This document was created for entrepreneurs and managers who are operating or considering operating a cannabis-related business in the state of Hawaii.
It includes basic but important information on the topic, plus a comprehensive list of resources related to Hawaii’s cannabis regulations, market structure, and licensing process including links to Hawaii dispensary license application forms.
Pakalolo, as native Hawaiians called the cannabis plant, has had a place in medicine and culture on the island state of Hawaii for centuries — long before Hawaii became a U.S. state. Roughly translated, the term means “crazy tobacco. In the early-mid 20th Century, in an effort to curb the use of marijuana in the state, lawmakers made cannabis illegal across the board.
Today, Hawaii has a burgeoning medical marijuana program including a reciprocation program allowing out-of-state visitors to purchase their medicine while visiting the islands. Hawaii has also decriminalized marijuana and is on the verge of repealing prohibition altogether and instituting an adult recreational-use cannabis market in the state.
In 2000, Hawaii became the first U.S. state to enact a medical marijuana program via an act of the legislature rather than a voter initiative. Act 228, aka The Medical Cannabis Registry Program, allowed medical marijuana patients and their caretakers to acquire a license from the state that permits them to grow their own cannabis for medicinal use (Hawaii Revised Statutes part IX, Chapter 329).
It would be another 15 years before the state established a dispensary program for the commercial production and sale of marijuana and cannabinoid-infused products.
In 2015, Act 241, aka The Medical Cannabis Dispensary Program was passed and signed. Under the legislation, the Hawaii Department of Health became responsible for administering both a Medical Cannabis Registry Program and a Medical Cannabis Dispensary Program.
The licensing and oversight of dispensaries is the responsibility of the Hawaii Department of Health’s Office of Health Care Assurance. The agency is also accountable for monitoring the quality of medical cannabis products statewide as well as oversight of cannabis testing laboratories.
The law requires that medical marijuana patients obtain the approval of a licensed physician who will attest that the patient’s medical condition can be improved with the therapeutic use of cannabis. Approved patients are issued a “329” Registration Card by the Department of Health.
Dispensaries began producing medical marijuana in late 2016 after Senate Bill 321 officially established a dispensary system. Under the new regulations, eight dispensary licenses were up for grabs. Then in August 2017, the first medical marijuana dispensary opened on the island of Maui.
Although all eight of the allotted Hawaii medical cannabis dispensary licenses have been awarded, the push is on in Hawaii to end the prohibition of cannabis altogether and legalize the recreational use of marijuana by adults. If this happens there will likely be additional opportunities for cannabis entrepreneurs in Hawaii.
On a side note, in July 2016, Act 228 established an industrial hemp pilot program under the Hawaii Department of Agriculture to facilitate the cultivation of industrial hemp for agricultural or academic research.
Then in February 2017, the Hawaii House of Representatives Agricultural Committee voted to officially legalize the "planting, growing, harvesting, possessing, processing, selling, or buying" of industrial hemp.
In this article, we’re focusing on marijuana and cannabinoid-infused products. However, some dispensaries produce THC-free cannabis oils which fall under the definition of CBD.
These are the state’s CBD rules according to the Hawaii Department of Health.
In the summer of 2019, Hawaii legislators decriminalized cannabis under Bill HB1383. The measure decriminalizes possession of under 3 grams of marijuana, the smallest limit of any state decriminalization, removes the possibility of spending time in jail, and establishes a $130 ticket.
The possession of more than three grams is still a crime subject to arrest and potential jail time. Moreover, the law also provides retroactive expungement for individuals with similar past possession offenses and also creates a task force to study other states' cannabis laws. The decriminalization measures will take effect on January 11, 2020.
On July 10, 2018, HB 2729, an interstate reciprocity bill was signed into law allowing registered medical marijuana patients in other states to purchase their medicine while visiting Hawaii.
In order to take advantage of the program, travelers will need more than just their state-issued medical marijuana card. Rather, under the measure, non-residents may apply for a Hawaii card if they suffer from any of Hawaii’s qualifying medical conditions. Qualifying conditions in Hawaii include AIDS, cancer, chronic pain, epilepsy, multiple sclerosis, and PTSD. The card permits holders to purchase up to 4 ounces of marijuana and is good for 60 days from the date of issue.
Act 228 SLH 2000 – Hawaii’s initial Medical Use of Cannabis law.
Chapter 329 HRS-Hawaii’s Uniformed Controlled Substances Act (See Part IX – Medical Use of Cannabis).
Act 178 SLH 2013 – Makes several changes to the current law (such as: “adequate supply” of medical cannabis changes to 7 plants, regardless of maturity; useable cannabis changes to 4 oz; increase in registration fees from $25 to $35; and other changes) please read Act 178 for more information.
HB 2707 CD1 – Makes many clarifying changes to other existing laws . HB 2707 CD1 is currently pending Governors approval and if approved, changes will become effective as of July 1, 2016.
Chapter 11-160, HRS – DOH Administrative Rules for the Medical Use of Cannabis and the Medical Cannabis Registry.
Chapter 329D, HRS– Medical Cannabis Dispensary Law. Dispensary system provides for the establishment of dispensaries in the state of Hawaii and also amends other existing laws with respect to the medical use of cannabis.
Chapter 11-850 HAR– DOH Administrative Rules for the Medical Cannabis Dispensaries.
Act 242 SLH 2015 – Adds non-discriminatory language to existing laws as it may pertain to the medical use of cannabis.
Chapter 328J HRS– Hawaii’s Smoke Free Law
U.S. Department of Justice Memorandum for All United States Attorneys issued by James M. Cole Re: Guidance Regarding Cannabis Enforcement Policy issued August 29, 2013.
U.S. Department of Justice “Formal Medical Cannabis Guidelines” Oct. 9, 2009.
Act 116 SLH 2018 – Makes several changes to the current law:
Act 170 SLH 2017 – amends all references to Medical “Marijuana” to read Medical “Cannabis” in chapter 329 D, part IX of chapter 329, and sections 46-4, 201-13.9, 209E-2, 235-2.4, 237-24.3, 304A-1865, 321-30.1, 329-43.5, 421J-16, 453-1.3, 514A-88.5, 514B-113, 521-39, and 846-2.7 AND in Title 11 HAR (11-160 and 11-850). Change in language (documents, letterhead, websites, etc.) must be complete by 12/31/2019.
Act 041 SLH 2017 – amends part IX chapter 329 (Registry Program) and chapter 329 D (Dispensary Program). Effective 6/29/2017.
Act 230 SLH 2016 – Clarifies various medical cannabis laws in the state of Hawaii.
Act 242 SLH 2015 – Adds non-discriminatory language to existing laws as it may pertain to the medical use of cannabis.
Act 241 SLH 2015 – Hawaii’s Dispensary law that paves the way for the establishment of dispensaries in the state of Hawaii and also amends other existing laws with respect to the medical use of cannabis.
Act 178 SLH 2013 – Makes several changes to the current law (such as: “adequate supply” of medical cannabis changes to 7 plants, regardless of maturity; useable cannabis changes to 4 oz; increase in registration fees from $25 to $35; and other changes) please read Act 178 for more information.
Act 228 SLH 2000 – Hawaii’s initial Medical Use of Cannabis law.
Chapter 11-160, HAR – DOH Administrative Rules for the medical use of cannabis (Registry Program).
Chapter 11-160-56, HAR, Amendments to Confidential Information provides for exceptions to allow DOH to disclose certain registration information to authorized persons associated with medical cannabis dispensary system and federal law enforcement officials for official law enforcement purposes. (Dispensary Program)
Other Applicable Hawaii Revised Statutes – note, the links below are direct to the Hawaii State Legislature. Any NEW legislative action, or actions that change existing laws, will not be reflected until November (ish) of the same year.
Below is a bulleted list of answers to some of the most common questions related to Hawaii cannabis regulations. Please note that some of these rules have been revised since this list was published.
Below are links to Hawaii medical cannabis dispensary license application forms as well as background check forms and application instructions.
Below are links to information on banking for Hawaii cannabis businesses.
Below are the actual license applications. These are public record and may be useful for anyone who may be applying for a license in the future.
Below are links to information regarding registering as a medical cannabis patient in the state of Hawaii.