Report Title:

Agriculture; Industrial Hemp



Provides the authority, procedures, and licensing, related to the production of industrial hemp in the State.



H.B. NO.














relating to industrial hemp.






SECTION 1. The legislature finds that industrial hemp is a suitable crop for Hawaii that will contribute to the future viability of the State's agricultural industry. According to legislation enacted in Vermont, farmers in Canada have reported a return rate equal to $800 per acre of farmed land.

As a food crop, industrial hemp seeds and oil have high nutritional value, including healthy fats and protein. As a fiber crop, industrial hemp can be used in the manufacture of clothing, building supplies, animal bedding, and other products. As a fuel crop, industrial hemp seeds can be processed into biodiesel energy and stalks can be pelletized or flaked for burning or processed for cellulosic ethanol.

The purpose of this Act is to promote the production of industrial hemp in the State.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:


industrial hemp

-1 Purpose. The purpose of this Act is to establish appropriate policy and procedures related to the production of industrial hemp in the State.

-2 Definitions. As used in this chapter:

"Department" means the department of agriculture.

"Grower" means any person or business entity licensed under this chapter as an industrial hemp grower.

"Hemp products" means all products made from industrial hemp, including but not limited to, cloth, cordage, fiber, food, fuel, paint, paper, particle board, plastics, seed, seed meal, seed oil, and certified seed for cultivation, if the seeds originate from industrial hemp varieties.

"Industrial hemp" means varieties of the plant cannabis sativa having not more than 0.3 per cent tetrahydrocannabinol, whether growing or not, that are cultivated or possessed by a licensed grower in compliance with this chapter.

-3 Industrial hemp; agricultural production. Industrial hemp is an agricultural product that may be grown, produced, possessed, and commercially traded in the State pursuant to this chapter.

-4 Licensing; application. (a) Any person or business entity that engages in the production of industrial hemp shall be licensed as an industrial hemp grower by the department.  A license from the department authorizes industrial hemp production only at a site or sites specified by the license.

(b) A license from the department shall be valid for twenty four months from the date of issuance. The license may be renewed and is not transferable. A person who has been convicted of a felony offense or a comparable offense in another jurisdiction shall not be eligible for a license under this chapter.

(c) When applying for a license, an applicant shall provide the following information sufficient to demonstrate that the applicant intends to grow and is capable of growing industrial hemp in accordance with this chapter:

(1) Filing with the department, a set of classifiable fingerprints and written authorization allowing the department to conduct a criminal records check;

(2) Filing documentation with the department that certifies that the seeds obtained for planting are of a type and variety compliant with the maximum concentration of tetrahydrocannabinol as prescribed by this chapter;

(3) Filing with the department, the location and acreage of all parcels sown and other field reference information as may be required by the department; and

(4) Any other information required by the department.

(d) To qualify for a license under this chapter, an applicant shall demonstrate the following to the satisfaction of the department, that the applicant has adopted methods to ensure the legal production of industrial hemp:

(1) Ensuring that all parts of the industrial hemp plant that do not enter the stream of commerce as hemp products are destroyed, incorporated into the soil, or otherwise properly disposed;

(2) Maintaining records that reflect compliance with this chapter and with all other state laws related to the regulation of industrial hemp;

(3) Satisfying any other requirements established by the department.

(e) Every grower shall maintain all production and sales records for at least three years.

(f) Every grower shall allow industrial hemp crops, throughout the sowing, growing, harvesting, storage, and processing of the industrial hemp to be inspected by the department.

-5 Revocation and suspension of license; enforcement. (a) The department may deny, suspend, revoke, or refuse to renew the license of any grower who:

(1) Makes a false statement or misrepresentation on an application for a license or renewal of a license under this chapter; or

(2) Fails to comply with or violates any provision of this chapter or any rule adopted therfor.

(b) Revocation or suspension of a license may be in addition to any civil or criminal penalties imposed on a grower for a violation of any other state law or county ordinance.

-6 Rulemaking authority. The department shall adopt rules pursuant to chapter 91 to implement this chapter, including rules to require industrial hemp to be tested during growth for tetrahydrocannabinol levels and to require adequate supervision of employees during sowing, growing, harvesting, storage, and processing of industrial hemp."

SECTION 2. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 3. This Act shall take effect upon its approval.