Hawaii 2023 Regular Session

Hawaii Senate Bill SB1455 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 1455 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT RELATING TO HEMP. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 1455
4	4	THIRTY-SECOND LEGISLATURE, 2023
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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11	11	1455
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13	13	THIRTY-SECOND LEGISLATURE, 2023
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	RELATING TO HEMP.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. The legislature believes that hemp can be a viable boost to the economy, especially in the light of the rising costs of wood and cement. The legislature also finds that Act 14, Session Laws of Hawaii 2020, (Act 14) was passed to allow the growth of hemp in the State through the United States Department of Agriculture's hemp production program, as the state department of agriculture's industrial hemp pilot program was set to expire. Timely passage of Act 14 was essential to continue existing hemp production operations. However, Act 14 did not completely address the manufacture of hemp products, an important step in fully realizing the legislature's intent in allowing the development of a legal and regulated hemp industry within the State. The legislature further finds that the United States Food and Drug Administration has not created a national regulatory framework through which legally-grown hemp can be transformed into products that are safe and legal for sale to consumers, which leaves states to establish their own frameworks. Accordingly, the purpose of this Act is to: (1) Authorize and regulate the manufacture of certain hemp products within the State; (2) Clarify the respective roles of persons growing hemp, processing hemp, and manufacturing hemp products; and (3) Repeal the sunset date of the State's existing hemp laws. SECTION 2. Chapter 328G, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§328G- Restrictions on sales. (a) No person shall sell, hold for sale, offer, or distribute any food, as that term is defined in section 328-1, into which hemp, processed hemp, a hemp product, or a synthetic cannabinoid has been added as an ingredient or component. This section shall not apply to hemp that is generally recognized as safe (GRAS) by the United States Food and Drug Administration for use in foods, as intended, in a public GRAS notification. (b) No person shall sell, hold for sale, offer, or distribute any hemp product into which a synthetic cannabinoid has been added, or any synthetic cannabinoid intended for oral consumption or topical use. (c) No person shall sell, hold for sale, offer, or distribute any product containing hemp, made from hemp, or containing synthetic cannabinoids for respiratory routes of delivery, including cigarettes, cigars, pre-rolls, inhalers, nebulizers, electronic smoking devices, or other devices designed for that purpose. (d) No person shall sell, hold for sale, offer, or distribute directly to consumers any hemp leaf or hemp floral material. (e) Except for hemp products intended for external topical application to the skin or hair, no person shall sell, hold for sale, offer, or distribute any products containing hemp, made from hemp, or containing synthetic cannabinoids that are intended to be introduced via non-oral routes of entry to the body, including use in eyes, ears, and nasal cavities. (f) No person shall sell, hold for sale, offer, or distribute any processed hemp or hemp product unless the hemp used to make the processed hemp or hemp product was grown by a person holding a valid license issued by the United States Department of Agriculture pursuant to title 7 United States Code section 1639q or by a state or tribal agency administering a plan approved by the United State Department of Agriculture pursuant to title 7 United States Code section 1639p. (g) No person shall sell, hold for sale, offer, or distribute any processed hemp or hemp product that has a delta‑9-tetrahydrocannabinol concentration of more than 0.3 per cent, as measured post-decarboxylation, or by other similarly reliable methods. (h) No person shall sell, hold for sale, offer, or distribute any hemp product intended to be consumed orally to supplement the human or animal diet, unless the product is in the form of a tablet, capsule, powder, softgel, gelcap, gummy, or liquid to be ingested in daily quantities measured in drops or similar units of measure. (i) No person shall sell, hold for sale, offer, or distribute processed hemp or a hemp product unless it has been tested in accordance with, and meets the standards established by, rules adopted by the department. (j) No person shall sell, hold for sale, offer, or distribute any processed hemp or hemp product without a label, in a form prescribed by the department, affixed to the packaging that includes confirmation that the processed hemp or hemp product has been tested pursuant to department rules. (k) No person shall sell, hold for sale, offer, or distribute any hemp product without a label, in a form prescribed by the department, affixed to the packaging that includes, at minimum: (1) The hemp product name; (2) A list of all ingredients; (3) The name and business address of the manufacturer, or, in the case of processed hemp intended for sale direct to consumers, the name and business address of the hemp processor; and (4) A statement that reads: "This product has not been evaluated by the United States Food and Drug Administration and is not intended to diagnose, treat, cure, or prevent any disease". (l) No person shall sell, offer, or distribute for sale any hemp product to any individual younger than twenty-one years of age." SECTION 3. Chapter 328G, Hawaii Revised Statutes, is amended by amending its title to read as follows: "Chapter 328G HEMP [PROCESSORS] PROCESSING AND HEMP PRODUCT MANUFACTURING" SECTION 4. Section 328G-1, Hawaii Revised Statutes, is amended follows: 1. By adding two new definitions to be appropriately inserted and to read as follows: ""Gummy" means a gelatinous cube, sphere, prismatoid, or ovoid. "Processed hemp" means any compounds, concentrates, extracts, isolates, resins, or derivatives generated from the processing of hemp, excluding any part of the hemp plant and waste byproduct." 2. By amending the definition of "applicant" to read: ""Applicant" means the person applying to register [as a] to process hemp [processor] or manufacture hemp products under this chapter." 3. By amending the definition of "certificate of registration" to read: ""Certificate of registration" means the certificate issued by the department attesting that the applicant is registered to process hemp[.] or manufacture a hemp product." 4. By amending the definition of "hemp" to read: ""Hemp" means Cannabis sativa L. and any part of that plant, 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 not more than 0.3 per cent on a dry weight basis, as measured post-decarboxylation or by other similarly reliable methods." 5. By amending the definition of "hemp product" to read: ""Hemp product" means [a product that: (1) Contains naturally occurring cannabinoids, compounds, concentrates, extracts, isolates, resins or derivatives from processed hemp; (2) Does not include any living hemp plants, viable seeds, leaf materials, or floral materials; (3) Has a delta-9-tetrahydrocannabinol concentration of not more than 0.3 per cent, as measured post-decarboxylation, or other similarly reliable methods; (4) Is intended to be consumed orally to supplement the human or animal diet; and (5) Is in the form of a tablet, capsule, powder, softgel, gelcap, or liquid form (e.g. hemp oil) to be used by the consumer to infuse edible items at home for personal use or for topical application to the skin or hair. For purposes of this chapter, a hemp product shall be considered as intended for oral ingestion in liquid form only if it is formulated in a fluid carrier and it is intended for ingestion in daily quantities measured in drops or similar small units of measure per labeled directions for use.] processed hemp: (1) Intended for direct sales to consumers; and (2) To which additives have been introduced during manufacture." 6. By amending the definition of "manufacture" to read: ""Manufacture" means to compound, blend, extract, infuse, or otherwise use processed hemp to make or prepare a hemp product[, but does not include planting, growing, harvesting, drying, curing, grading, or trimming a hemp plant or part of a hemp plant]." 7. By amending the definition of "processing" to read: ""Processing" means making a transformative change to the hemp plant [following harvest by converting an agricultural commodity into a hemp product.] using mechanical, chemical, or other means, to produce processed hemp that is intended: (1) To be consumed orally to supplement the human or animal diet or be applied topically to the skin or hair; or (2) For use in manufacture of a hemp product intended to be consumed orally to supplement the human or animal diet or be applied topically to the skin or hair." 8. By deleting the definition of "FDA": [""FDA" means the United States Food and Drug Administration."] 9. By deleting the definition of "Hemp processor": [""Hemp processor" means a person processing hemp to manufacture a hemp product."] SECTION 5. Section 328G-2, Hawaii Revised Statutes, is amended to read as follows: "§328G-2 Hemp [processor] processing and manufacture registry; [application; removal from registry.]; registration; updates. (a) No person shall process hemp without first obtaining a license to produce hemp, issued by the Secretary of the United States Department of Agriculture pursuant to title 7 United States Code section 1639q. (b) No person shall process hemp or manufacture a hemp product without being registered by the department as a hemp processor pursuant to this [part] chapter and any rules adopted pursuant [[]to[]] this chapter. (c) A person who intends to process hemp or manufacture a hemp product shall apply to the department for registration on an application form [created] provided by the department. (d) The applicant shall provide, at a minimum, the following information: (1) The applicant's name, mailing address, and phone number in [Hawaii;] the State; (2) The legal description of [the] each parcel of land on which [the] hemp is to be processed [or]; hemp products are to be manufactured; or hemp, processed hemp, or hemp products are to be stored; (3) A description of [the] each enclosed indoor facility where hemp processing or hemp product manufacturing will occur; (4) [Documentation that the indoor facility and planned hemp processing operation complies with all zoning ordinances, building codes, and fire codes; (5) Documentation] For persons intending to process hemp, documentation showing that the applicant has obtained a license to produce hemp, issued by the Secretary of the United States Department of Agriculture pursuant to title 7 United States Code section 1639q; and [(6)] (5) Any other information required by the department. (e) In addition to the application form, each applicant shall submit a non-refundable application fee established by the department. If the fee does not accompany the application, the application for registration shall be deemed incomplete. (f) Any incomplete application shall be denied. (g) Upon the department's receipt of a complete and accurate application that meets the requirements adopted by the department pursuant to this chapter, any other information requested by the department, and [remittal of] the application fee, the [applicant shall be registered and shall be issued] department shall issue a certificate of registration [to process hemp]. (h) [The certificate of registration shall be renewed] Persons on the registry shall re-register annually by [payment of] paying the [annual renewal] re-registration fee to be determined by the department[.] and: (1) Certifying that there has been no change to the information required in subsection (d); or (2) Submitting an update as provided in subsection (i). (i) The person to whom a certificate of registration was issued shall update the information required by subsection (d), on a form provided by the department, no later than sixty days after any event giving rise to the need to make any corrections or to otherwise update information in the registry, and shall accurately account for any changes related to that person's registration. [(i)] (j) [Hemp processors] Persons processing hemp or manufacturing hemp products shall allow any member of the department, or any agent or third party authorized by the department, to enter at reasonable times upon any private property in order to inspect, sample, and test the hemp processing or hemp product manufacturing area, processed hemp, hemp products, and equipment[,] and facilities incident to the processing or storage of hemp[,] and manufacturing or storage of hemp products, and review all pertinent records. [(j) The department may remove any person from the registry for failure to comply with any law or regulation under this chapter. It is the responsibility of the hemp processor to make sure it is registered and legally allowed to process hemp and in compliance with any and all laws and regulations. The removal of a hemp processor from the registry shall be in accordance with the procedures set forth in section 328G-6.] (k) A person on the registry or applying for registration shall, upon request, submit to the department documentation that the person's indoor facility and hemp processing or hemp product manufacturing operation complies with all zoning ordinances, building codes, and fire codes." SECTION 6. Section 328G-3, Hawaii Revised Statutes, is amended to read as follows: "[[]§328G-3[]] Hemp processing[;] and hemp product [sale and prohibitions; labeling.] manufacturing. (a) No hemp shall be processed [into hemp products], nor shall any [hemp processor] person hold for processing or sale any hemp, unless lawfully obtained from a person [approved or otherwise authorized by applicable federal, state or local law to cultivate hemp plants.] holding a valid license issued by the United States Department of Agriculture pursuant to title 7 United States Code section 1639q or by a state or tribal agency administering a plan approved by the United States Department of Agriculture pursuant to title 7 United States Code section 1639p. (b) Hemp shall be processed and hemp products shall be [processed] manufactured within an enclosed indoor facility secured to prevent unauthorized entry. Hemp, hemp products, and any toxic or otherwise hazardous by-products of hemp processing[, or by-products,] or hemp product manufacturing, including but not limited to delta-9-tetrahydrocannabinol, shall be stored within an enclosed indoor facility, secured to prevent unauthorized entry in a manner that prevents cross-contamination and unintended exposures. (c) Hemp shall not be processed within 500 feet of a pre‑existing playground, school, state park, state recreation area, residential neighborhood, hospital, or daycare facility. (d) Hemp shall not be processed nor shall hemp products be manufactured using butane in an open system where fumes are not contained or by use of any other method of processing the department determines poses a risk to health and safety. [(e) No person shall sell, hold, offer, or distribute for sale any food, as that term is defined in section 328-1, into which a cannabinoid, synthetic cannabinoid, hemp extract, hemp derivatives or other hemp product that has been added as an ingredient or component. This section shall not apply to hemp that is generally recognized as safe (GRAS) by FDA for use in foods, as intended, in a public GRAS notification.] (e) Hemp processing and hemp product manufacturing facilities and operations shall comply with applicable state laws and county ordinances." SECTION 7. Section 328G-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) The department [shall] may adopt rules, pursuant to chapter 91, [that include but are not limited] necessary for the purposes of this chapter, including rules relating to: (1) [Inspection and sampling requirements of hemp products;] Handling, storage, and quality control requirements for persons processing hemp and manufacturing hemp products; (2) Labeling requirements and restrictions for processed hemp and hemp products, including those related to intended use, health advisories and warnings, and medical claims; [(2)] (3) [Testing protocols, including certification by state laboratories or independent third-party laboratories,] Requirements for sampling and testing of processed hemp and hemp products to determine delta-9-tetrahydrocannabinol concentration and [screening for contaminants of hemp products;] the presences of contaminants; (4) Procedures for certification of state laboratories and independent third-party laboratories; [(3)] (5) Reporting and record-keeping requirements[;] for persons processing hemp and manufacturing hemp products; [(4)] (6) [Assessment of fees] Fees for application, inspecting, sampling, and other fees as deemed necessary[;] to implement this chapter; and [(5)] (7) Penalties for any violation[; and (6) Any other rules and procedures necessary to carry out this chapter]." SECTION 8. Section 328G-6, Hawaii Revised Statutes, is amended by amending subsections (b) to (e) to read as follows: "(b) Any order issued under this chapter shall become final, unless not later than twenty days after the notice of order is served, the person or persons named therein request in writing a hearing before the director. Any penalty imposed[, including removal from the registry,] shall become final, and any monetary penalty shall become due and payable twenty days after the order is served unless the person or persons named therein request in writing a hearing before the director. Whenever a hearing is requested, the penalty imposed[, including removal from the registry,] shall become final, and any monetary penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Any hearing shall be in accordance with chapter 91. (c) For any judicial proceeding to recover an administrative penalty imposed by order [or to enforce a cease and desist order against a hemp processor removed from the registry], the director may petition any court of appropriate jurisdiction and need only show that: (1) Notice was given; (2) A hearing was held or the time granted for requesting a hearing has expired without such a request; (3) The administrative penalty was imposed [or the hemp processor was removed from the registry]; and (4) The penalty remains unpaid [or the hemp processor continues to process hemp.] (d) The director, in the event there is deemed a potential health hazard, may take precautionary measures to protect the public through imposition of a cease and desist order, an embargo, the detention and removal of hemp products from the market, and the sequestration of processed hemp or hemp products suspected to be contaminated or otherwise harmful to human health. In the event of any embargo or detention of hemp products, the person or persons so named in the order imposing the cease and desist order, embargo or detention shall be afforded an opportunity to contest the findings of the [findings of the department] order in a hearing pursuant to chapter 91. (e) The director may institute a civil action in any court of competent jurisdiction for injunctive relief to prevent violation of any order issues or rule adopted pursuant to this chapter, in addition to any other remedy or penalty provided for under this chapter. Nothing in this chapter shall limit any other legal remedy, or limit any civil or criminal action, available under any other statute, rule, or ordinance." SECTION 9. Section 328G-7, Hawaii Revised Statutes, is amended to read as follows: "[[]§328G-7[]] Hawaii hemp processing and hemp product manufacturing special fund established. (a) There is established within the state treasury the Hawaii hemp processing and hemp product manufacturing special fund into which shall be deposited: (1) Appropriations made by the legislature to the special fund; (2) Any income and capital gains earned by the fund; and (3) Any fees or fines collected by the department pursuant to this this [part.] chapter. (b) Moneys in the Hawaii hemp processing and hemp product manufacturing special fund shall be used by the department for the following purposes: (1) To establish and regulate a system of registering persons intending to process hemp [processors;] or manufacture hemp products; (2) To fund positions and operating costs authorized by the legislature; and (3) For any other expenditure necessary, consistent with this chapter, to implement the Hawaii hemp processing and hemp product manufacturing program." SECTION 10. Section 328G-5, Hawaii Revised Statutes, is repealed. ["[§328G-5] Laboratory standards and testing; certification. (a) The department shall establish and enforce standards for laboratory-based testing of the hemp products for content, contamination, and consistency. (b) The department may certify laboratories and recognize certifications from other jurisdictions of laboratories that are qualified to test hemp products for quality control prior to sale."] SECTION 11. Act 14, Session Laws of Hawaii 2020, as amended by Act 137, Session Laws of Hawaii 2022, 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, 2025; provided that the definition of "marijuana" in section 3291, Hawaii Revised Statutes, and the definitions of "marijuana" and "marijuana concentrate" in section 7121240, 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 12. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 13. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 14. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
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49	49	SECTION 1. The legislature believes that hemp can be a viable boost to the economy, especially in the light of the rising costs of wood and cement. The legislature also finds that Act 14, Session Laws of Hawaii 2020, (Act 14) was passed to allow the growth of hemp in the State through the United States Department of Agriculture's hemp production program, as the state department of agriculture's industrial hemp pilot program was set to expire. Timely passage of Act 14 was essential to continue existing hemp production operations. However, Act 14 did not completely address the manufacture of hemp products, an important step in fully realizing the legislature's intent in allowing the development of a legal and regulated hemp industry within the State. The legislature further finds that the United States Food and Drug Administration has not created a national regulatory framework through which legally-grown hemp can be transformed into products that are safe and legal for sale to consumers, which leaves states to establish their own frameworks.
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51	51	Accordingly, the purpose of this Act is to:
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53	53	(1) Authorize and regulate the manufacture of certain hemp products within the State;
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55	55	(2) Clarify the respective roles of persons growing hemp, processing hemp, and manufacturing hemp products; and
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57	57	(3) Repeal the sunset date of the State's existing hemp laws.
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59	59	SECTION 2. Chapter 328G, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
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61	61	"§328G- Restrictions on sales. (a) No person shall sell, hold for sale, offer, or distribute any food, as that term is defined in section 328-1, into which hemp, processed hemp, a hemp product, or a synthetic cannabinoid has been added as an ingredient or component. This section shall not apply to hemp that is generally recognized as safe (GRAS) by the United States Food and Drug Administration for use in foods, as intended, in a public GRAS notification.
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63	63	(b) No person shall sell, hold for sale, offer, or distribute any hemp product into which a synthetic cannabinoid has been added, or any synthetic cannabinoid intended for oral consumption or topical use.
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65	65	(c) No person shall sell, hold for sale, offer, or distribute any product containing hemp, made from hemp, or containing synthetic cannabinoids for respiratory routes of delivery, including cigarettes, cigars, pre-rolls, inhalers, nebulizers, electronic smoking devices, or other devices designed for that purpose.
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67	67	(d) No person shall sell, hold for sale, offer, or distribute directly to consumers any hemp leaf or hemp floral material.
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69	69	(e) Except for hemp products intended for external topical application to the skin or hair, no person shall sell, hold for sale, offer, or distribute any products containing hemp, made from hemp, or containing synthetic cannabinoids that are intended to be introduced via non-oral routes of entry to the body, including use in eyes, ears, and nasal cavities.
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71	71	(f) No person shall sell, hold for sale, offer, or distribute any processed hemp or hemp product unless the hemp used to make the processed hemp or hemp product was grown by a person holding a valid license issued by the United States Department of Agriculture pursuant to title 7 United States Code section 1639q or by a state or tribal agency administering a plan approved by the United State Department of Agriculture pursuant to title 7 United States Code section 1639p.
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73	73	(g) No person shall sell, hold for sale, offer, or distribute any processed hemp or hemp product that has a delta‑9-tetrahydrocannabinol concentration of more than 0.3 per cent, as measured post-decarboxylation, or by other similarly reliable methods.
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75	75	(h) No person shall sell, hold for sale, offer, or distribute any hemp product intended to be consumed orally to supplement the human or animal diet, unless the product is in the form of a tablet, capsule, powder, softgel, gelcap, gummy, or liquid to be ingested in daily quantities measured in drops or similar units of measure.
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77	77	(i) No person shall sell, hold for sale, offer, or distribute processed hemp or a hemp product unless it has been tested in accordance with, and meets the standards established by, rules adopted by the department.
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79	79	(j) No person shall sell, hold for sale, offer, or distribute any processed hemp or hemp product without a label, in a form prescribed by the department, affixed to the packaging that includes confirmation that the processed hemp or hemp product has been tested pursuant to department rules.
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81	81	(k) No person shall sell, hold for sale, offer, or distribute any hemp product without a label, in a form prescribed by the department, affixed to the packaging that includes, at minimum:
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83	83	(1) The hemp product name;
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85	85	(2) A list of all ingredients;
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87	87	(3) The name and business address of the manufacturer, or, in the case of processed hemp intended for sale direct to consumers, the name and business address of the hemp processor; and
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89	89	(4) A statement that reads: "This product has not been evaluated by the United States Food and Drug Administration and is not intended to diagnose, treat, cure, or prevent any disease".
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91	91	(l) No person shall sell, offer, or distribute for sale any hemp product to any individual younger than twenty-one years of age."
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93	93	SECTION 3. Chapter 328G, Hawaii Revised Statutes, is amended by amending its title to read as follows:
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95	95	"Chapter 328G
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97	97	HEMP [PROCESSORS] PROCESSING AND HEMP PRODUCT MANUFACTURING"
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99	99	SECTION 4. Section 328G-1, Hawaii Revised Statutes, is amended follows:
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101	101	1. By adding two new definitions to be appropriately inserted and to read as follows:
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103	103	""Gummy" means a gelatinous cube, sphere, prismatoid, or ovoid.
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105	105	"Processed hemp" means any compounds, concentrates, extracts, isolates, resins, or derivatives generated from the processing of hemp, excluding any part of the hemp plant and waste byproduct."
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107	107	2. By amending the definition of "applicant" to read:
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109	109	""Applicant" means the person applying to register [as a] to process hemp [processor] or manufacture hemp products under this chapter."
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111	111	3. By amending the definition of "certificate of registration" to read:
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113	113	""Certificate of registration" means the certificate issued by the department attesting that the applicant is registered to process hemp[.] or manufacture a hemp product."
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115	115	4. By amending the definition of "hemp" to read:
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117	117	""Hemp" means Cannabis sativa L. and any part of that plant, 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 not more than 0.3 per cent on a dry weight basis, as measured post-decarboxylation or by other similarly reliable methods."
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119	119	5. By amending the definition of "hemp product" to read:
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121	121	""Hemp product" means [a product that:
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123	123	(1) Contains naturally occurring cannabinoids, compounds, concentrates, extracts, isolates, resins or derivatives from processed hemp;
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125	125	(2) Does not include any living hemp plants, viable seeds, leaf materials, or floral materials;
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127	127	(3) Has a delta-9-tetrahydrocannabinol concentration of not more than 0.3 per cent, as measured post-decarboxylation, or other similarly reliable methods;
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129	129	(4) Is intended to be consumed orally to supplement the human or animal diet; and
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131	131	(5) Is in the form of a tablet, capsule, powder, softgel, gelcap, or liquid form (e.g. hemp oil) to be used by the consumer to infuse edible items at home for personal use or for topical application to the skin or hair.
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133	133	For purposes of this chapter, a hemp product shall be considered as intended for oral ingestion in liquid form only if it is formulated in a fluid carrier and it is intended for ingestion in daily quantities measured in drops or similar small units of measure per labeled directions for use.] processed hemp:
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135	135	(1) Intended for direct sales to consumers; and
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137	137	(2) To which additives have been introduced during manufacture."
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139	139	6. By amending the definition of "manufacture" to read:
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141	141	""Manufacture" means to compound, blend, extract, infuse, or otherwise use processed hemp to make or prepare a hemp product[, but does not include planting, growing, harvesting, drying, curing, grading, or trimming a hemp plant or part of a hemp plant]."
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143	143	7. By amending the definition of "processing" to read:
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145	145	""Processing" means making a transformative change to the hemp plant [following harvest by converting an agricultural commodity into a hemp product.] using mechanical, chemical, or other means, to produce processed hemp that is intended:
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147	147	(1) To be consumed orally to supplement the human or animal diet or be applied topically to the skin or hair; or
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149	149	(2) For use in manufacture of a hemp product intended to be consumed orally to supplement the human or animal diet or be applied topically to the skin or hair."
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151	151	8. By deleting the definition of "FDA":
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153	153	[""FDA" means the United States Food and Drug Administration."]
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155	155	9. By deleting the definition of "Hemp processor":
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157	157	[""Hemp processor" means a person processing hemp to manufacture a hemp product."]
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159	159	SECTION 5. Section 328G-2, Hawaii Revised Statutes, is amended to read as follows:
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161	161	"§328G-2 Hemp [processor] processing and manufacture registry; [application; removal from registry.]; registration; updates. (a) No person shall process hemp without first obtaining a license to produce hemp, issued by the Secretary of the United States Department of Agriculture pursuant to title 7 United States Code section 1639q.
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163	163	(b) No person shall process hemp or manufacture a hemp product without being registered by the department as a hemp processor pursuant to this [part] chapter and any rules adopted pursuant [[]to[]] this chapter.
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165	165	(c) A person who intends to process hemp or manufacture a hemp product shall apply to the department for registration on an application form [created] provided by the department.
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167	167	(d) The applicant shall provide, at a minimum, the following information:
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169	169	(1) The applicant's name, mailing address, and phone number in [Hawaii;] the State;
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171	171	(2) The legal description of [the] each parcel of land on which [the] hemp is to be processed [or]; hemp products are to be manufactured; or hemp, processed hemp, or hemp products are to be stored;
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173	173	(3) A description of [the] each enclosed indoor facility where hemp processing or hemp product manufacturing will occur;
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175	175	(4) [Documentation that the indoor facility and planned hemp processing operation complies with all zoning ordinances, building codes, and fire codes;
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177	177	(5) Documentation] For persons intending to process hemp, documentation showing that the applicant has obtained a license to produce hemp, issued by the Secretary of the United States Department of Agriculture pursuant to title 7 United States Code section 1639q; and
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179	179	[(6)] (5) Any other information required by the department.
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181	181	(e) In addition to the application form, each applicant shall submit a non-refundable application fee established by the department. If the fee does not accompany the application, the application for registration shall be deemed incomplete.
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183	183	(f) Any incomplete application shall be denied.
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185	185	(g) Upon the department's receipt of a complete and accurate application that meets the requirements adopted by the department pursuant to this chapter, any other information requested by the department, and [remittal of] the application fee, the [applicant shall be registered and shall be issued] department shall issue a certificate of registration [to process hemp].
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187	187	(h) [The certificate of registration shall be renewed] Persons on the registry shall re-register annually by [payment of] paying the [annual renewal] re-registration fee to be determined by the department[.] and:
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189	189	(1) Certifying that there has been no change to the information required in subsection (d); or
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191	191	(2) Submitting an update as provided in subsection (i).
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193	193	(i) The person to whom a certificate of registration was issued shall update the information required by subsection (d), on a form provided by the department, no later than sixty days after any event giving rise to the need to make any corrections or to otherwise update information in the registry, and shall accurately account for any changes related to that person's registration.
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195	195	[(i)] (j) [Hemp processors] Persons processing hemp or manufacturing hemp products shall allow any member of the department, or any agent or third party authorized by the department, to enter at reasonable times upon any private property in order to inspect, sample, and test the hemp processing or hemp product manufacturing area, processed hemp, hemp products, and equipment[,] and facilities incident to the processing or storage of hemp[,] and manufacturing or storage of hemp products, and review all pertinent records.
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197	197	[(j) The department may remove any person from the registry for failure to comply with any law or regulation under this chapter. It is the responsibility of the hemp processor to make sure it is registered and legally allowed to process hemp and in compliance with any and all laws and regulations. The removal of a hemp processor from the registry shall be in accordance with the procedures set forth in section 328G-6.]
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199	199	(k) A person on the registry or applying for registration shall, upon request, submit to the department documentation that the person's indoor facility and hemp processing or hemp product manufacturing operation complies with all zoning ordinances, building codes, and fire codes."
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201	201	SECTION 6. Section 328G-3, Hawaii Revised Statutes, is amended to read as follows:
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203	203	"[[]§328G-3[]] Hemp processing[;] and hemp product [sale and prohibitions; labeling.] manufacturing. (a) No hemp shall be processed [into hemp products], nor shall any [hemp processor] person hold for processing or sale any hemp, unless lawfully obtained from a person [approved or otherwise authorized by applicable federal, state or local law to cultivate hemp plants.] holding a valid license issued by the United States Department of Agriculture pursuant to title 7 United States Code section 1639q or by a state or tribal agency administering a plan approved by the United States Department of Agriculture pursuant to title 7 United States Code section 1639p.
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205	205	(b) Hemp shall be processed and hemp products shall be [processed] manufactured within an enclosed indoor facility secured to prevent unauthorized entry. Hemp, hemp products, and any toxic or otherwise hazardous by-products of hemp processing[, or by-products,] or hemp product manufacturing, including but not limited to delta-9-tetrahydrocannabinol, shall be stored within an enclosed indoor facility, secured to prevent unauthorized entry in a manner that prevents cross-contamination and unintended exposures.
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207	207	(c) Hemp shall not be processed within 500 feet of a pre‑existing playground, school, state park, state recreation area, residential neighborhood, hospital, or daycare facility.
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209	209	(d) Hemp shall not be processed nor shall hemp products be manufactured using butane in an open system where fumes are not contained or by use of any other method of processing the department determines poses a risk to health and safety.
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211	211	[(e) No person shall sell, hold, offer, or distribute for sale any food, as that term is defined in section 328-1, into which a cannabinoid, synthetic cannabinoid, hemp extract, hemp derivatives or other hemp product that has been added as an ingredient or component. This section shall not apply to hemp that is generally recognized as safe (GRAS) by FDA for use in foods, as intended, in a public GRAS notification.]
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213	213	(e) Hemp processing and hemp product manufacturing facilities and operations shall comply with applicable state laws and county ordinances."
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215	215	SECTION 7. Section 328G-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
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217	217	"(a) The department [shall] may adopt rules, pursuant to chapter 91, [that include but are not limited] necessary for the purposes of this chapter, including rules relating to:
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219	219	(1) [Inspection and sampling requirements of hemp products;] Handling, storage, and quality control requirements for persons processing hemp and manufacturing hemp products;
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221	221	(2) Labeling requirements and restrictions for processed hemp and hemp products, including those related to intended use, health advisories and warnings, and medical claims;
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223	223	[(2)] (3) [Testing protocols, including certification by state laboratories or independent third-party laboratories,] Requirements for sampling and testing of processed hemp and hemp products to determine delta-9-tetrahydrocannabinol concentration and [screening for contaminants of hemp products;] the presences of contaminants;
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225	225	(4) Procedures for certification of state laboratories and independent third-party laboratories;
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227	227	[(3)] (5) Reporting and record-keeping requirements[;] for persons processing hemp and manufacturing hemp products;
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229	229	[(4)] (6) [Assessment of fees] Fees for application, inspecting, sampling, and other fees as deemed necessary[;] to implement this chapter; and
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231	231	[(5)] (7) Penalties for any violation[; and
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233	233	(6) Any other rules and procedures necessary to carry out this chapter]."
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235	235	SECTION 8. Section 328G-6, Hawaii Revised Statutes, is amended by amending subsections (b) to (e) to read as follows:
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237	237	"(b) Any order issued under this chapter shall become final, unless not later than twenty days after the notice of order is served, the person or persons named therein request in writing a hearing before the director. Any penalty imposed[, including removal from the registry,] shall become final, and any monetary penalty shall become due and payable twenty days after the order is served unless the person or persons named therein request in writing a hearing before the director. Whenever a hearing is requested, the penalty imposed[, including removal from the registry,] shall become final, and any monetary penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Any hearing shall be in accordance with chapter 91.
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239	239	(c) For any judicial proceeding to recover an administrative penalty imposed by order [or to enforce a cease and desist order against a hemp processor removed from the registry], the director may petition any court of appropriate jurisdiction and need only show that:
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241	241	(1) Notice was given;
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243	243	(2) A hearing was held or the time granted for requesting a hearing has expired without such a request;
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245	245	(3) The administrative penalty was imposed [or the hemp processor was removed from the registry]; and
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247	247	(4) The penalty remains unpaid [or the hemp processor continues to process hemp.]
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249	249	(d) The director, in the event there is deemed a potential health hazard, may take precautionary measures to protect the public through imposition of a cease and desist order, an embargo, the detention and removal of hemp products from the market, and the sequestration of processed hemp or hemp products suspected to be contaminated or otherwise harmful to human health. In the event of any embargo or detention of hemp products, the person or persons so named in the order imposing the cease and desist order, embargo or detention shall be afforded an opportunity to contest the findings of the [findings of the department] order in a hearing pursuant to chapter 91.
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251	251	(e) The director may institute a civil action in any court of competent jurisdiction for injunctive relief to prevent violation of any order issues or rule adopted pursuant to this chapter, in addition to any other remedy or penalty provided for under this chapter. Nothing in this chapter shall limit any other legal remedy, or limit any civil or criminal action, available under any other statute, rule, or ordinance."
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253	253	SECTION 9. Section 328G-7, Hawaii Revised Statutes, is amended to read as follows:
254	254
255	255	"[[]§328G-7[]] Hawaii hemp processing and hemp product manufacturing special fund established. (a) There is established within the state treasury the Hawaii hemp processing and hemp product manufacturing special fund into which shall be deposited:
256	256
257	257	(1) Appropriations made by the legislature to the special fund;
258	258
259	259	(2) Any income and capital gains earned by the fund; and
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261	261	(3) Any fees or fines collected by the department pursuant to this this [part.] chapter.
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263	263	(b) Moneys in the Hawaii hemp processing and hemp product manufacturing special fund shall be used by the department for the following purposes:
264	264
265	265	(1) To establish and regulate a system of registering persons intending to process hemp [processors;] or manufacture hemp products;
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267	267	(2) To fund positions and operating costs authorized by the legislature; and
268	268
269	269	(3) For any other expenditure necessary, consistent with this chapter, to implement the Hawaii hemp processing and hemp product manufacturing program."
270	270
271	271	SECTION 10. Section 328G-5, Hawaii Revised Statutes, is repealed.
272	272
273	273	["[§328G-5] Laboratory standards and testing; certification. (a) The department shall establish and enforce standards for laboratory-based testing of the hemp products for content, contamination, and consistency.
274	274
275	275	(b) The department may certify laboratories and recognize certifications from other jurisdictions of laboratories that are qualified to test hemp products for quality control prior to sale."]
276	276
277	277	SECTION 11. Act 14, Session Laws of Hawaii 2020, as amended by Act 137, Session Laws of Hawaii 2022, is amended by amending section 9 to read as follows:
278	278
279	279	"SECTION 9. This Act shall take effect upon its approval[, and shall be repealed on July 1, 2025; provided that the definition of "marijuana" in section 3291, Hawaii Revised Statutes, and the definitions of "marijuana" and "marijuana concentrate" in section 7121240, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act]."
280	280
281	281	SECTION 12. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
282	282
283	283	SECTION 13. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
284	284
285	285	SECTION 14. This Act shall take effect upon its approval.
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287	287
288	288
289	289	INTRODUCED BY: _____________________________
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291	291	INTRODUCED BY:
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293	293	_____________________________
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298	298
299	299	Report Title: Hemp Products; Hemp Processors; Hemp Manufacturing Description: Authorizes and regulates the manufacture of certain hemp products within the State. Clarifies the respective roles of persons growing hemp, processing hemp, and manufacturing hemp products. Repeals the sunset date of the State's hemp laws. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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305	305	Report Title:
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307	307	Hemp Products; Hemp Processors; Hemp Manufacturing
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311	311	Description:
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313	313	Authorizes and regulates the manufacture of certain hemp products within the State. Clarifies the respective roles of persons growing hemp, processing hemp, and manufacturing hemp products. Repeals the sunset date of the State's hemp laws.
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321	321	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.