Haw. Code R. § 11-850-28

Current through September, 2024
Section 11-850-28 - License renewal fee
(a) The license renewal fee shall be calculated by the department by determining and adding the applicable base fee for each production center owned, operated, or subcontracted by the licensee in accordance with subsection (b) and the base fee for each retail dispensing location owned, operated, or subcontracted by the licensee in accordance with subsection (c) and discounting the total by the sum of the discount percentages applicable to the licensee in accordance with subsections (d) and (e).
(b) Fees per production center. The base fee for each medical cannabis production center shall be determined using the following table and is based upon a combination of the maximum number of plants cultivated at the production center and the type of manufacturing operations taking place at the production center.

Number of plants

Manufacturing operations

Cultivation, packaging, and labeling only

Solvent-less, water-based, or CO2-based processes

Other processes, including hydrocarbon-and alcohol-based

Up to 2,500 plants

$25,000

$35,000

$40,000

Up to 5,000 plants

$50,000

$60,000

$65,000

Up to 7,500 plants

$75,000

$85,000

$90,000

(c) Fees per retail dispensing location. The base fee for each retail dispending location shall be $20,000.
(d) Discount percentage based on market conditions in each county. The total base fee shall be adjusted by the applicable discount percentage for the licensee's county of operation.
(1) Oahu (City and County of Honolulu): zero per cent discount.
(2) Hawaii: Five per cent discount.
(3) Maui: Five per cent discount.
(4) Kauai: Ten per cent discount.
(e) Discount percentage based on market share.

The total base fee shall be adjusted by the applicable discount percentage for the licensee's prior year market share, which is the licensee's prior year gross sales divided by the sum of prior year gross sales for all licensees, as calculated by the department, expressed as a percentage.

(1) Market share greater than twenty per cent: Zero per cent discount.
(2) Market share between ten and twenty per cent: Five per cent discount.
(3) Market share less than ten per cent: Ten per cent discount.
(f) Prorated fees for new production center or retail dispensing location. Before the department issues final approval for a licensee to begin operating a new production center or retail dispensing location in accordance with section 11-850-32 or 11-850-33, respectively, the licensee shall pay an additional licensing fee for the new location. The fee shall be calculated by the department as follows:
(1) For a production center, the base fee shall be determined using the table in subsection (b) based upon a combination of the maximum number of plants to be cultivated at the production center and the planned type of manufacturing operations;
(2) For a retail dispensing location, the base fee shall be $20,000;
(3) The base fee shall be discounted by the sum of the discount percentages applicable to the licensee in accordance with subsections (d) and (e); and
(4) The discounted fee shall be prorated for the remaining term of the licensee's current license, on a calendar day basis.

Haw. Code R. § 11-850-28

Res 2/24/2022
Res 4/29/2022
[Eff 11/17/2022] (Auth: HRS §§ 321-9, 329D-7, 329D-27) (Imp: HRS §§ 329D-2, 329D-4, 329D-6, 329D-7)
Comp 8/7/2023
Comp 4/5/2024