Bill Text: HI HB1425 | 2024 | Regular Session | Introduced

Hawaii House Bill 1425

Introduced

Bill Title: Relating To Cannabis.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Introduced) 2023-12-11 - Carried over to 2024 Regular Session. [HB1425 Detail]

Download: Hawaii-2024-HB1425-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1425
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

relating to cannabis.

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

PART I

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter A

Adult Use Cannabis

PART I. GENERAL PROVISIONS

§A-1 Short title. This chapter may be cited as the Hawaii Adult Use Cannabis Law.

§A-2 Definitions. As used in this chapter, unless the context otherwise requires:

"Adult use" means use in accordance with part V of this chapter.

"Adult use cannabis cultivation site" means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

"Adult use cannabis manufacturer" means a person that conducts the cultivation of adult use cannabis, or the production, preparation, propagation, or compounding of adult use cannabis or adult use manufactured cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages adult use cannabis or adult use manufactured cannabis products or labels or relabels its container.

"Adult use cannabis retail location" means an establishment where cannabis and manufactured cannabis products are made available for retail sale for adult use.

"Adult use cannabis retailer" means a person authorized to engage in the retail sale and delivery of cannabis or cannabis products to customers.

"Cannabis" means all parts of the plant Cannabis sativa L., Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" includes the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant; fiber produced from the stalks; oil or cake made from the seeds of the plant; any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake; the sterilized seed of the plant that is incapable of germination; or hemp as defined by section 328G-1.

"Cannabis accessories" means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or manufactured cannabis products into or onto the human body.

"Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and manufactured cannabis products as provided for in this chapter.

"Commission" means the Hawaii cannabis commission established under section A-11.

"Concentrated cannabis" means the separated resin, whether crude or purified, obtained from cannabis.

"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

"Department" means the department of commerce and consumer affairs.

"Distribution" means the procurement, sale, and transport of cannabis and manufactured cannabis products for adult use between licensees.

"Enclosed indoor facility" means a permanent, stationary structure with a solid floor, rigid exterior walls that encircle the entire structure on all sides, and a roof that protects the entire interior area from any exterior view and elements of weather. Nothing in this definition shall be construed to relieve a license applicant or license renewal applicant of the duty to comply with all applicable building codes and regulations.

"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a manufactured cannabis product.

"Manufactured cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including but not limited to concentrated cannabis, an edible or topical product containing cannabis, or concentrated cannabis and other ingredients.

§A-3 Construction of the chapter. Nothing in this chapter shall be construed to:

(1) Apply to any product containing cannabidiol that has been approved by the federal Food and Drug Administration that has either been placed on a schedule of the federal Controlled Substances Act other than Schedule I or has been exempted from one or more provisions of that act, and that is intended for prescribed use for the treatment of a medical condition;

(2) Apply to activity performed pursuant to a registration with the United States Drug Enforcement Administration pursuant to title 21 Code of Federal Regulations part 1318, as it read on January 19, 2021; provided that the person engaging in the activity provides the commission valid documentation of their registration with the United States Drug Enforcement Administration and the location where the activity will be performed prior to engaging in the activity;

(3) Affect the medical use of cannabis or limit any privileges or rights as provided in part IX of chapter 329;

(4) Affect the regulation of medical cannabis dispensaries as provided in chapter 329D;

(5) Require an employer to permit or accommodate conduct otherwise allowed by this chapter in any workplace or on the employer's property;

(6) Prohibit an employer from disciplining an employee for violation of a workplace drug policy or for working while under the influence of cannabis;

(7) Prevent an employer from refusing to hire, discharging, disciplining, or otherwise taking an adverse employment action against a person with respect to hire, tenure, terms, conditions, or privileges of employment because of that person's violation of a workplace drug policy or because that person was working while under the influence of cannabis;

(8) Supersede any law relating to operating a vehicle under the influence of an intoxicant;

(9) Permit the transfer of cannabis, with or without remuneration, to a minor or to allow a minor to purchase, possess, use, transport, grow, or consume cannabis; or

(10) Require any person, corporation, or any other entity that occupies, owns, or controls real property to allow the consumption, cultivation, display, sale, or transfer of cannabis on or in that property; provided that in the case of the rental of a residential dwelling, a landlord shall not prohibit the possession of cannabis or the consumption of cannabis that is not inhaled, unless:

(A) The tenant is not leasing the entire residential dwelling;

(B) The residence is incidental to detention or the provision of medical, geriatric, educational, counseling, religious, or similar service;

(D) Failing to prohibit cannabis possession or consumption would violate federal law or regulations or cause the landlord to lose a monetary or licensing-related benefit under federal law or regulations.

PART II. HAWAII CANNABIS COMMISSION

§A-11 Hawaii cannabis commission; members; compensation. (a) There is established a Hawaii cannabis commission within the department of commerce and consumer affairs for administrative purposes only.

(b) Notwithstanding section 26-34 to the contrary, the commission shall consist of eight members who shall be residents of the State and of which:

(1) Two persons appointed by the governor;

(2) One person appointed by the president of the senate;

(3) One person appointed by the speaker of the house of representatives; and

(4) Four persons, one each to be appointed by the respective mayors of the counties.

(c) Each member of the commission shall serve without pay. However, the actual and necessary traveling expenses incurred in connection with the performance of the member's official duties shall be paid by the department, upon the presentation of vouchers approved by the department.

§A-12 Hawaii cannabis commission; powers and duties. In addition to any other powers or duties authorized by law, the Hawaii cannabis commission may:

(1) Adopt, amend, or repeal rules, issue declaratory rulings or informal nonbinding interpretations, and conduct contested case proceedings pursuant to chapter 91;

(2) Grant, deny, convert, forfeit, renew, reinstate, or restore licenses, including the issuance of conditional licenses;

(3) Revoke, suspend, or otherwise limit the license of any licensee for any violation of the provisions in this chapter or any rule or order of the commission;

(4) Develop requirements for licensure through this chapter or rules;

(5) Investigate and conduct hearings regarding any violation of this chapter and any rule or order of the commission;

(6) Create fact-finding committees which may make recommendations to the commission for its deliberations;

(7) Contract with qualified persons including investigators who may be exempt from chapter 76 and who shall assist the commission in exercising its powers and duties; and

(8) Subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony, including telephonic communications, and do any and all things necessary or incidental to the exercise of the commission's power and duties, including the authority to conduct contested case proceedings under chapter 91.

§A-13 Revenues, fees, and fines. (a) All revenues, fees, and fines collected pursuant to this chapter, except part V, and the rules adopted thereunder shall be deposited into the compliance resolution fund under section 26-9(o).

(b) All revenues and fines collected pursuant to part V of this chapter shall be deposited into the general fund.

PART III. LICENSING

§A-21 License required; classification. (a) No person shall engage in the business of an adult use cannabis manufacturer or adult use cannabis retailer, nor engage in the cultivation, manufacture, distribution, or sale of cannabis or manufactured cannabis products for adult use, unless the person is licensed pursuant to this chapter to engage in such business.

(b) The license classification pursuant to this chapter shall be as follows:

(1) Adult use cannabis manufacturer; and

(2) Adult use cannabis retailer.

(d) A person may apply for and be issued more than one license under this chapter.

(e) Each applicant or licensee shall apply for, and if approved, shall obtain, a separate license for each location where it engages in commercial cannabis activity. An adult use cannabis retail location shall not be at the same location as an adult use cannabis cultivation site or location on which the manufacture of cannabis or manufactured cannabis products occurs.

(f) The commission shall offer no less than licenses in each county for each license category.

§A-22 Application for licensure; penalty for false statement. (a) Every application for a license or for the renewal of a license or for the transfer of a license shall be in writing, signed, and, except for the renewal of a license, verified by the oath of the applicant, or in the case of a corporation or unincorporated association by the proper officer or officers thereof, or if a partnership by a general partner thereof, or if a limited liability partnership by a partner thereof, or if a member-managed limited liability company by a member thereof, or if a manager-managed limited liability company by a manager thereof, made before any official authorized by law to administer oaths, and shall be addressed to the commission, and set forth:

(1) The full name, age, and place of residence of the applicant; if a copartnership, the names, ages, and respective places of residence of all the partners; if a limited liability company, its full name and the names of all its members; if a corporation or joint-stock company, its full name and the names of its officers and directors, and the names of all stockholders owning twenty-five per cent or more of the outstanding capital stock; if a publicly-traded company, or an entity ultimately solely owned by a publicly-traded company, the names of the officers designated as the primary decision-makers regarding the purchase and sale of liquor; and if any other association of individuals, the names, ages, and respective places of residence of its officers and the number of its members;

(2) A particular description of the place or premises where the proposed license is to be exercised, so that the exact location and extent thereof may be clearly and definitely determined therefrom;

(3) The class of license applied for; and

(4) Any other matter or information pertinent to the subject matter which may be required by the rules of the commission.

(b) If any false statement is knowingly made in any application which is verified by oath, the applicant, and in the case of the application being made by a corporation, limited liability company, association, or club, the persons signing the application, shall be guilty of perjury, and shall be subject to the penalties prescribed by law for such offense. If any false statement is knowingly made in any application which is not verified by oath, the person or persons signing the application shall be guilty of a misdemeanor.

§A-23 Criminal history record check. (a) The commission may request a criminal history record check of an applicant for a license in accordance with section 846-2.7; provided that neither a criminal history record check nor compliance with this section shall be required for the officers and directors of publicly-traded companies or entities ultimately solely owned by a publicly-traded company, who are not designated as primary decision-makers regarding the sale or purchase of cannabis or manufactured cannabis products. The criminal history record check, at a minimum, shall require the applicant to disclose whether:

(1) The applicant has been convicted in any jurisdiction of a crime that would tend to indicate the applicant may be unsuited for obtaining a license; and

(2) The judgment of conviction has not been vacated.

(b) For the purpose of this section, the criminal history disclosure made by the applicant may be verified by the commission by means of information obtained through the Hawaii criminal justice data center. The applicant shall provide the Hawaii criminal justice data center with personal identifying information which shall include but not be limited to the applicant's name, social security number, date of birth, and gender. This information shall be secured only for the purpose of conducting the criminal history record check authorized by this section.

(1) A statement signed under penalty of law as to whether the applicant has ever been convicted of a crime other than a minor traffic violation;

(2) Written consent to request and obtain criminal history record information for verification; and

(3) Permission to be fingerprinted.

(d) The commission shall obtain criminal history record information through the Hawaii criminal justice data center on the applicant. The information obtained shall be used exclusively for the stated purpose for which it was obtained and shall be subject to applicable federal laws and regulations currently or hereafter in effect.

§A-24 Application fee. An application fee in such amount as shall be established by the commission by rule pursuant to chapter 91 shall be paid with any application for an initial issuance of a license or for a transfer of a license; provided that the fee shall be no more than $250,000.

§A-25 Reference to investigator. Upon the filing of any application the commission shall indorse thereon the date of filing thereof. If no patent disqualification of the applicant or certain valid objection to the granting of the application is apparent initially and if all requirements relative to the filing of the application appear to have been complied with, the application shall be referred to the investigator for investigation.

§A-26 Report by investigator. (a) On every application referred to the investigator under section A-25, the investigator shall report in writing to the commission and the report shall include:

(1) A description of the premises intended to become the licensed premises, and the equipment and surrounding conditions, including the relationship to surrounding residences which may share a common boundary or a common structure with the premises proposed for licensing;

(2) If the application is made by a person who has held a prior license for the same or any other premises within two years past, a statement as to the manner in which the premises have been operated and the business conducted under the previous license;

(3) The locality of any school, if any, within a distance of five hundred feet from the nearest point of the premises for which the license is asked to the nearest point of the school grounds;

(4) The number, position, and distance from the premises, in respect of which a license is applied for, of any other licensed premises of the same class in the neighborhood;

(5) The number of licenses of the same class already issued and being lawfully exercised within the county;

(6) Whether or not the applicant is for any reason disqualified by this chapter from obtaining or exercising a license; and whether or not the applicant has complied with all the requirements of this chapter relative to the making and filing of the applicant's application;

(7) For the next application for a license that was previously denied, refused, or withdrawn, evidence, to be provided by the applicant, of a substantial change in the circumstances that caused the previous denial, refusal, or withdrawal; and

(8) Any and all other matters and things, that in the judgment of the investigator pertain to or affect the matter of the application, or the issuance or the exercise of the license for which the applicant applied.

(b) A copy of the report shall be furnished to the applicant not less than forty-eight hours before any hearing is had upon the application. Upon written request, a copy of the report shall be furnished to any requester.

(c) The applicant and any protester may challenge findings contained in the investigator's report before or at any hearing on the application.

§A-27 Preliminary hearing; notice of public hearing. (a) Upon the filing of the investigator's report upon any application the commission may hold a preliminary hearing and upon such preliminary hearing it may deny the application. A notice of preliminary hearing on a previously denied, refused, or withdrawn application shall be given seven days before the preliminary hearing to any person who submitted a written request for notice.

(b) If no preliminary hearing is had or if the application is not denied upon a preliminary hearing, the commission shall fix a day for the public hearing of the application and shall give public notice of the hearing at least once in each of two consecutive weeks, in the county, the date of the hearing to be not less than forty-five days after the first notice. The notice shall require that all protests or objections against the issuance of the license applied for shall be filed with the commission at or before the time of hearing. Before giving the notice, the commission shall collect from the applicant the cost of giving the public notice or require a deposit to cover the same.

§A-28 Protests. Protests against the granting of a license may be filed by any person.

§A-29 Hearing; rehearing. (a) Upon the day of hearing, or any adjournment thereof, the commission shall consider the application and any protests and objections to the granting thereof, and hear the parties in interest. The commission shall accept all written or oral testimony for or against the application regardless of whether the application is denied, refused, or withdrawn. Within ninety days after the hearing, or within one hundred twenty days thereafter if in its discretion the commission extends the ninety days to one hundred twenty days, and gives public notice of the same, the commission shall give its decision granting or refusing the application; provided that if there appears to be any disqualification under this chapter, the application shall be refused. Otherwise, the commission may in its discretion grant or refuse the same.

(b) The commission shall make available to the applicant and any protester for review before the public hearing, the protest list of those persons who filed a protest or objection to the application; provided that the applicant shall not use the protest list to attempt to influence in any way any protester to withdraw the protest or objection. All applicants and protesters may submit corrections, additions, and subtractions to the protest list at the public hearing. The commission shall rule on proposed corrections, additions, and subtractions and give reasons for the ruling.

(1) Grant a license to one person in preference to another, without reference to any priority in the order of filing of the applications; and

(2) Of its own motion, or on the suggestion of any member, or of the investigator, take notice of any matter or thing which in the opinion of a majority of its members would be a sufficient objection to the granting of a license; provided that if the objection is one to which the applicant should be given a reasonable time to answer, a continuance may be granted in the discretion of the commission;

provided that in any case where any person affected by such decision petitions the commission for a rehearing of the application and on oath alleges facts and grounds for consideration which were not formerly presented or considered, or any other matter of fact which in the judgment of the commission seems sufficient to warrant a rehearing, such rehearing may be granted by the commission in its discretion upon the publication of notice of rehearing at least seven days before the date of the rehearing. When a rehearing is allowed notice shall be given to the applicant and to the applicant's opponents, by publication or otherwise as the commission shall direct.

§A-30 Further application. (a) If an applicant has at any time been denied or refused a license, no further application from the applicant pertaining to the same premises or building location shall be considered for one year from the denial or refusal.

(b) If an application pertaining to a particular premises or building location is denied, refused, or withdrawn, the next application from any applicant for that premises or building location shall include a report prepared by the applicant evidencing a substantial change in the circumstances that caused the previous denial, refusal, or withdrawal. The commission shall deny the application at the preliminary hearing unless the applicant submits evidence of a substantial change in the circumstances that previously caused the denial, refusal, or withdrawal of an application pertaining to that premises or building location.

§A-31 Renewals. (a) Other than for good cause, the renewal of an existing license shall be granted upon the filing of an application and the payment of the annual sales fee.

(b) The commission by rules adopted pursuant to chapter 91 may assess an annual gross cannabis sales fee per licensee that shall no more than half of one per cent of the licensee's gross sales.

(c) The commission, pursuant to section A-12, at the time of renewal or at any time, may revoke, suspend, or place conditions or restrictions on any license issued under this chapter for the purpose of preventing activities within the licensed premises or adjacent areas that are potentially injurious to the health, safety, and welfare of the public and neighborhood including but not limited to criminal activity, including assault, illegal drug dealing or illegal drug use, or prostitution, upon proper notice to the licensee, and a hearing before the commission pursuant to chapter 91.

§A-32 Reduction or increase in area of licensed premises. The commission may, in its discretion, permit the reduction or the increase in the area of the licensed premises of any licensee without publication of notice at a public hearing; provided that, where an increase in premises may significantly impact the public, the commission may require hearings. Whenever any reduction or increase is permitted, the same shall be endorsed in some appropriate manner upon the license.

§A-33 Transfer of licenses. (a) No license issued under this chapter to an original applicant or to any transferee shall be transferable or be transferred within one year of the issuance or transfer, except for good cause shown to the satisfaction of the commission. A transfer of license shall be for the same class of license. No license issued under this chapter shall be transferable or be transferred except upon written application to the commission by the proposed transferee, and after prior inspection of the premises, reference to, and report by an inspector, and a public hearing held by the commission not less than fourteen days after one publication of notice thereof.

(b) Where a license is held by a partnership, the commission may, notwithstanding any other provision of this section, approve the transfer of the partnership interest, without publication of notice at a public hearing, to any remaining partner or partners, upon the death or withdrawal of a partner of the partnership, or to a trust of which the partner is the trustee.

(c) Where a license is held by a partnership, limited partnership, or limited liability partnership, the admission or withdrawal of a partner, limited partner, or partner of a limited liability partnership shall not be deemed a transfer of the license; provided that the licensee shall, within thirty days from the date of the admission or withdrawal, so notify the commission in writing, stating the name of the partner, limited partner, or partner of a limited liability partnership who has been admitted or withdrawn, and any other information as may be required by the commission.

(d) Except as otherwise provided in this section, the same procedure shall be followed in regard to the transfer of a license as is prescribed by this chapter for obtaining a license.

(e) Upon the hearing, the commission shall consider the application and any objections to the granting thereof and hear the parties in interest. The commission shall inquire into the propriety of each transfer. The commission may approve a transfer or refuse to approve a transfer and the refusal by the commission to approve a transfer shall be final and conclusive, unless an appeal is taken as provided in chapter 91.

(f) If the licensee is a corporation or limited liability company, a change in ownership of any outstanding capital stock or membership interest shall not be deemed a transfer of a license; provided that, in the case of a change in ownership of twenty-five per cent or more of the voting capital stock or membership interest or in the case of change in ownership of any number of shares of the stock or membership interest that results in the transferee thereof becoming the owner of twenty-five per cent or more of the outstanding voting capital stock or membership interest, the corporate or limited liability company licensee shall, within thirty days of the date of the transfer, apply for the approval of the transfer from the commission in writing. The corporate or limited liability company licensee, if not a publicly-traded company, or an entity ultimately solely owned by a publicly‑traded company, shall, within thirty days from the date of election or admission of any officer, director, manager, or member, notify the commission in writing of the name, age, and place of residence of the officer, director, manager, or member, and any other information as may be required by the commission. A publicly-traded corporation or limited liability company, or a corporation or limited liability company ultimately solely owned by a publicly-traded company, shall, within thirty days from the date of election or admission of any replacement of an officer, director, manager, or member designated as a primary decision-maker regarding the purchase and sale of cannabis and manufactured cannabis products, notify the commission in writing of the name, age, and place of residence of the officer, director, manager, or member.

(g) If a licensee closes out the business for which the license is held, during the term for which the license was issued, the licensee shall, within five days from the date of closing the same, give the commission written notice thereof and surrender the licensee's license for cancellation.

(h) The conversion of an entity into any other form of entity or the merger of any entity with any other entity shall not be deemed a transfer of the license; provided that the licensee, within thirty days of the conversion or merger, shall apply for and secure the approval of the commission without any requirement for publication of notice. The foregoing shall not preclude compliance with subsection (b) upon a change in any of the partners or with subsection (f) upon change of any shareholders, officers, directors, managers, or members of any entity occurring concurrently with a conversion or merger.

As used in this subsection, "entity" means a corporation, partnership, limited partnership, limited liability partnership, or limited liability company.

(i) The conversion of an entity into any other form of entity or the merger of any entity with any other entity shall not be deemed a transfer of the license; provided that the licensee, within thirty days of the conversion or merger, shall apply for and secure the approval of the commission without any requirement for publication of notice. The foregoing shall not preclude compliance with subsection (b) upon a change in any of the partners or with subsection (f) upon change of any shareholders, officers, directors, managers, or members of any entity occurring concurrently with a conversion or merger.

As used in this subsection, "entity" means a corporation, partnership, limited partnership, limited liability partnership, or limited liability company.

§A-34 Fees. (a) No applicant or licensee shall be granted a license pursuant to this chapter unless the appropriate fees have been paid.

(b) In addition to any fees specified in this chapter, the commission may establish additional fees by rules adopted pursuant to chapter 91; provided that the additional fees are reasonable, necessary, and related to the commission's or department's administrative costs.

PART IV. LICENSEE OPERATIONS AND TESTING

A. Generally

§A-41 Employment of persons under the age of twenty-one prohibited. No person under the age of twenty-one shall be employed by a licensee.

§A-42 Persons authorized to handle cannabis or manufactured cannabis products. In all licensee facilities, only the licensee, if an individual; registered employees of the licensee; employees of a certified laboratory for testing purposes; state employees authorized by the director of commerce and consumer affairs; and law enforcement and other government officials acting in their official capacity shall be permitted to touch or handle any cannabis or manufactured cannabis products, except that a person twenty-one years of age or older may receive cannabis or manufactured cannabis products at an adult use cannabis retail location following completion of a sale.

§A-43 Public view prohibited. A licensee shall not display cannabis or manufactured cannabis products in windows or in public view.

§A-44 Free samples prohibited. No free samples of cannabis or manufactured cannabis products shall be provided at any time by a licensee.

§A-45 Tracking system. (a) The department shall establish, maintain, and control a computer software tracking system that shall have real time, twenty-four-hour access to the data of all licensees; provided that:

(1) The computer software tracking system shall collect data relating to:

(A) The total amount of cannabis in possession of all licensees from either seed or immature plant state, including all plants that are derived from cuttings or cloning, until the cannabis, cannabis plants, or manufactured cannabis products are sold or destroyed pursuant to section A-46;

(B) The total amount of manufactured cannabis product inventory, including the equivalent physical weight of cannabis that is used to manufacture manufactured cannabis products, purchased by persons twenty-one years of age or older from all adult use cannabis retail locations in the State in any fifteen-day period;

(D) The transport of cannabis and manufactured cannabis products between licensees, including tracking identification issued by the tracking system, the identity of the person transporting the cannabis or manufactured cannabis products, and the make, model, and license number of the vehicle being used for the transport;

(2) The procurement of the computer software tracking system established pursuant to this subsection shall be exempt from chapter 103D; provided that:

(A) The department shall publicly solicit at least three proposals for the computer software tracking system; and

(B) The selection of the computer software tracking system shall be approved by the department and the chief information officer; and

(3) Notwithstanding any other provision of this subsection to the contrary, once the commission has authorized a licensee to commence sales of cannabis or manufactured cannabis products, if the department's computer software tracking system is inoperable or is not functioning properly, as an alternative to requiring licensees to temporarily cease operations, the commission may implement an alternate tracking system that will enable licensees to transact with each other and persons twenty-one years of age or older to purchase cannabis or manufactured cannabis products from a licensed adult use cannabis retail location on a temporary basis. The commission shall seek input regarding the alternate tracking system from licensees. The alternate tracking system may operate as follows:

(A) The commission may immediately notify all licensees that the computer software tracking system is inoperable; and

(B) Once the computer software tracking system is operational and functioning to meet the requirements of this subsection, the commission may notify all licensees, and the alternate tracking system in this subsection shall be discontinued.

(b) A licensee shall purchase, operate, and maintain a computer software tracking system that shall:

(1) Interface with the department's computer software tracking system established pursuant to subsection (a);

(2) Allow each licensee to submit to the department in real time, by automatic identification and data capture, all cannabis, cannabis plants, and manufactured cannabis product inventory in possession of that licensee from either seed or immature plant state, including all plants that are derived from cuttings or cloning, until the cannabis or manufactured cannabis product is sold or destroyed pursuant to section A-46;

(3) Allow the licensed adult use cannabis retailer to submit to the department in real time for the total amount of cannabis and manufactured cannabis product purchased by a person twenty-one years of age or older from the adult use cannabis retailer's retail locations in the State in any fifteen-day period; provided that the software tracking system shall impose an automatic stopper in real time, which cannot be overridden, on any further purchases of cannabis or manufactured cannabis products, if the maximum allowable amount of cannabis has already been purchased for the applicable fifteen-day period; provided further that additional purchases shall not be permitted until the next applicable period; and

(4) Allow the licensee to submit all data required by this subsection to the department and permit the department to access the data if the department's computer software tracking system is not functioning properly and sales are made pursuant to the alternate tracking system under subsection (a).

§A-46 Standards. In addition to any other rulemaking authority provided by law, the commission shall establish standards with respect to:

(1) Criteria and procedures for the consideration and selection, based on merit, of applications for licenses issued under this chapter;

(2) Specific requirements regarding annual audits and reports required from each licensee;

(3) Procedures for announced and unannounced inspections by the commission, department, or their agents of licensee facilities; provided that inspections for license renewals shall be unannounced;

(4) Security requirements for the operation of licensee facilities;

(5) Security requirements for the distribution of cannabis and manufactured cannabis products between licensees and between licensees and certified laboratories;

(6) Standards and criminal background checks to ensure the reputable and responsible character and fitness of all license applicants, licensees, employees, and prospective employees of licensees;

(7) The training and certification of licensees and employees of licensees;

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

(9) The safety of manufactured cannabis products;

(10) Licensee inventory controls to prevent the unauthorized diversion of cannabis or manufactured cannabis products or the sale of cannabis or manufactured cannabis products to persons in excess of the limits established by this chapter; provided that the controls, at a minimum, shall include:

(A) A computer software tracking system as specified in section A-45; and

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

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

(12) 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 person twenty-one years of age or older in quantities that exceed limits established by this chapter; and

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

§A-47 Signage. Signs placed outside of the place of business of a licensee shall not include the image of a cartoon character or other design intended to appeal to children.

§A-48 Laboratory standards and testing. (a) The commission, in consultation with the department of health, shall establish, and the department of health shall enforce, standards for laboratory-based testing of cannabis and manufactured cannabis products for content, contamination, and consistency; provided that in establishing these standards, the commission shall:

(1) Review and take guidance from the testing programs and standards utilized in other jurisdictions;

(2) Consider the impact of the standards on the retail cost of the product;

(3) Review and take guidance from the testing programs and standards for pesticides under the regulations of the United States Environmental Protection Agency, and, at minimum, require testing for pesticides the commission determines are commonly used;

(4) For the testing for microbiological impurities, consider the benefits of organically grown cannabis that features the use of bacteria in lieu of pesticides; and

(5) Determine maximum levels of residual solvent and processing chemicals allowable for the safety of consumers and require testing for residual solvent and processing chemicals.

(b) The commission may certify laboratories that can test cannabis and manufactured cannabis products prior to the sale of cannabis and manufactured cannabis products.

(c) If a licensee obtains a laboratory result indicating that a sample of a batch of its cannabis or manufactured cannabis products does not meet the commission's standards for consumer safety, the licensee, at its own expense, may have the same sample or a different sample from the same batch retested by the same laboratory or a different laboratory. If a retest at a different laboratory yields a different result, the department of health shall determine which result controls whether the batch may be approved for sale or whether further testing shall be required. Any batch that does not meet the commission's standards for consumer safety and either:

(1) The licensee refuses to have the batch retested;

(2) A retest by the same laboratory confirms that the batch fails to meet the commission's standards; or

(3) A retest as ordered by the department of health confirms that the batch fails to meet the commission's standards,

shall be disposed of or destroyed in accordance with the standards established under section A-46.

§A-49 Advertising and packaging. (a) The commission shall establish standards regarding the advertising and packaging of cannabis and manufactured cannabis products; provided that the standards, at a minimum, shall require the use of packaging that:

(1) Is clearly labeled with the phrase "For adult use only."; and

(2) Contains information about the contents and potency of the product.

(b) All manufactured cannabis products shall be individually wrapped at the original point of manufacture.

§A-50 Zoning. (a) Licensees shall comply with all county zoning ordinances, rules, or regulations; provided that:

(1) An adult use cannabis cultivation site shall be permitted in any area in which agricultural production is permitted except as provided within this chapter; and

(2) No facility of a licensee shall be permitted within seven hundred fifty feet of the real property comprising a playground or school.

(b) As used in this section:

"Playground" means any public outdoor facility, including any parking lot appurtenant thereto, that is intended for recreation, with any portion thereof containing three or more separate apparatus intended for the recreation of children, including but not limited to sliding boards, swing sets, and teeterboards.

"School" means any public or private preschool, kindergarten, elementary, intermediate, middle, secondary, or high school.

B. Cultivation

§A-61 Cultivation sites secure and hidden from public view. All adult use cannabis cultivation sites shall be secure and hidden from public view and shall maintain twenty-four-hour security measures.

§A-62 Cultivation site plant limitation. An adult use cannabis cultivation site shall be limited to no more than cannabis plants per square foot.

For purposes of this section, "plant" means a cannabis plant that is greater than twelve vertical inches in height from where the base of the stalk emerges from the growth medium to the tallest point of the plant, or greater than twelve horizontal inches in width from the end of one branch to the end of another branch; provided that multiple stalks emanating from the same root ball or root system shall be considered part of the same single plant.

C. Distribution

§A-71 Distribution. (a) The commission shall establish minimum security and transportation safety requirements for the commercial distribution of cannabis and manufactured cannabis products. Transportation safety standards established by the department shall include but not be limited to minimum standards governing the types of vehicles in which cannabis and manufactured cannabis products may be distributed and minimum qualifications for persons eligible to operate such vehicles.

(b) The transportation of cannabis and manufactured cannabis products shall only be conducted by persons holding a license under this chapter or employees of those persons. The driver of a vehicle transporting or transferring cannabis or manufactured cannabis products shall be directly employed by a licensee.

D. Manufacturers

§A-81 Manufacturer facility operations. All adult use cannabis manufacturer facilities that are not adult use cannabis cultivation sites shall be enclosed indoor facilities and shall maintain twenty-four-hour security measures, including but not limited to an alarm system, video monitoring and recording on the premises, and exterior lighting. Adult use cannabis manufacturer facilities that are not adult use cannabis cultivation sites shall remain locked at all times.

§A-82 Manufacturing of manufactured cannabis products for adult use. (a) Any adult use cannabis manufacturer licensed by the commission pursuant to this chapter shall be permitted to manufacture manufactured cannabis products; provided that the manufacturer shall also obtain any other state or county permits or licenses that may be necessary for a particular manufacturing activity.

(b) The commission shall establish health, safety, and sanitation standards regarding the manufacture of manufactured cannabis products.

(c) Adult use cannabis manufacturers shall calculate the equivalent physical weight of the cannabis that is used to manufacture the product and shall make the equivalency calculations available to the commission, department, and consumer of the manufactured cannabis product.

E. Retailers

§A-91 Retail location operations. All adult use cannabis retail locations shall be enclosed indoor facilities and shall maintain twenty-four-hour security measures, including but not limited to an alarm system, video monitoring and recording on the premises, and exterior lighting. Adult use cannabis retail locations shall remain locked at all times other than the location's business hours.

§A-92 Consumption at retail locations prohibited. The consumption of cannabis or manufactured cannabis products by persons twenty-years of age or older on the premises of an adult use retail location shall be prohibited.

§A-93 Purchase limits. A person twenty-one years of age or older shall be allowed to purchase no more than 28.5 grams of cannabis or eight grams of cannabis in the form of concentrated cannabis, including as contained in manufactured cannabis products, per day.

§A-94 Deliveries. (a) Deliveries may only be made by a licensed adult use cannabis retailer.

(b) Before cannabis or a manufactured cannabis product leaves the licensed premises in a delivery vehicle, the licensed adult use cannabis retailer shall enter into the tracking system all information required by the department and shall update the information as required by the department.

(c) During delivery, the licensee shall maintain a copy of the delivery request and shall make it available upon request of the department and law enforcement officers.

(d) A customer requesting delivery shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the department and law enforcement officers.

(e) As used in this section, "delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" includes the use by a retailer of any technology platform.

PART V. LAWFUL USE AND PROHIBITED ACTS

§A-101 Possession of cannabis by persons twenty-one years of age or older. (a) Subject to the provisions of this part, but notwithstanding any other provision of law, it shall be lawful for persons twenty-one years of age or older, without a prescription, to:

(1) Possess, process, transport, purchase, obtain, or give away to persons twenty-one years of age or older without any compensation, not more than 28.5 grams of cannabis not in the form of concentrated cannabis;

(2) Possess, process, transport, purchase, obtain, or give away to persons twenty-one years of age or older without any compensation, not more than eight grams of cannabis in the form of concentrated cannabis, including as contained in manufactured cannabis products;

(3) Possess, plant, cultivate, harvest, dry, or process not more than ten living cannabis plants and possess the cannabis produced by the plants;

(4) Smoke or ingest cannabis or manufactured cannabis products; and

(5) Possess, transport, purchase, obtain, use, manufacture, or give away cannabis accessories to persons twenty-one years of age or older without any compensation.

(b) It is the intent of subsection (a)(5) to meet the requirements of title 21 United States Code section 863(f) by authorizing, under state law, any person in compliance with this section to manufacture, possess, or distribute cannabis accessories.

(c) Cannabis and manufactured cannabis products involved in any way with conduct deemed lawful by this section are not contraband nor subject to seizure, and no conduct deemed lawful by this section shall constitute the basis for detention, search, or arrest.

§A-102 Limitation of personal cultivation of cannabis. Personal cultivation of cannabis, as authorized under section A‑101(a)(3), shall be subject to the following restrictions:

(1) The living plants and any cannabis produced by the plants in excess of 28.5 grams are kept within the person's private residence, or upon the grounds of that private residence, are in a locked space, and are not visible by normal unaided vision from a public place;

(2) Not more than ten living plants may be planted, cultivated, harvested, dried, or processed within a single private residence, or upon the grounds of that private residence, at one time;

(3) A condominium association may limit or prohibit the cultivation of cannabis within units through its bylaws or house rules; and

(4) A planned community association may limit or prohibit the cultivation of cannabis outdoors through its bylaws or rules.

§A-103 Limitation of smoking, ingesting, possession, and manufacture of cannabis. (a) Section A-101 shall not permit a person to:

(1) Smoke cannabis or manufactured cannabis products in an area where smoking is prohibited under chapter 328J;

(2) Smoke or ingest cannabis or manufactured cannabis products in a public place;

(3) Possess an open container or open package of cannabis or manufactured cannabis products while driving, operating, or riding in the passenger seat or compartment of a motor vehicle, boat, vessel, aircraft, or other vehicle used for transportation;

(4) Manufacture concentrated cannabis using a volatile solvent, unless done in accordance with a license under this chapter;

(5) Smoke or ingest cannabis or manufacture cannabis products while driving, operating a motor vehicle, boat, vessel, aircraft, or other vehicle used for transportation; or

(6) Smoke or ingest cannabis or manufactured cannabis products while riding in the passenger seat or compartment of a motor vehicle, boat, vessel, aircraft, or other vehicle used for transportation.

(b) For purposes of this section:

"Smoke" or "smoking" means inhaling, exhaling, burning, or carrying any lighted or heated cannabis or manufactured cannabis product intended for inhalation, whether natural or synthetic, in any manner or in any form. "Smoking" includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking in a place.

"Volatile solvent" means a solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures.

PART VI. MISCELLANEOUS PROVISIONS

§A-111 Remedies and penalties cumulative. Unless otherwise expressly provided, the remedies or penalties provided by this chapter are cumulative to each other and to the remedies or penalties available under all other laws of this State.

§A-112 Severability. If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable."

SECTION 2. Chapter 329, Hawaii Revised Statutes, is amended by adding a new section to part IX to be appropriately designated and to read as follows:

"§329- Relation to chapter A. This part shall not affect cannabis and manufactured cannabis products for adult use as authorized under chapter A."

SECTION 3. Chapter 329D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§329D- Relation to chapter A. Nothing in this chapter shall be construed to affect the regulation of adult-use cannabis licensees as provided in chapter A."

SECTION 4. Section 26-9, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The board of acupuncture, board of public accountancy, board of barbering and cosmetology, boxing commission, Hawaii cannabis commission, Hawaii board of chiropractic, contractors license board, board of dentistry, board of electricians and plumbers, elevator mechanics licensing board, board of professional engineers, architects, surveyors, and landscape architects, board of massage therapy, Hawaii medical board, motor vehicle industry licensing board, motor vehicle repair industry board, board of naturopathic medicine, board of nursing, Hawaii board of optometry, pest control board, board of pharmacy, board of physical therapy, board of psychology, board of private detectives and guards, real estate commission, Hawaii board of veterinary medicine, board of speech pathology and audiology, and any board, commission, program, or entity created pursuant to or specified by statute in furtherance of the purpose of this section including but not limited to section 26H-4, or chapters 484, 514B, and 514E shall be placed within the department of commerce and consumer affairs for administrative purposes.

The public utilities commission shall be placed, for administrative purposes only, within the department of commerce and consumer affairs. Notwithstanding [~~section 26-9(e),~~] subsections (e), (f), (g), (h), (j), (k), (l), (m), (n), (p), (q), (r), and (s), and except as permitted by sections 269-2 and 269-3, the department of commerce and consumer affairs shall not direct or exert authority over the day-to-day operations or functions of the commission."

SECTION 5. Section 46-4, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) Neither this section nor any other law, county ordinance, or rule shall prohibit the use of land for [~~medical~~]:

(1) Medical cannabis production centers or medical cannabis dispensaries established and licensed pursuant to chapter 329D; or

(2) Adult use cannabis manufacturers or adult use cannabis retailers established and licensed pursuant to chapter A;

provided that the land is otherwise zoned for agriculture, manufacturing, or retail purposes."

SECTION 6. 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, manufacture, or produce cannabis or manufactured cannabis products pursuant to and in compliance with chapter 329D, while the person is facilitating the medical use of cannabis by a qualifying patient pursuant to part IX of chapter 329[.]; or

(3) Possess, process, transport, cultivate, harvest, dry, or manufacture cannabis or manufactured cannabis products, or any other act authorized, pursuant to and in compliance with chapter A."

SECTION 7. Section 712-1240.1, Hawaii Revised Statutes, is amended to read as follows:

"§712-1240.1 Defense to promoting. (1) It is a defense to prosecution for any offense defined in this part that the person who possessed or distributed the dangerous, harmful, or detrimental drug did so under authority of law as a practitioner, as an ultimate user of the drug pursuant to a lawful prescription, or as a person otherwise authorized by law.

(2) It is an affirmative defense to prosecution for any marijuana-related offense defined in this part that the person who possessed or distributed the marijuana was authorized to possess or distribute the marijuana for medical purposes pursuant to part IX of chapter 329.

(3) It is an affirmative defense to prosecution for any marijuana-related offense defined in this part that the person who possessed or distributed the marijuana was authorized to possess or distribute the marijuana pursuant to chapter A."

SECTION 8. Section 846-2.7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Criminal history record checks may be conducted by:

(1) The department of health or its designee on operators of adult foster homes for individuals with developmental disabilities or developmental disabilities domiciliary homes and their employees, as provided by section 321-15.2;

(2) The department of health or its designee on prospective employees, persons seeking to serve as providers, or subcontractors in positions that place them in direct contact with clients when providing non-witnessed direct mental health or health care services as provided by section 321-171.5;

(3) The department of health or its designee on all applicants for licensure or certification for, operators for, prospective employees, adult volunteers, and all adults, except adults in care, at healthcare facilities as defined in section 321-15.2;

(4) The department of education on employees, prospective employees, and teacher trainees in any public school in positions that necessitate close proximity to children as provided by section 302A-601.5;

(5) The counties on employees and prospective employees who may be in positions that place them in close proximity to children in recreation or child care programs and services;

(6) The county liquor commissions on applicants for liquor licenses as provided by section 281-53.5;

(7) The county liquor commissions on employees and prospective employees involved in liquor administration, law enforcement, and liquor control investigations;

(8) The department of human services on operators and employees of child caring institutions, child placing organizations, and foster boarding homes as provided by section 346-17;

(9) The department of human services on prospective adoptive parents as established under section 346‑19.7;

(10) The department of human services or its designee on applicants to operate child care facilities, household members of the applicant, prospective employees of the applicant, and new employees and household members of the provider after registration or licensure as provided by section 346-154, and persons subject to section 346-152.5;

(11) The department of human services on persons exempt pursuant to section 346-152 to be eligible to provide child care and receive child care subsidies as provided by section 346-152.5;

(12) The department of health on operators and employees of home and community-based case management agencies and operators and other adults, except for adults in care, residing in community care foster family homes as provided by section 321-15.2;

(13) The department of human services on staff members of the Hawaii youth correctional facility as provided by section 352-5.5;

(14) The department of human services on employees, prospective employees, and volunteers of contracted providers and subcontractors in positions that place them in close proximity to youth when providing services on behalf of the office or the Hawaii youth correctional facility as provided by section 352D-4.3;

(15) The judiciary on employees and applicants at detention and shelter facilities as provided by section 571-34;

(16) The department of public safety on employees and prospective employees who are directly involved with the treatment and care of persons committed to a correctional facility or who possess police powers including the power of arrest as provided by section 353C-5;

(17) The board of private detectives and guards on applicants for private detective or private guard licensure as provided by section 463-9;

(18) Private schools and designated organizations on employees and prospective employees who may be in positions that necessitate close proximity to children; provided that private schools and designated organizations receive only indications of the states from which the national criminal history record information was provided pursuant to section 302C-1;

(19) The public library system on employees and prospective employees whose positions place them in close proximity to children as provided by section 302A‑601.5;

(20) The State or any of its branches, political subdivisions, or agencies on applicants and employees holding a position that has the same type of contact with children, vulnerable adults, or persons committed to a correctional facility as other public employees who hold positions that are authorized by law to require criminal history record checks as a condition of employment as provided by section 78-2.7;

(21) The department of health on licensed adult day care center operators, employees, new employees, subcontracted service providers and their employees, and adult volunteers as provided by section 321-15.2;

(22) The department of human services on purchase of service contracted and subcontracted service providers and their employees serving clients of the adult protective and community services branch, as provided by section 346-97;

(23) The department of human services on foster grandparent program, senior companion program, and respite companion program participants as provided by section 346-97;

(24) The department of human services on contracted and subcontracted service providers and their current and prospective employees that provide home and community-based services under section 1915(c) of the Social Security Act, title 42 United States Code section 1396n(c), or under any other applicable section or sections of the Social Security Act for the purposes of providing home and community-based services, as provided by section 346-97;

(25) The department of commerce and consumer affairs on proposed directors and executive officers of a bank, savings bank, savings and loan association, trust company, and depository financial services loan company as provided by section 412:3-201;

(26) The department of commerce and consumer affairs on proposed directors and executive officers of a nondepository financial services loan company as provided by section 412:3-301;

(27) The department of commerce and consumer affairs on the original chartering applicants and proposed executive officers of a credit union as provided by section 412:10-103;

(28) The department of commerce and consumer affairs on:

(A) Each principal of every non-corporate applicant for a money transmitter license;

(B) Each person who upon approval of an application by a corporate applicant for a money transmitter license will be a principal of the licensee; and

(C) Each person who upon approval of an application requesting approval of a proposed change in control of licensee will be a principal of the licensee,

as provided by sections 489D-9 and 489D-15;

(29) The department of commerce and consumer affairs on applicants for licensure and persons licensed under title 24;

(30) The Hawaii health systems corporation on:

(A) Employees;

(B) Applicants seeking employment;

(D) Current or prospective volunteers, providers, or contractors,

in any of the corporationꞌs health facilities as provided by section 323F-5.5;

(31) The department of commerce and consumer affairs on:

(A) An applicant for a mortgage loan originator license, or license renewal; and

(B) Each control person, executive officer, director, general partner, and managing member of an applicant for a mortgage loan originator company license or license renewal,

as provided by chapter 454F;

(32) The state public charter school commission or public charter schools on employees, teacher trainees, prospective employees, and prospective teacher trainees in any public charter school for any position that places them in close proximity to children, as provided in section 302D-33;

(33) The counties on prospective employees who work with children, vulnerable adults, or senior citizens in community-based programs;

(34) The counties on prospective employees for fire department positions that involve contact with children or vulnerable adults;

(35) The counties on prospective employees for emergency medical services positions that involve contact with children or vulnerable adults;

(36) The counties on prospective employees for emergency management positions and community volunteers whose responsibilities involve planning and executing homeland security measures including viewing, handling, and engaging in law enforcement or classified meetings and assisting vulnerable citizens during emergencies or crises;

(37) The State and counties on employees, prospective employees, volunteers, and contractors whose position responsibilities require unescorted access to secured areas and equipment related to a traffic management center;

(38) The State and counties on employees and prospective employees whose positions involve the handling or use of firearms for other than law enforcement purposes;

(39) The State and counties on current and prospective systems analysts and others involved in an agencyꞌs information technology operation whose position responsibilities provide them with access to proprietary, confidential, or sensitive information;

(40) The department of commerce and consumer affairs on:

(A) Applicants for real estate appraiser licensure or certification as provided by chapter 466K;

(B) Each person who owns more than ten per cent of an appraisal management company who is applying for registration as an appraisal management company, as provided by section 466L-7; and

(C) Each of the controlling persons of an applicant for registration as an appraisal management company, as provided by section 466L-7;

(41) The department of health or its designee on all license applicants, licensees, employees, contractors, and prospective employees of medical cannabis dispensaries, and individuals permitted to enter and remain in medical cannabis dispensary facilities as provided under sections 329D-15(a)(4) and 329D‑16(a)(3);

(42) The department of commerce and consumer affairs on applicants for nurse licensure or license renewal, reactivation, or restoration as provided by sections 457-7, 457-8, 457-8.5, and 457-9;

(43) The county police departments on applicants for permits to acquire firearms pursuant to section 134-2 and on individuals registering their firearms pursuant to section 134-3;

(44) The department of commerce and consumer affairs on:

(A) Each of the controlling persons of the applicant for licensure as an escrow depository, and each of the officers, directors, and principals who will be in charge of the escrow depositoryꞌs activities upon licensure; and

(B) Each of the controlling persons of an applicant for proposed change in control of an escrow depository licensee, and each of the officers, directors, and principals who will be in charge of the licenseeꞌs activities upon approval of the application,

as provided by chapter 449;

(45) The department of taxation on current or prospective employees or contractors who have access to federal tax information in order to comply with requirements of federal law, regulation, or procedure, as provided by section 231-1.6;

(46) The department of labor and industrial relations on current or prospective employees or contractors who have access to federal tax information in order to comply with requirements of federal law, regulation, or procedure, as provided by section 383-110;

(47) The department of human services on current or prospective employees or contractors who have access to federal tax information in order to comply with requirements of federal law, regulation, or procedure, as provided by section 346-2.5;

(48) The child support enforcement agency on current or prospective employees or contractors who have access to federal tax information in order to comply with federal law, regulation, or procedure, as provided by section 576D-11.5;

(49) The department of the attorney general on current or prospective employees or employees or agents of contractors who have access to federal tax information to comply with requirements of federal law, regulation, or procedure, as provided by section 28‑17;

[[](50)[]] The department of commerce and consumer affairs on each control person, executive officer, director, general partner, and managing member of an installment loan licensee, or an applicant for an installment loan license, as provided in chapter 480J;

[[](51)[] ] The University of Hawaii on current and prospective employees and contractors whose duties include ensuring the security of campus facilities and persons; [~~and~~]

(52) The department of commerce and consumer affairs on an applicant for an adult use cannabis manufacturer or adult use cannabis retailer license, as provided in chapter A; and

[~~[(52)]~~] (53) Any other organization, entity, or the State, its branches, political subdivisions, or agencies as may be authorized by state law."

SECTION 9. Act 278, Session Laws of Hawaii 2022, is amended by amending section 28 to read as follows:

"SECTION 28. Section 846-2.7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: