STAND. COM. REP. NO. 1692

Honolulu, Hawaii

RE: S.R. No. 76

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.R. No. 76 entitled:

"SENATE RESOLUTION REQUESTING THE DEPARTMENT OF HEALTH TO PROVIDE AN EXPLANATION AS TO WHY IT HAS NOT ISSUED ANY ADDITIONAL MEDICAL CANNABIS DISPENSARY LICENSES PURSUANT TO SECTION 329D-2(J), HAWAII REVISED STATUES,"

begs leave to report as follows:

The purpose and intent of this measure is to request the Department of Health to provide an explanation as to why it has not issued any additional medical cannabis dispensary licenses pursuant to section 329D-2(j), Hawaii Revised Statutes.

Your Committee did not receive any testimony on this measure.

Your Committee finds that chapter 329D, Hawaii Revised Statutes, limits the amount of medical cannabis dispensary licenses the Department of Health can issue statewide. However, the Department of Health is authorized to issue additional medical cannabis dispensary licenses after October 1, 2018, under certain conditions. Despite applications filed by numerous entities for issuance of these additional medical cannabis dispensary licenses, the Department of Health has not issued any additional licenses and has stopped accepting new applications. This measure requests the Department of Health to explain why it has not issued any additional medical cannabis dispensary licenses.

Your Committee notes that the Department of Health testified that the reason it has not issued additional medical cannabis dispensary licenses is because the current dispensary system is not yet operating at its maximum capacity. Additionally, several measures were introduced during the Regular Session of 2023 that would have legalized recreational cannabis; however, all of them have been deferred or failed to receive a hearing. Thus, this measure would be of greater service to reconstitute a dual use of cannabis working group to address remaining concerns with measures legalizing recreational cannabis.

Accordingly, your Committee has amended this measure by deleting its contents and inserting language requesting the Office of Medical Cannabis Control and Regulation, in collaboration with the Chairpersons of the Senate Standing Committee on Health and Human Services and House of Representatives Standing Committee on Health and Homelessness, to convene the Medical and Adult Use Cannabis Working Group to research, develop, and finalize recommendations for the creation of a dual use regulatory system allowing access to medical cannabis and cannabis for adult use.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 76, as amended herein, and recommends its adoption in the form attached hereto as S.R. No. 76, S.D. 1.

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

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JARRETT KEOHOKALOLE, Chair