensure of dispensaries; provided that the criteria shall include but not be limited to an applicant's:

(A) Ability to operate a business;

(B) Financial stability and access to financial resources; provided that applicants for medical cannabis dispensary licenses shall provide documentation that demonstrates control of not less than $1,000,000 in the form of escrow accounts, letters of credit, surety bonds, bank statements, lines of credit or the equivalent to begin operating the dispensary;

(C) Ability to comply with the security requirements developed pursuant to paragraph (6);

(D) Capacity to meet the needs of qualifying patients and qualifying out-of-state patients;

(E) Ability to comply with criminal background check requirements developed pursuant to paragraph (8); and

(F) Ability to comply with inventory controls developed pursuant to paragraph (13);

(4) Specific requirements regarding annual audits and reports required from each production center and dispensary licensed pursuant to this chapter;

(5) Procedures for announced and unannounced inspections by the department or its agents of production centers and dispensaries licensed pursuant to this chapter; provided that inspections for license renewals shall be unannounced;

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

(A) For production centers:

(i) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;

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

(iii) An alarm system; and

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

(B) For retail dispensing locations:

(i) Presentation of a valid government-issued photo identification and a valid identification as issued by the department pursuant to section 329-123 by a qualifying patient or caregiver, or section 329-123.5 by a qualifying out-of-state patient or caregiver of a qualifying out-of-state patient, upon entering the premises;

(ii) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;

(iii) An alarm system;

(iv) Exterior lighting; and

(v) Other reasonable security measures as deemed necessary by the department;

(7) Security requirements for the transportation of cannabis and manufactured cannabis products between production centers and retail dispensing locations and between a production center, retail dispensing location, qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient and a certified laboratory, pursuant to section 329-122(f);

(8) Standards and criminal background checks to ensure the reputable and responsible character and fitness of all license applicants, licensees, employees, subcontractors and their employees, and prospective employees of medical cannabis dispensaries to operate a dispensary; provided that the standards, at a minimum, shall exclude from licensure or employment any person convicted of any felony;

(9) The training and certification of operators and employees of production centers and dispensaries;

(10) The types of manufactured cannabis products that dispensaries shall be authorized to manufacture and sell pursuant to sections 329D-9 and 329D-10;

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

(12) The quantities of cannabis and manufactured cannabis products that a dispensary may sell or provide to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient; provided that no dispensary shall sell or provide to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient any combination of cannabis and manufactured products that:

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

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

(13) Dispensary and production center inventory controls to prevent the unauthorized diversion of cannabis or manufactured cannabis products or the distribution of cannabis or manufactured cannabis products to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient in quantities that exceed limits established by this chapter; provided that the controls, at a minimum, shall include:

(A) A computer software tracking system as specified in section 329D-6(j) and (k); and

(B) Product packaging standards sufficient to allow law enforcement personnel to reasonably determine the contents of an unopened package;

(14) Limitation to the size or format of signs placed outside a retail dispensing location or production center; provided that the signage limitations, at a minimum, shall comply with section 329D-6(o)(2) and shall not include the image of a cartoon character or other design intended to appeal to children;

(15) The disposal or destruction of unwanted or unused cannabis and manufactured cannabis products;

(16) The enforcement of the following prohibitions against:

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

(B) The sale or provision of cannabis or manufactured cannabis products to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient in quantities that exceed limits established by this chapter;

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

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

(17) The establishment of a range of penalties for violations of this chapter or rule adopted thereto; [and]

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

(19) Security requirements and restrictions regarding waiting rooms, including but not limited to:

(A) Security measures to prevent unauthorized access to any area within the retail dispensing location outside of the waiting room;

(B) Restrictions on the storage, display, marketing, advertising, and retail sale of cannabis and manufactured cannabis products within the waiting room;

(C) Restrictions on signage within the waiting room; and

(D) Other reasonable security measures or restrictions as deemed necessary by the department."

SECTION 18. Section 329D-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) No person shall intentionally or knowingly enter or remain upon the premises of a medical cannabis retail dispensing location unless the individual is:

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

(2) A qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient;

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

(4) Previously included on a current department-approved list provided to the department by the licensee of those persons who are allowed into that dispensary's facilities for a specific purpose for that dispensary, including but not limited to construction, maintenance, repairs, legal counsel, providers of paratransit or other assistive services required by a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient to access a retail dispensary location, or investors; provided that:

(A) The person has been individually approved by the department to be included on the list;

(B) The person is at least twenty-one years of age, as verified by a valid government issued identification card;

(C) The department has confirmed that the person has no felony convictions;

(D) The person is escorted by an individual licensee or registered employee of the dispensary at all times while in the dispensary facility;

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

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

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

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

provided that a member of the general public may enter or remain within the waiting room of a retail dispensing location."

SECTION 19. Section 329D-21, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Any person who violates any of the provisions of this chapter or the rules adopted pursuant thereto shall be fined not less than $100 nor more than $1,000 for each [violation.] separate offense; provided that each day of each violation constitutes a separate offense."

PART VII

SECTION 20. The purpose of this part is to increase the number of medical cannabis dispensaries the department of health is authorized to issue in the State.

SECTION 21. Section 329D-2, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The department shall issue [eight]       dispensary licenses statewide; provided that       dispensary licenses shall be issued for the city and county of Honolulu, [two]       dispensary licenses each shall be issued for the county of Hawaii and the county of Maui, and [one]       dispensary license shall be issued for the county of Kauai; provided further that no dispensary license shall be issued for the county of Kalawao."

SECTION 22. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 23. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 24. This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 

 

 


 


 

Report Title:

Health; Cannabis; Medical Use; Propagules; Cuttings; Cannabis Dispensaries; Cannabis Access; Patients; Registration; Elderly; Hawaiian Home Lands; Waiting Area; Licenses; Increase

 

Description:

Authorizes dispensaries to distribute medical cannabis propagules and cuttings. Authorizes only those persons who may cultivate medical cannabis to purchase the propagules and cuttings. Imposes quantity limits and quality requirements on medical cannabis propagules and cuttings. Authorizes the Department of Health to approve in-vehicle receipt of medical cannabis and manufactured cannabis products on or near the premises of dispensaries. Authorizes a non-registered qualifying patient to have immediate access to the medical use of cannabis for a period of one year from the date of the issuance of a medical provider's certification letter, given certain requirements. Provides senior citizens with greater access to the state medical cannabis program. Increases 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. Allows primary caregivers, qualifying out-of-state patients, and caregivers of a qualifying out-of-state patient to access the waiting room within a medical cannabis retail dispensary. Clarifies violations related to medical cannabis dispensaries. Increases the number of medical cannabis dispensaries the Department of Health is authorized to issue in the State.

 

 

 

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