SB962 HD2

PART I

SECTION 1. The legislature finds that amendments to the State's medical use of cannabis law and medical cannabis dispensary program law are necessary to facilitate the administration of the laws, resolve issues that have arisen under existing law, and clarify legislative intent.

PART II

SECTION 2. The purpose of this part is to:

(1) Define "waiting room" within a medical cannabis retail dispensing location and specify who may have access to the waiting room;

(2) Add or clarify requirements for the medical cannabis dispensary program related to signage, types of permitted manufactured cannabis products, standards for packaging of cannabis and manufactured cannabis products, supervision of certain personnel who are onsite at a retail dispensing location or medical cannabis production center, annual reporting requirements for the department of health, and the continuing education and training program conducted by the department of health; and

(3) Make various housekeeping amendments.

SECTION 3. Section 329D-1, Hawaii Revised Statutes, is amended as follows:

1. 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; provided that the storage, display, and retail sale of cannabis and manufactured cannabis products shall be prohibited within the waiting room area."

2. By amending the definition of "manufactured cannabis product" to read as follows:

""Manufactured cannabis product" means any capsule, lozenge, oil or oil extract, tincture, ointment or skin lotion, pill, transdermal patch, or pre-filled and sealed container used to aerosolize and deliver cannabis orally[,] or by inhalation, such as an inhaler [or], nebulizer, or device that provides safe pulmonary administration, that has been manufactured using cannabis[,]; edible cannabis products; pre-rolled cannabis flower products; or any other products as specified by the department pursuant to section 329D-10(a)(11)."

SECTION 4. Section 329D-6, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (o) to read:

"(o) A dispensary shall not:

(1) Display cannabis or manufactured cannabis products in windows or in public view; or

(2) Post any signage other than [~~a single sign~~] one or two signs, each no greater than one thousand six hundred square inches bearing only the business or trade name in text without any pictures or illustrations; provided that if any applicable law or ordinance restricting outdoor signage is more restrictive, that law or ordinance shall govern."

2. By amending subsection (r) to read:

"(r) The department may authorize a dispensary to purchase cannabis and manufactured cannabis products from another dispensary in a manner prescribed by the department by rules adopted pursuant to this chapter [~~and chapter 91~~]; provided that:

(1) The purchasing dispensary establishes to the department's satisfaction that:

(A) The purchase is necessary to ensure that qualifying patients have continuous access to cannabis for medical use; or

(B) The cannabis and manufactured cannabis products are for medical, scientific, or other legitimate purposes approved by the State;

(2) The selling dispensary may transport no more than eight hundred ounces of cannabis or manufactured cannabis products to the purchasing dispensary within a thirty-day period;

(3) The cannabis and manufactured cannabis products are transported between the dispensaries for medical, scientific, or other legitimate purposes approved by the State; and

(4) Nothing in this subsection shall relieve any dispensary of its responsibilities and obligations under this chapter and chapter 329."

SECTION 5. Section 329D-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The types of medical cannabis products that may be manufactured and distributed pursuant to this chapter shall be limited to:

(1) Capsules;

(2) Lozenges;

(3) Pills;

(4) Oils and oil extracts;

(5) Tinctures;

(6) Ointments and skin lotions;

(7) Transdermal patches;

(8) Pre-filled and sealed containers used to aerosolize and deliver cannabis orally[,] or by inhalation, such as with an inhaler [or], nebulizer[;], or device that provides safe pulmonary administration; provided that [~~containers~~]:

(A) Containers need not be manufactured by the licensed dispensary but shall be filled with cannabis, cannabis oils, or cannabis extracts manufactured by the licensed dispensary[;] or as permitted by section 329D-6(r); but shall not contain nicotine, tobacco-related products, or any other non-cannabis derived products; and [~~shall be designed to be used with devices used to provide safe pulmonary administration of manufactured cannabis products;~~

~~(9)~~ ~~Devices~~]

(B) For devices that provide safe pulmonary administration[~~; provided that~~]:

[~~(A)~~] (i) The heating element of the device, if any, [is] shall be made of inert materials such as glass, ceramic, or stainless steel, and not of plastic or rubber;

[~~(B)~~] (ii) The device [is] shall be distributed solely for use with single-use, pre-filled, tamper-resistant, sealed containers that do not contain nicotine or other tobacco products;

[~~(C)~~ ~~The device is used to aerosolize and deliver cannabis by inhalation, such as an inhaler, medical-grade nebulizer, or other similar medical grade volitization device;~~

~~(D)~~] (iii) There [is] shall be a temperature control on the device that is regulated to prevent the combustion of cannabis oil; and

[~~(E)~~] (iv) The device need not be manufactured by the licensed dispensary;

(9) Pre-rolled cannabis flower products, as specified by the department;

(10) [~~Other products, including edible~~] Edible cannabis products, as specified by the department; and

(11) Other products as specified by the department."

SECTION 6. Section 329D-11, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department shall establish standards regarding the advertising and packaging of cannabis and manufactured cannabis products; provided that the standards, at a minimum, shall require the use of packaging that:

(1) Is child-resistant and opaque so that the product cannot be seen from outside the packaging;

(2) Uses only [~~black~~] lettering in colors approved by the department on a white background with no pictures or graphics;

(3) Is clearly labeled with the phrase "For medical use only";

(4) Is clearly labeled with the phrase "Not for resale or transfer to another person";

(5) Includes instructions for use and "use by date";

(6) Contains information about the contents and potency of the product;

(7) Includes the name of the production center where cannabis in the product was produced, including the batch number and date of packaging;

(8) Includes a barcode generated by tracking software; and

(9) In the case of a manufactured cannabis product, includes a:

(A) Listing of the equivalent physical weight of the cannabis used to manufacture the amount of the product that is within the packaging, pursuant to section 329D-9(c);

(B) Clearly labeled warning stating that the product:

(i) Is a medication that contains cannabis, and is not a food; and

(ii) Should be kept away from children; and

SECTION 7. Section 329D-12, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The following shall be subject to background checks conducted by the department or its designee, including but not limited to criminal history record checks in accordance with section 846-2.7:

(1) Each applicant and licensee for a medical cannabis dispensary license, including the individual applicant and all officers, directors, members of a limited liability corporation; shareholders with at least twenty-five per cent or more ownership interest in a corporation; and managers of an entity applicant;

(2) Each employee of a medical cannabis dispensary;

(3) Each employee of a subcontracted production center or retail dispensing location;

(4) All officers, directors, members of a limited liability corporation; and shareholders with at least twenty-five per cent or more ownership interest in a corporate owner of a subcontracted production center or retail dispensing location; and

(5) Any person permitted to enter and remain in a [~~dispensary facility~~] retail dispensing location or production center pursuant to section 329D-15(a)(4) or 329D-16(a)(3).

The person undergoing the background check shall provide written consent and all applicable processing fees to the department or its designee to conduct the background checks."

SECTION 8. Section 329D-15, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) 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~~] retail dispensing location 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 to access a retail [~~dispensary~~] dispensing 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;

(D) The person is escorted by an individual licensee or registered employee of the dispensary at all times while in the [~~dispensary facility;~~] retail dispensing location; provided that construction and maintenance personnel who are not normally engaged in the business of cultivating, processing, or selling medical cannabis need not be accompanied on a full-time basis, but shall be reasonably monitored by an individual licensee or registered employee of the retail dispensing location while in areas not containing any cannabis or manufactured cannabis products;

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

(F) The person is only permitted within the [~~dispensary facility~~] retail dispensing location 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,~~] retail dispensing location, 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.

(b) No individual licensee or registered employee of a medical cannabis dispensary with control over or responsibility for a retail dispensing location shall intentionally or knowingly allow another to enter or remain upon the premises of the retail dispensing location, unless the other is permitted to enter and remain as specified in subsection (a)[.], except in an emergency situation to repair infrastructure at a retail dispensing location by a person not on the department-approved list; provided that the repair worker shall be escorted at all times, and the licensee shall notify the department of the use of this individual immediately."

SECTION 9. Section 329D-16, Hawaii Revised Statutes, is amended to read as follows:

"[[]§329D-16[]] Criminal offense; unauthorized access to production centers. (a) No person shall intentionally or knowingly enter or remain upon the premises of a medical cannabis production center unless the person is:

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

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

(3) 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 facilitie~~s] production center for a specific purpose for that [~~dispensary,~~] production center, including but not limited to construction, maintenance, repairs, legal counsel, 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;

(D) The person is escorted by an individual licensee or registered employee of the [~~dispensary~~] production center at all times while in the [~~dispensary facility;~~] production center; provided that construction and maintenance personnel not normally engaged in the business of cultivating, processing, or selling medical cannabis need not be accompanied on a full-time basis, but only reasonably monitored by an individual licensee or registered employee of the production center while in areas not containing any cannabis or manufactured cannabis products;

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

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

(G) The [~~dispensary~~] production center shall keep an accurate record of each person's identity, date and times upon entering and exiting the [~~dispensary facility,~~] production center, purpose for entering, and the identity of the escort; and

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

(b) No individual licensee or registered employee of a medical cannabis dispensary with control over or responsibility for a production center shall intentionally or knowingly allow another to enter or remain upon the premises of the production center, unless the other is permitted to enter and remain as specified in subsection (a)[.], except in an emergency situation to repair infrastructure at a production center by a person not on the department-approved list; provided that the repair worker shall be escorted at all times, and the licensee shall notify the department of the use of this individual immediately.

SECTION 10. Section 329D-23, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The department shall report annually to the governor and the legislature on the establishment and regulation of medical cannabis production centers and dispensaries [including but not limited to the number and location of production centers and dispensaries licensed, the total licensing fees collected, the total amount of taxes collected from production centers and dispensaries, and any licensing violations determined by the department]. The report shall include, at minimum:

(1) Three consistent key performance indicators to measure program performance, as initially created and defined by the department;

(2) The number and location of dispensaries licensed;

(3) The total licensing fees collected and the total amount of taxes collected from dispensaries;

(4) The number of inspections conducted, licensing violations determined by the department, and fines collected from violations, by category; and

(5) The description and number of education activities undertaken pursuant to section 329D-26."

SECTION 11. Section 329D-26, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department shall conduct a continuing education and training program to explain and clarify the purposes and requirements of this chapter or to provide substance abuse prevention and education. The program shall target community partner agencies, physicians and other health care providers, patients and caregivers, law enforcement agencies, law and policy makers, and the general public. The program shall include, at minimum, education and outreach regarding:

(1) The updated, publicly-available list of medical cannabis dispensaries, physicians, and other health care providers participating in the program under this chapter;

(2) Lawful activities, unlawful activities, and applicable penalties for a medical cannabis dispensary, qualifying patient, primary caregiver, qualifying out‑of-state patient, caregiver of a qualifying out‑of-state patient, and other entity performing related activities; and

(3) The methods and associated requirements for a medical cannabis dispensary, qualifying patient, primary caregiver, or other entity to produce cannabis and manufactured cannabis products, as applicable."

PART III

SECTION 12. The purpose of this part is to:

(1) Establish a medical cannabis cultivation site registry and impose fees on the owners and operators of medical cannabis cultivation sites;

(2) Amend the use of and sources of funding for the medical cannabis registry and regulation special fund by:

(A) Authorizing the office of medical cannabis control and regulation to make expenditures from the fund for certain purposes;

(B) Authorizing the use of the fund for expenditures relating to the establishment and regulation of the medical cannabis cultivation site registry, the regulation of medical cannabis collectives and cooperatives, and the regulation of medical cannabis dispensaries;

(C) Authorizing the deposit of fees from the medical cannabis cultivation site registry to be deposited into the fund; and

(D) Deleting the medical cannabis registry program sub-account and medical cannabis dispensary program sub-account;

(3) Prohibit the cultivation, production, manufacture, possession, distribution, handling, or dispensation of medical cannabis except by qualifying patients, qualifying out-of-state patients, their authorized primary caregivers, or medical cannabis dispensaries;

(4) Restrict the number of qualifying patients who may use a grow site to twenty, unless an exemption is obtained from the department of health; and

(5) Prohibit the use or receipt of cannabis as compensation for acting as a primary caregiver to a qualifying patient.

SECTION 13. 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-A Medical cannabis cultivation site registry; fees; penalties. (a) All persons owning or operating a medical cannabis cultivation site shall register with the department of health. The department of health shall issue each owner or operator of a medical cannabis cultivation site a registration certificate, which shall be valid for twelve months from the date of approval, and shall charge a fee for the certificate. The registration shall be effective until the expiration of the certificate issued by the department of health.

(b) In registering with the department of health, each owner or operator shall provide in a form designated by the department the following information:

(1) The name of the owner or operator of the medical cannabis cultivation site;

(2) The physical location of the medical cannabis cultivation site; and

(3) The name of each qualifying patient or primary caregiver cultivating cannabis for medical use at the medical cannabis cultivation site.

(d) For the purposes of this section, "medical cannabis cultivation site" means a location where cannabis is grown for medical use by a qualifying patient or primary caregiver and is not the residence of the qualifying patient or the primary caregiver."

SECTION 14. Section 321-30.1, Hawaii Revised Statutes, is amended to read as follows:

"§321-30.1 Medical cannabis registry and regulation special fund; established. (a) There is established within the state treasury the medical cannabis registry and regulation special fund. The fund shall be [~~expended at the discretion of the director of health~~] used for the following purposes:

(1) To establish and regulate a system of medical cannabis dispensaries in the State;

(2) To offset the cost of the processing and issuance of patient registry identification certificates and primary caregiver registration certificates;

(3) To fund positions and operating costs authorized by the legislature;

(4) To establish and manage a secure and confidential database;

(5) To fund public education as required by section 329D-26;

(6) To fund substance abuse prevention and education programs; [~~and~~]

(7) To regulate medical cannabis collectives and cooperatives;

(8) To establish and regulate a medical cannabis cultivation site registry; and

[~~(7)~~] (9) For any other expenditure necessary, consistent with this chapter and [~~chapter~~] chapters 329 and 329D, to implement medical cannabis registry and regulation programs.

For the purposes of this subsection, "medical cannabis cultivation site" shall have the same meaning as defined in section 329-A.

(b) The fund shall be expended at the discretion of the director of health; provided that the office of medical cannabis control and regulation shall have discretion to expend the fund for the purposes of subsection (a)(1), (7), and (8).

[~~(b)~~] (c) The fund shall consist of all moneys derived from fees collected pursuant to subsection [~~(c)~~] (d) and [~~section~~] sections 329-A and 329D-4. [~~There is established within the medical cannabis registry and regulation special fund:~~

~~(1)~~ ~~A medical cannabis registry program sub-account, into which shall be deposited all fees collected pursuant to subsection (c); and~~

~~(2)~~ ~~A medical cannabis dispensary program sub-account, into which shall be deposited all fees collected pursuant to section 329D-4.~~

~~(c)~~] (d) The department, upon completion of the transfer of the medical use of cannabis program, shall charge a medical cannabis registration fee to each qualifying patient, other than a qualifying out-of-state patient, of no more than $35 per year."

SECTION 15. Section 329-41, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) It is unlawful for any person:

(1) Who is subject to part III to distribute, administer, prescribe, or dispense a controlled substance in violation of section 329-38 or rules authorized under section 329-31; however, a licensed manufacturer or wholesaler may sell or dispense a controlled substance to a master of a transpacific ship or a person in charge of a transpacific aircraft upon which no physician is regularly employed, for the actual medical needs of persons on board such ship or aircraft when not in port; provided schedule I or II controlled substances shall be sold to the master of such ship or person in charge of such aircraft only in accordance with the provisions set forth in title 21 Code of Federal Regulations[,] sections 1301, 1305, and 1307, adopted pursuant to [~~Title~~] title 21[,] United States Code[,] section 821;

(2) Who is a registrant to manufacture a controlled substance not authorized by the registrant's registration or to distribute or dispense a controlled substance not authorized by the registrant's registration to another registrant or another authorized person;

(3) To refuse or fail to make available, keep, or furnish any record, notification, order form, prescription, statement, invoice, or information in patient charts relating to the administration, dispensing, or prescribing of controlled substances;

(4) To refuse any lawful entry into any premises for any inspection authorized by this chapter;

(5) Knowingly to keep or maintain any store, shop, warehouse, dwelling, building, vehicle, boat, aircraft, or other structure or place for the purpose of using these substances or which is used for keeping or selling them in violation of this chapter or chapter 712, part IV;

(6) Who is a practitioner or pharmacist to dispense a controlled substance to any individual not known to the practitioner or pharmacist, except under the following circumstances:

(A) When dispensing a controlled substance directly to an individual, the practitioner or pharmacist shall first obtain and document, in a log book or an electronic database, the full name, identification number, identification type, and signature, whether by actual signature or by electronic signature capture device, of the individual obtaining the controlled substance. If the individual does not have any form of proper identification, the pharmacist shall verify the validity of the prescription and identity of the patient with the prescriber, or their authorized agent, before dispensing the controlled substance; and

(B) For mail order prescriptions, the practitioner or pharmacist shall not be subject to subparagraph (A); provided that all other requirements of chapter 329 shall apply and that the practitioner or pharmacist, as part of the initial registration process of an individual in a mail order prescription drug plan and prior to the controlled substance being dispensed, shall obtain all identification information, including the full name, identification number, identification type, signature, and a photocopy of a form of proper identification of the individual obtaining the controlled substance. The practitioner or pharmacist shall also comply with other requirements set forth by rule.

For the purpose of this section, "proper identification" means government-issued identification containing the photograph, printed name, identification number, and signature of the individual obtaining the controlled substance;

(7) Who is a practitioner to predate or pre-sign prescriptions to facilitate the obtaining or attempted obtaining of controlled substances; [or]

(8) Who is a practitioner to facilitate the issuance or distribution of a written prescription or to issue an oral prescription for a controlled substance when not physically in the State[.]; or

(9) To cultivate, produce, manufacture, distribute, or dispense cannabis for medical use if the person is not authorized pursuant to chapter 329, part IX, or chapter 329D."

SECTION 16. Section 329-121, Hawaii Revised Statutes, is amended by amending the definition of "medical use" to read as follows:

""Medical use" means the acquisition, possession, cultivation, use, distribution, or transportation of cannabis or paraphernalia relating to the administration of cannabis to alleviate the symptoms or effects of a qualifying patient's debilitating medical condition; provided that "medical use" does not include the cultivation or distribution of cannabis or paraphernalia by a qualifying out-of-state patient or the caregiver of a qualifying out-of-state patient. For the purposes of "medical use", the term "distribution" is limited to the transfer of cannabis and paraphernalia[.] from the qualifying patient's registered primary caregiver to the qualifying patient."

SECTION 17. Section 329-122, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) 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;

(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[.]; and

(4) The cultivation, handling, or possession of a qualifying patient's cannabis for medical use, unless the person is the qualifying patient or the qualifying patient's registered primary caregiver."

SECTION 18. Section 329-123, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Physicians or advanced practice registered nurses who issue written certifications shall provide, in each written certification, the name, address, patient identification number, and other identifying information of the qualifying patient. The department of health shall require, in rules adopted pursuant to chapter 91, that all written certifications comply with a designated form completed by or on behalf of a qualifying patient. The form shall require information from the applicant, primary caregiver, and physician or advanced practice registered nurse as specifically required or permitted by this chapter. The form shall require the address of the location where the cannabis is grown and shall appear on the registry card issued by the department of health. No more than twenty qualifying patients may use any particular location to cultivate cannabis; provided that this limitation shall not apply to qualifying patients who obtain a written exemption from the department of health. The certifying physician or advanced practice registered nurse shall be required to have a bona fide physician-patient relationship or bona fide advanced practice registered nurse‑patient relationship, as applicable, with the qualifying patient. All current active medical cannabis permits shall be honored through their expiration date."

2. By amending subsection (c) to read:

"(c) Primary caregivers shall register with the department of health. Every primary caregiver shall be responsible for the care of only one qualifying patient at any given time, unless the primary caregiver is the parent, guardian, or person having legal custody of more than one minor qualifying patient, in which case the primary caregiver may be responsible for the care of more than one minor qualifying patient at any given time; provided that the primary caregiver is the parent, guardian, or person having legal custody of all of the primary caregiver's qualifying patients. The department of health may permit registration of up to two primary caregivers for a minor qualifying patient; provided that both primary caregivers are the parent, guardian, or person having legal custody of the minor qualifying patient. A primary caregiver shall not use a qualifying patient's cannabis, nor shall the primary caregiver accept a qualifying patient's cannabis as compensation for the primary caregiver's services."

SECTION 19. Section 329-125, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Any qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient not complying with the permitted scope of the medical use of cannabis shall not be afforded the protections against searches and seizures pertaining to the misapplication of the medical use of cannabis. To the extent the department is authorized by this chapter, the department may conduct inspections of grow sites to verify a person's compliance with this chapter."

SECTION 20. Section 329-130, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) After December 31, 2024, a qualifying patient shall obtain medical cannabis or manufactured cannabis products only:

(1) From a dispensary licensed pursuant to chapter 329D; provided that the cannabis shall be purchased and paid for at the time of purchase; or

(2) By cultivating cannabis in an amount that does not exceed an adequate supply for the qualifying patient, pursuant to section 329-122; provided that each location used to cultivate cannabis shall be used by no more than [~~five~~] twenty qualifying patients.

After December 31, 2024, no primary caregiver shall be authorized to cultivate cannabis for any qualifying patient."

PART IV

SECTION 21. The purpose of this part is to establish annual reporting requirements for the department of health regarding the medical cannabis patient registry program.

SECTION 22. 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-B Medical use of cannabis; reports. The department shall report annually to the governor and the legislature on the medical use of cannabis. Each report, at minimum, shall include:

(1) Three consistent key performance indicators to measure program performance, as initially created and defined by the department;

(2) The number of new, renewed, and expired and not renewed registrations of qualifying patients, primary caregivers, qualifying out-of-state patients, and caregivers of qualifying out-of-state patients;

(3) The amount of fees collected from new and renewed registrations;

(4) The number of physicians or advanced practice registered nurses issuing medical cannabis certifications, and the number of certifications issued by each of the ten physicians or advanced practice registered nurses who issue the highest number of certifications;

(5) The number of locations on each island where more than five qualifying patients register the same or contiguous location or locations for cultivating cannabis, and the number of qualifying patients registered at each of the ten most frequently used same or contiguous locations used to cultivate cannabis;

(6) The number of inspections conducted and number of violations found by the department; and

(7) The description and number of education activities undertaken by the full-time staff member per section 329D-26 and the total expense of those education activities."

PART V

SECTION 23. The purpose of this part is to require the department of business, economic development, and tourism to submit a report to the legislature analyzing aggregated de-identified information regarding the medical cannabis patient registry program and medical cannabis dispensary program.

SECTION 24. Pursuant to section 201-13.9, Hawaii Revised Statutes, the department of business economic development and tourism shall submit to the legislature, no later than twenty days prior to the convening of the regular session of 2024, a report that provides an analysis of aggregated de-identified information regarding the medical cannabis registry and dispensary programs established pursuant to chapters 329 and 329D, Hawaii Revised Statutes.

PART VI

SECTION 25. In codifying the new sections added by sections 13 and 22 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 26. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 27. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 28. This Act shall take effect on June 30, 3000.

THE SENATE	S.B. NO.	962
THIRTY-SECOND LEGISLATURE, 2023		S.D. 1
STATE OF HAWAII		H.D. 2