HB1587.DOC

SECTION 1. The legislature finds that the highest priority of the medical cannabis working group, which examined issues relating to Hawaii's medical marijuana program and conducted a survey of registered patients in Hawaii, is to create an effective distribution system to prevent patients from being forced to resort to the black market to obtain their medication. The medical cannabis working group's February 2010 report to the legislature notes that without a system of medical marijuana dispensaries, qualifying patients in the medical marijuana program in Hawaii do not have access to a safe and legal supply of medicine.

The current system has forced many patients to turn to black market sources to obtain medication when they are unable to grow a sufficient supply for their medical needs, thus running the risk of violence, robbery, and procurement of low quality or adulterated marijuana, which is unacceptable as medicine. All of the stakeholders involved in the medical cannabis working group, from patients to caregivers to physicians, agree that it is imperative to address this serious omission in Hawaii's medical marijuana program.

Other jurisdictions have found that well-regulated dispensaries can protect the public, while providing patients with high quality medicine in a confidential setting with professional standards of care. In addition to meeting this compelling need, a dispensary system offers revenue potential for the State or counties.

The purpose of this Act is to improve Hawaii's medical marijuana program by:

(1) Establishing a system of registered dispensaries and dispensary agents within the department of health to dispense medical marijuana to qualified patients and primary caregivers; and

(2) Transferring administrative responsibilities for medical marijuana from the department of public safety to the department of health.

SECTION 2. Chapter 329, Hawaii Revised Statutes, is amended by adding three new sections to part IX to be appropriately designated and to read as follows:

"§329-A Dispensaries; requirements and registration. (a) A dispensary may possess and cultivate medical marijuana for the purpose of dispensing the medical marijuana to a qualifying patient or primary caregiver and may manufacture, purchase, possess, distribute, and use drug paraphernalia in accordance with this part and rules adopted pursuant to chapter 91.

(b) A dispensary may dispense medical marijuana and distribute drug paraphernalia to a qualifying patient or primary caregiver, and a qualifying patient or primary caregiver may obtain medical marijuana and drug paraphernalia from a dispensary; provided that the qualifying patient is registered to receive medical marijuana from that dispensary.

(1) Pays a cultivation fee of $ per year to the department of health;

(2) Provides the legal name and physical address of the dispensary;

(3) Cultivates the marijuana in a secured facility that is a part of the dispensary;

(4) Provides the name, address, and date of birth of each dispensary agent;

(5) Maintains operating procedures consistent with rules for oversight, including the cultivation and storage of marijuana only in adjoined secured facilities; and

(6) Confirms that none of the dispensary agents has served as a dispensary agent for a dispensary that has had its registration revoked.

(d) Each dispensary shall be registered with the department of health prior to manufacturing, cultivating, dispensing, possessing, or distributing medical marijuana, or manufacturing, possessing, using, or distributing drug paraphernalia. No more than dispensaries shall be registered to operate in this State; provided that at least one dispensary shall be located in each county, and not more than shall be located in any one county. In the event the department of health determines that the number of dispensaries is insufficient to meet patient needs, the department of health may increase or modify the number of registered dispensaries to as many as by adopting rules pursuant to chapter 91.

(e) A dispensary shall not dispense more than four ounces or the adequate supply of marijuana in a -day period to a qualifying patient, directly or through a primary caregiver.

(f) A dispensary shall not possess more than living marijuana plants at any time.

(g) It shall be unlawful for a dispensary to dispense, possess, or cultivate more than the quantity of medical marijuana needed to support the number of qualifying patients or primary caregivers registered to receive medical marijuana at that dispensary.

(h) No medical marijuana or drug paraphernalia at a dispensary shall be visible from any public or other property.

§329-B Dispensaries; qualifications, duties, and responsibilities. (a) Each dispensary shall:

(1) Be a for-profit or nonprofit corporation incorporated in the State of Hawaii;

(2) Implement a security plan to prevent the theft or diversion of medical marijuana, including maintaining all medical marijuana in a secured facility that is accessible only by authorized persons;

(3) Ensure that all of its dispensary agents receive training on compliance with the medical marijuana laws, medical marijuana use, security, and theft prevention; and

(4) Maintain operating procedures consistent with rules adopted by the department of health pursuant to chapter 91 for the accurate tracking of marijuana plants, including the cultivation and storage of marijuana in secured facilities.

(b) Each dispensary shall maintain true, complete, and current records of the following:

(1) The name, address, home telephone number, and date of birth of each dispensary agent;

(2) A record of each transaction, including:

(A) The quantity of medical marijuana distributed or dispensed;

(B) The consideration given for the medical marijuana;

(D) The name and address of the qualifying patient authorized to obtain the distribution or dispensing of medical marijuana; and

(E) The name and address of the primary caregiver who receives the medical marijuana;

(3) The quantity of the medical marijuana at the dispensary;

(4) The disposal method used for any medical marijuana that was cultivated or acquired but not sold, including evidence of the disposal of the medical marijuana; and

(5) Any other information required by the department of health.

(1) Develop educational materials about potential harmful drug interactions that could occur from using medical marijuana concurrently with other medical treatments and the importance of informing health care providers and pharmacists of the use of medical marijuana to help avoid harmful drug interactions;

(2) Revoke or suspend the registration of any person or entity if the director of health determines that the person or entity has violated a provision of this part;

(3) Establish sliding-scale registration and annual renewal fees for all persons and entities required to register pursuant to this part; provided that the registration and annual renewal fees for dispensaries and dispensary agents shall be sufficient to offset the costs of administering this part; and

(4) Establish a system to provide for the safe and affordable dispensing of medical marijuana to qualifying patients who are unable to afford a sufficient supply of medical marijuana based upon the qualifying patient's income and existing financial resources.

(d) Each dispensary shall notify the appropriate law enforcement agency immediately and in writing of any loss, theft, or destruction of any medical marijuana.

(e) Dispensaries shall be subject to announced and unannounced inspections of its operations by law enforcement officers or the department of health.

(f) All dispensaries shall submit an annual report to the department of health that does not disclose any identifying information about qualifying patients, primary caregivers, or physicians, but includes:

(1) The number of applications filed for a registration identification card;

(2) The number of qualifying patients and primary caregivers registered;

(3) The qualifying medical condition or qualifying medical treatment for each qualifying patient;

(4) The number of registrations suspended and the number revoked; and

(5) The number of physicians providing written recommendations for qualifying patients.

§329-C Registration of dispensary agents. (a) Dispensary agents shall be registered with the department of health before working at a dispensary. A person who has been convicted of a felony or a misdemeanor drug-related offense shall not be a dispensary agent. The department of health shall conduct criminal record checks on dispensary agents pursuant to this part. All dispensaries shall:

(1) Apply to the department of health for a registration card for each affiliated dispensary agent by submitting the name, address, and date of birth of the dispensary agent; and

(2) Notify the department of health within one business day if a dispensary agent ceases to be associated with the dispensary, in which event the dispensary agent's registration card shall be immediately revoked.

(b) A dispensary agent shall not be subject to arrest, prosecution, or civil penalty under Hawaii law for actions taken under the authority of a dispensary; provided that the dispensary agent:

(1) Presents the dispensary agent's registration card to any law enforcement officer who questions the dispensary agent concerning the dispensary agent's marijuana-related activities; and

(2) Is acting within all of the requirements of this section.

(c) A person found to have violated any provisions in this part shall not be a dispensary agent and the registration identification card of the person shall be immediately revoked and the registration of the dispensary shall be suspended until the person is no longer a dispensary agent of the dispensary."

SECTION 3. Section 329-121, Hawaii Revised Statutes, is amended by adding four new definitions to be appropriately inserted and to read as follows:

""Department" means the department of health.

"Dispensary" means a facility operated by an organization or business registered with the department pursuant to section 329-A from or at which medical marijuana is cultivated, possessed, manufactured, distributed, and dispensed, and drug paraphernalia is possessed and distributed, to a dispensary, qualifying patient, or primary caregiver.

"Dispensary agent" means a director, officer, member, agent, or employee of a dispensary, who shall be at least twenty-one years of age.

"Secured facility" means an area equipped with locks, security cameras, alarms, or other security devices to prevent unauthorized access and theft, accessible only to dispensary agents, patients, or primary caregivers."

SECTION 4. Section 329-125, Hawaii Revised Statutes, is amended to read as follows:

"[[]§329-125[]] Protections afforded to [~~a qualifying patient or primary caregiver.~~] qualifying patients, primary caregivers, dispensaries, and dispensary agents. (a) A qualifying patient [~~or the~~], primary caregiver, dispensary, or dispensary agent may assert the medical use of marijuana as an affirmative defense to any prosecution involving marijuana under this [[]part[]] or chapter 712; provided that the qualifying patient [~~or the~~], primary caregiver, dispensary, or dispensary agent strictly complied with the requirements of this part.

(b) Any qualifying patient [or], primary caregiver, dispensary, or dispensary agent not complying with the permitted scope of the medical use of marijuana shall not be afforded the protections against searches and seizures pertaining to the misapplication of the medical use of marijuana.

(c) No person shall be subject to arrest or prosecution for simply being in the presence or vicinity of the medical use of marijuana as permitted under this part."

SECTION 5. Act 178, Session Laws of Hawaii 2013, is amended by amending section 4 to read as follows:

"SECTION 4. Section 329-123, Hawaii Revised Statutes, is amended to read as follows:

"§329-123 Registration requirements. (a) The department shall require the registration of all qualifying patients, primary caregivers, dispensaries, and dispensary agents pursuant to this part.

(b) As part of the registration process, the department shall require a qualifying patient to:

(1) Designate the dispensary from which the qualifying patient will receive an adequate supply of medical marijuana; provided that the qualifying patient may change the destination within fourteen days written notice to the department; and

(2) Provide a copy of the physician's written certification for the qualifying patient's use of medical marijuana.

(c) The department shall issue nontransferable registration identification cards to registered persons and entities, which may be presented to and used by law enforcement officers to confirm whether a person or entity is authorized to administer, cultivate, dispense, distribute, or possess medical marijuana, or manufacture, possess, or distribute paraphernalia pursuant to this part.

(d) Physicians 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 primary care physician as specifically required or permitted by this [~~chapter.~~] part. The form shall require the address of the location where the marijuana is grown and shall appear on the registry card issued by the department of health. The certifying physician shall be [~~required to be~~] the qualifying patient's primary care physician. All current active medical marijuana permits shall be honored through their expiration date.

[~~(b) Qualifying patients shall register with the department of health.~~] (e) The registration for a qualifying patient shall be effective until the expiration of the certificate issued by the department of health and signed by the physician. Every qualifying patient shall provide sufficient identifying information to establish the personal identities of the qualifying patient and the primary caregiver. Qualifying patients shall report changes in information within ten working days. Every qualifying patient shall have only one primary caregiver at any given time. The department of health shall issue to the qualifying patient a registration certificate[,] and shall charge a registration fee of $35 per year.

[~~(c) Primary caregivers shall register with the department of health.~~] (f) Every primary caregiver shall be responsible for the care of only one qualifying patient at any given time.

[~~(d)~~] (g) Upon inquiry by a law enforcement agency, which inquiry may be made twenty-four hours a day, seven days a week, the department of health shall immediately verify whether the subject of the inquiry has registered with the department of health and may provide reasonable access to the registry information for official law enforcement purposes.""

SECTION 6. The department of public safety shall facilitate the transfer of functions pursuant to this Act by collaborating with, cooperating with, and assisting the department of health with assuming jurisdiction of and responsibility for the medical marijuana program as contained in this Act.

To facilitate the transfer of functions pursuant to this Act, until all relevant records are transferred to the department of health, the duties of the department of public safety shall include but not be limited to maintaining a confirmation service of the registration and certification of physicians, qualifying patients, and primary caregivers, pursuant to section 329-123, Hawaii Revised Statutes, that is operating twenty-four hours per day and seven days per week, and is accessible to the department of health.

SECTION 7. All rights, powers, functions, and duties of the department of public safety relating to the medical use of marijuana under chapter 329, part IX, Hawaii Revised Statutes, are transferred to the department of health.

All employees who occupy civil service positions and whose functions are transferred to the department of health by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The director of health may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

SECTION 8. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of public safety relating to the functions transferred to the department of health shall be transferred with the functions to which they relate.

SECTION 9. All designated forms for written certifications issued by the department of public safety shall be valid until the date of expiration under the department of health until the department of health issues new designated forms.

SECTION 10. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of public safety to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department health by this Act shall remain in full force and effect until amended or repealed by the department of health pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the department of public safety or director of public safety in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of health or director of health, as appropriate.

SECTION 11. In codifying the new sections added by section 2 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 12. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 13. This Act shall take effect on January 2, 2015.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1587
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII