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Sweeping new marijuana legalization legislation landed in Hawaii last week that aims to comprehensively regulate not only adult-use cannabis but also the medical marijuana and hemp industries.
Sponsored by House Judiciary and Hawaiian Affairs Chair David Tarnas (D) and Senate Health and Human Services Committee Chair Joy San Buenaventura (D), the 311-page companion proposals would allow adults 21 and older to possess up to an ounce of marijuana and five grams of cannabis concentrate as of January 1, 2026. Adults could also grow limited amounts of marijuana at home for personal use.
The bills would also combine regulation of adult-use and medical marijuana, as well as hemp, under a single new agency: the Hawaii Cannabis and Hemp Office. Retail sales to adults would begin sometime next year, with taxes on nonmedical products set at 14 percent.
The new proposal comes after lawmakers last year fell short of passing a legalization bill. The Senate approved approved that measure last March, but, as with past efforts to end prohibition, it stalled out in the House of Representatives.
“The effort last year narrowly fell short in the legislature, but I feel that Hawaii really has an opportunity in 2025.” David Culver, senior vice president of public affairs at the industry group U.S. Cannabis Council, told Marijuana Moment in a recent interview. “We were so close last time around that I’m hopeful we see Hawaii go.”
Karen O’Keefe, director of state policies at the advocacy group Marijuana Policy Project (MPP), said there’s good reason to believe this year’s effort has a better chance at passage. On top of continued support from Gov. Josh Green (D), she noted that the state’s new speaker of the House, Rep. Nadine Nakamura (D), favors the reform.
“The hope is that it’ll be able to get through all of the committees that it’s referred to in the House,” she said. “It had the governor’s support. It passed the Senate. So really, the only obstacle is the House.”
Here’s what the legislation, HB 1246 / SB 1613, would do:
Establish the Hawaii Cannabis and Hemp Office, which would regulate adult-use cannabis, medical marijuana and hemp businesses. The office would be housed within the Department of Commerce and Consumer Affairs and charged with prioritizing public health and safety.
Regulators would promulgate rules for the state cannabis system, license businesses, register patients, maintain a seed-to-sale tracking system and publish studies and reports on various elements of the program.
Interim rules would be due by December 31, 2025, with final rules to be adopted by December 31, 2030.
An 11-person advisory board would study issues around federal law, patient access, equity and other matters, making recommendations to lawmakers and regulators. Members would include representatives of the hemp and marijuana industries, agriculture, public health and safety, Native Hawaiian culture, mental health and substance abuse treatment.
As of January 1, 2026, adults 21 and older could possess up to an ounce of marijuana and five grams of cannabis concentrate.
As of January 1, 2026, adults could also grow up to six plants for personal use and store up to 10 ounces of homegrown cannabis in their residence. Households with multiple adults would be limited to a total of 10 plants and two pounds of homegrown cannabis.
Sales of adult-use cannabis would be taxed at 14 percent, while the medical marijuana tax rate would remain at 4 percent.
After the costs of administering the program, 30 percent of state revenue would go to a social equity grants program. A public health and education grants program would receive 10 percent, as would a separate public safety grant program. Five percent each would go to a hemp grants program, to counties, to the attorney general’s office for nuisance abatement and to counter money laundering and organized crime.
Synthetic or “artificially derived” cannabinoid products would be restricted.
Edibles could not resemble candy or other products aimed at children, nor could they look like people, animals, fruit or cartoons.
Packaging could not include graphics, pictures or multiple colors. Medical marijuana specifically would need to be in white packaging.
Labels would need to include a universal cannabis symbol.
Cultivation could not occur in federal public housing, shelters, on-campus housing or hotels, among other locations, and it could be prohibited by landlords and homeowners associations.
Landlords could prohibit smoking or vaping marijuana but in general could not ban people from possessing non-inhaled cannabis products.
Smoking marijuana in public would be a civil violation, with penalties of up to $130 or 10 hours of community service
Driving under the influence of marijuana would remain a crime. A new penalty would also punish a passenger found smoking or vaping with a petty misdemeanor, carrying a fine of up to $2,000.
Unless kept in a vehicle’s trunk or other place out of reach of the driver, an open container would be punished by a fine of up to $130 or up to 10 hours of community service.
Selling cannabis to minors would be a misdemeanor.
Diverting marijuana from a licensed business to the unregulated market would be a Class C felony.
Unlicensed extraction of cannabis using butane would be a Class C felony.
Minors possessing up to five grams of cannabis concentrate could be charged with a petty misdemeanor, as could adults in possession of more than five grams of concentrate.
State and local government employees in general could not be fired for using medical or adult-use cannabis away from work or for testing positive marijuana metabolites. Employees subject to federal requirements would not qualify for such protections, and exceptions could apply in the case of collective bargaining agreements.
Regulators would license cultivators, processors, retailers, smaller-scale craft dispensaries and independent testing laboratories. Craft dispensaries could sell only their own cannabis products.
The first round of licenses under the law would be issued by July 1, 2026, though dual-use licenses allowing medical marijuana businesses to serve adult-use customers would be issued by January 1, 2026.
Licenses would be awarded based on a randomized lottery provided applicants meet certain minimum standards and qualifications. Participation by small businesses, Indigenous farmers and people from areas disproportionately impacted by the drug ware would be encouraged.
No person could have an interest in more than nine licenses, up to three per license class.
People with an interest in an independent testing lab could not have an interest in any other cannabis business.
People with an interest in a small-scale cooperative or craft dispensary could not have an interest in a business of any other license type.
All license applicants would need to be residents of Hawaii for at least five years and could not have any felony convictions other than for cannabis-related offenses, pardoned or expunged offenses or sentences completed more than 10 years earlier.
Regulators could craft rules to allow special event permits, social consumption and certain other activities.
Medical marijuana dispensaries could transition to dual-use (medical and recreational) retail facilities. Conversion would cost $50,000 per retail location and $25,000 for each production facility.
State-registered patients and caregivers could possess up to four ounces of marijuana. They could also grow up to 10 plants and possess up to a pound each of homegrown cannabis for personal use, with a maximum of two pounds per household.
State regulators would license medical marijuana co-ops of up to five patients.
Regulations would include rules around security, health and safety, advertising and labeling, energy and environmental standards, employee training and various other matters.
All employees of cannabis businesses would need to be at least 21 years of age. No one under 21 could enter retail stores.
Businesses would need to be at least 750 feet from schools, parks and public housing complexes.
Cultivators would be limited to 3,500 square feet of indoor canopy space and 5,000 square feet of outdoor grow space.
Handouts would need to be included with all sold products. They would need to include a variety of information, including instructions, warnings about safe use, potential adverse effects and the status of federal law—including how the conflict with federal prohibition impacts gun rights, employment and other rights and benefits.
Pesticide use on cannabis products would be regulated by the state Department of Agriculture.
Hemp businesses could sell cured cannabis flower provided it meets U.S. Department of Agriculture compliance standards and state rules around testing, packaging and labeling.
Aerosol hemp sprays would be prohibited.
Hemp cultivation would be prohibited within 300 feet of schools, childcare centers or playgrounds and could also not be within 100 feet of a residence not owned by the licensee.
With regard to hemp, regulators could prohibit specific cannabinoid products. Hemp tinctures could contain no more than 30 milligrams of THC per package and could only be sold to adults 21 and older.
A social equity grants program would assist applicants who’d resided in a disproportionately impacted area for at least five of the past 10 years or businesses with more than half of employees residing in a disproportionately impacted area.
“Disproportionately impacted area” would refer to areas of persistent poverty, medically underserved communities, and historically disadvantaged communities as determined by regulators.
Equity applicants would qualify for a 50 percent discount on application and licensing fees for their first five years of operation.
Equity grants would include financial assistance, technical support and training.
Funding would also go to community-based organizations to support childcare and youth programs.
Regulators would hire contractors to develop a public health and education campaign beginning later this year.
A public health and grant program would award funds to community-based organizations for a variety of health and education programs.
A separate public safety grant program would award funds to state and county agencies for law enforcement, crisis intervention, and enforcement of nuisance abatement laws, among others initiatives.
A hemp grant program would assist smaller cultivators with industry training, technical assistance and market research projects.
Marijuana businesses could deduct business expenses on their state taxes, even though similar deductions remain prohibited at the federal level.
An informational briefing on the new proposal is set for Wednesday afternoon in the House Committee on Judiciary and Hawaiian Affairs, which Tarnas chairs.
Advocates like O’Keefe at MPP had mixed feelings about last year’s proposal, which many saw as over-regulated. That bill, based on a draft from the state attorney general’s office, “had a lot of language that we considered too authoritarian, too restrictive,” she explained, noting that in some cases—such as a non-impaired driver who nevertheless had measurable THC in their system—the proposal would have actually increased criminal penalties. As such, MPP didn’t initially back last year’s plan, instead submitting comments and proposed amendments.
The Hawaii Alliance for Cannabis Reform, meanwhile, is encouraging legalization proponents to urge their representatives to support the new legislation.
“HB 1246 and SB 1613 not only legalize possession and home cultivation of cannabis, they also prohibit discrimination that can tear apart families and destroy—or even end—lives,” the group said in an email to supporters. “The twin bills include state-initiated expungement, provisions to preserve and increase access to medical cannabis, and new licenses that prioritize legacy growers and small farmers.”
This past fall, regulators solicited proposals to assess the state’s current medical marijuana program—and also sought to estimate demand for recreational sales if the state eventually moves forward with adult-use legalization. Some read the move as a sign the regulatory agency saw a need to prepare to the potential reform.
Photo courtesy of Chris Wallis // Side Pocket Images.
“}]] Sweeping new marijuana legalization legislation landed in Hawaii last week that aims to comprehensively regulate not only adult-use cannabis but also the medical marijuana and hemp industries. Sponsored by House Judiciary and Hawaiian Affairs Chair David Tarnas (D) and Senate Health and Human Services Committee Chair Joy San Buenaventura (D), the 311-page companion proposals would Read More
