Hurdles remain for medical marijuana

It does not appear that legal sales of medical marijuana will begin this year, although the state is allowing the first eight dispensaries to start operations in as early as three weeks.

The state doesn’t have a certified lab to test marijuana quality as required by law, is still establishing a process for the Narcotics Enforcement Division, or NED, to certify facilities to handle the drug and has yet to finalize a contract for an online seed-to-sale system to track inventory and sales at outlets statewide.

In April the Department of Health awarded eight licenses to businesses that can begin selling medical marijuana legally for the first time in Hawaii as early as July 15.

The DOH acknowledged that “it’s unlikely that there will be a retail outlet opening on July 15” and didn’t know when operators would begin selling the drug despite their best efforts.

“There are requirements outside of DOH control that will need to be managed by the licensees, such as plans and permitting for renovation or construction,” said DOH spokeswoman Janice Okubo. “The dispensary staff have been meeting with licensees, and no on-site inspections have been completed.”

Businesses still must build enclosed indoor growing facilities, hire employees and install 24-hour security systems and a computer software tracking system that connects with the DOH, among other measures when starting a business from scratch. In addition, it takes a minimum of about four months to grow pakalolo.

“Considering we don’t a have a certified lab, we’re under the impression that no group has seeds in the ground yet, which would also imply NED certification has not been provided to any of the licensees,” said Christopher Garth, executive director of the Hawaii Dispensary Alliance. “They have to have a physical location that has to be inspected by DOH and NED, then they have to grow, then they have to test their product internally and then test their product with a third party.”

Garth is hopeful that at least one dispensary will open this year.

“I can’t say for sure yet, but that’s still the plan,” said Tan Yan Chen, executive director of Cure Oahu, about prospects for a 2016 opening. “There are a lot of things that we are working through. There are a lot of things as we go through the details, where we find there are more layers to it. We are currently working through the process as established in the rules and look forward to the industry coming online in the months ahead.”

Big Island farmer Richard Ha also hopes to open by year’s end, though he has a major challenge since it’s unlikely a certified lab to test his product will open on the neighbor islands, a requirement before sales can begin.

“Nobody really seriously thinks you can open a lab on the Big Island, because there’s not enough business to support it, so we have to work that out to get it to Oahu,” he said. “We’re talking to see if within certain definitions we can do it. We can’t be very accurate (on an opening date).”

Manoa Botanicals founder and CEO Brian Goldstein would only say that the company is “working closely with the regulators to open our dispensary as soon as possible.”

Maui Grown Therapies hired its leadership team last month and is aggressively recruiting additional staff positions.

“Our goal is to begin serving Maui’s certified medical marijuana patients in the fourth quarter,” said spokeswoman Teri Freitas Gorman. “We’re working very hard. There’s quite a few things that have to happen before you can start cultivating.”

Act 241, passed in 2015, allows medical marijuana businesses to have two production centers and two retail dispensaries, for a total of 16 dispensaries statewide. Hawaii became the first state to legalize medical marijuana through the legislative process 16 years ago, but patients did not have a legal way to obtain the drug.

WHAT’S NEXT FOR DISPENSARIES

Next steps for dispensary licensees (in general, not just retail locations):

>> Establish/acquire enclosed indoor facilities.

>> Install 24-hour security measures including but not limited to alarm systems, video monitoring and recording on the premises, and exterior lighting.

>> Apply to the Department of Public Safety’s Narcotics Enforcement Division, or NED, for a certificate to possess and handle marijuana and manufactured marijuana products, and provide proof to the Department of Health that the NED certificate has been issued. Proof must be provided within seven days of obtaining the certificate.

>> Hire employees consistent with the requirements of the statute and rules (no felony convictions).

>> Install a computer software tracking system that interfaces with DOH’s Bio Track Software, which will track the product from seed to sale and disposal or destruction.

Production centers must:

>> Provide DOH with the address, tax map key, or TMK, and copy of the premises lease, if applicable, of the proposed location of a production center not later than 30 days prior to any medical marijuana or manufactured marijuana products being produced or manufactured at that production center.

>> Provide fencing that surrounds the premises, sufficient to reasonably deter intruders and prevent anyone outside the premises from viewing any marijuana in any form.

>> Comply with all county zoning ordinances, rules or regulations as well as comply with 329D-22 HRS, i.e., not within 750 feet of a playground, public housing project or school.

>> Secure all necessary state or county permits or licensing that might be necessary for a particular manufacturing activity.

Retail centers must:

>> Provide DOH with the address, TMK and copy of a lease of the proposed location of each retail dispensing location not less than 60 days prior to opening.

>> Comply with all county zoning ordinances, rules or regulations as well as comply with 329D-22 HRS, i.e., not within 750 feet of a playground, public housing project or school.

>> Secure all necessary state or county permits or licensing that might be necessary for a particular manufacturing activity.