STAND. COM. REP. NO. 3436

Honolulu, Hawaii

RE: H.B. No. 2260

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Health and Commerce and Consumer Protection, to which was referred H.B. No. 2260, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CANNABIS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Amend the circumstances under which medical cannabis may be transported by and between dispensaries;

(2) Increase the allowable number of plants for production centers;

(3) Increase the number of production centers that may be allowed under a dispensary license;

(4) Increase the number of retail dispensing locations that may be allowed under a dispensary license;

(5) Redefine the term "medical cannabis production center" to include any series of structures located within the same secured perimeter fence-line;

(6) Require the Department of Health to establish the fee structure for the submission of applications for additional production centers and retail dispensing locations and for dispensary-to-dispensary sales; and

(7) Amend the Department of Health's duties with respect to the establishment of standards for manufactured cannabis products.

Your Committees received testimony in support of this measure from the Hawai‘i Cannabis Industry Association, Green Aloha Ltd., Aloha Green Holdings Inc., Hawaiian Ethos LLC, Maui Grown Therapies, Noa Botanicals, and eight hundred forty-seven individuals. Your Committees received testimony in opposition to this measure from one individual. Your Committees received comments on this measure from the Department of Health, Akamai Cannabis Consulting, and one individual.

Your Committees find that the Medical Cannabis Dispensary System was established to ensure that qualified patients have safe and legal access to medical cannabis. Your Committees additionally find that the Medical Cannabis Dispensary System needs to be updated to increase access to medical cannabis in rural areas, provide the Department of Health with improved administrative control, and increase the supply of medical cannabis in the State. This measure updates the existing Medical Cannabis Dispensary System and requires the Department of Health to establish additional manufacturing and product stability standards for medical cannabis products.

Your Committees have amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Health and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2260, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2260, H.D. 1, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

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

________________________________ ROSALYN H. BAKER, Chair

________________________________ JARRETT KEOHOKALOLE, Chair