CONFERENCE COMMITTEE REP. NO. 145

Honolulu, Hawaii

, 2021

RE: S.B. No. 1139

S.D. 2

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1139, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE OFFICE OF MEDICAL CANNABIS CONTROL AND REGULATION,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Authorize the Department of Health to adopt administrative rules to establish patient registration fees beginning in fiscal year 2022;

(2) Appropriate monies from the medical cannabis registry and regulation special fund to finance operations and staff, including administrative services, of the Office of Medical Cannabis Control and Regulation;

(3) Establish, hire, and fill one full-time equivalent (1.00 FTE) permanent position funded by the medical cannabis registry and regulation special fund; and

(4) Establish a task force to explore a dual system program of legalization for cannabis and its impact on qualifying patients, which shall submit a report of its findings to the Legislature.

Your Committee on Conference finds that the Office of Medical Cannabis Control and Regulation was forced to eliminate six full-time positions, including critical administrative staff, due to the budget shortfalls caused by the coronavirus disease 2019 pandemic. Administrative and program staff are needed to meet current statutory requirements and the need for administrative and programmatic support will only increase as the landscape for medical cannabis grows and evolves. This measure allows the Department of Health to establish patient registration fees through administrative rules, which would give the Office the financial flexibility it needs to support its ongoing operating costs.

Your Committee on Conference has amended this measure by:

(1) Removing the appropriation from the medical cannabis registry and regulation special fund and the full-time equivalent permanent position funded by that appropriation;

(2) Amending section 1 of this measure to reflect its amended purpose;

(3) Changing the effective date to upon its approval; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1139, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1139, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ RYAN I. YAMANE Co-Chair	____________________________ JARRETT KEOHOKALOLE Chair
____________________________ AARON LING JOHANSON Co-Chair	____________________________ GILBERT S.C. KEITH-AGARAN Co-Chair
____________________________ ADRIAN K. TAM Co-Chair