Should lawyers be allowed to represent medical marijuana dispensaries that are legal under Hawaii state law but not under federal law?
Should lawyers be allowed to represent medical marijuana dispensaries that are legal under Hawaii state law but not under federal law?
That’s the question the state Supreme Court is grappling with, and it’s asked for public input.
A proposed change to the court’s rules of professional conduct follows recent complaints by two high-profile attorneys that the court’s Disciplinary Board interpretation of the law — that attorneys working with would-be medical cannabis dispensaries could be assisting in breaking a federal law— is unfair to businesses seeking to compete for the lucrative and coveted dispensary licenses.
The proposed change would add that attorneys could counsel clients on actions “expressly permitted” by Hawaii state law, provided they also counsel clients about the “legal consequences, under other applicable law, of the client’s proposed course of conduct,” the rule posted on the court’s website states.
“It’s about time. Especially since they’re supposed to start accepting applications in January,” Rep. Joy San Buenaventura, a Puna Democrat who was on the House-Senate conference committee finalizing the dispensary bill, said Monday.
“Everybody needs time to get their ducks in a row,” she added.
Comments about the proposed rule must be submitted, in writing, no later than Oct. 16 to the Judiciary Communications &Community Relations Office by mail to 417 South King St., Honolulu, HI 96813, by fax 539-4801, via the Judiciary ’s website, or via email to pao@courts.hawaii.gov.
The state plans to issue eight dispensary licenses: three on Oahu, two for Hawaii County, two for Maui County, and one for Kauai County. Each license will allow the operation of two production sites and two retail locations within the county for which the license is issued. A selected applicant may receive no more than one license.
Applicants must have an initial investment of $1.2 million available, pay a $5,000 application fee and a $75,000 license fee.
The legislation allows licensed dispensaries to begin selling medical marijuana in Hawaii between July 15 and Nov. 1, 2016. There are from 12,000 to 13,000 medical marijuana patients in Hawaii.
The interim administrative rules for medical marijuana dispensaries are currently being written by a work group consisting of three attorneys from the Attorney General’s Office and leadership from the Health Department’s licensing and planning offices, a deputy director and the health director.
The Department of Health has received roughly 50 to 60 general questions related to marijuana dispensaries via its website, by email and phone since the signing of Act. 241, spokeswoman Janet Okubo said in an email message Monday.
“The department is working very diligently to stay on course to complete the interim rules by Jan. 4, 2016,” Okubo said. “Ensuring the health and safety aspects of this new program is challenging as we fast-track this multi-faceted initiative.”
The rapid turnaround time is just one of many reasons dispensary applicants need to be able to consult with an attorney, said the lawyers pushing for changes to the court’s rules of conduct.
“It is not surprising that many interested parties have consulted with lawyers for advice and assistance,” said former state Attorney General David Louie in a Sept. 21 letter to the Supreme Court that was posted on the Honolulu Civil Beat website. “The involvement of lawyers in a high-profile, heavily regulated area of first impression is both necessary and desirable. It is clearly in the public interest that prospective licensees comply with all the laws.”
Louie now works with the Honolulu law firm Kobayashi Sugita &Goda.
Former Honolulu mayor Peter Carlisle is also asking the Judiciary to loosen the rules. Carlisle, working with the Honolulu law firm O’Connor Playdon &Guben, said he’s the lead partner assisting the Wellness Group and has “actively provided legal advice, counsel and other services on their behalf.”
The Wellness Group LLC was created July 16 by Honolulu physician Marc Evan Kruger, according to the only records for a company of that name filed with the state Department of Commerce and Consumer Affairs.
“The licensing of dispensary and cultivation centers under Act 241 of the 2015 Hawaii Legislative Session is in the public interest of the citizens of Hawaii, has been adopted by the state Legislature with the approval of the governor, is consistent with trends in other states and is intended to provide pharmaceutical grade cannabis for medical treatment of appropriate patients,” Carlisle said in his Sept. 22 letter to the Supreme Court.