Hawaii-2024-SB1589-Introduced

SECTION 1. The legislature finds it necessary that a task force be established to identify development strategies and actions that will best support Hawaii's emergent hemp industry. This task force will provide for the sharing and exchanging of pertinent information amongst principal industry and government actors, which will aim to optimize hemp policy and programming to support Hawaii agriculture, hemp consumers, and the public generally. This task force shall include hemp industry stakeholders and representatives from the department of agriculture and department of health.

The legislature also finds that, although hemp is a high-value crop that has the potential to bring significant and diverse revenues to Hawaii, the industry has been significantly stymied in Hawaii due to several factors, including limitations to Hawaii farmer's access to markets and overregulation of farming, production, and processing, which has often driven Hawaii hemp farmers out of business, made farmers non-competitive, and has also created challenges for hemp building and housing and biofuel projects. Moreover, Hawaii is the only state in the union where hemp production and farming is heavily regulated at both the state and federal levels.

The legislature further finds that the department of agriculture and department of health have worked to be responsive to changing federal and state hemp regulations and that a forum that provides an opportunity for regular interface with a cross-section of the Hawaii hemp industry and experts can help identify data that will make department of agriculture and department of health administrative rule implementation easier, potentially saving agency time and resources.

Accordingly, the purpose of this Act is to establish a hemp industry task force to include members of the Hawaii hemp industry and representatives from the department of agriculture and the department of health to compile information from farmers and industry experts inside and outside Hawaii as to how to best build a hemp industry that supports rural agricultural development in the State.

SECTION 2. Section 141-42, Hawaii Revised Statutes, is amended to read as follows:

"[[]§141-42[]] Commercial hemp production. (a) It shall be legal for an individual or entity to produce hemp, as defined in title 7 United States Code section 1639o, if that individual or entity has a license to produce hemp, issued by the Secretary of the United States Department of Agriculture pursuant to title 7 United States Code section 1639q; provided that:

(1) Any person convicted of a felony related to a controlled substance under state or federal law is prohibited from producing hemp, or being a key participant in an entity producing hemp, for a period of ten years following the date of conviction;

(2) Hemp shall not be grown outside of a state agricultural district;

(3) Hemp shall not be grown within 500 feet of pre-existing real property comprising a playground, childcare facility, or school; provided that this restriction shall not apply to an individual or entity licensed to grow hemp in those areas under the State industrial hemp pilot program prior to August 27, 2020;

(4) Hemp shall not be grown within 500 feet of any pre-existing house, dwelling unit, residential apartment, or other residential structure that is not owned or controlled by the license holder; provided that this restriction shall not apply to an individual or entity licensed to grow hemp in those areas under the State industrial hemp pilot program prior to August 27, 2020; and

(5) Hemp shall not be grown in any house, dwelling unit, residential apartment, or other residential structure.

(b) An individual or entity licensed to produce hemp pursuant to paragraph (a) may transport hemp within the State to a facility authorized by law to process hemp or to another licensed producer's grow area, provided that:

(1) The hemp to be transported has passed all compliance testing required by the United States Department of Agriculture; and

(2) The transportation has been authorized by the department. The department may require movement reports, inspections, sampling, and testing of the hemp to be transported and may deny authorization if the hemp is found to not comply with any law or regulation.

(1) The hemp to be exported has passed all compliance testing required by the United States Department of Agriculture; and

(2) The licensed producer complies with all laws relating to the exportation of hemp, including state and federal laws and the laws of the state or country of import.

(d) Any individual or entity who violates this section or any rule adopted pursuant to this section shall be fined not more than $10,000 for each separate offense. Any notice of violation of this section may be accompanied by a cease and desist order, the violation of which constitutes a further violation of this section. Any action taken to collect the penalty provided for in this subsection shall be considered a civil action.

(e) For any judicial proceeding to recover an administrative penalty imposed by order or to enforce a cease and desist order against a hemp producer, the department may petition any court of appropriate jurisdiction 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 on the individual or entity producing hemp; and

(4) The penalty remains unpaid or the individual or entity continues to produce hemp.

(f) A Hawaii hemp task force shall be jointly convened by the department of agriculture and the department of health to gather data and information to understand industry needs and inform strategies and actions that support Hawaii agriculture and a robust hemp industry in Hawaii. The task force:

(1) Shall include hemp producers from each island proportionate to the total number of United States Department of Agriculture hemp licenses in the State and a representative from each of the fuel, building, general fiber, cannabinoid, and grain food sectors;

(2) May ask for data and information from additional sources, including but not limited to hemp economists, regulators in other states, retailers, farmers, and hemp industry groups outside of Hawaii;

(3) Shall jointly develop an outline of farmer and industry needs and the strategies and actions that can help inform public policy concerning the development of a hemp industry in the State that also supports rural agricultural development in the State;

(4) Shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2024; and

(5) Shall cease to exist on August 30, 2024.

The initial meeting of the task force shall occur no later than sixty days after the effective date of this Act, during which the members shall elect a chair and any other necessary officers from among the appointed members.

Members of the task force shall receive no compensation for their duties and shall not be subject to section 84-17, solely based on their participation on the task force. The task force shall be exempt from chapter 92."

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:	_____________________________

THE SENATE	S.B. NO.	1589
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII