Hawaii's Attorney General has introduced a plan to legalize adult-use cannabis, aiming to establish a regulated framework that addresses past legislative shortcomings. The plan includes a tax structure with a 4.25% excise tax and a 10% surtax to fund law enforcement and youth educational programs, and it incorporates a social equity program to help illegal growers transition to the legal market.
Hawaii’s Attorney General, Anne Lopez, recently unveiled her plan to legalize cannabis for adult use, marking a significant step in the state’s efforts to develop its cannabis industry.
While the State of Hawaii has allowed medical cannabis since 2000, the proposed plan aims to establish a regulated framework for recreational cannabis use, addressing the shortcomings of previous legislative attempts.
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Hawaii’s journey towards the legalization of adult-use cannabis has not been without obstacles. Earlier this year, a bill to legalize recreational cannabis passed the Senate but failed in the House of Representatives. The recent 294-page proposal by Attorney General Lopez is hailed as a breakthrough, with legislators praising its thoroughness and strategic approach.
A notable feature of Ms. Lopez’s plan is the proposed tax structure. The plan suggests a 4.25% excise tax on adult-use cannabis, accompanied by a 10% surtax. These taxes would contribute to funding law enforcement and educational programs aimed at preserving the well-being of youth. Senator Jarrett Keohokalole, chair of the Consumer Protection Committee, commended the plan, stating it is “the best version to date” and addresses issues raised in previous attempts at cannabis policy reform.
Inspired by the Massachusetts model, the governor’s proposal incorporates a social equity program aimed at correcting injustices perpetuated by years of cannabis prohibition. It includes grants and support programs to help illegal growers transition to the regulated market, emphasizing the importance of bringing those previously engaged in illegal activities into legality. Ms. Lopez highlights that “the most important thing we can do is to bring people who were illegally growing and selling marijuana into the legal market.”
The plan envisages the creation of the Hawaiian Cannabis Authority, responsible for regulating the cannabis industry, enforcing the law, implementing laboratory testing programs to ensure product safety, and launching social equity and health education initiatives.
The proposal shows great sensitivity towards the existing medical cannabis industry. The 10% surtax on cannabis will not apply to medical cannabis purchases, in the interest of patients. Retail sales of adult-use cannabis are expected to begin 18 months after the proposal takes effect, with medical dispensaries being the first to be involved.
While some legislators are optimistic about the potential introduction and approval of the plan during the next legislative session, others warn against the ambition of the timeline. David Tarnas, chair of the House Judiciary Committee, points out potential difficulties, citing the legislative body’s focus on combating recent wildfires and state budget negotiations.
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(Featured image by Luke McKeown via Unsplash)
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