Bill Text: HI HB1111 | 2025 | Regular Session | Introduced
Bill Title: Relating To Registration To Sell Manufactured Hemp Products.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-01-23 - Referred to HLT, CPC, FIN, referral sheet 3 [HB1111 Detail]
Download: Hawaii-2025-HB1111-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1111 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO REGISTRATION TO SELL MANUFACTURED HEMP PRODUCTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The
legislature finds that hemp is a high-value crop that has the potential to bring
significant and diverse revenues to Hawaii.
Act 263, Session Laws of Hawaii 2023, established a Hawaii hemp task force
jointly convened by the department of agriculture and the department of health to
gather data and information to better understand hemp industry needs. The task force reported that most hemp-derived
cannabinoid products purchased in Hawaii are primarily imported, non-compliant products,
which, if unregulated, may pose health risks to Hawaii consumers. The proliferation of non-compliant hemp-derived cannabinoid products
sold in Hawaii, both in local stores and online, has made enforcement of current
laws difficult.
Accordingly,
the purpose of this Act is to create a system to register manufactured hemp product
retailers and distributors. This registration
system will enable the department of health to effectively monitor
the sale of manufactured hemp products, identify non-compliant sellers, and trace
adverse events back to specific retailers and distributors to quickly notify consumers
that may be affected by non-compliant hemp-derived cannabinoid products.
SECTION 2. Chapter 328G, Hawaii Revised Statues, is amended by adding one new section to be appropriately designated and to read as follows:
"§328G- Application; renewals; suspension or revocation
of certificates; exceptions. (a) No manufactured hemp product distributor or manufactured
hemp product retailer shall sell manufactured hemp products except in direct in-person
or online transactions.
(b) Beginning January 1, 2026, no manufactured hemp
product distributor or manufactured hemp product retailer shall sell or offer for
sale manufactured hemp products without a certificate of registration issued by
the department pursuant to this section.
It shall be the responsibility of the manufactured hemp product distributor
or manufactured hemp product retailer to confirm that a valid certificate of registration
has been obtained and is in compliance with any and all laws and regulations.
(c) A manufactured hemp product distributor or manufactured
hemp product retailer that sells or offers for sale or intends to sell or offer
for sale manufactured hemp products shall apply to the department to be registered
and receive a certificate of registration on an application form designated by the
department and pay an application fee of $50.
(d) Any incomplete application shall be denied. An application that fails to contain all the information
as required by the department shall be deemed incomplete.
(e) After the department's receipt of a complete and
accurate application form and payment of the application fee, the department shall
list the manufactured hemp product distributor or manufactured hemp product retailer
as a registrant on the registry and issue a certificate of registration. Whenever a certification of registration is defaced,
destroyed, or lost, the department may issue a duplicate certificate of registration
to the registrant for a fee of $10 per copy.
(f) The department shall post on its website a current
list of registrants on the registry.
(g) The certificate of registration shall be renewed
annually by receipt of a completed renewal application and payment of the annual
renewal fee of $50.
(h) All fees required under this section are non-transferable
and non-refundable and shall be fully paid prior to the issuance of a new or renewed
certificate of registration.
(i) A certificate of registration issued under this
section shall be displayed at all times in a conspicuous place at the place of business
where the sale of manufactured hemp products is conducted and a digital reproduction
of the certificate conspicuously shall be displayed on the website of a registrant
conducting sales online.
(j) A registrant shall allow any employee of the department,
or any agent or third party authorized by the department, to enter at reasonable
times upon any property where the registrant sells manufactured hemp products for
the purposes of inspecting, sampling, or testing the manufactured hemp products,
inspect equipment or facilities incident to the storage of manufactured hemp products,
or review all records pertinent to manufactured hemp products.
(k) The department may suspend or revoke a registrant's certificate of registration for failure to comply with this chapter and rules adopted under this chapter pursuant to the procedures set forth in section 328G-6.
(l) Carriers or entities that ship goods shall not
be subject to this section by reason of their receipt, carriage, holding, shipping,
or delivery of manufactured hemp products in the usual course of business as carriers
or entities that ship goods unless the carrier or the entity sells or offers for
sale manufactured hemp products."
SECTION 3. Section 328G-1, Hawaii Revised Statutes, is amended as follows:
1. By adding seven new definitions to be appropriately inserted and to read:
""Certificate
of registration" means the certificate issued by the department authorizing
the sale of manufactured hemp products by the registrant.
"Consumer"
means a person who is a member of the public, is not functioning in the capacity
of an operator of a hemp processing facility, and does not process hemp biomass,
produce manufactured hemp products, or offer manufactured hemp products for resale.
"Manufactured
hemp product distributor" means a person selling
manufactured hemp products to manufactured hemp product retailer and includes its
agents and employees.
"Manufactured
hemp product retailer" means a person selling manufactured hemp products to
consumers and includes its agents and employees.
"Registrant"
means the holder of the certificate of registration.
"Registry" means
list of registrants maintained by the department of registered hemp
product retailers or manufactured hemp product distributors.
"Sale,"
"sell," or "selling", means offering any transactions, whether
cash is actually paid therefor or not, of hemp, hemp biomass, crude extract or manufactured
hemp products and includes resale and every act of selling that originates from
any order that is placed or submitted in-person or by means of telephonic or other
synchronous online communication methods, the mail, catalog, or digital application,
the internet or other online service."
2. By amending the definition of "permit" to read:
""Permit"
means the [certificate] document issued by the department attesting
that the applicant is permitted to operate as a hemp processor."
SECTION 4. Section 328G-6, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:
"(b)
Any order issued under this chapter shall become final, unless not later
than twenty days after the notice of order is served, the person or persons named
therein request in writing a hearing before the director. Any penalty imposed, including the revocation
of a permit[,] or suspension or revocation of a certificate of registration,
shall become final, and any monetary penalty shall become due and payable twenty
days after the order is served unless the person or persons named therein request
in writing a hearing before the director.
Whenever a hearing is requested, the penalty imposed, including permit revocation,
or suspension or revocation of a certificate of registration, shall become
final, and any monetary penalty shall become due and payable only upon completion
of all review proceedings and the issuance of a final order confirming the penalty
in whole or in part. Any hearing shall be conducted
in accordance with chapter 91.
(c) In any judicial proceeding to enforce an order issued by the
department pursuant to this section, including but not limited to the recovery of
administrative penalties imposed by order against a hemp processor[,]
or registrant, the director may petition any court
of appropriate jurisdiction for relief and need only show that:
(1) Notice was given;
(2) A hearing was
held or the time granted for requesting a hearing has expired
without such a request;
(3) The administrative penalty was imposed [or],
the hemp processor's permit was revoked[;], or the registrant's certificate
of registration was suspended or revoked; and
(4) The penalty remains
unpaid or the hemp processor or the registrant continues to operate."
SECTION 5. Section 328G-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Moneys in the Hawaii hemp processing special fund shall be used by department for the following purposes:
(1) To establish and regulate a system of permitting hemp processors and the sale, holding, offering, or distributing for sale of crude extract and manufactured hemp products;
(2) To establish and regulate a system for registering manufactured hemp product distributors and manufactured hemp product retailers to sell manufactured hemp products;
[(2)] (3) To fund positions and operating costs authorized
by the legislature; and
[(3)] (4) For any other expenditure necessary, consistent
with this chapter to implement the Hawaii hemp processing program."
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on upon its approval.
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INTRODUCED BY: |
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BY REQUEST |
Report Title:
DOH; Manufactured Hemp Products; Registration; Definitions
Description:
Requires manufactured hemp product distributors and manufactured hemp product retailers to register with the Department of Health to sell manufactured hemp products; requires the Department of Health to collect application fees and issue certificates of registration.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
