Pubdate: Mon, 29 Feb 2016
Source: Hawaii Tribune Herald (Hilo, HI)
Copyright: 2016 Associated Press
Contact: http://www.hawaiitribune-herald.com/share/letters/
Website: http://www.hawaiitribune-herald.com/
Details: http://www.mapinc.org/media/185
Author: Marina Riker, Associated Press

A TRICKY SITUATION

Geography of State May Prove Challenging for Marijuana Industry

HONOLULU - With less than five months to go before medical marijuana 
dispensaries can open in Hawaii, business owners could be facing 
unique obstacles in a state of islands separated by federal waters.

Dispensaries can open as soon as July 15, but industry experts say 
they could be confronted with challenges unlike those in other 
states, such as navigating rules that ban inter-island transport and 
limit the number of growers - all of which could cause marijuana 
shortages. A lack of labs to test the crop presents another challenge 
for state lawmakers.

"Hawaii is going to be a really interesting market in general, 
basically because of the geography," said Chris Walsh, managing 
editor of Marijuana Business Daily. "First, it's a chain of islands 
separated by bodies of water, and second, it's remote." The Hawaii 
Department of Health is currently reviewing dispensary applications, 
and plans to award licenses in April. Actor and marijuana advocate 
Woody Harrelson and video game designer Henk Rogers are among 59 
Hawaii residents who have applied for licenses.

Under a law passed in 2015, Hawaii will grant eight licenses for 
marijuana businesses, each of which can have two production centers 
and two dispensaries. Three licenses will be awarded for Oahu, two 
for Hawaii Island, two for Maui and one for Kauai.

However, the law banned inter-island transport. Marijuana advocates 
say that will separate the industry into distinct economies on each 
island, unlike other states. It could also lead to marijuana 
shortages, and go as far as preventing some dispensaries from even 
selling marijuana until laboratories are approved.

All medical marijuana must be tested in a state-approved laboratory 
before it's sold, but currently, there are none in Hawaii. Some worry 
that high startup costs and low patient numbers will prevent 
laboratories from opening on rural islands.

"Clearly, not every island can support a full-on laboratory," said 
Pam Lichty, president of the Drug Policy Action Group.

In response, Hawaii lawmakers are considering whether to allow 
marijuana to be transported to another island if a laboratory isn't 
available. Rep. Della Au Belatti, who introduced the bill, said 
lawmakers are trying to figure out how to get around federal laws 
that prevent marijuana from being transported by sea or air. She said 
she asked state agencies to look at other state policies for answers.

Some airports in Washington, Oregon and Alaska allow travelers to fly 
with marijuana, airport officials told The Associated Press. They 
said the Transportation Security Administration sends travelers with 
marijuana to local law enforcement officers, who allow people to 
board flights carrying legal amounts under state law.

However, the Federal Aviation Administration is required to revoke 
pilots' licenses if they knowingly commit a federal crime involving a 
controlled substance on an aircraft - for instance, transporting marijuana.

The Department of Justice says it is less likely to interfere with 
state marijuana programs as long as they're well-regulated, according 
to a 2013 memo.

Medical marijuana advocates in Hawaii say patients would benefit from 
relaxed laws on inter-island transport. For instance, a crop failure 
on Kauai, with only one license, could leave patients without 
medicine for months.

Marijuana shortages are not unheard of. States like Massachusetts and 
New Jersey have dealt with shortages due to low yields and mold 
contamination. Those in the industry say Hawaii dispensaries could 
face pot shortages if something goes wrong in the grow process, which 
could be a higher possibility as growers start out.

"Grows that are not set up properly will fail," said Jeremy Nickle, 
who owns Hawaiian Holy Smokes and is applying for a dispensary.

Hawaii's medical marijuana industry could also face other problems, 
such as the nation's highest electricity costs and a thriving 
underground market. Hawaii was the first state to legalize medical 
marijuana through the legislative process 16 years ago, which means 
many patients already know where to find marijuana.
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MAP posted-by: Jay Bergstrom