STAND. COM. REP. NO. 1288
Honolulu, Hawaii
RE: H.B. No. 1482
H.D. 1
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committees on Health and Human Services and Commerce and Consumer Protection, to which was referred H.B. No. 1482, H.D. 1, entitled:
"A BILL FOR AN ACT RELATED TO CONTROLLED SUBSTANCES,"
beg leave to report as follows:
The purpose and intent of this measure is to, for purposes of the hemp processors law, amend the definitions of "artificially derived cannabis" and "cannabis" to include, and the definition of "manufactured hemp product" to specifically exclude, all forms of cannabinoids classified as Schedule I under the Uniform Controlled Substances Act.
Your Committees received testimony in opposition to this measure from the Drug Policy Forum of Hawaii.
Your Committees received comments on this measure from the Department of the Attorney General.
Your Committees find that in recent years, a growing variety of cannabis products, including those containing delta‑8‑tetrahydrocannabinol (delta-8 THC), have gained significant prevalence in Hawaii, leading to increased public use and commercial availability of these products. Your Committees further find that delta-8 THC has been marketed as a legal alternative to traditional cannabis, despite similar psychoactive properties between the two. Your Committees note that the widespread availability and use of delta-8 THC and similar cannabinoids have raised concerns about consumer safety, labeling accuracy, potential health risks, and the need for appropriate regulatory oversight. Accordingly, this measure strengthens the legal framework governing hemp-derived cannabinoids by amending existing definitions to be either inclusive or exclusive of all forms of cannabinoids classified as Schedule I under the Uniform Controlled Substances Act.
Your Committees find, however, that this measure in its current form lacks elements to ensure a strong regulatory and enforcement framework and therefore amendments to this measure are necessary to address these concerns.
Your Committees have
amended this measure by deleting its contents and inserting language
that:
(1) Amends chapter
328G, Hawaii Revised Statutes, relating to hemp processors, by:
(A) Requiring the Department of Health to
establish and maintain a registry of all manufactured hemp product
distributors and manufactured hemp product retailers doing business in the State, and beginning January 1,
2026, prohibiting manufactured hemp product distributors
and manufactured hemp product retailers from
selling manufactured hemp products without a certificate of registration issued
by the Department of Health;
(B) Establishing
that a person or entity required to
be registered as a manufactured hemp product distributor or manufactured hemp product retailer commits the offense of unlawful hemp retailing or
distribution if the person or
entity recklessly fails to register as required and recklessly
sells any product containing or derived
from hemp;
(C) Authorizing
the Department of Health and the Attorney
General to inspect the operations, premises, and storage areas of any entity
engaged in the distribution or sale of any product containing or derived from
hemp to verify compliance with applicable law;
(D) Authorizing
the Department of Health, Attorney General, Department of Law Enforcement, and
the county police departments to seize and confiscate any product
containing or derived from hemp that is possessed, kept, stored, retained,
held, owned, received, acquired, distributed, sold, or offered for sale in
violation of applicable law;
(E) Inserting the definitions of "certificate
of registration"; "consumer"; "manufactured hemp product
distributor"; "manufactured hemp product retailer";
"registrant"; "registry"; and "sale",
"sell", or "selling";
(F) Amending the definition of "permit"
to mean the document, rather than the certificate, issued by the Department of
Health attesting that the applicant is permitted to operate as a hemp
processor;
(G) Authorizing the Director of
Health to impose by order the forfeiture of products kept, stored, retained,
held, owned, received, acquired, distributed, sold, or offered for sale in
violation of applicable law; and
(H) Establishing
that, in addition to any penalties provided by law:
(i) The offense of unlawful hemp retailing or
distribution shall be subject
to nuisance abatement proceedings;
(ii) Any product containing or derived from hemp,
or marketed as containing or being derived from hemp sold or distributed while
committing the offense of unlawful hemp retailing or distribution shall be
subject to forfeiture; and
(iii) A violation of chapter 328G, Hawaii Revised
Statutes, constitutes an unfair or deceptive act or practice and unfair method
of competition subject to a civil penalty; and
(I) Allowing
moneys in the Hawaii Hemp Processing
Special Fund to be used by the Department of Health for the registry;
(2) Amending
section 329D-2.5, Hawaii Revised Statutes, by
inserting language that authorizes the Office of Medical
Cannabis Control and Regulation to
administer the hemp processors
program;
(3) Amending
section 712-1270, Hawaii Revised Statutes, by
inserting language establishing that every building, premises, or place used
for the purpose of violating
chapter 328G, Hawaii Revised Statutes, is a
nuisance that shall be enjoined, abated, and prevented, regardless of whether
it is a public or private nuisance;
(4) Inserting
a blank appropriation for both years of the fiscal biennium for the
Department of the Attorney General to increase drug nuisance abatement actions
regarding illegal cannabis and hemp products;
(5) Inserting a blank appropriation for both years
of the fiscal biennium for the Department of Law Enforcement for
start-up costs to enforce this measure, including the establishment
of one full-time equivalent (1.0 FTE) criminalist
position;
(6) Making
it effective on July 1, 2025; and
(7) Making technical, nonsubstantive amendments
for the purposes of clarity and consistency.
Your Committees note that this measure, as amended, contains unspecified appropriation amounts. Should subsequent Committees to which this measure is referred choose to deliberate on this measure, your Committees respectfully request that they consider inserting an appropriation amount of $750,000 for the Department of the Attorney General to increase drug nuisance abatement actions regarding illegal cannabis and hemp products.
Your Committees acknowledge the concerns raised in testimony by the Department
of Law Enforcement that the
enforcement of this measure will require the development of an advanced
laboratory testing establishment. Your
Committees request the Department of Law Enforcement to work within
its existing funding with regard to the laboratory and
to collaborate with the Department of Transportation on the potential consolidation of state
land to use for the testing
of illegal hemp products under this
measure.
As affirmed by the records of votes of the members of your Committees on Health and Human Services and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1482, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1482, H.D. 1, S.D. 1, and be referred to your Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Commerce and Consumer Protection,
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________________________________ JARRETT KEOHOKALOLE, Chair |
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________________________________ JOY A. SAN BUENAVENTURA, Chair |
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