STAND. COM. REP. NO. 111

Honolulu, Hawaii

RE: S.B. No. 1352

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 1352 entitled:

"A BILL FOR AN ACT RELATING TO INDUSTRIAL HEMP,"

begs leave to report as follows:

The purpose and intent of this measure is to clarify that financial institutions in the State are authorized to conduct business with persons and entities that lawfully grow, produce, sell, market, advocate for, or otherwise deal with industrial hemp.

Your Committee received testimony in support of this measure from the Hawaii Department of Agriculture, Hawaii Farm Bureau, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and one individual. Your Committee received testimony in opposition to this measure from the Hawaii Bankers Association. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that financial institutions are already allowed to maintain a banking relationship with entities engaged in the business of industrial hemp. This measure clarifies this authorization and makes certain that all members of the banking industry know they are authorized to act in this area, which will be helpful for the State's industrial hemp licensees.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1352 and recommends that it pass Second Reading and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

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ROSALYN H. BAKER, Chair