Bill Text: HI SB3335 | 2024 | Regular Session | Amended
Bill Title: Relating To Cannabis.
Spectrum: Moderate Partisan Bill (Democrat 8-2)
Status: (Engrossed - Dead) 2024-03-22 - Report adopted. referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Belatti, M. Mizuno, Sayama voting aye with reservations; Representative(s) Aiu, Alcos, Chun, Garcia, Garrett, Hashem, Ichiyama, Kila, Kitagawa, Kobayashi, Kong, La Chica, Lamosao, Matayoshi, Matsumoto, Nishimoto, Onishi, Pierick, Souza, Takayama, Takenouchi, Ward, Woodson voting no (23) and Representative(s) Martinez, Nakashima, Quinlan excused (3). [SB3335 Detail]
Download: Hawaii-2024-SB3335-Amended.html
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THE SENATE |
S.B. NO. |
3335 |
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THIRTY-SECOND LEGISLATURE, 2024 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 2 |
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A BILL FOR AN ACT
RELATING TO CANNABIS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. The legislature finds that cannabis, also known as marijuana, is a plant with psychoactive properties derived primarily from its main psychoactive component tetrahydrocannabinol (THC). Today in the United States, the regulation of the cannabis plant falls into three primary categories: (1) cannabis for medical use; (2) cannabis for non‑medical adult use; and (3) hemp that contains low levels of THC.
Recognizing the diverse beneficial applications of cannabis, particularly in medicinal use and pain management, many states have enacted laws legalizing and regulating medical use cannabis. In Hawaii, chapter 329D, Hawaii Revised Statutes, establishes the operational guidelines for medical use cannabis dispensaries in the State and creates a safe harbor from state criminal prosecution relating to medical use cannabis.
In addition to legalizing medical use cannabis, numerous states and jurisdictions, including Hawaii, have opted to decriminalize the possession of small amounts of non-medical use cannabis. These decisions are motivated by a variety of compelling reasons, including the prioritization of more serious crimes, advancements in criminal justice reform, evolving public opinion, and long-standing social equity concerns within the context of cannabis regulation.
Moreover, an increasing number of states have legalized and initiated the regulation and taxation of the cultivation, processing, and sale of non-medical use cannabis to adults aged twenty-one years and older. Many states have witnessed substantial benefits from the revenue generated through taxes, including use and licensing fees, as well as general excise and sales taxes on the non-medical adult-use cannabis industry.
Recognizing these developments in other jurisdictions, pursuant to Act 169, Session Laws of Hawaii 2021, the department of health office of medical cannabis control and regulation convened a task force to explore the development of a dual-system program for cannabis legalization. This task force issued findings and recommendations for future regulation, covering aspects, such as taxation, social equity, market structure, medical use, and public health and safety.
In light of the task force report, the legislature finds that the legalization of cannabis for personal use is a natural, logical, and reasonable outgrowth of the current science of and attitude toward cannabis. The legislature further finds that cannabis cultivation and sales hold the potential for economic development, increased tax revenues, and reduction in crime. Consequently, the legislature is prepared to move forward with the legalization of non-medical adult-use cannabis.
In addition, with the enactment of the Agriculture Improvement Act of 2018 (P.L. 115-334), also known as the 2018 Farm Bill, the United States Congress removed hemp (cannabis with no more than 0.3 per cent delta-9-THC by weight) from schedule I of the federal Controlled Substances Act, paving the way for hemp-derived products and the industrial use of hemp. In response, the legislature enacted House Bill No. 1359, H.D. 2, S.D. 2, C.D. 1, now known as Act 263, Session Laws of Hawaii 2023 (Act 263), to reform hemp industry regulations and acknowledge that hemp is a high-value crop with the potential to generate significant and diverse revenues for Hawaii.
The legislature further finds that, while hemp holds considerable value for Hawaii's economy and local farmers, certain concerns have surfaced regarding the regulation and enforcement of hemp-derived products that have been processed with the intent to surpass legal THC limits. These items not only contravene the established medical cannabis framework by surpassing permissible THC levels at dispensaries, but have also been marketed toward minors, causing at least one documented case of illness in children who consumed the hemp-derived products. Regulating these products is crucial for the State to uphold public health and safety.
The issues posed by hemp-derived products, coupled with the growing pains observed in sister states relating to non-medical adult-use cannabis, underscore the necessity to establish uniform regulations for the entire cannabis plant, including hemp. This approach has emerged as the best practice in the legalization of adult-use cannabis.
This legislative effort has six main pillars: (1) the enactment of the Hawaii Cannabis Law – a legal safe harbor from state criminal prosecution concerning activities relating to cannabis for those who strictly comply with its provisions; (2) the creation of a robust, independent body – the Hawaii cannabis and hemp authority – with the power to regulate all aspects of the cannabis plant (whether medical use cannabis, non-medical adult-use cannabis, or hemp) in accordance with the Hawaii Cannabis Law; (3) the continuing role of law enforcement agencies in addressing illegal cannabis operations not acting in accordance with the Hawaii Cannabis Law, which pose threats to public order, public health, and business operators who choose to operate in the legal market; (4) a vibrant, well-funded social equity program to be implemented by the Hawaii cannabis and hemp authority with the intent to bring greater economic opportunity to disadvantaged regions of the State and help transition formerly illicit operators into the legal market; (5) a delayed effective date of approximately eighteen months for the legalization of non-medical adult-use cannabis and the first legal retail sales to allow the Hawaii cannabis and hemp authority, law enforcement, licensees, and the public to prepare; and (6) the implementation of extensive, well-funded public health protections, including a public health and education campaign to inform the public about the new laws, the continuing risks to public health – especially to children – posed by cannabis, and financial assistance for public health services, such as addiction and substance abuse treatment.
Accordingly, the purpose of this Act is to:
(1) Enact the Hawaii Cannabis Law to:
(A) Provide a legal safe harbor from state or county criminal prosecution concerning activities relating to cannabis for those who strictly comply with the provisions of the law;
(B) Establish the Hawaii cannabis and hemp authority as an independent body with the power to administratively regulate all aspects of the cannabis plant;
(C) Legalize the sale and possession of cannabis for personal adult use beginning January 1, 2026;
(D) Provide economic opportunities to disproportionately impacted areas;
(E) Encourage those currently engaging in illegal, unlicensed commercial cannabis activities to enter the legal market;
(F) Ensure that state and county law enforcement agencies work closely with the Hawaii cannabis and hemp authority and vigorously investigate and prosecute illegal cannabis activities that fall outside any safe harbor protection; and
(G) Mandate that the Hawaii cannabis and hemp authority make the protection of public health and safety its highest priorities;
(2) Establish a tax on the retail sale of cannabis and a tax on the sale of medical use cannabis and require every business engaged in the sale of cannabis to obtain a cannabis tax permit;
(3) Add new traffic offenses relating to the consumption or possession of marijuana or marijuana concentrate and clarifying existing traffic offenses as they relate to marijuana and marijuana concentrate;
(4) Making conforming amendments relating to the legalization of personal adult use of cannabis under the Hawaii Cannabis Law;
(5) Establish the temporary cannabis and hemp control implementation advisory committee to advise and assist the cannabis and hemp control board regarding the Hawaii Cannabis Law;
(6) Transfer the personnel and assets of the department of health and assets of the department of agriculture relating to cannabis and hemp to the Hawaii hemp and cannabis authority;
(7) Establish positions and appropriate funds; and
(8) Make other conforming and housekeeping amendments.
PART II
SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"Chapter A
HAWAII CANNABIS LAW
PART I.
GENERAL PROVISIONS
§A-1 Title. This chapter shall be known and may be cited as the Hawaii Cannabis Law.
§A-2 Purpose and intent. The purpose and intent of this chapter is to:
(1) Provide a legal safe harbor from state or county criminal prosecution concerning activities relating to cannabis for those who strictly comply with the provisions of this chapter;
(2) Establish the Hawaii cannabis and hemp authority as an independent body with the power to administratively regulate all aspects of the cannabis plant in accordance with this chapter;
(3) Legalize the sale and possession of cannabis for personal adult use beginning January 1, 2026, in accordance with this chapter;
(4) Provide economic opportunities to disproportionately impacted areas;
(5) Encourage those engaging in illegal, unlicensed commercial cannabis activities before the enactment of this chapter to enter the legal market;
(6) Ensure that state and county law enforcement agencies work closely with the Hawaii cannabis and hemp authority and vigorously investigate and prosecute illegal cannabis activities that fall outside of safe harbor protection; and
(7) Mandate that the Hawaii cannabis and hemp authority make the protection of public health and safety its highest priorities.
§A-3 Definitions. As used in this chapter, unless the context otherwise requires:
"Adequate supply" means an amount of cannabis, including medical cannabis, jointly possessed between the medical cannabis patient and the patient's caregiver that is no more than is reasonably necessary to ensure the uninterrupted availability of cannabis for the purpose of alleviating the symptoms or effects of a medical cannabis patient's debilitating medical condition; provided that an adequate supply shall not exceed four ounces of cannabis at any given time. For purposes of this definition, the ounces of cannabis shall include any combination of cannabis flower and cannabis products, with the cannabis in the cannabis products being calculated using information provided pursuant to section A‑113(d).
"Adult-use cannabis" means cannabis that may be legally possessed or consumed by a person who is at least twenty-one years of age pursuant to this chapter. "Adult-use cannabis" includes adult-use cannabis products and does not include medical cannabis.
"Adult-use cannabis product" means any product containing or derived from cannabis, including an edible cannabis product, and cannabis concentrate, that may be legally possessed or consumed by a person who is at least twenty-one years of age. "Adult-use cannabis product" does not include medical cannabis products.
"Advertise", "advertisement", or "advertising" means any public communication in any medium that offers or solicits a commercial transaction involving the delivery, purchase, or sale of cannabis.
"Applicant" means a person that has submitted an application for licensure, permit, or registration, or for renewal of licensure, permit, or registration pursuant to this chapter, that was received by the authority for review but has not been approved or denied by the authority or board, as appropriate. If the context requires, "applicant" includes a person seeking to assume an ownership interest in a licensed business, a new proposed officer, director, manager, and general partner of the licensed business, and anyone who seeks to assume any power to directly or indirectly control the management, policies, and practices of a licensed business under the license transfer, reorganization, or restructuring application process pursuant to section A-77.
"Authority" means the Hawaii cannabis and hemp authority established pursuant to section A-11.
"Board" means the cannabis and hemp control board established pursuant to section A-12.
"Bona fide physician-patient relationship" or "bona fide advanced practice registered nurse-patient relationship" means a relationship in which the physician or advanced practice registered nurse, respectively, has an ongoing responsibility for the assessment, care, and treatment of a patient's medical condition.
"Business entity" means an association, a corporation, a limited liability company, a partnership, or other legal entity, whether for profit or nonprofit, incorporated or otherwise formed or organized by law.
"Cannabinoid" means any of the various naturally occurring, biologically active, chemical constituents of the plant of the genus Cannabis that bind to or interact with receptors of the endogenous cannabinoid system.
"Cannabis" has the same meaning as "marijuana" and "marijuana concentrate" as defined in sections 329-1 and 712-1240. "Cannabis":
(1) Includes:
(A) Cannabis flower and cannabis products;
(B) Medical cannabis; and
(C) Adult-use cannabis; and
(2) Does not include:
(A) Hemp that is cultivated by a licensed hemp cultivator pursuant to section A‑132;
(B) Hemp that is processed by a licensed hemp extract processor pursuant to section A-133; and
(C) Hemp products.
"Cannabis accessories" means equipment, products, devices, or materials of any kind that are intended or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, or containing cannabis, or ingesting, inhaling, or otherwise introducing cannabis into the human body.
"Cannabis business" means any person that holds a license or permit issued by the board pursuant to part VII or any rules adopted pursuant to this chapter.
"Cannabis concentrate" means the separated resin, whether crude or purified, obtained, derived, or extracted from cannabis.
"Cannabis cultivator" means a person licensed to cultivate cannabis pursuant to section A-112.
"Cannabis flower" means the flower of a plant of the genus Cannabis that has been harvested, dried, or cured, before any processing whereby the plant material is transformed into a cannabis product.
"Cannabis plant" means the plant of the genus Cannabis in the seedling, vegetative, or flowering stages, with readily observable roots and leaves with serrated edges. "Cannabis plant" does not include a germinated seed, cutting, or clone without readily observable roots and leaves with serrated edges.
"Cannabis processor" means a person licensed to process cannabis pursuant to section A-113.
"Cannabis product" means any product containing or derived from cannabis, including an edible cannabis product or cannabis concentrate. "Cannabis product" includes adult-use cannabis products and medical cannabis products.
"Cannabis regulation, nuisance abatement, and law enforcement special fund" means the fund established pursuant to section A-17.
"Caregiver" means a person who is at least eighteen years of age who has agreed to undertake responsibility for managing the well-being of a medical cannabis patient with respect to the medical use of cannabis. In the case of a minor or an adult lacking legal capacity, the caregiver shall be a parent, guardian, or person having legal custody.
"Certifying medical professional" means a physician or an advanced practice registered nurse who issues written certifications for the medical use of cannabis to qualifying patients pursuant to section A-49.
"Chief compliance officer" means the chief compliance officer of the authority established pursuant to section A-11.
"Chief equity officer" means the chief equity officer of the authority established pursuant to section A-11.
"Chief public health and environmental officer" means the chief public health and environmental officer of the authority established pursuant to section A-11.
"Child care facility" has the same meaning as defined in section 346-151.
"Child-resistant" means designed or constructed to be significantly difficult for children under the age of five to open, and not difficult for average adults to use properly.
"Consumer" means a natural person who is at least twenty-one years of age purchasing or using cannabis pursuant to this chapter.
"Craft cannabis dispensary" means a person licensed to operate a craft cannabis dispensary pursuant to section A-116.
"Crude hemp extract" means a hemp extract product for sale strictly to a hemp extract processor with a valid license issued by the authority pursuant to section A-133 or equivalent authorization from a regulatory agency in another jurisdiction, and not intended for use or consumption.
"Cultivate" or "cultivation" means cloning, curing, drying, grading, growing, harvesting, propagating, or trimming of cannabis plants or hemp plants.
"Debilitating medical condition" means:
(1) Acquired immunodeficiency syndrome, cancer, epilepsy, glaucoma, lupus, multiple sclerosis, positive status for human immunodeficiency virus, rheumatoid arthritis, or the treatment of these conditions;
(2) A chronic or debilitating disease or medical condition or its treatment that produces one or more of the following:
(A) Cachexia or wasting syndrome;
(B) Severe pain;
(C) Severe nausea;
(D) Seizures, including those characteristic of epilepsy;
(E) Severe and persistent muscle spasms, including those characteristic of multiple sclerosis or Crohn's disease; or
(F) Post-traumatic stress disorder; or
(3) Any other medical condition approved by the board in consultation with the department of health pursuant to rules adopted pursuant to this chapter.
"Decarboxylation" means the completion of the chemical reaction that converts naturally occurring cannabinoid acid into a cannabinoid, including delta-9-tetrahydrocannabinol's acids (THCA) into delta-9-tetrahydrocannabinol.
"Delta-9-tetrahydrocannabinol" means one of the cannabinoids that function as the primary psychoactive component of cannabis.
"Dispense" or "dispensing" means to sell any cannabis to a consumer or medical cannabis patient pursuant to this chapter.
"Disproportionately impacted area" means historically disadvantaged communities, areas of persistent poverty, and medically underserved communities, as determined by the board in rules adopted pursuant to this chapter.
"Distribute" or "distribution" means to sell at wholesale any cannabis or hemp to a cannabis business pursuant to this chapter.
"Edible cannabis product" means a cannabis product intended to be used orally, in whole or in part, for human consumption, including cannabis products that dissolve or disintegrate in the mouth. "Edible cannabis product" does not include any product otherwise defined as cannabis concentrate.
"Employment" has the same meaning as defined in section 378-1.
"Executive director" means the executive director of the authority established pursuant to section A-11.
"Firearm" has the same meaning as defined in section 134-1.
"Hemp" means all parts of the plant of the genus Cannabis, whether growing or not, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, with a delta-9-tetrahydrocannabinol concentration of no more than 0.3 per cent on a dry weight basis, as measured post-decarboxylation or other similarly reliable method.
"Hemp business" means any person that holds a license issued by the board pursuant to part VIII and any rules adopted pursuant to this chapter.
"Hemp coordinator" means the hemp coordinator of the authority established pursuant to section A-11.
"Hemp extract product" means any hemp product derived from hemp, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, with a delta-9-tetrahydrocannabinol concentration of no more than 0.3 per cent on a dry weight basis, as measured post-decarboxylation or other similarly reliable method. "Hemp extract product" does not include industrial hemp products.
"Hemp flower" means the flower of a hemp plant that has been harvested, dried, or cured, before any processing, with a delta-9-tetrahydrocannabinol concentration of no more than 0.3 per cent on a dry weight basis, as measured post-decarboxylation or other similarly reliable method.
"Hemp product" means any product containing or derived from hemp with a delta-9-tetrahydrocannabinol concentration of no more than 0.3 per cent on a dry weight basis, as measured post‑decarboxylation or other similarly reliable method.
"Independent laboratory" means a person licensed to operate an independent laboratory pursuant to section A-111.
"Industrial hemp product" means any hemp product that is either:
(1) Intended for industrial use and not for human consumption, including textiles and construction materials; or
(2) Intended for human consumption and generally recognized as safe (GRAS) by the United States Food and Drug Administration for use in foods.
"Labeling" means any label or other written, printed, or graphic matter upon any container, packaging, or wrapper that contains cannabis or hemp.
"Laboratory agent" means an employee of an independent laboratory, who is registered with the authority and possesses, processes, stores, tests, or transports cannabis, hemp, or hemp extract product pursuant to section A-111.
"Licensed business" means any person that holds a license or permit issued by the authority or board pursuant to this chapter or any rules adopted pursuant to this chapter. "Licensed business" includes a cannabis business and hemp business.
"Licensed premises" means the premises authorized to be used for the operation of a licensed business pursuant to section A-80.
"Marijuana" has the same meaning as defined in section 712-1240.
"Marijuana concentrate" has the same meaning as defined in section 712-1240.
"Medical cannabis" means cannabis that is dispensed by a medical cannabis dispensary or retail cannabis store to a medical cannabis patient or the patient's caregiver or cannabis for the medical use of cannabis pursuant to this chapter. "Medical cannabis" includes a medical cannabis product.
"Medical cannabis cooperative" means a person licensed to operate a medical cannabis cooperative pursuant to A-117.
"Medical cannabis dispensary" means a person licensed to operate a medical cannabis dispensary pursuant to section A-114.
"Medical cannabis patient" means a qualifying patient or qualifying out-of-state patient that has registered with the authority pursuant to this chapter.
"Medical cannabis product" means any product containing or derived from cannabis, including an edible cannabis product and cannabis concentrate, that is solely for medical use by a medical cannabis patient pursuant to this chapter.
"Medical cannabis registration card" means a card issued by the authority that certifies the card holder is a medical cannabis patient.
"Medical use" means the acquisition, cultivation, possession, transportation, or use of cannabis or cannabis accessories relating to the administration of cannabis to alleviate the symptoms or effects of a medical cannabis patient's debilitating medical condition.
"Minor" has the same meaning as defined in section 712-1240.
"Person" means a natural person, association, corporation, firm, partnership, or any form of business or legal entity.
"Personal adult use" means the acquisition, cultivation, possession, transportation, or use of adult-use cannabis or cannabis accessories by a person who is at least twenty-one years of age.
"Plant canopy" means the square footage dedicated to live plant production, such as maintaining mother plants, propagating plants from seed to plant tissue, clones, and vegetative or flowering area. "Plant canopy" does not include areas such as space used for the storage of fertilizers, pesticides, or other products, quarantine, or office space.
"Private residence" means a house, condominium, or apartment. "Private residence" does not include, unless otherwise authorized by law, dormitories or other on-campus college or university housing; bed-and-breakfast establishments, hotels, motels, or other commercial hospitality operations; and federal public housing, shelters, or residential programs.
"Process" or "processing" means to blend, compound, extract, infuse, or otherwise make or prepare a cannabis product or hemp product.
"Public housing project or complex" has the same meaning as defined in section 712-1249.6.
"Qualifying out-of-state patient" means a person residing outside of the State who has been diagnosed by a physician or an advanced practice registered nurse as having a debilitating medical condition and registered pursuant to section A‑48.
"Qualifying patient" means a person who has been diagnosed by a physician or an advanced practice registered nurse as having a debilitating medical condition and registered pursuant to section A-47. "Qualifying patient" does not include a qualifying out-of-state patient.
"Resealable" means a package that maintains its child‑resistant effectiveness, as well as preserving the integrity of cannabis for multiple doses.
"Restricted area" means an enclosed and secured area within a licensed premises used to cultivate, process, store, or test cannabis that is only accessible by authorized employees of the licensed business, employees and agents of the authority, state and county law enforcement officers, emergency personnel, and other individuals authorized by law to access.
"Restricted cannabinoid" means a cannabinoid on the restricted cannabinoid product list established and maintained by the authority pursuant to section A-131.
"Restricted cannabinoid product" means any product containing an amount of any restricted cannabinoid that exceeds the limit allowable for a hemp product, as established by the authority pursuant to section A-131.
"Retail cannabis store" means a person licensed to operate a retail cannabis store pursuant to section A-115.
"School" has the same meaning as defined in section 712-1249.6.
"School vehicle" has the same meaning as defined in section 286‑181.
"Seed-to-sale tracking system" means a system for tracking the inventory of cannabis from either the seed or immature plant stage until the cannabis is dispensed or destroyed.
"Smoke" or "smoking" means inhaling, exhaling, burning, or carrying any lighted or heated cannabis or hemp intended for inhalation in any manner or in any form. "Smoke" or "smoking" includes the use of an electronic smoking device.
"Tetrahydrocannabinol" or "THC"
means the group of cannabinoids that function as the primary psychoactive
component of cannabis.
"Under the influence" means in a state of intoxication accompanied by a perceptible act, a series of acts, or the appearance of an individual that clearly demonstrates the state of intoxication.
"Vehicle" means an automobile, airplane, motorboat, motorcycle, or other motor-propelled vehicle.
"Written certification" means a written statement issued and signed by a certifying medical professional pursuant to section A-46.
§A-4 General exemptions. (a) Notwithstanding any law to the contrary, including part IV of chapter 329 and part IV of chapter 712, actions authorized pursuant to this chapter shall be lawful if done in strict compliance with the requirements of this chapter and any rules adopted pursuant to this chapter.
(b) A person may assert strict compliance with this chapter or rules adopted pursuant to this chapter as an affirmative defense to any prosecution involving marijuana or marijuana concentrate, including under part IV of chapter 329 and part IV of chapter 712.
(c) Actions that do not strictly comply with the requirements of this chapter and any rules adopted pursuant to this chapter shall be unlawful and subject to civil, criminal, or administrative procedures and penalties, or all of the above, as provided by law.
§A-5 Limitations; construction with other laws. Nothing in this chapter shall be construed to:
(1) Supersede any law relating to operating a vehicle under the influence of an intoxicant;
(2) Supersede any law involving the performance of any task while impaired by cannabis that would constitute negligence or professional malpractice, or prevent the imposition of any civil, criminal, or other penalty for the conduct;
(3) Supersede any law prohibiting or relating to smoking or vaping, including chapter 328J;
(4) Authorize the possession or use of cannabis or cannabis accessories on the grounds of or within a child care facility, school, daycare center, youth center, college, university, or other educational institution, including a nursery school or summer camp; school vehicle; or any correctional facility or detoxification facility; provided that a caregiver may administer a medical cannabis product that is not intended for inhalation to a medical cannabis patient under the age of twenty-one on school grounds and in a vehicle; provided further that a college or university may authorize the possession or use of cannabis or cannabis accessories by persons who are at least twenty-one years of age on the grounds of or within the college or university in accordance with this chapter, but shall allow the medical use or personal adult use of cannabis by a college or university faculty member or student while the faculty member or student is within faculty or student housing; or
(5) Require any person, corporation, or any other entity that occupies, owns, or controls real property to allow the consumption, cultivation, dispensing, display, distribution, or processing of cannabis on or within 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 intended for inhalation, unless:
(A) The tenant is renting a room or rooms in only a portion of a residence, where the rest of the residence is rented to other people or occupied by the landlord;
(B) The residence is incidental to detention or the provision of counseling, educational, geriatric, medical, religious, or similar service;
(C) The residence is a transitional housing facility; or
(D) Failing to prohibit the possession or use of cannabis 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. ADMINISTRATION
§A-11 Hawaii cannabis and hemp authority; established. (a) There shall be established the Hawaii cannabis and hemp authority, which shall be a public body corporate and politic and an instrumentality and agency of the State for the purpose of implementing this chapter. The authority shall be governed by the cannabis and hemp control board. The authority shall be placed within the department of commerce and consumer affairs for administrative purposes only. The department of commerce and consumer affairs shall not direct or exert authority over the day-to-day operations or functions of the authority.
(b) The authority shall exercise its authority, other than powers and duties specifically granted to the board, by and through the executive director. The executive director shall be appointed by the board without regard to chapter 76 or section 26-35(a)(4) and serve at the pleasure of the board. The executive director shall have expertise and training in the field of cannabis regulation or public health administration.
(c) At a minimum, the staff of the authority shall consist of:
(1) One full-time chief compliance officer;
(2) One full-time chief equity officer;
(3) One full-time chief financial officer;
(4) One full-time chief public health and environmental officer;
(5) One full-time chief technology officer;
(6) One full-time executive secretary to the executive director;
(7) One full-time general counsel; and
(8) One full-time hemp coordinator,
each of whom shall be exempt from chapter 76 and section 26‑35(a)(4) and serve at the pleasure of the executive director.
§A-12 Cannabis and hemp control board; members and terms; organization; expenses. (a) There shall be established the cannabis and hemp control board that shall carry out the duties and responsibilities as provided in this chapter. The board shall consist of seven members to be placed within the department of commerce and consumer affairs for administrative purposes only. The board shall govern the Hawaii cannabis and hemp authority and appoint the executive director of the authority, who shall be responsible for administering and enforcing laws related to the authority and each administrative unit of the authority.
(b) The protection of public health and safety shall be the highest priorities for the board in exercising licensing, regulatory, and disciplinary functions under this chapter. Whenever the protection of public health and safety is inconsistent with other interests sought to be promoted, the protection of public health and safety shall be paramount.
(c) The members of the board shall be appointed by the governor, subject to confirmation by the senate pursuant to section 26-34. The terms and the filling of a vacancy on the board shall be as provided in section 26-34; provided that initial appointments may be for less than four years to maintain the board with staggered terms.
At minimum, the composition of the board shall include the following:
(1) One member who shall have a professional background in the hemp industry;
(2) One member who shall have professional experience in oversight or industry management, including commodities, production, or distribution, in the cannabis industry;
(3) One member who shall have a professional background in public health, mental health, substance abuse treatment, or toxicology;
(4) One member who shall have a professional background in public safety or law enforcement; and
(5) One member who shall have expertise in Hawaii's agricultural community.
(d) Before appointment to the board, the authority shall conduct a background investigation, which may include the criminal history record check pursuant to section 846-2.7, on prospective members of the board. No person who has been convicted of a felony shall be eligible to serve on the board.
(e) A majority of all members to which the board is entitled shall constitute a quorum to do business, and the concurrence of a majority of all members shall be necessary to make an action of the board valid.
(f) Regular meetings of the board shall be held no less than once a month. Special meetings may be called by the chairperson at any time by giving notice to each member present in the State at least ten days before the date of the special meeting; provided that notice shall not be required if all members present in the State agree and sign a written waiver of the notice. To promote efficiency in administration, the chairperson shall divide or re-divide the work of the board among the board members as the chairperson deems expedient.
(g) Any member of the board may be removed for cause by vote of four of the board's members then in office.
For purposes of this subsection, "cause" includes without limitation:
(1) Malfeasance in office;
(2) Failure to attend regularly held meetings;
(3) Sentencing for conviction of a felony, to the extent allowed by section 831-2; or
(4) Any other cause that may render a member incapable or unfit to discharge the duties of the board required under this chapter.
Filing nomination papers for elective office or appointment to elective office, or conviction of a felony consistent with section 831-3.1, shall automatically and immediately disqualify a board member from office.
(h) The members of the board shall serve without compensation but shall be entitled to reimbursement for expenses, including travel expenses, necessary for the performance of their duties.
(i) At the first meeting where a quorum is established, the board shall solicit nominees from its members to elect a chairperson and a vice-chairperson from among its members who shall be elected by majority vote. In the event of a tie, the governor shall cast a tie-breaking vote. The chairperson and vice-chairperson shall serve until their successors are elected.
§A-13 Cannabis and hemp control board; powers and duties. The board shall have the following powers and duties as provided for in this chapter to:
(1) Adopt a seal;
(2) Administer oaths and affirmations;
(3) Establish a procedure by which licenses or permits are awarded pursuant to this chapter, including by randomized lottery selection;
(4) Approve or deny applications, including renewal applications and change in ownership applications, for licenses or permits pursuant to this chapter;
(5) Suspend, cancel, or revoke for cause any license, permit, or registration issued under this chapter;
(6) Conduct or commission studies regarding market conditions and, on a periodic basis, determine the maximum number of licenses that may be issued to meet estimated production demand and facilitate a reduction in the unauthorized distribution of cannabis;
(7) Establish and amend cannabis district boundaries to ensure equal access to cannabis, especially for medical use, and encourage the full participation in the regulated cannabis industry from disproportionately impacted areas;
(8) Adopt rules, which shall have the force and effect of law; provided that unless otherwise provided in this chapter, the rules shall be adopted pursuant to chapter 91;
(9) Take appropriate action against a person who, directly or indirectly, cultivates, processes, sells, or purchases any cannabis without being authorized pursuant to this chapter;
(10) Establish additional restrictions, requirements, or conditions, consistent with those prescribed in this chapter, relating to the standards and requirements for cultivating, processing, packaging, advertising, distributing, or dispensing cannabis or hemp, including the ability to regulate ingredients, and the types, forms, potency, and concentration of cannabis products or hemp extract products that may be processed or sold, to ensure the health and safety of the public and the use of proper ingredients and methods in the processing of all cannabis and hemp to be sold or consumed in the State and to ensure that cannabis products and hemp extract products are not packaged, marketed, or otherwise sold in a way that targets minors or promotes excessive use of cannabis or cannabis use disorders;
(11) Appoint the executive director, not subject to chapter 76 or section 26-35(a)(4), and discharge the executive director with or without cause by a majority vote of all members of the board; provided that removal without cause shall not prejudice any contract rights of the executive director;
(12) Establish and amend a plan of organization that the board considers expedient;
(13) Conduct hearings as required by law pursuant to chapter 91; provided that the board may examine witnesses and take testimony, receive and determine the relevance of evidence, issue subpoenas, regulate the course and conduct of the hearing, and make a final ruling;
(14) Appoint hearing officers to conduct hearings as provided by law and under conditions that the board shall establish by rules. Each hearing officer shall be deemed to be an agent of the board with all powers associated with that designation;
(15) Establish a social equity program to encourage the full participation in the regulated cannabis industry from disproportionately impacted areas;
(16) Delegate to the chairperson of the board or the executive director, subject to the board's control and responsibility, powers and duties as may be lawful or proper for the performance of the functions vested in the board;
(17) Exercise the powers and perform the duties in relation to the administration of the authority and board as necessary but not specifically vested by this chapter, including budgetary and fiscal matters; and
(18) Coordinate with state and county law enforcement agencies to effectuate the purposes of this chapter.
§A-14 Executive director; powers and duties. The executive director shall have the following powers and duties:
(1) Exercise the powers and perform the duties in relation to the administration of the authority that are not specifically vested by this chapter in, or delegated by, the board;
(2) Execute all instruments necessary or convenient for accomplishing the purposes of this chapter;
(3) Enter into agreements or other transactions with a person, including a public entity or other governmental instrumentality or governmental authority in connection with its powers and duties under this chapter;
(4) Employ, subject to chapter 76, employees, permanent and temporary, as required; provided that when, in the determination of the executive director, the services to be performed are unique and essential to the execution of the functions of the authority, the executive director may employ, not subject to chapter 76 or section 26-35(a)(4), officers and employees, prescribe their duties and qualifications, and fix their salaries;
(5) Apply for and accept, on behalf of the authority, grants, loans, advances, and contributions of money or property, or other things of value from any source, to be held, used, and applied for the authority's purposes;
(6) Set, charge, impose, and collect fees, fines, and civil penalties as authorized by this chapter or rules adopted pursuant to this chapter; provided that all fees, fines, and civil penalties received by the authority shall be deposited into the cannabis regulation, nuisance abatement, and law enforcement special fund;
(7) Enforce seizure, confiscation, or forfeiture pursuant to this chapter or chapter 712A of any cannabis or hemp not authorized under this chapter or rules adopted pursuant to this chapter;
(8) Provide and pay for advisory services and technical assistance as may be necessary in the executive director's judgment to carry out this chapter as provided by law;
(9) Develop and maintain a seed-to-sale tracking system;
(10) Be present, through the authority's inspectors and agents, at any time, at the licensed premises of a licensed business for the purposes of exercising the authority's regulatory responsibilities or inspecting the licensed premises and all equipment and supplies located at the licensed premises;
(11) Seize and remove from the licensed premises of a licensed business any cannabis, hemp, equipment, supplies, documents, and records obtained or possessed in violation of this chapter for the purpose of examination and inspection;
(12) For cause, demand and be granted access to, for the purposes of inspection, examination, photocopying, or audit, all books, papers, and records of licensed businesses; provided that the inspection, examination, photocopying, and audit may take place on the licensed business's licensed premises or elsewhere as practicable and in the presence of the licensed business or its agent;
(13) Register qualifying patients and qualifying out-of-state patients for medical use of cannabis pursuant to sections A-47 and A-48;
(14) Investigate violations of this chapter and, notwithstanding any law to the contrary, violations of chapter 322 or 342F that are related to cultivation, processing, distribution, sales, dispensing, consumption, possession, or use of cannabis or hemp, including covert operations, and refer criminal violations to the proper federal, state, or local authorities for prosecution as appropriate. Investigations of violations of chapter B shall be referred to the director of taxation to hear and determine complaints against any licensed business;
(15) Conduct background checks as necessary for the purposes of implementing this chapter, including criminal history record checks in accordance with section 846-2.7;
(16) Gather facts and information applicable to the authority's obligation to investigate applicants, permittees, or licensed businesses for:
(A) A violation of this chapter or any rules adopted pursuant to this chapter; or
(B) A wilful violation of an order of the board;
(17) Delegate the powers provided in this section to other officers or employees of the authority as may be deemed appropriate by the executive director;
(18) Exercise the powers and perform the duties as delegated by the board;
(19) Advise and assist the board in carrying out any of its functions, powers, and duties;
(20) Coordinate across state departments and agencies to research and study any changes in cannabis use and the impact that cannabis use and the number of licensed businesses may have on access to cannabis, public health, and public safety;
(21) Prepare, publish, and distribute, with or without charge as the authority may determine, studies, reports, guidance, bulletins, and other materials that the authority considers appropriate;
(22) Implement the social equity program established by the board;
(23) Create and maintain a publicly available directory of the names and locations of medical cannabis dispensaries, retail cannabis stores, and craft cannabis dispensaries;
(24) Create a system whereby a licensed business can verify the status of other licensed businesses;
(25) Develop forms, licenses, identification cards, and applications as are necessary or convenient in the discretion of the executive director for the administration of this chapter or rules adopted pursuant to this chapter;
(26) Administer and manage a state cannabis testing facility; and
(27) Delegate powers and duties of the executive director to other state or county departments or agencies pursuant to memoranda of agreement for the purposes of implementing the provisions of this chapter related to administration, investigation, inspection, fee collection, document management, education and outreach, distribution of individual licenses approved by the board, and technical assistance pertaining to the cultivation of cannabis.
§A-15 Administrative rules; authority. (a) No later than December 31, 2024, the board shall adopt interim rules, which shall be exempt from chapters 91 and 201M, to effectuate the purposes of this chapter; provided that the interim rules shall remain in effect until December 31, 2029, or until rules are adopted pursuant to subsection (c), whichever occurs sooner.
(b) The board may amend the interim rules to effectuate the purposes of this chapter, and the amendments shall be exempt from chapters 91 and 201M; provided that any amended interim rules shall remain in effect until December 31, 2029, or until rules are adopted pursuant to subsection (c), whichever occurs sooner.
(c) No later than December 31, 2029, the board shall adopt rules pursuant to chapter 91 to effectuate the purposes of this chapter.
§A-16 Administrative rules; mandatory. (a) The rules adopted pursuant to section A-15 shall include:
(1) Procedures for application that an applicant for a license, permit, or registration must follow and complete before consideration by the authority or board;
(2) A schedule of fees including application, license, permit, registration, and renewal fees, in amounts necessary to pay for all regulation and enforcement costs of the authority; provided that fees may be relative to the volume of business conducted or to be conducted by the licensed business;
(3) Qualifications for licensure or permitting and minimum standards for employment that are directly and demonstrably related to the operation of a licensed business;
(4) Procedures and policies to promote and encourage full participation in the regulated cannabis industry by people from disproportionately impacted areas;
(5) Requirements for licensure, permitting, and registration, including updating and renewing licensure, permitting, and registration;
(6) Requirements for the information to be furnished by a licensed business relating to the licensed business's employees, any necessary registration requirements for employees working at a licensed business, and requirements that all licensed business employees be properly trained in their respective professions as necessary;
(7) Requirements for fingerprinting or other method of identification for the purposes of criminal history record checks as authorized by section 846-2.7;
(8) Procedures and grounds for penalties for violation of this chapter, including the administrative hold, suspension, or revocation of a license, permit, or registration;
(9) Requirements for recordkeeping by a licensed business, including the keeping of books, financial records, statements, or other records of a licensed business;
(10) Requirements and procedures to track cannabis cultivated, processed, transported, delivered, distributed, dispensed, tested, sold, or destroyed by licensed businesses;
(11) Requirements and procedures for the seed-to-sale tracking system;
(12) Security requirements for a licensed business sufficient to deter and prevent theft and unauthorized entrance into restricted areas containing cannabis, which shall include the use of security cameras; provided that the requirements shall not prohibit the cultivation of cannabis outdoors or in greenhouses;
(13) Requirements for liability insurance coverage for a licensed business or requirements for other adequate security against liabilities, including that a licensed business place a certain sum in escrow to be expended for coverage of liabilities;
(14) Requirements and procedures sufficient to ensure the virtual separation of medical cannabis from adult-use cannabis distributed by a cannabis processor or dispensed by a retail cannabis store;
(15) Requirements and procedures to prevent the sale, delivery, or transfer of cannabis to persons under the age of twenty-one, or the purchase of cannabis on behalf of a person under the age of twenty-one, including a prohibition on persons under the age of twenty-one entering the licensed premises of a licensed business unless otherwise authorized for medical use pursuant to this chapter;
(16) Standards for manufacturing or extracting cannabinoid oil or butane hash oil;
(17) The circumstances, manner, and process by which a licensed business may apply for a change in ownership, including procedures and requirements to enable the transfer of a license for a licensed business to another qualified person or to another suitable location subject to the board's approval;
(18) Health and safety standards, established in consultation with the department of health and department of agriculture, for the cultivation, processing, distribution, and dispensing of cannabis, including standards regarding sanitation for the preparation, storage, handling, and sale of edible cannabis products and compliance with chapter 321 and health inspections by the department of health; provided that the power to adopt rules pertaining to the use of pesticides shall remain with the department of agriculture;
(19) Requirements for the packaging of cannabis and hemp;
(20) Requirements for the potency or dosing limitations of cannabis, including separate requirements for the potency or dosing limitations of medical cannabis;
(21) Requirements for the labeling of a package containing cannabis or hemp;
(22) Procedures and policies, in consultation with the department of agriculture, to promote and encourage full participation in the regulated cannabis industry by farmers and agricultural businesses with emphasis on promoting small farms, diversified agriculture, and indigenous farming practices;
(23) Requirements for the safe disposal of excess, contaminated, adulterated, or deteriorated cannabis;
(24) Requirements for advertising, marketing, and branding cannabis and hemp;
(25) Requirements for a process allowing the executive director to order a prohibition on the sale of cannabis found to be detrimental to health or especially appealing to persons under the age of twenty-one;
(26) Requirements for a process allowing a cannabis business to voluntarily submit a cannabis product, its packaging, and intended marketing to the authority for review of whether the cannabis product is especially appealing to persons under the age of twenty-one;
(27) Energy and environmental standards for licensure and licensure renewal of cannabis cultivators, cannabis processors, craft cannabis dispensaries, medical cannabis cooperatives, and hemp extract processors;
(28) Manners in which licensed premises shall be constructed, arranged, furnished, equipped, maintained, and operated;
(29) Classification of any cannabis-derived compound, cannabinoid or hemp-derived compound, or cannabinoid; and
(30) Prohibitions or restrictions on the use of a synthetic cannabinoid or artificially derived cannabinoid in any cannabis product or hemp product.
(b) For the purposes of this section:
"Artificially derived cannabinoid" means a chemical substance created by a chemical reaction that changes the molecular structure of any chemical substance derived from the plant of the genus Cannabis. "Artificially derived cannabinoid" does not include:
(1) A naturally occurring chemical substance that is separated from the plant of the genus Cannabis by a chemical or mechanical extraction process; or
(2) Cannabinoids that are produced by decarboxylation from naturally occurring cannabinoid acid without the use of a chemical catalyst.
"Synthetic cannabinoid" means a cannabinoid that is:
(1) Produced artificially, whether from chemicals or from recombinant biological agents including yeast and algae; and
(2) Not derived from the plant of the genus Cannabis, including biosynthetic cannabinoids.
§A-17 Cannabis regulation, nuisance abatement, and law enforcement special fund; established. (a) There shall be established in the treasury of the State the cannabis regulation, nuisance abatement, and law enforcement special fund to be administered and expended by:
(1) The authority, for the implementation, administration, and enforcement of this chapter by the authority;
(2) The department of the attorney general, for the implementation and administration of the drug nuisance abatement unit established by section 28-131 to provide for the effective enforcement and prosecution of those violations of the drug nuisance abatement laws under part V of chapter 712 relating to cannabis; and
(3) The department of
law enforcement, for the implementation and administration of the cannabis
enforcement unit established by section A-19.
(b) The following shall be deposited into the cannabis regulation, nuisance abatement, and law enforcement special fund:
(1) The tax collected pursuant to section B-7(1);
(2) Fees, fines, and civil penalties received pursuant to this chapter and rules adopted pursuant to this chapter;
(3) Appropriations made by the legislature to the special fund;
(4) Interest earned or accrued on moneys in the special fund; and
(5) Contributions, grants, endowments, or gifts in cash or otherwise from any source, including licensed businesses.
(c) Moneys on balance in the cannabis regulation, nuisance abatement, and law enforcement special fund at the close of each fiscal year shall remain in the special fund and shall not lapse to the credit of the general fund.
§A-18 Cannabis social equity, public health and education, and public safety special fund; established. (a) There shall be established in the treasury of the State the cannabis social equity, public health and education, and public safety special fund to be administered and expended by the authority, for:
(1) The implementation and administration of the social equity program as provided in part IX;
(2) Substance abuse prevention and treatment and education, including preventing and treating substance abuse among youth, controlling and treating substance abuse, and educating the public about cannabis use and laws, and for the implementation and administration of the public health and education campaign and public health and education grant program as provided in part X;
(3) The implementation and administration of the public safety grant program as provided in part XI; and
(4) The implementation and administration of the Hawaii hemp grant program as provided in sections A-174 and A-175.
(b) The following shall be deposited into the cannabis social equity, public health and education, and public safety special fund:
(1) The tax collected pursuant to section B-7(2);
(2) Appropriations made by the legislature to the special fund;
(3) Interest earned or accrued on moneys in the special fund; and
(4) Contributions, grants, endowments, or gifts in cash or otherwise from any source, including licensed businesses.
(c) Moneys on balance in the cannabis social equity, public health and education, and public safety special fund at the close of each fiscal year shall remain in the special fund and shall not lapse to the credit of the general fund.
§A-19 Cannabis enforcement unit; established. (a) There shall be established in the department of law enforcement the cannabis enforcement unit, which shall have a primary mission to prevent:
(1) The distribution of cannabis to persons under the age of twenty-one, especially minors;
(2) Revenues from the sale of cannabis from going to criminal enterprises, gangs, and cartels;
(3) The diversion of cannabis from the legal market;
(4) State-authorized cannabis activity from being used as a cover or pretext for the trafficking of other illegal drugs or activity, including money laundering;
(5) Violence and the use of firearms in the cultivation and distribution of cannabis; and
(6) The cultivation of cannabis on public lands and the attendant public safety and environmental dangers posed by cannabis production on public lands.
(b) The cannabis enforcement unit shall provide law enforcement assistance to the authority and board in the investigation and enforcement of this chapter and criminal laws relating to marijuana or marijuana concentrate, particularly those involving the illicit cannabis trade.
(c) In providing law enforcement assistance to the authority and board, any law enforcement officer of the cannabis enforcement unit designated by the director of law enforcement as an investigator or detective may:
(1) Carry firearms;
(2) Execute and serve search warrants, arrest warrants, administrative inspection warrants, subpoenas, and summonses issued under the authority of this State;
(3) Make arrests without warrant for any offense under this chapter, chapter 329, and part IV of chapter 712 committed in the law enforcement officer's presence, or if the law enforcement officer has probable cause to believe that the person to be arrested has committed or is committing a violation of this chapter, chapter 329, or part IV of chapter 712 that may constitute a crime;
(4) Make seizures of property pursuant to this chapter, chapter 329, or chapter 712A; or
(5) Perform other law enforcement duties as the director of law enforcement designates.
(d) Nothing in this chapter shall be construed to relieve or diminish law enforcement officers of the department of law enforcement of any authority or responsibility to enforce, or prosecute under, criminal laws related to marijuana or marijuana concentrate in the State, including this chapter, chapter 329, and part IV of chapter 712.
§A-20 County law enforcement and prosecution. Nothing in this chapter shall be construed to relieve or diminish county law enforcement officers and prosecutors of any authority or responsibility to enforce, or prosecute under, criminal laws related to marijuana or marijuana concentrate, including this chapter, chapter 329, and part IV of chapter 712, in their respective counties.
§A-21 Investigation by a law enforcement agency of unlawful activity. Notwithstanding any other law, the executive director shall disclose any information, documents, and other records regarding licensed businesses, upon request, to any federal, state, or county agency engaged in the criminal investigation or prosecution of violations of applicable federal, state, or county laws or regulations related to the operations or activities of licensed businesses.
§A-22 Inspection; audits; reporting; authority. (a) Any licensed business shall:
(1) Be subject to an annual announced inspection and unlimited unannounced inspections of its operations by the authority; provided that inspections for license renewals shall be unannounced;
(2) Submit reports on at least a quarterly basis, or as otherwise required, and in the format specified by the executive director; and
(3) Annually cause an independent financial audit, at the licensed business's own expense, to be conducted of the accounts, funds, programs, activities, and functions of the licensed business. The licensed business shall submit the audit's findings to the executive director. All audits shall be conducted in accordance with generally accepted auditing standards established by the American Institute of Certified Public Accountants. The executive director may require a response, in writing, to the audit results. The response shall be made to the executive director within fifteen calendar days of notification.
(b) The authority and attorney general may examine all records required to be kept or filed under this chapter, and books, papers, and records of any person engaged in the business of cultivating, processing, distributing, dispensing, selling, or transferring cannabis or restricted cannabinoid products, to verify compliance with this chapter and chapter B. Every person in possession of any books, papers, and records, and the person's agents and employees, shall be directed and required to give the authority and attorney general the means, facilities, and opportunities for the examinations.
(c) The authority and attorney general may inspect the operations, premises, and storage areas of any entity engaged in cultivating, processing, distributing, dispensing, selling, or transferring of cannabis or restricted cannabinoid products, during regular business hours. This inspection shall include inspection of all statements, books, papers, and records in whatever format, including electronic format, pertaining to the cultivation, processing, acquisition, possession, transportation, sale, or use of cannabis or restricted cannabinoid products, to verify compliance with this chapter and chapter B. This inspection may also be conducted to verify that all cannabis or restricted cannabinoid products were cultivated or processed in compliance with this chapter. Every entity in possession of any books, papers, and records, and the entity's agents and employees, shall be directed and required to give the authority and attorney general the means, facilities, and opportunities for the inspections.
(d) If the authority or attorney general has reasonable cause to believe and does believe that cannabis or restricted cannabinoid products are being cultivated, processed, acquired, possessed, transported, kept, sold, or offered for sale in violation of this chapter, the authority or the attorney general may investigate or search the premises or vehicle in which the cannabis or restricted cannabinoid products are believed to be located. If cannabis or restricted cannabinoid products are found in the premises or vehicle in violation of this chapter, the cannabis or restricted cannabinoid products, or other tangible personal property containing the cannabis or restricted cannabinoid products and any books, papers, and records in possession of the entity in control or possession of the cannabis or restricted cannabinoid products, may be seized by the authority or attorney general and shall be subject to forfeiture as provided in this chapter and chapter 712A.
§A-23 Forfeiture; confiscation and seizure; disposition. (a) Any cannabis or restricted cannabinoid product unlawfully cultivated, processed, possessed, kept, stored, retained, held, owned, received, transported, imported, or caused to be imported, acquired, distributed, sold, or offered for sale in violation of this chapter may be seized and confiscated by the attorney general and ordered forfeited pursuant to chapter 712A.
(b) The attorney general, department of law enforcement, and police department of each of the counties may seize and confiscate any cannabis or restricted cannabinoid product that is cultivated, processed, possessed, kept, stored, retained, held, owned, received, transported, imported, or caused to be imported, acquired, distributed, sold, or offered for sale in violation of this chapter. Law enforcement agencies seizing live plants as evidence shall not be responsible for the care and maintenance of the plants.
(c) Any cannabis or restricted cannabinoid product forfeited as provided in this section shall be ordered destroyed.
§A-24 County authority. (a) Each county may, by amendment of their zoning ordinances, pursuant to the powers granted under section 46-4, place reasonable restrictions on the location of licensed businesses.
(b) Nothing in this chapter shall be construed to supersede or in any manner affect a county smoking ordinance; provided that the ordinance is at least as protective of the rights of nonsmokers as this chapter.
§A-25 Contracts pertaining to lawful operation of a cannabis business; enforceable. Notwithstanding any other law to the contrary, contracts related to lawful activities authorized by this chapter shall be enforceable. A contract entered into by a cannabis business, or by those who allow property to be used by a cannabis business, shall not be unenforceable or void solely for the reason that the activity permitted by this chapter is prohibited by federal law.
§A-26 Provision of professional services to a cannabis business. A person engaged in a profession or occupation subject to state or county licensure shall not be subject to disciplinary action by a professional licensing authority solely for providing professional services to a cannabis business related to activity permitted by this chapter.
§A-27 Authority employees; background checks. (a) The authority shall conduct background checks, which may include criminal history record checks in accordance with section 846‑2.7, on:
(1) Current or prospective members of the board;
(2) Current or prospective employees of the authority; and
(3) Current or prospective contractors or subcontractors and employees of current or prospective contractors or subcontractors of the authority.
The authority shall develop procedures for conducting background checks.
(b) The authority may refuse to employ or deny employment to an applicant or terminate or refuse to secure the services of any contractor or subcontractor if the person has been convicted of a crime, and if the executive director finds by reason of the nature and circumstances of the crime that the person poses a risk to the integrity of the authority; provided that the authority shall not refuse to employ or deny employment to an applicant or terminate or refuse to secure the services of any contractor or subcontractor if the person's conviction:
(1) Is pardoned or expunged;
(2) Resulted in a term of probation, incarceration, or supervised release that was completed more than ten years ago; or
(3) Is solely for a marijuana-related offense, unless the offense involved a minor, including the offense under section 712-1249.6, or a firearm, including the offense under section 134-7(b).
(c) Refusal, revocation, or termination may occur only after appropriate investigation and notification to the current or prospective employee, contractor, or subcontractor of results and planned action, and after the current or prospective employee, contractor, or subcontractor is given an opportunity to meet and rebut the finding. Nothing in this section shall abrogate any applicable appeal rights under chapter 76 or 89.
§A-28 Annual report; report on criminal offenses. No later than twenty days prior to the convening of the regular session of 2026, and every year thereafter, the executive director shall submit a report to the governor and legislature on the establishment and regulation of cannabis businesses. The report shall cover the information during the prior fiscal year and, at a minimum, include the following information:
(1) The number of applications for each type of license and permit submitted to the authority pursuant to this chapter, including, if applicable, the number of applications for license and permit renewals;
(2) The total number of each type of license and permit issued pursuant to this chapter that is actively held by a licensed business;
(3) The total square footage of plant canopy approved by the board for cannabis cultivation and the percentage of active cannabis cultivation by cultivation tier;
(4) The total amount of application fees and license, permit, and registration fees collected pursuant to this chapter and the total amount of the tax revenue collected on the sale of cannabis;
(5) The total reported volume and value of cannabis cultivated by all cannabis cultivators;
(6) The total reported volume and value of cannabis distributed and dispensed by all licensed businesses;
(7) The number of inspections of licensed businesses performed by the authority and the results of those inspections, including the number of inspections resulting in license violations and the percentage of all licensed businesses inspected;
(8) The number of license violations committed by licensed businesses and a breakdown of those violations into specific categories based on the type of violation and the outcome of the violation, including the total amount of monetary penalties imposed and collected by the authority and the percentage of total license violations resulting in the imposition of a monetary penalty, administrative hold, license suspension, or license revocation;
(9) Public health and safety data, including accidental ingestion by minors and cannabis-related driving accidents, collected, received, or analyzed by the authority; and
(10) Recommendations, including any proposed legislation, to address any issues with the regulation of the cannabis industry in the State encountered by the authority, departments, or agencies.
PART
III. AUTHORIZED CONDUCT; MEDICAL USE OF
CANNABIS
§A-41 Possession of cannabis for medical use. (a) Notwithstanding any law to the contrary, except as limited by this chapter, it shall be lawful for a medical cannabis patient or the patient's caregiver to:
(1) Purchase, transport, or possess jointly between the medical cannabis patient and the patient's caregiver, an adequate supply of cannabis; and
(2) Transfer an adequate supply of cannabis, without compensation of any kind, from a caregiver to the caregiver's medical cannabis patient.
(b) For medical use only, it shall be lawful for a medical cannabis patient to smoke, ingest, or consume cannabis.
(c) Notwithstanding any law to the contrary, in addition to an adequate supply of cannabis, a qualifying patient or the patient's caregiver may lawfully possess jointly between them, in their private residences or at the licensed premises of a medical cannabis cooperative of which the qualifying patient is a member, up to one pound of cannabis produced by their cultivation of cannabis for medical use pursuant to section A‑42; provided that no more than two pounds of any cannabis in total, whether for medical use or personal adult use, shall be stored at any private residence, regardless of the number of people residing there.
(d) All medical cannabis shall be stored in a sealed child‑resistant and resealable packaging with original labels and not easily accessible to any person under the age of twenty‑one unless that person is a medical cannabis patient.
(e) All cannabis shall be transported in a sealed container, shall not be visible to the public, and shall not be removed from its sealed container or consumed or used in any way while in a public place or vehicle.
(f) The medical use of cannabis alone shall not disqualify a person from any needed medical procedure or treatment, including organ and tissue transplants, unless in the judgment of the health care provider the use of cannabis increases the risk for an adverse outcome from the procedure or treatment.
(g) The authorization of a medical cannabis patient to use medical cannabis shall be inclusive of, and not in addition to, the authorization for personal adult use of cannabis.
§A-42 Cultivation of cannabis for medical use. (a) Notwithstanding any other law to the contrary, a qualifying patient or the patient's caregiver may:
(1) Possess, plant, or cultivate no more than ten living cannabis plants, whether mature or immature, for medical use only; and
(2) Harvest, dry, and process the cannabis produced by the plants under paragraph (1) for the qualifying patient's medical use only.
(b) The personal cultivation of cannabis for medical use shall only be permitted within, or on the grounds of, the private residence of a qualifying patient or the patient's caregiver, or on the licensed premises of a medical cannabis cooperative of which the qualifying patient is a member; provided that no more than ten plants, whether mature or immature and whether for medical use or personal adult use, shall be cultivated at a private residence at any time regardless of the number of qualifying patients, caregivers, or other people residing at the private residence.
(c) Cannabis plants cultivated for medical use shall be kept in a secured place not easily accessible to any person under the age of twenty-one unless that person is a qualifying patient.
(d) Cannabis plants cultivated for medical use shall not be visible to the public without the use of technology.
(e) A landlord, condominium association, planned community association, or similar association may limit or prohibit the personal cultivation of cannabis for medical use through contracts, lease or rental agreements, bylaws, or rules.
(f) The board shall adopt rules pursuant to this chapter to establish requirements and restrictions for the personal cultivation of cannabis for medical use, including manners in which cannabis may be cultivated or processed and further restrictions necessary to ensure that the personal cultivation of cannabis for medical use is not utilized for unlicensed illicit activity; provided that any rules adopted by the board shall not completely or essentially prohibit the personal cultivation of cannabis for medical use.
§A-43 Conditions of medical use of cannabis by a qualifying patient. (a) The medical use of cannabis shall only be authorized if:
(1) The qualifying patient has been diagnosed by, and is under the continuing care of, a certifying medical professional as having a debilitating medical condition;
(2) The qualifying patient's certifying medical professional has issued a written certification for the qualifying patient;
(3) The qualifying patient has paid the required fee for registration;
(4) The qualifying patient has registered with the authority pursuant to section A-47; and
(5) The amount of cannabis possessed by the qualifying patient does not exceed the amount authorized in section A-41.
(b) Subsection (a) shall not apply to a qualifying patient under the age of eighteen, unless:
(1) The qualifying patient's certifying medical professional has explained the potential risks and benefits of the medical use of cannabis to the qualifying patient and a parent, guardian, or person having legal custody of the qualifying patient; and
(2) A parent, guardian, or person having legal custody of the qualifying patient consents in writing to:
(A) Allow the qualifying patient's medical use of cannabis;
(B) Serve as the qualifying patient's caregiver; and
(C) Control the acquisition, dosage, and frequency of the medical use of cannabis by the qualifying patient.
§A-44 Reciprocity with other states; qualifying out-of-state patients. (a) Notwithstanding any law to the contrary, the medical use of cannabis by a qualifying out-of-state patient who is at least eighteen years of age shall be authorized only if the qualifying out-of-state patient:
(1) Is legally authorized to use cannabis for medical purposes in another state, the District of Columbia, or a United States territory;
(2) Attests under penalty of law pursuant to section 710‑1063 that the condition for which the qualifying out-of-state patient is legally authorized to use cannabis for medical purposes is a debilitating medical condition;
(3) Provides consent for the authority to obtain information from the qualifying out-of-state patient's certifying physician or advanced practice registered nurse and from the entity that issued the medical cannabis authorization for the purpose of allowing the authority to verify the information provided in the registration process;
(4) Pays the required fee for out-of-state registration;
(5) Registers with the authority pursuant to section A-48;
(6) Receives a medical cannabis registration card from the authority; and
(7) Abides by all laws relating to the medical use of cannabis, including not possessing amounts of cannabis that exceed an adequate supply.
(b) The medical use of cannabis by a qualifying out‑of‑state patient under the age of eighteen shall be permitted only if:
(1) The caregiver of the qualifying out-of-state patient provides the information required pursuant to, and abides by the requirements of, subsection (a); and
(2) The caregiver of the qualifying out-of-state patient consents in writing to:
(A) Allow the qualifying out-of-state patient's medical use of cannabis;
(B) Undertake the responsibility for managing the well-being of the qualifying out-of-state patient with respect to the medical use of cannabis; and
(C) Control the acquisition, dosage, and frequency of the medical use of cannabis by the qualifying out-of-state patient.
§A-45 Limitation; scope of medical use of cannabis. The authorization for the medical use of cannabis in this part shall not apply to:
(1) The medical use of cannabis that endangers the health or well-being of another person;
(2) The medical use of cannabis:
(A) In a school vehicle, public transportation, or any vehicle;
(B) In the workplace of one's employment;
(C) On any school grounds;
(D) At any public park, beach, or recreation or youth center;
(E) In or on any land, facility, building, or vehicle owned, controlled, or operated by the State or any county;
(F) In or on any federal fort or arsenal, national park or forest, any other federal enclave, or any other property owned, controlled, or operated by the federal government; or
(G) At any other place open to the public, including smoking or vaping cannabis in public as prohibited by chapter 328J;
(3) The medical use of cannabis by any person that is not a medical cannabis patient, including a parent or caregiver.
§A-46 Written certifications; qualifying patients. (a) A qualifying patient shall have a valid written certification from a certifying medical professional stating that in the certifying medical professional's professional opinion:
(1) The qualifying patient has a debilitating medical condition; and
(2) The potential benefits of the medical use of cannabis would likely outweigh the health risks of cannabis use for the qualifying patient.
(b) The board shall adopt rules pursuant to this chapter to establish procedures and requirements for a written certification; provided that a written certification shall:
(1) Include the name, address, patient identification number, and other identifying information of the qualifying patient;
(2) Be valid for one year from the time of signing; provided that the board may allow for the validity of any written certification for up to three years if the qualifying patient's certifying medical professional states that the qualifying patient's debilitating medical condition is chronic in nature;
(3) Be in a form prescribed by the authority and completed by or on behalf of a qualifying patient; and
(4) Be issued and certified by a certifying medical professional who has a bona fide physician-patient relationship or bona fide advanced practice registered nurse-patient relationship, as applicable, with the qualifying patient.
§A-47 Registration; qualifying patients; caregivers. (a) Qualifying patients shall register with the authority. The board shall adopt rules to establish procedures and requirements for the registration of qualifying patients; provided that:
(1) Every qualifying patient shall:
(A) Provide sufficient identifying information to establish their personal identity;
(B) Provide the address of the location where the qualifying patient or the patient's caregiver intends to cultivate cannabis for medical use pursuant to section A-42; provided that if the qualifying patient or patient's caregiver intends to cultivate cannabis for medical use at a medical cannabis cooperative pursuant to section A-117, the license number and documentation verifying that the qualifying patient is a valid member of the medical cannabis cooperative shall be required; and
(C) Report a change in any information provided to the authority for registration within ten working days of the change;
(2) The registration form prescribed by the authority shall require information from the qualifying patient, the patient's caregiver, and the patient's certifying medical professional as specifically required by this chapter or rules adopted pursuant to this section;
(3) The authority shall issue to the qualifying patient a medical cannabis registration card and may charge a fee for the registration in an amount set in rules by the board; and
(4) The registration shall be effective until the expiration of the written certification provided by the certifying medical professional.
(b) The caregiver of a qualifying patient shall register with the authority. The board shall adopt rules to establish procedures and requirements for the registration of caregivers; provided that:
(1) Every caregiver shall provide sufficient identifying information to establish their personal identity;
(2) No caregiver shall be registered for more than one qualifying patient at any given time; provided that the authority may permit the parent, guardian, or person having legal custody of more than one qualifying patient who is under the age of eighteen to be the caregiver for each of the qualifying patients who are under the age of eighteen and in their legal custody; and
(3) Every qualifying patient shall have only one caregiver; provided that the authority may permit the parents, guardians, or persons having legal custody of a qualifying patient who is under the age of eighteen to each register as caregivers.
(c) Upon inquiry by a law enforcement agency, the authority shall immediately verify whether a person who is the subject of the inquiry has registered with the authority and the location of the person's registered cultivation site and shall provide reasonable access to the registry information for official law enforcement purposes. An inquiry and verification under this subsection may be made twenty-four hours a day, seven days a week.
(d) This section shall not apply to registration of a qualifying out-of-state patient or a caregiver of a qualifying out-of-state patient.
§A-48 Registration; qualifying out-of-state patients; caregivers. (a) A qualifying out-of-state patient shall register with the authority. The board shall adopt rules to establish procedures and requirements for registration of qualifying out-of-state patients; provided that:
(1) Every qualifying out-of-state patient shall:
(A) Provide a valid government-issued medical cannabis card or any equivalent certificate issued by another state, the District of Columbia, or a United States territory;
(B) Provide a valid photographic identification card or driver's license issued by the same jurisdiction that issued the medical cannabis card; and
(C) Have a debilitating medical condition;
(2) The registration shall be effective for no more than sixty days and may be renewed for no more than one additional sixty-day period that begins no later than twelve months after the preceding registration date; provided that the authority shall not register any qualifying out-of-state patient for a period that exceeds the term of validity of the qualifying out‑of‑state patient's authority for the medical use of cannabis in their home jurisdiction; and
(3) The authority shall issue to the qualifying out‑of‑state patient a medical cannabis registration card and shall charge a fee for the registration in an amount set in rules by the board.
(b) The caregiver of a qualifying out-of-state patient shall register with the authority. The board shall adopt rules to establish procedures and requirements for registration of caregivers; provided that:
(1) Every caregiver shall provide sufficient identifying information to establish their personal identity; and
(2) In the case of any qualifying out-of-state patient who is under the age of eighteen, the authority shall register the qualifying out-of-state patient and the patient's caregiver; provided that the authority may register two caregivers for a qualifying out-of-state patient if each caregiver is the parent, guardian, or person having legal custody of the qualifying out‑of‑state patient who is under the age of eighteen.
(c) Upon inquiry by a law enforcement agency, the authority shall immediately verify whether a person who is the subject of the inquiry has registered with the authority and shall provide reasonable access to the registry information for official law enforcement purposes. An inquiry and verification under this subsection may be made twenty-four hours a day, seven days a week.
(d) The board may temporarily suspend the registration of qualifying out-of-state patients or their caregivers for a period of up to thirty days if the board determines that the registration process for qualifying patients or their caregivers is being adversely affected or the supply of cannabis for medical use available in medical cannabis dispensaries and retail cannabis stores is insufficient to serve both qualifying patients and qualifying out-of-state patients. A temporary suspension may be extended by thirty-day periods until the board determines that:
(1) Adequate capacity exists to register qualifying out-of-state patients and their caregivers in addition to qualifying patients and their caregivers; and
(2) The medical cannabis dispensaries and retail cannabis stores are able to meet the demands of both qualifying patients and qualifying out-of-state patients.
§A-49 Certifying medical professionals. (a) The board shall adopt rules to establish requirements for certifying medical professionals.
(b) No certifying medical professional shall be subject to arrest or prosecution, penalized in any manner, or denied any right or privilege for providing a written certification for the medical use of cannabis for a qualifying patient; provided that:
(1) The certifying medical professional has diagnosed the patient as having a debilitating medical condition;
(2) The certifying medical professional has explained the potential risks and benefits of the medical use of cannabis; and
(3) The written certification is based upon the certifying medical professional's professional opinion after having completed a full assessment of the qualifying patient's medical history and current medical condition made in the course of a bona fide physician‑patient relationship or bona fide advanced practice registered nurse-patient relationship, as applicable.
(c) For purposes of this part, a bona fide physician‑patient relationship may be established via telehealth, as defined in section 453-1.3(j), and a bona fide advanced practice registered nurse-patient relationship may be established via telehealth, as defined in section 457-2; provided that certifying a patient for the medical use of cannabis via telehealth shall be allowed only after an initial in-person consultation between the certifying medical professional and patient.
PART
IV. AUTHORIZED CONDUCT; PERSONAL ADULT
USE OF CANNABIS
§A-51 Personal adult use of cannabis. (a) Notwithstanding any other provision of law to the contrary, except as limited by this chapter, beginning January 1, 2026, it shall be lawful for persons who are at least twenty-one years of age to:
(1) Smoke, ingest, or consume adult-use cannabis;
(2) Purchase, transport, or possess up to one ounce of cannabis flower and up to five grams of adult-use cannabis products as calculated using information provided pursuant to section A-113(d);
(3) Within a person's private residence only, possess up to ten ounces of adult-use cannabis produced by their personal cultivation of cannabis pursuant to section A-52; provided that no more than two pounds of cannabis in total, whether for medical use or personal adult use, shall be stored at any private residence, regardless of the number of people residing there; and
(4) Purchase, obtain, transport, or possess cannabis accessories.
(b) All adult-use cannabis shall be stored in a sealed child-resistant and resealable packaging with original labels and not easily accessible to any person under the age of twenty‑one.
(c)
No school shall refuse to enroll or otherwise penalize, and no landlord
shall refuse to lease property to or otherwise penalize, a person solely for
the person's personal adult use of cannabis under this part, unless failing to
do so would cause the school or landlord to lose a monetary or
licensing-related benefit under federal law or regulation; provided that the person
strictly complied with the requirements of this part.
(d) For the purposes of medical care, including organ transplants, a person's personal adult use of cannabis in compliance with this part shall be considered the equivalent of the use of any other medication under the direction of a physician and shall not constitute the use of an illicit substance or otherwise disqualify a person from medical care.
(e) No person shall be denied custody, visitation, or parenting time with a minor for conduct allowed under this chapter and no presumption of neglect or child endangerment shall arise therefrom; provided that this subsection shall not apply if the person's conduct creates a danger to the safety of the minor as established by a preponderance of the evidence.
(f) Except as provided in this chapter, the State and any of its political subdivisions shall not impose any discipline upon an employee or deny an employee any benefit or entitlement for conduct permitted under this chapter or for the presence of cannabinoids or cannabinoid metabolites in the urine, blood, saliva, breath, hair, or other tissue or fluid of a person who is at least twenty-one years of age, unless the failure to do so would cause the State or any of its political subdivisions to lose a monetary or licensing-related benefit under a contract or federal law, or otherwise violate federal law. This subsection shall not be construed to prohibit the State or any of its political subdivisions from conducting drug testing and using the results of those tests for the discipline of an employee if the testing is done to comply with federal requirements or in accordance with the applicable collective bargaining agreement.
§A-52 Personal cultivation of adult-use cannabis. (a) Notwithstanding any other provision of law to the contrary, except as limited by this part, beginning January 1, 2026, it shall be lawful for persons who are at least twenty-one years of age to:
(1) Possess, plant, or cultivate no more than six living cannabis plants, whether mature or immature, for personal adult use only; and
(2) Harvest, dry, and process the cannabis produced by the plants under paragraph (1) for personal adult use only.
(b) Personal cultivation of adult-use cannabis shall only be permitted within, or on the grounds of, a person's private residence; provided that no more than ten plants, whether mature or immature and whether for medical use or for personal adult use, shall be cultivated at a private residence at any time regardless of the number of people residing at the private residence.
(c) Cannabis plants cultivated for personal adult use shall be kept in a secured place not easily accessible to any person under the age of twenty-one.
(d) Cannabis plants cultivated for personal adult use shall not be visible to the public without the use of technology.
(e) A landlord, condominium association, planned community association, or similar association may limit or prohibit the personal cultivation of adult-use cannabis through contracts, lease or rental agreements, bylaws, or rules.
(f) The board shall adopt rules pursuant to this chapter to establish requirements and restrictions for the personal cultivation of adult-use cannabis, including manners in which the adult-use cannabis may be cultivated or processed and further restrictions necessary to ensure that the personal cultivation of adult-use cannabis is not utilized for unlicensed illicit activity.
§A-53 Limitation; scope of personal adult use of cannabis. The authorization for the personal adult use of cannabis in this part shall not apply to:
(1) Any use of cannabis that endangers the health or well‑being of another person;
(2) Any use of cannabis:
(A) In a school vehicle, public transportation, or any vehicle;
(B) In the workplace of one's employment;
(C) On any school grounds;
(D) At any public park, beach, or recreation or youth center;
(E) In or on any land, facility, building, or vehicle owned, controlled, or operated by the State or any county;
(F) In or on any federal fort or arsenal, national park or forest, any other federal enclave, or any other property owned, controlled, or operated by the federal government; or
(G) At any other place open to the public, including smoking or vaping cannabis in public as prohibited by chapter 328J;
provided that a college or university may authorize the use of adult-use cannabis on the grounds of or within the college or university in accordance with this chapter, but shall allow the use of adult-use cannabis by a college or university faculty member or student while the faculty member or student is within faculty or student housing; and
(3) The use of cannabis by anyone under the age of twenty-one.
§A-54 Cannabis accessories; authorized. (a) Notwithstanding any other provision of law to the contrary, it shall be lawful for persons who are at least twenty-one years of age to manufacture, possess, possess with intent to distribute, or purchase cannabis accessories, or distribute or sell cannabis accessories to persons who are at least twenty-one years of age.
(b) This section is intended to meet the requirements of title 21 United States Code section 863(f) by authorizing, under state law, any person in compliance with this chapter to manufacture, possess, or distribute cannabis accessories.
PART
V. UNLAWFUL CONDUCT
§A-61 Prohibited acts; flammable solvents; criminal offense. (a) No person shall intentionally or knowingly use butane to extract cannabinoids or any compound from cannabis or hemp.
(b) This section shall not apply to licensed businesses acting pursuant to this chapter.
(c) Any person who violates this section shall be guilty of a class C felony.
(b) All persons engaged in the retail sale of cannabis, as authorized under this chapter, shall check the government-issued photographic identification of a cannabis purchaser to establish the age of the purchaser before the sale of cannabis.
(c) The fact that the defendant sold cannabis to
a person under the age of twenty-one is prima facie evidence that the defendant
knew the transferee to be a person under the age of twenty-one.
(d) It shall be an affirmative defense to subsection (a) that the licensed seller of cannabis had requested, examined, and reasonably relied upon a government-issued photographic identification establishing the cannabis purchaser's age as at least twenty-one years of age before selling cannabis to the person. The failure of a seller to request and examine a government-issued photographic identification pursuant to subsection (b) shall be construed against the seller and form a conclusive basis for the seller's violation of subsection (a).
(e) Any person who violates subsection (a) shall be guilty of a misdemeanor.
§A-63 Criminal offenses; records; expungement. (a)
Records relating to the arrest, criminal charge, or conviction of a
person for an offense under chapter 329, part IV of chapter 712, or any other
offense, the basis of which is an act permitted by this chapter or
decriminalized under Act , Session Laws of Hawaii
2024, including the possession of marijuana, shall be ordered to be expunged in
accordance with the provisions of this section.
(b)
Beginning January 1, 2026:
(1) A person arrested for or charged with an offense under chapter 329, part IV of chapter 712, or any other offense, the basis of which is an act permitted by this chapter or decriminalized under Act , Session Laws of Hawaii 2024, including the possession or distribution of marijuana, shall have the right to petition the attorney general, at any time and without limitation to the number of petitions a person may file, for the expungement of the person's records relating to the arrest or criminal charge pursuant to procedures established by the attorney general; and
(2) A person convicted for an offense under chapter 329, part IV of chapter 712, or any other offense, the basis of which is an act permitted by this chapter or decriminalized under Act , Session Laws of Hawaii 2024, shall have the right to petition the appropriate court of record, at any time and without limitation to the number of petitions a person may file, for the expungement of the person's records relating to the conviction and review and adjustment of the person's sentence pursuant to procedures established by the judiciary.
PART VI. CANNABIS BUSINESSES AND HEMP BUSINESSES;
GENERAL
§A-71 Cannabis business; hemp business; authorized. (a) Notwithstanding any law to the contrary, a cannabis business or hemp business may operate only as authorized by this chapter.
(b) No person shall operate a cannabis business or hemp business unless that person holds a valid license or permit issued by the board pursuant to this chapter or rules adopted pursuant to this chapter; provided that a hemp cultivator shall hold a valid license to produce hemp issued by the United States Secretary of Agriculture and be in compliance with section A-132.
(c) Each license or permit issued by the authority or board to a cannabis business or hemp business shall be separate and distinct from any other license or permit issued to the same cannabis business or hemp business pursuant to this chapter or rules adopted pursuant to this chapter.
(d) In addition to any other penalties allowed by law, operating a cannabis business, including distributing, selling, or offering for sale a restricted cannabinoid product, or a hemp business without a valid license or permit issued by the authority or board pursuant to this chapter or rules adopted pursuant to this chapter shall constitute an unfair method of competition and unfair or deceptive act or practice pursuant to section 480-2 and shall be subject to a civil penalty as provided in section 480-3.1. Each package of cannabis or restricted cannabinoid product sold in violation of this part shall constitute a separate violation.
§A-72 Applicant criteria. (a) An applicant for a license under this chapter shall meet each of the following criteria, if applicable.
(b) If the applicant is a natural person, the applicant shall establish at a minimum that the applicant:
(1) Is at least twenty-one years of age;
(2) Has been a legal resident of the State for no less than five years preceding the date of application; provided that this paragraph shall not apply to an applicant for a license pursuant to part VIII;
(3) Has a Hawaii tax identification number and is compliant with the tax laws of the State;
(4) Has not been convicted of a felony; provided that a conviction:
(A) That is pardoned or expunged;
(B) That resulted in a term of probation, incarceration, or supervised release that was completed more than ten years preceding the application; or
(C) Solely for a marijuana-related offense, unless the offense involved a minor, including the offense under section 712-1249.6, or a firearm, including the offense under section 134-7(b),
shall not disqualify a person from applying for a license; and
(5) Has not had any license, permit, certificate, registration, or other government-issued authorization related to cannabis or hemp revoked in any jurisdiction.
(c) If the applicant is a business entity, the applying business entity shall establish at a minimum that:
(1) Every officer, director, manager, and general partner of the applying business entity or any person who has the power to direct the management, policies, and practices of the applying business entity:
(A) Is at least twenty-one years of age;
(B) Is a natural person who has been a legal resident of the State for no less than five years preceding the date of application; provided that this subparagraph shall not apply to an applicant for a license pursuant to part VIII;
(C) Has not been convicted of a felony; provided that a conviction:
(i) That is pardoned or expunged;
(ii) That resulted in a term of probation, incarceration, or supervised release that was completed more than ten years preceding the application; or
(iii) Solely for a marijuana-related offense, unless the offense involved a minor, including the offense under section 712‑1249.6, or a firearm, including the offense under section 134-7(b),
shall not disqualify a person from applying for a license; and
(D) Has not had any license, permit, certificate, registration, or other government-issued authorization related to cannabis or hemp revoked in any jurisdiction; and
(2) The applying business entity:
(A) Is controlled by a majority of the shares, membership interests, partnership interests, or other equity ownership interests that is held or owned by natural persons who are legal residents of the State or by business entities whose owners are all natural persons who are legal residents of the State; provided that this subparagraph shall not apply to an applicant for a license pursuant to part VIII;
(B) Has been organized under the laws of the State;
(C) Has a Hawaii tax identification number and is compliant with the tax laws of the State;
(D) Has a department of commerce and consumer affairs business registration number and suffix; and
(E) Has a federal employer identification number.
(d) An applicant shall disclose in or include with its application the names and addresses of the applicant and all persons having a direct or indirect financial interest in the applied-for license and the nature and extent of the financial interest held by each person and the nature and extent of any financial interest the person has in any other license applied for or issued under this chapter.
(e) An applicant shall complete all application forms prescribed by the authority fully and truthfully and comply with all information requests by the authority relating to the license application.
(f) A license shall be denied or revoked if an applicant knowingly or recklessly makes any false statement of material fact to the authority in applying for a license under this chapter.
(g) The board may adopt rules to require additional criteria for licensure for the purposes of protecting the public health and safety, promoting sustainability and agriculture, and encouraging the full participation in the regulated cannabis industry from disproportionately impacted areas.
(h) For purposes of this section, "sustainability" has the same meaning as in section 226-2.
§A-73 Ownership restrictions. No person shall be issued or have any direct or indirect interest in more than three licenses for each class of license, but no more than nine licenses in total; provided that no person:
(1) Holding a license pursuant to this chapter, or having a direct or indirect interest in a cannabis cultivator, cannabis processor, hemp cultivator, hemp extract processor, medical cannabis dispensary, or retail cannabis store, shall be issued a license for, or have any direct or indirect interest in, an independent laboratory, a craft cannabis dispensary, or a medical cannabis cooperative;
(2) Holding a license for, or having a direct or indirect interest in, an independent laboratory shall be issued a license for, or have any direct or indirect interest in, any other licensed business authorized under this chapter or rules adopted pursuant to this chapter;
(3) Holding a license for, or having a direct or indirect interest in, a craft cannabis dispensary shall be issued a license for, or have any direct or indirect interest in, any other licensed business authorized under this chapter or rules adopted pursuant to this chapter; and
(4) Holding a license for, or having a direct or indirect interest in, a medical cannabis cooperative shall be issued a license for, or have any direct or indirect interest in, any other licensed business authorized under this chapter or rules adopted pursuant to this chapter.
§A-74 Criminal history background check. (a) The following shall be subject to background checks conducted by the authority or its designee, which may include criminal history record checks in accordance with section 846-2.7:
(1) Each applicant for a license or permit, including every officer, director, manager, and general partner of an applying business entity or any person who has the power to direct the management, policies, and practices of the applying business entity;
(2) Each current or prospective employee of a licensed business;
(3) Each current or prospective contractor of a licensed business; and
(4) Each current or prospective laboratory agent of an independent laboratory.
(b) A person who is required to undergo a background check shall provide written consent and all applicable processing fees to the authority or its designee to conduct the background check.
§A-75 License; application; approval; denial; appeal. (a) The board shall adopt rules to establish procedures for licensure application, review, approval, and denial, including an application fee for each license.
(b) The board shall set an open application period for each available license. The authority shall not accept an application outside the open application period.
(c) The authority shall publish a notice of the open application period on its website no less than thirty calendar days before the start of the application period. The notice shall contain:
(1) The class or classes of licenses available;
(2) The number of licenses available for each class of license;
(3) The application criteria for each class of license available; and
(4) The procedure to select applications for approval from among the applicants that meet the criteria required for each class of license available.
(d) The authority shall review and investigate whether the information submitted in the application is complete and valid and meets the criteria required pursuant to this chapter or rules adopted pursuant to this chapter, and whether the applicant is otherwise disqualified pursuant to this chapter or rules adopted pursuant to this chapter.
(e) If an application form is incomplete or invalid, the authority may request additional information or documentation; provided that if an applicant fails to cure an incomplete or invalid application within a timeframe prescribed by the authority, the application shall be deemed withdrawn, and the application fee shall be forfeited to the authority.
(f) Upon completion of the review and investigation of the applications submitted for each open application period, the authority shall refer any application that meets the criteria required under this chapter or rules adopted pursuant to this chapter and is not otherwise disqualified pursuant to this chapter or rules adopted pursuant to this chapter to the board with its findings.
(g) The board shall approve or deny the applications in accordance with this chapter and rules adopted pursuant to this chapter; provided that the board may deny an application that meets all of the criteria required for a license if the application was not selected to be approved pursuant to the selection procedure published in the notice pursuant to subsection (c).
(h) Upon the board's determination to deny a license application, the board shall notify the applicant in writing of the denial and the basis for the denial.
(i) Any person aggrieved by the board's denial of a license application may request a contested case hearing pursuant to chapter 91. To request a contested case hearing, the person shall submit a written request to the board within thirty calendar days of the date of the written notice of denial. Appeal to the circuit court under section 91-14, or any other applicable statute, shall only be taken from the board's final order pursuant to a contested case.
§A-76 License term; renewal. (a) All licenses under this chapter shall be effective for one year from the date of issuance and may be renewed annually pursuant to this section. The board shall adopt rules to set forth requirements and procedures for the submission, processing, and approval of a renewal application, including a renewal application fee.
(b) An applicant for renewal shall submit to the authority information, on the form prescribed by the authority, and documentation necessary to verify that the applicant continues to meet the criteria required pursuant to this chapter and rules adopted pursuant to this chapter and is in compliance with all the requirements pursuant to this chapter and rules adopted pursuant to this chapter, including compliance with chapter B and all other laws governing entities doing business in the State, including chapters 237, 383, 386, 392, and 393.
(c) In addition to the review and verification of the information and documentation submitted by the applicant, the authority shall conduct an unannounced inspection of the applicant to verify compliance as required by subsection (b).
(d) Upon submission of the renewal application fee and verification that the applicant meets the requirements under subsection (b), the authority shall renew the applicant's license.
(e) If the authority determines that the applicant is disqualified for renewal for any reason, the authority shall refer the renewal application to the board with its findings. Upon the board's determination to deny the renewal application, the board shall notify the applicant in writing of the denial and the basis for the denial or, if held for further action, the conditions for approval. The failure to meet the conditions set by the board shall result in denial of the renewal application.
(f) Any person aggrieved by the board's denial of license renewal may request a contested case hearing pursuant to chapter 91. To request a contested case hearing, the person shall submit a written request to the board within thirty calendar days of the date of the written notice of denial. Appeal to the circuit court under section 91-14, or any other applicable statute, shall only be taken from the board's final order pursuant to a contested case.
(g) A licensee that files a renewal application and pays all required fees under this section before the expiration of the license may continue to operate under that license notwithstanding its expiration until the authority or board takes final action on the renewal application, unless the board suspends or revokes the license before taking final action on the renewal application.
(h) Except as provided in subsection (g), upon expiration of a license, the licensed business shall immediately cease all activities previously authorized by the license and ensure that all cannabis in the licensed business's possession is forfeited to the authority for destruction pursuant to section A-92.
§A-77 Transfer of ownership; structural reorganization. (a) A licensed business shall not sell or otherwise transfer any license issued under this chapter to another person, reorganize its ownership structure, or restructure its business entity, unless otherwise authorized under this section.
(b) The board shall adopt rules to establish procedures and requirements for the submission of a license transfer, reorganization, or restructuring application and standards for the approval or denial of the application.
(c) A licensed business may apply to the authority, on the form prescribed by the authority, for approval to transfer ownership interests in the license, reorganize its ownership structure, or restructure its business entity.
(d) A person seeking to assume an ownership interest in the licensed business, a new proposed officer, director, manager, or general partner of the licensed business, or anyone who seeks to assume any power to directly or indirectly control the management, policies, and practices of the licensed business shall demonstrate that the person meets all applicable criteria and requirements for licensure pursuant to this chapter and rules adopted pursuant to this chapter, including the background checks and ownership restrictions.
(e) Any license transfer, reorganization, or restructuring done without board approval, or that results in a violation of the ownership restrictions pursuant to section A-73, shall be void and the license shall be subject to immediate revocation.
§A-78 Fees; disposition of fees. All fees charged pursuant to this chapter or rules adopted pursuant to this chapter shall be paid to the authority in the form required by the authority. All fees collected under this chapter or rules adopted pursuant to this chapter shall be deposited in the cannabis regulation, nuisance abatement, and law enforcement special fund established in section A-17.
§A-79 Licensed business operations. (a) The board shall adopt rules to establish requirements for the operation of a licensed business.
(b) In addition to requirements established by any other provision of this chapter and rules adopted pursuant to this chapter, a licensed business shall secure:
(1) Every entrance to the restricted areas of the licensed premises so that access to restricted areas is restricted to employees and others permitted by law to access the restricted area; and
(2) The business's inventory and equipment during and after operating hours to deter and prevent theft of cannabis.
(c) No licensed business shall cultivate, process, store, or test cannabis at any location other than within an area that is enclosed and secured in a manner that prevents access by persons not authorized to access the restricted area. A greenhouse or outdoor cannabis cultivation area shall have sufficient security measures to demonstrate that outdoor areas are not readily accessible by unauthorized individuals, including perimeter security fencing designed to prevent unauthorized entry.
(d) No licensed business shall refuse employees or agents of the authority the right at any time of operation to inspect the entire licensed premises or to audit the books, papers, and records of the licensed business.
(e) No licensed business shall allow any person under the age of twenty-one to work for the licensed business.
(f) No licensed business shall allow any person that has been convicted of a felony to work for the licensed business; provided that a conviction:
(1) That is pardoned or expunged;
(2) That resulted in a term of probation, incarceration, or supervised release that was completed more than ten years preceding the date the person begins employment; or
(3) Solely for a marijuana-related offense, unless the offense involved a minor, including the offense under section 712-1249.6, or a firearm, including the offense under section 134-7(b),
shall not disqualify a person from working for the licensed business.
(g) A licensed business shall:
(1) Register each employee with the authority; and
(2) Notify the authority within one working day if an employee ceases to be associated with the licensed business.
(h) A person under the age of twenty-one shall not enter a licensed business; provided that a medical cannabis patient who is at least eighteen years of age may enter a medical cannabis dispensary, retail cannabis store, or medical cannabis cooperative of which the patient is a member.
(i) A licensed business shall ensure that unauthorized persons under the age of twenty-one do not enter the licensed premises; provided that the board may adopt rules to allow a medical cannabis dispensary or retail cannabis store to use a controlled, indoor entry area in the medical cannabis dispensary or retail cannabis store to verify the identification and age of persons before allowing access beyond the entry area.
(j) No licensed business shall cultivate, process, distribute, dispense, or otherwise transact business with any products containing cannabis other than those that were cultivated, processed, distributed, and taxed in accordance with this chapter and chapter B.
§A-80 Licensed premises; where. (a) Each license issued under this chapter shall authorize the operation of the licensed business only at the single place described in the license.
(b) Licensed premises shall not be located within a seven hundred fifty foot radius of an existing school, public park, or public housing project or complex.
§A-81
Cannabis businesses; labor peace agreements. (a)
Each applicant for a license to operate a cannabis business and each
holder of a license or permit to operate a cannabis business shall enter into,
maintain, and abide by the terms of a labor peace agreement. This labor peace agreement requirement shall
be an ongoing material condition of the license or permit, of which a violation
may result in denial, suspension, or revocation of the license or permit.
(b)
All applicants for an initial cannabis business license or permit shall
submit an attestation signed by the applicant and bona fide labor organization
stating that the applicant meets the requirement under subsection (a) and has
entered into, maintains, and is abiding by the terms of the labor peace agreement. All applicants for a cannabis business license
renewal or permit renewal shall submit a new labor peace agreement attestation
executed within days of the submission date of the
renewal application. An applicant's
failure to submit a timely labor peace agreement attestation shall result in a
denial of the license or permit.
(c)
The authority shall determine a schedule establishing the ongoing review
of the status and maintenance of the labor peace agreement required pursuant to
this section to assess the eligibility of a license holder or permit
holder. Upon review and findings of
unsatisfactory status or the insufficient maintenance of a labor peace
agreement, the authority shall suspend the license or permit for the sale,
cultivation, production, or manufacturing of cannabis.
(d)
For purposes of determining whether a labor organization meets the
definition of a "bona fide labor organization", the authority shall
consider each of the following as indicative, but not determinative, of a finding
that a labor organization is a bona fide labor organization:
(1) The labor organization has been recognized or certified as the bargaining representative for employees of cannabis businesses in the State;
(2) The labor organization has executed current collective bargaining agreements with cannabis businesses in the State;
(3) The labor organization has spent resources as part of current and active attempts to organize and represent employees at cannabis businesses in the State;
(4) The labor organization has filed the annual report required by title 29 United States Code section 431(b) for the three years immediately preceding each filing deadline;
(5) The labor organization has audited financial reports covering the three years immediately preceding each filing deadline;
(6) The existence of written bylaws or constitution for the three years immediately preceding each filing deadline; and
(7) The labor organization's affiliation with any national or regional association of unions, including but not limited to central labor councils.
(e)
For purposes of this section:
"Bona fide labor organization"
means a labor organization, as defined under title 29 United States Code
section 402(i), that is actively seeking to represent employees of cannabis businesses
in the State.
"Labor peace agreement" means an
agreement between a cannabis business and bona fide labor organization that, at
a minimum, protects the State's proprietary interests by prohibiting the labor
organization from engaging in picketing, work stoppages, or boycotts against
the cannabis business.
§A-82 Laboratory standards and testing. (a) No person or licensed business shall distribute, dispense, or otherwise sell cannabis or hemp unless the cannabis or hemp has been tested and shown to meet the requirements and standards established under this chapter and rules adopted pursuant to this chapter for content, contamination, and consistency.
(b) The board shall adopt rules to establish requirements and standards for the mandatory laboratory testing of cannabis and hemp that conform with the best practices generally used within the cannabis industry, including:
(1) The processes, protocols, and standards regarding the collection of samples of cannabis and hemp;
(2) Mandatory laboratory testing for cannabis flower and hemp flower that shall include testing for:
(A) Dangerous molds and mildew;
(B) Harmful microbes, including Escherichia coli and salmonella;
(C) Pesticides, fungicides, and insecticides; and
(D) THC potency, homogeneity, and cannabinoid profiles to ensure correct labeling;
(3) Mandatory laboratory testing for cannabis products and hemp extract products, except for crude hemp extract, that shall include testing for:
(A) Dangerous molds and mildew;
(B) Harmful chemicals;
(C) Harmful microbes, including Escherichia coli and Salmonella;
(D) Pesticides, fungicides, and insecticides;
(E) Residual solvents, poisons, and toxins; and
(F) THC potency, homogeneity, and cannabinoid profiles to ensure correct labeling; and
(4) Mandatory laboratory testing for crude hemp extract that shall include:
(A) Residual solvents, poisons, and toxins; and
(B) THC potency, homogeneity, and cannabinoid profiles to ensure correct labeling.
(c) A licensed business shall maintain a record of all laboratory testing that includes a description of the cannabis or hemp provided to the independent laboratory, the identity of the independent laboratory, and the results of the test.
(d) The board may adopt rules to establish other quality assurance mechanisms that may include the designation or creation of a state cannabis testing facility, creation of a secret shopper program, round-robin testing, or any other mechanism to ensure the accuracy of product testing and labeling.
§A-83 Packaging. (a) No cannabis or hemp shall be distributed, dispensed, or otherwise sold unless it is packaged in accordance with this section and rules adopted pursuant to this chapter.
(b) The board shall adopt rules to establish requirements for the packaging of cannabis and hemp; provided that the rules for the packaging of cannabis shall:
(1) Require the packaging to be opaque and certified child-resistant and resealable;
(2) Restrict packaging containing cannabis for medical use to black lettering on a white background with no pictures or graphics;
(3) Restrict packaging containing cannabis for personal adult use to black lettering on a background of a singular, solid color approved by the authority with no pictures or graphics;
(4) Restrict the use of colors, pictures, graphics, or designs on or inside packaging to ensure that packaging is not designed to appeal particularly to a person under the age of twenty-one;
(5) Require the division of each serving within a package containing multiple servings in a manner that allows consumers and medical cannabis patients to easily identify a single serving; and
(6) Prohibit packaging that imitates or resembles any existing branded consumer products, including foods and beverages, that do not contain cannabis.
(c) No licensed business shall offer, at no cost or at cost, any packaging that does not meet the requirements under this chapter or rules adopted pursuant to this chapter.
§A-84 Labeling.
(a) No cannabis or hemp shall be
distributed, dispensed, or otherwise sold unless it is labeled in accordance
with this section and rules adopted pursuant to this chapter.
(b) The board shall adopt rules to establish labeling requirements for cannabis and hemp; provided that labeling on each cannabis package shall, at a minimum, contain:
(1) A universal symbol prescribed by the authority that indicates that the package contains cannabis;
(2) The name and contact information of the cannabis cultivator or cannabis processor who produced the cannabis;
(3) The results of sampling, testing, and analysis conducted by an independent laboratory;
(4) A list of pharmacologically active ingredients and possible allergens;
(5) The number of servings in the package if there are multiple servings;
(6) The amount of cannabinoids in the package and in each serving as expressed in absolute terms and as a percentage of volume;
(7) The appellation of origin;
(8) If the product is medical cannabis, the statement "For medical use only"; and
(9) The following statement in bold print, including capitalization: "This product has not been analyzed or approved by the FDA. There is limited information on the side effects of using this product, and there may be associated health risks. Cannabis use during pregnancy and breastfeeding may pose potential harms. It is against the law to drive when under the influence of this product. KEEP THIS PRODUCT AWAY FROM CHILDREN.".
(c) For the purposes of this section, "universal symbol" means an image developed by the authority that indicates that a container, package, or product contains cannabis.
§A-85 Cannabis and cannabis product standards. (a) The board shall adopt rules to establish requirements, restrictions, and standards regarding the types, ingredients, and designs of cannabis, including potency limits and limits on servings per package; provided that each cannabis product shall be registered with the authority on forms prescribed by the authority.
(b) Edible cannabis products shall not be designed to resemble commercially available candy or other products marketed to children. The words "candy" and "candies" shall not be used on packaging, labeling, advertising, product lists, or product menus. Edible cannabis products shall not be in the shape of or contain a depiction of a human, animal, or fruit, or a shape or depiction that bears the likeness or contains characteristics of a realistic or fictional human, animal, or fruit, including artistic, caricature, or cartoon renderings.
(c) Except for a cannabis product intended for external topical application to the skin or hair, no person shall distribute, dispense, sell, or offer for sale any cannabis product intended to be introduced via non-oral routes of entry to the body, including use in eyes, ears, and nasal cavities.
§A-86 Advertising; marketing; branding. (a) The board shall adopt rules to establish requirements for advertising, marketing, and branding of cannabis or hemp, and any licensed business, that include at a minimum:
(1) A prohibition on advertising, marketing, and branding in a manner that is deemed to be deceptive, false, or misleading;
(2) A prohibition or restriction on advertising, marketing, and branding through or on a certain medium, method, or location, as determined by the authority, to minimize advertising, marketing, and brand exposure of licensed businesses to a person under the age of twenty-one;
(3) A prohibition on advertising, marketing, and branding that utilizes statements, designs, representations, pictures, or illustrations that portray anyone under the age of twenty-one;
(4) A prohibition on advertising, marketing, and branding, including mascots, cartoons, candies, toys, fruits, brand sponsorships, and celebrity endorsements, that is deemed to appeal to a person under the age of twenty-one;
(5) A prohibition on advertising, marketing, and branding, including statements by a licensed business, that makes any false or misleading statements concerning other licensed businesses and the conduct and products of the other licensed businesses;
(6) A prohibition on advertising, marketing, and branding through certain identified promotional items as determined by the authority, including giveaways, coupons, samples, prizes, or "free", "donated", or "premium" cannabis or restricted cannabinoid products;
(7) A prohibition on advertising, marketing, and branding by a licensed business that asserts its products are safe, other than labeling required pursuant to this chapter or rules adopted pursuant to this chapter;
(8) A reasonable restriction on timing and use of illuminated external signage, which shall comply with any other applicable provisions of law, including local ordinances and requirements, and a prohibition on neon signage;
(9) A requirement that any website or social media account of a licensed business shall verify that the entrant is at least twenty-one years of age;
(10) A prohibition on the use of unsolicited pop-up advertisements on the Internet;
(11) A requirement that all advertising, marketing, and branding materials for cannabis or hemp contain a standard health warning developed by the authority in consultation with the department of health; and
(12) A requirement that all advertising, marketing, and branding materials for cannabis accurately and legibly identify the licensed business responsible for its content, by adding, at a minimum, the licensed business's name and license number.
(b) No person, other than the holder of a license or permit issued pursuant to this chapter or rules adopted pursuant to this chapter or a person who provides professional services related to a licensed business, shall advertise any cannabis or services related to cannabis in the State.
(c) No person shall place or maintain, or cause to be placed or maintained, any sign or other advertisement for a business or product related to cannabis, in any form or through any medium whatsoever, within seven hundred fifty feet of the real property comprising of a school, public park, or public housing project or complex.
§A-87 Signage. The board shall adopt rules to establish requirements for signage at the licensed premises that shall, at a minimum, require that:
(1) All cannabis businesses that are open to the public conspicuously post a notice at each entry to all licensed premises that persons under the age of twenty-one are not allowed on the licensed premises unless they are a medical cannabis patient who is at least eighteen years of age;
(2) All cannabis businesses that are open to the public conspicuously post a sign in or about the licensed premises notifying all customers and other persons of the dangers of, and possible sanctions that may be imposed for, operating a vehicle under the influence of cannabis;
(3) All cannabis businesses that are open to the public conspicuously post a sign in or about the licensed premises notifying all customers and other persons that the possession and sale of cannabis is illegal under federal law and a person is subject to federal law while traveling interisland; and
(4) Every license and permit issued and in effect under this chapter shall at all times be conspicuously posted to view, convenient for inspection, on the licensed premises.
§A-88 Seed-to-sale tracking system. (a) The authority shall establish, maintain, and control a seed-to-sale tracking system that shall have real-time, twenty-four-hour access to the data of all licensed businesses. The board shall adopt rules pursuant to this chapter to establish procedures and requirements for the seed-to-sale tracking system.
(b) The seed-to-sale tracking system shall collect data, including:
(1) The total amount of cannabis in possession of all cannabis businesses from either the seed or immature plant state, including all plants that are derived from cuttings or cloning, until the cannabis is sampled, dispensed, or destroyed;
(2) The total amount of cannabis products and medical cannabis products inventory, as appropriate, including the equivalent physical weight of cannabis that is used to produce the products;
(3) The amount of waste produced by each plant at harvest; and
(4) The transport of cannabis between cannabis businesses, including tracking the quantity and type of cannabis, the identity of the person transporting the cannabis, and the make, model, and license number of the vehicle being used for the transport.
(c) The procurement of the seed-to-sale tracking system established pursuant to this section shall be exempt from chapter 103D; provided that:
(1) The authority shall publicly solicit at least three proposals for the seed-to-sale tracking system; and
(2) The selection of the seed-to-sale tracking system shall be approved by the board and chief information officer.
(d) Notwithstanding any other provision of this section to the contrary, if the authority's seed-to-sale tracking system is inoperable, as an alternative to requiring a cannabis business to temporarily cease operations, the authority may implement an alternate tracking system that will enable a cannabis business to operate on a temporary basis.
(e) A cannabis business shall purchase, operate, and maintain a computer software tracking system that shall interface with the authority's seed-to-sale tracking system established pursuant to subsection (a) and allow each cannabis business to submit to the authority any required data.
§A-89 Violations; penalties. (a) In addition to any other penalties allowed by law, any person who violates this chapter or rules adopted pursuant to this chapter shall be fined no more than $1,000 for each separate violation. Unless otherwise provided by applicable law, each day on which a violation occurs or continues shall be counted as a separate violation.
(b) Upon the authority's determination to impose an administrative penalty on a person pursuant to subsection (a), the authority shall provide the person with written notice of the administrative penalty and the basis for the administrative penalty. Any notice of an administrative penalty may be accompanied by a cease-and-desist order or corrective action order. The violation of the cease-and-desist order or corrective action order shall constitute a further violation of this chapter.
(c) Any person aggrieved by the imposition of an administrative penalty may request a contested case hearing pursuant to chapter 91. To request a contested case hearing, the person shall submit a written request to the board within thirty calendar days of the date of the written notice. Appeal to the circuit court under section 91-14, or any other applicable statute, shall only be taken from the board's final order pursuant to a contested case.
(d) Any action taken to recover, collect, or enforce the penalty provided for in this section shall be considered a civil action. For any judicial proceeding to recover or collect an administrative penalty imposed pursuant to subsection (a) or to enforce a cease-and-desist order or corrective action order issued pursuant to subsection (b), the authority 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 a request;
(3) The administrative penalty, cease-and-desist order, or corrective action order was imposed on the person; and
(4) The penalty remains unpaid, or the order was not complied with.
(e) All monetary penalties imposed pursuant to this chapter shall be paid by the person to the authority in the form required by the authority. All monetary penalties paid to the authority pursuant to this chapter shall be deposited into the cannabis regulation, nuisance abatement, and law enforcement special fund established in section A-17.
§A-90 License; permit; suspension; revocation. (a) In addition to any other actions authorized by law, the board may suspend or revoke any license or permit issued by the authority or board under this chapter or rules adopted pursuant to this chapter for violating this chapter, rules adopted pursuant to this chapter, chapter B, or for any good cause, including:
(1) Procuring a license or permit through fraud, misrepresentation, or deceit;
(2) Professional misconduct, gross carelessness, or manifest incapacity;
(3) False, fraudulent, or deceptive advertising;
(4) Any other conduct constituting fraudulent or dishonest dealings;
(5) Failure to comply with an order from the authority or board; and
(6) Making a false statement on any document submitted or required to be filed by this chapter, including furnishing false or fraudulent material information in any application.
(b) The board shall adopt rules to establish procedures and standards for the suspension and revocation of a license or permit.
(c) If the authority determines that conduct by a licensed business warrants suspension or revocation, the authority shall refer the matter to the board with the authority's findings. Upon the board's determination to suspend or revoke a license or permit, the board shall provide the licensed business with written notice and order describing the basis for the suspension or revocation.
(d) Any person aggrieved by the board's suspension or revocation determination may request a contested case hearing pursuant to chapter 91. To request a contested case hearing, the person shall submit a written request to the board within thirty calendar days of the date of the written notice and order of the suspension or revocation. Appeal to the circuit court under section 91-14, or any other applicable statute, shall only be taken from the board's final order pursuant to a contested case.
(e) A licensed business whose license or permit has been suspended shall not, for the duration of the period of suspension, engage in any activities relating to the operation of the licensed business, including:
(1) Distributing, dispensing, selling, transferring, transporting, or otherwise disposing of any cannabis or hemp owned by or in the possession of the licensed business; or
(2) Processing any cannabis or hemp.
(f) A person whose license or permit has been revoked shall immediately cease all activities relating to the operation of the licensed business and ensure that all cannabis or hemp owned by or in the possession of the person pursuant to that license or permit shall be forfeited to the authority for destruction pursuant to section A-92.
(g) If any license or permit is revoked or otherwise terminated by the board, any fees paid for the license or permit shall be forfeited to the State.
§A-91 Relinquishment no bar to jurisdiction. The forfeiture, nonrenewal, surrender, voluntary relinquishment, or abandonment of a license or permit issued by the authority or board under this chapter or rules adopted pursuant to this chapter shall not bar jurisdiction by the authority or board to proceed with any investigation, action, or proceeding to restrict, condition, limit, suspend, or revoke the license or permit, or otherwise penalize a licensed business or an individual licensee, or both.
§A-92 Forfeiture; destruction. (a) In addition to any other actions authorized by law, the board may order the forfeiture and destruction of all or a portion of the cannabis or hemp, owned by or in the possession of a licensed business, if it makes a determination that the cannabis or hemp is not authorized by, or is in violation of, this chapter.
(b) The board shall adopt rules to establish procedures and standards for the forfeiture and destruction of cannabis or hemp.
(c) If the authority determines that a violation by a licensed business warrants forfeiture and destruction of all or a portion of the cannabis or hemp owned by or in the possession of that licensed business, the authority shall refer the matter to the board with its findings. Upon the board's determination to order the forfeiture and destruction of cannabis or hemp, the board shall provide the licensed business with a written notice and order describing the basis for the forfeiture and destruction, a description of the cannabis or hemp subject to forfeiture and destruction, and a timeframe in which the cannabis or hemp must be forfeited.
(d) A licensed business subject to an order directing the destruction of any cannabis or hemp owned by or in the possession of the licensed business shall forfeit the cannabis or hemp described in the order to the authority for destruction within the timeframe described in the order.
(e) Any person aggrieved by the board's forfeiture and destruction determination may request a contested case hearing pursuant to chapter 91. To request a contested case hearing, the person shall submit a written request to the board within thirty calendar days of the date of the written notice and order of the forfeiture and destruction. Appeal to the circuit court under section 91-14, or any other applicable statute, shall only be taken from the board's final order pursuant to a contested case.
(f) If the authority is notified by a law enforcement agency that there is a pending investigation of a licensed business subject to an order for forfeiture and destruction of cannabis or hemp, the authority shall not destroy any cannabis or hemp of that licensed business until the destruction is approved by the law enforcement agency.
§A-93 Administrative holds. (a) In addition to any other actions authorized by law, the authority may impose an administrative hold on a licensed business if there are reasonable grounds to believe the licensed business has committed or is committing a violation of this chapter or rules adopted pursuant to this chapter.
(b) The authority shall provide a licensed business subject to an administrative hold with written notice of the imposition of that hold, which shall:
(1) Include a statement of the basis for the administrative hold;
(2) Detail the cannabis or hemp subject to the administrative hold;
(3) Describe any operational restrictions to be placed on the licensed business during the duration of the administrative hold; and
(4) Indicate actions that must be taken by the licensed business as a result of the administrative hold.
(c) An administrative hold shall take effect at the time that the written notice is provided to the licensed business.
(d) A licensed business subject to an administrative hold shall physically segregate, in a limited access area approved by the authority, any cannabis or hemp subject to the administrative hold from any other cannabis or hemp not subject to the administrative hold.
(e) For the duration of the administrative hold, the licensed business shall not sell, transfer, transport, distribute, dispense, dispose of, or destroy any cannabis or hemp subject to the administrative hold, but may, as applicable, cultivate or otherwise maintain any cannabis plants or hemp plants subject to the administrative hold unless specifically restricted by the authority.
(f) A licensed business subject to an administrative hold, for the duration of the administrative hold, shall maintain the licensed premises and may otherwise continue to operate the licensed business in compliance with this chapter, rules adopted pursuant to this chapter, and the provisions of the administrative hold. Except as specifically restricted by the authority, the licensed business may, for the duration of the administrative hold, cultivate, process, distribute, or dispense any cannabis or hemp not subject to the administrative hold pursuant to its license or permit.
(g) The authority may terminate an administrative hold at any time following the imposition of the administrative hold; provided that an administrative hold under this section shall not be imposed for a period exceeding thirty business days from the date the written notice is issued. The authority shall provide the licensed business with written notice of the termination of an administrative hold.
§A-94 Liability to the State under this chapter as debt. (a) Any liability to the State under this chapter shall constitute a debt to the State. Once a statement naming a licensed business as a debtor is recorded, registered, or filed, the debt shall constitute a lien on all commercial property owned by the licensed business in the State and shall have priority over an encumbrance recorded, registered, or filed with respect to any property.
(b) If a lien imposed by subsection (a) is properly recorded, registered, or filed, and three hundred sixty-five calendar days have elapsed from the date of recording, registration, or filing with no response or action by the debtor against whom the lien was recorded, registered, or filed, the executive director may apply to the circuit court to have the lien converted into a civil judgment. The circuit court shall issue a civil judgment for an amount equivalent to the value of the lien.
§A-95 Unauthorized access to a restricted area; criminal offense. (a) No person shall intentionally or knowingly enter or remain in a restricted area unless the person is:
(1) An individual licensee or registered employee of the licensed business;
(2) A government employee or official acting in the person's official capacity; or
(3) Escorted by an individual licensee or registered employee of the licensed business at all times while in the restricted area; provided that:
(A) The person is at least twenty-one years of age, as verified by a valid government-issued identification card;
(B) The person is only permitted within those portions of the restricted area as necessary to fulfill the person's purpose for entering;
(C) The person is only permitted within the restricted area during the times and for the duration necessary to fulfill the person's purpose for entering; and
(D) The licensed business shall keep a photographic copy of the valid government-issued identification card and an accurate record of the date and times upon the person's entering and exiting the restricted area, the purpose for entering, and the identity of the escort.
(b) No individual licensee or registered employee of the licensed business with control over or responsibility for the licensed premises shall intentionally or knowingly allow another person to enter or remain in a restricted area, unless that person is permitted to enter and remain as specified in subsection (a).
(c) Any person who violates this section shall be guilty of a petty misdemeanor.
§A-96 Diversion from a licensed business; criminal
offense. (a) A person commits the offense of diversion
from a licensed business if the person is a licensed business or an operator,
agent, or employee of a licensed business and intentionally or knowingly
diverts to the person's own use or other unauthorized or illegal use, or takes,
makes away with, or conceals, with intent to divert to the person's own use or
other unauthorized or illegal use, any cannabis under the person's possession,
care, or custody as a licensed business or an operator, agent, or employee of a
licensed business.
(b) Any person who violates this section shall be guilty of a class C felony.
§A-97 Alteration or falsification of licensed business records; criminal offense. (a) A person commits the offense of alteration or falsification of licensed business records if the person intentionally or knowingly:
(1) Makes or causes a false entry in licensed business records;
(2) Alters, deletes, destroys, erases, obliterates, or removes a true entry in licensed business records;
(3) Omits to make a true entry in licensed business records in violation of a duty that the person knows to be imposed upon the person by law or by the nature of the person's position; or
(4) Prevents the making of a true entry or causes the omission of a true entry in licensed business records.
(b) Alteration or falsification of licensed business records shall be a class C felony.
(c) For the purposes of this section:
"Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or other similar capabilities.
"Information" includes data, text, images, sounds, codes, computer programs, software, or databases.
"Licensed business records" means any inventory tracking records and other records maintained by a licensed business that are required by law to be created and retained or provided to the authority or department of taxation.
"Record" means information that is written or printed or that is stored in an electronic or other medium and is retrievable in a perceivable form.
§A-98 Unlawful restricted cannabinoid product retailing. (a) A person required to obtain a restricted cannabinoid product permit commits the offense of unlawful restricted cannabinoid product retailing if the person recklessly fails to obtain a valid permit required under section A-119 and recklessly distributes, sells, or offers for sale any restricted cannabinoid product or possesses, stores, or acquires any restricted cannabinoid product for the purpose of distribution, sale, or offering for sale.
(b) Unlawful restricted cannabinoid product retailing shall be a petty misdemeanor; provided that any offense under subsection (a) that occurs within five years of a prior conviction for unlawful restricted cannabinoid product retailing shall be a misdemeanor.
§A-99 Law enforcement access to licensed business records. Notwithstanding any other law, a licensed business shall disclose information, documents, tax records, and other records regarding the licensed business's operation, upon request, to any federal, state, or county agency engaged in the administrative regulation, criminal investigation, or prosecution of violations of applicable federal, state, or county laws or regulations related to the operations or activities of a licensed business.
PART VII. CANNABIS BUSINESSES; AUTHORIZED
§A-111 Independent laboratory; license required. (a) An independent laboratory license shall authorize the sampling, limited possession, and testing of cannabis and hemp pursuant to this chapter and rules adopted pursuant to this chapter.
(b) The board shall adopt rules for the licensure, operations, and oversight of independent laboratories, including protocols for the sampling, testing, and analysis of cannabis and hemp. The rules shall address sampling and analysis related to cannabinoid profiles and biological and chemical contaminants, including terpenoids, pesticides, plant growth regulators, metals, microbiological contaminants, mycotoxins, and residual solvents introduced through cultivation of cannabis plants or hemp plants and post-harvest processing and handling of cannabis, hemp, or any related ingredients.
(c) An independent laboratory shall report any results indicating contamination to the authority within seventy-two hours of identification of contamination.
(d) No independent laboratory shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, management agreement, shared parent companies or affiliated organizations, or any other means, in any other type of licensed business authorized by this chapter or rules adopted pursuant to this chapter.
(e) No other licensed business shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, management agreement, shared parent companies or affiliated organizations, or any other means, in an independent laboratory.
(f) No individual who possesses an interest in or is a laboratory agent employed by an independent laboratory, and no immediate family member of that individual, shall possess an interest in or be employed by any other licensed business authorized by this chapter or rules adopted pursuant to this chapter.
(g) No independent laboratory, laboratory agent, or employee of an independent laboratory shall receive direct or indirect compensation, other than reasonable contractual fees to conduct testing, from any entity for which it is conducting testing pursuant to this chapter or rules adopted pursuant to this chapter.
(h) An independent laboratory shall:
(1) Register each laboratory agent with the authority; and
(2) Notify the authority within one working day if a laboratory agent ceases to be associated with the independent laboratory.
(i) No one who has been convicted of a felony drug offense shall be a laboratory agent or an employee of an independent laboratory. The authority shall conduct criminal history record checks of laboratory agents and employees of an independent laboratory in accordance with section 846-2.7, and the board may adopt rules to establish standards and procedures to enforce this subsection.
(j) A laboratory agent shall not be subject to arrest, prosecution, civil penalty, sanctions, or disqualifications, and shall not be subject to seizure or forfeiture of assets under laws of the State, for actions taken under the authority of an independent laboratory, including possessing, processing, storing, transferring, or testing cannabis; provided that the laboratory agent is:
(1) Registered with the authority; and
(2) Acting in accordance with all the requirements under this chapter and rules adopted pursuant to this chapter.
§A-112 Cannabis cultivator; license required. (a) A cannabis cultivator license shall authorize:
(1) The acquisition and cultivation of cannabis plants, seeds, cuttings, or clones; and
(2) The distribution of cannabis plants and cannabis flower to:
(A) A cannabis cultivator;
(B) A cannabis processor;
(C) A medical cannabis dispensary; and
(D) A retail cannabis store.
(b) A cannabis cultivator shall track the cannabis it cultivates from acquisition to testing, distribution, or destruction.
(c) A cannabis cultivator shall maintain a record of all samples provided to an independent laboratory, the identity of the independent laboratory, and the testing results.
(d) The maximum size of plant canopy the board may authorize for each cannabis cultivator license shall be two thousand square feet of plant canopy for indoor cultivations and five thousand square feet of plant canopy for outdoor cultivations.
(e) A cannabis cultivator shall comply with all laws and rules applicable to an agricultural operation, including laws and rules regarding pesticide use, water use, and the environment, and all other requirements and standards as prescribed by rules adopted by the board. The requirements and standards prescribed by the board shall be guided by sustainable farming principles and practices, such as organic, regenerative, and integrated pest management models to the extent possible; limit the use of pesticides, whenever possible; and encourage the use of renewable energies or resources.
§A-113 Cannabis processor; license required. (a) A cannabis processor license shall authorize the acquisition, possession, and processing of cannabis into cannabis products, and distribution of cannabis to:
(1) A cannabis processor;
(2) A medical cannabis dispensary; and
(3) A retail cannabis store.
(b) A cannabis processor shall track the cannabis it processes from acquisition to testing, distribution, or destruction.
(c) A cannabis processor shall maintain a record of all samples provided to an independent laboratory, the identity of the independent laboratory, and the testing results.
(d) A cannabis processor shall calculate the equivalent physical weight of the cannabis flower that is used to process the cannabis product and shall make the equivalency calculations available to the authority, consumer, and medical cannabis patient.
§A-114 Medical cannabis dispensary; license required. (a) A medical cannabis dispensary license shall authorize:
(1) The acquisition and possession of cannabis;
(2) The distribution of cannabis to a retail cannabis store or medical cannabis dispensary; and
(3) The dispensing of cannabis from the licensed premises only to medical cannabis patients or their caregivers.
(b) A medical cannabis dispensary shall track all cannabis it possesses from acquisition to testing, distribution, dispensing, or destruction.
(c) A medical cannabis dispensary shall maintain a record of all samples provided to an independent laboratory, the identity of the independent laboratory, and the testing results.
(d) Notwithstanding any other law to the contrary, a medical cannabis dispensary shall not be subject to the prescription requirement of section 329-38 or the board of pharmacy licensure or regulatory requirements under chapter 461.
§A-115 Retail cannabis store; license required. (a) A retail cannabis store license shall authorize:
(1) The acquisition and possession of cannabis;
(2) The distribution of cannabis to a retail cannabis store or medical cannabis dispensary;
(3) The dispensing of adult-use cannabis from the licensed premises to consumers; and
(4) The dispensing of cannabis from the licensed premises to medical cannabis patients or their caregivers.
(b) A retail cannabis store shall ensure adequate access and product supply to accommodate medical cannabis patients. The board shall adopt rules to implement this section, including requirements for:
(1) Priority access or business hours, or both, for medical cannabis patients; and
(2) Product supply to ensure medical cannabis patients have access to the cannabis used to treat their debilitating medical condition.
(c) A retail cannabis store shall track all cannabis it possesses from acquisition to testing, distribution, dispensing, or destruction.
(d) A retail cannabis store shall maintain a record of all samples provided to an independent laboratory, the identity of the independent laboratory, and the testing results.
(e) Notwithstanding any other law to the contrary, a retail cannabis store shall not be subject to the prescription requirement of section 329-38 or the board of pharmacy licensure or regulatory requirements under chapter 461.
§A-116 Craft cannabis dispensary; license required. (a) A craft cannabis dispensary license shall authorize the limited:
(1) Acquisition and cultivation of cannabis plants, seeds, cuttings, or clones, and possession and processing of adult-use cannabis;
(2) Distribution of adult-use cannabis to:
(A) A cannabis processor;
(B) A medical cannabis dispensary; and
(C) A retail cannabis store; and
(3) Dispensing of adult-use cannabis from the licensed premises to consumers.
(b) A craft cannabis dispensary shall distribute only its own cannabis.
(c) A craft cannabis dispensary shall dispense only its own cannabis directly to consumers.
(d) A craft cannabis dispensary shall not process, distribute, or dispense medical cannabis products.
(e) No craft cannabis dispensary shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, management agreement, shared parent companies or affiliated organizations, or any other means, in any other licensed business authorized by this chapter or rules adopted pursuant to this chapter, including another craft cannabis dispensary.
(f) No licensed business shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, management agreement, shared parent companies or affiliated organizations, or any other means, in any craft cannabis dispensary.
(g) A craft cannabis dispensary shall track all cannabis it possesses from acquisition to testing, distribution, dispensing, or destruction.
(h) A craft cannabis dispensary shall maintain a record of all samples provided to an independent laboratory, the identity of the independent laboratory, and the testing results.
(i) The size, scope, and eligibility criteria of a craft cannabis dispensary shall be determined by rules adopted pursuant to this chapter; provided that the granting of a craft cannabis dispensary license shall promote social equity applicants as provided for in this chapter and small farms with a focus on indigenous crops or farming practices.
§A-117 Medical cannabis cooperative; license required. (a) A medical cannabis cooperative license shall authorize the cultivation, possession, and processing of cannabis for medical use only on the licensed premises, and limited dispensing of medical cannabis only by and between the members of the medical cannabis cooperative.
(b) A medical cannabis cooperative shall be comprised of up to five qualifying patients. A medical cannabis cooperative member shall be a natural person and shall not be a member of more than one medical cannabis cooperative. A qualifying out‑of-state patient shall not be a member of a medical cannabis cooperative.
(c) A medical cannabis cooperative shall not acquire, cultivate, possess, or process cannabis for medical use that exceeds the quantities allowed for each of its members combined.
(d) A medical cannabis cooperative shall not dispense any cannabis for medical use to any of its members that exceeds the quantities allowed for that member.
(e) Each medical cannabis cooperative member shall designate the licensed premises as their grow site and shall not cultivate cannabis on any other premises.
(f) No medical cannabis cooperative shall operate on the same premises as any other licensed business, including another medical cannabis cooperative.
(g) No medical cannabis cooperative member shall have a direct or indirect financial or controlling interest in any other licensed business authorized by this chapter or rules adopted pursuant to this chapter, including another medical cannabis cooperative.
(h) No medical cannabis cooperative shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, management agreement, shared parent companies or affiliated organizations, or any other means, in any other licensed business authorized by this chapter or rules adopted pursuant to this chapter, including another medical cannabis cooperative.
(i) No other licensed business authorized by this chapter or rules adopted pursuant to this chapter shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, management agreement, shared parent companies or affiliated organizations, or any other means, in any medical cannabis cooperative.
(j) The board shall adopt rules related to medical cannabis cooperatives, including the size and scope of medical cannabis cooperatives and other measures designed to incentivize the use and licensure of medical cannabis cooperatives.
§A-118 Other licenses authorized. The board may establish additional license types and grant temporary licenses of any type specified in this part, in accordance with conditions set forth in rules adopted pursuant to this chapter.
§A-119 Special use permits. (a) The board may issue permits for carrying out activities consistent with the policy and purpose of this chapter with respect to cannabis and hemp.
(b) The board may adopt rules to implement this section, including reasonable fees, eligibility criteria, types of permits, and time limits for any permit issued. The types of permits may include:
(1) Special event and social consumption permits;
(2) Trucking permits to allow for the trucking or transportation of cannabis by a person other than a licensed business; and
(3) Restricted cannabinoid product permits that allow for the distribution, dispensing, or sale of a restricted cannabinoid product.
PART
VIII. HEMP
§A-131 Restricted cannabinoid product list. (a) The authority shall create and maintain a list of restricted cannabinoid products, derived from hemp, that shall only be sold pursuant to a permit issued by the board under section A-119; provided that the authority may establish an amount of any restricted cannabinoid that may be allowed in a hemp product; provided further that the authority may prohibit any restricted cannabinoid product from being distributed, sold, or offered for sale entirely. The authority shall publish and make available the list of restricted cannabinoid products.
(b) The board shall adopt rules establishing a process and procedure for the authority to create and maintain the restricted cannabinoid product list; provided that the procedures shall include at a minimum:
(1) Criteria based on public health and safety for the authority to determine what constitutes a restricted cannabinoid product;
(2) Criteria based on public health and safety for the authority to establish allowable limits for restricted cannabinoids in hemp products; provided further that the authority may prohibit the restricted cannabinoid entirely; and
(3) A process for petitioning the board to add or remove a cannabinoid or restricted cannabinoid product from the restricted cannabinoid product list.
(c) The restricted cannabinoid product list shall not include hemp extract products that are:
(1) Intended only for external topical application to the skin or hair; and
(2) Tinctures; provided that the tincture does not contain more than thirty servings per bottle, one milligram of THC per serving, and thirty milligrams of THC per bottle; provided further that tinctures with over five milligrams of THC per bottle shall not be sold to persons under twenty-one years of age.
(d) For the purposes of this section, "tincture" means a liquid hemp extract product consisting of hemp extract dissolved in glycerin or a plant-based oil, that is intended for oral consumption in small amounts using a dropper, and that has a total volume of one ounce or less.
§A-132 Hemp cultivator; license required. (a) No person shall cultivate hemp except in accordance with this section. Cultivating hemp without a license to produce hemp issued by the United States Secretary of Agriculture pursuant to title 7 United States Code section 1639q shall be considered unlicensed cultivation of cannabis.
(b) Notwithstanding any law to the contrary, it shall be legal for a person to cultivate hemp only if they hold a license to produce hemp, issued by the United States Secretary of Agriculture pursuant to title 7 United States Code section 1639q; provided that hemp shall not be:
(1) Cultivated within three hundred feet of pre-existing real property comprising a playground, child care facility, or school;
(2) Cultivated within one hundred feet of any pre-existing house, dwelling unit, residential apartment, or other residential structure that is not owned or controlled by the license holder;
(3) Cultivated, stored, or comingled with cannabis; and
(4) Cultivated on any premises licensed under this chapter, except on the licensed premises of a hemp extract processor.
(c) A hemp cultivator may distribute or sell hemp flower; provided that the hemp flower:
(1) Has passed all compliance testing required by the United States Department of Agriculture; and
(2) Meets all other requirements for selling hemp, including testing, packaging, and labeling, as provided in this chapter and rules adopted pursuant to this chapter.
(d) A hemp cultivator licensed by the United States Department of Agriculture to produce hemp in the State shall comply with all regulations established by the United States Department of Agriculture, including all inspection, sampling, and compliance testing requirements.
(e) The board shall adopt rules pursuant to this chapter to implement this section; provided that the rules adopted by the board shall not require pre-harvest inspections, pre-harvest sampling, or pre-harvest compliance testing with respect to the cultivation of hemp as regulated by the United States Department of Agriculture.
(f) In addition to any other penalties allowed by law, any person who violates this section or any rule adopted pursuant to this section shall be fined no more than $1,000 for each separate violation. Each day on which a violation occurs or continues shall be counted as a separate violation.
(g) Any notice of violation of this section may be accompanied by a cease-and-desist order. The violation of the cease-and-desist order shall constitute a further violation of this section.
(h) Any person aggrieved by a notice of violation issued under this section may request a contested case hearing pursuant to chapter 91. To request a contested case hearing, the person shall submit a written request to the board within thirty calendar days of the date of the notice of violation. Appeal to the circuit court under section 91-14, or any other applicable statute, shall only be taken from the board's final order pursuant to a contested case.
(i) Any action taken to recover, collect, or enforce the administrative penalty provided for in this section shall be considered a civil action. For any judicial proceeding to recover an administrative penalty imposed pursuant to subsection (f) or to enforce a cease-and-desist order issued pursuant to subsection (g), the authority 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 a request;
(3) The administrative penalty or cease-and-desist order was imposed on the person cultivating hemp; and
(4) The penalty remains unpaid, or there was no compliance with the order.
§A-133 Hemp extract processor; license required. (a) No person shall process hemp into a hemp extract product without a hemp extract processor license issued pursuant to this chapter and any rules adopted pursuant to this chapter. This section shall not apply to processing hemp into an industrial hemp product.
(b) A hemp extract processor license shall authorize the acquisition, possession, and processing of hemp into hemp extract products and the distribution of hemp extract products in compliance with this chapter.
(c) A hemp extract processor license shall not authorize the distribution, dispensing, or sale of any cannabis or restricted cannabinoid product.
(d) Hemp shall be processed into a hemp extract product within an indoor facility or within an agricultural building or structure pursuant to section 46-88; provided that the hemp is processed without the use of heat, volatile compounds, or gases under pressure except for carbon dioxide (CO2). Hemp extract processors shall comply with all applicable state laws and county ordinances, including zoning ordinances, building codes, and fire codes.
§A-134 Hemp products. (a) The board shall adopt rules pursuant to this chapter to establish requirements, restrictions, and standards regarding the types, ingredients, and designs of hemp products, including potency limits and cannabinoid limits on hemp extract products.
(b) No person shall distribute, sell, or offer for sale crude hemp extract to any person; provided that crude hemp extract may be sold only to a hemp extract processor with a valid license issued by the authority pursuant to section A-133 or equivalent authorization from a regulatory agency in another jurisdiction.
(c) No person shall distribute, sell, or offer for sale any restricted cannabinoid product unless that person holds a permit to distribute, sell, or offer for sale restricted cannabinoid products issued by the board pursuant to section A‑119. A permit shall not be required to sell hemp products that are not restricted cannabinoid products.
(d) No person shall distribute, sell, or offer for sale any hemp extract product used to aerosolize for respiratory routes of delivery, such as an inhaler, a vape pen, or other device designed for that purpose.
(e) Except for a hemp extract product intended for external topical application to the skin or hair, no person shall distribute, sell, or offer for sale any hemp extract product intended to be introduced via non-oral routes of entry to the body, including use in eyes, ears, and nasal cavities.
(f) This section shall not apply to industrial hemp products; provided that any industrial hemp products shall comply with all other applicable laws, rules, and regulations.
PART IX. SOCIAL EQUITY
§A-141 Definitions. As used in this part, unless the context otherwise requires, "social equity applicant" means an applicant for licensure or permit under this chapter, or for a grant pursuant to the social equity program established under section A-142, who is a resident of the State that meets one or more of the following criteria:
(1) An applicant with at least fifty-one per cent ownership and control by one or more individuals who have resided for at least five of the preceding ten years in a disproportionately impacted area;
(2) For applicants with a minimum of ten full-time employees, an applicant with at least fifty-one per cent of current employees who currently reside in a disproportionately impacted area; or
(3) An applicant satisfying any other criteria determined by the board and adopted as rules under this chapter.
§A-142 Social equity program. (a) The board shall establish a social equity program for the purposes of providing grants to social equity applicants.
(b) The authority, through the chief equity officer or executive director, shall have the power to:
(1) Provide grants to assist social equity applicants in gaining entry to, and successfully operating in, the State's regulated cannabis industry, including grants for financial assistance, industry training, and technical assistance;
(2) Provide grants to assist social equity applicants that are community-based organizations for the purpose of developing, implementing, and supporting nonprofit projects, services, and programs that address community needs of disproportionately impacted areas, including child care, after-school and summer programs, and programs that build youth resiliency;
(3) Provide staff, administration, and related support required to administer this section;
(4) Enter into agreements that set forth terms and conditions of the grants, accept funds or grants, and cooperate with private entities and state or county agencies to carry out the purposes of this section;
(5) Fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses, including application fees, commitment fees, program fees, financing charges, and publication fees in connection with the social equity program;
(6) Take whatever actions are necessary or appropriate to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of grants provided under this section, including the ability to recapture funds if the grant recipient is found to be noncompliant with the terms and conditions of the grant agreement;
(7) Establish application, notification, contract, and other forms and procedures deemed necessary and appropriate to implement the social equity program; and
(8) Utilize vendors or contract work to carry out the purposes of this part.
(c) The board shall adopt rules pursuant to this chapter to implement this part, including:
(1) Additional requirements and qualifications for determining eligibility of social equity applicants for grants;
(2) Preferences and priorities in determining eligibility for grants;
(3) Conditions, consistent with the purpose of this chapter, for the awarding of grants;
(4) Requirements for the inspection at reasonable hours of facilities, books, and records of a social equity applicant or grant recipient;
(5) Requirements for the submission of progress and final reports by grant recipients; and
(6) Appropriate management counseling and monitoring of business activities for grant recipients.
(d) The authority shall submit an annual report on the social equity program to the governor and legislature no later than twenty days prior to the convening of each regular session. The report shall detail the outcomes and effectiveness of this section during the prior fiscal year, including the following:
(1) The number of social equity applicants who received financial assistance under this section;
(2) The amount of grants awarded in the aggregate;
(3) The location of the project engaged in by each grant recipient; and
(4) Grants awarded to child care, after-school and summer programs, and programs that build youth resiliency by county and program outcomes.
(e) The authority shall include engagement with individuals with limited English proficiency as part of the social equity program.
(f) The authority shall make available to the public its rubric for determining eligibility for social equity grants.
§A-143 Social equity grants; standards and conditions. (a) Grants made under this part shall be awarded on a competitive and annual basis. Grants made under this part shall further and promote the goals of the social equity program.
(b) Applications for grants shall be made to the authority and contain information as shall be required by rules adopted pursuant to this chapter. At a minimum, an applicant shall show:
(1) The name of the applying business entity or individual;
(2) That the applicant meets the criteria for a social equity applicant;
(3) The intended use of the grant; and
(4) The target group or community to be benefited by the grant.
(c) Recipients of grants shall be subject to the following conditions:
(1) The recipient of a grant shall not use public funds for purposes of entertainment or perquisites, including lobbying activities;
(2) The recipient of a grant shall comply with state laws and county ordinances;
(3) The recipient of a grant shall comply with any other requirements that may be prescribed by rules adopted pursuant to this chapter;
(4) The recipient of a grant shall allow the authority, legislative bodies, and auditor full access to records, reports, files, and other related documents so that the program, management, and fiscal practices of the grant recipient may be monitored and evaluated to assure the proper and effective expenditure of public funds;
(5) Every grant shall be monitored according to rules adopted pursuant to this chapter to ensure compliance with this part; and
(6) Any recipient of a grant under this part who withholds or omits any material fact or deliberately misrepresents facts to the authority or who violates the terms of the grant agreement shall be in violation of this section and, in addition to any other penalties provided by law, shall be prohibited from applying for a grant or any other benefits under this part for a period of five years from the date of termination.
§A-144 Fee waivers. (a) For social equity applicants, the authority shall waive fifty per cent of any license application fees and any fees associated with purchasing a license to operate a licensed business for the initial five years of the social equity applicant's operations; provided that the social equity applicant meets the following qualifications at the time the payment is due:
(1) The applicant, including all persons with a direct or indirect interest in the applicant, has less than a total of $750,000 of income in the previous calendar year; and
(2) The applicant, including all persons with a direct or indirect interest in the applicant, has no more than three other licenses issued under this chapter.
(b) The authority shall require social equity applicants to attest that they meet the requirements for a fee waiver as provided in subsection (a) and to provide evidence of annual total income in the previous calendar year.
(c) If the authority determines that an applicant who applied for a fee waiver is not eligible as a social equity applicant, the applicant shall be provided an additional ten calendar days to provide alternative evidence that the applicant qualifies as a social equity applicant. Alternatively, the applicant may pay the remainder of the waived fee and be considered as a non-social equity applicant. If the applicant fails to do either, the authority may retain the initial application fee and the application shall be deemed withdrawn.
PART X. PUBLIC HEALTH AND EDUCATION
§A-151 Public health and education campaign. No later than July 1, 2025, the authority shall develop and implement a comprehensive public health and education campaign regarding the legalization of cannabis and the impact of cannabis use on public health and safety, including the health risks associated with cannabis and ways to protect children. The public health and education campaign shall also include education to the public about this chapter, including the potential risks associated with patronizing unlicensed dispensary locations, or otherwise procuring cannabis through persons not authorized by the authority. After the initial campaign, the authority shall continue to periodically develop and implement a comprehensive public health and education campaign on issues related to cannabis, as necessary.
§A-152 Public health and education grant program. (a) The board shall establish a public health and education grant program for the purposes of providing grants to substance abuse prevention and treatment programs and programs dedicated to preventing and treating substance abuse, especially among youth, and educating the public about cannabis use, this chapter, and other laws regarding cannabis.
(b) The authority, through the chief public health and environmental officer or executive director, shall have the power to:
(1) Provide grants to assist substance abuse prevention and treatment programs in the State;
(2) Provide grants to assist community-based organizations with developing, implementing, and supporting youth services, including child care, after-school and summer programs, and programs that build youth resiliency, youth recreational centers, services for housing, counseling, and preventing or treating youth substance abuse;
(3) Provide grants to assist community-based organizations with developing, implementing, and supporting programs for individuals with a dual diagnosis of mental disorder and substance abuse disorder, including services for supportive housing, residential treatment, outpatient treatment, counseling, and other related services;
(4) Provide staff, administration, and related support required to administer this part;
(5) Enter into agreements that set forth terms and conditions of the grants, accept funds or grants, and cooperate with private entities and state or county agencies to carry out the purposes of this part;
(6) Fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses, including application fees, commitment fees, program fees, financing charges, or publication fees in connection with its activities under this section;
(7) Take whatever actions are necessary or appropriate to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of grants provided under this section, including the ability to recapture funds if the grant recipient is found to be noncompliant with the terms and conditions of the grant agreement;
(8) Establish application, notification, contract, and other forms and procedures deemed necessary and appropriate to administer this part; and
(9) Utilize vendors or contract work to carry out the purposes of this part.
(c) The board shall adopt rules pursuant to this chapter to implement this part, including:
(1) Additional requirements and qualifications for determining eligibility of applicants for grants;
(2) Preferences and priorities in determining eligibility for grants;
(3) Conditions, consistent with the purpose of this chapter, for the awarding of grants;
(4) Requirements for the inspection at reasonable hours of facilities, books, and records of a grant applicant or grant recipient;
(5) Requirements for the submission of progress and final reports by grant recipients; and
(6) Appropriate management counseling and monitoring of business activities for grant recipients.
(d) The authority shall submit an annual report on the public health and education grant program to the governor and legislature no later than twenty days prior to the convening of each regular session. The report shall detail the outcomes and effectiveness of this section during the prior fiscal year, including the following:
(1) The number of persons or businesses who received financial assistance under this section;
(2) The amount of grants awarded in the aggregate;
(3) The location of the project engaged in by each grant recipient;
(4) The extent and reach of the public health and education campaigns;
(5) The number of adult and youth substance abuse and dual diagnosis prevention and treatment programs served by county; and
(6) The number of youth support and resiliency programs served by county.
§A-153 Public health and education grants; standards and conditions. (a) Grants made under this part shall be awarded on a competitive and annual basis. Grants made under this part shall further and promote the goals of this chapter.
(b) Applications for grants shall be made to the authority and contain information as shall be required by rules adopted pursuant to this chapter. At a minimum, an applicant shall show:
(1) The name of the applying organization or individual;
(2) That the applicant meets the criteria for the grant;
(3) The intended use of the grant; and
(4) The target group or community to be benefited by the grant.
(c) Recipients of grants shall be subject to the following conditions:
(1) The recipient of a grant shall not use public funds for purposes of entertainment or perquisites, including lobbying activities;
(2) The recipient of a grant shall comply with state laws and county ordinances;
(3) The recipient of a grant shall comply with any other requirements that may be prescribed by rules adopted pursuant to this chapter;
(4) The recipient of a grant shall allow the authority, legislative bodies, and auditor full access to records, reports, files, and other related documents so that the program, management, and fiscal practices of the grant recipient may be monitored and evaluated to assure the proper and effective expenditure of public funds;
(5) Every grant shall be monitored according to rules adopted pursuant to this chapter to ensure compliance with this part; and
(6) Any recipient of a grant under this part who withholds or omits any material fact or deliberately misrepresents facts to the authority or who violates the terms of the grant agreement shall be in violation of this section and, in addition to any other penalties provided by law, shall be prohibited from applying for a grant or any other benefits under this part for a period of five years from the date of termination.
PART
XI. PUBLIC SAFETY
§A-161 Public safety grant program. (a) The board shall establish a public safety grant program for the purposes of providing grants to state and county agencies and private entities to assist with public safety resources relating to cannabis, including law enforcement resources.
(b) The authority, through the chief compliance officer or executive director, shall have the power to:
(1) Provide grants to train and certify state and county law enforcement officers as drug recognition experts for detecting, identifying, and apprehending individuals operating a vehicle under the influence of an intoxicant or otherwise impaired;
(2) Provide grants to develop, implement, and support crisis intervention services, including alternative response programs and co-response programs that provide trained social service providers or mental health counselors to respond to, or assist law enforcement agencies with responding to, nonviolent emergencies, including welfare checks, public intoxication, and mental health episodes;
(3) Provide grants to train state and county law enforcement officers in mental health first aid;
(4) Provide grants for the effective enforcement and prosecution of violations of the nuisance abatement laws under part V of chapter 712;
(5) Provide grants to harm reduction programs, including crisis outreach programs, food banks, mental health support programs, homeless outreach programs, outpatient treatment programs, and housing assistance programs;
(6) Provide grants to improve data sharing across law enforcement agencies and the judiciary;
(7) Provide grants to state and county law enforcement agencies for equipment and training to assist with investigating and prosecuting illegal activities related to cannabis;
(8) Provide staff, administration, and related support required to administer this part;
(9) Enter into agreements that set forth terms and conditions of the grants, accept funds or grants, and cooperate with private entities and state or county agencies to carry out the purposes of this part;
(10) Fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses, including application fees, commitment fees, program fees, financing charges, or publication fees in connection with its activities under this section;
(11) Take whatever actions are necessary or appropriate to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of grants provided under this section, including the ability to recapture funds if the grant recipient is found to be noncompliant with the terms and conditions of the grant agreement;
(12) Establish application, notification, contract, and other forms and procedures deemed necessary and appropriate to administer this part; and
(13) Utilize vendors or contract work to carry out the purposes of this part.
(c) The board shall adopt rules pursuant to this chapter to implement this part, including:
(1) Additional requirements and qualifications for determining eligibility of applicants for grants;
(2) Preferences and priorities in determining eligibility for grants;
(3) Conditions, consistent with the purpose of this chapter, for the awarding of grants;
(4) Requirements for the inspection at reasonable hours of facilities, books, and records of a grant applicant or grant recipient;
(5) Requirements for the submission of progress and final reports by grant recipients; and
(6) Appropriate management counseling and monitoring of business activities for grant recipients.
(d) The authority shall submit an annual report on the public safety grant program to the governor and legislature no later than twenty days prior to the convening of each regular session. The report shall detail the outcomes and effectiveness of this section during the prior fiscal year, including the following:
(1) The number of persons, businesses, or agencies receiving financial assistance under this section;
(2) The amount of grants awarded in the aggregate;
(3) The location of the project engaged in by the person, business, or agency; and
(4) If applicable, the number of new jobs and other forms of economic output created as a result of the grants.
§A-162 Public safety grants; standards and conditions. (a) Grants made under this part shall be awarded on a competitive and annual basis. Grants made under this part shall further and promote the goals of this chapter.
(b) Applications for grants shall be made to the authority and contain information as shall be required by rules adopted pursuant to this chapter. At a minimum, an applicant shall show:
(1) The name of the applying organization or individual;
(2) That the applicant meets the criteria for the grant;
(3) The intended use of the grant; and
(4) The target group or community to be benefited by the grant.
(c) Recipients of grants shall be subject to the following conditions:
(1) The recipient of a grant shall not use public funds for purposes of entertainment or perquisites, including lobbying activities;
(2) The recipient of a grant shall comply with state laws and county ordinances;
(3) The recipient of a grant shall comply with any other requirements that may be prescribed by rules adopted pursuant to this chapter;
(4) The recipient of a grant shall allow the authority, legislative bodies, and auditor full access to records, reports, files, and other related documents so that the program, management, and fiscal practices of the grant recipient may be monitored and evaluated to assure the proper and effective expenditure of public funds;
(5) Every grant shall be monitored according to rules adopted pursuant to this chapter to ensure compliance with this part; and
(6) Any recipient of a grant under this part who withholds or omits any material fact or deliberately misrepresents facts to the authority or who violates the terms of the grant agreement shall be in violation of this section and, in addition to any other penalties provided by law, shall be prohibited from applying for a grant or any other benefits under this part for a period of five years from the date of termination.
PART
XII. MISCELLANEOUS
§A-171 Banking. (a) A financial institution that receives deposits, extends credit, conducts fund transfers, transports cash or financial instruments, or provides other financial services customarily provided by financial institutions shall not be penalized or punished under any criminal law, including chapter 708A, or under any provision of the Code of Financial Institutions, chapter 412, solely by virtue of the fact that the person receiving the benefit of any of those services engages in commercial cannabis activity as a cannabis business licensed pursuant to this chapter.
(b) A cannabis business may request in writing that the authority share the cannabis business's application, license, and other regulatory and financial information with a financial institution of the cannabis business's designation. The cannabis business shall include in that written request a waiver authorizing the transfer of that information and waiving any confidentiality or privilege that applies to that information.
(c) Notwithstanding any other law to the contrary, upon receipt of a written request and waiver pursuant to subsection (b), the authority may share the cannabis business's application, license, and other regulatory and financial information with the financial institution designated by the cannabis business in that request for the purpose of facilitating the provision of financial services for that cannabis business.
(d) A cannabis business that provides a waiver may withdraw that waiver in writing at any time. Upon receipt of the written withdrawal of the waiver, the authority shall cease to share application, license, or other regulatory or financial information with the financial institution.
(e) This section shall be construed to refer only to the disclosure of information by the authority reasonably necessary to facilitate the provision of financial services for the cannabis business making a request pursuant to this section. Nothing in this section shall be construed to authorize the disclosure of confidential or privileged information, or waive a cannabis business's rights to assert confidentiality or privilege, except to a financial institution as provided in this section and except as reasonably necessary to facilitate the provision of financial services for the cannabis business making the request.
(f) For the purpose of this section:
"Application, license, and other regulatory and financial information" includes but is not limited to information in the tracking system established pursuant to section A-88.
"Financial institution" has the same meaning as defined in section 412:1-109.
§A-172 Hawaii-grown labeling. In addition to all other labeling requirements, the identity statement used for labeling or advertising cannabis or hemp shall identify the percentage of Hawaii-grown cannabis or hemp; provided that any hemp product containing hemp not grown or processed in Hawaii shall identify the origin and percentage of the hemp from outside Hawaii in the hemp product; provided further that if the hemp product contains hemp from multiple origins, the hemp product shall identify the percentage of hemp origin as "United States" or "Foreign" if the hemp product includes hemp from a source outside of the United States.
§A-173 Data collection and research. (a) The authority shall collect data and develop a research agenda to understand the social and economic trends of cannabis in the State, to inform future decisions that would aid in the closure of the illicit marketplace, and to inform the authority on the public health impacts of cannabis. The research agenda shall include:
(1) Patterns of use, methods of consumption, sources of purchase, and general perceptions of cannabis among minors, college and university students, and adults;
(2) Incidents of driving under the influence, hospitalization, and use of other health care services related to cannabis use;
(3) Economic and fiscal impacts for the State, including the impact of legalization on the production and distribution of cannabis in the illicit market and the costs and benefits to state revenue;
(4) Ownership and employment trends in the cannabis industry;
(5) A market analysis examining the expansion or contraction of the illicit and legal marketplaces, including estimates and comparisons of pricing and product availability in both markets;
(6) A compilation of data on the number of incidents of discipline in schools, including suspensions or expulsions, resulting from the use or possession of cannabis; and
(7) A compilation of data on the number of civil penalties, arrests, prosecutions, incarcerations, and sanctions imposed for violations of this chapter for possession, distribution, or trafficking of cannabis.
(b) The authority shall incorporate available data into its research agenda, including baseline studies, and coordinate and form partnerships with the department of health, department of education, department of agriculture, department of the attorney general, department of law enforcement, and police department of each county. The departments listed in this subsection shall:
(1) Provide the authority with any existing data requested by the authority, subject to any applicable confidentiality laws and rules regarding personally identifiable information and personal health information; and
(2) Collect data, as reasonably requested by the authority, to complete the authority's research agenda.
(c) Any personally identifiable information or personal health information contained in data acquired through this section shall not be considered a public record and shall not be subject to disclosure.
(d) The authority shall annually report on the results of its research agenda and, when appropriate, make recommendations for further research or policy changes. The annual reports shall be posted online in a machine-readable format on the authority's website.
§A-174 Hawaii hemp grant program. (a) The board shall establish the Hawaii hemp grant program for the purposes of providing grants to local hemp farmers and hemp projects.
(b) The authority, through the hemp coordinator or executive director, shall have the power to:
(1) Provide grants to assist small hemp cultivators and hemp businesses in gaining entry to, and successfully operating in, the State's hemp industry, including grants for financial assistance, industry training, and technical assistance;
(2) Provide grants to assist research projects related to industrial uses of hemp and marketability of hemp products;
(3) Provide staff, administration, and related support required to administer the Hawaii hemp grant program;
(4) Enter into agreements that set forth terms and conditions of the grants, accept funds or grants, and cooperate with private entities and state or county agencies to carry out the purposes of the Hawaii hemp grant program;
(5) Fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses, including application fees, commitment fees, program fees, financing charges, or publication fees in connection with its activities under this section;
(6) Take whatever actions are necessary or appropriate to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of grants provided under this section, including the ability to recapture funds if the grant recipient is found to be noncompliant with the terms and conditions of the grant agreement;
(7) Establish application, notification, contract, and other forms and procedures deemed necessary and appropriate to administer the Hawaii hemp grant program; and
(8) Utilize vendors or contract work to carry out the purposes of the Hawaii hemp grant program.
(c) The board shall adopt rules pursuant to this chapter to implement the Hawaii hemp grant program, including:
(1) Additional requirements and qualifications for determining eligibility of applicants for grants;
(2) Preferences and priorities in determining eligibility for grants;
(3) Conditions, consistent with the purpose of this chapter, for the awarding of grants;
(4) Requirements for the inspection at reasonable hours of facilities, books, and records of a grant applicant or grant recipient;
(5) Requirements for the submission of progress and final reports by grant recipients; and
(6) Appropriate management counseling and monitoring of business activities for grant recipients.
(d) The authority shall submit an annual report on the Hawaii hemp grant program to the governor and legislature no later than twenty days prior to the convening of each regular session. The report shall detail the outcomes and effectiveness of this section during the prior fiscal year, including the following:
(1) The number of persons or businesses who received financial assistance under this section;
(2) The amount of grants awarded in the aggregate;
(3) The location of the project engaged in by each grant recipient; and
(4) If applicable, the number of new jobs and other forms of economic output created as a result of the grants.
§A-175 Hawaii hemp grants; standards and conditions. (a) Grants made under the Hawaii hemp grant program shall be awarded on a competitive and annual basis. Grants made under the Hawaii hemp grant program shall further and promote the goals of this chapter.
(b) Applications for grants shall be made to the authority and contain information as shall be required by rules adopted pursuant to this chapter. At a minimum, an applicant shall show:
(1) The name of the applying organization or individual;
(2) That the applicant meets the criteria for the grant;
(3) The intended use of the grant; and
(4) The target group or community to be benefited by the grant.
(c) Recipients of grants shall be subject to the following conditions:
(1) The recipient of a grant shall not use public funds for purposes of entertainment or perquisites, including lobbying activities;
(2) The recipient of a grant shall comply with state laws and county ordinances;
(3) The recipient of a grant shall comply with any other requirements that may be prescribed by rules adopted pursuant to this chapter;
(4) The recipient of a grant shall allow the authority, legislative bodies, and auditor full access to records, reports, files, and other related documents so that the program, management, and fiscal practices of the grant recipient may be monitored and evaluated to assure the proper and effective expenditure of public funds;
(5) Every grant shall be monitored according to rules adopted pursuant to this chapter to ensure compliance with the Hawaii hemp grant program; and
(6) Any recipient of a grant under the Hawaii hemp grant program who withholds or omits any material fact or deliberately misrepresents facts to the authority or who violates the terms of the grant agreement shall be in violation of this section and, in addition to any other penalties provided by law, shall be prohibited from applying for a grant or any other benefits under the Hawaii hemp grant program for a period of five years from the date of termination."
PART III
SECTION 3. The purpose of this part is to impose a tax on the retail sale of cannabis and a tax on the sale of medical cannabis and require every business engaged in the sale of cannabis to obtain a cannabis tax permit.
SECTION 4. The Hawaii Revised Statutes is amended by adding a new chapter to title 14 to be appropriately designated and to read as follows:
"Chapter B
HAWAII CANNABIS TAX LAW
§B-1 Definitions. As used in this chapter, unless the context otherwise requires:
"Cannabis" has the same meaning as defined in section A-3.
"Department" means the department of taxation.
"Director" means the director of taxation.
"Medical cannabis" has the same meaning as defined in section A-3.
"Person" includes one or more individuals, a company, a corporation, a partnership, an association, or any other type of legal entity, and also includes an officer or employee of a corporation, a partner or employee of a partnership, a trustee of a trust, a fiduciary of an estate, or a member, employee, or principal of any other entity, who as an officer, employee, partner, trustee, fiduciary, member, or principal is under a duty to perform and is principally responsible for performing the act.
"Retail sale" has the same meaning as "retailing" or "sales at retail" as defined in section 237-1.
§B-2 Cannabis tax permit. (a) No person shall engage in the retail sale of cannabis or sale of medical cannabis unless a permit has been issued to the person pursuant to this section; provided that this section shall not apply to persons who make sales at wholesale.
(b) The cannabis tax permit shall be issued by the department upon application and payment of an application fee of $25. Whenever a cannabis tax permit is defaced, destroyed, or lost, or the permittee relocates the permittee's business, the department may issue a duplicate cannabis tax permit to the permittee for a fee of $5 per copy. The permit provided for by this section shall be effective until canceled in writing. The director may revoke or cancel any permit issued under this chapter for cause as provided by rules adopted pursuant to chapter 91.
(c) A separate cannabis tax permit shall be obtained for each place of business owned, controlled, or operated by a taxpayer. A taxpayer who owns or controls more than one place of business may submit a single application for more than one cannabis tax permit; provided that the application fee of $25 shall be required for each permit. Each cannabis tax permit issued shall clearly describe the place of business where the retail sale of cannabis or sale of medical cannabis is conducted.
(d) A cannabis tax permit shall be non-assignable and non-transferable. A cannabis tax permit may be transferred from one business location to another business location after an application has been filed with the department requesting the transfer, the applicant has paid a transfer fee of $25, and approval has been obtained from the department.
(e) Any cannabis tax permit issued under this chapter shall be displayed at all times in a conspicuous place at each of the licensed premises of the taxpayer.
§B-3 Tax. (a) Upon every person engaging or continuing within the State in the retail sale of cannabis, beginning January 1, 2026, and continuing thereafter, there is hereby levied and shall be assessed and collected a tax equal to fourteen per cent of the gross proceeds of retail sales from cannabis; provided that this subsection shall not apply to the sale of medical cannabis.
(b) Upon every person engaging or continuing within the State in the sale of medical cannabis, beginning January 1, 2026, and continuing thereafter, there is hereby levied and shall be assessed and collected a tax equal to four per cent of the gross proceeds of sales from medical cannabis; provided that this subsection shall not apply to sales at wholesale.
§B-4 Return; forms; contents. (a) Every person subject to tax under this chapter shall, on or before the twentieth day of each month, file with the department, a return showing all sales of cannabis and of the taxes chargeable against the person under section B-3 made by the person during the preceding month. The form of return shall be prescribed by the department and shall contain information that the department may deem necessary for the proper administration of this chapter.
(b) On or before the twentieth day of the fourth month following the close of the taxable year, each taxpayer who has become liable for the payment of taxes under this chapter during the preceding tax year shall file a return showing all sales of cannabis made by the person during the taxable year, in the form and manner prescribed by the department, and shall transmit with the return a remittance covering the residue of the tax due, if any.
§B-5 Payment of tax; penalties. (a) At the time of the filing of the return required under section B-4 and within the time prescribed, each person subject to the tax imposed by this chapter shall pay to the department the tax required to be shown by the return.
(b) Penalties and interest shall be added to and become a part of the tax, when and as provided by section 231-39.
§B-6 Limitation period for assessment levy, collection, or credit. (a) General rule. The amount of taxes imposed by this chapter shall be assessed or levied within three years after filing of the annual return, or within three years of the due date prescribed for the filing of the annual return, whichever is later. No proceeding in court without assessment for the collection of the taxes or the enforcement of the liability shall be commenced after the expiration of the period. Where the assessment of the tax imposed by this chapter has been made within the applicable period of limitation, the tax may be collected by levy or by a proceeding in court under chapter 231; provided that the levy is made, or the proceeding was begun, within fifteen years after the assessment of the tax.
Notwithstanding any other provision to the contrary in this section, the limitation on collection after assessment in this section shall be suspended for the period:
(1) The taxpayer agrees to suspend the period;
(2) The assets of the taxpayer are in control or custody of a court in any proceeding before any court of the United States or any state, and for six months thereafter;
(3) An offer in compromise under section 231-3(10) is pending; and
(4) During which the taxpayer is outside the State for a continuous period of at least six months; provided that if at the time of the taxpayer's return to the State the period of limitations on collection after assessment would expire before the expiration of six months from the date of the taxpayer's return, the period shall not expire before the expiration of the six months.
(b) Limitations on credit or refund. No credit or refund shall be allowed for any tax imposed by this chapter unless a claim for credit or refund is filed as follows:
(1) If an annual return is timely filed, or is filed within three years after the date prescribed for filing the annual return, then the credit or refund shall be claimed within three years after the date the annual return was filed or the date prescribed for filing the annual return, whichever is later; or
(2) If an annual return is not filed, or is filed more than three years after the date prescribed for filing the annual return, a claim for credit or refund shall be filed within three years after:
(A) The payment of the tax; or
(B) The date prescribed for the filing of the annual return,
whichever is later;
provided that paragraphs (1) and (2) shall be mutually exclusive.
(c) Exceptions; fraudulent return or no return. In the case of a false or fraudulent return with intent to evade tax or liability, or of a failure to file the annual return, the tax or liability may be assessed or levied at any time; provided that the burden of proof with respect to the issues of falsity or fraud and intent to evade tax shall be upon the State.
(d) Extension by agreement. Where, before the expiration of the period prescribed in subsection (a) or (b), both the department and the taxpayer have consented in writing to the assessment or levy of the tax after the date fixed by subsection (a) or the credit or refund of the tax after the date fixed by subsection (b), the tax may be assessed or levied or the overpayment, if any, may be credited or refunded at any time before the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
§B-7 Disposition of revenues. The tax collected pursuant to this chapter shall be paid into the state treasury as a state realization to be kept and accounted for as provided by law; provided that revenues collected under this chapter shall be distributed in the following priority:
(1) Fifty per cent of the tax collected shall be deposited into the cannabis regulation, nuisance abatement, and law enforcement special fund established by section A‑17; and
(2) Fifty per cent of the tax collected shall be deposited into the cannabis social equity, public health and education, and public safety special fund established by section A-18.
§B-8 Records to be kept. (a) Every person subject to tax under this chapter shall keep records of all sales of cannabis, in a form prescribed by the department. All records shall be offered for inspection and examination at any time upon demand by the department or Hawaii cannabis and hemp authority and shall be preserved for a period of five years; provided that the department may, in writing, consent to the records' destruction within that period or may adopt rules that require the records to be kept longer.
The department may, by rule, require the person subject to tax under this chapter to keep other records as the department may deem necessary for the proper enforcement of this chapter.
(b) If any person subject to tax under this chapter fails to keep records from which a proper determination of the tax due under this chapter may be made, the department may fix the amount of tax for any period from the best information the department obtains, and assess the tax as provided in this section.
(c) Every person subject to tax under this chapter shall keep a complete and accurate record of that person's cannabis inventory. The records shall:
(1) Include:
(A) A written statement containing the name and address of the source of cannabis;
(B) The date of delivery, quantity, weight, and price of the cannabis; and
(C) Documentation in the form of any purchase orders; invoices; bills of lading; or other written statements, books, papers, or records in whatever format, including electronic format, that substantiate the purchase or acquisition of the cannabis stored or offered for sale; and
(2) Be offered for inspection and examination within twenty-four hours of demand by the department or Hawaii cannabis and hemp authority and shall be preserved for a period of five years; provided that the department may, in writing, consent to the records' destruction within that period or may adopt rules that require the records to be kept longer.
§B-9 Inspection. (a) A person subject to tax under this chapter shall be subject to the inspection and investigation provisions in chapter 231 and shall provide the department with any information deemed necessary to verify compliance with the requirements of this chapter.
(b) The department and Hawaii cannabis and hemp authority may examine all records required to be kept under this chapter, and books, papers, and records of any person subject to tax under this chapter to verify the accuracy of the payment of the tax imposed by this chapter and other compliance with this chapter and rules adopted pursuant to this chapter. Every person in possession of the books, papers, and records and the person's agents and employees shall give the department and Hawaii cannabis and hemp authority the means, facilities, and opportunities for examination.
(c) Returns, return information, or reports under this chapter, and relating only to this chapter, may be provided to the Hawaii cannabis and hemp authority by the department for the purpose of enforcing or ensuring compliance with chapter A.
Notwithstanding the foregoing, the inspection, review, or production of any and all federal tax returns and return information shall only be provided as permitted in accordance with applicable federal law.
§B-10 Tax in addition to other taxes. The tax imposed by this chapter, unless expressly prohibited, shall be in addition to any other tax imposed upon the business of selling cannabis or upon any of the transactions, acts, or activities taxed by law.
§B-11 Appeals. Any person aggrieved by any assessment of the tax imposed by this chapter may appeal from the assessment in the manner and within the time and in all other respects as provided in the case of income tax appeals by section 235-114. The hearing and disposition of the appeal, including the distribution of costs, shall be as provided in chapter 232.
§B-12 Other provisions applicable. All of the provisions of chapters 231, 235, and 237 not inconsistent with this chapter and that may appropriately be applied to the taxes, persons, circumstances, and situations involved in this chapter, including (without prejudice to the generality of the foregoing) provisions as to penalties and interest, granting administrative powers to the director, and for the assessment, levy, and collection of taxes, shall be applicable to the taxes imposed by this chapter, and to the assessment, levy, and collection thereof.
§B-13 Audits, investigations, hearings, and subpoenas. The director, and any agent authorized by the director, may conduct any inquiry, civil audit, criminal investigation, investigation, or hearing relating to any assessment, the amount of any tax, or the collection of any delinquent tax, including any audit or investigation into the financial resources of any delinquent taxpayer or the collectability of any delinquent tax, in the manner provided in section 231-7.
§B-14 Administration by director; rules. The administration of this chapter is vested in the director who may adopt and enforce rules for the enforcement and administration of this chapter.
The director shall adopt rules pursuant to chapter 91.
§B-15 Penalties. (a) The penalties provided by this chapter shall apply to any person, whether acting as principal, agent, officer, or director, for oneself, itself, or for another person and shall apply to each single violation.
(b) In addition to the penalties imposed under title 14, including this chapter, and under chapter A, any person or cannabis retailer who sells cannabis, or medical cannabis dispensary who sells medical cannabis, without a permit as required by this chapter shall be fined no more than $1,000 per violation. Each day a violation continues shall constitute a separate violation.
(c) For purposes of this section:
"Cannabis retailer" means a person who engages in the retail sale of cannabis pursuant to a license or permit issued under chapter A. "Cannabis retailer" includes a retail cannabis store, a craft cannabis dispensary, and any permit holder who engages in the retail sale of cannabis pursuant to a permit issued under chapter A and does not include a medical cannabis dispensary.
"Craft cannabis dispensary" has the same meaning as defined in section A-3.
"Medical cannabis dispensary" has the same meaning as defined in section A-3.
"Retail cannabis store" has the same meaning as defined in section A-3."
PART IV
SECTION 5. The purpose of this part is to prohibit:
(1) Consuming or possessing marijuana, an open container of marijuana, or marijuana concentrate while operating, or while a passenger in, a motor vehicle or moped; and
(2) Operating a vehicle under the influence of marijuana or marijuana concentrate.
SECTION 6. Chapter 291, Hawaii Revised Statutes, is amended by adding three new sections to part I to be appropriately designated and to read as follows:
"§291- Consuming
marijuana or marijuana concentrate while operating or a passenger in a motor
vehicle or moped. (a)
No person shall consume, including through secondhand or passive
smoking, any marijuana or marijuana concentrate while operating a motor vehicle
or moped upon any public street, road, or highway.
(b) No
person shall smoke or vaporize any marijuana or marijuana concentrate while a
passenger in any motor vehicle or on any moped upon any public street, road, or
highway.
(c)
Any person violating this section shall be guilty of a petty misdemeanor;
provided that, notwithstanding section 706‑640, the maximum fine shall be
no more than $2,000.
§291- Open container of marijuana or marijuana
concentrate in a motor vehicle or on a moped. (a) No person shall possess within any passenger
area of a motor vehicle or moped being operated upon any public street, road,
or highway, any bottle, can, package, wrapper, smoking device, cartridge, or
other receptacle containing any marijuana or marijuana concentrate that has
been opened, or a seal broken, or the contents of which have been partially
removed, or loose marijuana or marijuana concentrate not in a container.
(b)
This section shall not apply to marijuana, marijuana concentrate, or a
bottle, can, package, wrapper, smoking device, cartridge, or other receptacle
containing any marijuana or marijuana concentrate that is:
(1) Concealed on a
passenger's person or in the passenger's personal property; or
(2) Stored in a
trunk, luggage compartment, console out of reach of the driver, or similar
location out of reach of the driver.
(c)
Any person violating this section shall be guilty of a violation and
shall be fined no more than $130. A
person found responsible for a violation under this section may request, and
shall be granted, a penalty of up to ten hours of community service in lieu of
a fine.
§291- Marijuana or marijuana concentrate; prima facie evidence. Any bottle, can, package, wrapper, smoking device, cartridge, or other receptacle that displays or is imprinted with a label indicating that the contents contain marijuana or marijuana concentrate shall be prima facie evidence that the contents of the bottle, can, package, wrapper, smoking device, cartridge, or other receptacle contains marijuana or marijuana concentrate."
SECTION 7. Chapter 291E, Hawaii Revised Statutes, is amended as follows:
1. By adding a new section to part II to be appropriately designated and to read:
"§291E-A Refusal to
submit to testing for measurable amount of THC; district court hearing;
sanctions; appeals; admissibility. (a) If a person under arrest for operating a
vehicle after consuming a measurable amount of THC or, if the person is a
medical cannabis patient, THC at a concentration of ten or more nanograms per
milliliter of blood, pursuant to section 291E-B, refuses to submit to a blood
test, none shall be given, except as provided in section 291E-21, but the
arresting law enforcement officer, as soon as practicable, shall submit an
affidavit to a district judge of the circuit in which the arrest was made
stating that:
(1) At the time of
the arrest, the arresting officer had probable cause to believe the person
arrested was under the age of twenty-one and had been operating a vehicle upon
a public way, street, road, or highway, or on or in the waters of the State,
with a measurable amount of THC or, if the person arrested is a medical
cannabis patient, THC at a concentration of ten or more nanograms per
milliliter of blood;
(2) The person
arrested was informed that the person may refuse to submit to a blood test, in
compliance with section 291E-11;
(3) The person
arrested had refused to submit to a blood test;
(4) The person
arrested was:
(A) Informed
of the sanctions of this section; and
(B) Secondly
queried if the person still refuses to submit to a blood test, in compliance
with the requirements of section 291E-15; and
(5) The person
arrested continued to refuse to submit to a blood test.
(b)
Upon receipt of the affidavit, the district judge shall hold a hearing
within twenty days. The district judge
shall hear and determine whether:
(1) The arresting
law enforcement officer had probable cause to believe that the person arrested
was under the age of twenty-one and had been operating a vehicle upon a public
way, street, road, or highway, or on or in the waters of the State, with a
measurable amount of THC or, if the person arrested is the medical cannabis
patient, THC at a concentration of ten or more nanograms per milliliter of
blood;
(2) The person was
lawfully arrested;
(3) The person arrested
was informed that the person may refuse to submit to a blood test, in
compliance with section 291E-11;
(4) The person arrested
refused to submit to a blood test;
(5) The person arrested
was:
(A) Informed
of the sanctions of this section; and
(B) Secondly
queried if the person still refuses to submit to a blood test, in
compliance with the requirements of section 291E-15; and
(6) The person
continued to refuse to submit to a blood test.
(c) If
the district judge finds the statements contained in the affidavit are true,
the judge shall suspend the arrested person's license and privilege to operate
a vehicle as follows:
(1) For a first
suspension, or any suspension not preceded within a five-year period by a
suspension under this section, for a period of twelve months; and
(2) For any
subsequent suspension under this section, for a period no less than two years
and no more than five years.
(d) An
order of a district court issued under this section may be appealed to the
supreme court."
2. By
adding a new section to part IV to be appropriately designated and to read:
"§291E-B Operating a vehicle after consuming a
measurable amount of THC; persons under the age of twenty-one; exception. (a)
It shall be unlawful for any person under the age of twenty-one to
operate any vehicle with a measurable amount of THC; provided that if the
person under the age of twenty-one is a medical cannabis patient as defined in
section A-3, it shall be unlawful to operate any vehicle with THC at a
concentration of ten or more nanograms per milliliter of blood. A law enforcement officer may arrest a person
under this section when the officer has probable cause to believe the person
arrested is under the age of twenty-one and had been operating a vehicle upon a
public way, street, road, or highway, or on or in the waters of the State, with
a measurable amount of THC or with THC at a concentration of ten or more
nanograms per milliliter of blood for a medical cannabis patient who provides
valid proof that the person is a medical cannabis patient. The valid proof shall include a current and
valid medical cannabis registration card issued by the Hawaii cannabis and hemp
authority under section A-47 or A-48.
(b) A person who violates this section shall be
sentenced as follows:
(1) For a first
violation or any violation not preceded within a five-year period by a prior
drug enforcement contact:
(A) The
court shall impose:
(i) A
requirement that the person and, if the person is under the age of eighteen,
the person's parent or guardian, attend a substance abuse education and
counseling program for no more than ten hours; and
(ii) A
one hundred eighty-day prompt suspension of license and privilege to operate a
vehicle with absolute prohibition from operating a vehicle during the
suspension period; provided that in the case of a person who is at least eighteen
years of age, the court may impose, in lieu of the one hundred eighty-day
prompt suspension of license, a minimum thirty-day prompt suspension of license
with absolute prohibition from operating a vehicle and, for the remainder of
the one hundred eighty-day period, a restriction on the license that allows the
person to drive for limited work-related purposes and to participate in
substance abuse education and treatment programs; and
(B) In
addition, the court may impose any one or more of the following:
(i) No
more than thirty-six hours of community service work; or
(ii) A
fine of no less than $150 but no more than $500;
(2) For a violation
that occurs within five years of a prior drug enforcement contact:
(A) The
court shall impose prompt suspension of license and privilege to operate a vehicle
for a period of one year with absolute prohibition from operating a vehicle
during the suspension period; and
(B) In
addition, the court may impose any of the following:
(i) No
more than fifty hours of community service work; or
(ii) A
fine of no less than $300 but no more than $1,000; and
(3) For a violation
that occurs within five years of two or more prior drug enforcement contacts:
(A) The
court shall impose revocation of license and privilege to operate a vehicle for
a period of two years; and
(B) In
addition, the court may impose any of the following:
(i) No
more than one hundred hours of community service work; or
(ii) A
fine of no less than $300 but no more than $1,000.
(c) Notwithstanding any other law to the contrary,
any conviction or plea under this section shall be considered a prior drug
enforcement contact.
(d) Whenever a court sentences a person pursuant
to subsection (b)(2) or (3), it also shall require that the person be referred
to the driver's education program for an assessment, by a certified substance
abuse counselor, of the person's substance abuse or dependence and the need for
appropriate treatment. The counselor
shall submit a report with recommendations to the court. The court shall require the person to obtain
appropriate treatment if the counselor's assessment establishes the person's
substance abuse or dependence. All costs
for assessment and treatment shall be borne by the person or by the person's
parent or guardian, if the person is under the age of eighteen.
(e) Notwithstanding section 831-3.2 or any other
law to the contrary, a person convicted of a first-time violation under
subsection (b)(1), who had no prior drug enforcement contacts, may apply to the
court for an expungement order upon attaining the age of twenty-one, or
thereafter, if the person has fulfilled the terms of the sentence imposed by
the court and has had no subsequent alcohol or drug related enforcement
contacts.
(f) Notwithstanding any other law to the contrary,
whenever a court revokes a person's driver's license pursuant to this section,
the examiner of drivers shall not grant to the person an application for a new
driver's license for a period to be determined by the court.
(g) Any person sentenced under this section may
be ordered to reimburse the county for the cost of any blood tests conducted
pursuant to section 291E-11. The court
shall order the person to make restitution in a lump sum, or in a series of prorated
installments, to the police department or other agency incurring the expense of
the blood test.
(h) The requirement to provide proof of financial
responsibility pursuant to section 287-20 shall not be based upon a sentence
imposed under subsection (b)(1).
(i) Any person who violates this section shall be
guilty of a violation.
(j) As used in this section:
"Driver's license" has
the same meaning as in section 286‑2.
"Examiner of drivers" has
the same meaning as in section 286-2."
SECTION 8. Section 291-1, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:
""Marijuana" has
the same meaning as defined in section 712-1240.
"Marijuana concentrate" has the same meaning as defined in section 712-1240."
SECTION 9. Section 291E-1, Hawaii Revised Statutes, is amended by adding five new definitions to be appropriately inserted and to read as follows:
""Marijuana" has the same meaning as defined in section 712-1240.
"Marijuana concentrate"
has the same meaning as defined in section 712-1240.
"Medical cannabis
patient" has the same meaning as defined in section A-3.
"Medical cannabis
registration card" has the same meaning as defined in section A-3.
"THC" means the cannabinoids that function as the primary psychoactive component of marijuana or marijuana concentrate."
SECTION 10. Section 291E-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) In any criminal prosecution for a violation of section 291E-61 or 291E-61.5 or in any proceeding under part III:
(1) .08 or more grams of alcohol per one hundred milliliters or cubic centimeters of the person's blood;
(2) .08 or more grams
of alcohol per two hundred ten liters of the person's breath; [or]
(3) THC at a
concentration of ten or more nanograms per milliliter of blood; or
[(3)] (4) The presence of one or more drugs in
an amount sufficient to impair the person's ability to operate a vehicle in a
careful and prudent manner,
within three hours after the time of the alleged violation as shown by chemical analysis or other approved analytical techniques of the person's blood, breath, or urine shall be competent evidence that the person was under the influence of an intoxicant at the time of the alleged violation."
SECTION 11. Section 291E-11, Hawaii Revised Statutes, is amended by amending subsections (d) and (e) to read as follows:
"(d) If there is probable cause to believe that a
person is in violation of section 291E-61 or 291E-61.5, as a result of having
consumed any drug[,] except for THC, then the person shall elect
to take a blood or urine test, or both, for the purpose of determining the drug
content. Drug content shall be measured
by the presence of any drug or its metabolic products, or both. If there is probable cause to believe that
a person is in violation of section 291E-B, as a result of being under the age
of twenty-one and having consumed a measurable amount of THC or, if the person
is a medical cannabis patient, having consumed THC at a concentration of ten or
more nanograms per milliliter of blood, or section 291E-61 or 291E-61.5, as a
result of having consumed THC at a concentration of ten or more nanograms per
milliliter of blood, then the person shall take a blood test, and may also
elect to take a urine test in addition to the blood test.
(e)
A person who chooses to submit to a breath test under subsection (c)
also may be requested to submit to a blood or urine test, if the law
enforcement officer has probable cause to believe that the person was operating
a vehicle while under the influence of any drug under section 291E-61 or
291E-61.5 and the officer has probable cause to believe that a blood or urine
test will reveal evidence of the person being under the influence of any drug. The law enforcement officer shall state in
the officer's report the facts upon which that belief is based. The person shall elect to take a blood or
urine test, or both, for the purpose of determining the person's drug content[.],
unless the drug being tested for is THC in which case the person shall take a
blood test and may also elect to take a urine test in addition to the blood
test. Results of a blood or urine
test conducted to determine drug content also shall be admissible for the
purpose of determining the person's alcohol concentration. Submission to testing for drugs under
subsection (d) or this subsection shall not be a substitute for alcohol tests
requested under subsection (c)."
SECTION 12. Section 291E-21, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) If a health care provider who is providing medical care, in a health care facility, to any person involved in a vehicle collision:
(1) Becomes aware, as a result of any blood or urine test performed in the course of medical treatment, that:
(A) The alcohol
concentration in the person's blood meets or exceeds the amount specified in
section 291E-61(a)(4) or 291E-61.5(a)(2)(D); [or]
(B) The
THC concentration in the person's blood meets or exceeds the amount specified
in section 291E‑61(a)(5) or 291E-61.5(a)(2)(E); or
[(B)] (C) The person's blood or urine contains one or
more drugs that are capable of impairing a person's ability to operate a
vehicle in a careful and prudent manner; and
(2) Has a reasonable belief that the person was the operator of a vehicle involved in the collision,
the health care provider shall notify, as soon as
reasonably possible, any law enforcement officer present at the health care
facility to investigate the collision.
If no law enforcement officer is present, the health care provider shall
notify the county police department in the county where the collision
occurred. If the health care provider is
aware of any blood or urine test result, as provided in paragraph (1), but lacks
information to form a reasonable belief as to the identity of the operator
involved in a vehicle collision, as provided in paragraph (2), then the health
care provider shall give notice to a law enforcement officer present or [to]
the county police department, as applicable, for each person involved in a
vehicle collision whose alcohol concentration in the person's blood meets or
exceeds the amount specified in section 291E-61(a)(4) or 291E-61.5(a)(2)(D),
whose THC concentration in the person's blood meets or exceeds the amount
specified in section 291E‑61(a)(5) or 291E-61.5(a)(2)(E), or whose
blood or urine contains one or more drugs.
The notice by the health care provider shall consist of the name of the
person being treated, the blood alcohol concentration, THC concentration in
the person's blood, or drug content disclosed by the test, and the date and
time of the administration of the test.
This notice shall be deemed to satisfy the intoxication element
necessary to establish the probable cause requirement set forth in subsection
(c)."
SECTION 13. Section 291E-33, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Whenever a person is arrested for a violation
of section 291E-61 or 291E-61.5 on a determination by the arresting law
enforcement officer that[:] there was:
(1) [There was
reasonable] Reasonable suspicion to stop the vehicle or the vehicle
was stopped at an intoxicant control roadblock established and operated in
compliance with sections 291E-19 and 291E-20; and
(2) [There was
probable] Probable cause to believe that the person was operating
the vehicle while under the influence of an intoxicant[;],
the law enforcement officer shall take possession of any license held by the person and request the person to take a test for alcohol concentration, in the case of an alcohol related offense, or a test for drug content in the blood or urine, in the case of a drug related offense. The law enforcement officer shall inform the person that, in the case of an alcohol related offense, the person shall elect to take a breath test, a blood test, or both, pursuant to section 291E‑11, but that the person may refuse to submit to testing under this chapter. In the case of a drug related offense, the person shall elect to take a blood test, a urine test, or both, unless the drug being tested for is THC in which case the person shall take a blood test and may also elect to take a urine test in addition to the blood test pursuant to section 291E-11, after being informed that the person may refuse to submit to testing under this chapter."
SECTION 14. Section 291E-35, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) In cases involving a drug related offense, if
a test conducted in accordance with part II and section 321‑161 and the
rules adopted thereunder shows that a respondent had a THC concentration of
less than ten nanograms per milliliter of blood, or fails to show the
presence, in the respondent's blood or urine, of any drug that is capable of
impairing the respondent's ability to operate a vehicle in a careful and
prudent manner, the director or [the] arresting law enforcement agency [immediately]
shall immediately return the respondent's license along with a certified
statement that administrative revocation proceedings have been terminated with
prejudice."
SECTION 15. Section 291E-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Whenever a respondent has been arrested for a violation of section 291E-61 or 291E-61.5 and submits to a test that establishes: the respondent's alcohol concentration was .08 or more; the respondent's THC concentration was ten or more nanograms per milliliter of blood; the presence, in the respondent's blood or urine, of any drug that is capable of impairing the respondent's ability to operate a vehicle in a careful and prudent manner; or whenever a respondent has been involved in a collision resulting in injury or death and a blood or urine test performed pursuant to section 291E-21 establishes that the respondent's alcohol concentration was .08 or more, the respondent's THC concentration was ten or more nanograms per milliliter of blood, or establishes the presence in the respondent's blood or urine of any drug that is capable of impairing the respondent's ability to operate a vehicle in a careful and prudent manner, the following shall be forwarded immediately to the director:
(1) A copy of the arrest report or the report of the law enforcement officer who issued the notice of administrative revocation to the person involved in a collision resulting in injury or death and the sworn statement of the arresting law enforcement officer or the officer who issued the notice of administrative revocation, stating facts that establish that:
(A) There was reasonable suspicion to stop the vehicle, the vehicle was stopped at an intoxicant control roadblock established and operated in compliance with sections 291E-19 and 291E-20, or the respondent was tested pursuant to section 291E-21;
(B) There was probable cause to believe that the respondent had been operating the vehicle while under the influence of an intoxicant; and
(C) The respondent agreed to be tested or the person was tested pursuant to section 291E-21;
(2) In a case involving an alcohol related offense, the sworn statement of the person responsible for maintenance of the testing equipment, stating facts that establish that, pursuant to section 321-161 and rules adopted thereunder:
(A) The equipment used to conduct the test was approved for use as an alcohol testing device in this State;
(B) The person had been trained and at the time the test was conducted was certified and capable of maintaining the testing equipment; and
(C) The testing equipment used had been properly maintained and was in good working condition when the test was conducted;
(3) In a case involving an alcohol related offense, the sworn statement of the person who conducted the test, stating facts that establish that, pursuant to section 321-161 and rules adopted thereunder:
(A) The person was trained and at the time the test was conducted was certified and capable of operating the testing equipment;
(B) The person followed the procedures established for conducting the test;
(C) The equipment used to conduct the test functioned in accordance with operating procedures and indicated that the respondent's alcohol concentration was at, or above, the prohibited level; and
(D) The person whose breath or blood was tested is the respondent;
(4) In a case involving a drug related offense, including THC, the sworn statement of the person responsible for maintenance of the testing equipment, stating facts that establish that, pursuant to section 321-161 and rules adopted thereunder:
(A) The equipment used to conduct the test was approved for use in drug testing;
(B) The person conducting the test had been trained and, at the time of the test, was certified and capable of maintaining the testing equipment; and
(C) The testing equipment used had been properly maintained and was in good working condition when the test was conducted;
(5) In a case involving a drug related offense, including THC, the sworn statement of the person who conducted the test, stating facts that establish that, pursuant to section 321-161 and rules adopted thereunder:
(A) At the time the test was conducted, the person was trained and capable of operating the testing equipment;
(B) The person followed the procedures established for conducting the test;
(C) The equipment used to conduct the test functioned in accordance with operating procedures and indicated the presence of one or more drugs or their metabolites in the respondent's blood or urine; and
(D) The person whose blood or urine was tested is the respondent;
(6) A copy of the notice of administrative revocation issued by the law enforcement officer to the respondent;
(7) Any license taken into possession by the law enforcement officer; and
(8) A listing of any prior alcohol or drug enforcement contacts involving the respondent."
SECTION 16. Section 291E-61, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) A person commits the offense of operating a vehicle
under the influence of an intoxicant if the person operates or assumes actual
physical control of a vehicle:
(1) While under the influence of alcohol in an amount sufficient to impair the person's normal mental faculties or ability to care for the person and guard against casualty;
(2) While under the influence of any drug that impairs the person's ability to operate the vehicle in a careful and prudent manner;
(3) With .08 or more
grams of alcohol per two hundred ten liters of breath; [or]
(4) With .08 or more
grams of alcohol per one hundred milliliters or cubic centimeters of blood[.];
or
(5) With THC at a concentration of ten or more nanograms per milliliter of blood."
SECTION 17. Section 291E-61.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) A person commits the offense of habitually operating a vehicle under the influence of an intoxicant if:
(1) The
person is a habitual operator of a vehicle while under the influence of an
intoxicant; and
(2) The
person operates or assumes actual physical control of a vehicle:
(A) While under the influence of alcohol in an amount sufficient to impair the person's normal mental faculties or ability to care for the person and guard against casualty;
(B) While under the influence of any drug that impairs the person's ability to operate the vehicle in a careful and prudent manner;
(C) With .08 or more
grams of alcohol per two hundred ten liters of breath; [or]
(D) With .08 or more
grams of alcohol per one hundred milliliters or cubic centimeters of blood[.];
or
(E) With THC at a concentration of ten or more nanograms per milliliter of blood."
PART V
SECTION 18. Section 26-35.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) For purposes of this section, "member" means any person who is appointed, in accordance with the law, to serve on a temporary or permanent state board, including members of the board of education, the governing board of any charter school established under chapter 302D, council, authority, committee, or commission, established by law or elected to the board of trustees of the employees' retirement system under section 88‑24, the cannabis and hemp control board under section A-12, or the corporation board of the Hawaii health systems corporation under section 323F-3 and its regional system boards under section 323F-3.5; provided that "member" shall not include any person elected to serve on a board or commission in accordance with chapter 11."
SECTION 19. Section 28-8.3, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) No department of the
State other than the attorney general may employ or retain any attorney, by
contract or otherwise, for the purpose of representing the State or the
department in any litigation, rendering legal counsel to the department, or
drafting legal documents for the department; provided that [the foregoing
provision] this subsection shall not apply to the employment or
retention of attorneys:
(1) By the public utilities commission, [the]
labor and industrial relations appeals board, and [the] Hawaii labor
relations board;
(2) By any court or judicial or legislative office
of the State; provided further that if the attorney general is requested
to provide representation to a court or judicial office by the chief justice or
the chief justice's designee, or to a legislative office by the speaker of the
house of representatives and [the] president of the senate jointly, and
the attorney general declines to provide [such] the
representation on the grounds of conflict of interest, the attorney general
shall retain an attorney for the court, judicial[,] office, or
legislative office, subject to approval by the court, judicial[,] office,
or legislative office;
(3) By the legislative reference bureau;
(4) By any compilation commission that may be constituted
from time to time;
(5) By the real estate commission for any action
involving the real estate recovery fund;
(6) By the contractors license board for any
action involving the contractors recovery fund;
(7) By the office of Hawaiian affairs;
(8) By the department of commerce and consumer
affairs for the enforcement of violations of chapters 480 and 485A;
(9) As grand jury counsel;
(10) By the Hawaii health systems corporation, or
its regional system boards, or any of their facilities;
(11) By the auditor;
(12) By the office of ombudsman;
(13) By the insurance division;
(14) By the University of Hawaii;
(15) By the Kahoolawe island reserve commission;
(16) By the division of consumer advocacy;
(17) By the office of elections;
(18) By the campaign spending commission;
(19) By the Hawaii tourism authority, as provided
in section 201B-2.5;
(20) By the division of financial institutions;
(21) By the office of information practices;
(22) By the school facilities authority;
(23) By the Mauna Kea
stewardship and oversight authority; [or]
(24) By the Hawaii cannabis and hemp authority;
or
[(24)] (25) By a department, if the attorney
general, for reasons deemed by the attorney general to be good and sufficient,
declines to employ or retain an attorney for a department; provided further
that the governor waives the provision of this section."
2. By amending subsection (c) to read:
"(c) Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation or its regional system boards, the department of commerce and consumer affairs in prosecution of consumer complaints, the insurance division, the division of consumer advocacy, the University of Hawaii, the Hawaii tourism authority as provided in section 201B-2.5, the Mauna Kea stewardship and oversight authority, the Hawaii cannabis and hemp authority, the office of information practices, or as grand jury counsel, shall be a deputy attorney general."
SECTION 20. 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] cannabis [production centers or medical cannabis
dispensaries] businesses established and licensed pursuant to
chapter [329D; provided that the land is otherwise zoned for agriculture,
manufacturing, or retail purposes.] A, except as provided in section A-24."
SECTION 21. Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
(1) Commissioned and enlisted personnel of the Hawaii National Guard as such, and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;
(2) Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures. Any such contract may be for any period not exceeding one year;
(3) Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;
(4) Positions filled by the legislature or by either house or any committee thereof;
(5) Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;
(6) Positions filled by popular vote;
(7) Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;
(8) Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;
(9) One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);
(10) First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;
(11) (A) Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;
(B) Effective July 1, 2003, teaching assistants, educational assistants, bilingual/bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational/supportive services specialists, alternative school project coordinators, and communications aides in the department of education;
(C) The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and
(D) Members of the faculty of the University of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;
(12) Employees engaged in special, research, or demonstration projects approved by the governor;
(13) (A) Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs;
(B) Positions filled with students in accordance with guidelines for established state employment programs; and
(C) Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;
(14) A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;
(15) Positions filled by persons employed on
a fee, contract, or piecework basis, who may lawfully perform their duties
concurrently with their private business or profession or other private
employment and whose duties require only a portion of their time, if it is impracticable
to ascertain or anticipate the portion of time to be devoted to the service of
the State;
(16) Positions
of first deputies or first assistants of each department head appointed under
or in the manner provided in section 6, article V, of the Hawaii State
Constitution; three additional deputies or assistants either in charge of the
highways, harbors, and airports divisions or other functions within the
department of transportation as may be assigned by the director of
transportation, with the approval of the governor; one additional deputy
in the department of human services either in charge of welfare or other
functions within the department as may be assigned by the director of human
services;
four additional deputies in the department of health, each in charge of one of
the following: behavioral health,
environmental health, hospitals, and health resources administration, including
other functions within the department as may be assigned by the director of
health, with the approval of the governor; two additional deputies in charge of
the law enforcement programs, administration, or other functions within the
department of law enforcement as may be assigned by the director of law
enforcement, with the approval of the governor; three additional deputies each
in charge of the correctional institutions, rehabilitation services and
programs, and administration or other functions within the department of
corrections and rehabilitation as may be assigned by the director [or] of
corrections and rehabilitation, with the approval of the governor; an
administrative assistant to the state librarian; and an administrative
assistant to the superintendent of education;
(17) Positions specifically exempted from this part by any other law; provided that:
(A) Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and
(B) All of the positions defined by paragraph (9) shall be included in the position classification plan;
(18) Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;
(19) Household employees at the official residence of the president of the University of Hawaii;
(20) Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;
(21) Employees hired under the tenant hire
program of the Hawaii public housing authority; provided that [not] no
more than twenty-six per cent of the authority's workforce in any housing project
maintained or operated by the authority shall be hired under the tenant hire
program;
(22) Positions of the federally funded expanded food and nutrition program of the University of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;
(23) Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;
(24) The sheriff;
(25) A gender and other fairness coordinator hired by the judiciary;
(26) Positions in the Hawaii National Guard youth and adult education programs;
(27) In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;
(28) Administrative appeals hearing officers
in the department of human services;
(29) In the Med-QUEST division of the
department of human services, the division administrator, finance officer,
health care services branch administrator, medical director, and clinical
standards administrator;
(30) In
the director's office of the department of human services, the enterprise
officer, information security and privacy compliance officer, security and
privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant
information technology implementation manager, resource manager,
community/project development director, policy director, special assistant to
the director, and limited English proficiency project manager/coordinator;
(31) The Alzheimer's disease and related
dementia services coordinator in the executive office on aging;
(32) In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;
(33) The executive director and seven full-time administrative positions of the school facilities authority;
(34) Positions in the Mauna Kea stewardship and oversight authority;
(35) In the office of homeland security of
the department of law enforcement, the statewide interoperable communications
coordinator;
[and]
(36) In
the social services division of the department of human services, the
business technology analyst[.];
(37) In the Hawaii cannabis and hemp authority,
the executive director, chief compliance officer, chief equity officer, chief
financial officer, chief public health and environmental officer, chief
technology officer, executive secretary to the executive director, general
counsel, and hemp coordinator; and
(38) In the department of taxation, the tax law
change specialist to assist with the implementation of chapter B.
The director shall determine the
applicability of this section to specific positions.
Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."
SECTION 22. Section 91-13.5, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:
"(f) This section shall not apply to:
(1) Any proceedings of
the public utilities commission; [or]
(2) Any proceedings
of the cannabis and hemp control board or Hawaii cannabis and hemp authority;
or
[(2)] (3) Any county or county agency that is exempted
by county ordinance from this section."
SECTION 23. Section 201-13.9, Hawaii Revised Statutes, is amended to read as follows:
"§201-13.9 Medical cannabis;
economic and other data; collection.
(a) The department shall
continuously collect de‑identified information regarding the medical cannabis
[registry] registration and medical cannabis dispensary
programs established pursuant to [chapters 329 and 329D,] chapter A,
including but not limited to information regarding the:
(1) Quantities of medical cannabis cultivated and dispensed;
(2) Number of qualifying patients;
(3) Geographic areas in which medical cannabis is cultivated and consumed;
(4) Prices of medical cannabis and related products;
(5) Number of employment opportunities related to medical cannabis; and
(6) Economic impact of medical cannabis cultivation and sales.
(b)
The [department of health] Hawaii cannabis and hemp authority
and medical cannabis dispensaries licensed pursuant to chapter [329D]
A shall provide de-identified aggregated data as required by the
department pursuant to this section.
(c)
Upon request, the department shall provide an analysis of the aggregated
de-identified data to the [department of health] Hawaii cannabis and
hemp authority and [the] legislature."
SECTION 24. 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 [medical cannabis dispensary] the
activities of a cannabis business pursuant to chapter [329D] A
shall not be considered an eligible business activity for the purposes of this
chapter."
SECTION 25. Section 231-8.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) If the requirements of subsection (c) are
satisfied, the department may require electronic filing of any tax return,
application, report, or other document required under the provisions of title
14 administered by the department for the following taxpayers:
(1) For withholding tax filings required under
chapter 235, only employers whose total tax liability under sections 235-61 and
235-62 for the calendar or fiscal year exceeds $40,000;
(2) For income tax filings required under chapter
235, only taxpayers who are subject to tax under section 235-71, 235-71.5, or
235-72;
(3) For general excise tax filings required under
chapter 237, only taxpayers whose total tax liability under chapter 237 for the
calendar or fiscal year exceeds $4,000;
(4) For transient accommodations tax filings
required under chapter 237D, only operators and plan managers whose total tax
liability under chapter 237D for the calendar or fiscal year exceeds $4,000;
and
(5) For filings required under the following
chapters, all taxpayers subject to tax under those chapters:
(A) 236E;
(B) 239;
(C) 241;
(D) 243;
(E) 244D;
(F) 245; [and]
(G) 251[.]; and
(H) B."
SECTION 26. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (v) to read as follows:
"(v) Section 280E (with
respect to expenditures in connection with the illegal sale of drugs) of the
Internal Revenue Code shall be operative for the purposes of this chapter[,
except]; provided that section 280E shall not be operative with
respect to the [production] cultivation, processing, and sale of [medical]
cannabis [and manufactured cannabis products] by [dispensaries] cannabis
businesses licensed or permitted under chapter [329D and their subcontractors,
as defined in section 329D-1.] A.
For the purposes of this subsection, "cannabis" has the same
meaning as defined in section A-3."
SECTION 27. Section 237-24.3, Hawaii Revised Statutes, is amended to read as follows:
"§237-24.3 Additional amounts not taxable. In addition to the amounts not taxable under section 237-24, this chapter shall not apply to:
(1) Amounts received from the loading, transportation, and unloading of agricultural commodities shipped for a producer or produce dealer on one island of this State to a person, firm, or organization on another island of this State. The terms "agricultural commodity", "producer", and "produce dealer" shall be defined in the same manner as they are defined in section 147-1; provided that agricultural commodities need not have been produced in the State;
(2) Amounts received by the manager, submanager, or board of directors of:
(A) An association of a condominium property regime established in accordance with chapter 514B or any predecessor thereto; or
(B) A nonprofit homeowners or community association incorporated in accordance with chapter 414D or any predecessor thereto and existing pursuant to covenants running with the land,
in reimbursement of sums paid for common expenses;
(3) Amounts received or accrued from:
(A) The loading or unloading of cargo from ships, barges, vessels, or aircraft, including stevedoring services as defined in section 382-1, whether or not the ships, barges, vessels, or aircraft travel between the State and other states or countries or between the islands of the State;
(B) Tugboat services including pilotage fees performed within the State, and the towage of ships, barges, or vessels in and out of state harbors, or from one pier to another;
(C) The transportation of pilots or governmental officials to ships, barges, or vessels offshore; rigging gear; checking freight and similar services; standby charges; and use of moorings and running mooring lines; and
(D) Wharfage and demurrage imposed under chapter 266 that is paid to the department of transportation;
(4) Amounts received
by an employee benefit plan by way of contributions, dividends, interest, and
other income; and amounts received by a nonprofit organization or office, as
payments for costs and expenses incurred for the administration of an employee
benefit plan; provided that this exemption shall not apply to any gross rental
income or gross rental proceeds received after June 30, 1994, as income from
investments in real property in this State; [and] provided further that
gross rental income or gross rental proceeds from investments in real property
received by an employee benefit plan after June 30, 1994, under written
contracts executed [prior to] before July 1, 1994, shall not be
taxed until the contracts are renegotiated, renewed, or extended, or until
after December 31, 1998, whichever is earlier.
For the purposes of this paragraph, "employee benefit plan"
means any plan as defined in title 29 United States Code section 1002(3), as amended;
(5) Amounts received for purchases made with United States Department of Agriculture food coupons under the federal food stamp program, and amounts received for purchases made with United States Department of Agriculture food vouchers under the Special Supplemental Foods Program for Women, Infants and Children;
(6) Amounts received by a hospital, infirmary, medical clinic, health care facility, pharmacy, or a practitioner licensed to administer the drug to an individual for selling prescription drugs or prosthetic devices to an individual; provided that this paragraph shall not apply to any amounts received for services provided in selling prescription drugs or prosthetic devices. As used in this paragraph:
"Prescription
drugs" are those drugs defined under section 328-1 and dispensed by
filling or refilling a written or oral prescription by a practitioner licensed
under law to administer the drug and sold by a licensed pharmacist under
section 328-16 or practitioners licensed to administer drugs; provided that
"prescription drugs" shall not include any cannabis [or
manufactured cannabis products] authorized pursuant to [chapters 329 and
329D;] chapter A; and
"Prosthetic
device" means any artificial device or appliance, instrument, apparatus, or
contrivance, including their components, parts, accessories, and replacements
thereof, used to replace a missing or surgically removed part of the human
body, which is prescribed by a licensed practitioner of medicine, osteopathy,
or podiatry and that is sold by the practitioner or that is dispensed and sold
by a dealer of prosthetic devices; provided that "prosthetic device"
shall not mean any auditory, ophthalmic, dental, or ocular device or appliance,
instrument, apparatus, or contrivance;
(7) Taxes on transient accommodations imposed by chapter 237D and passed on and collected by operators holding certificates of registration under that chapter;
(8) Amounts received as dues by an unincorporated merchants association from its membership for advertising media, promotional, and advertising costs for the promotion of the association for the benefit of its members as a whole and not for the benefit of an individual member or group of members less than the entire membership;
(9) Amounts received by a labor organization for real property leased to:
(A) A labor organization; or
(B) A trust fund established by a labor organization for the benefit of its members, families, and dependents for medical or hospital care, pensions on retirement or death of employees, apprenticeship and training, and other membership service programs.
As used in this paragraph, "labor organization" means a labor organization exempt from federal income tax under section 501(c)(5) of the Internal Revenue Code, as amended;
(10) Amounts received
from foreign diplomats and consular officials who are holding cards issued or
authorized by the United States Department of State granting them an exemption
from state taxes; [and]
(11) Amounts received
as rent for the rental or leasing of aircraft or aircraft engines used by the
lessees or renters for interstate air transportation of passengers and
goods. For purposes of this paragraph,
payments made pursuant to a lease shall be considered rent regardless of
whether the lease is an operating lease or a financing lease. The definition of "interstate air
transportation" is the same as in 49 U.S.C. section 40102[.];
and
(12) Amounts
received from:
(A) Sales
of cannabis, whether made at retail or wholesale;
(B) Sales
of medical cannabis; and
(C) Taxes on the retail sale of cannabis or sale of medical cannabis imposed by chapter B and passed on and collected by persons holding permits under chapter B."
SECTION 28. Section 245-1, Hawaii Revised Statutes, is amended by amending the definition of "e-liquid" to read as follows:
""E-liquid" means any liquid or like substance, which may or may not contain nicotine, that is designed or intended to be used in an electronic smoking device, whether or not packaged in a cartridge or other container.
"E-liquid" does not include:
(1) Prescription drugs;
(2) Cannabis [for
medical use pursuant to chapter 329 or manufactured], cannabis
products, or cannabis accessories authorized pursuant to chapter [329D;]
A; or
(3) Medical devices
used to aerosolize, inhale, or ingest prescription drugs[, including
manufactured cannabis products described in section 329D-10]."
SECTION 29. Section 322-1, Hawaii Revised Statutes, is amended to read as follows:
"§322-1 Removal[,];
prevention[.]; definition.
(a) The department of
health and its agents shall examine into all nuisances, foul or noxious odors,
gases or vapors, water in which mosquito larvae exist, sources of filth, and
all causes of sickness or disease, on shore, and in any vessel, [which] that
may be known to [them] the department or brought to [their]
the department's attention, [which] that in [their]
the department's opinion are dangerous or injurious to health, and into
any and all conditions created or existing [which] that cause or
tend to cause sickness or disease or to be dangerous or injurious to health,
and shall cause the same to be abated, destroyed, removed, or prevented.
(b) For purposes of this part[, a nuisance
shall include:]:
"Cannabis product" has
the same meaning as defined in section A-3.
"Hemp product" has the
same meaning as defined in section A-3.
"Nuisance":
(1) Includes:
(A) Toxic materials that are used in or by-products of the manufacture or conversion of methamphetamine, and clandestine drug labs that manufacture methamphetamine; and
[(2)] (B) Odors and filth resulting from a person
feeding feral birds[.]; and
(2) Does not
include a cannabis product or hemp product or any foul or noxious odor, gas, or
vapor derived from a cannabis product or hemp product."
SECTION 30. 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.] acting in strict compliance with chapter A with respect to cannabis."
SECTION 31. Section 378-2.5, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) Notwithstanding
subsections (b) and (c), the requirement that inquiry into and consideration of
a prospective employee's conviction record may take place only after the
individual has received a conditional job offer, and the limitation to the most
recent seven-year period for felony convictions and the most recent five-year
period for misdemeanor convictions, excluding the period of incarceration,
shall not apply to employers who are expressly permitted to inquire into an
individual's criminal history for employment purposes pursuant to any federal
or state law other than subsection (a), including:
(1) The
State or any of its branches, political subdivisions, or agencies pursuant to
sections 78-2.7 and 831-3.1; provided that any state law permitting the State
and any of its branches, political subdivisions, agencies, or semi-autonomous
public bodies corporate and politic to conduct more extensive inquiries into an
individual's criminal history for employment purposes than those permitted
under this section shall prevail;
(2) The
department of education pursuant to section 302A‑601.5;
(3) The
department of health with respect to employees, providers, or subcontractors in
positions that place them in direct contact with clients when providing
non-witnessed direct mental health services pursuant to section 321-171.5;
(4) The
judiciary pursuant to section 571-34;
(5) The
counties pursuant to section 846-2.7(b)(5), (33), (34), (35), (36), and (38);
(6) Armed
security services pursuant to section 261-17(b);
(7) Providers
of a developmental disabilities domiciliary home pursuant to section 321-15.2;
(8) Private
schools pursuant to sections 302C-1 and 378‑3(8);
(9) Financial
institutions in which deposits are insured by a federal agency having
jurisdiction over the financial institution pursuant to section 378-3(9);
(10) Detective
agencies and security guard agencies pursuant to sections 463-6(b) and
463-8(b);
(11) Employers
in the business of insurance pursuant to section 431:2-201.3;
(12) Employers
of individuals or supervisors of individuals responsible for screening
passengers or property under title 49 United States Code section 44901 or
individuals with unescorted access to an aircraft of an air carrier or foreign
carrier or in a secured area of an airport in the United States pursuant to
title 49 United States Code section 44936(a);
(13) The
department of human services pursuant to sections 346-2.5, 346-97, and 352-5.5;
(14) The
public library system pursuant to section 302A‑601.5;
(15) The
department of law enforcement pursuant to section 353C-5;
(16) The
board of directors of a cooperative housing corporation or the manager of a
cooperative housing project pursuant to section 421I-12;
(17) The
board of directors of an association under chapter 514B, or the managing agent
or resident manager of a condominium pursuant to section 514B-133;
(18) The department of
health pursuant to section 321-15.2; [and]
(19) The department of
corrections and rehabilitation pursuant to section 353-1.5[.];
(20) The cannabis
and hemp control board and Hawaii cannabis and hemp authority pursuant to
sections A-12 and A-27; and
(21) A
licensed business pursuant to section A-74."
SECTION 32. Section 421J-16, Hawaii Revised Statutes, is amended to read as follows:
"§421J-16 Medical cannabis;
discrimination. A provision in any
association document allowing for any of the discriminatory practices listed in
section 515-3(a)(1) to (7) against a person residing in a unit who has a valid [certificate]
medical cannabis registration card for the medical use of cannabis as
provided in section [329-123] A-47 in any form is void, unless
the association document prohibits the smoking of tobacco and the medical
cannabis is used by means of smoking.
Nothing in this section shall be construed to diminish the obligation of
a planned community association to provide reasonable accommodations for
persons with disabilities pursuant to section 515-3(a)(9)."
SECTION 33. Section 453-8, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) In addition to any other actions authorized by law, any license to practice medicine and surgery may be revoked, limited, or suspended by the board at any time in a proceeding before the board, or may be denied, for any cause authorized by law, including but not limited to the following:
(1) Procuring, or aiding or abetting in procuring, an abortion that is unlawful under the laws of this State or that would be unlawful under the laws of this State if performed within this State;
(2) Employing any person to solicit patients for one's self;
(3) Engaging in false, fraudulent, or deceptive advertising, including but not limited to:
(A) Making excessive claims of expertise in one or more medical specialty fields;
(B) Assuring a permanent cure for an incurable disease; or
(C) Making any untruthful and improbable statement in advertising one's medical or surgical practice or business;
(4) Being habituated to the excessive use of drugs or alcohol; or being addicted to, dependent on, or a habitual user of a narcotic, barbiturate, amphetamine, hallucinogen, or other drug having similar effects;
(5) Practicing medicine while the ability to practice is impaired by alcohol, drugs, physical disability, or mental instability;
(6) Procuring a license through fraud, misrepresentation, or deceit, or knowingly permitting an unlicensed person to perform activities requiring a license;
(7) Professional misconduct, hazardous negligence causing bodily injury to another, or manifest incapacity in the practice of medicine or surgery;
(8) Incompetence or multiple instances of negligence, including but not limited to the consistent use of medical service, which is inappropriate or unnecessary;
(9) Conduct or practice contrary to recognized standards of ethics of the medical profession as adopted by the Hawaii Medical Association, the American Medical Association, the Hawaii Association of Osteopathic Physicians and Surgeons, or the American Osteopathic Association;
(10) Violation of the conditions or limitations upon which a limited or temporary license is issued;
(11) Revocation,
suspension, or other disciplinary action by another state or federal agency of
a license, certificate, or medical privilege, except when the revocation,
suspension, or other disciplinary action was based on the provision or
assistance in receipt or provision of medical, surgical, pharmaceutical,
counseling, or referral services relating to the human reproductive system,
including but not limited to services relating to pregnancy, contraception, or
the termination of a pregnancy, so long as the provision or assistance in
receipt or provision of the services was in accordance with the laws of this
State or would have been in accordance with the laws of this State if it
occurred within this State;
(12) Conviction,
whether by nolo contendere or otherwise, of a penal offense substantially
related to the qualifications, functions, or duties of a physician or
osteopathic physician, notwithstanding any statutory provision to the contrary,
except when the conviction was based on the provision or assistance in receipt
or provision of medical, surgical, pharmaceutical, counseling, or referral
services relating to the human reproductive system, including but not limited
to services relating to pregnancy, contraception, or the termination of a
pregnancy, so long as the provision or assistance in receipt or provision of
the services was in accordance with the laws of this State or would have been
in accordance with the laws of this State if it occurred within this State;
(13) Violation of
chapter 329, the uniform controlled substances act, or any rule adopted
thereunder except as provided in section [329-122;] A-49;
(14) Failure to report to the board, in writing, any disciplinary decision issued against the licensee or the applicant in another jurisdiction within thirty days after the disciplinary decision is issued; or
(15) Submitting to or filing with the board any notice, statement, or other document required under this chapter, which is false or untrue or contains any material misstatement or omission of fact."
SECTION 34. Section 514B-113, Hawaii Revised Statutes, is amended to read as follows:
"§514B-113
Medical cannabis; discrimination.
A
provision in any articles of incorporation, declaration, bylaws, administrative
rules, house rules, or association documents of a condominium allowing for any
of the discriminatory practices listed in section 515-3(a)(1) to (7) against a
person residing in a unit who has a valid [certificate] medical
cannabis registration card for the medical use of cannabis as provided in
section [329-123] A-47 in any form is void, unless the documents
prohibit the smoking of tobacco and the medical cannabis is used by means of
smoking. Nothing in this section shall
be construed to diminish the obligation of a condominium association to provide
reasonable accommodations for persons with disabilities pursuant to section
515-3(a)(9)."
SECTION 35. Section 521-39, Hawaii Revised Statutes, is amended to read as follows:
"§521-39 Medical cannabis; tenant
use; eviction. A provision in a
rental agreement allowing for eviction of a tenant who has a valid [certificate]
medical cannabis registration card for the medical use of cannabis as
provided in section [329-123] A-47 in any form is void, unless
the rental agreement allows for eviction for smoking tobacco and the medical cannabis
is used by means of smoking; provided that this section shall not apply where
the articles of incorporation, declaration, bylaws, administrative rules, house
rules, association documents, or a similar document of a condominium property
regime or planned community association prohibits the [medical] use of cannabis."
SECTION 36. Section 709-903.5, Hawaii Revised Statutes, is amended by amending subsection (1) to read as follows:
"(1) Except as provided in
subsection (2), a person commits the offense of endangering the welfare of a
minor in the first degree if, having care or custody of a minor, the person:
(a) Intentionally or knowingly allows another person to inflict serious or substantial bodily injury on the minor; or
(b) Intentionally or
knowingly causes or permits the minor to inject, ingest, inhale, or otherwise
introduce into the minor's body any controlled substance listed in sections
329-14, 329-16, 329-18, and 329-20 that has not been prescribed by a physician
for the minor, except as permitted under section [329-122.] A-41."
SECTION 37. Section 709-904, Hawaii Revised Statutes, is amended by amending subsection (1) to read as follows:
"(1) Except as provided in
section 709-903.5(2), a person commits the offense of endangering the welfare
of a minor in the second degree if, having care or custody of a minor, the
person:
(a) Recklessly allows another person to inflict serious or substantial bodily injury on the minor; or
(b) Recklessly causes
or permits the minor to inject, ingest, inhale, or otherwise introduce into the
minor's body any controlled substance listed in sections 329-14, 329-16,
329-18, and 329-20 that has not been prescribed by a physician for the minor,
except as permitted under section [329-122.] A-41. This subsection shall not apply to nursing
mothers who may cause the ingestion or introduction of detectable amounts of
any controlled substance listed in sections 329-14, 329-16, 329-18, and 329-20
to their minor children through breastfeeding."
SECTION 38. Section 712-1240.1, Hawaii Revised Statutes, is amended by amending subsection (2) to read as follows:
"(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.]
pursuant to chapter A."
SECTION 39. Section 712-1244, Hawaii Revised Statutes, is amended by amending subsection (1) to read as follows:
"(1) A person commits the offense of promoting a harmful drug in the first degree if the person knowingly:
(a) Possesses one hundred or more capsules or tablets or dosage units containing one or more of the harmful drugs or one or more of the marijuana concentrates, or any combination thereof;
(b) Possesses one or more preparations, compounds, mixtures, or substances, of an aggregate weight of one ounce or more containing one or more of the harmful drugs or one or more of the marijuana concentrates, or any combination thereof;
(c) Distributes twenty-five or more capsules or tablets or dosage units containing one or more of the harmful drugs or one or more of the marijuana concentrates, or any combination thereof;
(d) Distributes one or
more preparations, compounds, mixtures, or substances, of an aggregate weight
of one-eighth ounce or more, containing one or more of the harmful drugs or one
or more of the marijuana concentrates, or any combination thereof; [or]
(e) Distributes any
harmful drug [or any marijuana concentrate] in any amount to a minor[.];
or
(f) Distributes any marijuana concentrate in any amount to a person under the age of twenty-one."
SECTION 40. Section 712-1249, Hawaii Revised Statutes, is amended to read as follows:
"§712-1249 Promoting a detrimental drug in the third degree.
(1) A person commits the offense
of promoting a detrimental drug in the third degree if [the]:
(a) The person is
under the age of twenty-one and knowingly possesses any marijuana [or];
(b) The person is
at least twenty-one years of age and knowingly possesses an amount of marijuana
that exceeds the possession limit; or
(c) The person knowingly possesses any Schedule V substance in any amount.
(2)
Promoting a detrimental drug in the third degree [is] shall be
a petty misdemeanor; provided that possession of three grams or less of
marijuana [is] by a person under the age of twenty-one shall be a
violation, punishable by a fine of no more than $130. A person found responsible for a violation
under this section may request, and shall be granted, a penalty of up to ten
hours of community service in lieu of a fine.
(3) As used in this section, "possession
limit" means:
(a) One ounce of
cannabis flower and up to five grams of adult-use cannabis products as
calculated using information provided pursuant to section A-113(d); and
(b) Within a
person's private residence only, up to ten ounces of adult-use cannabis
produced by the person's personal cultivation of cannabis; provided that no
more than two pounds of cannabis in total shall be stored at any private
residence, regardless of the number of people residing there."
SECTION 41. Section 712-1249.5, Hawaii Revised Statutes, is amended by amending subsection (1) to read as follows:
"(1) A person commits the offense of commercial promotion of marijuana in the second degree if the person knowingly:
(a) Possesses marijuana having an aggregate weight of two pounds or more;
(b) Distributes marijuana having an aggregate weight of one pound or more;
(c) Possesses, cultivates, or has under the person's control fifty or more marijuana plants;
(d) Cultivates on land owned by another person, including land owned by the government or other legal entity, any marijuana plant, unless the person has the express permission from the owner of the land to cultivate the marijuana or the person has a legal or an equitable ownership interest in the land or the person has a legal right to occupy the land; or
(e) Sells or barters [any
marijuana or] any Schedule V substance in any amount to a minor."
SECTION 42. Section 712A-4, Hawaii Revised Statutes, is amended to read as follows:
"§712A-4 Covered offenses. Offenses for which property is subject to
forfeiture under this chapter are:
(a) All offenses that specifically authorize forfeiture;
(b) Murder; kidnapping; labor trafficking; unlicensed sale of liquor; unlicensed manufacture of liquor; gambling; criminal property damage; robbery; bribery; extortion; theft; unauthorized entry into motor vehicle; burglary; money laundering; trademark counterfeiting; insurance fraud; promoting a dangerous, harmful, or detrimental drug; commercial promotion of marijuana; methamphetamine trafficking; manufacturing of a controlled substance with a child present; promoting child abuse; promoting prostitution; sex trafficking; commercial sexual exploitation of a minor; habitual commercial sexual exploitation; or electronic enticement of a child that is chargeable as a felony offense under state law;
(c) The manufacture, sale, or distribution of a controlled substance in violation of chapter 329, promoting detrimental drugs or intoxicating compounds, promoting pornography, promoting pornography for minors, or commercial sexual exploitation near schools or public parks, which is chargeable as a felony or misdemeanor offense, but not as a petty misdemeanor, under state law; provided that the activities authorized under chapter A shall not be subject to forfeiture under this chapter; and
(d) The attempt, conspiracy, solicitation, coercion, or intimidation of another to commit any offense for which property is subject to forfeiture."
SECTION 43. 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 resource family 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 corrections and rehabilitation on employees and prospective employees who are directly involved with the treatment and care of persons committed to a correctional facility as provided by section 353-1.5 and the department of law enforcement on employees and prospective employees whose duties involve or may involve the exercise of 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 and volunteers, as provided by sections 346-2.5 and 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;
(C) Current or prospective members of the corporation board or regional system board; or
(D) Current or prospective volunteers, providers, or contractors,
in any of the corporation's 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 agency's 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] Hawaii
cannabis and hemp authority or its designee on all license and permit
applicants, [licensees,] current or prospective employees[,]
and 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);] of licensed businesses, and current and prospective laboratory
agents of independent laboratories, as provided by section A-74; current or
prospective members of the cannabis and hemp control board, as provided by
section A-12; and current or prospective employees, contractors, and subcontractors
and current or prospective employees of the contractors and subcontractors of
the Hawaii cannabis and hemp authority, as provided by section A-27;
(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, on individuals registering their firearms pursuant to section 134-3, and on applicants for new or renewed licenses to carry a pistol or revolver and ammunition pursuant to section 134-9;
(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 depository's 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 licensee's 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, and on current or prospective employees, volunteers,
contractors, or contractors' employees or volunteers, subcontractors, or
subcontractors' employees or volunteers, whose position places or would place
them in close proximity to minors, young adults, or vulnerable adults, 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) Any other organization, entity, or the State, its branches, political subdivisions, or agencies as may be authorized by state law."
SECTION 44. Act 14, Session Laws of Hawaii 2020, as amended by section 2 of Act 137, Session Laws of Hawaii 2022, as amended by section 15 of Act 263, Session Laws of Hawaii 2023, is amended by amending section 9 to read as follows:
"SECTION 9. This Act shall take effect upon its approval,
and shall be repealed on July 1, [2027;] 2024; provided that the
definition of "marijuana" in section 329–1, Hawaii Revised Statutes,
and the definitions of "marijuana" and "marijuana
concentrate" in section 712–1240, Hawaii Revised Statutes, shall be
reenacted in the form in which they read on the day prior to the effective date
of this Act."
SECTION 45. Act 263, Session Laws of Hawaii 2023, is amended by amending section 19 to read as follows:
"SECTION 19. This Act shall take effect on July 1, 2023,
and shall be repealed on July 1, [2027.] 2024; provided that part III
of this Act shall be repealed on August 30, 2024."
SECTION 46. Chapter 329, part IX, Hawaii Revised Statutes, is repealed.
SECTION 47. Chapter 329D, Hawaii Revised Statutes, is repealed.
PART VI
SECTION 48. (a) There shall be established the cannabis and hemp control implementation advisory committee that shall advise and assist the cannabis and hemp control board in developing or revising proposed laws and rules to carry out and effectuate the purposes of chapter A, Hawaii Revised Statutes. The cannabis and hemp control implementation advisory committee shall be placed within the department of commerce and consumer affairs for administrative purposes only.
(b) The cannabis and hemp control implementation advisory committee shall consist of fifteen members to be appointed by the governor; provided that five of the members shall be representatives of the hemp industry; provided further that at least three of those members shall be hemp cultivators pursuant to section A-132, Hawaii Revised Statutes.
(c) Members of the cannabis and hemp control implementation advisory committee shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.
(d) A majority of the members of the cannabis and hemp control implementation advisory committee present and voting shall constitute a quorum to conduct business, and the concurrence of a majority of all members present shall be necessary to make any action of the advisory committee valid.
(e) No member of the cannabis and hemp control implementation advisory committee shall be subject to chapter 84, Hawaii Revised Statutes, solely because of the member's service on the committee.
(f) The cannabis and hemp control implementation advisory committee shall be dissolved on December 31, 2025.
SECTION 49. Licenses previously issued under chapters 328G or 329D, Hawaii Revised Statutes, shall remain in full effect until the previously issued licenses expire on their own terms; provided that the licensees shall be regulated under chapter A, Hawaii Revised Statutes, and rules adopted pursuant to chapter A, Hawaii Revised Statutes.
SECTION 50. (a) Each existing medical cannabis dispensary whose license remains effective pursuant to section 49 of this Act may convert their operation into licenses under chapter A, Hawaii Revised Statutes, before January 1, 2025; provided that the existing medical cannabis dispensary may only convert existing licensed operations and premises; provided further that an existing medical cannabis dispensary may only be issued up to three cannabis cultivator licenses, three cannabis processor licenses, three medical cannabis dispensary licenses, and three retail cannabis store licenses, but not to exceed nine licenses in total, in accordance with chapter A, Hawaii Revised Statutes, and rules adopted pursuant to chapter A, Hawaii Revised Statutes.
(b) To convert an existing medical cannabis dispensary license into a license or licenses under chapter A, Hawaii Revised Statutes, before the expiration of the existing license, but no later than October 1, 2025, the existing medical cannabis dispensary shall apply to the Hawaii cannabis and hemp authority, on forms prescribed by the authority, and shall establish to the authority's satisfaction:
(1) The existing medical cannabis dispensary's existing ownership structure;
(2) All persons with a direct or indirect interest in the existing medical cannabis dispensary;
(3) The existing medical cannabis dispensary is currently in full compliance with the terms and conditions under which the license was issued;
(4) The existing medical cannabis dispensary meets the application criteria required by chapter A, Hawaii Revised Statutes, and rules adopted pursuant to chapter A, Hawaii Revised Statutes;
(5) The existing medical cannabis dispensary is in compliance with any other requirements of chapter A, Hawaii Revised Statutes, including the ownership restrictions; and
(6) The existing medical cannabis dispensary is capable of sustaining the product supply and access for the registered qualifying patients they serve.
(c) An existing medical cannabis dispensary shall pay a one-time conversion fee of $50,000 per retail dispensing location being converted and $25,000 per production facility being converted. The one-time conversion fee may be paid in separate installments; provided that the conversion fee shall be paid in full on or before January 1, 2026. If the conversion fee is not paid by January 1, 2026, any license held by the licensee shall be subject to revocation in accordance with chapter A, Hawaii Revised Statutes, and rules adopted pursuant to chapter A, Hawaii Revised Statutes.
(d) The Hawaii cannabis and hemp authority shall audit the existing medical cannabis dispensary ownership to ensure compliance with the ownership restrictions in chapter A, Hawaii Revised Statutes.
(e) Upon full or partial payment of the conversion fee, and a complete and valid conversion application, the Hawaii cannabis and hemp authority shall issue licenses under chapter A, Hawaii Revised Statutes, for the premises and operations of the existing medical cannabis dispensary that have been approved for conversion by the authority. The converted licenses shall be issued no later than January 1, 2025.
SECTION 51. All functions of the department of health office of medical cannabis control and regulation shall be transferred to the Hawaii cannabis and hemp authority.
All employees who occupy civil service positions and whose functions are transferred by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.
Any employee who, before this Act, is exempt from civil service and is transferred as a consequence of this Act may continue to retain the employee's exempt status but shall not be appointed to a civil service position because of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, any vacation and sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employee possesses legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The Hawaii cannabis and hemp authority to which the employee is transferred may prescribe the duties and qualifications of the employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.
SECTION 52. All leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of health or department of agriculture pursuant to the provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the Hawaii cannabis and hemp authority by this Act shall remain in full force and effect. On the effective date of this Act, every reference to the department of health, director of health, department of agriculture, or chairperson of the board of agriculture in those leases, contracts, loans, agreements, permits, or other documents shall be construed as a reference to the Hawaii cannabis and hemp authority or executive director of the Hawaii cannabis and hemp authority, as appropriate.
SECTION 53. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of health or department of agriculture relating to the functions transferred to the Hawaii cannabis and hemp authority shall be transferred with the functions to which they relate.
SECTION 54. All rules, policies, procedures, guidelines, and other material adopted or developed by the department of health or department of agriculture to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the cannabis and hemp control board, Hawaii cannabis and hemp authority, or executive director of the Hawaii cannabis and hemp authority by this Act, as appropriate, shall remain in full force and effect until amended or repealed by the cannabis and hemp control board. In the interim, every reference to the department of health, director of health, department of agriculture, or chairperson of the board of agriculture in those rules, policies, procedures, guidelines, and other material is amended to refer to the cannabis and hemp control board, Hawaii cannabis and hemp authority, or executive director of the Hawaii cannabis and hemp authority, as appropriate.
SECTION 55. The right of appeal from administrative actions or determinations as provided by law shall not be impaired by this Act. Except as otherwise provided by this Act, whenever a right of appeal from administrative actions or determinations is provided by law to or from any officer, board, department, bureau, commission, administrative agency, or instrumentality of the State, or any of the programs of which, that is transferred by this Act to the cannabis and hemp control board, Hawaii cannabis and hemp authority, or executive director of the Hawaii cannabis and hemp authority, as the case may be, the right of appeal shall lie to or from the cannabis and hemp control board, Hawaii cannabis and hemp authority, or executive director of the Hawaii cannabis and hemp authority, as the case may be, when the transfer is made. The right of appeal shall exist to the same extent and in accordance with the applicable procedures that are in effect immediately before the effective date of the applicable part.
If the provisions of the preceding paragraph relating to appeals cannot be effected by reason of abolishment, splitting, or shifting of functions or otherwise, the right of appeal shall lie to the circuit court of the State pursuant to the Hawaii rules of civil procedure.
SECTION 56. Notwithstanding any other provision of law to the contrary, from the effective date of this Act to December 31, 2027, the Hawaii cannabis and hemp authority shall be exempt from procurement requirements under chapter 103D, Hawaii Revised Statutes, if the procurement is for:
(1) Banking services for the Hawaii cannabis and hemp authority or department of taxation, or both, to collect fees and tax revenue;
(2) Banking services to help support cannabis businesses to transition from an all-cash system;
(3) A consultant to support the Hawaii cannabis and hemp authority in the process for cannabis licensure, including services related to investigations and the financial or criminal history review of applicants or licensed businesses;
(4) A consultant to support the Hawaii cannabis and hemp authority to draft rules to implement this chapter;
(5) A consultant to provide technical assistance regarding the social equity program;
(6) Communication services for public and consumer education campaigns on cannabis laws and rules and potential health and safety risks associated with cannabis use;
(7) Establishing a state cannabis testing facility; and
(8) A consultant to support the Hawaii cannabis and hemp authority in administering grant programs.
SECTION 57. The following positions are established within the Hawaii cannabis and hemp authority:
(1) Executive director;
(2) Executive secretary to the executive director;
(3) Chief financial officer;
(4) Chief equity officer;
(5) General counsel;
(6) Chief public health and environmental officer;
(7) Chief technology officer;
(8) Chief compliance officer; and
(9) Hemp coordinator.
SECTION 58. There is appropriated out of the
general revenues of the State of Hawaii the sum of
$ or so much
thereof as may be necessary for fiscal year 2024-2025 to be deposited into the cannabis
regulation, nuisance abatement, and law enforcement special fund.
SECTION 59. There is appropriated out of the cannabis
regulation, nuisance abatement, and law enforcement special fund the sum of
$ or so much
thereof as may be necessary for fiscal year 2024-2025 for the hiring and
filling of the full-time equivalent (
FTE) positions established by this Act and
full-time equivalent ( FTE) positions within the
Hawaii cannabis and hemp authority established by this Act, the administration
and enforcement of the Hawaii cannabis law by the Hawaii cannabis and hemp
authority, and other associated administrative costs.
The sum appropriated shall be expended by
the Hawaii cannabis and hemp authority for the purposes of this Act.
SECTION 60. The following positions are established
within the department of taxation to implement part III of this Act:
(1) full-time equivalent ( FTE) auditor positions;
(2) full-time equivalent ( FTE) cashier position;
(3) full-time equivalent ( FTE) special enforcement section investigator positions;
(4) full-time equivalent ( FTE) tax information technician positions; and
(5) full-time equivalent ( FTE) tax law change specialist positions.
In filling these positions, the director of taxation may appoint tax law change specialists who shall be exempt from chapter 76, Hawaii Revised Statutes.
SECTION 61. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the department of taxation to implement part III of this Act, including the hiring and filling of the full-time equivalent ( FTE) positions within the department of taxation established by this Act, costs for project management services, costs for building and security improvements, and other associated administrative costs.
The sum appropriated shall be expended by the department of taxation for the purposes of this Act.
SECTION 62. The following positions are established within the department of the attorney general for the drug nuisance abatement unit pursuant to section 28-131, Hawaii Revised Statutes, to carry out part II of this Act:
(1) full-time equivalent ( FTE) supervising deputy attorney general position;
(2) full-time equivalent ( FTE) deputy attorney general position;
(3) full-time equivalent ( FTE) administrative assistant position;
(4) full-time equivalent ( FTE) supervisory special agent (investigator VI) position; and
(5) full-time equivalent ( FTE) special agent (investigator V) positions.
SECTION 63. There is appropriated out of the cannabis
regulation, nuisance abatement, and law enforcement special fund the sum of $ or so much thereof as may be
necessary for fiscal year 2024-2025 for the department of the attorney general
to implement part II of this Act, including the hiring and filling of the
full-time equivalent (
FTE) positions within the
department of the attorney general established by this Act, equipment costs,
and other associated administrative costs.
The sum appropriated shall be expended by
the department of the attorney general for the purposes of this Act.
SECTION 64. The following positions are established within the department of law enforcement for the cannabis enforcement unit pursuant to part II of this Act:
(1) full-time equivalent ( FTE) permanent supervisory positions;
(2) full-time equivalent ( FTE) permanent investigator or detective positions; and
(3) full-time equivalent ( FTE) permanent administrative support positions.
SECTION 65. There is appropriated out of the cannabis
regulation, nuisance abatement, and law enforcement special fund the sum of $
or so much thereof as may be
necessary for fiscal year 2024-2025 for the department of law enforcement to implement
part II of this Act, including the hiring and filling of the
full-time equivalent (
FTE) positions within the department
of law enforcement established by this Act, and other associated administrative
costs.
The sum appropriated shall be expended by
the department of law enforcement for the purposes of this Act.
SECTION 66. There is appropriated out of the general
revenues of the State of Hawaii the sum of $ or so much thereof as may be
necessary for fiscal year 2024-2025 to be deposited into the cannabis social
equity, public health and education, and public safety special fund.
SECTION 67. There is appropriated out of the cannabis
social equity, public health and education, and public safety special fund the
sum of $ or so much thereof as may be
necessary for fiscal year 2024-2025 for the implementation and administration
of the social equity program established by this Act.
The sum appropriated shall be expended by
the Hawaii cannabis and hemp authority for the purposes of this Act.
SECTION 68. There is appropriated out of the
cannabis social equity, public health and education, and public safety special
fund the sum of $
or so much thereof as may be
necessary for fiscal year 2024-2025 for the implementation and administration
of the public health and education grant program.
The sum appropriated shall be expended by
the Hawaii cannabis and hemp authority for the purposes of this Act.
SECTION 69. There is appropriated out of the
cannabis social equity, public health and education, and public safety special
fund the sum of $
or so much thereof as may be
necessary for fiscal year 2024-2025 for the implementation and administration
of the public safety grant program.
The sum appropriated shall be expended by
the Hawaii cannabis and hemp authority for the purposes of this Act.
SECTION 70. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the purposes of establishing a state cannabis testing facility within the Hawaii cannabis and hemp authority.
The sum appropriated shall be expended by the Hawaii cannabis and hemp authority for the purposes of this Act.
SECTION 71. The appropriations made by this Act shall not lapse at the end of the fiscal biennium for which the appropriations are made; provided that all moneys from the appropriations unencumbered as of June 30, 2026, shall lapse as of that date.
SECTION 72. Any unexpended or unencumbered balance in the:
(1) Industrial hemp special fund, established by section 141-14, Hawaii Revised Statutes;
(2) Medical cannabis registry and regulation special fund, established by section 321-30.1, Hawaii Revised Statutes; and
(3) Hawaii hemp processing special fund, established by section 328G-7, Hawaii Revised Statutes,
shall be transferred as of the close of business on the effective date of this Act as follows: one half to the cannabis regulation, nuisance abatement, and law enforcement special fund, established by section A-17, Hawaii Revised Statutes; and one half to the cannabis social equity, public health and education, and public safety special fund, established by section A-18, Hawaii Revised Statutes.
SECTION 73.
In accordance with section 9 of article VII of the Hawaii State
Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes,
the legislature has determined that the appropriations contained in H.B. No. , will cause the
state general fund expenditure ceiling for fiscal year 2024‑2025 to be
exceeded by $ or
per cent.
In addition, the appropriation contained in this Act will cause the
general fund expenditure ceiling for fiscal year 2024‑2025 to be further
exceeded by $ or
per cent.
The combined total amount of general fund appropriations contained in
only these two Acts will cause the state general fund expenditure ceiling for
fiscal year 2024‑2025 to be exceeded by
$ or
per cent.
The reasons for exceeding the general fund expenditure ceiling are that:
(1) The appropriation made in this Act is necessary to serve the public interest; and
(2) The appropriation made in this Act meets the needs addressed by this Act.
SECTION 74. This Act shall not be applied to impair any contract existing as of the effective date of this Act in a manner violative of either the Hawaii State Constitution or Article I, section 10, of the United States Constitution.
SECTION 75. This Act shall not affect rights and duties that matured, penalties and forfeitures that were incurred, and proceedings that were begun before its effective date.
SECTION 76. If any provision of this Act or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 77. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State, the conflicting part of this Act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned. The rules under this Act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the State.
SECTION 78. In codifying the new sections added by sections 2, 4, and 7 of the Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 79. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 80. This Act shall take effect on July 1, 3000; provided that:
(1) Sections A-51 through A-54, Hawaii Revised Statutes, of section 2 of this Act and part III of this Act shall take effect on January 1, 2026; and
(2) The amendments made to section 291E-61, Hawaii Revised Statutes, by section 16 of this Act and section 291E-61.5, Hawaii Revised Statutes, by section 17 of this Act shall not be repealed when those sections are reenacted on June 30, 2028, pursuant to section 11 of Act 196, Session Laws of Hawaii 2021, as amended by section 8 of Act 148, Session Laws of Hawaii 2023.
Report Title:
DCCA; DOH; DOA; Department of Taxation; Hawaii Cannabis and Hemp Authority; Cannabis and Hemp Control Board; Cannabis and Hemp Control Implementation Advisory Committee; Adult-Use Cannabis; Medical Cannabis; Hemp; Appropriation; Expenditure Ceiling
Description:
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
