Bill Text: HI HB2102 | 2020 | Regular Session | Amended

Hawaii House Bill 2102 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Relating To Hemp Products.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Engrossed - Dead) 2020-07-02 - The committee on WAM deferred the measure. [HB2102 Detail]

Download: Hawaii-2020-HB2102-Amended.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2102
THIRTIETH LEGISLATURE, 2020		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO HEMP PRODUCTS.

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

SECTION 1. The legislature finds that Act 228, Session Laws of Hawaii 2016, which established the industrial hemp pilot program within the department of agriculture, created the promise of a new form of diversified agriculture in Hawaii. Since the inception of the pilot program, thirty-six industrial hemp farmers have registered with the department and are currently cultivating hemp for commercial use.

The legislature recognizes that the United States Congress passed the Agriculture Improvement Act of 2018, otherwise known as the 2018 Farm Bill, which, among other matters, removed hemp-derived extracts, derivatives and cannabinoids such as cannabidiol from schedule 1 substances in the Controlled Substances Act. This effectively legalized the sale of cannabidiol products from the commercial cultivation of hemp in the United States.

The legislature further finds that since the passage of the 2018 Farm Bill, more than sixteen thousand hemp growers have emerged throughout the United States. Hemp is currently used nationally in hundreds of different applications, including consumer textiles, personal care, industrial components, and dietary supplements containing cannabidiol. The hemp industry across the country has grown rapidly, and hemp-derived products are used by a wide range of consumers.

The legislature also recognizes that, while the United States Department of Agriculture has opened the hemp market, the United States Food and Drug Administration has continued to exercise jurisdiction over the regulation of ingestible and topical hemp products. In 2019, the Food and Drug Administration started to evaluate regulatory frameworks for hemp-derived compounds, held a public hearing, and opened a public docket for data gathering. The Food and Drug Administration has also issued public statements that assert that it is illegal to market cannabidiol as a food additive or dietary supplement because it is an active ingredient in a pharmaceutical drug.

The legislature also notes that in Hawaii, the department of health has adhered to guidance from the Food and Drug Administration that provides that food, beverage, or cosmetic products that contain cannabidiol are adulterated and therefore prohibited under law. Despite this prohibition, cannabidiol products continue to be sold across Hawaii, with no regulatory oversight.

The legislature finds that, given the time expected for the Food and Drug Administration to act and the existing confusion among consumers and the industry, the State should take action to establish a regulatory framework for hemp-derived cannabidiol products.

Accordingly, the purpose of this Act is to facilitate the safe availability of hemp products in this State by:

(1) Requiring certain warnings to be placed on the packaging of hemp products;

(2) Prohibiting manufacturers, distributors, and sellers of hemp products from making unwarranted health-related statements about their products;

(3) Establishing standards relating to the manufacture of dietary supplements containing hemp;

(4) Prohibiting the manufacture, and sale, hold, offer, or distribution for sale, of any food into which a cannabinoid, synthetic cannabinoid, or other hemp product has been added;

(5) Prohibit the sale, hold, offer, or distribution for sale of any hemp products designed to be appealing to children;

(6) Establishing that a cosmetic shall not be considered adulterated or misbranded solely by the inclusion of hemp or cannabinoids, extracts, or derivatives from hemp;

(7) Clarifying that a licensed medical cannabis dispensary is not prohibited from manufacturing, distributing, or selling products that contain hemp, or cannabinoids, extracts, or derivatives from hemp subject to certain exceptions;

(8) Prohibiting the sale or furnish of any hemp product to a person under twenty-one years of age; and

(9) Requiring the department of health to report to the legislature on the implementation of this Act.

SECTION 2. Chapter 328, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . HEMP PRODUCTS

§328- Definitions. As used in this part:

"Established and approved hemp program" means a program that meets all federal requirements regarding the lawful and safe cultivation of hemp.

"Health-related statement" means a statement related to health, and includes a statement of a curative or therapeutic nature that, expressly or impliedly, suggests a relationship between the consumption of hemp or hemp products and health benefits or effects on health.

"Hemp" means the plant species Cannabis sativa L. and any part of that plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 per cent on a dry weight basis.

"Hemp product" means a product containing hemp that:

(1) Is a cosmetic, dietary supplement, or herb;

(2) Is for human or animal consumption;

(3) Contains any part of the hemp plant, including naturally occurring cannabinoids, compounds, concentrates, extracts, isolates, resins, or derivatives; and

(4) Contains no more than 0.3 per cent tetrahydrocannabinol.

"Hemp product" does not include hemp or a hemp product that is a drug that has been approved as a drug by the United States Food and Drug Administration.

"Human or animal consumption" means ingestion or topical application to skin, hair, or eyes.

"Independent testing laboratory" means a laboratory that:

(1) Does not have a direct or indirect interest in the entity for which testing is being done;

(2) Does not have a direct or indirect interest in a facility that cultivates, processes, distributes, dispenses, or sells raw hemp products in this State or in another jurisdiction;

(3) Is organized or incorporated solely for the purpose of operating as a testing laboratory; and

(4) Is accredited by a third-party accrediting body as a competent testing laboratory pursuant to ISO/IEC 17025 of the International Organization for Standardization.

"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a product. "Manufacture" does not include planting, growing, harvesting, drying, curing, grading, or trimming a plant or part of a plant.

§328- Labeling. The label of any package of a hemp product shall include the contents and potency of the cannabidiol and the following boxed warning statements in all capital letters and printed in not less than eighteen-point font:

(1) "CANNABIDIOL USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. KEEP OUT OF REACH OF CHILDREN."; and

(2) "WARNING: MAY INTERACT WITH OTHER DRUGS, CONSULT A HEALTH PROFESSIONAL BEFORE USE.".

§328- Health-related statements. A manufacturer, distributor, or seller of a hemp product shall not include on the label of the product, or publish or disseminate in advertising or marketing, any health-related statement that is untrue in any particular manner or that tends to create a misleading impression as to the health effects of consuming products containing hemp or cannabinoids, extracts, or derivatives from hemp.

§328- Manufacturing standards; dietary supplements. A manufacturer of dietary supplements that contains hemp shall comply with the following:

(1) All parts of the hemp plant used in dietary supplements shall come from a state or country that has an established and approved hemp program that inspects or regulates hemp;

(2) The hemp cultivator or grower is in good standing and in compliance with the governing laws of the state or country of origin; and

(3) A dietary supplement that contains hemp shall not be distributed or sold in this State without a certificate of analysis from an independent testing laboratory that confirms all of the following:

(A) The dietary supplement that contains hemp is the product of a batch of hemp that was tested by an independent testing laboratory in accordance with applicable law;

(B) A tested random sample of the batch of hemp contained a total delta-9-tetrahydrocannabinol concentration that did not exceed 0.3 per cent on a dry-weight basis; and

§328- Hemp products; food; manufacture, sale, and distribution prohibited. No person shall manufacture, or sell, hold, offer, or distribute for sale, in the State any food into which a cannabinoid, synthetic cannabinoid, or other hemp product has been added.

§328- Products designed to be appealing to children; sale or distribution prohibited. No person shall sell, hold, offer, or distribute for sale in the State any hemp product designed to be appealing to children, including but not limited to:

(1) Any product bearing any resemblance to a cartoon character, fictional character whose target audience is children or youth, or pop culture figure;

(2) Any product bearing a reasonable resemblance to a product available for consumption as a commercially available candy;

(3) Any product whose design resembles, by any means, another object commonly recognized as appealing to, or intended for use by, children; or

(4) Any product whose shape bears the likeness or contains characteristics of a realistic or fictional human, animal, or fruit, including artistic, caricature, or cartoon renderings.

§328- Hemp products; not automatically adulterated or misbranded. A cosmetic shall not be considered adulterated under section 328-9 or other applicable law, or misbranded under section 328-10 or other applicable law solely by the inclusion of hemp or cannabinoids, extracts, or derivatives from hemp. The sale of cosmetics that include hemp or cannabinoids, extracts, or derivatives from hemp shall not be restricted or prohibited based solely on the inclusion of hemp or cannabinoids, extracts, or derivatives from hemp.

§328- Rulemaking. (a) The department shall adopt rules pursuant to chapter 91 that include but are not limited to:

(1) Inspection and sampling requirements of any hemp or hemp products;

(2) Testing protocols, including certification by independent third-party laboratories, to determine delta-9-tetrahydrocannabinol concentration of hemp or hemp products and screen for contaminants;

(3) Reporting and record-keeping requirements;

(4) Assessment of fees for application, inspecting, sampling, and testing hemp processing;

(5) A procedure for the disposal of hemp or hemp products, found to be in violation of this part;

(6) Penalties for any violation of this part; and

(7) Any other rules necessary to carry out this part.

(b) The department may adopt and amend interim rules, which shall be exempt from chapter 91 and chapter 201M, to effectuate the purposes of this part; provided that:

(1) The department shall hold at least one public hearing prior to the adoption of interim rules with at least thirty days' notice for that public hearing; and

(2) Any interim rules shall remain in effect until June 30, 2023, or until rules are adopted pursuant to subsection (a), whichever occurs sooner."

SECTION 3. Chapter 329D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§329D- Hemp not prohibited. (a) This chapter shall not be construed to prohibit a licensed entity from manufacturing, distributing, or selling products that contain hemp, or cannabinoids, extracts, or derivatives from hemp grown in compliance with applicable law; provided that:

(1) No licensed entity shall include any hemp product as an ingredient in the licensed entity's manufactured cannabis product without first getting approval from the department; and

(2) The licensed entity complies with part of chapter 328.

(b) As used in this section, "hemp" means the plant species Cannabis sativa L. and any part of that plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 per cent on a dry weight basis."

SECTION 4. Chapter 712, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§712- Hemp products; persons under twenty-one years of age. (1) It shall be unlawful to sell or furnish a hemp product in any shape or form to a person under twenty-one years of age.

(2) All persons engaged in the retail sale of hemp products shall check the identification of hemp product purchasers to establish the age of the purchaser if the purchaser reasonably appears to be under twenty-seven years of age.

(3) It shall be an affirmative defense that the seller of a hemp product to a person under twenty-one years of age in violation of this section had requested, examined, and reasonably relied upon a photographic identification from the person establishing that person's age as at least twenty-one years of age prior to selling the person a hemp product. The failure of a seller to request and examine photographic identification from a person under twenty-one years of age prior to the sale of a hemp product to the person shall be construed against the seller and form a conclusive basis for the seller's violation of this section.

(4) Signs using the statement, "The sale of hemp products to persons under twenty-one is prohibited", in letters at least one-half inch high shall be posted on or near any vending machine at or near the point of sale of any other location where hemp products are sold.

(5) It shall be unlawful for a person under twenty-one years of age to purchase or possess any hemp product. This subsection does not apply if a person under the age of twenty-one, with parental authorization, is participating in a controlled purchase as part of a law enforcement activity or a study authorized by the department of health under the supervision of law enforcement to determine the level of incidence of hemp product sales to persons under twenty-one years of age.

(6) Any person who violates subsection (1) or (4), or both, shall be fined $500 for the first offense. Any subsequent offenses shall subject the person to a fine not less than $500 nor more than $2,000. Any person under twenty-one years of age who violates subsection (5) shall be fined $10 for the first offense. Any subsequent offense shall subject the violator to a fine of $50, no part of which shall be suspended, or the person shall be required to perform not less than forty-eight hours nor more than seventy-two hours of community service during hours when the person is not employed and is not attending school. Any hemp product in the person's possession at the time of violation of subsection (5) shall be seized, summarily forfeited to the State, and destroyed by law enforcement following the conclusion of an administrative or judicial proceeding finding that a violation of subsection (5) has been committed. The procedures set forth in chapter 712A shall not apply to this subsection.

(7) For the purposes of this section, "hemp product" means a product containing hemp that:

(1) Is a cosmetic, dietary supplement, or herb;

(2) Is for human or animal consumption;

(3) Contains any part of the hemp plant, including naturally occurring cannabinoids, compounds, concentrates, extracts, isolates, resins, or derivatives; and

(4) Contains no more than 0.3 per cent tetrahydrocannabinol."

SECTION 5. The department of health shall submit a report including the following:

(1) Any progress and obstacles the department has encountered while implementing this Act;

(2) Progress on the creation and implementation of interim rules; and

(3) Any recommendations, including any proposed legislation,

to the legislature no later than twenty days prior to the convening of the regular sessions of 2021, 2022, and 2023.

SECTION 6. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2050; provided that this Act shall be repealed on June 30, 2023.

Report Title:

Hemp Products; Cannabidiol; Cosmetics; Label; Manufacture; Sale; Prohibition; Medical Cannabis Dispensaries

Description:

Requires labels on hemp products. Prohibits unwarranted health-related statements about hemp products. Establishes standards for hemp product manufacturers. Prohibits the manufacture or sale of any food into which a hemp product has been added. Prohibits the sale of hemp products designed to appeal to children. Establishes that a product shall not be considered adulterated or misbranded solely by the inclusion of hemp with certain exceptions. Clarifies that a licensed medical cannabis dispensary is not prohibited from manufacturing, distributing, or selling products that contain hemp, or cannabinoids, extracts, or derivatives from hemp, subject to certain conditions. Prohibits the sale of hemp products to persons under twenty-one years of age. Requires DOH to report to the legislature. Effective 7/1/2050. Sunsets 6/30/2023. (HD1)

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