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Clarification – Cash Will Be Accepted at Hawaii Medical Marijuana Dispensaries

This was shared w/ Governor Ige’s followers on Facebook yesterday.

I received the following Press Release from Richard Ha this afternoon clarifying the shared Facebook post that Governor Ige shared from Civil Beat yesterday:

HONOLULU – Hawaiʻi Educational Association for Licensed Therapeutic Healthcare (HEALTH) has long been involved in seeking banking options for Hawaiʻi’s nascent medical cannabis dispensaries. We deeply appreciate the leadership and creativity demonstrated by Governor David Ige and Hawaiʻi Financial institutions Commissioner Iris Ikeda that culminated in yesterday’s announcement that the state had secured a banking solution for its legal cannabis industry.

Partner Colorado Credit Union’s Safe Harbor Private Banking Program is a pioneering program that takes on the regulatory burden required for our industry to be in compliance with federal guidelines so that state-licensed cannabis dispensaries can access banking services. Because these services are unavailable in Hawaiʻi, we are grateful that Colorado has stepped up to help.

The CanPay debit payment application is an alternative to cash payments that will be a welcome option for patients and dispensaries alike. Unlike a credit or debit card, payment will be instantly transferred from the patient’s existing bank account to the dispensary’s account in Colorado to facilitate a cashless purchase.

We recognize that the success of Hawaiʻi’s medical cannabis dispensary program is directly linked to the ability of patients to have safe access to cannabis products to help manage their medical conditions. As employers, we also want to ensure our employees enjoy a safe work environment. These options take us in the right direction at the right time.

Hawaiʻi’s aspiration to have a predominantly “cashless system” for all medical cannabis dispensaries is admirable. However, it is important to clarify that progress toward this goal will take considerable time. We will work with all stakeholders to successfully implement the proposed system. Patients who choose not to participate in a program that requires checking account transfers will still be able to make cash purchases in all Hawaiʻi-Licensed Medical Cannabis Dispensaries. Qualified patient access and compassion are two key tenets to any successful medical program.

Hawaii Department of Health Announces the Selection of Medical Marijuana Dispensary Licensees

The Hawaii State Department of Health (DOH) has selected eight applicants to receive Medical Marijuana Dispensary Licenses. The Department will award three licenses for the City and County of Honolulu, two licenses each for the Counties of Hawaii and Maui, and one dispensary license for the County of Kauai as allowed in Chapter 329D, Hawaii Revised Statutes (HRS).

Medical Marijuana

While the announcement of the selected applicants is being made today, selected applicants are required to pay a licensing fee of $75,000 to the Department of Health within seven days of receiving their written notice of selection to be awarded a dispensary license. If the application fee is not timely paid by close of business on the seventh day, the selected applicant will be disqualified, and the Department shall select the next highest scoring applicant for the county, pursuant to section 329D-4(c) HRS, and section 11-850-21(b), HAR.

The applicants that have been selected for dispensary licenses are:

City and County of Honolulu

  • Aloha Green Holdings Inc.
  • Manoa Botanicals LLC
  • TCG Retro Market 1, LLC dba Cure Oahu

County of Hawaii

  • Hawaiian Ethos LLC
  • Lau Ola LLC

County of Maui

  • Maui Wellness Group, LLC
  • Pono Life Sciences Maui, LLC

County of Kauai

  • Green Aloha, Ltd.

“Upon the completion of the selection process and the awarding of licenses, the Department of Health will begin working with the selected licensees to ensure the safety of their products, and the safety of patients and the public,” said State Health Director Dr. Virginia Pressler. “We look forward to improving access to marijuana for registered patients who have medical needs, and increasing educational opportunities for healthcare professionals.”

After receiving more than 60 applications in January, the department conducted a rigorous review and selection process. A four-member selection panel reviewed and scored applications based on thirteen merit criteria, some of which include the ability to operate a business, a plan and timeline for operations, proof of financial stability, ability to comply with security requirements, and capacity to meet patient needs.

A dispensary licensed pursuant to Chapter 329D, HRS, may begin dispensing marijuana no sooner than July 15, 2016, with the approval of the Department of Health. Each dispensary licensee may operate up to two production centers and two retail dispensing locations within the county they are licensed to serve. Margaret Leong, Supervisor for the Medical Marijuana Dispensary Licensing Program, explained that, “There are many steps the dispensaries will need to take in order to actually start production and dispensing, so we can’t say exactly when the dispensing will begin. But we are excited to start working with the selected licensees on the next steps.”

Pursuant to section 11-850-20, Hawaii Administrative Rules, the Department is holding unselected applications in reserve to offer a license to the next highest scoring applicant if the selected applicants fail to timely pay the required licensing fee. When all available licenses have been issued, the unselected applications will be removed from the list of reserved applications and the Department will notify all applicants of their status, at which time they will have an opportunity to appeal the denial.

The department will post a list of the total scores received by applicants upon completion of the awarding of licenses, which is anticipated to be completed within the next two weeks. The scores will be posted at http://health.hawaii.gov/medicalmarijuana/.

More information about both the medical marijuana dispensary program and the registry program are located at the website.