STAND. COM. REP. NO. 501

Honolulu, Hawaii

RE: S.B. No. 1332

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Health and Commerce and Consumer Protection, to which was referred S.B. No. 1332 entitled:

"A BILL FOR AN ACT RELATING TO CANNABIS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Increase the allowable number of production centers and retail dispensing locations per dispensary license; and

(2) Authorize the Department of Health to allow a licensed dispensary to purchase medical cannabis or manufactured cannabis products from another licensed dispensary to ensure ongoing qualified patient access.

Your Committees received testimony in support of this measure from Big Island Grown Dispensaries; Green Aloha, Ltd.; Hawai‘i Cannabis Industry Association; and one individual. Your Committees received comments on this measure from the Department of Health and Akamai Cannabis Clinic.

Your Committees find that there is a need to fortify and enhance qualified patient access to safe, regulated cannabis in the State. Your Committees further find that there is an illicit recreational cannabis market flourishing in the State. The danger of such a market is that the products are unregulated, escaping product testing requirements, accountability to qualified patients, and oversight by any state agency. Thus, your Committees believe that overall enhancement of the medical cannabis dispensary program is necessary to strengthen patient access, improve product controls and safety, and refine the administration of the program.

Your Committees heard the testimony from several stakeholders who raised concerns about provisions in this measure that allow inter-island sales between licensed dispensaries that could conflict with federal law. Additionally, your Committees heard the testimony of the Department of Health, which recommended amendments to improve product quality and safety. Therefore, your Committees have amended this measure by:

(1) Limiting the sales of medical cannabis between licensed dispensaries to only dispensaries on the same island;

(2) Authorizing the collection and laboratory testing of samples of cannabis and manufactured cannabis as part of production center and dispensary inspections;

(3) Authorizing the Department of Health to establish manufacturing and product stability standards of manufactured cannabis products;

(4) Amending section 1 to reflect its amended purpose;

(5) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Health and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1332, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1332, S.D. 1, and be referred to your Committee on Judiciary.

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

________________________________ ROSALYN H. BAKER, Chair

________________________________ JARRETT KEOHOKALOLE, Chair