STAND. COM. REP. NO. 3604

Honolulu, Hawaii

RE: S.R. No. 214

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Health and Public Safety, Intergovernmental, and Military Affairs, to which was referred S.R. No. 214 entitled:

"SENATE RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A STUDY ON THE RELATIONSHIP BETWEEN THE CURRENT PRICES OF AND ACCESS TO MEDICAL CANNABIS AND THE VOLUME OF ILLICIT CANNABIS SALES IN THE STATE,"

beg leave to report as follows:

The purpose and intent of this measure is to request the Auditor to conduct a study on the relationship between current prices of and access to medical cannabis and the volume of illicit cannabis sales in the State.

Your Committees received testimony in support of this measure from Akamai Cannabis Consulting. Your Committees received comments on this measure from the Office of the Auditor.

Your Committees find that since the passage of Act 241, Session Laws of 2015, which established a regulated statewide medical cannabis dispensary system, licensed medical cannabis dispensaries have averaged only a thirty-one percent market share of the State's registered medical cannabis patients. The remaining sixty-nine percent of registered medical cannabis patients, equating to more than twenty thousand patients, other purchase medical cannabis from the illicit market or obtain cannabis by growing it themselves. Your Committees find that this disparity could be partially attributed to the lack of access to licensed dispensaries, as existing law authorizes a maximum of sixteen licensed retail dispensing locations across the State. Another contributing factor could be the price of medical cannabis from a licensed dispensary as compared to cannabis from the illicit market. This measure requests the Auditor to conduct a study on the relationship between current prices of and access to medical cannabis and the volume of illicit cannabis sales in the State.

As affirmed by the records of votes of the members of your Committees on Health and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees concur with the intent and purpose of S.R. No. 214 and recommend its adoption.

Respectfully submitted on behalf of the members of the Committees on Health and Public Safety, Intergovernmental, and Military Affairs,

________________________________ CLARENCE K. NISHIHARA, Chair

________________________________ JARRETT KEOHOKALOLE, Chair