Hawaii’s sagging medical marijuana market is set to expand after the governor signed a bill into law that allows for more qualified patients and for dispensaries to sell more products.
It’s a welcome boost for cannabis in Hawaii, where adult-use marijuana legalization failed again this spring.
The June 27 signing of House Bill 302 was unexpected because Gov. Josh Green, himself a physician, indicated as recently as June 24 his intent to veto the bill over privacy concerns.
However, there’s a unique twist: The bill’s language also allows MMJ dispensaries to sell “hemp products.”
Hawaii’s MMJ program remains extremely modest, with roughly 30,000 registered patients as of last fall – a decrease of 15% from a peak of 35,444, according to state data.
In the meantime, Hawaii is experiencing some of the same problems as other states with illicit marijuana sales and competition from hemp-derived THC products.
Many more patients ought to qualify for medical marijuana under HB 302, which:
- Allows medical professionals to recommend MMJ via telehealth.
- Allows both physicians and “advanced practice registered nurses” t recommend marijuana for any condition where “the benefit of the medical use of cannabis would likely outweigh the health risks.”
- Establishes criminal penalties for illegal cannabis sales, including for anyone who posts ads or notices for unlicensed sales online.
In a statement three days before he signed the legislation, Green repeated earlier support for “efforts to expand access to medical cannabis for any medical condition.”
But he also expressed concern that the bill’s allowance for state health officials to review patient records “without warrant constitutes a grave violation of privacy.”
Green did not explain his apparent turnaround in his brief message to state lawmakers indicating his approval of the measure.
MMJ cultivation and sales in Hawaii are limited to holders of only eight vertically integrated business licenses allowed in the state, though each permit holder is allowed to open multiple retail locations.
There were 25 dispensaries throughout the islands as of April, with 11 of them on Oahu, the most populous island.
MMJ sales in Hawaii could reach $73 million in 2025, according to an MJBiz Factbook projection.
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