STAND. COM. REP. NO.  722

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 263

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 263 entitled:

"A BILL FOR AN ACT RELATING TO MEDICAL MARIJUANA,"

begs leave to report as follows:

The purpose of this measure is to impose the state Use Tax on gross proceeds or gross income derived from sales of medical marijuana and manufactured marijuana products at licensed medical marijuana dispensaries.  

Your Committee received testimony in support of this measure from an individual.  Your Committee received testimony in opposition to this measure from Cure Oahu, Patients Without Time, Hawaii Educational Association for Licensed Therapeutic Healthcare, and two individuals.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committee has amended this measure by:

     (1)  Inserting new language that provides for the deposit of an unspecified percentage of general excise tax revenues received from licensed medical marijuana dispensaries into the Medical Marijuana Registry and Regulation Special Fund to be used for health and public health purposes;

     (2)  Inserting new language to authorize and regulate the sale of edible cannabis products at licensed medical marijuana dispensaries;

     (3)  Making parts I and III effective on July 1, 2090, and making part II effective on July 1, 2019; and

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

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 263, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 263, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

DELLA AU BELATTI, Chair