STAND. COM. REP. NO. 622-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 1819

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 1819, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEMP,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish a statutory framework for the Department of Agriculture (DOA) to monitor and regulate hemp;

(2) Establish and provide temporary legislative funding for the Hemp Regulatory Special Fund, which will later be funded by inspection fees, for necessary staff to administer the program;

(3) Exclude hemp from the State's prohibitions against marijuana;

(4) Expedite the repeal of the existing Industrial Hemp Pilot Program;

(5) Require the Chairperson of the Board of Agriculture to seek approval from the United States Department of Agriculture of a state plan to monitor and regulate hemp; and

(6) Appropriate funds to:

(A) DOA for the monitoring and regulation of hemp production; and

(B) The College of Tropical Agriculture and Human Resources at the University of Hawaii at Manoa for hemp research.

Your Committee received testimony in support of this measure from the Department of Public Safety; University of Hawaii System; a Councilmember of the Kauai County Council; We Are One, Inc.; Hawaii Farm Bureau; Kihei Community Association; Vote Hemp; Hawaii Hemp Farmers Association; and three individuals. Your Committee received comments on this measure from the Department of the Attorney General, Department of Agriculture, and Department of Budget and Finance.

Your Committee recognizes that the federal Agriculture Improvement Act of 2018, also known as the 2018 Farm Bill, legalized hemp by removing it from the definition of "marihuana" under the federal Controlled Substances Act. Furthermore, in October 2019, the United States Department of Agriculture established new regulations through which states may monitor and regulate hemp production.

Your Committee finds that hemp is a high-value crop that can be a significant benefit to Hawaii's economy. Your Committee further finds that Hawaii's hemp industry remains in a nascent stage, in part due to restrictive regulatory actions taken by DOA under existing laws. Therefore, your Committee believes that state laws regarding hemp should be reformed.

Your Committee has amended this measure by:

(1) Clarifying that the samples collected by DOA or authorized third parties shall be representative samples;

(2) Establishing labeling requirements for one hundred percent Hawaii-grown hemp; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1819, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1819, H.D. 2.

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

____________________________

CHRIS LEE, Chair