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hawaii

hawaii marijuana laws

On June 9 2019, Hawaii decriminalized marijuana with the passing of HB 1383. The new law removes the possibility of jail time as a penalty for up to three grams of marijuana, but maintains a $130 fine. Hawaii’s legislature approved the bill and sent it to Democratic Gov. David Ige in May. Ige didn’t sign it, but he also didn’t veto it, effectively letting it become law. The new law will take effect on January 11, 2020. The new law also establishes a working group within the state attorney general office to study the impact of legalization in other states and issue a report on their findings and recommendations before the 2021 legislative session.

 

The Medical Cannabis Registry Program was created by Act 228 (Session Laws of Hawaii 2000), and is codified in the Hawaii Revised Statutes at part IX, Chapter 329, HRS. The Medical Cannabis Dispensary Program was created by Act 241 (Session Laws of Hawaii 2015), and is codified in the Hawaii Revised Statutes (HRS) at Chapter 329D, HRS. The Hawaii Department of Health is responsible for administering the Medical Cannabis Registry Program and the Medical Cannabis Dispensary Program.

 

Key Dates

Hawaii is not currently accepting dispensary license applications.

 

Application Fees/Start up costs

Hawaii is not currently accepting dispensary license applications.

 

Previous applicants were required to indicate that the applicants have resources in the amount of $1,000,000, plus a minimum of $100,000 for each retail location the applicant would like to operate. 

 

Available License Types

The application process for a dispensary license in Hawaii is currently closed. 

 

Hawaii allows 

  • 8 dispensary licenses, of which each licensee will be allowed up to 2 production and 2 retail dispensing locations, 

  • The state awarded 8 licenses in April of 2016.

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Qualifying Conditions

As defined in section 121 of  HRS-329 , a qualifying debilitating medical condition

includes:

 

  • Amyotrophic Lateral Sclerosis 

  • Cancer

  • Glaucoma

  • Lupus 

  • Epilepsy 

  • Multiple Sclerosis 

  • Rheumatoid Arthritis 

  • Positive status for human immunodeficiency virus,

  • Acquired immune deficiency syndrome,

  • Post-traumatic stress disorder 

 

Additionally, a chronic or debilitating disease or medical condition or its treatment that produces one or more of the following:

 

  • Cachexia or wasting syndrome

  • Severe pain

  • Severe nausea

  • Seizures, including those characteristic of epilepsy

  • Severe and persistent muscle spasms, including those characteristic of multiple sclerosis or Crohn’s disease.

 

History

House Bill 321, the bill that establishes a licensing system for medical marijuana dispensaries, passed on July 14th, 2015. This was 10 years after the state legalized medical marijuana in 2000. The law allows 8 dispensary licenses, of which each licensee is allowed up to 2 production and 2 retail dispensing locations. The state awarded 8 licenses in April of 2016.

 

 On June 9 2019, Hawaii decriminalized marijuana with the passing of HB 1383. The new law removes the possibility of jail time as a penalty for up to three grams of marijuana, but maintains a $130 fine. Hawaii’s legislature approved the bill and sent it to Democratic Gov. David Ige in May. Ige didn’t sign it, but he also didn’t veto it, effectively letting it become law. The new law will take effect on January 11, 2020. It also establishes a working group within the state attorney general office to study the impact of legalization in other states and issue a report on their findings and recommendations before the 2021 legislative session.

 

Other State Information:

  1. Estimated market size i.e. population and financial 

There are an estimated 54,000 marijuana users in Hawaii and annual revenue from sales and excise taxes has the potential to top $13.9 million if the sale of marijuana were to become legal. Hawaii’s marijuana market size is estimated at $71.9 million, a promising figure if considering to open a Marijuana Business in Hawaii

  1. Amount/types of licenses issued/available

Dispensary license applications were due January 29, 2016. The application process for a dispensary license in Hawaii is currently closed. 

 

Hawaii allows 8 dispensary licenses, of which each licensee will be allowed up to 2 production and 2 retail dispensing locations. The state awarded 8 licenses in April of 2016.

 

Adult use/medical/CBD only/ALL/none

In Hawaii, all individuals with a legal recommendation may possess and use medical marijuana. State licensed businesses may grow, process, transport, and dispense medical marijuana.

The Hawaii Department of Health is responsible for administering two distinct but related medical cannabis programs. Both the Medical Cannabis Registry Program and the Medical Cannabis Dispensary Program are designed to ensure medical cannabis is accessible for Hawaii’s patients, while making patient safety and public safety its ultimate priorities.

 

Hawaii statutes are aligned with the FDA’s standards to protect the health of Hawaii residents, and support Hawaii Department of Health (DOH) policies that restrict the distribution of products not approved by the FDA. 

 

Hawaii law prohibits adding any cannabis-derived substances to food, beverages or cosmetics for manufacture, distribution or sale.  The U.S. Food and Drug Administration (FDA) has not approved the use of CBD in over-the-counter products and does not consider these products safe.

 

The Hawaii DOH provides these Key Messages:

  • Products containing CBD are not generally considered safe and there may be potential health risks associated with them.

  • It is illegal to add CBD to food, beverages and cosmetics that are manufactured, distributed and sold in Hawaii.

  • CBD may not be sold as a “dietary supplement.”

  • CBD may not be marketed by asserting health claims because that would constitute prohibited misbranding or false advertising.

  • CBD is the active ingredient in an FDA-approved prescription drug. Therefore, it cannot be put into food, beverages and cosmetics, sold as a drug without a prescription, or marketed as a “dietary supplement.”

Estimated market size

Hawaii dispensaries sold 1,569 pounds of medical marijuana totaling $12.6 million in 2018, state Health Department statistics show.

how to start a marijuana business hawaii

If you are just starting your marijuana business, the next best step is to start a Business Plan to help educate your team and be ready to apply for a marijuana business license. If you are ready to apply for a Marijuana Business License in Hawaii, please Contact us or call our offices to set an appointment to get started. You can also select another State Opportunity, or fill out our Contact Form to discuss potential strategies such as Investment or Partnership Opportunities. 

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