STAND. COM. REP. NO. 696

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 Finance, to which was referred H.B. No. 477, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CANNABIS,"

begs leave to report as follows:

The purpose of this measure is to make clarifying amendments to the medical cannabis dispensary law. Specifically, this measure:

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

(2) Moves up the implementation date for restrictions on how qualifying patients may obtain medical cannabis and manufactured cannabis products and restrictions on primary caregiver cultivation to December 31, 2021;

(3) Authorizes the Department of Health or law enforcement, upon the request of the Department, to conduct administrative inspections of registered grow sites to ensure compliance with cannabis plant limits;

(4) Amends the allowable number of production centers and retail dispensing locations per dispensary license;

(5) Authorizes the Department of Health to allow a licensed dispensary to purchase up to three thousand grams of medical cannabis or manufactured cannabis products from another licensed dispensary located on the same island to ensure ongoing qualifying patient access;

(6) Clarifies that the transport of cannabis to another county or island for the sole purposes of laboratory testing is permissible only if no certified laboratory is located in the county or on the island where the dispensary is located; and

(7) Requires the Department of Health to establish manufacturing and product stability standards, rather than sanitation standards.

Your Committee received testimony in support of this measure from Aloha Green Holdings Inc.; and two individuals. Your Committee received testimony in opposition to this measure from the Drug Policy Forum of Hawaii, Hawaii Patients Union, and seven individuals. Your Committee received comments on this measure from the Department of Health, Department of Public Safety, Akamai Cannabis Clinic, Hawaii Cannabis Industry Association, Green Aloha Ltd, Big Island Grown Dispensaries, and four individuals.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 477, H.D. 2, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair