PART I

SECTION 1. The legislature finds that Hawaii's medical use of marijuana law was enacted on June 14, 2000, as Act 228, Session Laws of Hawaii 2000, to provide medical relief for seriously ill individuals in the State. While the current law recognizes the beneficial use of marijuana in treating or alleviating pain or other symptoms associated with certain debilitating illnesses, it is silent on how patients can obtain medical marijuana if they or their caregivers are unable to grow their own supply of medical marijuana. The legislature further finds that many of the State's nearly thirteen thousand qualifying patients lack the ability to grow their own supply of medical marijuana due to a number of factors, including disability and limited space to grow medical marijuana. As a result, a regulated statewide dispensary system for medical marijuana is urgently needed by qualifying patients in the State.

Accordingly, the purpose of this Act is to establish a regulated statewide dispensary system for medical marijuana to ensure safe and legal access to medical marijuana for qualifying patients.

PART II

SECTION 2. Chapter 321, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . medical marijuana dispensary system

§321-A Definitions. As used in this part:

"Department" means the department of health.

"Manufacture" means the preparation, propagation, compounding, conversion, or processing of a substance containing marijuana or its principal psychoactive constituent tetrahydrocannabinol, either directly or indirectly, by a person other than a qualifying patient or primary caregiver for the qualifying patient's use, by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container.

"Manufactured marijuana product" means any capsule, lozenge, oil, or pill that has been manufactured using marijuana.

"Marijuana" shall have the same meaning as in section 329-121.

"Medical marijuana dispensary" or "dispensary" means an establishment operated by a person licensed by the State pursuant to this part where medical marijuana or medical marijuana products manufactured pursuant to this part are made available for retail sale to qualifying patients or primary caregivers pursuant to this part and to section 329-122.

"Medical marijuana production center" or "production center" means a farm or facility operated by a person licensed by the State pursuant to this part where marijuana is cultivated with the limited and express intent that marijuana or medical marijuana products manufactured pursuant to this part be supplied to medical marijuana dispensaries or other medical marijuana production centers, pursuant to this part and to section 329-122.

"Person" means an individual, firm, corporation, partnership, association, or any form of business or legal entity.

"Primary caregiver" shall have the same meaning as in section 329-121.

"Production" means the planting, cultivating, growing, or harvesting of marijuana. "Production" includes the manufacture of medical marijuana products pursuant to this part.

"Qualifying patient" shall have the same meaning as in section 329-121.

§321-B Medical marijuana dispensaries; licensure; fees; inspection. (a) No person may operate a dispensary unless the person has obtained a license from the department pursuant to this section.

(b) The department shall adopt rules, in accordance with chapter 91, to provide for the licensure and standards for dispensaries in this State.

(d) Dispensaries licensed pursuant to this section may begin dispensing marijuana to qualifying patients and primary caregivers on January 1, 2017.

(e) The department shall determine the number of dispensaries appropriate to meet the needs of qualifying patients in this State; provided that:

(1) Six dispensary licenses shall be offered to qualified applicants in the State by July 1, 2016; provided that:

(A) Two licenses may be offered in the city and county of Honolulu;

(B) Two licenses may be offered in the county of Hawaii;

(D) One license may be offered in the county of Maui;

(2) Twelve dispensary licenses in total shall be offered to qualified applicants in the State by July 1, 2017; provided that at least one dispensary license shall be offered in each county; provided further that a dispensary shall not be required in the county of Kalawao; and

(3) The department shall determine whether, based on qualifying patient need, additional licenses shall be offered to qualified applicants in the State after July 1, 2017; provided that licenses may be issued in proportion to qualifying patient density within each county, which the department shall review and determine annually after July 1, 2017; provided further that the department may make available no more than one license per five hundred registered patients. For the purposes of this section, qualifying patient density shall be calculated by using a qualifying patient's county of residency.

(f) Each person seeking licensure as a dispensary shall submit an application in the form prescribed by the department, as well as a fee of $ ; provided that:

(1) The applicant shall submit the fee in the form of one payment in the amount of $ and a second payment in the amount of $ ;

(2) If the application is unsuccessful, the department shall retain the fee of $ , and return the payment of $ ; and

(3) Application fees of successful applicants are nonrefundable.

(g) The department shall establish and collect an annual renewal fee of $ from a medical marijuana dispensary; provided that the amount of the renewal fee shall be subject to review and revision by the department; provided further that the renewal fee shall be sufficient to cover the department's expenses in carrying out this part.

(h) All fees collected pursuant to this section shall be deposited in the medical marijuana registry and regulation special fund pursuant to section 321-30.1.

§321-C Medical marijuana production centers; licensure; fees; inspection. (a) No person may operate a medical marijuana production center unless the person has obtained a license from the department pursuant to this section.

(b) The department shall adopt rules, in accordance with chapter 91, to provide for the licensure and standards for medical marijuana production centers in this State.

(c) Medical marijuana production centers may distribute marijuana only to dispensaries or other production centers licensed pursuant to this part. Medical marijuana production centers shall not distribute marijuana directly to qualifying patients or primary caregivers.

(d) The department may offer to qualified applicants in the State not more than:

(1) licenses beginning on March 1, 2016; and

(2) licenses in total beginning on March 1, 2017.

(e) The department shall determine whether it is necessary and appropriate to offer additional licenses to qualified applicants after March 1, 2017, to meet the needs of qualifying patients and dispensaries in this State; provided that the department shall base this determination on the presumption that no single production center shall acquire, cultivate, manufacture, possess, or transport more than marijuana plants in total at any one time.

(f) The department shall offer two types of licenses, which shall authorize qualified production centers to acquire, cultivate, manufacture, possess, or transport either no more than:

(1) marijuana plants in total at any one time; or

(2) marijuana plants in total at any one time.

(g) Each person seeking a license pursuant to subsection (f)(1) shall submit an application in the form prescribed by the department, as well as a fee of $ ; provided that:

(1) The applicant shall submit the fee in the form of two payments in the amount of $ each;

(2) If the application is unsuccessful, the department shall retain the initial fee payment of $ , and return the second payment of $ ; and

(3) Application fees of successful applicants are nonrefundable.

(h) Each person seeking a license pursuant to subsection (f)(2) shall submit an application in the form prescribed by the department, as well as a fee of $ ; provided that:

(1) The applicant shall submit the fee in the form of two payments in the amount of $ each;

(2) If the application is unsuccessful, the department shall retain the initial fee payment of $ , and return the second payment of $ ; and

(3) Application fees of successful applicants are nonrefundable.

(i) The department shall establish and collect an annual renewal fee from medical marijuana production centers sufficient to cover the department's expenses in carrying out this part.

(j) All fees collected pursuant to this section shall be deposited in the medical marijuana registry and regulation special fund pursuant to section 321-30.1.

(k) A medical marijuana production center shall affix a numerical identification tag, as prescribed by the department, to each marijuana plant under the control of the production center. The numerical identification tag shall serve as the basis of the inventory tracking system required by the department pursuant to rules adopted in accordance with section 321-H(11)(A).

§321-D Public education. (a) The department shall engage in a continuing education and training program to explain and clarify the purposes and requirements of this part. The program shall target community partner agencies, physicians and other health care providers, patients and caregivers, law enforcement agencies, individuals under eighteen years of age, law and policy makers, and the general public.

(b) The department shall employ at least one full-time staff member whose qualifications and duties include the provision of medical marijuana health education.

§321-E Manufacturing of medical marijuana products. (a) Any medical marijuana dispensary or production center licensed by the department pursuant to this part shall be permitted to manufacture medical marijuana; provided that the dispensary or production center shall also obtain any other state or county permits or licenses that may be necessary for a particular manufacturing activity.

(b) The department shall establish standards regarding the manufacture of medical marijuana products; provided that any area within a dispensary or production center where marijuana will be manufactured into an ingestible form shall comply with the food safety code, chapter 11-50, Hawaii Administrative Rules.

(c) A manufacturer of a manufactured marijuana product shall calculate the equivalent physical weight of the marijuana that is used to manufacture the product and shall make the equivalency calculations available to the department and to a consumer of the manufactured marijuana product.

§321-F Types of manufactured marijuana products. (a) The types of medical marijuana products that may be manufactured and distributed pursuant to this part shall be limited to:

(1) Capsules;

(2) Lozenges;

(3) Oils; and

(4) Pills.

(b) As used in this section, "lozenge" means a small tablet manufactured in a manner to allow for the dissolving of its medicinal or therapeutic component slowly in the mouth.

§321-G Advertising and packaging. (a) The department shall establish standards regarding the advertising and packaging of medical marijuana products; provided that the standards, at a minimum, shall require the use of packaging that:

(1) Is child-resistant and opaque so that the product cannot be seen from outside the packaging;

(2) Is clearly labeled with the phrase "For medical use only";

(3) Contains information about the contents and potency of the product; and

(4) In the case of manufactured marijuana products, lists the equivalent physical weight of the marijuana used to manufacture the amount of the product that is within the packaging, pursuant to section 321-E.

(b) Any capsule, lozenge, or pill containing medical marijuana or its principal psychoactive constituent tetrahydrocannabinol shall be packaged so that one dose, serving, or single wrapped item contains no more than ten milligrams of tetrahydrocannabinol.

§321-H Medical marijuana production center and dispensary rules. The department shall adopt rules pursuant to chapter 91 for the purposes of this part and with respect to:

(1) The number of medical marijuana production centers and dispensaries that shall be permitted to operate in the State;

(2) A fee structure for the submission of applications and renewal of licenses to operate production centers or dispensaries;

(3) Any specific requirements regarding annual audits and reports pertaining to each production center and dispensary that is licensed pursuant to this part;

(4) Security requirements for the operation of production centers and dispensaries; provided that the requirements, at a minimum, shall require:

(A) For production centers:

(i) Video monitoring and recording of the premises;

(ii) Fencing that surrounds the premises and that is sufficient to reasonably deter intruders and prevent anyone outside the premises from viewing any marijuana in any form;

(iii) An alarm system; and

(iv) Other reasonable security measures to deter or prevent intruders, as deemed necessary by the department;

(B) For dispensaries:

(i) Presentation of valid identification as issued by the department pursuant to section 329-123, by a qualifying patient or caregiver, upon entering the premises;

(ii) Video monitoring and recording of the premises;

(iii) An alarm system;

(iv) Exterior lighting; and

(v) Other reasonable security measures as deemed necessary by the department;

(5) Security requirements for the transportation of medical marijuana and manufactured marijuana products;

(6) Standards and criminal background checks for operators and employees of production centers and dispensaries; provided that the standards, at a minimum, shall exclude from licensure or employment any person convicted of any felony; provided that the department may adopt rules exempting from this paragraph a person who was convicted of a felony that was specifically related to marijuana, if the conviction was at least ten years prior to the licensure or employment;

(7) The training and certification of operators and employees of production centers and dispensaries; provided that the department shall establish a training or certification program for dispensary employees;

(8) The types of medical marijuana products that production centers and dispensaries shall be authorized to grow, manufacture, sell, or provide pursuant to section 321-F;

(9) Standards and methodologies related to testing medical marijuana products for content, contamination, and consistency;

(10) The quantities of manufactured marijuana products that a dispensary may sell or provide to a qualifying patient or primary caregiver; provided that no dispensary or dispensaries shall sell or provide to a qualifying patient or primary caregiver any combination of marijuana and manufactured marijuana products that:

(A) During a period of fifteen consecutive days, exceeds the equivalent of four ounces of marijuana; or

(B) During a period of thirty consecutive days, exceeds the equivalent of eight ounces of marijuana;

(11) Dispensary and production center inventory controls to prevent the unauthorized diversion of marijuana or the distribution of medical marijuana or manufactured marijuana products to qualifying patients or primary caregivers in quantities that exceed limits established by this section; provided that the controls, at a minimum, shall include:

(A) A computer software tracking system that utilizes numerical identification tags to allow the department to track all medical marijuana and medical marijuana product inventory from either seed or immature plant stage until the marijuana or marijuana product is sold to a customer or destroyed; and

(B) Product packaging standards sufficient to allow law enforcement personnel to reasonably determine the contents of an unopened package;

(12) The enforcement of prohibitions against the sale or provision of medical marijuana or manufactured marijuana products to unauthorized persons or to qualifying patients or primary caregivers in quantities that exceed limits established by this section;

(13) Any limitations to the size or format of any signs placed outside a dispensary or production center; provided that no sign shall include the image of a cartoon character or other design intended to appeal to children; and

(14) The establishment of a range of penalties for violations of this part or rules adopted thereunder.

§321-I Prohibited acts related to visits to more than one dispensary to obtain medical marijuana or manufactured marijuana products. (a) It is unlawful for any qualifying patient or primary caregiver who visits more than one dispensary to knowingly or intentionally withhold information regarding prior dispensary visits for the purpose of obtaining quantities of medical marijuana or manufactured marijuana products that exceed limits established by this part.

(b) Any person who violates this section is guilty of a petty misdemeanor and subject to a fine of $500.

§321-J Revocation and suspension of license. (a) In addition to any other actions authorized by law, the department shall have the power to deny, revoke, or suspend any license applied for or issued by the department in accordance with this part, and to fine or otherwise discipline a licensee for any cause authorized by law, including but not limited to the following:

(1) Procuring a license through fraud, misrepresentation, or deceit;

(2) Professional misconduct, gross carelessness, or manifest incapacity;

(3) Violation of any of the provisions of this part or the rules adopted pursuant thereto;

(4) False, fraudulent, or deceptive advertising;

(5) Any other conduct constituting fraudulent or dishonest dealings;

(6) Failure to comply with a department order; and

(7) Making a false statement on any document submitted or required to be filed by this part, including furnishing false or fraudulent material information in any application.

(b) Any person who violates any of the provisions of this chapter or the rules adopted pursuant thereto shall be fined not less than $ nor more than $ for each violation.

(1) Dispense, sell, transfer, or otherwise dispose of any marijuana or manufactured marijuana products owned by or in the possession of the licensee; or

(2) Manufacture marijuana products,

until the time for taking an appeal has elapsed or until all appeals have been concluded. Upon a revocation order becoming final, all marijuana and manufactured marijuana products may be forfeited to the State.

(d) All proceedings for denial, suspension, fine, or revocation of a license on any grounds specified in subsection (a) shall be conducted pursuant to chapter 91, including the right of judicial review.

§321-K Medical marijuana zoning. (a) Medical marijuana production centers and dispensaries shall comply with all county zoning ordinances, rules, or regulations; provided that:

(1) A medical marijuana production center shall be permitted in any area in which agricultural production is permitted except as provided within this part; and

(2) No medical marijuana production center or dispensary shall be permitted within seven hundred fifty feet of the real property comprising a playground, public housing project or complex, or school.

(b) As used in this section:

"Playground" means any public outdoor facility, including any parking lot appurtenant thereto, that is intended for recreation, with any portion thereof containing three or more separate apparatus intended for the recreation of children, including but not limited to sliding boards, swing sets, and teeterboards.

"Public housing project or complex" means a housing project directly controlled, owned, developed, or managed by the Hawaii public housing authority pursuant to the federal or state low-rent public housing program.

"School" means any public or private preschool, kindergarten, elementary, intermediate, middle secondary, or high school.

§321-L Annual inspections, audits, and reports. (a) Each medical marijuana production center and dispensary licensed pursuant to this part shall:

(1) Be subject to an annual announced inspection and unannounced inspections of its operations by the department; and

(2) Annually cause an independent financial audit, at the production center's or dispensary operator's own expense, to be conducted of the production center or dispensary and shall submit the audit's findings to the department.

(b) The department shall report annually to the governor and the legislature on the establishment and regulation of medical marijuana production centers and dispensaries including but not limited to the number and location of production centers and dispensaries licensed, the total licensing fees collected, and any licensing violations determined by the department.

§321-M Cultivation of medical marijuana by qualifying patients and primary caregivers. Nothing in this part shall be construed as prohibiting a qualifying patient or primary caregiver from cultivating or possessing an adequate supply of medical marijuana pursuant to part IX of chapter 329.

§321-N Coordination among state and federal agencies. The department shall initiate ongoing dialogue among relevant state and federal agencies to identify processes and policies that ensure the privacy of medical marijuana patients and the compliance of patients, caregivers, producers, and dispensaries with state laws and regulations related to medical marijuana.

§321-O Interim rules. The department may adopt interim rules, which shall be exempt from chapter 91, to effectuate the purposes of this part; provided that the interim rules shall be effective for no more than twenty-four months.

§321-P Medical marijuana advisory commission. (a) There is established within the department a medical marijuana advisory commission which shall:

(1) Advise the director on all matters related to medical marijuana;

(2) Monitor and evaluate the implementation of the regulated statewide dispensary system for medical marijuana; and

(3) Prepare and submit an annual report to the governor and the legislature regarding the status of the dispensary system for medical marijuana.

(b) The commission shall be composed of seven voting members; provided that at least:

(1) One member shall have a background in agriculture;

(2) One member shall have a background in security;

(3) One member shall have a background in medical patient advocacy;

(4) One member shall have a background in promoting good business practices;

(5) One member shall have a background in taxation; and

(6) One member shall have legal expertise in regulated industries and licensure.

The chairperson of the board of agriculture, the director of health, and the director of taxation, or their designated representatives shall serve as ex-officio nonvoting members.

(1) The governor shall appoint a member who shall serve as chairperson of the commission;

(2) The president of the senate and the speaker of the house of representatives shall each appoint a member; and

(3) The mayor of each county shall appoint a member.

(d) The term of each member of the commission shall be for four years; provided that the terms of the initial members of the commission shall be staggered as follows:

(1) The member appointed by the governor shall be appointed for a four-year term;

(2) The members appointed by the president of the senate and the speaker of the house of representatives shall be appointed for three-year terms; and

(3) The members appointed by the mayors of each county shall be appointed for two-year terms.

A vacancy shall be filled in the same manner as the original appointment.

(e) The members of the commission shall not be compensated but shall be reimbursed for necessary expenses incurred in the performance of their duties."

PART III

SECTION 3. Section 46-4, Hawaii Revised Statutes, is amended to read as follows:

"§46-4 County zoning. (a) This section and any ordinance, rule, or regulation adopted in accordance with this section shall apply to lands not contained within the forest reserve boundaries as established on January 31, 1957, or as subsequently amended.

Zoning in all counties shall be accomplished within the framework of a long-range, comprehensive general plan prepared or being prepared to guide the overall future development of the county. Zoning shall be one of the tools available to the county to put the general plan into effect in an orderly manner. Zoning in the counties of Hawaii, Maui, and Kauai means the establishment of districts of such number, shape, and area, and the adoption of regulations for each district to carry out the purposes of this section. In establishing or regulating the districts, full consideration shall be given to all available data as to soil classification and physical use capabilities of the land to allow and encourage the most beneficial use of the land consonant with good zoning practices. The zoning power granted herein shall be exercised by ordinance which may relate to:

(1) The areas within which agriculture, forestry, industry, trade, and business may be conducted;

(2) The areas in which residential uses may be regulated or prohibited;

(3) The areas bordering natural watercourses, channels, and streams, in which trades or industries, filling or dumping, erection of structures, and the location of buildings may be prohibited or restricted;

(4) The areas in which particular uses may be subjected to special restrictions;

(5) The location of buildings and structures designed for specific uses and designation of uses for which buildings and structures may not be used or altered;

(6) The location, height, bulk, number of stories, and size of buildings and other structures;

(7) The location of roads, schools, and recreation areas;

(8) Building setback lines and future street lines;

(9) The density and distribution of population;

(10) The percentage of a lot that may be occupied, size of yards, courts, and other open spaces;

(11) Minimum and maximum lot sizes; and

(12) Other regulations the boards or city council find necessary and proper to permit and encourage the orderly development of land resources within their jurisdictions.

The council of any county shall prescribe rules, regulations, and administrative procedures and provide personnel it finds necessary to enforce this section and any ordinance enacted in accordance with this section. The ordinances may be enforced by appropriate fines and penalties, civil or criminal, or by court order at the suit of the county or the owner or owners of real estate directly affected by the ordinances.

Any civil fine or penalty provided by ordinance under this section may be imposed by the district court, or by the zoning agency after an opportunity for a hearing pursuant to chapter 91. The proceeding shall not be a prerequisite for any injunctive relief ordered by the circuit court.

Nothing in this section shall invalidate any zoning ordinance or regulation adopted by any county or other agency of government pursuant to the statutes in effect prior to July 1, 1957.

The powers granted herein shall be liberally construed in favor of the county exercising them, and in such a manner as to promote the orderly development of each county or city and county in accordance with a long-range, comprehensive general plan to ensure the greatest benefit for the State as a whole. This section shall not be construed to limit or repeal any powers of any county to achieve these ends through zoning and building regulations, except insofar as forest and water reserve zones are concerned and as provided in subsections (c) and (d).

Neither this section nor any ordinance enacted pursuant to this section shall prohibit the continued lawful use of any building or premises for any trade, industrial, residential, agricultural, or other purpose for which the building or premises is used at the time this section or the ordinance takes effect; provided that a zoning ordinance may provide for elimination of nonconforming uses as the uses are discontinued, or for the amortization or phasing out of nonconforming uses or signs over a reasonable period of time in commercial, industrial, resort, and apartment zoned areas only. In no event shall such amortization or phasing out of nonconforming uses apply to any existing building or premises used for residential (single-family or duplex) or agricultural uses. Nothing in this section shall affect or impair the powers and duties of the director of transportation as set forth in chapter 262.

(b) Any final order of a zoning agency established under this section may be appealed to the circuit court of the circuit in which the land in question is found. The appeal shall be in accordance with the Hawaii rules of civil procedure.

(c) Each county may adopt reasonable standards to allow the construction of two single-family dwelling units on any lot where a residential dwelling unit is permitted.

(d) Neither this section nor any other law, county ordinance, or rule shall prohibit group living in facilities with eight or fewer residents for purposes or functions that are licensed, certified, registered, or monitored by the State; provided that a resident manager or a resident supervisor and the resident manager's or resident supervisor's family shall not be included in this resident count. These group living facilities shall meet all applicable county requirements not inconsistent with the intent of this subsection, including but not limited to building height, setback, maximum lot coverage, parking, and floor area requirements.

(e) Neither this section nor any other law, county ordinance, or rule shall prohibit the use of land for employee housing and community buildings in plantation community subdivisions as defined in section 205-4.5(a)(12); in addition, no zoning ordinance shall provide for the elimination, amortization, or phasing out of plantation community subdivisions as a nonconforming use.

(f) Neither this section nor any other law, county ordinance, or rule shall prohibit the use of land for medical marijuana production centers or dispensaries established and licensed pursuant to part of chapter 321."

PART IV

SECTION 4. Section 321-30.1, Hawaii Revised Statutes, is amended to read as follows:

"[[]§321-30.1[]] Medical marijuana registry and regulation special fund; established. (a) There is established within the state treasury the medical marijuana 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 marijuana production centers and dispensaries in the State;

[~~(1)~~] (2) To offset the cost of the processing and issuance of patient registry identification certificates and primary caregiver registration certificates;

[~~(2)~~] (3) To fund positions authorized by the legislature;

[~~(3)~~] (4) To establish and manage a secure and confidential database; and

[~~(4)~~] (5) For any other expenditure necessary, as authorized by the legislature, to implement [a] medical marijuana registry and regulation [~~program.~~] programs.

(b) The fund shall consist of all moneys derived from fees collected pursuant to subsection (c)[.] and sections 321-B and 321-C. There is established within the medical marijuana registry and regulation special fund:

(1) A medical marijuana registry program sub-account, into which shall be deposited [~~All~~] all fees collected pursuant to subsection (c) [~~shall be deposited into the medical marijuana registry special fund.~~]; and

(2) A medical marijuana dispensary program sub-account, into which shall be deposited all fees collected pursuant to sections 321-B and 321-C.

(c) The department, upon completion of the transfer of the medical use of marijuana program, shall charge a medical marijuana registration fee of no more than $35."

PART V

SECTION 5. Chapter 329, Hawaii Revised Statutes, is amended by adding three new sections to part IX to be appropriately designated and to read as follows:

"§329-A Protections afforded to an owner or qualified employee of a licensed production center or dispensary. (a) An owner or employee of a medical marijuana production center or a medical marijuana dispensary that is licensed under section 321-B or 321-C may assert the production or distribution of medical marijuana as an affirmative defense to any prosecution involving marijuana under this part or chapter 712; provided that the owner or employee strictly complied with the requirements of chapter 321, part .

(b) An owner or employee of a licensed medical marijuana production center or licensed medical marijuana dispensary not complying with the permitted scope of the production or distribution of medical marijuana under chapter 321, part , shall not be afforded the protections provided by subsection (a).

(c) No person shall be subject to arrest or prosecution for merely being in the presence or vicinity of a medical marijuana production center or medical marijuana dispensary licensed and operating under chapter 321, part .

§329-B Joint possession of medical marijuana; registration; security requirements; medical marijuana production center license. (a) Any combination of qualifying patients or primary caregivers who cultivate more than twenty-eight but fewer than marijuana plants, whether mature or immature, at the same location and who are not licensed to operate a medical marijuana production center pursuant to section 321-C, shall register with the department of health, pursuant to rules adopted by the department of health under chapter 91.

(b) The qualifying patients or primary caregivers who are required to register under subsection (a) shall:

(1) Conduct constant video monitoring and recording of the cultivation site; and

(2) Take other reasonable security measures to deter or prevent intruders, as deemed necessary by the department of health.

(c) Any combination of qualifying patients or primary caregivers who cultivate or more marijuana plants, whether mature or immature, at the same location shall obtain a license to operate a medical marijuana production center from the department of health, pursuant to section 321-C, and shall comply with all requirements imposed on medical marijuana production centers by part of chapter 321.

(d) Notwithstanding any law to the contrary, any person who fails to comply with this section shall be guilty of a petty misdemeanor and subject to a fine of $500.

§329-C Authorized sources of medical marijuana. (a) Commencing July 1, 2018, a qualifying patient shall obtain medical marijuana only:

(1) From a dispensary licensed pursuant to section 321-B; provided that the marijuana shall be purchased and paid for at the time of purchase; or

(2) By cultivating marijuana in an amount that does not exceed an adequate supply for the qualifying patient, pursuant to section 329-122;

After June 30, 2018, no primary caregiver shall be authorized to cultivate marijuana for any qualifying patient.

(b) This section shall not apply to:

(1) A qualifying patient who is a minor or an adult lacking legal capacity; and

(2) A primary caregiver who is the parent, guardian, or person having legal custody of a qualifying patient described in paragraph (1)."

SECTION 6. Section 329-121, Hawaii Revised Statutes, is amended by amending the definition of "adequate supply" to read as follows:

""Adequate supply" means an amount of marijuana jointly possessed between the qualifying patient and the primary caregiver that is not more than is reasonably necessary to [~~assure~~] ensure the uninterrupted availability of marijuana for the purpose of alleviating the symptoms or effects of a qualifying patient's debilitating medical condition; provided that an "adequate supply" shall not exceed: seven marijuana plants, whether immature or mature, and four ounces of usable marijuana at any given time[.]; or any combination of usable marijuana and marijuana products manufactured pursuant to part of chapter 321 that exceed four ounces of usable marijuana or the equivalent of four ounces of usable marijuana, as calculated using information provided pursuant to section 321-G(a)(4)."

SECTION 7. Section 329-122, Hawaii Revised Statutes, is amended to read as follows:

"§329-122 Medical use of marijuana; conditions of use. Notwithstanding any law to the contrary, the medical use of marijuana by a qualifying patient shall be permitted only if:

(1) The qualifying patient has been diagnosed by a physician as having a debilitating medical condition;

(2) The qualifying patient's physician has certified in writing that, in the physician's professional opinion, the potential benefits of the medical use of marijuana would likely outweigh the health risks for the particular qualifying patient; and

(3) The amount of marijuana possessed by the qualifying patient does not exceed an adequate supply.

(b) Subsection (a) shall not apply to a qualifying patient under the age of eighteen years, unless:

(1) The qualifying patient's physician has explained the potential risks and benefits of the medical use of marijuana to the qualifying patient and to a parent, guardian, or person having legal custody of the qualifying patient; and

(2) A parent, guardian, or person having legal custody consents in writing to:

(A) Allow the qualifying patient's medical use of marijuana;

(B) Serve as the qualifying patient's primary caregiver; and

(C) Control the acquisition of the marijuana, the dosage, and the frequency of the medical use of marijuana by the qualifying patient.

(1) The medical use of marijuana that endangers the health or well-being of another person;

(2) The medical use of marijuana:

(A) In a school bus, public bus, or any moving vehicle;

(B) In the workplace of one's employment;

(D) At any public park, public beach, public recreation center, recreation or youth center; or

(E) [~~Other~~] At any other place open to the public; [~~and~~] provided that a qualifying patient, primary caregiver, or an owner or employee of a medical marijuana production center or dispensary licensed under sections 321-B and 321-C shall not be prohibited from transporting medical marijuana in any public place; provided further that the medical marijuana shall be transported in a sealed container, not be visible to the public, and shall not be removed from its sealed container or consumed or used in any way while it is in the public place;

(3) The use of medical marijuana obtained from a source other than that permitted by section 329-C; and

[~~(3)~~] (4) The use of marijuana by a qualifying patient, parent, or primary caregiver for purposes other than medical use permitted by this part.

(d) For the purposes of this section, "transport" means the transportation of medical marijuana between:

(1) A qualifying patient and the qualifying patient's primary caregiver;

(2) A licensed medical marijuana production center and a licensed medical marijuana dispensary; and

(3) A licensed medical marijuana production center and another licensed medical marijuana production center;

provided that "transport" does not include the interisland transportation of medical marijuana."

SECTION 8. Section 329-123, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Physicians 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 [~~primary care~~] physician as specifically required or permitted by this chapter. The form shall require the address of the location where the marijuana is grown and shall appear on the registry card issued by the department of health. The certifying physician shall be required to [~~be the qualifying patient's primary care physician.~~] have a bona fide physician-patient relationship with the qualifying patient. All current active medical marijuana permits shall be honored through their expiration date."

PART VI

SECTION 9. 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 2015-2016, and the same sum or so much thereof as may be necessary for fiscal year 2016-2017, to be deposited into the medical marijuana registry and regulation special fund established pursuant to section 321-30.1, Hawaii Revised Statutes.

SECTION 10. There is appropriated out of the medical marijuana registry and regulation special fund the sum of $ or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 to carry out the purposes of this Act, including the hiring of full-time equivalent (FTE) positions to carry out the purposes of the medical marijuana dispensary program established pursuant to this Act.

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

SECTION 11. Not later than July 1, 2016, the department of health shall establish and commence a repayment plan and schedule to repay to the general fund, the sums deposited into the medical marijuana registry and regulation special fund established pursuant to section 321-30.1, Hawaii Revised Statutes. The department of health shall only use moneys from the medical marijuana registry and regulation special fund to repay the general fund. The repayment schedule shall not extend beyond June 30, .

PART VII

SECTION 12. Not later than March 15, 2016, the director of health shall submit a report and provide an informational briefing to the legislature concerning the progress of implementing the provisions of part II of this Act, including the status of rulemaking by the department of health pertaining to the licensure of medical marijuana dispensaries and production centers.

PART VIII

SECTION 13. Not later than twenty days prior to the convening of the regular session of 2018, the legislative reference bureau shall submit to the legislature proposed legislation to conform part of chapter 321 and part IX of chapter 329, Hawaii Revised Statutes, with the provisions of section 329-C, Hawaii Revised Statutes, codified by section 5 of this Act.

PART IX

SECTION 14. In codifying the new sections added by sections 2 and 5 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 15. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 16. 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 17. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 18. This Act shall take effect ; provided that part VI shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	682
TWENTY-EIGHTH LEGISLATURE, 2015		S.D. 2
STATE OF HAWAII		H.D. 1