HB2729 SD1

PART I

SECTION 1. The legislature finds that any reciprocity process for out-of-state medical cannabis patients must meet specific criteria that upholds the integrity and rigor of the State's medical cannabis program. A reciprocity program in Hawaii must: not significantly diminish the safety and security aspects of Hawaii's approach to medical cannabis; be implemented in a way that is fair and equitable to Hawaii medical cannabis patients, and not confer greater access to out-of-state medical cannabis patients than to Hawaii medical cannabis patients; provide a timely process for qualifying out-of-state patients who visit Hawaii to legally obtain medical cannabis from Hawaii-licensed medical cannabis dispensaries; and provide protection from state law enforcement for registered qualifying out-of-state patients who possess medical cannabis in Hawaii.

The legislature further finds that under existing law, a qualifying patient's written certification for the medical use of cannabis is valid for only one year from the time of signing. However, many of the debilitating medical conditions that qualify a patient for a written certification are chronic in nature, and there is some concern that annual renewal requirements may result in a lapse in treatment for some qualifying patients.

The legislature also finds that certain other amendments to the State's existing laws on cannabis for medical use and medical cannabis dispensaries are necessary to ensure appropriate safeguards and protections for qualifying patients and primary caregivers and provide medical cannabis dispensaries with a mechanism to retest batches of cannabis or manufactured cannabis products in certain situations.

Accordingly, the purpose of this part is to:

(1) Establish a reciprocity process for medical cannabis patients, which requires the department of health to register qualifying out-of-state patients and caregivers of qualifying out-of-state patients under certain conditions;

(2) Clarify certain safeguards for qualifying out-of-state patients and caregivers of qualifying out-of-state patients;

(3) Authorize the department of health to extend the maximum period of validity of any written certification to three years for debilitating medical conditions that are chronic;

(4) Clarify a dispensary licensee's ability to retest, at its own expense, a batch of cannabis or manufactured cannabis products that do not meet the department of health's standards for patient safety; and

(5) Prohibit an employer from suspending, discharging, or discriminating against an employee for testing positive for cannabis if the employee is a registered qualifying patient who is authorized for the medical use of cannabis, with certain exceptions.

SECTION 2. 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- Registration requirements; qualifying out-of-state patient; caregiver of a qualifying out-of-state patient. (a) Notwithstanding section 329‑123, a qualifying out-of-state patient and a caregiver of a qualifying out-of-state patient shall register with the department of health as established by rule. The registration shall be effective for no more than sixty days and may be renewed for no more than one additional sixty-day period within twelve months of the preceding registration date; provided that the department shall not register any qualifying out-of-state patient for a period that exceeds the term of validity of the qualifying out-of-state patient's authority to use medical cannabis in the qualifying out-of-state patient's home jurisdiction.

(b) Qualifying out-of-state patients shall, at a minimum, meet the following criteria for registration:

(1) Provide a valid government-issued medical cannabis card issued by another state, United States territory, or the District of Columbia; provided that the medical cannabis card has an expiration date and has not expired;

(2) Provide a valid photographic identification card or driver's license issued by the same jurisdiction that issued the medical cannabis card; and

(3) Have a debilitating medical condition, as defined in section 329-121.

(c) Subsection (b) shall not apply to a qualifying out-of-state patient under eighteen years of age, unless the caregiver of a qualifying out-of-state patient consents in writing to:

(1) Allow the qualifying out-of-state patient's medical use of cannabis;

(2) Undertake the responsibility for managing the well-being of the qualifying out-of-state patient who is under eighteen years of age, with respect to the medical use of cannabis; and

(3) Control the acquisition of the cannabis, the dosage, and the frequency of the medical use of cannabis by the qualifying out-of-state patient who is under eighteen years of age.

(d) In the case of qualifying out-of-state patients who are under eighteen years of age, the department shall register the qualifying out-of-state patient and the caregiver of a qualifying out-of-state patient.

(e) Qualifying out-of-state patients shall pay a registration or renewal fee of $45.

(f) Upon inquiry by a law enforcement agency, 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. The inquiry under this subsection may be made twenty-four hours a day, seven days a week.

(g) The department of health may temporarily suspend the registration of a qualifying out-of-state patient or a registered caregiver of a qualifying out-of-state patient for a period of up to thirty days if the department of health determines that the registration process for qualifying patients or primary caregivers is being adversely affected or the supply of cannabis for medical use available in licensed dispensaries is insufficient to serve qualifying patients and qualifying out-of-state patients. A temporary suspension may be extended by thirty-day periods until the department of health finds that:

(1) Adequate capacity exists to register qualifying out-of-state patients and caregivers of qualifying out-of-state patients in addition to qualifying patients and primary caregivers; and

(2) The licensed dispensaries are able to meet the demands of qualifying patients."

SECTION 3. Section 321-30.1, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The department, upon completion of the transfer of the medical use of cannabis program, shall charge a medical cannabis registration fee to qualifying patients of no more than $35[.] per year."

SECTION 4. Section 329-121, Hawaii Revised Statutes, is amended as follows:

1. By adding two new definitions to be appropriately inserted and to read:

""Caregiver of a qualifying out-of-state patient" means a parent, guardian, or person having legal custody of a qualifying out-of-state patient who is under the age of eighteen years.

"Qualifying out-of-state patient" or "registered qualifying out-of-state patient" means a person who is registered for the medical use of cannabis in another state, a United States territory, or the District of Columbia."

2. By amending the definition of "medical use" to read:

""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 a registered qualifying out-of-state patient shall not be authorized to cultivate, distribute, or transport cannabis or paraphernalia; provided further that a registered caregiver of a qualifying out-of-state patient shall not be authorized to cultivate, use, distribute, or transport cannabis or paraphernalia. For the purposes of "medical use", the term distribution is limited to the transfer of cannabis and paraphernalia."

3. By amending the definition of "written certification" to read:

""Written certification" means the qualifying patient's medical records or a statement signed by a qualifying patient's physician or advanced practice registered nurse, stating that in the physician's or advanced practice registered nurse's professional opinion, the qualifying patient has a debilitating medical condition and the potential benefits of the medical use of cannabis would likely outweigh the health risks for the qualifying patient. The department of health may require, through its rulemaking authority, that all written certifications comply with a designated form. "Written certifications" are valid for [~~only~~] one year from the time of signing[.]; provided that the department of health may allow any written certification to be valid for up to three years when the qualifying patient's physician or advanced practice registered nurse states that the debilitating medical condition is chronic in nature."

SECTION 5. Section 329-122, Hawaii Revised Statutes, is amended to read as follows:

"§329-122 Medical use of cannabis; conditions of use. (a) Notwithstanding any law to the contrary, the medical use of cannabis by a qualifying patient shall be permitted only if:

(1) The qualifying patient has been diagnosed by a physician or advanced practice registered nurse as having a debilitating medical condition;

(2) The qualifying patient's physician or advanced practice registered nurse has certified in writing that, in the physician's or advanced practice registered nurse's professional opinion, the potential benefits of the medical use of cannabis would likely outweigh the health risks for the particular qualifying patient; and

(3) The amount of cannabis possessed by the qualifying patient does not exceed an adequate supply.

(b) Subsection (a) shall not apply to a qualifying patient under the age of eighteen years, unless:

(1) The qualifying patient's physician or advanced practice registered nurse has explained the potential risks and benefits of the medical use of cannabis to the qualifying patient and to a parent, guardian, or person having legal custody of the qualifying patient; and

(2) A parent, guardian, or person having legal custody consents in writing to:

(A) Allow the qualifying patient's medical use of cannabis;

(B) Serve as the qualifying patient's primary caregiver; and

(C) Control the acquisition of the cannabis, the dosage, and the frequency of the medical use of cannabis by the qualifying patient.

(c) Notwithstanding any law to the contrary, the medical use of cannabis by a qualifying out-of-state patient who is legally authorized to use cannabis for medical purposes in another state, a United States territory, or the District of Columbia shall be permitted only if the qualifying out-of-state patient:

(1) Provides to the department of health a valid medical use of cannabis card from the issuing jurisdiction and a valid photographic identification card or driver's license issued by the same jurisdiction;

(2) Attests under penalty of law pursuant to section 710‑1063 that the condition for which the qualifying out-of-state patient is legally authorized to use cannabis for medical purposes is a debilitating medical condition as defined in section 329-121;

(3) Provides consent for the department of health to obtain information from the qualifying out-of-state patient's certifying medical provider and from the entity that issued the medical cannabis card for the purpose of allowing the department of health to verify the information provided in the registration process;

(4) Pays the required fee for out-of-state registration to use cannabis for medical purposes;

(5) Registers with the department of health to use cannabis for medical purposes;

(6) Receives a medical use of cannabis card from the department of health; and

(7) Abides by all laws relating to the medical use of cannabis, including not possessing an amount of cannabis that exceeds an adequate supply.

(d) Subsection (c) shall not apply to a qualifying out-of-state patient under eighteen years of age, unless:

(1) A caregiver of a qualifying out-of-state patient provides the information required pursuant to subsection (c); and

(2) A caregiver of a qualifying out-of-state patient consents in writing to:

(A) Allow the qualifying out-of-state patient's medical use of cannabis;

(B) Undertake the responsibility for managing the well-being of the qualifying out-of-state patient who is under eighteen years of age with respect to the medical use of cannabis; and

(C) Control the acquisition of the cannabis, the dosage, and the frequency of the medical use of cannabis by the qualifying out-of-state patient who is under eighteen years of age.

[~~(c)~~] (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, [or], 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.

[~~(d)~~] (f) For the purposes of this section, "transport" means the transportation of cannabis, usable cannabis, or any manufactured cannabis product between:

(1) A qualifying patient and the qualifying patient's primary caregiver;

(2) A qualifying out-of-state patient under eighteen years of age and the caregiver of a qualifying out-of-state patient;

[~~(2)~~] (3) The production centers and the retail dispensing locations under a dispensary licensee's license; or

[~~(3)~~] (4) A production center, retail dispensing location, qualifying patient, [or], primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient and a certified laboratory for the purpose of laboratory testing; provided that a qualifying patient [or], primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient may only transport up to one gram of cannabis per test to a certified laboratory for laboratory testing and may only transport the product if the qualifying patient [or], primary caregiver[:], qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient:

(A) Secures an appointment for testing at a certified laboratory;

(B) Obtains confirmation, which may be electronic, that includes the specific time and date of the appointment and a detailed description of the product and amount to be transported to the certified laboratory for the appointment; and

For purposes of interisland transportation, "transport" of cannabis, usable cannabis, or any manufactured cannabis product, by any means is allowable only between a production center or retail dispensing location and a certified laboratory for the sole purpose of laboratory testing pursuant to section 329D-8, as permitted under section 329D-6(m) and subject to section 329D‑6(j), and with the understanding that state law and its protections do not apply outside of the jurisdictional limits of the State. Allowable transport pursuant to this section does not include interisland transportation by any means or for any purpose between a qualified patient [or], primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient and any other entity or individual, including an individual who is a qualified patient [or], primary caregiver[.], qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient."

SECTION 6. Section 329-123, Hawaii Revised Statutes, is amended to read as follows:

"§329-123 Registration requirements[.]; qualifying patients; primary caregivers. (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. 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.

(b) Qualifying patients shall register with the department of health. The registration shall be effective until the expiration of the certificate issued by the department of health and signed by the physician or advanced practice registered nurse. 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 $35 per year.

(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 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.

(d) 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.

(e) This section shall not apply to registration of a qualifying out-of-state patient or a caregiver of a qualifying out-of-state patient."

SECTION 7. Section 329-125, Hawaii Revised Statutes, is amended by amending its title and subsections (a) and (b) to read as follows:

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

(b) Any qualifying patient [or], 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."

SECTION 8. Section 329-125.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§329-125.5[]] Medical cannabis patient and caregiver protections. (a) No school shall refuse to enroll or otherwise penalize, and no landlord shall refuse to lease property to or otherwise penalize, a person solely for the person's status as a qualifying patient or primary caregiver in the medical cannabis program under this part, unless failing to do so would cause the school or landlord to lose a monetary or licensing-related benefit under federal law or regulation; provided that the qualifying patient or primary caregiver strictly complied with the requirements of this part; provided further that the qualifying patient or primary caregiver shall present a medical cannabis registry card or certificate and photo identification, to ensure that the qualifying patient or primary caregiver is validly registered with the department of health pursuant to section 329-123.

(b) For the purposes of medical care, including organ transplants, a registered qualifying patient's use of cannabis in compliance with this part shall be considered the equivalent of the use of any other medication under the direction of a physician and shall not constitute the use of an illicit substance or otherwise disqualify a registered qualifying patient from medical care.

(c) No qualifying patient or primary caregiver under this part shall be denied custody of, visitation with, or parenting time with a minor, and there shall be no presumption of neglect or child endangerment, for conduct allowed under this part; provided that this subsection shall not apply if the qualifying patient's or primary caregiver's conduct created a danger to the safety of the minor, as established by a preponderance of the evidence.

(d) No employer shall suspend, discharge, or discriminate against any of the employer's employees solely because an employee, who is a registered qualifying patient authorized for the medical use of cannabis pursuant to sections 329-122 and 329-123, tested positive for the presence of cannabis in a substance abuse on-site screening test conducted in accordance with section 329B-5.5; provided that this subsection shall not apply to:

(1) An employee who fails or refuses to report to a laboratory for a substance abuse test pursuant to section 329B-5.5;

(2) An employee who is in violation of section 329-122(c)(2)(B);

(3) An employee who is a law enforcement officer with the State or a county or who works in any state correctional facility;

(4) An employee whose job requires the employee to not be under the influence of substances, such as a bus driver, a heavy machinery operator, a construction worker, or other employee with a job that has safety issues; or

(5) An employee whose employer would be in violation of any federal law or regulation by having an employee who tested positive for the presence of cannabis as set forth in this subsection.

(e) This section shall apply to a qualifying patient, primary caregiver, qualifying out-of-state patient, and caregiver of a qualifying out-of-state patient who are validly registered with the department of health pursuant to this part and the administrative rules of the department of health."

SECTION 9. Section 329-127, Hawaii Revised Statutes, is amended to read as follows:

"[[]§329-127[]] Protection of cannabis and other seized property. (a) Cannabis, paraphernalia, or other property seized from a qualifying patient or primary caregiver in connection with a claimed medical use of cannabis under this part shall be returned immediately upon the determination by a court that the qualifying patient or primary caregiver is entitled to the protections of this part, as evidenced by a decision not to prosecute, dismissal of charges, or an acquittal; provided that law enforcement agencies seizing live plants as evidence shall not be responsible for the care and maintenance of such plants.

(b) This section shall also apply to a qualifying out-of-state patient and caregiver of a qualifying out-of-state patient who are validly registered with the department of health pursuant to this part and the administrative rules of the department of health; provided that notwithstanding subsection (a) to the contrary, under no circumstances shall cannabis, paraphernalia, or other property be returned to any location outside of the island from which it was seized."

SECTION 10. Section 329-128, Hawaii Revised Statutes, is amended to read as follows:

"§329-128 Fraudulent misrepresentation; penalty. (a) Notwithstanding any law to the contrary, fraudulent misrepresentation to a law enforcement official of any fact or circumstance relating to the medical use of cannabis to avoid arrest or prosecution under this part or chapter 712 shall be a petty misdemeanor and subject to a fine of $500.

(b) Notwithstanding any law to the contrary, fraudulent misrepresentation to a law enforcement official of any fact or circumstance relating to the issuance of a written certificate by a physician or advanced practice registered nurse not covered under section 329-126 for the medical use of cannabis shall be a misdemeanor. This penalty shall be in addition to any other penalties that may apply for the non-medical use of cannabis. [~~Nothing in this section is intended to preclude the conviction of any person under section 710-1060 or for any other offense under part V of chapter 710.~~]

(c) Notwithstanding any law to the contrary, fraudulent misrepresentation to the department of an entitlement to use cannabis for medical purposes in another state, a United States territory, or the District of Columbia for the purpose of registering as a qualifying out-of-state patient or caregiver of a qualifying out-of-state patient shall be a misdemeanor. This penalty shall be in addition to any other penalties that may apply for the non-medical use of cannabis.

(d) Nothing in this section is intended to preclude the conviction of any person under section 710-1060 or for any other offense under part V of chapter 710 or any other offense."

SECTION 11. Section 329-129, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) No qualifying patient [or], primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient shall use butane to extract tetrahydrocannabinol from cannabis plants."

SECTION 12. Section 329-130, Hawaii Revised Statutes, is amended to read as follows:

"§329-130 Authorized sources of medical cannabis. (a) After December 31, 2023, 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 qualifying patients.

After December 31, 2023, no primary caregiver shall be authorized to cultivate cannabis for any qualifying patient.

(b) This section shall not apply to:

(1) A qualifying patient who is a minor or an adult lacking legal capacity and the primary caregiver is the parent, guardian, or person having legal custody of a qualifying patient described in this paragraph; or

(2) A qualifying patient on any island on which there is no medical cannabis dispensary licensed pursuant to chapter 329D.

(c) A qualifying out-of-state patient and a caregiver of a qualifying out-of-state patient shall only be authorized to obtain cannabis for medical use from retail dispensing locations of dispensaries licensed pursuant to chapter 329D."

SECTION 13. Section 329D-1, Hawaii Revised Statutes, is amended as follows:

1. By adding two new definitions to be appropriately inserted and to read:

""Caregiver of a qualifying out-of-state patient" shall have the same meaning as in section 329-121.

"Qualifying out-of-state patient" or "registered qualifying out-of-state patient" shall have the same meaning as in section 329-121."

2. By amending the definition of "dispense" or "dispensing" to read:

""Dispense" or "dispensing" means the act of a licensed dispensary providing cannabis or manufactured cannabis products to a qualifying patient [~~or a~~], primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient for a fee."

3. By amending the definition of "manufacture" to read:

""Manufacture" means the preparation, propagation, compounding, conversion, or processing of a substance containing cannabis or its principal psychoactive constituent tetrahydrocannabinol, either directly or indirectly, by a person other than a qualifying patient [or], primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient for the qualifying patient's or qualifying out of state patient's use, by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container."

4. By amending the definition of "retail dispensing location" to read:

""Retail dispensing location" means an establishment owned, operated, or subcontracted by a medical cannabis dispensary where cannabis and manufactured cannabis are made available for retail sale to a qualifying [~~patients or~~] patient, primary [~~caregivers.~~] caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient."

SECTION 14. Section 329D-6, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (g) to read:

"(g) In all dispensary facilities, only the licensee, if an individual, registered employees of the dispensary licensee, registered employees of a subcontracted production center or retail dispensing location, employees of a certified laboratory for testing purposes, state employees authorized by the director of health, and law enforcement and other government officials acting in their official capacity shall be permitted to touch or handle any cannabis or manufactured cannabis products, except that a qualifying patient [~~or the~~], primary caregiver [~~of a qualifying patient~~], qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient may receive manufactured cannabis products at a retail dispensing location following completion of a sale."

2. By amending subsections (j) and (k) to read:

"(j) The department shall establish, maintain, and control a computer software tracking system that shall have real time, twenty-four-hour access to the data of all dispensaries.

(1) The computer software tracking system shall collect data relating to:

(A) The total amount of cannabis in possession of all dispensaries from either seed or immature plant state, including all plants that are derived from cuttings or cloning, until the cannabis, cannabis plants, or manufactured cannabis product is sold or destroyed pursuant to section 329D-7;

(B) The total amount of manufactured cannabis product inventory, including the equivalent physical weight of cannabis that is used to manufacture manufactured cannabis products, purchased by a qualifying patient [~~and~~], primary caregiver, qualifying out-of-state patient, and caregiver of a qualifying out-of-state patient from all retail dispensing locations in the State in any fifteen-day period;

(D) The transport of cannabis and manufactured cannabis products between production centers and retail dispensing locations, including tracking identification issued by the tracking system, the identity of the person transporting the cannabis or manufactured cannabis products, and the make, model, and license number of the vehicle being used for the transport;

(2) The procurement of the computer software tracking system established pursuant to this subsection shall be exempt from chapter 103D; provided that:

(A) The department shall publicly solicit at least three proposals for the computer software tracking system; and

(B) The selection of the computer software tracking system shall be approved by the director of the department and the chief information officer; and

(3) Notwithstanding any other provision of this subsection to the contrary, once the department has authorized a licensed dispensary to commence sales of cannabis or manufactured cannabis products, if the department's computer software tracking system is inoperable or is not functioning properly, as an alternative to requiring dispensaries to temporarily cease operations, the department may implement an alternate tracking system that will enable a qualifying [~~patients~~] patient, primary caregiver, qualifying out-of-state patient, and caregiver of a qualifying out-of-state patient to purchase cannabis or manufactured cannabis products from a licensed dispensary on a temporary basis. The department shall seek input regarding the alternate tracking system from medical cannabis licensees. The alternate tracking system may operate as follows:

(A) The department may immediately notify all licensed dispensaries that the computer software tracking system is inoperable; and

(B) Once the computer software tracking system is operational and functioning to meet the requirements of this subsection, the department may notify all licensed dispensaries, and the alternate tracking system in this subsection shall be discontinued.

(k) A dispensary licensed pursuant to this chapter shall purchase, operate, and maintain a computer software tracking system that shall:

(1) Interface with the department's computer software tracking system established pursuant to subsection (j);

(2) Allow each licensed dispensary's production center to submit to the department in real time, by automatic identification and data capture, all cannabis, cannabis plants, and manufactured cannabis product inventory in possession of that dispensary from either seed or immature plant state, including all plants that are derived from cuttings or cloning, until the cannabis or manufactured cannabis product is sold or destroyed pursuant to section 329D-7;

(3) Allow the licensed dispensary's retail dispensing location to submit to the department in real time for the total amount of cannabis and manufactured cannabis product purchased by a qualifying patient [~~and~~], primary caregiver, qualifying out-of-state patient, and caregiver of a qualifying out-of-state patient from the dispensary's retail dispensing locations in the State in any fifteen day period; provided that the software tracking system shall impose an automatic stopper in real time, which cannot be overridden, on any further purchases of cannabis or manufactured cannabis products, if the maximum allowable amount of cannabis has already been purchased for the applicable fifteen day period; provided further that additional purchases shall not be permitted until the next applicable period; and

(4) Allow the licensed dispensary to submit all data required by this subsection to the department and permit the department to access the data if the department's computer software tracking system is not functioning properly and sales are made pursuant to the alternate tracking system under subsection (j)."

3. By amending subsection (n) to read:

"(n) A dispensary shall be prohibited from off-premises delivery of cannabis or manufactured cannabis products to a qualifying [~~patients or to~~] patient, primary [~~caregivers of qualifying patients.~~] caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient."

SECTION 15. Section 329D-7, Hawaii Revised Statutes, is amended to read as follows:

"§329D-7 Medical cannabis dispensary rules. The department shall establish standards with respect to:

(1) The number of medical cannabis dispensaries that shall be permitted to operate in the State;

(2) A fee structure for the submission of applications and renewals of licenses to dispensaries; provided that the department shall consider the market conditions in each county in determining the license renewal fee amounts;

(3) Criteria and procedures for the consideration and selection, based on merit, of applications for licensure of dispensaries; provided that the criteria shall include but not be limited to an applicant's:

(A) Ability to operate a business;

(B) Financial stability and access to financial resources; provided that applicants for medical cannabis dispensary licenses shall provide documentation that demonstrates control of not less than $1,000,000 in the form of escrow accounts, letters of credit, surety bonds, bank statements, lines of credit or the equivalent to begin operating the dispensary;

(D) Capacity to meet the needs of qualifying patients[;] and qualifying out-of-state patients;

(E) Ability to comply with criminal background check requirements developed pursuant to paragraph (8); and

(F) Ability to comply with inventory controls developed pursuant to paragraph (13);

(4) Specific requirements regarding annual audits and reports required from each production center and dispensary licensed pursuant to this chapter;

(5) Procedures for announced and unannounced inspections by the department or its agents of production centers and dispensaries licensed pursuant to this chapter; provided that inspections for license renewals shall be unannounced;

(6) Security requirements for the operation of production centers and retail dispensing locations; provided that, at a minimum, the following shall be required:

(A) For production centers:

(i) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;

(ii) Fencing that surrounds the premises and that is sufficient to reasonably deter intruders and prevent anyone outside the premises from viewing any cannabis in any form;

(iii) An alarm system; and

(iv) Other reasonable security measures to deter or prevent intruders, as deemed necessary by the department;

(B) For retail dispensing locations:

(i) Presentation of a valid government-issued photo identification and a valid identification as issued by the department pursuant to section 329-123[,] by a qualifying patient or caregiver, or section 329- by a qualifying out-of-state patient or caregiver of a qualifying out-of-state patient, upon entering the premises;

(ii) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;

(iii) An alarm system;

(iv) Exterior lighting; and

(v) Other reasonable security measures as deemed necessary by the department;

(7) Security requirements for the transportation of cannabis and manufactured cannabis products between production centers and retail dispensing locations and between a production center, retail dispensing location, qualifying patient, [or] primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient and a certified laboratory, pursuant to section 329‑122(d);

(8) Standards and criminal background checks to ensure the reputable and responsible character and fitness of all license applicants, licensees, employees, subcontractors and their employees, and prospective employees of medical cannabis dispensaries to operate a dispensary; provided that the standards, at a minimum, shall exclude from licensure or employment any person convicted of any felony;

(9) The training and certification of operators and employees of production centers and dispensaries;

(10) The types of manufactured cannabis products that dispensaries shall be authorized to manufacture and sell pursuant to sections 329D-9 and 329D-10;

(11) Laboratory standards related to testing cannabis and manufactured cannabis products for content, contamination, and consistency;

(12) The quantities of cannabis and manufactured cannabis products that a dispensary may sell or provide to a qualifying patient [or], primary caregiver[;], qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient; provided that no dispensary shall sell or provide to a qualifying patient [or], primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient any combination of cannabis and manufactured products that:

(A) During a period of fifteen consecutive days, exceeds the equivalent of four ounces of cannabis; or

(B) During a period of thirty consecutive days, exceeds the equivalent of eight ounces of cannabis;

(13) Dispensary and production center inventory controls to prevent the unauthorized diversion of cannabis or manufactured cannabis products or the distribution of cannabis or manufactured cannabis products to a qualifying [~~patients or~~] patient, primary [~~caregivers~~] caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient in quantities that exceed limits established by this chapter; provided that the controls, at a minimum, shall include:

(A) A computer software tracking system as specified in section 329D-6(j) and (k); and

(B) Product packaging standards sufficient to allow law enforcement personnel to reasonably determine the contents of an unopened package;

(14) Limitation to the size or format of signs placed outside a retail dispensing location or production center; provided that the signage limitations, at a minimum, shall comply with section 329D-6(o)(2) and shall not include the image of a cartoon character or other design intended to appeal to children;

(15) The disposal or destruction of unwanted or unused cannabis and manufactured cannabis products;

(16) The enforcement of the following prohibitions against:

(A) The sale or provision of cannabis or manufactured cannabis products to unauthorized persons;

(B) The sale or provision of cannabis or manufactured cannabis products to a qualifying [~~patients or~~] patient, primary [~~caregivers~~] caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient in quantities that exceed limits established by this chapter;

(C) Any use or consumption of cannabis or manufactured cannabis products on the premises of a retail dispensing location or production center; and

(D) The distribution of cannabis or manufactured cannabis products, for free, on the premises of a retail dispensing location or production center;

(17) The establishment of a range of penalties for violations of this chapter or rule adopted thereto; and

(18) A process to recognize and register patients who are authorized to purchase, possess, and use medical cannabis in another state, a United States territory, or the District of Columbia as qualifying out-of-state patients [~~in this State~~]; provided that this registration process may commence no sooner than January 1, 2018."

SECTION 16. Section 329D-8, Hawaii Revised Statutes, is amended to read as follows:

"§329D-8 Laboratory standards and testing; laboratory certification. (a) The department shall establish and enforce standards for laboratory-based testing of cannabis and manufactured cannabis products for content, contamination, and consistency; provided that in establishing these standards, the department shall:

(1) Review and take guidance from the testing programs and standards utilized in other jurisdictions;

(2) Consider the impact of the standards on the retail cost of the product to the qualifying patient;

(3) Review and take guidance from the testing programs and standards for pesticides under the regulations of the United States Environmental Protection Agency;

(4) For the testing for microbiological impurities, consider the benefits of organically grown cannabis that features the use of bacteria in lieu of pesticides; and

(5) Include permission for qualifying patients and primary caregivers to obtain testing services directly from certified laboratories on the island where the qualifying patient and primary caregiver reside.

(b) The department may certify laboratories that can test cannabis and manufactured cannabis products prior to the sale of cannabis and manufactured cannabis products.

(c) If a dispensary licensee obtains a laboratory result indicating that a sample of a batch of its cannabis or manufactured cannabis products does not meet the department's standards for patient safety, the dispensary licensee, at its own expense, may have the same sample or a different sample from the same batch retested by the same laboratory or a different laboratory. If a retest at a different laboratory yields a different result, the department shall have an opportunity to determine which result shall determine whether the batch may be approved for sale or whether further testing shall be required."

SECTION 17. Section 329D-12, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) This section shall not apply to:

(1) [~~Qualifying patients and their~~] A qualifying patient, primary [~~caregivers~~] caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient who [~~enter~~] enters or [~~remain~~] remains on the premises of a retail dispensing location for the purpose of a transaction conducted pursuant to sections 329D-6 and 329D-13; or

(2) Government officials and employees acting in an official capacity and employees of a certified laboratory who enter or remain on the premises of a retail dispensing location or production center for any purpose authorized by this chapter."

SECTION 18. Section 329D-13, Hawaii Revised Statutes, is amended to read as follows:

"[[]§329D-13[~~] Qualifying patients and primary caregivers; dispensing~~] Dispensing limits[~~; other states~~]. (a) A qualifying patient [~~or a~~], primary caregiver [~~on behalf of a qualifying patient~~], qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient shall be allowed to purchase no more than four ounces of cannabis within a consecutive period of fifteen days, or no more than eight ounces of cannabis within a consecutive period of thirty days.

(b) A qualifying patient [~~or a~~], primary caregiver [~~on behalf of a qualifying patient~~], qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient may purchase cannabis from any dispensary location in the State, subject to the limits set forth in subsection (a).

(c) Beginning on January 1, 2018, this section may apply to qualifying out-of-state patients from other states, territories of the United States, or the District of Columbia; provided that the patient [~~is verified as a patient in their home state and registers with the department through a registration process established by the department.~~] meets the registration requirements of section 329- ."

SECTION 19. Section 329D-15, Hawaii Revised Statutes, is amended by amending subsection (a) 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 [or], primary caregiver [~~of a qualifying patient;~~], 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 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 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;

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

(F) The person is only permitted within the dispensary facility 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, 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."

SECTION 20. Section 329D-17, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) A person commits the offense of promoting medical cannabis or medical cannabis products to a minor if the person intentionally or knowingly distributes any amount of cannabis or manufactured cannabis products that came from a dispensary or production center to a minor who is not a registered qualifying patient[.] or a registered qualifying out-of-state patient under eighteen years of age."

SECTION 21. Section 329D-24, Hawaii Revised Statutes, is amended to read as follows:

"[[]§329D-24[]] Cultivation of medical cannabis by qualifying patients and primary caregivers. Nothing in this chapter shall be construed as prohibiting a qualifying patient or primary caregiver from cultivating or possessing an adequate supply of medical cannabis pursuant to part IX of chapter 329.

A qualifying out-of-state patient or a caregiver of a qualifying out-of-state patient shall not be authorized to cultivate cannabis."

SECTION 22. Section 329D-25, Hawaii Revised Statutes, is amended to read as follows:

"[[]§329D-25[]] Coordination among state and federal agencies. The department shall initiate ongoing dialogue among relevant state and federal agencies to identify processes and policies that ensure the privacy of qualifying patients and qualifying out-of-state patients and the compliance of qualifying patients, primary caregivers, qualifying out-of-state patients, and caregivers of qualifying out-of-state patients and medical cannabis dispensaries with state laws and regulations related to medical cannabis."

SECTION 23. Section 378-32, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) It shall be unlawful for any employer to suspend, discharge, or discriminate against any of the employer's employees:

(1) Solely because the employer was summoned as a garnishee in a cause where the employee is the debtor or because the employee has filed a petition in proceedings for a wage earner plan under chapter XIII of the Bankruptcy Act;

(2) Solely because the employee has suffered a work injury which arose out of and in the course of the employee's employment with the employer and which is compensable under chapter 386 unless the employee is no longer capable of performing the employee's work as a result of the work injury and the employer has no other available work which the employee is capable of performing. Any employee who is discharged because of the work injury shall be given first preference of reemployment by the employer in any position which the employee is capable of performing and which becomes available after the discharge and during the period thereafter until the employee secures new employment. This paragraph shall not apply to any employer in whose employment there are less than three employees at the time of the work injury or who is a party to a collective bargaining agreement which prevents the continued employment or reemployment of the injured employee;

(3) Because the employee testified or was subpoenaed to testify in a proceeding under this part; [or]

(4) Because an employee tested positive for the presence of drugs, alcohol, or the metabolites of drugs in a substance abuse on-site screening test conducted in accordance with section 329B-5.5; provided that this [~~provision~~] paragraph shall not apply to an employee who fails or refuses to report to a laboratory for a substance abuse test pursuant to section 329B-5.5[.]; or

(5) Solely because an employee, who is a registered qualifying patient authorized for the medical use of cannabis pursuant to sections 329-122 and 329-123, tested positive for the presence of cannabis in a substance abuse on-site screening test conducted in accordance with section 329B-5.5; provided that this paragraph shall not apply to:

(A) An employee who fails or refuses to report to a laboratory for a substance abuse test pursuant to section 329B-5.5;

(B) An employee who is in violation of section 329‑122(c)(2)(B);

(C) An employee whose job requires the employee to not be under the influence of substances, such as a bus driver, a heavy machinery operator, a construction worker, or other employee with a job that has safety issues; or

(D) An employee whose employer would be in violation of any federal law or regulation by having an employee who tested positive for the presence of cannabis as set forth in this paragraph."

PART II

SECTION 24. The legislature finds that Act 241, Session Laws of Hawaii 2015, codified as chapter 329D, Hawaii Revised Statutes, established a license scheme for a statewide system of medical cannabis dispensaries to ensure access to medical cannabis for qualifying patients and was later amended by Act 230, Session Laws of Hawaii 2016, and Acts 41 and 170, Session Laws of Hawaii 2017.

The legislature further finds that additional amendments to the law are necessary to allow for adequate patient access based on discussions of the working group established by Act 230, Session Laws of Hawaii 2016.

The purpose of this part is to allow a bona fide physician-patient or advanced practice registered nurse-patient relationship to be established via telehealth.

SECTION 25. Section 329-126, Hawaii Revised Statutes, is amended to read as follows:

"§329-126 Protections afforded to a treating physician or advanced practice registered nurse. (a) No physician or advanced practice registered nurse shall be subject to arrest or prosecution, penalized in any manner, or denied any right or privilege for providing written certification for the medical use of cannabis for a qualifying patient; provided that:

(1) The physician or advanced practice registered nurse has diagnosed the patient as having a debilitating medical condition, as defined in section 329-121;

(2) The physician or advanced practice registered nurse has explained the potential risks and benefits of the medical use of cannabis, as required under section 329-122;

(3) The written certification is based upon the physician's or advanced practice registered nurse's professional opinion after having completed a full assessment of the patient's medical history and current medical condition made in the course of a bona fide physician-patient relationship or bona fide advanced practice registered nurse-patient relationship, as applicable; and

(4) The physician or advanced practice registered nurse has complied with the registration requirements of section 329-123.

(b) For purposes of this section, a bona fide physician-patient relationship may be established via telehealth, as defined in section 453-1.3(j), and a bona fide advanced practice registered nurse-patient relationship may be established via telehealth, as defined in section 457-2; provided that treatment recommendations that include certifying a patient for the medical use of cannabis via telehealth shall be allowed only after an initial in-person consultation between the certifying physician or advanced practice registered nurse and the patient."

SECTION 26. Section 453-1.3, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Treatment recommendations made via telehealth, including issuing a prescription via electronic means, shall be held to the same standards of appropriate practice as those in traditional physician-patient settings that do not include a face-to-face visit but in which prescribing is appropriate, including on-call telephone encounters and encounters for which a follow-up visit is arranged. Issuing a prescription based solely on an online questionnaire is not treatment for the purposes of this section and does not constitute an acceptable standard of care. For the purposes of prescribing opiates or certifying a patient for the medical use of cannabis, a physician-patient relationship shall only be established after an in-person consultation between the prescribing physician and the patient."

PART III

SECTION 27. The legislature finds that studies have shown the benefits of using cannabis to alleviate certain serious illnesses. The legislature further finds that several states permit the sales of edible cannabis products, either for recreational use or for medical use. These states generally place restrictions on the edible cannabis products, such as limiting the amount of psychoactive ingredients per serving, banning manufacturers from making candy-like edibles that might attract children, and requiring proper labeling.

The legislature additionally finds that medical cannabis products that provide safe pulmonary administration can allow for more precise dosage administration and can be more effective for certain patient. The legislature also finds that, as with all packaged products, smaller sizes are always more expensive for consumers than larger products. Under existing law, the tetrahydrocannabinol limit per pack or container of certain manufactured cannabis products may impact certain patients, many of whom may have conditions and symptoms that require larger doses of tetrahydrocannabinol for relief.

Accordingly, the purpose of this part is to:

(1) Legalize the manufacturing of edible cannabis products for medical purposes;

(2) Establish basic regulations on edible cannabis products;

(3) Add certain devices that provide safe pulmonary administration to the list of medical cannabis products that may be manufactured and distributed; and

(4) Increase the tetrahydrocannabinol limit per pack or container of certain manufactured cannabis products.

SECTION 28. Section 328-1, Hawaii Revised Statutes, is amended by amending the definition of "food" to read as follows:

""Food" means:

(1) Articles used for food or drink by humans, dogs, or cats;

(2) Chewing gum; or

(3) Articles used for components of any such article.

"Food" does not include edible cannabis products, as defined in section 329D-10."

SECTION 29. Section 329D-1, Hawaii Revised Statutes, is amended 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, such as an inhaler or nebulizer,] product that has been manufactured using cannabis[~~, or any other products as specified by the department~~] pursuant to section 329D-10[~~(a)(9)~~]."

SECTION 30. Section 329D-9, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The department shall establish health, safety, and sanitation standards regarding the manufacture of manufactured cannabis products[.]; provided that:

(1) Manufactured cannabis products shall only be manufactured in a facility that meets the minimum sanitary requirements adopted by the department of health that are at least equivalent to the standards for food establishments provided for in chapter 11-50, Hawaii Administrative Rules;

(2) Cannabis products shall not be manufactured in any facility permitted by the department of health as a food establishment; and

(3) Cannabis products shall not be manufactured in any home kitchen."

SECTION 31. Section 329D-10, Hawaii Revised Statutes, is amended to read as follows:

"§329D-10 Types of manufactured cannabis products. (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, such as with an inhaler or nebulizer; [~~and~~]

(9) Edible cannabis products;

(10) Devices that provide safe pulmonary administration; provided that:

(A) The heating element of the device is made of inert materials such as glass, ceramic, or stainless steel, and not of plastic or rubber;

(B) The device is distributed solely for use with single-use, disposable, 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 orally, such as a medical-grade inhaler, medical-grade nebulizer, or other medical grade volitization device; and

(D) There is a temperature control on the device that is regulated to prevent the combustion of cannabis oil; and

[~~(9)~~] (11) Other products as specified by the department.

(b) As used in this section[~~, "lozenge"~~]:

"Edible cannabis products" means manufactured cannabis products that are intended to be used, in whole or in part, for human consumption, including but not limited to chewing gum, drinks, baked products, and candy; provided that edible cannabis products:

(1) Shall be tested and specifically labeled for each product's dosage and strength;

(2) Shall not include products such as gummies, brightly colored candies, or other products that may attract children or bear resemblance to other commercially available products; and

(3) May include liquid products that contain no more than ten milligrams of activated tetrahydrocannabinol per serving.

"Lozenge" means a small tablet manufactured in a manner to allow for the dissolving of its medicinal or therapeutic component slowly in the mouth."

SECTION 32. Section 329D-11, Hawaii Revised Statutes, is amended to read as follows:

"[[]§329D-11[]] Advertising and packaging. (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 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, [~~a listing~~] 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;

(ii) Should be kept away from children; and

(iii) Contains nuts or other known allergens, if applicable; and

(b) Any capsule, lozenge, or pill containing cannabis or its principal psychoactive constituent tetrahydrocannabinol shall be packaged so that one dose, serving, or single wrapped item contains no more than ten milligrams of tetrahydrocannabinol; provided that no manufactured cannabis product that is sold in a pack of multiple doses, servings, or single wrapped items, nor any containers of oils, shall contain more than a total of one [~~hundred~~] thousand milligrams of tetrahydrocannabinol per pack or container[.]; provided further that no dispensary shall exceed the dispensing limits imposed by section 329D-7.

PART IV

SECTION 33. The legislature finds that section 329D-6(d), Hawaii Revised Statutes, restricts Hawaii medical cannabis dispensaries from employing an individual if the person was convicted of a felony. This appears unduly restrictive, as other states that have legalized medical cannabis dispensaries allow the employment of felons unless convicted for a limited set of offenses. Section 329D-6(d), Hawaii Revised Statutes, does not provide the opportunity for any exceptions based on the nature of the individual's felony record.

The purpose of this part is to specify certain felonies and conditions that will preclude employment, and other felonies that may preclude employment, at medical cannabis dispensaries, rather than make ineligible for employment all individuals who have been convicted of any felony at any time.

SECTION 34. Section 329D-6, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) Notwithstanding any other law to the contrary, including but not limited to sections 378-2 and 378-2.5, [~~no dispensary shall employ a person convicted of a felony.~~] dispensaries:

(1) Shall deny employment to any individual who has been:

(A) Convicted of a class A or class B felony; or

(B) Convicted of a class C felony involving trafficking, distributing, or promoting a schedule I or II drug controlled substance other than cannabis within the last ten years; and

(2) May deny employment to any individual who has been convicted of a class C felony involving:

(A) Fraud, deceit, misrepresentation, embezzlement, or theft; or

(B) Endangering the welfare of a minor.

Employment under this chapter shall be exempt from section 378‑2(a)(1), as it relates to arrest and court record discrimination, and section 378-2.5."

PART V

SECTION 35. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 36. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 37. This Act shall take effect on July 1, 2050.

HOUSE OF REPRESENTATIVES	H.B. NO.	2729
TWENTY-NINTH LEGISLATURE, 2018		H.D. 2
STATE OF HAWAII		S.D. 1