As reported by Howard Dashefsky on KHON2 on June 28, the business of selling medical marijuana inHawaii just became more complicated.

Insurance company HawaiiEmployers' Mutual Insurance Company (HEMIC) announced it willstop providing workers' compensation insurance to seven of theeight businesses waiting for licenses to begin selling theirproduct in dispensaries. This makes it even more difficult to startoperating a medical marijuana dispensary because state law requiresall companies to provide workers compensation foremployees.

The news came without warning, the report says. Thirty-daypolicy cancellation notices were sent after what HEMIC called athorough legal evaluation of state and federal law regarding theproduction and sale of medical marijuana in Hawaii.

Related: 5 developments impacting medical marijuana in workers'compensation

“HEMIC has received two outside legal opinions regarding itsrole in providing workers' compensation coverage to Hawaii'smedical marijuana dispensaries. These legal opinions clearlyacknowledge that HEMIC and its board of directors have potentialexposure for criminal liability based on federal law applicable tomarijuana businesses. After receiving these legal opinions, theHEMIC board has voted unanimously to discontinue these policies andfully refund all premium payments to any dispensaries currentlyinsured by us,” HEMIC CEO Marty Welch said in a statement. “Whilewe regret that this decision necessitates new workers' compensationcoverage options for the dispensaries, it was imperative that theHEMIC board take swift action in accordance with its fiduciaryresponsibilities. This is strictly a legal decision and in no wayexpresses any moral judgment on the use of marijuana nor in any wayrefutes the potential medicinal value of marijuana in the treatmentof chronic pain or other medical conditions.”

Statewide impact

The state Department of Health says it is still looking into howthis could affect the program.

“The next 30 days may be challenging if the affecteddispensaries cannot obtain workers compensation coverage from analternate insurance company,” the department said in a statement.“The Department of Health will continue to work with all licenseddispensaries to determine if and how this change affectsdispensaries' businesses and what steps the dispensaries will taketoward ensuring access to safe medical marijuana products forregistered patients throughout the state.”

HEMIC's actions underscore the issues businesses across the U.S.are facing as states legalize marijuana for a variety of purposeswhile it remains a federal offense to possess or sellmarijuana.

Related: Insurance implications of legal marijuana: Questions continue toroll in

This story was first reported on KHON2, Honolulu, Hawaii, byHoward Dashefsky. More information is available on KHON2's website.