THE SENATE	S.B. NO.	1064
THIRTY-THIRD LEGISLATURE, 2025		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO MEDICAL CANNABIS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 329D, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§329D-   Unauthorized operation of a dispensary; criminal penalty. (a) It shall be unlawful for any person to operate a dispensary without a license from the department pursuant to this chapter.

(b) No person shall intentionally, knowingly, or recklessly operate any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products by an unlicensed person or entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products without a license pursuant to this chapter.

(c) The department shall issue a cease and desist notice to any person or entity who violates subsection (a) or (b); provided that the cease and desist notice shall be issued before initiating criminal proceedings.

(d) Any person who violates subsection (a) shall be guilty of a class C felony.

(e) It shall be an affirmative defense to subsection (b) that the person operating any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products had requested, examined, and reasonably relied upon a license that appeared to have been issued by the department that was shown by the unlicensed person or unlicensed entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products establishing that the unlicensed person or unlicensed entity was licensed by the department to engage in the production, manufacture, or sale of cannabis or manufactured cannabis products pursuant to this chapter. The failure of the person operating any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products to request and examine a license issued by the department from the unlicensed person or unlicensed entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products before providing access to any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products shall be construed against the person operating any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products and form a conclusive basis for the person’s violation of this section.

(f) This section shall not apply to:

(1) Hemp processors, hemp product retailers, or hemp produce retailers with a valid permit under chapter 328G; or

(2) Primary qualified caregivers registered under chapter 329 who are acting within the scope of their permit or registration.

§329D-   Cannabis cultivator; license required. (a) Notwithstanding section 329D-24, it shall be unlawful for any person to cultivate cannabis without a license from the department pursuant to this section.

(b) A cannabis cultivator license shall authorize:

(1) The acquisition and cultivation of cannabis plants, seeds, cuttings, or clones; and

(2) The distribution of cannabis plants and cannabis flower to a medical cannabis dispensary.

(c) The department shall issue not more than one cannabis cultivator license for each person.

(d) The maximum number of cannabis cultivator licenses that may be issued by the department to the public shall not exceed        licenses.

(e) The maximum size of plant canopy the department may authorize for each cannabis cultivator license shall be            square feet of plant canopy for indoor cultivations and            square feet of plant canopy for outdoor cultivations, or a maximum plant count of            mature cannabis plants for each cannabis cultivator license.

(f) For the purposes of this section, "plant canopy" means the square footage dedicated to flowering plants that are wider or taller than twelve inches. "Plant canopy" does not include areas such as space used for the storage of fertilizers, pesticides, or other products, quarantine, or office space."

SECTION 2. Section 321-30.1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(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 of medical cannabis dispensaries 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) To fund programs for the mitigation and abatement of nuisances relating to chapter 329D; and

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

SECTION 3. Section 329-123, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Physicians or advanced practice registered nurses 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 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 shall be required to have a bona fide physician-patient relationship or bona fide advanced practice registered nurse-patient relationship, as applicable, with the qualifying patient. All current active medical cannabis permits shall be honored through their expiration date. Any fees assessed by a certifying physician or advanced practice registered nurse to issue a written certification for a qualifying patient shall not exceed an amount equal to three times the amount of the fee charged by the department of health to issue a registration certificate pursuant to subsection (b)."

SECTION 4. There is appropriated out of the medical cannabis registry and regulation special fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the department of the attorney general to enforce, and mitigate nuisances relating to, chapter 329D, Hawaii Revised Statutes.

The sums appropriated shall be expended by the director of health for the purposes of this Act.

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on December 31, 2050.

Report Title:

DOH; Medical Cannabis; Cannabis Cultivator; Licensure; Requirement; Cease and Desist Notice; Penalty; Violations; Affirmative Defense; Conclusive Basis; Medical Cannabis Registry and Regulation Special Fund; Exceptions; Appropriations

Description:

Prohibits persons from operating a medical cannabis dispensary or cultivating cannabis without a license from the Department of Health. Prohibits individuals from providing certain services to individuals engaging in unlicensed cannabis operations. Requires the Department of Health to send a cease and desist notice to violators. Establishes criminal penalties. Establishes an affirmative defense for, and a conclusive basis for certain violations. Establishes exceptions. Establishes a cannabis cultivator license to authorize the cultivation and distribution of cannabis plants. Requires the Department of Health to only issue one cannabis cultivator license for each person. Establishes limits on: (1) the number of cannabis cultivator licenses the Department of Health may issue; (2) the maximum size of plant canopy for indoor and outdoor cultivations for each cannabis cultivator license; and (3) the maximum plant count of mature cannabis plants for each cannabis cultivator license. Authorizes expenditures from the Medical Cannabis Registry and Regulation Special Fund to fund programs for the mitigation and abatement of nuisances relating to chapter 329D, HRS. Appropriates funds out of the Medical Cannabis Registry and Regulation Special Fund for the Department of Attorney General to enforce, and mitigate nuisances relating to, chapter 329D, HRS. Effective 12/31/2050. (SD2)

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