Bill Text: HI HB1889 | 2016 | Regular Session | Introduced

Hawaii House Bill 1889 (Prior Session Legislation)

Introduced

Bill Title: State Enterprise Zones; Medical Marijuana

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2016-02-01 - Re-referred to CPC, JUD, FIN, referral sheet 5 [HB1889 Detail]

Download: Hawaii-2016-HB1889-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1889
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

relating to state enterprise zones.

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

SECTION 1. The legislature finds that the regulation of medical marijuana in the State is of paramount importance to the health and welfare of Hawaii's citizens. The legislature further finds that Act 228, Session Laws of Hawaii 2000, was enacted to provide medical relief for seriously ill individuals in the State. However the State did not provide a legal way for those individuals to obtain medical marijuana, except by growing it themselves or receiving it from a caregiver.

To make marijuana more readily available for qualifying patients, Act 241, Session Laws of Hawaii 2015, was enacted to establish a system of medical marijuana dispensaries and cultivation and manufacturing sites in the State. More specifically, this law authorizes the licensure of eight medical marijuana dispensaries in the State, with three licenses issued in the city and county of Honolulu, two issued in the county of Hawaii, two issued in the county of Maui, and one issued in the county of Kauai. Each dispensary may establish up to two production centers and up to two retail dispensing locations. Accordingly, the legislature acknowledges that a significant amount of land may be subject to acquisition, lease, and development, which will undoubtedly have large scale impacts on the State and its resources, as well as the health and welfare of its residents.

In light of the impact that medical marijuana dispensary operators will have on land use in the State, the legislature is concerned by the potential conflicts that the development of this new industry will have on existing land use and zoning laws and, in particular, laws that were enacted to incentivize the development of targeted businesses through the provision of tax benefits.

For example, chapter 209E, Hawaii Revised Statutes, entitled "State Enterprise Zones," allows businesses established in areas designated as enterprise zones to receive business tax credits, general excise tax exemptions, and other benefits intended to assist those businesses prosper in those communities. Areas designated as enterprise zones must meet at least one of the following criteria:

(1) Twenty-five per cent or more of the population have incomes below eighty per cent of the median family income of the county; or

(2) The unemployment rate is 1.5 times the state average.

While the establishment of any new business will potentially benefit areas that need particular attention from government, it is not only prudent, but necessary, for government to choose wisely the industries that would benefit from these incentives to ensure that all of the interests of the general public are served.

The purpose of this Act is to clarify that any business authorized pursuant to chapter 329D, Hawaii Revised Statutes, is not qualified to receive and is excluded from deriving the benefits and incentives provided for businesses authorized and situated in an enterprise zone. The legislature asserts that medical marijuana dispensaries--which are to undergo a permit application and review and an anticipated intensive competition for the limited licenses available--are not the type of private sector business the enterprise zone law was intended to target and benefit.

SECTION 2. Section 209E-2, Hawaii Revised Statutes, is amended by amending the definition of "eligible business activity" to read as follows:

""Eligible business activity" means the:

(1) Manufacture of tangible personal property, the wholesale sale of tangible personal property as described in section 237-4, or a service business as defined in this section;

(2) Production of agricultural products where the business is a producer as defined in section 237-5, or the processing of agricultural products, all or some of which were grown within an enterprise zone;

(3) Research, development, sale, or production of all types of genetically-engineered medical, agricultural, or maritime biotechnology products; or

(4) Production of electric power from wind energy for sale primarily to a public utility company for resale to the public[.];

provided that the sale or production of marijuana or the manufacturing of manufactured marijuana products, as those terms are defined in section 329D-1, are not eligible business activities."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

State Enterprise Zones; Medical Marijuana

Description:

Provides that the sale or production of medical marijuana and manufacturing of manufactured marijuana products are not eligible business activities for state enterprise zone purposes.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.