Pubdate: Wed, 10 Feb 2016
Source: Honolulu Star-Advertiser (HI)
Copyright: 2016 Star Advertiser
Contact: 
http://www.staradvertiser.com/info/Star-Advertiser_Letter_to_the_Editor.html
Website: http://www.staradvertiser.com/
Details: http://www.mapinc.org/media/5154
Author: Kristen Consillio

PANEL, PROCESS FOR POT LICENSES TO REMAIN SECRET

The state Health Department said Tuesday it will neither release the 
names of committee members who will select the winners of Hawaii's 
eight medical marijuana dispensary licenses nor disclose any 
information about the selection process.

The department received 66 applications for the dispensary licenses 
and will determine by April 15 who is granted the right to open the 
first legal marijuana shops in Hawaii later this year.

"It is critical that the selection process be conducted without 
external influence and disruption, so that applicants are scored 
solely on their application and the merit criteria," said Janice 
Okubo, spokeswoman for the Department of Health. "To ensure the 
integrity of the selection process, DOH will not be releasing any 
additional information about applicants, the application process or 
evaluation panel at this time."

The department's decision to keep the process secret was immediately 
criticized by at least one lawmaker who said the names of the 
selection committee will get out.

"The DOH may say that they want to keep the panel names secret so 
they can't be lobbied. But we all know in certain circles that 
information will get out and they will get lobbied, so it's better 
that it's totally transparent and everything is done aboveboard," 
said Sen. Josh Green (D, Naalehu-Kailua-Kona). "People on the inside 
always find out. The selection panel should also be totally 
transparent so we know that there's no favoritism and no insider 
deals. There has to be 100 percent transparency in this process ... 
so that we know that there are no conflicts of interest and people 
have total trust in the system."

The Health Department should also make known every member of each 
entity applying for dispensary licenses, Green added. Most of the 
applicants are limited-liability companies, which aren't required to 
disclose its principals in public records.

"It is important that we know whether any LLC is in good standing, 
that there are no people who have a criminal record or bad record of 
performance," he said. "If someone is applying that has a long 
history of legal problems or criminal activity or financial problems, 
that's all relevant."

The DOH hasn't decided whether it will release the names of selection 
committee members once the process is over, Okubo said. The list of 
power players who have applied for a dispensary license include actor 
Woody Harrelson, Hollywood producer Shep Gordon and dozens of 
high-profile attorneys, entrepreneurs and politicians.

THERE WERE 59 candidates that submitted 66 applications by the Jan. 
29 deadline, but each applicant will be issued only one license, 
according to DOH rules. If a candidate qualifies for more than one 
license, the individual or entity will have to choose the county in 
which to operate a dispensary.

Okubo said the DOH is communicating with all applicants and the 
public strictly via its website, health.hawaii.gov/medicalmarijuana, 
so that everyone receives information at the same time.

"At first I thought you'd want to know (who's on the selection panel) 
so that you can try to influence those people you do know to let them 
know more of what you intend to do as potential licensee," said 
Eugene Tiwanak, former CEO of St. Francis Healthcare Foundation of 
Hawaii, who is vying for one of three dispensary licenses for Oahu. 
"(Later) I felt this process was good and puts everybody on an even keel."

Former Honolulu Mayor Peter Carlisle, a longtime city prosecutor who 
is representing The Wellness Group LLC, agreed with the DOH's stance 
on keeping the panel anonymous.

"Unequivocally, the idea of keeping them as anonymous as possible is 
exactly the right thing to do," he said. "The one thing you don't 
want are friends or relatives or anybody applying pressure to these 
people who have a very hard job to do. This group being untouchable 
when it comes to influence will exponentially increase the likelihood 
that the decision will be made on merit and merit alone."

Former state Attorney General David Louie, who is representing Hawaii 
Green Cross LLC, said, "Either you put the names out and then people 
might lobby, or you insulate these people from lobbying by not 
disclosing their names. People are concerned about having political 
pressure put on them. I can't say that one way is better than the other."

Michael Patterson, CEO of US Cannabis Pharmaceutical Research and 
Development, a marijuana consulting firm based in Florida, said the 
secret nature of the process could open the door to lawsuits by 
candidates who aren't selected.

"It's not going to be as clean of a process as everybody hopes," he 
said. "No state that has a limited number of marijuana licenses has 
had a clean process when it comes to awarding licenses. One of the 
issues will be that they (the public) do not know the panel members. 
If I didn't get a license, I would go sue the state. The people of 
Hawaii need to know this is an objective process."
- ---
MAP posted-by: Jay Bergstrom