Bill Advances for Hawaii Adult-Use Legalization

This week, Hawaii’s Senate is on the verge of passing a bill to legalize adult-use cannabis, marking a significant moment for the second year in a row. After securing approvals from two committees on March 1, Senate Bill 3335 is poised for a historic vote. This legislation proposes that, starting January 1, 2026, individuals aged 21 and older will have the ability to buy, carry, and possess up to one ounce of cannabis flower or five grams of concentrate. Additionally, it would permit the home cultivation of up to six plants and allow residents to keep up to 10 ounces of dried flower at home.

S.B. 3335 aims to establish a comprehensive regulatory framework for a commercial adult-use cannabis industry, encompassing cultivators, processors, testing labs, microbusinesses, and various retailer types, including adult-use and medical dispensaries, as well as craft dispensaries dedicated to selling their own products.

The bill reflects recommendations from Democratic Attorney General Anne Lopez, who, despite not supporting the legalization of adult-use cannabis, recognized the shifting public opinion and the legislative momentum toward legalization, offering a legal blueprint in January.

Hawaii has been a pioneer in cannabis legislation, being the first state to legalize medical cannabis through the legislature in 2000. Now, with 24 states having embraced adult-use cannabis, Hawaii is considering joining the movement, spurred by Gov. Josh Green’s supportive stance and recent legislative efforts.

Significant to S.B. 3335 are amendments that differentiate hemp from cannabis, introduce a Hawaii Hemp and Cannabis Authority, revise criminal justice and rehabilitation policies to be more inclusive for industry participation, and clarify the Department of Health’s role in odor complaints related to cannabis cultivation and use.

The bill proposes a 14% excise tax on adult-use cannabis sales and maintains a 4% tax on medical cannabis sales from January 1, 2026. With a Senate floor vote imminent, the bill must quickly progress to meet the March 7 crossover deadline for consideration in the House.

Despite previous setbacks in advancing cannabis legalization under former leadership, current efforts are bolstered by a Democratic majority in the legislature and Gov. Green’s advocacy for reform. S.B. 3335 outlines the establishment of the Hawaii Hemp and Cannabis Authority and a Cannabis Control Board to oversee licensing and market regulation, emphasizing a cap on licenses to ensure diversity and prevent monopolies in the industry.

The bill also underscores the importance of ensuring medical cannabis patients have sufficient access to products and introduces a social equity program for equitable industry participation. Revenue from cannabis sales would support public health, education, public safety, regulatory efforts, and law enforcement, including a special unit to combat illegal activities related to cannabis.

While the bill faces opposition from law enforcement due to concerns about violent crime associated with unregulated cannabis operations, as seen in other states, lawmakers are optimistic about refining the legislation to address these concerns and move forward with legalization efforts.