Bill Text: HI HB2455 | 2016 | Regular Session | Introduced


Bill Title: Health; Medical Marijuana; Dispensaries; Price Controls

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2016-02-01 - Referred to HLT, CPC, FIN, referral sheet 5 [HB2455 Detail]

Download: Hawaii-2016-HB2455-Introduced.html

HOUSE OF REPRESENTATIVES

H.B. NO.

2455

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to marijuana.

 

 

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

 


     SECTION 1.  The legislature finds that the effective regulation of medical marijuana is of paramount importance to the health and welfare of the State its residents.  The state law authorizing the use of medical marijuana by qualifying patients was enacted on June 14, 2000, as Act 228, Session Laws of Hawaii 2000, to provide medical relief for seriously ill individuals in the State.

     The legislature further finds that, to accomplish the purpose of Act 228, Session Laws of Hawaii 2000, and to protect the health and well-being of the State's residents, it is necessary to regulate the manner in which qualifying patients cultivate, possess, and use marijuana.  While Act 228, Session Laws of Hawaii 2000, authorized qualifying patients to use medical marijuana under certain conditions, the Act did not provide a legal way for those individuals to obtain medical marijuana.  In response, Act 241, Session Laws of Hawaii 2015, was enacted to establish a regulated system of medical marijuana dispensaries and cultivation sites in the State.

     The legislature further finds that no regulations have been established to control the price of medical marijuana that is to be sold by the dispensaries authorized by Act 241, Session Laws of Hawaii 2015.  The absence of price control regulations creates a risk that qualified patients may not have safe and legal access to medical marijuana, which could in turn lead to the illegal production, sale, and distribution of marijuana – and potentially expose other residents and vulnerable youth to marijuana.  Therefore, the legislature finds that it is vital for the department of health to ensure that affordable medical marijuana is available, in quantities that are medically necessary, to qualified patients who have obtained certifications from physicians that allow those patients to legally use medical marijuana.

     Other states that have authorized medical marijuana dispensaries have established provisions to oversee or regulate the price of medical marijuana sold by dispensaries.  For example, Minnesota allows for annual review of medical marijuana prices; New Mexico sets price limitations and guidelines on uniformity of medical marijuana prices; Washington, D.C., has implemented a sliding scale approach to medical marijuana prices based on the ability of patients to pay; and New York mandates that every sale of medical marijuana conform with prices established by a commissioner for the per dose price of each form of medical marijuana sold.

     The legislature declares that in light of Act 241, Session Laws of Hawaii 2015, allowing qualifying medical marijuana patients to grow their own medical marijuana will no longer serve a legitimate purpose commencing July 1, 2017, because those patients will have access to medical marijuana through state-authorized dispensaries.  However, price controls are necessary to ensure that medical marijuana is affordable to patients who purchase it from authorized dispensaries.

     Accordingly, the purpose of this Act is to establish a system of price controls, including maximum prices, one year after the effective date of this Act, for medical marijuana sold by dispensaries in the State.

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

     "§329D-      Price controls; powers of the director.  (a)  In addition to any other powers and duties established by law, the director of health may:

     (1)  Establish maximum retail prices for medical marijuana cultivated and sold to qualified patients;

     (2)  Investigate all matters pertaining to the production, manufacture, transportation, processing, storage, distribution, and delivery of medical marijuana and manufactured marijuana products pursuant to this chapter; the setting of maximum retail prices to be paid to medical marijuana dispensaries; the records, books and accounts of dispensaries and any other person from whom information may be desired to carry out the purpose and intent of this chapter; and by leave of a circuit court, to order the taking of depositions of witnesses absent from the State; and

     (3)  Make and enforce all rules and regulations and all orders necessary to carry out this section.

     (b)  Any employee authorized by the director of health may sign and issue subpoenas and may administer oaths to witnesses and conduct hearings and investigations.  In case of failure of any person to comply with any subpoena issued under authority of this section, or the refusal of a witness to testify to any matter regarding which the witness may be lawfully interrogated, the judge of the district court of the circuit in which the person resides or of the circuit in which the person may be personally served, on application of the director of health or the director's authorized representatives, shall compel obedience, as in the case of disobedience of the requirements of a subpoena issued from the court or a refusal to testify therein.

     (c)  Without regard to the notice and public hearing requirements of chapter 91, the director of health may establish, by order, the maximum retail prices to be paid to dispensaries by qualifying patients for medical marijuana and manufactured marijuana products.

     (d)  Prior to the effective date of any order issued pursuant to subsection (c), the department shall give public notice that includes a statement:

     (1)  Of the:

         (A)  Substance of the proposed order; or

         (B)  Maximum retail prices to be established for medical marijuana or manufactured medical marijuana products; and

     (2)  That a copy of the proposed order will be mailed to any interested person who requests a copy, together with a description of where and how the requests may be made.

The notice shall be mailed to all persons who have made a timely written request of the department for advance notice of these orders or of the department's rulemaking proceedings.  The department may require reimbursement for the cost of preparing and mailing the copies.

     (e)  The maximum retail prices established pursuant to subsection (c) may vary according to classes or classifications established by the director of health; provided that the maximum retail prices for each class or classification shall be uniform.  The maximum retail prices may vary from county to county."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval; provided that the authority to control medical marijuana prices shall take effect on July 1, 2017.

 

INTRODUCED BY:

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Report Title:

Health; Medical Marijuana; Dispensaries; Price Controls

 

Description:

Authorizes the director of health to establish maximum retail prices for medical marijuana and manufactured marijuana products.  Delays authority to establish medical marijuana price controls until 7/1/2017.

 

 

 

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

 

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