HB2740

PART I

SECTION 1. 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- Qualifying patients from other states or countries; verification. (a) A person who has been authorized to medically use cannabis under the laws of another:

(1) State shall be recognized as a qualifying patient in this State; or

(2) Country may be recognized as a qualifying patient in this State;

provided that recognition as a qualifying patient in this State shall apply only to a person whose authorization to medically use cannabis in another state or country has been verified in this State.

(b) For purposes of this section, the department:

(1) Shall adopt rules pursuant to chapter 91 relating to the verification of a patient's authorization to medically use cannabis under the laws of another state; and

(2) Shall consider and may adopt rules pursuant to chapter 91 relating to the verification of a patient's authorization to medically use cannabis under the laws of another country;

provided that the rules may authorize a health care provider, dispensary, or certifying clinic to verify the patient's authorization; provided further that the department shall consider, and may require by rule, charging a fee to any person seeking verification under this section.

(c) As used in this section, "another state" includes all states and territories of the United States and the District of Columbia."

SECTION 2. Chapter 378, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

"§378- Unlawful discharge; medical cannabis qualifying patient; medical use of cannabis. Notwithstanding any other law to the contrary, it shall be unlawful for any employer to discharge any of the employer's employees solely because the employee:

(1) Is a qualifying patient, as defined in section 329-121; or

(2) Is a qualifying patient, as defined in section 329‑121, and tested positive for the presence of cannabis or related metabolites in any substance use test."

SECTION 3. Section 329-121, Hawaii Revised Statutes, is amended by amending the definition of "debilitating medical condition" to read as follows:

""Debilitating medical condition" means:

(1) Cancer, glaucoma, lupus, epilepsy, multiple sclerosis, rheumatoid arthritis, positive status for human immunodeficiency virus, acquired immune deficiency syndrome, or the treatment of these conditions;

(2) A chronic or debilitating disease or medical condition or its treatment that produces one or more of the following:

(A) Cachexia or wasting syndrome;

(B) Severe pain;

(D) Seizures, including those characteristic of epilepsy;

(E) Severe and persistent muscle spasms, including those characteristic of multiple sclerosis or Crohn's disease; or

(F) Post-traumatic stress disorder; [or]

(3) Substance use disorder; or

[~~(3)~~] (4) Any other medical condition approved by the department of health pursuant to administrative rules in response to a request from a physician or advanced practice registered nurse or potentially qualifying patient."

SECTION 4. Section 329-122, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) 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) The production centers and the retail dispensing locations under a dispensary licensee's license; or

(3) A production center, retail dispensing location, qualifying patient, or primary caregiver and a certified laboratory for the purpose of laboratory testing; provided that a qualifying patient or primary caregiver 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:

(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 by a qualifying patient or primary caregiver or 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 and any other entity or individual, including an individual who is a qualified patient or primary caregiver.]; provided that nothing in this section shall be construed as applying state law and its protections outside of the jurisdictional limits of the State."

SECTION 5. Section 329-129, Hawaii Revised Statutes, is amended to read as follows:

"[[]§329-129[]] Prohibited acts; flammable solvents[.]; volatilization devices. (a) No qualifying patient or primary caregiver shall use butane to extract tetrahydrocannabinol from cannabis plants.

(b) No qualifying patient shall utilize a portable or hand-held volatilization device to use cannabis; provided that this subsection shall not apply to a medical-grade volatilization device that is designed to remain stationary while in or out of use.

[~~(b)~~] (c) Any person who violates [~~this section~~] subsection (a) shall be guilty of a class C felony."

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

"(m) A dispensary shall not transport cannabis or manufactured cannabis products to another county or another island; provided that this subsection shall not apply to the transportation of cannabis or any manufactured cannabis product solely for the purposes of laboratory testing pursuant to section 329D-8, and subject to subsection (j)[~~, if no certified laboratory is located in the county or on the island where the dispensary is located~~]; provided further that a dispensary shall only transport samples of cannabis and manufactured cannabis products for laboratory testing for purposes of this subsection in an amount and manner prescribed by the department, in rules adopted pursuant to this chapter[~~, and with the understanding that state law and its protections do not apply outside of the jurisdictional limits of the State.~~]; and provided further that nothing in this section shall be construed as applying state law and its protections outside of the jurisdictional limits of the State."

SECTION 7. 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;

(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, 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 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; provided that no dispensary shall sell or provide to a qualifying patient or primary caregiver 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 qualifying patients or primary caregivers 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 qualifying patients or primary caregivers 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; and

(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, United States territory, or the District of Columbia as qualifying patients in this State; provided that this registration process may commence no sooner than January 1, 2018]."

SECTION 8. Section 329D-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

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

(1) Capsules;

(2) Lozenges;

(3) Pills;

(4) Oils and oil extracts;

(5) Tinctures;

(6) Ointments and skin lotions;

(7) Cannabinoid suppositories;

[~~(7)~~] (8) Transdermal [~~patches;~~] devices;

[~~(8)~~] (9) Pre-filled and sealed containers used to aerosolize and deliver cannabis orally, such as with an inhaler or nebulizer; and

[~~(9)~~] (10) Other products as specified by the department."

SECTION 9. Section 386-21.7, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) For purposes of this section[~~, "equivalent~~]:

"Equivalent generic drug product" has the same meaning as provided in section 328-91.

"Prescription drugs" shall include cannabis that is available to a qualifying patient, as defined in section 329‑121."

SECTION 10. Section 489-2, Hawaii Revised Statutes, is amended by amending the definition of "disability" to read as follows:

""Disability" means the state of having a physical or mental impairment which substantially limits one or more major life activities, having a record of [~~such an~~] the impairment, or being regarded as having [~~such an~~] the impairment. The term does not include alcohol or drug use that impairs a person's activities or threatens the property or safety of others[.]; provided that this sentence shall not prohibit the medical use of cannabis, by means other than smoking, by a qualifying patient, as defined in section 329-121."

SECTION 11. Section 489-3, Hawaii Revised Statutes, is amended to read as follows:

"§489-3 Discriminatory practices prohibition. Unfair discriminatory practices that deny, or attempt to deny, a person the full and equal enjoyment of the goods, services, facilities, privileges, advantages, and accommodations of a place of public accommodation on the basis of race, sex, including gender identity or expression, sexual orientation, color, religion, ancestry, [or] disability, or medical use of cannabis as allowed by law are prohibited."

SECTION 12. The department of health shall collaborate with all stakeholders to increase and strengthen public information and education regarding medical cannabis, as determined by the department; provided that these efforts shall address public safety concerns and shall include, at a minimum:

(1) Collaboration with the department of transportation, the department of public safety, and other law enforcement agencies regarding:

(A) Effective and efficient training methods for law enforcement personnel to detect and quantify impairment of a motor vehicle operator who is under the influence of cannabis; and

(B) Training and support for law enforcement personnel and prosecutors to pursue criminal cases using available evidence; and

(2) The production of educational materials regarding personal responsibility and public safety, which medical cannabis dispensaries licensed by the State pursuant to chapter 329D, Hawaii Revised Statutes, shall be required to distribute to their clients.

SECTION 13. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2018-2019 for the purposes of this Act.

The sum appropriated shall be expended by the department of health for the purposes of section 13 of this Act.

SECTION 14. The department of health shall review its existing administrative rules that are applicable to its duties and responsibilities relating to medical cannabis and, to the extent necessary, shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to provide a reasonable accommodation for the registration of prospective qualifying patients, as defined in section 392-121, Hawaii Revised Statutes, who lack proof of identification.

SECTION 15. The department of health shall evaluate the potential inclusion of medical cannabis-infused foods among the types of manufactured cannabis products that are authorized pursuant to section 329D-10, Hawaii Revised Statutes, and shall provide a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2019.

SECTION 16. The Hawaii public housing authority shall provide guidance to the department of health and the medical cannabis legislative oversight working group established pursuant to Act 230, Session Laws of Hawaii 2016, regarding the memorandum dated January 20, 2011, from the United States Department of Housing and Urban Development regarding the medical use of [cannabis] and reasonable accommodation in federal public and assisted housing.

SECTION 17. (a) There is established within the public policy center in the college of social sciences at the University of Hawaii at Manoa for administrative purposes a legislative working group to evaluate the need for medical cannabis production or other non-retail dispensary licenses and requirements for issuing those licenses.

(b) The working group shall include the following members:

(1) The director of business, economic development, and tourism, or the director's designee, who shall serve as chairperson;

(2) The dean and director of the University of Hawaii college of tropical agriculture and human resources, or the dean and director's designee;

(3) The attorney general or the attorney general's designee;

(4) A member of the senate, who shall be designated by the president of the senate; and

(5) A member of the house of representatives, who shall be designated by the speaker of the house of representatives.

A farmer, who may be a licensee under section 329D, Hawaii Revised Statutes, shall also be invited to be a member of the working group.

(c) The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2019.

(d) The members of the working group shall serve without compensation.

(e) The working group shall cease to exist on June 30, 2019.

PART II

SECTION 18. The legislature finds that, currently, a person relying upon a civil identification card as proof of identification to register with the department of health as a qualifying patient under part IX of chapter 329, Hawaii Revised Statutes, must first apply for the card in person and wait until the card is actually issued. This can result in delaying the ability of a person experiencing a debilitating medical condition from benefiting from the medical use of cannabis.

Accordingly, the purpose of this part is to:

(1) Authorize an adult to apply by mail for the issuance or renewal of a civil identification card;

(2) Provide that a receipt issued for an application by mail by an applicant with a qualifying physical or mental disability for a civil identification card may serve as identification for purposes of registering as a qualifying patient; and

(3) Require the department of transportation to evaluate potential ways to streamline the process of renewing a civil identification card for an eligible applicant who is bedridden or otherwise severely disabled, and to adopt applicable rules as necessary.

SECTION 19. Section 286-303, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) Application for the identification card shall be made in person [~~by any adult or minor.~~]; provided that any adult may submit an application by mail. The minimum age for minors to obtain an identification card shall be ten years of age. In the case of a minor under the age of fourteen years, the application shall be made on the minor's behalf by the parent, or by another individual in loco parentis of the minor who can provide proof of guardianship. In the case of an incompetent individual, the application shall be made by the individual having the custody or control of or maintaining the incompetent individual.

(b) Application for renewal of an identification card issued after November 1, [~~1998, for an individual eighty years of age or older~~] 2018, may be done by mailing in a completed application and fee[~~, if there is~~]; provided there has been no change [in] to the applicant's name [~~and~~] or citizenship status[~~. The director shall adopt rules to allow for renewal by mail for individuals with physical or intellectual disabilities for whom application in person presents a serious burden.~~]; provided further that this subsection shall apply to the renewal of identification cards that are valid or that expired no longer than two years prior to the postmark date of the application for renewal."

SECTION 20. Section 329-123, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(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[.]; provided that a receipt issued for submission of an application by mail for renewal of a civil identification card for a person with a qualifying physical or mental disability, pursuant to applicable rules adopted pursuant to chapter 91, shall be an acceptable form of identification for the purpose of registering as a qualifying patient; provided further that the department may adopt rules pursuant to chapter 91 to provide for the registration of a qualifying patient who lacks identification. 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."

SECTION 21. The department of transportation shall review its existing administrative rules that are applicable to its duties and responsibilities relating to civil identification cards and, to the extent necessary, shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to streamline the process of renewing a state civil identification card for an eligible applicant who is bedridden or otherwise severely disabled.

PART III

SECTION 22. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 23. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 24. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2740
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII