Given that Hawaii is often considered synonymous with "hang loose" counterculture, perhaps it is unsuprising that the state's consumable hemp product market has crested in recent years as legislators continue to balk at establishing a legal adult-use cannabis market. Indeed, an August 2024 report from the Hawaii Hemp Task Force submitted to the state legislature concluded that Hawaii residents were annually spending well over $50M (based on 2020 data) on consumable hemp cannabinoid products, which spending was expected to grow as part of what the Hemp Task Force characterized as a "nationally booming hemp cannabinoid sector."
Decrying the fact that Hawaii's native hemp industry, which, according to the report, "helped pioneer the modern hemp era in the United States," was losing ground to out-of-state hemp cannabinoid manufacturers, the report argued in favor of explicit legalization and standardized rules for production and sale of consumable hemp cannabinoid products within the state. At the same time, the report offered a sobering view on the risks to Hawaiians from the waves of synthetic and often untested or misbranded products flowing into the state. In attempting to strike a delicate balance between promoting the state's legacy hemp industry and protecting consumers, the report urged that:
"To prevent THC from getting into the hands of children and youth, Hawaii needs clear, simple rules that address this and are broad enough to cover potential synthetic psychoactive cannabinoids which currently exploit technical loopholes to circumvent federal regulatory definitions – not a blanket policy which prohibits nearly everything and destroys the Hawaii grown industry, while imports thrive."
Heeding some of the recommendations of the Hemp Task Force, the Hawaii legislature has recently introduced and advanced HB 1482, which was passed by the House in February, passed by the Senate (with amendments) earlier this month, was conferenced, and passed by the conference committee (with amendments) on April 25, 2025. Among other things, the bill, as amended, would mandate registration for manufactured hemp product distributors and retailers in the state. If the bill becomes law, beginning on January 1, 2026, it would become illegal for manufactured hemp products to be manufactured or sold in the state by an entity not in possession of a certificate of registration issued by the Hawaii Department of Health. Existing Hawaii law defines "manufactured hemp product" as "a product created by processing [hemp], as defined in [chapter 328G], that:
(A) Intended to be consumed orally to supplement the human or animal diet in tablet, capsule, powder, softgel, gelcap, or liquid form (e.g., hemp oil); or
(B) In a form for topical application to the skin or hair;
(2) Does not include any living hemp plants, viable seeds, leaf materials, or floral materials; and
(3) Includes any other product specified by the department pursuant to section 328G-4(a)(7)."
However, the bill specifically carves out the following types of
manufactured hemp products from the new registration requirements:
1) products that are topically applied; and 2) tinctures (provided
that tinctures may not be sold to individuals under the age of 21
and must otherwise comply with chapter 328G and any rules adopted
by the Department of Health). The bill defines tinctures as
oil-based products containing "no more than 0.3 per cent
tetrahydrocannabinol."
The certificates of registration issued by the Department of Health would be required to be displayed at all times in a conspicuous place at the place of business where the sale of manufactured hemp products is conducted. In addition, a digital reproduction of the certificate of registration would need to be displayed conspicuously on the website of a registrant conducting sales online. Moreover, the Department of Health would be required to establish and maintain a registry of all manufactured hemp product distributors and retailers doing business in the state and would be vested with the authority to inspect any entity or operation engaged in the manufacture or sale of any products containing or derived from hemp or products marketed as such.
Finally, the bill would also establish a new crime in Hawaii – any person or entity required to be registered as a manufactured hemp product distributor or retailer commits the offense of unlawful hemp distribution or retailing if the person or entity recklessly fails to register as a manufactured hemp product distributor or manufactured hemp product retailer as required by law.
Footnote
1. Note that Hawaii law currently bans the use of artificially derived and synthetic cannabinoids in certain manufactured hemp products including food products. See HRS § 328G-3. Late last year the Hawaii Department of Health published Interim Rules for Hemp Processing and Manufacturing of Hemp Products, which include requirements for lab testing, packaging and labeling of manufactured hemp products.
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