STAND. COM. REP. NO. 624

Honolulu, Hawaii

, 2021

RE: H.B. No. 477

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 477, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CANNABIS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Allow medical cannabis dispensaries to transport up to three thousand grams of cannabis or manufactured cannabis products to purchasing dispensaries;

(2) Include propagules and cuttings in the definition of "cannabis", thereby allowing dispensaries to transport and sell propagules and cuttings to other dispensaries and allowing qualifying patients and primary caregivers to purchase propagules and cuttings;

(3) Change the allowable number of production centers and retail dispensing locations per medical cannabis dispensary license; and

(4) Allow sales of cannabis and manufactured cannabis products between licensed medical cannabis dispensaries.

Your Committee received testimony in support of this measure from the Hawai‘i Cannabis Industry Association, Green Aloha Ltd., Big Island Grown Dispensaries, Medcan Hawaii LLC, and two individuals. Your Committee received comments on this measure from the Department of the Attorney General, Department of Public Safety, and Department of Health.

Your Committee finds that this measure is intended to enhance the State's medical cannabis dispensary program by authorizing additional facilities to ensure greater patient access, adding additional product controls and safety, and providing improvements needed for better administration of the medical cannabis dispensary program.

Your Committee has amended this measure by:

(1) Clarifying that as long as federal law prohibits transportation of medical cannabis over a body of water, dispensary-to-dispensary sales may only occur between dispensaries located on the same island;

(2) Specifying that, beginning December 31, 2021, qualifying patients shall only obtain medical cannabis or manufactured cannabis products from licensed dispensaries or by cultivating cannabis at an authorized grow site used by no more than two, rather than five, qualifying patients;

(3) Authorizing the Department of Health or law enforcement, upon the request of the Department, to make administrative inspections of registered grow sites for purposes of verifying compliance;

(4) Prohibiting primary caregivers from cultivating cannabis for qualifying patients after December 31, 2021;

(5) Removing language permitting the sale of cannabis cuttings and propagules and making associated conforming amendments;

(6) Specifying that the Department of Health shall establish manufacturing and product stability standards, rather than sanitation standards, for the manufacture of manufactured cannabis products; and

(7) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 477, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 477, H.D. 2.

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

____________________________

AARON LING JOHANSON, Chair