Joint committees pass HB1246 to create Hawaii Cannabis and Hemp Office with amendments

Honolulu — The House Committee on Judiciary & Hawaiian Affairs and the House Committee on Agriculture and Food Systems voted Feb. 4 to pass House Bill 1246 with amendments to establish the Hawaii Cannabis and Hemp Office as a state regulatory authority responsible for adult-use cannabis, medical cannabis and hemp products intended for human use.

The measure, sponsored for decision making by Chairs David Tarnas (Judiciary & Hawaiian Affairs) and Kirsten Kahaloa (Agriculture & Food Systems), would administratively attach the new office to the Department of Commerce and Consumer Affairs (DCCA) while preserving operational independence. "It's important to note that it's for administrative purposes only," DCCA Director Nadee Nando told members while standing on the department's written testimony.

Why it matters: HB1246 would replace much of the current fragmented oversight of cannabis and hemp products by creating a single authority charged with licensing, product testing, public education and a social equity program. Supporters said regulation would move products off unregulated retail shelves and give the state tools to require testing, childproof packaging and public-health campaigns. Opponents warned of public-health and safety risks, particularly for youth and impaired driving, and urged longer implementation timelines and funding for prevention and enforcement.

Most important details: The bill passed both committees with amendments that the chairs described during decision making. Key changes and committee directions included: deferring appropriation and position counts to the standing committee report rather than the bill text; adopting amendments requested by the attorney general and other agencies; instructing the new office to develop a pre-rollout public-health education campaign; and adding narrower rules on tincture potency and serving sizes.

Public testimony and agency positions were strongly mixed. The attorney general, Andrew Goff, urged safeguards and warned the bill's original schedule compressed agency setup to six months; his office recommended an 18-month timeline and seed funding to stand up licensing and regulatory systems. "If the legislature is going to move forward with legalizing cannabis, it is essential that safeguards are in place to protect the public health and safety ahead of legalizing cannabis," Goff said. The Department of Health, while noting the bill's public-health provisions, said it remained "highly concerned about the public health impacts with increased access to cannabis" and asked the committee to delay first sales by 12 months to allow rules and staffing to be put in place.

Supporters including industry representatives, clinicians and civil-rights groups argued the bill would reduce harms from unregulated products, ensure testing and packaging standards, and create revenue for social-equity and prevention programs. "Regulated cannabis is far safer than both unregulated cannabis and the hemp synthesized intoxicants," Karen O'Keefe of the Marijuana Policy Project said. Medical providers and licensed dispensary representatives told the committees that regulated sales would provide testing and consumer protections currently absent from the illicit market.

Opponents — including prosecutors, police and several nonprofit and faith-based groups — highlighted studies and local experience they said show increased emergency visits, youth risk and impaired driving where adult-use laws were implemented. Honolulu Prosecutor Steve Alm said modern cannabis products are more potent and voiced concern about youth exposure and public-safety consequences. The Honolulu Police Department testified in opposition citing diversion and public-safety concerns.

Amendments and committee directions recorded in the hearing included: - Administrative attachment to DCCA with explicit language that DCCA shall not direct day-to-day operations of the Cannabis and Hemp Office. - A 5-year residency requirement and caps on licenses to prioritize local applicants: total licenses limited (chairs described a nine-license cap with no more than three in any category) and restrictions on transfers to reduce entry by multistate operators. - A horizontal licensing structure (separate licenses for cultivation, manufacturing, retail, delivery, consumption lounges and a "craft" license) intended to broaden participation by small and legacy operators. - Social equity grants and funding set-asides for training, technical assistance and restorative justice programs; revenue projections cited in testimony ranged from a commonly quoted $40 million in a first year to higher long-term estimates, with details to be refined in fiscal review. - Public-health provisions: the bill directs a pre-launch public education campaign on youth risks and impaired driving; chairs noted allocation of funds for drug-recognition training and substance-abuse programs tied to impaired-driving violations. - Tincture/potency language: the chairs proposed a change limiting tinctures to 3 milligrams of THC per serving and 90 milligrams THC per bottle, with an additional restriction that tinctures over 5 milligrams per bottle not be sold to persons under 21. - Implementation timing: committee chairs directed that appropriations and position counts be removed from the bill and placed in the standing committee report; members requested the record reflect varying agency requests for longer implementation windows (Department of Health requested 12 months; Attorney General recommended 18 months; some budget testimony recommended dates in 2026–2027).

Decision and votes: Both committees voted to pass HB1246 as amended out of committee. The committees also agreed to continue technical and substantive review in subsequent committees. The Judiciary & Hawaiian Affairs committee recorded multiple "no" votes and one member voting "with reservations," while the Agriculture & Food Systems committee also recorded a "with reservations" vote from one member; both committees' chairs and several members supported the measure as amended.

Next steps: The committees' chairs said the bill will proceed with a House Draft that incorporates the agreed amendments and that appropriations and personnel counts will be detailed in the standing committee report for later consideration. HB1246 will continue through the legislative process and will face further review in subsequent committees and in the budget process before any final effective dates are set.

Ending: Committee chairs thanked the public and agency presenters and closed the hearing after the roll-call votes. The bill will return to the legislative calendar with the amendments adopted in committee.