STAND. COM. REP. NO. 945

Honolulu, Hawaii

RE: S.B. No. 86

S.D. 3

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. 86, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HAWAIIAN AFFAIRS,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the number of medical cannabis dispensaries available to and operated by native Hawaiians by requiring the Department of Health to issue eight dispensary licenses to the Department of Hawaiian Home Lands.

Your Committee received written comments in opposition to this measure from Kupuna for the Moopuna.

Your Committee received written comments on this measure from the Department of Hawaiian Home Lands, Department of the Attorney General, and Department of Health.

Your Committee finds that the Department of Health is authorized to issue licenses for medical cannabis dispensaries, which are regulated in a manner that benefits registered patients while balancing the health and safety of the general public. Your Committee recognizes that, as more states have legalized medical and cannabis use, an increasing number of native American tribes have entered into the cannabis industry in pursuit of economic development and job creation. Your Committee believes the Department of Hawaiian Home Lands should review similar potential opportunities.

Your Committee has amended this measure by:

(1) Inserting a requirement that the Department of Hawaiian Home Lands study the feasibility of, and revenue that may be generated by, operating licensed medical cannabis dispensaries, limited gaming, and other potential revenue-generating enterprises on Hawaiian home lands to address historic funding shortfalls exacerbated by the economic shutdown from the coronavirus disease 2019 (COVID-19) pandemic; and submit a report of its findings to the Legislature no later than twenty days prior to the Regular Session of 2022;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3) Making technical nonsubstantive changes 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. 86, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 86, S.D. 3.

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

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DONOVAN M. DELA CRUZ, Chair