SB 1064: DOH; Medical Cannabis; Cannabis Cultivator; Licensure; Requirement; Cease and Desist Notice; Penalty; Violations; Affirmative Defense; Conclusive Basis; Medical Cannabis Registry and Regulation Special Fund; Exceptions; Appropriations

A BILL FOR AN ACT

RELATING TO MEDICAL CANNABIS.

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

     SECTION 1.  Chapter 329D, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§329D-    Unauthorized operation of a dispensary; criminal penalty.  (a)  It shall be unlawful for any person to operate a dispensary without a license from the department pursuant to this chapter.

     (b)  No person shall intentionally, knowingly, or recklessly operate any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products by an unlicensed person or entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products without a license pursuant to this chapter.

     (c)  The department shall issue a cease and desist notice to any person or entity who violates subsection (a) or (b); provided that the cease and desist notice shall be issued before initiating criminal proceedings.

     (d)  Any person who violates subsection (a) shall be guilty of a class C felony.

     (e)  It shall be an affirmative defense to subsection (b) that the person operating any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products had requested, examined, and reasonably relied upon a license that appeared to have been issued by the department that was shown by the unlicensed person or unlicensed entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products establishing that the unlicensed person or unlicensed entity was licensed by the department to engage in the production, manufacture, or sale of cannabis or manufactured cannabis products pursuant to this chapter.  The failure of the person operating any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products to request and examine a license issued by the department from the unlicensed person or unlicensed entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products before providing access to any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products shall be construed against the person operating any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products and form a conclusive basis for the person’s violation of this section.

     (f)  This section shall not apply to:

     (1)  Hemp processors, hemp product retailers, or hemp produce retailers with a valid permit under chapter 328G; or

     (2)  Primary qualified caregivers registered under chapter 329 who are acting within the scope of their permit or registration.

     §329D-    Cannabis cultivator; license required.  (a)  Notwithstanding section 329D-24, it shall be unlawful for any person to cultivate cannabis without a license from the department pursuant to this section.

     (b)  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 medical cannabis dispensary.

     (c)  The department shall issue not more than one cannabis cultivator license for each person.

     (d)  The maximum number of cannabis cultivator licenses that may be issued by the department to the public shall not exceed        licenses.

     (e)  The maximum size of plant canopy the department may authorize for each cannabis cultivator license shall be            square feet of plant canopy for indoor cultivations and            square feet of plant canopy for outdoor cultivations, or a maximum plant count of            mature cannabis plants for each cannabis cultivator license.

     (f)  For the purposes of this section, "plant canopy" means the square footage dedicated to flowering plants that are wider or taller than twelve inches.  "Plant canopy" does not include areas such as space used for the storage of fertilizers, pesticides, or other products, quarantine, or office space."

     SECTION 2.  Section 321-30.1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established within the state treasury the medical cannabis registry and regulation special fund.  The fund shall be expended at the discretion of the director of health:

     (1)  To establish and regulate a system of medical cannabis dispensaries in the State;

     (2)  To offset the cost of the processing and issuance of patient registry identification certificates and primary caregiver registration certificates;

     (3)  To fund positions and operating costs authorized by the legislature;

     (4)  To establish and manage a secure and confidential database;

     (5)  To fund public education as required by section 329D-26;

     (6)  To fund substance abuse prevention and education programs; [and]

     (7)  To fund programs for the mitigation and abatement of nuisances relating to chapter 329D; and

    [(7)] (8)  For any other expenditure necessary, consistent with this chapter and chapter 329D, to implement medical cannabis registry and regulation programs."

     SECTION 3.  Section 329-123, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Physicians or advanced practice registered nurses who issue written certifications shall provide, in each written certification, the name, address, patient identification number, and other identifying information of the qualifying patient.  The department of health shall require, in rules adopted pursuant to chapter 91, that all written certifications comply with a designated form completed by or on behalf of a qualifying patient.  The form shall require information from the applicant, primary caregiver, and physician or advanced practice registered nurse as specifically required or permitted by this chapter.  The form shall require the address of the location where the cannabis is grown and shall appear on the registry card issued by the department of health.  The certifying physician or advanced practice registered nurse shall be required to have a bona fide physician-patient relationship or bona fide advanced practice registered nurse-patient relationship, as applicable, with the qualifying patient.  All current active medical cannabis permits shall be honored through their expiration date.  Any fees assessed by a certifying physician or advanced practice registered nurse to issue a written certification for a qualifying patient shall not exceed an amount equal to three times the amount of the fee charged by the department of health to issue a registration certificate pursuant to subsection (b)."

     SECTION 4.  There is appropriated out of the medical cannabis registry and regulation special fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the department of the attorney general to enforce, and mitigate nuisances relating to, chapter 329D, Hawaii Revised Statutes.

     The sums appropriated shall be expended by the director of health for the purposes of this Act.

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on December 31, 2050.

Report Title:

DOH; Medical Cannabis; Cannabis Cultivator; Licensure; Requirement; Cease and Desist Notice; Penalty; Violations; Affirmative Defense; Conclusive Basis; Medical Cannabis Registry and Regulation Special Fund; Exceptions; Appropriations

Description:

Prohibits persons from operating a medical cannabis dispensary or cultivating cannabis without a license from the Department of Health.  Prohibits individuals from providing certain services to individuals engaging in unlicensed cannabis operations.  Requires the Department of Health to send a cease and desist notice to violators.  Establishes criminal penalties.  Establishes an affirmative defense for, and a conclusive basis for certain violations.  Establishes exceptions.  Establishes a cannabis cultivator license to authorize the cultivation and distribution of cannabis plants.  Requires the Department of Health to only issue one cannabis cultivator license for each person.  Establishes limits on: (1) the number of cannabis cultivator licenses the Department of Health may issue; (2) the maximum size of plant canopy for indoor and outdoor cultivations for each cannabis cultivator license; and (3) the maximum plant count of mature cannabis plants for each cannabis cultivator license.  Authorizes expenditures from the Medical Cannabis Registry and Regulation Special Fund to fund programs for the mitigation and abatement of nuisances relating to chapter 329D, HRS.  Appropriates funds out of the Medical Cannabis Registry and Regulation Special Fund for the Department of Attorney General to enforce, and mitigate nuisances relating to, chapter 329D, HRS.  Effective 12/31/2050.  (SD2)

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

A BILL FOR AN ACT

RELATING TO MEDICAL CANNABIS.

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

     SECTION 1.  Chapter 329D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§329D-    Unauthorized operation of a dispensary; criminal penalty.  (a)  It shall be unlawful for any person to operate a dispensary without a license from the department pursuant to this chapter.

     (b)  No person shall intentionally, knowingly, or recklessly operate any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products by an unlicensed person or entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products without a license pursuant to this chapter.

     (c)  The department shall issue a cease and desist notice to any person or entity who violates subsection (a) or (b); provided that the cease and desist notice shall be issued before initiating criminal proceedings.

     (d)  Any person who violates subsection (a) shall be guilty of a class C felony.

     (e)  It shall be an affirmative defense to subsection (b) that the person operating any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products had requested, examined, and reasonably relied upon a license that appeared to have been issued by the department that was shown by the unlicensed person or unlicensed entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products establishing that the unlicensed person or unlicensed entity was licensed by the department to engage in the production, manufacture, or sale of cannabis or manufactured cannabis products pursuant to this chapter.  The failure of the person operating any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products to request and examine a license issued by the department from the unlicensed person or unlicensed entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products before providing access to any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products shall be construed against the person operating any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products and form a conclusive basis for the person’s violation of this section.

     (f)  This section shall not apply to:

     (1)  Hemp processors, hemp product retailers, or hemp produce retailers with a valid permit under chapter 328G; or

     (2)  Primary qualified caregivers registered under chapter 329 who are acting within the scope of their permit or registration."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on December 31, 2050.

Report Title:

DOH; Medical Cannabis; Licensure; Requirement; Cease and Desist Notice; Penalty; Violations; Affirmative Defense; Conclusive Basis; Exceptions

Description:

Prohibits persons from operating a medical cannabis dispensary without a license from the Department of Health.  Prohibits individuals from providing certain services to individuals engaging in unlicensed cannabis operations.  Requires the Department of Health to send a cease and desist notice to violators.  Establishes criminal penalties.  Establishes an affirmative defense for, and a conclusive basis for certain violations.  Establishes exceptions.  Effective 12/31/2050.  (SD1)

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

A BILL FOR AN ACT

relating to medical cannabis.

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

     SECTION 1.  Chapter 329D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§329D-    Unauthorized operation of a dispensary; criminal penalty.  (a)  It shall be unlawful for any person to operate a dispensary or engage in the production, manufacture, or sale of cannabis or manufactured cannabis products without a license from the department pursuant to this chapter.

     (b)  No person shall intentionally or knowingly provide services to support an unlicensed person or entity or unlicensed activities pursuant to this chapter.

     (c)  No person shall intentionally or knowingly operate any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products by an unlicensed person or entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products without a license pursuant to this chapter.

     (d)  The department shall issue a cease and desist notice to any person who violates subsection (a), (b), or (c).

     (e)  Any person who violates subsection (a) shall be guilty of a class C felony."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

DOH; Medical Cannabis; Licensure; Requirement; Penalty

Description:

Prohibits persons from operating a medical cannabis dispensary or producing, manufacturing, or selling cannabis products without a license from the Department of Health.  Prohibits individuals from providing certain services to individuals engaging in unlicensed cannabis operations.  Requires the Department of Health to send a cease and desist notice to violators.  Establishes criminal penalties.

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

STAND. COM. REP. NO. 988

Honolulu, Hawaii

RE:    S.B. No. 1064

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 1064, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MEDICAL CANNABIS,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Prohibit persons from operating a medical cannabis dispensary without a license from the Department of Health;

     (2)  Prohibit individuals from providing certain services to individuals engaging in unlicensed cannabis operations;

     (3)  Require the Department of Health to send a cease and desist notice to violators;

     (4)  Establish criminal penalties;

     (5)  Establish an affirmative defense against, and a conclusive basis for certain violations; and

     (6)  Establish exceptions.

     Your Committees received testimony in support of this measure from Cure Oahu, Noa Botanicals, and one individual.

     Your Committees received testimony in opposition to this measure from LabGrownGenetics; Kauaʻi Farm Planning; Hilo Grow Shop, LLC; Cannabis Society of Hawaiʻi; and eighteen individuals.

     Your Committees received comments on this measure from the Department of Health.

     Your Committees find that there are numerous websites in the State that are currently operating and advertising their sale of cannabis products.  Some of these websites acknowledge that the State is a medical cannabis-only state, but some do not make this distinction explicitly and openly sell cannabis products without any disclaimer to consumers about the legality of non-medical use cannabis in the State.  This measure will provide the Department of Health with clear enforcement tools to shut down illegal websites that are significantly impacting the State's regulated medical cannabis industry.

     Your Committees have amended this measure by:

     (1)  Inserting language to prohibit any person from cultivating cannabis without a cannabis cultivator license from the Department of Health;

     (2)  Inserting language to establish that a cannabis cultivator license authorizes:

          (A)  The acquisition and cultivation of cannabis plants, seeds, cuttings, or clones; and

          (B)  The distribution of cannabis plants and cannabis flower to a medical cannabis dispensary;

     (3)  Inserting language to require the Department of Health to issue not more than one cannabis cultivator license for each person;

     (4)  Inserting language to limit the maximum number of cannabis cultivator licenses that the Department of Health may issue to the public to an unspecified number;

     (5)  Inserting language to limit to unspecified numbers:

          (A)  The maximum size of plant canopy for indoor and outdoor cultivations; and

          (B)  The maximum plant count of mature cannabis plants,

          that the Department of Health may authorize for each cannabis cultivator license;

     (6)  Inserting language to define "plant canopy" to mean the square footage dedicated to flowering plants that are wider or taller than twelve inches and does not include areas such as space used for the storage of fertilizers, pesticides, or other products, quarantine, or office space;

     (7)  Inserting language to authorize expenditures from the Medical Cannabis Registry and Regulation Special Fund to fund programs for the mitigation and abatement of nuisances relating to chapter 329D, Hawaii Revised Statutes;

     (8)  Inserting language to prohibit the fee assessed by a certifying physician or advanced practice registered nurse to issue a written certification for a qualifying patient from exceeding an amount equal to three times the amount of the fee charged by the Department of Health to issue a registration certificate pursuant to section 329-123, Hawaii Revised Statutes;

     (9)  Inserting a blank appropriation amount out of the Medical Cannabis Registry and Regulation Special Fund for the Department of the Attorney General to enforce, and mitigate nuisances relating to, chapter 329D, Hawaii Revised Statutes; and

    (10)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1064, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1064, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

STAND. COM. REP. NO. 649

Honolulu, Hawaii

RE:    S.B. No. 1064

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committees on Health and Human Services and Commerce and Consumer Protection, to which was referred S.B. No. 1064 entitled:

"A BILL FOR AN ACT RELATING TO MEDICAL CANNABIS,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Prohibit persons from operating a medical cannabis dispensary or producing, manufacturing, or selling cannabis products without a license from the Department of Health;

     (2)  Prohibit individuals from providing certain services to individuals engaging in unlicensed cannabis operations;

     (3)  Require the Department of Health to send a cease and desist notice to violators; and

     (4)  Establish criminal penalties.

     Your Committees received testimony in support of this measure from the Hawaiʻi Cannabis Industry Association, Big Island Grown Dispensaries, Noa Botanicals, Cure Oahu, Techmana LLC, and one individual.

     Your Committees received comments on this measure from the Department of the Attorney General, Department of Health, and Akamai Cannabis Consulting.

     Your Committees find that the use of hemp and cannabis products should be properly regulated and enforced.  Your Committees further find that given the proliferation of illicit sales and potential risks of untested and tainted cannabis products, it is imperative that strong and effective enforcement occurs to safeguard public health and safety.  This measure establishes explicit prohibitions and criminal penalties for unlicensed cannabis sales, production, or manufacturing to provide clear language and enable effective enforcement.

     Your Committees have amended this measure by:

     (1)  Deleting language that would have prohibited any person from engaging in the production, manufacture, or sale of cannabis or manufactured cannabis products without a license from the Department of Health;

     (2)  Deleting language that would have prohibited a person from intentionally or knowingly providing services to support an unlicensed person or entity or unlicensed activities;

     (3)  Inserting language to prohibit persons from recklessly operating any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products by an unlicensed person or entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products without a license;

     (4)  Inserting language to clarify that a cease and desist notice issued to a person or entity by the Department of Health shall be issued before initiating criminal proceedings;

     (5)  Inserting language that establishes an affirmative defense against, and a conclusive basis of, a violation for persons who allegedly operated any search platform, web hosting services, social media platform, or other entity that posts information advertising the sale of cannabis products by an unlicensed person or entity engaged in the production, manufacture, or sale of cannabis or manufactured cannabis products without a license;

     (6)  Inserting language to establish exceptions for permitted hemp processors, hemp product retailers, or hemp produce retailers and registered primary qualified caregivers acting within the scope of their permit or registration;

     (7)  Inserting an effective date of December 31, 2050, to encourage further discussion; and

     (8)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Health and Human Services and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1064, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1064, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Commerce and Consumer Protection,