STAND. COM. REP. NO. 2594

Honolulu, Hawaii

RE: S.B. No. 2426

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2426 entitled:

"A BILL FOR AN ACT RELATING TO MEDICAL CANNABIS,"

begs leave to report as follows:

The purpose and intent of this measure is to make conforming amendments to the medical cannabis dispensary law by:

(1) Providing a process for the voluntary or involuntary sale or transfer of a dispensary license;

(2) Removing the exclusion from dispensary employment for certain class C felony convictions;

(3) Repealing certain restrictions on medical cannabis dispensary siting; and

(4) Including primary caregivers, qualifying out-of-state patients, and caregivers of a qualifying out-of-state patient as covered individuals.

Your Committee received testimony in support of this measure from the Department of Health, Hawai‘i Cannabis Industry Association, Maui Grown Therapies, Aloha Green Holdings Inc., Kush Hawaii, and six individuals. Your Committee received testimony in opposition to this measure from PATIENTS WITHOUT TIME and one individual. Your Committee received comments on this measure from the Akamai Cannabis Clinic.

Your Committee finds that the regulated statewide dispensary system for medical cannabis was established on July 14, 2015, as Act 241, Session Laws of Hawaii 2015, to ensure safe and legal access to medical cannabis of qualifying patients. Since then, the experience of the program indicates that improvements to the law will help to fulfill its original intent by clarifying provisions and implementing reasonable modifications to support patient access, such as defining "restricted access area" to better serve qualified patients by allowing certain individuals to help patients into retail dispensaries, while preventing unauthorized access to medical cannabis and manufactured medical cannabis products.

To assist the Committee on Judiciary with its deliberation on this measure, your Committee notes the comments and concerns of Maui Grown Therapies related to further expanding the exemption from background checks for certain individuals under certain conditions and that the Department of Health did not provide any comments on these concerns.

Your Committee has amended this measure by making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2426, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2426, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

________________________________

ROSALYN H. BAKER, Chair