STAND. COM. REP. NO. 824

Honolulu, Hawaii

RE: S.B. No. 1139

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1139, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to ensure patient access to and regulatory oversight of licensed medical cannabis dispensaries.

Specifically, this measure:

(1) Appropriates moneys from the medical cannabis registry and regulation special fund for positions and operations within the Office of Medical Cannabis Control and Regulation;

(2) Establishes three new permanent full-time equivalent positions (3.0 FTE) within the Office of Medical Cannabis Control and Regulation; and

(3) Authorizes the Department of Health to adopt administrative rules to establish patient registration fees.

Your Committee received written comments in support of this measure from the Hawaii Cannabis Industry Association.

Your Committee received written comments on this measure from Akamai Cannabis Clinic.

Your Committee notes that due to budgetary shortfalls related to the coronavirus disease 2019 (COVID-19) pandemic, the Office of Medical Cannabis Control needed to eliminate six full-time positions. However, your Committee finds that the Office's operations can be supported by moneys from the medical cannabis registry and regulation fund. Your Committee also finds that authorizing the Department of Health to set patient registration fees through the adoption of administrative rules would allow the Department the flexibility it needs to periodically amend the registration fees in the future.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, and the effective date of the appropriations in the measure to July 1, 2051, to facilitate further discussion on the measure; and

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

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

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair