STAND. COM. REP. NO. 1280-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2461

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Health & Homelessness, to which was referred S.B. No. 2461, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MEDICAL CANNABIS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Provide that medical cannabis dispensaries may purchase cannabis and manufactured cannabis products from other dispensaries without any showing that the purchase is:

(A) Necessary for a qualifying patient's continuous access for medical use; or

(B) For medical, scientific, or other legitimate purposes; and

(2) Require the Department of Health to adopt rules no later than nine months after a medical cannabis product is statutorily permitted to be manufactured and distributed.

Your Committee received testimony in support of this measure from the Hawaii Cannabis Industry Association; Pono Life Maui; Cure Oahu; Hawaiian Ethos; and one individual. Your Committee received testimony in opposition to this measure from the Department of Health. Your Committee received comments on this measure from Akamai Cannabis Consulting.

Your Committee finds that because the Department of Health has full discretion to reject requests for dispensary-to-dispensary sales with no specific timeline to respond, wholesale of cannabis and manufactured cannabis products between dispensaries currently occurs on an emergency basis. As a result, the ability of dispensaries to do future planning, share manufacturing capabilities, or specialize in equipment or products is significantly impaired. Your Committee further finds that the Department of Health has not engaged in rulemaking to allow for the sale of pre-rolled cannabis flower products, even though the sale of these products was authorized by Act 108, Session Laws of Hawaii 2023. Your Committee believes that addressing these issues, as intended by this measure, will grant dispensaries the flexibility needed to ensure patient access to cannabis and manufactured cannabis products and mitigate the effects of business fluctuations.

As affirmed by the record of votes of the members of your Committee on Health & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2461, S.D. 2, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Health & Homelessness,

____________________________

DELLA AU BELATTI, Chair