Hawaii Attorney General Anne Lopez recently unveiled her plan to legalize adult-use cannabis, marking an important step in the state’s efforts to grow its cannabis industry.
While the State of Hawaii has permitted medical cannabis since 2000, the proposed plan aims to establish a regulated framework for recreational cannabis, addressing shortcomings in previous legislative attempts.
The evolution of cannabis policy in Hawaii
Hawaii’s journey to legalizing adult-use cannabis has not been without its challenges. Earlier this year, a bill to legalize recreational cannabis passed the Senate, but failed in the House of Representatives. Attorney General Lopez’s recent 294-page proposal is being hailed as a breakthrough, with lawmakers praising its rigor and strategic approach.
One notable feature of Ms. Lopez’s plan is the proposed tax structure. The plan suggests a 4.25% excise tax on adult-use cannabis, accompanied by a 10% surtax. These taxes would help fund law enforcement and educational programs aimed at preserving the well-being of young people. Senator Jarrett Keohokalole, chairman of the Consumer Protection Committee, praised the plan, saying it is “the best version yet” and addresses issues raised in previous reform attempts of cannabis policy.
Inspired by the Massachusetts model, the governor’s proposal incorporates a social equity program that aims to correct the injustices perpetuated by years of cannabis prohibition. It includes grants and support programs to help illegal growers transition to the regulated market, emphasizing the importance of bringing those previously engaged in illegal activities into the legal fold. Ms. Lopez emphasizes that “the most important thing we can do is get people who were growing and selling marijuana illegally into the legal market.”
The plan calls for the creation of the Hawaii Cannabis Authority, charged with regulating the cannabis industry, enforcing the law, implementing laboratory testing programs to ensure product safety, and launching initiatives in matters of social equity and health education.
Support for the medical cannabis industry
The proposal demonstrates great sensitivity towards the already existing medical cannabis industry. The 10% cannabis surcharge will not apply to medical cannabis purchases, in the interest of patients. Retail sales of adult-use cannabis are expected to begin 18 months after the proposal goes into effect, with medical dispensaries being affected first.
While some lawmakers are optimistic about the plan’s potential introduction and approval during the upcoming legislative session, others caution against the ambitious timeline. David Tarnas, chairman of the House Judiciary Committee, highlights the potential challenges, citing the Legislature’s focus on fighting recent wildfires and state budget negotiations.
