STAND. COM. REP. NO. 254

Honolulu, Hawaii

, 2023

RE: H.B. No. 1359

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Agriculture & Food Systems and Health & Homelessness, to which was referred H.B. No. 1359 entitled:

"A BILL FOR AN ACT RELATING TO HEMP,"

beg leave to report as follows:

The purpose of this measure is to support the budding hemp industry in Hawaii by:

(1) Repealing redundant regulations on hemp production to reduce costs for the State and Hawaii farmers;

(2) Amending the hemp law in a manner that recognizes the unique constraints of Hawaii farmers, while protecting human health;

(3) Allowing licensed hemp producers to sell hemp biomass;

(4) Requiring transparency in labeling of hemp products to identify the percentage of Hawaii-grown hemp or hemp product in all hemp products;

(5) Requiring and appropriating funds for the Department of Health to hire or consult a toxicologist or consultant familiar with hemp industry standards for the purpose of setting defined action limits or exposure levels for different types of hemp products; and

(6) Extending the State's hemp processor law through July 1, 2027.

Your Committees received testimony in support of this measure from Hawai‘i Farmers Union United, Omao Labs LLC dba Kauai Hemp Company, Island Hemp Collective, and six individuals. Your Committees received comments on this measure from the Department of Agriculture, Department of the Attorney General, and Department of Health.

Your Committees find that hemp is a high-value crop that has the potential to bring significant and diverse revenues to Hawaii. However, the State's hemp industry remains in a nascent stage, largely due to overregulation. This measure will help to relax some of these regulations.

Your Committees have amended this measure by:

(1) Modifying the definition of "hemp biomass" to exclude the flowers and leaves of hemp plants;

(2) Making unspecified the maximum percentage of delta-9-tetrahydrocannabinol concentration in the definition of "finished hemp product";

(3) Changing its effective date to June 30, 3000, to encourage further discussion; and

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

Your Committees respectfully request that your Committee on Consumer Protection & Commerce, should it choose to deliberate on this measure, to:

(1) Consider protections for public health regarding delta-9-tetrahydrocannabinol levels, as mentioned by the Department of the Attorney General; and

(2) Seek and consider the recommendations of the Department of Agriculture on how to determine whether a hemp product has a label that is attractive to underaged persons.

As affirmed by the records of votes of the members of your Committees on Agriculture & Food Systems and Health & Homelessness that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1359, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1359, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committees on Agriculture & Food Systems and Health & Homelessness,

____________________________ DELLA AU BELATTI, Chair

____________________________ CEDRIC ASUEGA GATES, Chair