CONFERENCE COMMITTEE REP. NO. 253

Honolulu, Hawaii

, 2025

RE: H.B. No. 1482

H.D. 1

S.D. 3

C.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madam and Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1482, H.D. 1, S.D. 3, entitled:

"A BILL FOR AN ACT RELATED TO CONTROLLED SUBSTANCES,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to strengthen the regulatory and enforcement framework governing hemp-derived cannabinoids by:

(1) Beginning January 1, 2026, requiring manufactured hemp product distributors and manufactured hemp product retailers to obtain certificates of registration from the Department of Health;

(2) Establishing the offense of unlawful hemp retailing and distribution;

(3) Specifying the authority to inspect businesses engaged in the distribution and sale of, and authority to seize or confiscate, products containing or derived from hemp;

(4) Specifying that the offense of unlawful hemp retailing and distribution is subject to nuisance abatement proceedings;

(5) Establishing that a violation of the hemp processor laws constitutes an unfair or deceptive act or practice and unfair method of competition subject to a civil penalty;

(6) Authorizing the Hawaii Hemp Processing Special Fund to be used to establish the registry of manufactured hemp product distributors and manufactured hemp product retailers;

(7) Authorizing the Office of Medical Cannabis Control and Regulation to administer the Hemp Processors Program;

(8) Establishing that every building, premises, or place used for the purpose of violating the hemp processors law is a nuisance subject to abatement; and

(9) Appropriating funds.

Your Committee on Conference has amended this measure by:

(1) Specifying that certificates of registration are valid for five years, rather than one year;

(2) Deleting the exemption from the registration requirements for persons holding a valid United States Department of Agriculture license to grow hemp;

(3) Specifying that a person holding a hemp processor permit shall be issued a certificate of registration that is valid for a period coterminous with the permit and shall be exempt from the fees;

(4) Prohibiting the sale of tinctures to persons under twenty-one years of age;

(5) Lowering the allowable volume for a tincture from two ounces to one ounce;

(6) Deleting the appropriations;

(7) Changing the effective date to July 1, 2025; and

(8) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1482, H.D. 1, S.D. 3, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1482, H.D. 1, S.D. 3, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ JOY A. SAN BUENAVENTURA Chair	____________________________ GREGG TAKAYAMA Co-Chair
____________________________ JARRETT KEOHOKALOLE Co-Chair	____________________________ SCOT Z. MATAYOSHI Co-Chair
____________________________ MIKE GABBARD Co-Chair	____________________________ DAVID A. TARNAS Co-Chair
____________________________ DONNA MERCADO KIM Co-Chair	____________________________ JENNA TAKENOUCHI Co-Chair