Hawaii Senators approve marijuana legalization bill, while state agencies undermine pro-reform governor with opposition testimony

In a joint hearing on Tuesday, two Hawaii Senate committees approved a bill that would legalize marijuana. After taking public testimony from several state agencies who strongly opposed or had concerns about the legislation in contrast to the reform-minded Democratic Governor in whose administration the lawmakers serve, the lawmakers voted to advance the bill with a number of amendments.

Both the Senate Health and Human Services Committee and Judiciary Committee voted in favor of the bill , which was introduced formally in both chambers last month and largely based upon a legalization program unveiled by the state Attorney General Anne Lopez.

The bill has been a contentious issue, with supporters of legalization criticizing the provisions that they deem excessively punitive while state agencies argue that lifting prohibition will undermine public safety. Both sides have proposed amendments that address their concerns. Some of these were discussed and adopted at Tuesday’s hearing.

The Attorney General’s Office reiterated that, despite having played a major role in the development of the legislation — and defended the bill against criticisms by law enforcement at the time — the Department “doesn’t support the legalization for adult-use marijuana.”

The office stated that if the legislative body does decide to legalize marijuana this session, it should be “balanced and moderate” with an emphasis on protecting the public’s health and safety as much as possible.

The Department of Taxation also proposed an amendment that would restructure cannabis tax policy, subjecting adult-use marijuana to a special 14 percent excise duty and exempting the product from the general state sales tax. Medical marijuana will be taxed four percent.

The committee members adopted this tax amendment during the hearing on Tuesday. The committees also approved a proposal that clarified that the bill’s provisions for expungements would not apply to convictions relating to “distribution”.

The attorney general’s representative did tell the committee they felt the bill represented a “good-faith effort to protect the public welfare” and was an improvement over previous bills heard by the Legislature.

The Office of the Public Defender gave testimony in support of the proposal for legalization, calling the reform a “far-overdue” reform and criticizing criminalization as an unsuccessful approach.

It said that “Perfection is the enemy to good, and this is an important step in the right directions.” It is time to bring cannabis out of the darkness, regulate it and take a compassionate and thoughtful approach to cannabis usage.

The Department of Law Enforcement of the state (DLE), has expressed “strong concerns” about the legalization bill. They believe that it will lead to an increase in traffic deaths and a bigger illicit market.

It said that if the state legalizes cannabis, “Hawaii will have to contend with large seizures of black-market illegal cannabis, which will compete for limited law enforcement resources, which must be used against illicit drugs, such as fentanyl, methamphetamine, ghost guns, and firework,” it added. The DLE has high enforcement priorities in dealing with all of these contrabands. Resources will be severely taxed if large quantities of illegal cannabis flood the market.

Colorado’s Department of Revenue also stated that there were no “significant” increases in tax revenue after legalization. Colorado estimated in late 2014 that it had generated approximately $2.5 billion in tax revenue from marijuana retailers since 2014.

DLE stated that it would like at least $2.5 Million from the state if the legislative passes the legalization measure “to give the DLE tools to even try to enforce the laws.”

Keith Hayashi, Superintendent of Education in Japan, expressed “strong concerns” about the possible impacts that this bill might have. He also suggested the measure could be improved by including provisions to “invest prevention and education initiatives.”

The superintendent stated that in order to minimize negative effects on our youth the Department will need additional funding to support prevention programs, expanded school counseling, and mental health services. Comprehensive training is also needed to help educators recognize signs of cannabis use and their impact on academic performance.

Hawaii Department of Agriculture said the bill would “clearly distinguish industrial hemp from marijuana” and “provide substantial protection for hemp farmers, and will support hemp industry in the future should the Legislature decide to legalize cannabis.”

The prosecuting attorney in Hawaii opposed the bill. He argued that legalization would increase “the black market” and “there is a higher chance of accidently using marijuana laced with fentanyl.”

The Department of Health said that it is “highly concerned” about the impacts on public health and the environment of increased access to cannabis and the opening of a market for adult use.

The County of Maui Police Department and the County of Hawaii Police Department also testified against the bill.

The key provisions of SB 3335 as amended in committee:

As of January 1, 2026, the proposal would allow adults aged 21 or older to possess an ounce of marijuana and up to 5 grams of concentrates.
Adults would be allowed to cultivate up to six plants at home and to keep up to 10 ounces (or more) of the marijuana that results.
Hawaii Cannabis Authority will be created to regulate and license adult-use marijuana businesses.
This body would be overseen and supervised by a Cannabis Control Board of five members appointed by the government, headed by an executive director with experience in public policy or cannabis regulation.
Under the plan, cultivators, processors and medical dispensaries would all be required to obtain a license. In addition, independent testing labs, craft dispensaries, adult use retailers and independent testing laboratories could also apply for a licence. Regulators can adopt rules around social consumption, special events and other cases of special usage.
Medical cannabis will be taxed four percent while adult-use cannabis is taxed 14 percent. Industrial hemp will continue to be taxed under the general sales tax of the state.
The tax revenue generated by marijuana sales will be divided equally between two funds: one that focuses on law enforcement and the other which promotes “cannabis social equality, public health, education and safety.”
People who have been convicted for crimes that are now legalized under the new bill can petition to expunge their records.
The bill would allow licensed marijuana businesses to receive state-level tax relief, allowing them the ability to deduct expenses that are prohibited at the federal level by Internal Revenue Service code (280E).
The bill would also create new criminal sanctions for those under 21 who are found to be in possession of marijuana. They could face up 30 days in prison and a fine up to $1000 for possession up to 3 grams.

The bill has been criticized by advocates for its overly strict approach. They point to new criminal laws which would impact minors, as well as restrictions, which could perpetuate the harms caused by the drug war. For example, the measure explicitly states that the smell or marijuana can be used as a reason to justify searches.

During the hearing on Tuesday, state agencies and law enforcers also showed their opposition. They presented a message about possible consequences of legalization which was radically different from what Gov. Josh Green (D), has spoken about the reform.

The governor stated last week that legalization was a “big issue” that still needed to be addressed by the state. He would likely sign a law to end the cannabis prohibition, if it were sent to him.

Green said to Hawaii News Now that he did not believe the sky would come crashing down if marijuana was legalized. He added: “I have also some thoughts about marijuana possibly blunting the effects, if you like, of these heavy drugs. These horrible drugs.”

Under the former governor, legalization advocates had a difficult time. Dave Ige, a Democrat, resisted reforming the law in part because of his reluctance to do so. Since Green became president, activists feel more confident. Since 2022, he has said he would sign a bill legalizing marijuana.

Ige allowed a bill that decriminalized the possession of only three grams of marijuana to become law in 2020 without his signature. The offense was punishable by $130 fine, without the threat or jail time. A House committee approved legislation on Monday to raise the possession limit from one ounce to 25 grams and to reduce the fine.

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The Democrats who control the Hawaii Senate announced last month that legalizing cannabis is one of the top priorities for this legislative session. They framed the reform as a way to boost the economy of the state.

The Senate has passed a separate bill for legalization that is stalling the House. Legislators have indicated that 2024 could be the year when legalization is passed.

A separate marijuana legalization bill that passed the Senate in march is still technically on the table in the two-year session of the legislature.

In Hawaii, two House Committees have advanced a separate Bill this month which would provide explicit legal protections for the therapeutic use psilocybin. Patients who meet the criteria would be allowed to consume and possess psilocybin under the supervision of a facilitator.