Hawaii is one step closer to becoming the 17th state in the US to legalize recreational cannabis for adults after a Senate committee passed a bill that would regulate and tax the plant.
Senate Bill 3335 Clears First Hurdle
On February 13, 2024, the Health and Human Services and Judiciary Committee in the Hawaiian Senate approved Senate Bill 3335, which would legalize and regulate recreational cannabis for adults 21 and older. The bill passed with a 3-1 vote, with only Senator Brandon Elefante voting against it. Two other senators, Henry Aquino and Maile Shimabukuro, expressed reservations but supported the bill.
The bill was introduced by Senator Joy San Buenaventura, who said that the current prohibition of cannabis has failed to prevent its use and has created a black market that harms public health and safety. She argued that legalizing and regulating cannabis would generate revenue for the state, create jobs, and reduce the burden on the criminal justice system.
What the Bill Do?
If enacted, Senate Bill 3335 would create the Hawaiʻi Cannabis Authority and Cannabis Control Board within the Department of Commerce and Consumer Affairs, which would be responsible for licensing and regulating cannabis businesses, testing and labeling cannabis products, and enforcing the rules and regulations. The bill would also establish the Cannabis Control Implementation Advisory Committee, which would advise the authority and the board on various aspects of the cannabis industry.
The bill would allow adults 21 and older to purchase and possess up to one ounce of cannabis and grow up to six plants for personal use, with a limit of three plants flowering at any time. The bill would also impose a 15% excise tax on cannabis sales, as well as a 10% county surcharge tax. The revenue from the taxes would be allocated to various funds, such as the general fund, the cannabis education and prevention fund, the cannabis regulation fund, and the social equity fund.
The bill would also create a social equity program, which would aim to promote the participation of people from communities that have been disproportionately impacted by cannabis prohibition in the legal cannabis industry. The program would provide assistance and incentives to social equity applicants, such as fee waivers, grants, loans, and mentoring.
The bill would not affect the existing medical cannabis program, which would continue to operate separately from the recreational cannabis program. The bill would also not change the current laws regarding driving under the influence of cannabis or consuming cannabis in public places.
What’s Next for the Bill?
Senate Bill 3335 still has a long way to go before becoming law. It will need to pass two more Senate committees, the Ways and Means Committee and the Commerce and Consumer Protection Committee, before going to the full Senate for a vote. If it passes the Senate, it will then need to go through the same process in the House of Representatives, where it may face more opposition. If it passes both chambers, it will then need to be signed by the governor, who has expressed skepticism about legalizing recreational cannabis in the past.
The bill also has a delayed effective date of January 1, 2026, which means that even if it becomes law, it will take two years before the legal cannabis market is up and running. This is to give the state enough time to establish the regulatory framework and address the potential conflicts with federal law, which still classifies cannabis as an illegal substance.
How Does Hawaii Compare to Other States?
Hawaii has a history of progressive cannabis policies dating back to 2000 when it became the first state to legalize medical cannabis through the legislature rather than a ballot initiative. However, it has lagged behind other states in expanding and improving its medical cannabis program, which only allowed patients to grow their cannabis until 2015 when dispensaries were authorized. The first dispensary opened in 2017, and there are currently eight licensed dispensaries operating in the state.
Hawaii is also one of the few states that has decriminalized the possession of small amounts of cannabis but not legalized it for recreational use. In 2019, the state passed a law that reduced the penalty for possessing up to three grams of cannabis from a criminal misdemeanor to a civil violation, punishable by a $130 fine. However, this is still one of the lowest possession thresholds and highest fines in the country.
If Hawaii legalizes recreational cannabis, it will join 16 other states and the District of Columbia that have already done so, either through the legislature or the ballot. The most recent states to legalize recreational cannabis are New York, New Mexico, and Virginia, which all did so in 2021. According to a 2019 survey, 63% of Hawaii residents support legalizing recreational cannabis, which is slightly higher than the national average of 60%.