HB2102

SECTION 1. The legislature finds that Act 228, Session Laws of Hawaii 2016, which established the industrial hemp pilot program within the department of agriculture, created the promise of a new form of diversified agriculture in Hawaii. Since the inception of the pilot program, thirty-six industrial hemp farmers have registered with the department and are currently cultivating hemp for commercial use.

The legislature recognizes that the United States Congress passed the Agriculture Improvement Act of 2018, otherwise known as the 2018 Farm Bill, which, among other matters, removed hemp-derived extracts, derivatives and cannabinoids such as cannabidiol from schedule 1 substances in the Controlled Substances Act. This effectively legalized the sale of cannabidiol products from the commercial cultivation of hemp in the United States.

The legislature further finds that since the passage of the Farm Bill, more than sixteen thousand hemp growers have emerged throughout the United States. Hemp is currently used nationally in hundreds of different applications, including consumer textiles, personal care, industrial components, and dietary supplements containing cannabidiol. The hemp industry across the country has grown rapidly, and hemp-derived products are used by a wide range of consumers.

The legislature also recognizes that, while the United States Department of Agriculture has opened the hemp market, the United States Food and Drug Administration has continued to exercise jurisdiction over the regulation of ingestible and topical hemp products. In 2019, the Food and Drug Administration started to evaluate regulatory frameworks for hemp-derived compounds, held a public hearing, and opened a public docket for data gathering. The Food and Drug Administration has also issued public statements that assert that it is illegal to market cannabidiol as a food additive or dietary supplement because it is an active ingredient in a pharmaceutical drug.

The legislature notes that, given the existence of competing federal frameworks, several states, such as Florida, Ohio, and Texas, have already attempted to provide legal clarity to businesses and consumers by enacting laws that explicitly authorize the production and sale of hemp-derived cannabidiol products. While it is expected that the Food and Drug Administration will eventually use its authority to regulate hemp-derived products, the only enforcement action that the agency has taken to date is the issuance of warning letters against improper disease remediation claims made by food and supplement companies. The legislature also notes that in Hawaii, the state department of health has adhered to guidance from the Food and Drug Administration that provides that food, beverage, or cosmetic products that contain cannabidiol are adulterated and therefore prohibited under law. Despite this suggested prohibition, cannabidiol products continue to be sold across Hawaii, with no regulatory oversight.

The legislature finds that, given the time expected for the Food and Drug Administration to act and the existing confusion among consumers and the industry, the State should take action to establish a regulatory framework for hemp-derived cannabidiol

products, for the sake of safety and for the sake of local hemp farmers.

Accordingly, the purpose of this Act is to facilitate the safe availability of hemp products in this State by:

(1) Requiring labels on hemp products;

(2) Prohibiting manufacturers, distributors, and sellers of hemp products from making unwarranted health-related statements about their products;

(3) Establishing standards relating to manufacturers of hemp food products;

(4) Establishing that a food, beverage, or cosmetic shall not be considered adulterated or misbranded solely by the inclusion of hemp or cannabinoids, extracts, or derivatives from hemp; and

(5) Clarifying that a licensed medical cannabis dispensary is not prohibited from manufacturing, distributing, or selling products that contain hemp, or cannabinoids, extracts, or derivatives from hemp.

SECTION 2. Chapter 328, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . HEMP PRODUCTS

§328- Definitions. As used in this part:

"Established and approved hemp program" means a program that meets all federal requirements regarding the lawful and safe cultivation of hemp.

"Health-related statement" means a statement related to health, and includes a statement of a curative or therapeutic nature that, expressly or impliedly, suggests a relationship between the consumption of hemp or hemp products and health benefits or effects on health.

"Hemp" means the plant species Cannabis sativa L. and any part of that plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 per cent on a dry weight basis.

"Hemp product" means a finished product containing hemp that:

(1) Is a cosmetic, food, food additive, dietary supplement, or herb;

(2) Is for human or animal consumption;

(3) Contains any part of the hemp plant, including naturally occurring cannabinoids, compounds, concentrates, extracts, isolates, resins, or derivatives; and

(4) Contains no more than 0.3 per cent tetrahydrocannabinol.

"Hemp product" does not include hemp or a hemp product that is a drug that has been approved as a drug by the United States Food and Drug Administration.

"Independent testing laboratory" means a laboratory that:

(1) Does not have a direct or indirect interest in the entity for which testing is being done;

(2) Does not have a direct or indirect interest in a facility that cultivates, processes, distributes, dispenses, or sells raw hemp products in this State or in another jurisdiction;

(3) Is organized or incorporated solely for the purpose of operating as a testing laboratory; and

(4) Is accredited by a third-party accrediting body as a competent testing laboratory pursuant to ISO/IEC 17025 of the International Organization for Standardization.

"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a product. "Manufacture" does not include planting, growing, harvesting, drying, curing, grading, or trimming a plant or part of a plant.

"Raw hemp product" means a product that is derived from hemp that is intended to either be used by a consumer or included in a food, beverage, or cosmetic.

§328- Labeling. The label of any package of a food, beverage, or cosmetic containing cannabidiol derived from hemp shall include the following statement or a substantially similar statement: "CANNABIDIOL USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. KEEP OUT OF REACH OF CHILDREN."

§328- Health-related statements. A manufacturer, distributor, or seller of a hemp product shall not include on the label of the product, or publish or disseminate in advertising or marketing, any health-related statement that is untrue in any particular manner or that tends to create a misleading impression as to the health effects of consuming products containing hemp or cannabinoids, extracts, or derivatives from hemp.

§328- Manufacturing; food. A manufacturer of food products that contain hemp shall comply with the following:

(1) All parts of the hemp plant used in food shall come from a state or country that has an established and approved hemp program and inspects or regulates hemp under a food safety program or equivalent criteria to ensure safety for human consumption;

(2) The hemp cultivator or grower is in good standing and in compliance with the governing laws of the state or country of origin; and

(3) A raw hemp food product shall not be distributed or sold in this State without a certificate of analysis from an independent testing laboratory that confirms all of the following:

(A) The raw hemp food product is the product of a batch of hemp that was tested by an independent testing laboratory in accordance with applicable law;

(B) A tested random sample of the batch of hemp contained a total delta-9-tetrahydrocannabinol concentration that did not exceed 0.3 per cent on a dry-weight basis; and

§328- Hemp products; not automatically adulterated or misbranded. A food, beverage, or cosmetic shall not be considered adulterated under section 328-9 or other applicable law or misbranded under section 328-10 or other applicable law solely by the inclusion of hemp or cannabinoids, extracts, or derivatives from hemp. The sale of food, beverages, or cosmetics that include hemp or cannabinoids, extracts, or derivatives from hemp shall not be restricted or prohibited based solely on the inclusion of hemp or cannabinoids, extracts, or derivatives from hemp."

SECTION 3. Chapter 329D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§329D- Hemp not prohibited. (a) This chapter shall not be construed to prohibit a licensed entity from manufacturing, distributing, or selling products that contain hemp, or cannabinoids, extracts, or derivatives from hemp grown in compliance with applicable law; provided that the licensed entity complies with part of chapter 328.

(b) As used in this section, "hemp" means the plant species Cannabis sativa L. and any part of that plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 per cent on a dry weight basis."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2102
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII