HB602

PART I

SECTION 1. This Act may be known and cited as "The Hawaii Medical Use of Cannabis Act of 2025".

PART II

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to title 19 to be appropriately designated and to read as follows:

"Chapter

MEDICAL CANNABIS CULTIVATION SITE COLLECTIVE SYSTEM

§ -A Definitions. As used in this chapter:

"Cannabis" shall have the same meaning as in section 329‑121.

"Cannabis concentrate" shall have the same meaning as "marijuana concentrate" as in section 712-1240.

"Cannabis extraction" means the process of extracting cannabis concentrate from harvested cannabis using water, lipids, gases, solvents or other chemicals or chemical processes.

"Cannabis plant" means a plant of the genus Cannabis, including Cannabis sativa, Cannabis indica and Cannabis ruderalis.

"Cannabis testing facility" means a facility that meets the requirements established by the department of health pursuant to section 329D-8(a).

"Caregiver of a qualifying out-of-state patient" shall have the same meaning as in section 329-121.

"Child-resistant," with respect to packaging or a container, means specially designed or constructed to be significantly difficult for a typical child under five years of age to open but not significantly difficult for a typical adult to open and reseal.

"Cultivation area" means an indoor or outdoor area used for cultivation of mature cannabis plants, immature cannabis plants, or seedlings in accordance with this chapter, that is enclosed and equipped with locks or other security devices that permit access only by a person authorized under this chapter to have access to the area. "Cultivation area" includes one or more indoor or outdoor areas, whether contiguous or noncontiguous, on the same parcel or tract of land.

"Cultivation site collective" or "collective" means an association, cooperative, affiliation, or group of primary caregivers who physically assist each other in the act of cultivation, processing, or distribution of cannabis for medical use for the benefit of the members of the collective.

"Department" means the department of health.

"Harvested cannabis" means plant material harvested from a mature cannabis plant, but does not include stalks, leaves, or roots that are not used for a qualifying patient's

medical use. "Harvested cannabis" includes cannabis concentrate and cannabis products.

"Licensee" means an individual or private entity that holds a license pursuant to this chapter.

"Manufacture" or "manufacturing" means the production, blending, infusing, compounding, or other preparation of cannabis concentrate or cannabis products, including cannabis extraction or preparation by means of chemical synthesis.

"Manufactured cannabis product" shall have the same meaning as in section 329D-1.

"Manufacturing facility" means a facility at which cannabis is manufactured.

"Mature cannabis plant" means a flowering female cannabis plant.

"Mature plant canopy" means the total surface area within a cultivation area where mature cannabis plants are growing. "Medical cannabis dispensary" means a person licensed by the State pursuant to chapter 329D.

"Medical provider" shall have the same meaning as in section 329-121.

"Medical use" shall have the same meaning as in section 329-121.

"Nonflowering cannabis plant" means a cannabis plant that is in a stage of growth in which the plant's pistils are not showing or the pistils protrude in pairs from seed bracts that may be located on multiple nodes of the plant.

"Officer or director" means a director, manager, shareholder, board member, partner or other person holding a management position or ownership interest in a private entity.

"Person" means an individual or private entity.

"Primary caregiver" shall have the same meaning as in section 329-121.

"Private entity" means one or more individuals, a company, corporation, a partnership, an association, or any other type of legal entity, other than a governmental agency.

"Production" means the planting, cultivating, growing, or harvesting of cannabis. "Production" includes the manufacture of medical cannabis products pursuant to this chapter.

"Qualifying out-of-state patient" shall have the same meaning as in section 329-121.

"Qualifying patient" shall have the same meaning as in section 329-121.

"Remuneration" means a donation or any other monetary payment received directly or indirectly by a person in exchange for goods or services as part of a transaction in which cannabis is transferred or furnished by that person to another person.

"Sample" means a cannabis plant or harvested cannabis that is provided for testing or research purposes to a cannabis testing facility.

"Seed-to-sale tracking system" means an inventory control system that tracks the cultivation, processing, and sales of cannabis and manufactured cannabis products to qualifying patients, qualifying out-of-state patients, primary caregivers, and caregivers of qualifying out-of-state patients.

"Seedling" means a cannabis plant or rooted cutting that is not flowering and does not exceed twenty-four inches in length, height, or width.

§ -B Licensure; Application process. No individual or private entity shall operate a cultivation site collective without a license issued by the department. Each license applicant shall:

(1) Complete and submit to the department all application forms required and provided by the department;

(2) Submit to the department documentation sufficient to satisfy all applicable residency requirements of the department, which may include, among other requirements, a photographic identification card issued by the State;

(3) Submit to a criminal history record check, if required by the department; and

(4) Submit to the department documentation establishing that the applicant has a general excise tax license issued pursuant to chapter 237.

§ -C License; fee; limitation. (a) Each licensed collective shall pay an annual license fee of $2,500.

(b) License fees shall be deposited in the medical cannabis registry and regulation special fund established pursuant to section 321-30.1.

(d) A licensee may hold no more than one license each for indoor and outdoor cultivation area. The department shall require appropriate disclosures from licensees and potential licensees to enforce this subsection.

(e) The department may issue provisional licenses; provided that the department shall inspect the applicable premises and relevant records of each provisional licensee to determine whether the provisional licensee should receive full approval to operate pursuant to this chapter.

§ -D Cultivation areas; limitations; calculation. (a) The mature plant canopy for an indoor cultivation area operated by a collective shall not exceed one thousand square feet.

(b) The mature plant canopy for an outdoor cultivation area operated by a collective shall not exceed five thousand square feet.

(c) The surface area of any mature plant canopy shall be calculated in square feet and measured using the outside boundaries of the area and shall include all of the area within the boundaries. If the surface area of the mature plant canopy consists of noncontiguous areas, each component area shall be separated by identifiable boundaries. If a tiered or shelving system is used in the cultivation area, the surface area of each tier or shelf shall be included in calculating the area of the mature plant canopy. Calculation of the surface area of the mature plant canopy shall not include the areas within the cultivation area that are not used at any time to cultivate mature cannabis plants.

(d) Each cultivation area shall be enclosed and locked. Each cultivation area may consist of one or more areas, whether contiguous or noncontiguous; provided that the mature canopy shall not exceed the mature plant canopy limitations of this section; provided further that all areas of the cultivation area shall be on the same parcel or tract of land.

(e) Each cultivation area shall be controlled by no more than one licensee.

§ -E Pest control; restriction. A licensee shall not use any pesticide on any cannabis plant in any manner that is inconsistent with federal labeling requirements or is not authorized by the department of agriculture.

(b) A licensee may employ integrated pest management principles; provided that any pesticide use shall comply with subsection (a).

§ -F Sales to consumers. (a) Each license may sell usable cannabis directly to:

(1) A qualifying patient or primary caregiver; provided that the quantity of usable cannabis sold in a single transaction shall not exceed four ounces; and

(2) A qualifying out-of-state patient or caregiver of the qualifying out-of-state patient; provided that the total quantity of usable cannabis sold to the patient or caregiver within a fifteen-day period shall not exceed four ounces.

§ -G Packaging; labels. (a) All cannabis and manufactured cannabis products sold by a licensee shall be contained in packaging designed and labeled to prevent accidental usage by a person who is not a qualifying patient or qualifying out-of-state patient. Packaging shall:

(1) Include one or more labels that include, at minimum:

(A) A statement on the net contents within the packaging;

(B) A warning about tetrahydrocannabinol content; and

(2) Be child-resistant.

(b) If a label on the packaging of any cannabis or manufactured cannabis product for use by a qualifying patient or qualifying out-of-state patient includes information about contaminants, the cannabinoid profile, or potency of the cannabis, the label shall be verified by a cannabis testing facility; provided that this subsection shall not apply if there is no cannabis testing facility operating within the State.

(c) The department may establish additional packaging and labeling requirements for the purposes of public safety; provided that the department shall first weigh the potential environmental impacts of any proposed packaging and labeling requirements against the proposed requirements' potential benefits to public safety.

§ -H Testing. (a) Testing of cannabis sold by a licensee may be performed with the consent of the licensee or a qualifying patient or qualifying out-of-state patient who is a customer of the licensee.

(b) The department and its employees may conduct mandatory testing of cannabis in the possession of a licensee. The department shall not assign this responsibility to any other entity or individual, other than another state agency and its employees. Mandatory testing conducted pursuant to this section may be conducted without prior notice to a licensee.

§ -I Records; reports by licensees. (a) Each licensee shall employ appropriate internal tracking and records of qualifying patients or qualifying out-of-state patients served by the licensee.

(b) Each licensee shall retain records of all cannabis transactions and transfers of cannabis plants and harvested cannabis. The records shall be available for inspection by the department upon the department's demand. The records shall permit the department to identify the chain of a cannabis product throughout its life through to sale, but shall protect the confidentiality of qualifying patients and qualifying out‑of-state patients.

(c) The department shall not require any licensee to participate in a seed-to-sale tracking system; provided that this subsection shall not be construed to conflict with the other provisions of this chapter.

(d) Each licensee shall submit to the department an annual report on the number of qualifying patients and qualifying out‑of-state patients that the collective has assisted during the most recent fiscal year.

§ -J Staffing. Each licensee may employ an unlimited number of employees; provided that:

(1) Each employee shall be no less than:

(A) Twenty-one years of age; or

(B) Eighteen years of age, if the employee is an immediate family member of:

(i) The licensee, if the licensee is an individual; or

(ii) An officer or director of the licensee, if the licensee is a private entity; and

(2) The licensee shall comply with all applicable employment and labor laws.

§ -K Restriction on law enforcement access. Unless otherwise authorized by a warrant or by applicable law, a law enforcement officer shall not require a licensee to disclose identifying patient information.

§ -L Nondiscrimination. Neither an individual's holding of a license for the cultivation of cannabis as provided in this part nor the individual's role as an officer, director, or employee of a licensee under this part shall be the basis for denying the individual access to employment, education, child custody rights, parental visitation rights, or housing; provided that this section shall not apply if:

(1) Denial of access to employment or education is necessary for the employer, school, or educational institution to comply with federal law or a federal contract, or to receive federal funds;

(2) In determining child custody rights or parental visitation rights, a court determines that the individual's access to or use of medical cannabis is harmful to the best interests of the child; or

(3) An exception described in section 421J-16, section 514B-113, or section 521-39 applies.

§ -M Additional licenses. (a) A licensee shall not be required to obtain an additional license to engage in nonhazardous cannabis extraction and manufacturing or to prepare solventless concentrates at its cultivation site; provided that:

(1) The licensee shall otherwise obtain licenses and comply with applicable building codes, as provided by law; and

(2) The department shall require the licensee to obtain additional licenses to:

(A) Use butane to extract tetrahydrocannabinol from cannabis plants; or

(B) Engage in other hazardous activities relating to the extraction or manufacture of cannabis.

(b) The department shall adopt rules pursuant to chapter 91 necessary for the purposes of paragraph (a)(2).

§ -N Transportation. (a) Qualifying patients, qualifying out-of-state patients, primary caregivers, and caregivers of qualifying out-of-state patients may transport and receive cannabis cultivated at a site maintained by a licensee, subject to the quantity and form limitations of this part; provided that each transfer shall be accompanied by documentation that includes:

(1) The transporting individual's name and registry identification number, if applicable;

(2) The name and license number of the licensee responsible for the cultivation site from which the cannabis was gathered;

(3) The receiving individual's name and registry identification number, if applicable, or other unique identification number;

(4) A description of the cannabis being transferred, including the quantity and form;

(5) The time and date of the transfer; and

(6) The location of the destination of the cannabis.

(b) Each licensee may engage in the wholesale transfer of cannabis plants and cannabis harvested by the licensee to other licensees within the State, without any quantity limitations; provided that each licensee shall ensure that each transport of transferred cannabis is accompanied by the documentation described in subsection (a), to the extent applicable, and make the documentation available for inspection by law enforcement officers.

§ -O Protections afforded to licensees. (a) A licensee shall not be subject to prosecution, search, seizure or penalty in any manner, including any civil penalty or disciplinary action by a business or an occupational or professional licensing board or other body, and shall not be denied any right or privilege solely for acting in accordance with this part for the medical use or for assisting in the medical use of cannabis in accordance with this part.

(b) An officer or director or assistant of a licensee that is a private entity shall not subject to arrest, prosecution, search, seizure, or penalty in any manner, including any civil penalty or disciplinary action by a business or an occupational or professional licensing board or other body, and shall not be denied any right or privilege solely for working for or with another primary caregiver, cannabis testing facility, manufacturing facility, or medical cannabis dispensary to provide cannabis plants or cannabis products to qualifying patients, other primary caregivers, medical cannabis dispensaries, manufacturing facilities, or cannabis testing facilities, or to otherwise assist with the medical use of cannabis in accordance with this chapter.

§ -P Administration; enforcement; rules; special procedures. (a) The department shall:

(1) Adopt rules pursuant to chapter 91 necessary for the purposes of this chapter; and

(2) Administer and enforce this chapter and the rules adopted pursuant to chapter 91 and this chapter;

provided that the administration and enforcement by the department of this chapter and the rules adopted pursuant to this chapter may not be assigned to any agency within the department that is responsible for the administration and enforcement of the laws governing the manufacture, sale, or distribution of liquor or alcohol.

(b) Before adopting rules pursuant to this chapter and chapter 91, the department shall consult with qualifying patients, primary caregivers, and medical providers having significant knowledge and experience certifying patients under part IX of chapter 329. The department shall develop a process to use when hiring consultants to advise on rule changes related to this chapter and shall report any subsequent changes to that process to the standing committees of the legislature having jurisdiction over matters relating to the medical use of cannabis."

PART III

SECTION 3. Chapter 329, Hawaii Revised Statutes, is amended by adding seven new sections to part IX to be appropriately designated and to read as follows:

"§329-A Additional protections; conduct of qualifying patients. In addition to any other conduct authorized by this part, a qualifying patient may:

(1) Cultivate, or designate a primary caregiver to cultivate, no more than two hundred fifty square feet of mature flowering canopy within any property having a designated tax map key;

(2) Possess cannabis paraphernalia;

(3) Furnish or offer to furnish to another qualifying patient for that patient's medical use of cannabis no more than two and one-half ounces of usable cannabis for no remuneration;

(4) Obtain or receive cannabis for the patient's medical use without designating a primary caregiver or a dispensary; provided that a qualifying patient or the parent, legal guardian, or person having legal custody of a qualifying patient who has not attained eighteen years of age or who is enrolled in a preschool or primary or secondary school shall designate, as applicable:

(A) A primary caregiver who shall cultivate cannabis plants for the patient;

(B) A long-term care facility to assist with the qualifying patient's medical use of harvested cannabis; provided that the facility shall not be designated to cultivate cannabis plants for the patient; and

(C) A person to obtain harvested cannabis on behalf of the qualifying patient or transport the harvested cannabis to the qualifying patient; provided that the person shall possess the person's government-issued photographic identification that contains the person's address, the qualifying patient's written certification and the qualifying patient's designation in order to engage in this conduct;

provided that a designation pursuant to this paragraph shall be in a standardized written document, developed by the department, that is signed and dated by the qualifying patient or the parent, legal guardian or person having legal custody of the qualifying patient and that expires on a date not to exceed the expiration date of the qualifying patient's written certification; provided further that the document shall include the signed acknowledgment of the person or facility that the person or facility may be contacted to confirm the designation of the person or facility to engage in the conduct authorized;

(5) Choose a primary caregiver based solely on the patient's preference; provided that a parent, legal guardian, or person having legal custody of a qualifying patient who has not attained eighteen years of age shall serve as primary caregiver for the patient;

(6) Be in the presence or vicinity of the medical use of cannabis and assist any qualifying patient with using or administering harvested cannabis;

(7) Accept cannabis plants or harvested cannabis from a qualifying patient, primary caregiver, or licensed dispensary if no remuneration is provided to the patient, primary caregiver or dispensary;

(8) Provide samples to a cannabis testing facility for testing and research purposes;

(9) Manufacture cannabis products and cannabis concentrate for medical use;

(10) Provide harvested cannabis to a manufacturing facility and obtain cannabis products and cannabis concentrate from the manufacturing facility that are produced from the harvested cannabis the qualifying patient provided to the manufacturing facility; and

(11) Use cannabis in any form.

§329-B Record of states authorizing the medical use of cannabis. The department of health shall maintain a record of states that authorize the medical use of cannabis. For each state, the record shall include a description of documentation the state requires of patients for the purpose of authorizing the medical use of cannabis.

§329-C Restrictions on law enforcement access. Unless otherwise authorized by a warrant or by applicable law, a law enforcement officer shall not:

(1) Enter any location in which a qualifying patient, qualifying out-of-state patient, primary caregiver, or caregiver of a qualifying out of state patient is conducting activities authorized by this part; or

(2) Require a qualifying patient or qualifying out‑of‑state patient to disclose identifying patient information.

§329-D Excess cannabis; forfeiture. (a) A qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient who possesses usable cannabis in excess of the limits provided in this part shall:

(1) Forfeit the excess amount to a law enforcement officer; provided that the law enforcement officer may remove all excess usable cannabis from the person and record the amount of excess cannabis; and

(2) Be penalized pursuant subsection (b).

(b) If the amount of the excess is:

(1) No more than four ounces above any amount the person is authorized to possess pursuant to this part, the penalty shall be a civil fine of not less than $350 and not more than $600; or

(2) More than four ounces above any amount the person is authorized to possess pursuant to this part, the penalty shall be a civil fine of not less than $700 and not more than $1,000.

(d) For a second or subsequent violation of this section, the person's privileges under this part, including any registration, shall be revoked, and any cannabis plants, harvested cannabis, or usable cannabis shall be forfeited to a law enforcement officer.

§329-E Professional responsibilities maintained. Nothing in this part shall be construed to authorize any person to perform any task under the influence of cannabis when doing so would constitute negligence or professional malpractice or would otherwise violate any professional standard.

§329-F Nondiscrimination. Neither an individual's holding of a valid certificate for the medical use of cannabis as provided in this part nor the individual's lawful use of medical cannabis shall be the basis for denying the individual access to employment, education, child custody rights, parental visitation rights, or housing; provided that this section shall not apply if:

(1) Denial of access to employment or education is necessary for the employer, school, or educational institution to comply with federal law or a federal contract, or to receive federal funds;

(2) If, in determining child custody rights or parental visitation rights, a court determines that the individual's access to use of medical cannabis is harmful to the best interests of the child; or

(3) An exception described in section 421J-16, section 514B-113, or section 521-39 applies.

§329-G Administration; enforcement; rules; special procedures. (a) The department of health shall:

(1) Adopt rules pursuant to chapter 91 necessary for the purposes of this chapter; and

(2) Administer and enforce this chapter and the rules adopted pursuant to chapter 91 and this chapter;

provided that the administration and enforcement by the department of health of this chapter and the rules adopted pursuant to this chapter may not be assigned to any agency within the department of health that is responsible for the administration and enforcement of the laws governing the manufacture, sale, or distribution of liquor or alcohol.

(b) Before adopting rules pursuant to this chapter and chapter 91, the department of health shall consult with qualifying patients, primary caregivers, and medical providers having significant knowledge and experience certifying patients under part IX of chapter 329. The department of health shall develop a process to use when hiring consultants to advise on rule changes related to this chapter and shall report any subsequent changes to that process to the standing committees of the legislature having jurisdiction over matters relating to the medical use of cannabis."

SECTION 4. Section 329-43.5, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Subsections (a) and (b) shall not apply to a person who is authorized to:

(1) Acquire, possess, cultivate, use, distribute, or transport cannabis pursuant to the definition of "medical use" under section 329-121, while the person is facilitating the medical use of cannabis by a qualifying patient; or

(2) [~~Dispense,~~] Cultivate, dispense, manufacture, or produce cannabis or manufactured cannabis products pursuant to and in compliance with chapter 329D[,] or chapter , while the person is facilitating the medical use of cannabis by a qualifying patient pursuant to part IX of chapter 329."

SECTION 5. Section 329-121, Hawaii Revised Statutes, is amended as follows:

1. By adding six new definitions to be appropriately inserted and to read:

""Cannabis paraphernalia" means equipment, products, devices, and materials that are used for planting, propagating, cultivating, harvesting, processing, preparing, testing, packaging, or storing cannabis for medical use or used for ingesting, inhaling, or otherwise consuming cannabis for medical use. "Cannabis paraphernalia" includes:

(1) Kits used for planting, propagating, cultivating, or harvesting a cannabis plant;

(2) Isomerization devices used for adjusting the potency of a cannabis plant;

(3) Testing equipment used for identifying or analyzing the potency, effectiveness, or purity of a cannabis plant or harvested cannabis;

(4) Scales and balances used for weighing or measuring harvested cannabis;

(5) Separation gins and sifters used for removing twigs and seeds from, or in otherwise cleaning or refining, harvested cannabis;

(6) Envelopes and other containers used for packaging small quantities of harvested cannabis for medical use;

(7) Containers and other objects used for storing harvested cannabis;

(8) Rolling papers, cigarette papers, or wraps used for rolling harvested cannabis for smoking;

(9) Metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes, with or without screens, chillums, or punctured metal bowls used for smoking harvested cannabis; and

(10) Electronic smoking devices used for simulating the smoking of harvested cannabis or cannabis products through the inhalation of vapor or aerosol from the device.

"Cannabis testing facility" means a facility that meets the requirements established by the department of health pursuant to section 329D-8(a).

"Manufacturing facility" shall have this same meaning as in section -A.

"Medical provider" means a physician, advanced practice registered nurse, or physician assistant licensed to practice in the State.

"Officer or director" means a director, manager, shareholder, board member, partner, or other person holding a management position or ownership interest in a private entity.

"Private entity" means one or more individuals, a company, corporation, a partnership, an association, or any other type of legal entity, other than a governmental agency."

2. By amending the definition of "adequate supply" to read:

""Adequate supply" means an amount of medical cannabis jointly possessed between [~~the qualifying~~] a:

(1) Qualifying patient and the primary caregiver of the qualifying patient; or

(2) Qualifying out-of-state patient and the caregiver of the qualifying out-of-state patient;

that is not more than is reasonably necessary to ensure the uninterrupted availability of cannabis for the purpose of alleviating the symptoms or effects of [~~a qualifying~~] the patient's debilitating medical condition[; provided that an "adequate supply" shall not exceed: ten cannabis plants, whether immature or mature, and four ounces of usable cannabis at any given time. The four ounces of usable cannabis shall include any combination of usable cannabis and manufactured cannabis products, as provided in chapter 329D, with the cannabis in the manufactured cannabis products being calculated using information provided pursuant to section 329D-9(c).], subject to the limitations of sections 329-122 and 329-130."

3. By amending the definition of "debilitating medical condition" to read:

""Debilitating medical condition" means:

(1) Cancer, glaucoma, lupus, epilepsy, multiple sclerosis, rheumatoid arthritis, positive status for human immunodeficiency virus, acquired immune deficiency syndrome, or the treatment of these conditions;

(2) A chronic or debilitating disease or medical condition or its treatment that produces one or more of the following:

(A) Cachexia or wasting syndrome;

(B) Severe pain;

(D) Seizures, including those characteristic of epilepsy;

(E) Severe and persistent muscle spasms, including those characteristic of multiple sclerosis or Crohn's disease; or

(F) Post-traumatic stress disorder; or

(3) Any other medical condition approved by the department of health pursuant to administrative rules in response to a request from a [~~physician or advanced practice registered nurse~~] medical provider or potentially qualifying patient."

4. By amending the definition of "primary caregiver" to read:

""Primary caregiver" means a person, eighteen years of age or older, other than the qualifying patient and the qualifying patient's [~~physician or advanced practice registered nurse,~~] medical provider, who has agreed to undertake responsibility for managing the well-being of the qualifying patient with respect to the medical use of cannabis. [~~In the case of a minor or an adult lacking legal capacity, the primary caregiver shall be a parent, guardian, or person having legal custody.~~]"

5. By amending the definition of "qualifying out-of-state patient" and "registered qualifying out-of-state patient" to read:

""Qualifying out-of-state patient" or "registered qualifying out-of-state patient" means a person who is [~~registered~~]:

(1) Registered for the medical use of cannabis in another state, a United States territory, or the District of Columbia[.]; and

(2) Is either:

(A) Not a resident of the State; or

(B) Has been a resident of the State for fewer than thirty days."

6. By amending the definition of "qualifying patient" to read:

""Qualifying patient" means a person who has been a resident of the State for at least thirty days and who has been diagnosed by a [~~physician or advanced practice registered nurse~~] medical provider as having a debilitating medical condition."

7. By amending the definition of "written certification" to read:

""Written certification" means the qualifying patient's medical records or a statement signed by a qualifying patient's [~~physician or advanced practice registered nurse,~~] medical provider, stating that in the [~~physician's or advanced practice registered nurse's~~] medical provider's professional opinion, the qualifying patient has a debilitating medical condition and the potential benefits of the medical use of cannabis would likely outweigh the health risks for the qualifying patient. [The department of health may require, through its rulemaking authority, that all written certifications comply with a designated form. "Written certifications" are valid for one year from the time of signing; provided that the department of health may allow for the validity of any written certification for three years if the qualifying patient's physician or advanced practice registered nurse states that the patient's debilitating medical condition is chronic in nature.]"

8. By repealing the definition of "adequate supply for a qualifying out-of-state patient":

[""Adequate supply for a qualifying out-of-state patient" means an amount of cannabis individually possessed by a qualifying out-of-state patient or jointly possessed by a qualifying out-of-state patient who is under eighteen years old and the caregiver of the qualifying out-of-state patient that is not more than is reasonably necessary to ensure the uninterrupted availability of cannabis for the purpose of alleviating the symptoms or effects of the qualifying out-of-state patient's debilitating medical condition; provided that an "adequate supply for a qualifying out-of-state patient" shall not exceed four ounces of usable cannabis at any given time and shall not include live plants. The four ounces of usable cannabis shall include any combination of usable cannabis and manufactured cannabis products, as provided in chapter 329D; provided that the usable cannabis in the manufactured products shall be calculated using information provided pursuant to section 329D-9(c)."]

SECTION 6. Section 329-122, Hawaii Revised Statutes, is amended as follows:

1. By amending subsections (a), (b), (c), and (d) to read:

"(a) Notwithstanding any law to the contrary, the medical use of cannabis by a qualifying patient shall be permitted only if:

(1) The qualifying patient has been diagnosed by a [~~physician or advanced practice registered nurse~~] medical provider as having a debilitating medical condition;

(2) The qualifying patient's [~~physician or advanced practice registered nurse~~] medical provider has certified in writing that, in the [~~physician's or advanced practice registered nurse's~~] medical provider's professional opinion, the potential benefits of the medical use of cannabis would likely outweigh the health risks for the particular qualifying patient; and

(3) The amount of cannabis possessed by the qualifying patient at any given time does not exceed an adequate supply[.] for a qualifying patient, which is eight pounds of usable cannabis, or the amount cultivated as described in paragraph (1) of section 329-A.

(b) Subsection (a) shall not apply to a qualifying patient under the age of eighteen years, unless:

(1) The qualifying patient's [~~physician or advanced practice registered nurse~~] medical provider has explained the potential risks and benefits of the medical use of cannabis to the qualifying patient and to a parent, guardian, or person having legal custody of the qualifying patient; and

(2) A parent, guardian, or person having legal custody consents in writing to:

(A) Allow the qualifying patient's medical use of cannabis;

(B) Serve as the qualifying patient's primary caregiver; and

(C) Control the acquisition of the cannabis, the dosage, and the frequency of the medical use of cannabis by the qualifying patient.

(c) Notwithstanding any law to the contrary, the medical use of cannabis within the State by a qualifying out-of-state patient aged eighteen years or older legally authorized to use cannabis for medical purposes in another state, a United States territory, or the District of Columbia shall be permitted only if the qualifying out-of-state patient[:

~~(1)~~ Provides to the department of health a valid medical use of cannabis card with an explicit expiration date that has not yet passed from the issuing jurisdiction and a valid photographic identification card or driver's license issued by the same jurisdiction;

~~(2)~~ Attests under penalty of law pursuant to section 710‑1063 that the condition for which the qualifying out-of-state patient is legally authorized to use cannabis for medical purposes is a debilitating medical condition as defined in section 329-121;

~~(3)~~ Provides consent for the department of health to obtain information from the qualifying out-of-state patient's certifying medical provider and from the entity that issued the medical cannabis card for the purpose of allowing the department of health to verify the information provided in the registration process;

~~(4)~~ ~~Pays the required fee for out-of-state registration to use cannabis for medical purposes;~~

~~(5)~~ ~~Registers with the department of health pursuant to section 329-123.5 to use cannabis for medical purposes;~~

~~(6)~~ ~~Receives a medical cannabis registry card from the department of health; and~~

~~(7)~~ ~~Abides~~] abides by all laws relating to the medical use of cannabis, including not possessing at any given time an amount of cannabis that exceeds an adequate supply[.] for a qualifying out-of-state patient, which is four ounces of usable cannabis.

(d) Notwithstanding any law to the contrary, the medical use of cannabis by a qualifying out-of-state patient under eighteen years of age shall only be permitted if[:

~~(1)~~ ~~The caregiver of the qualifying out-of-state patient provides the information required pursuant to subsection (c); and~~

~~(2)~~] (1) The caregiver of the qualifying out-of-state patient consents in writing to:

(A) Allow the qualifying out-of-state patient's medical use of cannabis;

(B) Undertake the responsibility for managing the well-being of the qualifying out-of-state patient who is under eighteen years of age with respect to the medical use of cannabis; and

(C) Control the acquisition of the cannabis, the dosage, and the frequency of the medical use of cannabis by the qualifying out-of-state patient who is under eighteen years of age[.]; and

(2) The caregiver of the qualifying out-of-state patient submits the written consent to the department of health before the qualifying out-of-state patient engages in the medical use of cannabis."

2. By amending subsection (f) to read:

"(f) For the purposes of this section, [~~"transport" means~~] the authorized transportation of cannabis, usable cannabis, or any manufactured cannabis product shall be limited to transportation between:

(1) A qualifying patient and the qualifying patient's primary caregiver;

(2) A qualifying out-of-state patient under eighteen years of age and the caregiver of a qualifying out-of-state patient;

(3) The production centers and the retail dispensing locations under a dispensary licensee's license;

(4) Dispensaries, to the extent authorized by section 329D-6(r); [or]

(5) A production center, retail dispensing location, qualifying patient, primary caregiver, qualifying out‑of-state patient, or caregiver of a qualifying out-of-state patient and a certified laboratory for the purpose of laboratory testing[;] and research purposes; provided that a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient may only transport up to one gram of cannabis per test to a certified laboratory for laboratory testing and research purposes and may only transport the product if the qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient:

(A) Secures an appointment for testing at a certified laboratory;

(B) Obtains confirmation, which may be electronic, that includes the specific time and date of the appointment and a detailed description of the product and amount to be transported to the certified laboratory for the appointment; and

(6) Any two points within an island of the State, if the person performing the transportation is a qualifying patient and the cannabis is for the patient's medical use.

For purposes of interisland transportation, [~~"transport"~~] the transportation of cannabis, usable cannabis, or any manufactured cannabis product, by any means is allowable only between dispensaries to the extent authorized by section 329D‑6(r) and between a production center or retail dispensing location and a certified laboratory for the sole purpose of laboratory testing pursuant to section 329D-8, as permitted under section 329D-6(m) and subject to section 329D-6(j)[,]; and between cultivation site licensees pursuant to chapter , and with the understanding that state law and its protections do not apply outside of the jurisdictional limits of the State. Allowable [~~transport~~] transportation pursuant to this section does not include interisland transportation by any means or for any purpose between a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient and any other entity or individual, including an individual who is a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient."

SECTION 7. Section 329-123, Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c) to read as follows:

"(a) [~~Physicians or advanced practice registered nurses~~] Medical providers who issue written certifications shall provide, in each written certification, the name, address, patient identification number, and other identifying information of the qualifying patient. The department of health shall require, in rules adopted pursuant to chapter 91, that all written certifications comply with a designated form completed by or on behalf of a qualifying patient. The form shall require information from the applicant, primary caregiver, and [~~physician or advanced practice registered nurse~~] medical provider as specifically required or permitted by this chapter. The form shall require the address of the location where the cannabis is grown and shall appear on the registry card issued by the department of health. The certifying [~~physician or advanced practice registered nurse~~] medical provider shall be required to have a bona fide [~~physician-patient relationship or bona fide advanced practice registered nurse-patient~~ ~~relationship, as applicable,~~] medical provider-patient relationship with the qualifying patient. Each written certification shall be valid for one year from the time of signing; provided that the department of health may allow for the validity of any written certification for three years if the qualifying patient's medical provider states that the debilitating medical condition is chronic in nature. All current active medical cannabis permits shall be honored through their expiration date.

(b) Qualifying patients shall register with the department of health. The registration shall be effective until the expiration of the certificate issued by the department of health and signed by the [~~physician or advanced practice registered nurse~~] medical provider. Every qualifying patient shall provide sufficient identifying information to establish the personal identities of the qualifying patient and the primary caregiver. Qualifying patients shall report changes in information within ten working days. Every qualifying patient [~~shall~~] who is an adult may have [~~only one~~] primary [~~caregiver~~] caregivers at any given time[.], to the extent necessary to effectively assist the patient. The department of health shall issue to the qualifying patient a registration certificate [~~and~~]. The department of health may not charge a fee for a patient to receive a written certification, but may charge [a] an annual fee for [~~the certificate~~] registration in an amount adopted by rules pursuant to chapter 91[.], subject to the limitations of section 321‑30.1(c). Every qualifying patient shall provide to inspectors from the department of health appropriate documentation demonstrating the patient's status as a patient and the patient's age, when circumstances warrant.

(c) Primary caregivers shall register with the department of health. [~~Every primary caregiver shall be responsible for the care of only one qualifying patient at any given time,~~ unless the primary caregiver is the parent, guardian, or person having legal custody of more than one minor qualifying patient, in which case the primary caregiver may be responsible for the care of more than one minor qualifying patient at any given time; provided that the primary caregiver is the parent, guardian, or person having legal custody of all of the primary caregiver's qualifying patients.] The department of health [~~may~~] shall permit registration of [~~up to two~~] multiple primary caregivers for a minor qualifying patient; provided that [~~both~~] no fewer than one primary [~~caregivers are the~~] caregiver shall be a parent, guardian, or person having legal custody of the minor qualifying patient."

SECTION 8. Section 329-123.5, Hawaii Revised Statutes, is amended to read as follows:

"§329-123.5 Registration [~~requirements;~~] not required; qualifying out-of-state patient; caregiver of a qualifying out‑of-state patient. [~~(a)~~] Notwithstanding section 329-123, a qualifying out-of-state patient and a caregiver of a qualifying out-of-state patient shall not be required to register with the department of health [~~as established by rule~~]. [The registration shall be effective for no more than sixty days and may be renewed for no more than one additional sixty-day period that begins no later than twelve months after the preceding registration date; provided that the department shall not register any qualifying out-of-state patient for a period that exceeds the term of validity of the qualifying out-of-state patient's authority to use medical cannabis in the qualifying out-of-state patient's home jurisdiction.

~~(b) A qualifying out-of-state patient aged eighteen or older, at a minimum, shall meet the following criteria for registration:~~

~~(1)~~ Provide a valid government-issued medical cannabis card issued to the qualifying out-of-state patient by another state, United States territory, or the District of Columbia; provided that the medical cannabis card has an expiration date and has not expired;

~~(2)~~ ~~Provide a valid photographic identification card or driver's license issued by the same jurisdiction that issued the medical cannabis card; and~~

~~(3)~~ ~~Have a debilitating medical condition, as defined in section 329-121.~~

(c) A qualifying out-of-state patient under eighteen years of age may be registered pursuant to this section only if the qualifying patient has a debilitating medical condition as defined in section 329-121 and the caregiver of the qualifying out-of-state patient, at a minimum, meets the requirements of paragraphs (1) and (2) of subsection (b) and consents in writing to:

~~(1)~~ ~~Allow the qualifying out-of-state patient's medical use of cannabis;~~

~~(2)~~ ~~Undertake the responsibility for managing the well‑being of the qualifying out-of-state patient who is under eighteen years of age, with respect to the medical use of cannabis; and~~

~~(3)~~ ~~Control the acquisition of the cannabis, the dosage, and the frequency of the medical use of cannabis by the qualifying out-of-state patient who is under eighteen years of age.~~

(d) In the case of any qualifying out-of-state patient who is under eighteen years of age, the department of health shall register the qualifying out-of-state patient and the caregiver of the qualifying out-of-state patient; provided that the department may register two caregivers for a qualifying out‑of‑state patient if each caregiver is the parent, guardian, or person having legal custody of the qualifying out-of-state patient who is under eighteen years of age.

~~(e) Each qualifying out-of-state patient shall pay a fee in an amount established by rules adopted by the department pursuant to chapter 91 for each registration and renewal.~~

(f) Upon inquiry by a law enforcement agency, the department of health shall immediately verify whether the subject of the inquiry has registered with the department of health and may provide reasonable access to the registry information for official law enforcement purposes. An inquiry and verification under this subsection may be made twenty-four hours a day, seven days a week.

(g) The department of health may temporarily suspend the registration of a qualifying out-of-state patient or a registered caregiver of a qualifying out-of-state patient for a period of up to thirty days if the department of health determines that the registration process for qualifying patients or primary caregivers is being adversely affected or the supply of cannabis for medical use available in licensed dispensaries is insufficient to serve qualifying patients and qualifying out‑of-state patients. A temporary suspension may be extended by thirty-day periods until the department of health determines ~~that:~~

~~(1)~~ ~~Adequate capacity exists to register~~ ~~qualifying out‑of-state patients and caregivers of qualifying out-of-state patients in addition to qualifying patients and primary caregivers; and~~

~~(2)~~ ~~The licensed dispensaries are able to meet the demands of qualifying patients.~~]"

SECTION 9. Section 329-125, Hawaii Revised Statutes, is amended to read as follows:

"(a) A qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient [may assert the medical use of cannabis authorized under this part as an affirmative defense to any prosecution involving marijuana under this part, part IV, or part IV of chapter 712; provided that the qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient strictly complied with the requirements of this part.] shall not be subject to prosecution, search, seizure, or penalty in any manner, including any civil penalty or disciplinary action by a business or an occupational or professional licensing board or other body, and shall not be denied any right or privilege solely for acting in accordance with this part for the medical use or for assisting in the medical use of cannabis in accordance with this part.

(b) An officer or director or assistant of a primary caregiver that is a private entity shall not be subject to arrest, prosecution, search, seizure or penalty in any manner, including any civil penalty or disciplinary action by a business or an occupational or professional licensing board or other body, and shall not be denied any right or privilege solely for working for or with another primary caregiver, cannabis testing facility, manufacturing facility, or dispensary to provide cannabis plants and cannabis products to qualifying patients, other primary caregivers, dispensaries, manufacturing facilities, or cannabis testing facilities, or to otherwise assist with the medical use of cannabis in accordance with this chapter.

[~~(b)~~] (c) Any qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient not complying with the permitted scope of the medical use of cannabis shall not be afforded the protections against searches and seizures pertaining to the misapplication of the medical use of cannabis.

[~~(c)~~] (d) No person shall be subject to arrest or prosecution for simply being in the presence or vicinity of the medical use of cannabis as permitted under this part."

SECTION 10. Section 329-127, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Cannabis, cannabis paraphernalia, or other property in connection with a claimed medical use of cannabis under this part shall not be seized by any law enforcement officer from a qualifying patient [or], primary caregiver [~~in connection with a claimed medical use of cannabis under this part~~], cannabis testing facility, manufacturing facility, or licensed dispensary, except when necessary for an ongoing criminal or civil investigation. A law enforcement officer who has improperly seized cannabis or other property shall return the cannabis to the owner of the cannabis within seven days after receiving the owner's written request for the return. Further, any property seized shall be returned immediately upon the determination by a court that the qualifying patient or primary caregiver is entitled to the protections of this part, as evidenced by a decision not to prosecute, dismissal of charges, or an acquittal; provided that law enforcement agencies seizing live plants as evidence shall not be responsible for the care and maintenance of such plants."

PART IV

SECTION 11. Section 329D-7, Hawaii Revised Statutes, is amended to read as follows:

"§329D-7 Medical cannabis dispensary rules. The department shall establish standards with respect to:

(1) The number of medical cannabis dispensaries that shall be permitted to operate in the State;

(2) A fee structure, set by rules adopted pursuant to chapter 91, for:

(A) The submission of applications and renewals of licenses to dispensaries; provided that the department shall consider the market conditions in each county in determining the license renewal fee amounts;

(B) The submission of applications for each additional production center; and

(C) Dispensary-to-dispensary sales authorized by section 329D-6(r); provided that no designated fee shall increase by more than two and one-half per cent annually;

(3) Criteria and procedures for the consideration and selection, based on merit, of applications for licensure of dispensaries; provided that the criteria shall include but not be limited to an applicant's:

(A) Ability to operate a business;

(B) Financial stability and access to financial resources; provided that applicants for medical cannabis dispensary licenses shall provide documentation that demonstrates control of not less than $1,000,000 in the form of escrow accounts, letters of credit, surety bonds, bank statements, lines of credit or the equivalent to begin operating the dispensary;

(D) Capacity to meet the needs of qualifying patients and qualifying out-of-state patients;

(E) Ability to comply with criminal background check requirements developed pursuant to paragraph (8); and

(F) Ability to comply with inventory controls developed pursuant to paragraph (13);

(4) Specific requirements regarding annual audits and reports required from each production center and dispensary licensed pursuant to this chapter;

(5) Procedures for announced and unannounced inspections by the department or its agents of production centers and dispensaries licensed pursuant to this chapter; provided that inspections for license renewals shall be unannounced;

(6) Security requirements for the operation of production centers and retail dispensing locations; provided that, at a minimum, the following shall be required:

(A) For production centers:

(i) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;

(ii) Fencing that surrounds the premises and that is sufficient to reasonably deter intruders and prevent anyone outside the premises from viewing any cannabis in any form;

(iii) An alarm system; and

(iv) Other reasonable security measures to deter or prevent intruders, as deemed necessary by the department; and

(B) For retail dispensing locations:

(i) Presentation of a valid government-issued photo identification [and a valid identification as issued by the department pursuant to section 329-123 by a qualifying patient or caregiver, or section 329-123.5 by a qualifying out-of-state patient or caregiver of a qualifying out-of-state patient], upon entering the premises;

(ii) Presentation of valid identification of a person as a qualifying patient or primary caregiver, as issued by the department pursuant to section 329-123, if the person is a qualifying patient or primary caregiver;

(iii) Presentation of valid identification of a person as a qualifying out-of-state patient or caregiver of a qualifying out-of-state patient, as issued by the appropriate governmental agency of the person's state of residence, if the person is a qualifying out-of-state patient or caregiver of a qualifying out-of-state patient;

[~~(ii)~~] (iv) Video monitoring and recording of the premises; provided that recordings shall be retained for fifty days;

[(~~iii~~)] (v) An alarm system;

[~~(iv)~~] (vi) Exterior lighting; and

[~~(v)~~] (vii) Other reasonable security measures as deemed necessary by the department;

(7) Security requirements for the transportation of cannabis and manufactured cannabis products between production centers and retail dispensing locations and between a production center, retail dispensing location, qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient and a certified laboratory, pursuant to section 329-122(f);

(8) Standards and criminal background checks to ensure the reputable and responsible character and fitness of all license applicants, licensees, employees, subcontractors and their employees, and prospective employees of medical cannabis dispensaries to operate a dispensary; provided that the standards, at a minimum, shall exclude from licensure or employment any person convicted of any felony;

(9) The training and certification of operators and employees of production centers and dispensaries;

(10) The types of manufactured cannabis products that dispensaries shall be authorized to manufacture and sell pursuant to sections 329D-9 and 329D-10;

(11) Laboratory standards related to testing cannabis and manufactured cannabis products for content, contamination, and consistency;

(12) The quantities of cannabis and manufactured cannabis products that a dispensary may sell or provide to a qualifying patient, primary caregiver, qualifying out‑of-state patient, or caregiver of a qualifying out-of-state patient; provided that no dispensary shall sell or provide to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out-of-state patient any combination of cannabis and manufactured products that:

(A) During a period of fifteen consecutive days, exceeds the equivalent of four ounces of cannabis; or

(B) During a period of thirty consecutive days, exceeds the equivalent of eight ounces of cannabis;

(13) Dispensary and production center inventory controls to prevent the unauthorized diversion of cannabis or manufactured cannabis products or the distribution of cannabis or manufactured cannabis products to a qualifying patient, primary caregiver, qualifying out‑of-state patient, or caregiver of a qualifying out-of-state patient in quantities that exceed limits established by this chapter; provided that the controls, at a minimum, shall include:

(A) A computer software tracking system as specified in section 329D-6(j) and (k); and

(B) Product packaging standards sufficient to allow law enforcement personnel to reasonably determine the contents of an unopened package;

(14) Limitation to the size or format of signs placed outside a retail dispensing location or production center; provided that the signage limitations, at a minimum, shall comply with section 329D-6(o)(2) and shall not include the image of a cartoon character or other design intended to appeal to children;

(15) The disposal or destruction of unwanted or unused cannabis and manufactured cannabis products;

(16) The enforcement of the following prohibitions against:

(A) The sale or provision of cannabis or manufactured cannabis products to unauthorized persons;

(B) The sale or provision of cannabis or manufactured cannabis products to a qualifying patient, primary caregiver, qualifying out-of-state patient, or caregiver of a qualifying out‑of‑state patient in quantities that exceed limits established by this chapter;

(C) Any use or consumption of cannabis or manufactured cannabis products on the premises of a retail dispensing location or production center; and

(D) The distribution of cannabis or manufactured cannabis products, for free, on the premises of a retail dispensing location or production center;

(17) The establishment of a range of penalties for violations of this chapter or rule adopted thereto;

(18) A process to recognize [~~and register~~] patients who are authorized to purchase, possess, and use medical cannabis in another state, a United States territory, or the District of Columbia as qualifying out-of-state patients[~~; provided that this registration process may commence no sooner than January 1, 2018~~]; and

(19) Security requirements and restrictions regarding waiting rooms, including but not limited to:

(A) Security measures to prevent unauthorized access to any area within the retail dispensing location outside of the waiting room;

(B) Restrictions on marketing and advertising within the waiting room;

(D) Other reasonable security measures or restrictions as deemed necessary by the department."

SECTION 12. Section 329D-13, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) [~~Beginning on January 1, 2018, this~~] This section may apply to qualifying out-of-state patients from other states, territories of the United States, or the District of Columbia; provided that the patient meets the [~~registration~~] requirements of [~~section 329-123.5.~~] part IX of chapter 329."

PART V

SECTION 13. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237- Additional amounts not taxable; medical cannabis. In addition to the amounts not taxable under section 237-24, this chapter shall not apply to sales of cannabis conducted pursuant to chapter , except for retail sales to consumers."

SECTION 14. Section 201-13.9, Hawaii Revised Statutes, is amended to read as follows:

"§201-13.9 Medical cannabis; economic and other data; collection. (a) The department shall continuously collect de‑identified information regarding the medical cannabis registry and dispensary programs established pursuant to chapters 329 [~~and~~], 329D, and , including [~~but not limited to~~] information regarding the:

(1) Quantities of cannabis cultivated and dispensed;

(2) Number of applications received by the department of health to register as a qualifying patient or primary caregiver;

[~~(2)~~] (3) Number of qualifying patients[;] and primary caregivers registered, by county of residence;

(4) Number of qualifying patients and primary caregivers whose privileges have been suspended or revoked;

(5) Number of medical providers providing written certifications for qualifying patients;

(6) Number of licensed cultivation site collectives, by county;

[~~(3)~~] (7) Geographic areas in which cannabis is cultivated and consumed;

[~~(4)~~] (8) Prices of cannabis and related products;

[~~(5)~~] (9) Number of employment opportunities related to cannabis; and

[~~(6)~~] (10) Economic impact of cannabis cultivation and sales.

(b) The department of health [~~and~~], dispensaries licensed pursuant to chapter 329D, and cultivation site collectives licensed pursuant to chapter shall provide de-identified aggregated data as required by the department pursuant to this section.

(c) [~~Upon request, the~~] The department shall provide an annual report and analysis of the aggregated de-identified data to the department of health and the legislature[.] no later than twenty days prior to each regular session."

SECTION 15. Section 321-30.1, Hawaii Revised Statutes, is amended to read as follows:

"§321-30.1 Medical cannabis registry and regulation special fund; established. (a) There is established within the state treasury the medical cannabis registry and regulation special fund. The fund shall be expended at the discretion of the director of health:

(1) To establish and regulate [~~a system~~] systems of medical cannabis dispensaries and cultivation site collectives in the State;

(2) To offset the cost of the processing and issuance of patient registry identification certificates and primary caregiver registration certificates;

(3) To fund positions and operating costs authorized by the legislature;

(4) To establish and manage a secure and confidential database;

(5) To fund public education as required by section 329D‑26;

(6) To fund substance abuse prevention and education programs; and

(7) For any other expenditure necessary, consistent with this chapter [~~and~~], chapter 329D, and chapter , to implement medical cannabis registry and regulation programs.

(b) The fund shall consist of all moneys derived from fees collected pursuant to subsection (c) [~~and~~], section 329D-4[.], and section -C. There is established within the medical cannabis registry and regulation special fund:

(1) A medical cannabis registry program sub-account, into which shall be deposited all fees collected pursuant to subsection (c); [~~and~~]

(2) A medical cannabis dispensary program sub-account, into which shall be deposited all fees collected pursuant to section 329D-4[.]; and

(3) A medical cannabis cultivation collective system subaccount, into which shall be deposited all fees collected pursuant to section -C.

(c) The department, upon completion of the transfer of the medical use of cannabis program, shall charge a medical cannabis registration fee to each qualifying patient, other than a qualifying out‑of-state patient, of no less than $20 per year and no more than [~~$35~~] $50 per year."

SECTION 16. Section 421J-16, Hawaii Revised Statutes, is amended to read as follows:

"§421J-16 Medical cannabis; discrimination. (a) A provision in any association document allowing for any of the discriminatory practices listed in section 515-3(a)(1) to (7) against a person residing in a unit who [~~has~~]:

(1) Has a valid certificate for the medical use of cannabis as provided in section 329-123 in any form;

(2) Holds a license to cultivate cannabis pursuant to chapter ; or

(3) Is an employee, officer, or director of a private entity that holds a license to cultivate cannabis pursuant to chapter ,

is void, [~~unless the~~] except as provided in subsection (b).

(b) Subsection (a) shall not apply if:

(1) The association document also prohibits the smoking of tobacco and the medical cannabis is used by means of smoking[.]; or

(2) The relevant provision is necessary for the association to comply with federal law or a federal contract, or to receive federal funds.

(c) Nothing in this section shall be construed to diminish the obligation of a planned community association to provide reasonable accommodations for persons with disabilities pursuant to section 515-3(a)(9)."

SECTION 17. Section 514B-113, Hawaii Revised Statutes, is amended to read as follows:

"§514B-113 Medical cannabis; discrimination. (a) A provision in any articles of incorporation, declaration, bylaws, administrative rules, house rules, or association documents of a condominium allowing for any of the discriminatory practices listed in section 515-3(a)(1) to (7) against a person residing in a unit who [~~has~~]:

(1) Has a valid certificate for the medical use of cannabis as provided in section 329-123 in any form;

(2) Holds a license to cultivate cannabis pursuant to chapter ; or

(3) Is an employee, officer, or director of a private entity that holds a license to cultivate cannabis pursuant to chapter ,

is void, [~~unless the~~] except as provided in subsection (b).

(b) Subsection (a) shall not apply if:

(1) The documents also prohibit the smoking of tobacco and the medical cannabis is used by means of smoking[.]; or

(2) The relevant provision is necessary for the condominium to comply with federal law or a federal contract, or to receive federal funds.

(c) Nothing in this section shall be construed to diminish the obligation of a condominium association to provide reasonable accommodations for persons with disabilities pursuant to section 515-3(a)(9)."

SECTION 18. Section 521-39, Hawaii Revised Statutes, is amended to read as follows:

"§521-39 Medical cannabis; tenant use; eviction. (a) A provision in a rental agreement allowing for eviction of a tenant who [~~has~~]:

(1) Has a valid certificate for the medical use of cannabis as provided in section 329-123 in any form;

(2) Holds a license to cultivate cannabis pursuant to chapter ; or

(3) Is an employee, officer, or director of a private entity that holds a license to cultivate cannabis pursuant to chapter ,

is void, [~~unless the~~] except as provided in subsection (b).

(b) Subsection (a) shall not apply if:

(1) The rental agreement also allows for eviction for smoking tobacco and the medical cannabis is used by means of smoking; [~~provided that this section shall not apply where the~~]

(2) The articles of incorporation, declaration, bylaws, administrative rules, house rules, association documents, or a similar document of a condominium property regime or planned community association also prohibits the smoking of tobacco and the medical [~~use of~~] cannabis[.] is used by means of smoking; or

(3) The relevant provision is necessary for the landlord, condominium property regime, or planned community association to comply with federal law or a federal contract, or to receive federal funds."

PART VI

SECTION 19. In codifying the new sections added by sections 2 and 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 20. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 21. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 22. This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	602
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII