By MjInvest Editor in Chief on Tuesday, 26 March 2024
Category: Cannabis Business Executive

Adult-Use Bill Barely Passes Divided Hawaiian House

SB3335, a bill that would make Hawaii the last Democrat-controlled state to legalize adult-use cannabis, passed the full House on Friday by the slimmest of margins: 25-23. The legislation, which includes amendments from the Senate version, heads to the Finance Committee for consideration. If it passes, the two chambers will need to resolve whatever differences remain in the bill before it is sent to the governor’s desk for signing. That SB3335 has gotten this far is against the odds and truly historic for Hawaii. It is also cause for optimism among proponents. But there is still plenty of time to derail the bill, and opposition remains sufficiently strong among a swath of the Hawaiian public and their reps that they may yet succeed in keeping SB3335 from making it across the finish line and into existence.

That at least is the stated goal of a healthy percentage of House members, many of whom made their positions crystal clear on Friday. Indeed, what made the session particularly interesting to watch was the simmering nature of the debate, which was not really a debate, but a series of sometimes prepared comments, controlled by the House Chair and limited by both time and subject-matter, in that remarks were supposed to be restricted to the contents of the bill. That was not always followed, of course, and while the Chair kept pretty strict order throughout, it was immediately apparent that the opposition to SB3335 was not about fine-tuning the mechanics of legalization but condemning the very idea of legal adult-use cannabis occurring in any way, shape, or form.

The term “gateway” was used several times by representatives, and if anything, the sense one got from the most outspoken opponents of SB3335 was that the best path forward would be for Hawaii to double-down on the War on Drugs, if it has the police force to do so, which, according to testimony Friday, it does not. But the last thing these representatives were prepared to do – often at the behest of their constituents – was to view the War on Drugs as a multi-generational failure that needs to be rectified. To the contrary, it was the final speakers in opposition to the bill who made the most fervent pleas to colleagues that may have still been on the fence to not waste their votes. It was now or never, they seemed to be implying.

Of course, several representatives spoke effectively in support of the bill, and others addressed their reservations in support, but for some reason there seemed to be more who chose to comment in opposition. However, as virulent as the opposition may have been at times, a key takeaway from the session was that even the state attorney general, who outright opposes legalizing adult-use cannabis, has helped craft a bill that supporters of adult-use and those in the middle can vote for, a sign that compromise may win out in the end.

It also seemed like SB3335 was the only bill that mattered during the Friday session. The chamber took up many bills under consideration this year, but only one resulted in debate that lasted well over an hour, and included moments of frayed temper, some strange claims, several recesses, and what sounded very much like an awkwardly worded allegation by one member that colleagues considering support for the measure are only doing it because they anticipate reciprocal considerations (wink, wink) from cannabis businesses (or their proxies) as primary elections loom later this year. The member was slightly scolded for his not-so-subtle insinuation, but the charge was made, and it felt illustrative of a House in tension as it considers a bill that even some its detractors admit has enough good things in it that it has a good chance of passing even in a House almost perfectly divided. No one knows what the final tally will be, of course, but what Friday showed is that Hawaii, like every other state grappling with the legalization of cannabis, is figuring it out in its own very unique way.

And that way can be very slow, to say the least. According to one Hawaiian cannabis company, whose story Cannabis Business Executive will tell later this week, even though Hawaii was one of the first states to pass medical cannabis through the legislature in 2000, there was a significant delay of 17 years between the time that it passed as a medical program and when there was infrastructure to support patients. No wonder some of the representatives believe that the 18-month window to build the new program’s infrastructure is a tad ambitious. If history is a guide, they’ll be lucky if business is underway by 2030, or 2040. This time may be different, of course, and proponents of the bill did note that Hawaii cannot take forever to claim its rightful place in the global cannabis market, or it risks losing that market. That, of course, is precisely what the foes of SB3335 want.

March 22 Testimony on SB3335

Following is the testimony of House Representatives during the March 22 discussion of SB3335. It begins about 45 minutes into the session, which can be viewed here. The comments selected below amount to a little over 10,000 words broken up between about 20 representatives – those who chose to speak. Comments are in the same order the representatives made them on Friday, but they have also been edited for clarity. That said, some are still a tad hard to untangle, though the general intent is mostly clear. All told, the March 22 testimony on SB3335 quickly reveals the heartfelt concern and percolating emotions that fueled the proceedings, which seemed so staid and (mostly) orderly on the surface.

The first comments on SB3335 were made by the Chair of the Judiciary and Hawaiian Affairs Committee:

Rep. David Tarnas

Rep. David Tarnas (D), Chair of Judiciary and Hawaiian Affairs: This bill is a reasonable and moderate and measured approach to regulating the legal use of cannabis by adults in Hawaii. Legalizing cannabis for use by adults will actually have significant public safety and public health benefits for our community. It will better protect youth from drug use through education and investment in youth programs. It will reduce drug violence. It will promote public safety by allowing people to buy from legitimate businesses, not on the illegal market. It will ensure that the cannabis products purchased are safe, free from contaminants like fungus and mold, or even worse, methamphetamine and fentanyl. It will allow us to tax and regulate cannabis products, which currently provide no tax or revenue to the state. In states that have legalized cannabis, the facts are teen cannabis use has gone down, not up. The rates of psychosis-related diagnoses and prescribed anti-psychotics have gone down by a statistically significant amount in legalization states compared to prohibitionist states. There has not been an increase in fatal accidents attributable to cannabis alone in states that have legalized cannabis, because the drivers actually have alcohol and other substances in their system. You can’t attribute it just to cannabis.

If we continue to criminalize cannabis, we will continue to keep cannabis production and sales in the illegal unregulated market, which continues to cause real harm to our community because the product is not tested and can be contaminated with seriously harmful substances. We have specifically set up a system in this bill to manage all psychoactive cannabis products in this new authority, because right now, hemp derived psychoactive products are totally unregulated and available in stores and on the street today. This bill addresses this loophole to protect the public. This bill also allows 18 months to set up rules that provide an opportunity for other businesses to be established in production and retail. This new regulatory framework is designed to attract the legacy growers to participate in the regulated market. As we’ve heard in the hearings on this bill, the regulated market today can offer cannabis at the same price as it is sold on the unregulated market. This system can work well. Let’s give it a chance. Health and safety regulations, lab testing, potency labels, and taxation are only possible with legalization. It is time to legalize cannabis for adult use in Hawaii, and I would encourage members to support this measure. Thank you, Mr. Speaker.

Rep. Lisa Kitagawa

Rep. Lisa Kitagawa (D): I continue to be in strong opposition to this bill for many reasons and I would like to just share a few of those. The Attorney General’s Office stated the following during testimony in the most recent hearing. Attorney General Lopez has made it very clear that federal illegality, the growth of the illicit market, driving while high, and concerns regarding public health and protecting children, are serious issues associated with legalization. No effort to legalize cannabis however carefully planned and well-intentioned will be without such problems and risks. As the chief legal and law enforcement officer for the state, it is extremely concerning to hear from the Attorney General this level of concern over so many aspects of legalized marijuana.

The Department of Health’s testimony also highlights clear concerns regarding the legalization of marijuana and how legalization will not help individuals reach their full health potential but will in fact have negative impacts on the health of the public. They also mentioned that marijuana can provide medical benefits for certain medical conditions, which is commonly stated by supporters as a reason to pass this bill. However, the reality is that patients who need medical marijuana for medical reasons or conditions can already get access to it through the state’s legal medical cannabis program. Legalization is not required to continue our state’s medical cannabis program. As I mentioned last week, it is foolish for us to think that this bill has enough safeguards and regulations that youth will not have greater access to marijuana once it is legalized. We cannot stop the use of substances like alcohol, tobacco, and vaping [by] our youth even though these are adult-use only products.

The reality is that legalization allows easier access for youth to get marijuana, including in the form of edibles and gummies. This increase in access and use as stated by the Department of Health in testimony can lead to mental health and substance abuse concerns. The Department of Health shared data and testimony that adolescents and young adults who use cannabis daily or near daily are more likely than non-users to develop future psychotic disorders, such as schizophrenia, as well as develop cannabis use disorder, which is an addiction to cannabis that causes a psychiatric disorder, including mood anxiety and personality disorders. They also share data to suggest that adolescents and young adults who use cannabis are more likely than non-users who have suicidal thoughts or attempt suicide.

Since I’ve been elected to office in 2018, we have heard and passed numerous bills trying to address our mental health crisis in the state, as well as reduce our alarming youth suicide rates. Many of us have also fought against our youth vaping epidemic. We shouldn’t legalize another substance that puts our keiki at risk. We shouldn’t pass a measure that goes against everything we have been fighting for over the last few years in regard to these measures. And we shouldn’t make it easier for our kids to get access to substances that can have long-term negative effects on their lives and the lives of those around them. The legalization of marijuana has so many concerns to the public and safety, and as I mentioned last week has no economic benefit to the state, as it will not put money into our general fund but instead puts money directly into to special funds created in this bill. Let’s not pass a measure that does more harm than good. Thank you very much.

Rep Gregg Takayama (D): Please record a no vote for me.

Rep. Gene Ward

Rep. Gene Ward (R): Is it possible to record the speech of last week? I don’t want to go over it again, but I want to remind people that when we say the black market is not going to proliferate, I think if we look at even the medical marijuana card holders, 70-80% of those people go into the black market…the gaslighting says, ‘Oh, we got prices that are as cheap in the dispensaries as they are on the streets,’ but people vote with their wallets and that shows that that is not exactly true. Why would they be going to the black market? The other thing is that legalization is already here. There is no place [where] you can’t get marijuana, Mr. Speaker, and if you get it, as the prosecutor says, you get a slap on the wrist, you get a parking ticket. So, this thing about [how] we got to rush to get marijuana in and all that, even if you’ve got expungement as the big issue, feeling sorry for the victim, we can do that without legalization, Mr. Speaker.

But the black-market issue is a very, very big one, and the whole point of, ‘Let’s let all this stuff out of the bag, it’s benign.’ Look what happened to Oregon. Portland became a toilet of drugs and crazy people. They decriminalized by law any drug laws and now they [have] reversed that, Mr. Speaker, because they’ve seen, and they have learned from their experience. That’s what adults are, that’s what human beings are, we learn from experience. That’s why there’s erasers on the pencils. When you make mistakes you learn from the feedback. Do we think we’re not going to be the Colorado or [have] the consequences of California, where the cartels come in and it really becomes a black market?

I want to end with what Governor Lingle has talked about. She says we’re going to allow all these little pot shops to pop up in neighborhoods that are the poorest, and she said there’s a reason why we don’t allow liquor stores prohibited next to public housing, we’ve got them probably on their way because marijuana usage is centralized – and this is a geographical bias – in poor people. Who are the people who smoke nowadays? It’s not the middle class or upper-class people; it’s the poor people who smoke, and for the marijuana consumers, it’s the same group. So, we’re going to punish those people who are having a hard time struggling to exist. And a lot of those is you know, the ALICE families, asset limited income challenged earners, where the working poor in the Hawaiian community is 63% of the community, which is an embarrassment in a thing on its own.

So, Mr. Speaker, this is the worst thing that we could do. And when those people sing the praises of marijuana because of the money – I’m going to meet with the Japanese Consul General this afternoon to see if it’s true what the prosecutor said, if we legalize marijuana that the [number] of tourists that come and the amount of spending from Japan could be hit. Right now, they’re at about $2 billion. Even a percentage of what we get in terms of this great fund of $39 million we get in the first year and then we go up to $400 million, it’s going to be chicken feed, Mr. Speaker. This is economically, psychologically, sociologically, legislatively a bad deal. It’s against the people of Hawaii. We’ve got to learn from the mistakes of others, and not do it, Mr. Speaker. “When the judge said the odor of mendacity for marijuana is prevalent in so many of the speeches that say this is the best thing since sliced bread. Thank you, Mr. Speaker.

Rep. Terez Amato

Rep. Terez Amato (D): I rise in support. There is so much hyperbole and misinformation about marijuana being spread, especially by law enforcement officials who want to influence lawmaking instead of enforcing law. Instead of trying to convince you why marijuana is okay, I’m going to discuss the unscientific unfounded 50-year-old propaganda arguments we have all been hearing. Some say it will cause more traffic fatalities. The Attorney General misleadingly spread fatality data that lumped in marijuana with alcohol and presented zero evidence on weed alone causing a single death. Let me be clear. Officials like the Attorney General and county prosecutor, even the former governor, presented inflammatory statistically biased arguments to this body. Their bias numbers cannot be part of any rational discussion. Some say it affects brain development until age 25. While this may be true, the bill specifies not for kids. Not for kids. Putting age restrictions on kids is a proven technique that has demonstrably worked for reducing tobacco use. So why do some assume this won’t work for marijuana? Make it age 26 and up, if you want.

Look, I am a mother of four. If you really care about the keiki, as I do, and I know you do, and if kids on drugs are the concern, then instead let’s pass massive anti-meth and anti-fentanyl task force funding. Let’s fix real problems. It is well documented that teen use of dangerous synthetic Delta-8 THC is higher in states without legal marijuana, and you can buy Delta-8 at a convenience store. Why don’t we protect keiki by eliminating access to Delta-8? How about we stop teenage drinking and flavored-tobacco smoking? I was one of the introducers last year of HB833 to ban flavored tobacco, which couldn’t even get a hearing. Similarly, this year HB1778 died. Let’s solve the real problems and not point the blame at marijuana.

Some say there will be overdoses. Overdoses? If a kid drinks a bottle of alcohol, they can die. A Tylenol overdose will destroy a liver. And let’s be honest, too much weed does cause intoxication and altered perception and for some anxiety, but no one dies from smoking a joint. No one. Do you get uncomfortable if you smoke too much or eat too much weed? Yes, but you don’t die. Some say marijuana causes increased heart attacks and strokes. This is true of any burned inhaled plant, including tobacco, and alcohol is far worse. Are we Puritans from the 1600s that must control everyone’s activities? Should we start burning witches? This body is supposed to stand for body autonomy rights. It’s time to decide if you really do. Unfiltered marijuana is no worse than unfiltered tobacco. Both contain tar. So, are you going to ban tobacco? So far, we can’t even ban flavored vapes. Indeed, US Surgeon General C. Everett Koop recommended bong waterpipes for marijuana. Dr. Koop was a logical man of science.

Some say dispensaries will be robbed and there will be an increase in crime. By that flawed reasoning, we should eliminate all liquor stores and banks. Some say it is an election year, and we’ll all lose our seats if we pass the bill. Wrong. A majority of people statewide support legalization, so that is just fear mongering to influence other legislators. In my district, two thirds of the people want legalization and then this representative form of government, I work for my constituents, so I’ll vote yes. Some say it is illegal at the federal level so it will jeopardize federal funding. This is just wrong. Show me one state that has lost federal funding by legalizing weed. President Biden has been laying the groundwork to ease federal restrictions since 2022. Even HHS Secretary Becerra is working to change it to a Schedule 3 status. What is the Schedule 3? The DEA said Schedule 3 chemicals have a ‘moderate to low potential for physical and psychological dependence.’ So, let’s quit exaggerating Reefer Madness fear, propaganda and stick to facts. I agree with our president and democratic vice president Kamala Harris, who said nobody should have to go to jail for smoking weed.

Off-camera Rep: I yield my time.

Rep. Terez Amato: Thank you. Some say we already have medical marijuana. Even as a stroke survivor with chronic pain, my health insurance will not cover a 329 card, and the 329 process is unattainable for many, funding black market gangsters. My health insurer will not even give me a 329 examination to get a card and won’t cover marijuana as a prescription, but it is willing to hand me opioids like they are candy. This is bizarre at best, and it’s dangerous. Personally, I would rather have people enjoying a relaxing joint than see addicts dying from alcohol, fentanyl, or unsafe, unregulated laced black-market drugs. My science team tells me that mold on weed produces aflatoxins which are vigorous cancer-causing agents. People will use marijuana, so we owe it to them to give them safe, tested, inspected marijuana, and prevent cancer.

Some say this bill is cash-negative. Finance can fix this so it’s cash-positive by altering the taxation rate. 22% should do it. Some say it will make people lazy. There is zero evidence of this. This 1930s racist argument was reaffirmed by Reagan’s war on drugs, which resulted in excessive levels of imprisonment, and enforced drug detention centers and politics with disproportionate impacts on vulnerable poor minorities and women. Far too many in Hawaii have been sent to jail for simple marijuana possession at enormous cost to our state and lost wages, family disruption, incarceration costs, and income tax revenue. If you could prevent needless suffering, maybe even save one life, or keep one family together by passing this bill, would you do it? I would. decriminalization was gutted in this building just last week. No one should go to jail for smoking a joint, except apparently adults in Hawaii with the four-gram fatty.

Some say it’s a gateway drug. I challenge anyone here to cite a refereed scientific paper on this. I know many people who will only smoke weed and not drink alcohol. In fact, in Colorado after legalization opioid deaths were reduced by 6.5%, violent crime was reduced, and critical state revenue was created after legalization. Again, if you could prevent needless suffering, maybe even save one life by passing this bill, would you do it? I sure would, so I am voting yes.

The Honolulu prosecutor said this isn’t the 3% THC weed from Woodstock. That is the one true thing I heard from him, and Woodstock was not about dirt weed. Some people are about 50 years out of touch. Some say it causes psychological problems. I challenge you to show me two refereed scientific studies that agree on this fake propaganda statement. The days of 1936 Reefer Madness propaganda are over in most of the United States. Didn’t we learn anything from the 1920s prohibition fueling guns and gangsters, or the unintended consequences of the Reagan war on drugs? Prohibition in Hawaii will continue to funnel money to organized crime and strengthen dangerous illegal dealers. We can have safe, inspected, regulated, profitable marijuana and save lives doing it. Whether it is reproductive rights, housing, or marijuana. I promised my district that I would legislate from the heart using science as my guide, and most importantly vote the way they tell me, so I must vote yes. It is the wish of the people of my community. I know feelings are running high, but please consider my words and stick to facts in this close vote. I hope even one of you will switch from a hard no to a yes or yes with reservations for legalization. Save one family, save one life, today. Mahalo.

Rep. Scot Z. Matayoshi

Rep. Scot Z. Matayoshi (D): Thank you, Mr. Speaker. I was going to mostly stand on my testimony from last time, but I’m just going to hit some of the highlights and respond to some of the points brought up today. This is in opposition. The first is the price tag. It’s $39 million in a year where we are talking about cutting budgets to the departments, to social programs. Granted, the proponents of this bill would have you believe that most of this money would be made on that. But even if they’re right, we would be fronting the $39 million to establish this program, and I think that’s $39 million that we just simply do not have.

On the item of black market, other states [that] have legalized marijuana recreationally have seen a huge boom in the black market. I’ve heard from previous speakers that we want to tax them and that the taxes are going to make it up and prices are going to remain the same and competitive with the black market. Mr. Speaker, it is actually the opposite. The reason why the black market is able to sell marijuana cheaper is because they are not subject to the tax. So, if you make the tax what it is in the bill, or if you even raise it, as certain speakers have suggested, that’s going to differentiate the price even more. I think that in order to get the money back through this bill, we’re going to get it back through taxes. So, it’s virtually impossible to sell legal weed and get our money back and compete with the black market. You can’t have your cake and eat it too. The taxes make it impossible to do that.

The dangerous drivers. I heard one of the previous speaker’s speech that, most a lot of the drivers that were arrested for driving under the influence of marijuana were also intoxicated with alcohol as well. That may be true, but I do believe that if you are high and drunk, you are more likely to cause an accident rather than just drunk. So, I’m not sure why we’re adding marijuana to the mix. I think the increase in vehicle incidence with people who are driving high does make a difference. I think that we did see a rise in the Rocky Mountain area. The impact on tourism. I’m not going to go too much into it. Everyone knows that marijuana smells pretty terrible when it’s smoked. I want to point out that it’s already illegal to smoke marijuana pretty much everywhere right now, but it’s still happening. If we normalize recreational marijuana, we’re going to see an increase in those areas. Even though we’re saying no, don’t smoke in the park, don’t smoke on the beach, we are still going to see an increase in it, especially due to normalization.

The point I really want to hit, Mr. Speaker, that I did not go over the last time, is this is going to require a lot of law enforcement, and I think everyone acknowledges that, including the bill’s introducers and those proponents. In order to make this bill work, we’re going to need at least … 17 law enforcement [personnel] hired just for this program. Right now, HPD on Oahu is at 20% vacancy, we have 425 vacancies at last count. On Maui, we have a 30% vacancy with 165 vacancies, and on Hawaii Island, we have 89 vacancies. We’re not able to fill the vacancies we have – and we’re missing hundreds and hundreds of officers – and yet this program proposes hiring 17 more on top of the ones we’re not [yet] filling. I don’t believe that’s going to happen. If that doesn’t happen in order to effectuate this program to make sure it’s done the way the bills introducers would like it to be done, we’re going to need to start pulling officers from other places, and officers are already stretched so thin, they’re having trouble responding to 911 calls.

I’m personally afraid of the danger it’s putting our community in if we need to pull officers off the beat, or out of other divisions, in order to staff this cannabis office.  I don’t believe that that’s the right thing we should be doing for our community, and I really do believe that it’s going to make Hawaii a more dangerous place. It is still federally illegal. Even if they did move it down to a Schedule 3 drug, we’re not selling ketamine on the streets. I think that even a Schedule 3 drug is dangerous and should not be recreationally available, so I don’t believe that’s a valid argument. It’s true that no president so far has cracked down on any states that have legalized marijuana, but presidents change all the time. We’re going to have a presidential election, there’s no way to tell in the future whether Hawaii joining in with the other states is not going to have negative repercussions on our state.

The last point I want to make, Mr. Speaker, is that we seem to be creating a problem with this bill, and then trying to use the tax revenue to solve that problem, and I know other people will say that the problem is already here, but I really believe that we’re making it worse, and then using all the money for programs to make it better. It just doesn’t make sense to me. Thank you.

Rep. Bert Kobayashi

Rep. Bert Kobayashi (D): Mr. Speaker, in opposition, let me summarize what I said last time about this being a public health disaster. We have numerous dozens, maybe even hundreds, of refereed scientific journal articles about the bad health effects of marijuana. Certainly marijuana affects the brain and mental health addiction hosts avoid hallucinations, depression, anxiety. It also changes the brain structure, not just the brain functioning marijuana, especially amongst heavy adolescent users, changes, the brain structure changes in areas involving attention, memory, decision making, and motivation. We don’t have a precise way, even with our best scientific diagnostic electronic equipment, to detect how many brain cells die. Of course, that’s partly because brain cells normally die every day, but they’re regenerated. What happens is that you have, quote, amongst heavy users, an irreversible IQ loss up to eight points, as well as motivational mood changes. This is a powerful drug that has great effects on the brain. As such, it decreases job performance. It decreases academic performance, increases dropouts. When you take marijuana, you will affect everything from motor skills to memory to attention problem-solving. This is not good for job performance and for academic performance. So, I repeat, we have much evidence that this is a public health disaster.

On the point about the $39 million mentioned from the representative, the Attorney General iterates that she would recommend $10 million for a cannabis regulations special fund, $10 million for a cannabis social equity special fund, $5 million for public health and education. I would note on this point, we already spend seven and a half million dollars on tobacco prevention and control, but this money mostly comes from the biggest ever tax legal settlement in Hawaii history, which brought in $40 million plus the prior fiscal year, in FY ‘2, and is expected to bring us over $1.2 billion in the next 25 years. But even with all of that money, and even with the seven and a half million dollars spent on tobacco prevention and control, many people of course see tobacco as a big problem, especially the vaping issue.

So, what we are facing is dollar needs that grow upon us. I would mention Oregon, which spends millions of dollars every year on public safety enforcement. In 2022, they had a special one-time emergency fund of $22 million allocated for law enforcement. And guess what? When applications went out, applications came in at $12.8 million dollars more than the $26 million. So, the needs grow for all these special funds, whether it be public health education, notice abatement, law enforcement special fund, etc. All of this is a bit like a deep, deep, dark, empty pit that calls out for money. And we cannot solve all of these problems with money, because so many of the ill effects of marijuana cannot be measured precisely. I’ll quit at that. Thank you very much.

Rep. Jackson Sayama

Rep. Jackson Sayama (D): Mr. Speaker, with reservations, with brief comments. Well, it doesn’t really take a genius to see that this bill and issue is very contentious both on a social, financial, and perhaps moral, front. First, I just want to note my concerns with this bill and issue. As the chair on Labor and Government Operations had noted, this bill would increase the significant financial burden on the state. And this year with the Lahaina wildfires as well as the hazard pay from COVID era looming on the legislature’s budget, I struggle to see how we will be able to pay for the upfront cost to administer this extensive regulatory regime. The Council on Revenues just released another projection, which noted that its economic projections will remain relatively stagnant at 4%. And so, again, there are significant financial concerns for this body to consider.

Next, is the 18-month transition period, which the chair of Judiciary had noted. On page three of the Attorney General’s report, it noted that the 18-month period was based off of the Massachusetts model, but it also noted that it would welcome a longer transition period. Mr. Speaker, I believe that the 18 months, while well-intentioned and well-researched, is insufficient to create a robust regulatory regime, as this bill envisions, and hopefully through an extended transition period, we will be able to inform the public – really through the education campaign that this bill creates –[about] the risks of marijuana use, as well as establishing a robust campaign to educate the public on this matter.

Sorry, I do have a few more points. As also was noted by the labor and government operations chair, recruitment and hiring are also an issue. This bill creates numerous full-time positions within various departments, and according to Dept. off Human Resources 2024 vacancy report, we still have on average 27% vacancy rates in civil service positions across the state of Hawaii and of the positions filled, 39% are retirement ready. Mr. Speaker, I struggle to understand how the state will be able to fill all these positions that this bill creates within an 18-month period to effectively carry out the regulatory structures listed.

Finally, I do have some personal concerns relating to self-grown cannabis plants. I have no problem with parity or fairness, treating recreational cannabis like any other recreational substance, such as alcohol or tobacco. But the fact of the matter is, I don’t think we allow the general public, the consumer, to grow their own tobacco products, to create and consume or sell any of their homegrown perhaps alcohol products, as well. So, I do have some personal concerns there.

Now, all these concerns being said, I do support this measure in some ways as well. Like the chair on Judiciary and Hawaiian Affairs said, and as the Ag noted, this creates the robust and reasonable regulatory regime for adult-use cannabis. Having visited three cannabis production facilities in the state and a dispensary on Oahu, I have been thoroughly impressed with the quality of these facilities, the safety, the security, the professionalism of the staff there. This bill provides parity for medical and recreational cannabis, I believe. And so, I am fairly certain that if this bill is thoroughly implemented, that there will be sufficient safety measures there. This will also improve consumer protection significantly. Again, currently, marijuana recreational use is completely unregulated. Consumers do not know what they’re putting into their body when they consume marijuana. This could be on various fronts such as mold or extremely high THC levels, which could pose safety hazards to the consumers, much like tobacco and any other sin products, we need to make sure that marijuana is well-regulated and managed for the consumer safety as well.

This bill also Institute’s a number of public health protections. As the AG noted in their draft report, this bill implements extensive well-funded public health protections, including mandatory public education campaigns to inform the public about the new laws and continuing risk to public health posed by cannabis, and financial assistance for public health services such as addiction and substance-abuse treatments. It goes on to establish a number of special funds and grant programs that supplement financially the number of nonprofits that address the social ills from other substance abuse, as well.

Finally, Mr. Speaker, I do want to note again that while the Attorney General in the report noted that they do not support the legalization of adult-use cannabis, they say, quote, “I am proud of what we have presented here today. This is a reasonable moderate bill that sought to balance a myriad of interests with significant known and unknown risks.’ Mr. Speaker, we rarely vote on any measure here with certainty. There are always going to be risks involved, but from a consumer protection point of view, this bill would help the public. This will make consumption of recreational marijuana safer. And with that, again, I stand with reservations.

Rep. Della Au Belatti

Rep. Della Au Belatti (D): In support, largely for many of the reasons articulated by our chair of Judiciary and Hawaiian Affairs, and I would like to thank that chair for doing the tremendous work that was undertaken to craft a such a moderate and reasonable bill that looks out for the public safety, health, and welfare of our people. I also support this bill because of many of the reasons outlined by people who are opposed to it, because of the fact that cannabis presents a harmful, dangerous effect to our residents, our community, and mostly because of the harm that it can cause to the youth. And I’ve always approached this area of cannabis regulation from that perspective. How do we craft laws that protect public health, safety, and our youth?

Mr. Speaker, my reservations, though, come from the fact that there are federal actions that effect this public safety, health and welfare, federal actions that we must respond to as a legislative body, and these are actions that we don’t have any control over. It was the president of the other party in 2018 [who] legalized and removed hemp – defined as cannabis with low concentrations of the psychoactive compound Delta-9-tetrahydrocannabinol – from the definition of marijuana in the Controlled Substances Act. This action by the president of another party has led to a situation where we have legalized the purchase of very dangerous cannabis products in this state. Products where you can walk into Ala Moana and purchase things like Green Roads CBD Puff Melon Ice, or Green Roads CBD Puff Lush Ice. How about CBD Puff Mixed Berries, which have tremendous amounts of cannabinoids in them? You can also go into these legal sites and purchase hemp-derived cannabis products – edibles, Mr. Speaker, like fruit drops. How about lemon drops, CBD gummy bears, or CBD assorted rings?

There is no regulation stopping anyone under the age of 21 from purchasing these products. These products are used, and if seen by law enforcement, cannot be stopped by law enforcement. So, it is this measure that looks to regulate the hemp market, the illicit black market, and yes, even strengthen the medical cannabis market that is going to protect the public health and safety of our people, because of the state of federal laws that created a state of deregulation and lack of regulation and lack of testing, not just in our state, but in many, many states. And it was nice, when this bill was heard, to get confirmation that the attorney general is also very concerned about this area of hemp-derived cannabis that is uncontrolled, unregulated, and untested in our community.

Mr. Speaker, another reason why I support this with reservations is because there is another impending federal action that may take place, where if cannabis is rescheduled to Schedule 3, it could cause chaos even within our medical cannabis market. So, this bill, as it stands now, can move to the Finance Committee and other issues can be addressed so that the House comes up with a position on how to best regulate cannabis. We don’t need to take the bill wholesale from what the Senate did, and we’ve already amended it. We don’t need to take the bill wholesale from how the Attorney General amended it. The title says Related to Cannabis. If this body is truly interested in regulating and protecting our community, especially our youth, who are vaping at higher numbers, and some of these hemp-derived legal cannabis businesses in our community are selling vape cartridges that are getting into the hands of our youth. If you’re really serious about it, let’s continue to move this bill and find a way to have a House position that regulates, tests, and taxes. We already tax these hemp-derived cannabis products at 4%. Let’s figure out a way that we can tax them more as this bill currently does, and let’s figure out a way to freely determine our own destiny with legislation that can continue to be worked on, because you know what, we have April still to go. Thank you, Mr. Speaker.

Rep. Elijah Pierick

Rep Elijah Pierick (R): So, we’ve already voted on this measure. 23 of us voted no already, some of us for the reservations, and some of us have voted yes on a previous day. So, obviously I’m addressing you, but it’s mainly for those who are trying to switch from a no vote to yes with reservations. Primary elections are coming up in five months in August, and there are many people, political action committees, donors, and candidates, who are waiting for that no vote to switch to a yes vote with reservations.

Off-camera Rep: Point of order.

Chair: Please restrict your remarks to the content of the measure.

Rep. Pierick: I am against this bill, and I encourage everybody to vote no against it.

Rep. Diamond Garcia (R): I want to thank the speakers who have spoken thus far both for and against it. There’s been a loss of the numbers thrown around of fatalities and children, from both sides, and the impact it will have on Hawaii’s residents. But I want to speak from a personal standpoint. I was born and raised in public housing programs here in Hawaii, and this was prevalent. There was green cigarette weed all around us. I mean, everybody did it in public housing, and the influence came upon me and my siblings at a very early age. The reason why I’m voting no today is because I’ve seen the impact that this has had on my family, and the impact that it has had on families and friends around me in public housing.

Rep. Diamond Garcia

And some may say, ‘Well, you know, this isn’t a gateway drug.’ Well, to some people, it could be. Just like with alcohol, some people are very tolerant, some people are not tolerant. Some people can drink a whole six pack and be okay. Some people will drink two beers and not be okay. Same with marijuana. Some are tolerant, some are not. But I do believe, Mr. Speaker, that the medical cannabis industry should be expanded here, and I do believe that more people would be a lot better off if they had access to medical marijuana versus all the opioids that are being used, the antidepressants that are being used. But I don’t believe that full legalization will be good for society.

I’ve talked with my family and friends about this recently who still smoke weed on a daily basis, and they even say, ‘Diamond, please vote no against this,’ because they know the impact it will have on the children of Hawaii. And I just heard a couple previous speakers [talk] about these Delta-9 vapes and all this stuff, which are currently being sold, and the impact that that’s having on children currently in schools. We argue all the time about banning flavored tobacco, big rallies up here about banning flavored tobacco, yet we’re going to legalize marijuana? And by the way, there’s full THC [vape pens]; just go to California, Washington, Oregon; you go to the stores, all these flavors – mixed berry, cherry strawberry – and we think that those items are not going to be in the hands of our keiki? We can even control flavored tobacco products. Teachers are coming to us saying they’re having behavioral issues in school because they’re hooked on nicotine products. And if Delta-9 is a problem currently, what makes us think full THC pens and edibles and other stuff will not get in the hands of children today? It’s just impossible. That’s the first reason. The second reason is this. I surveyed my district and the overwhelming majority, Mr. Speaker, over 65% who responded said they do not support full legalization. So, therefore, I would urge my colleagues to remember our state motto – “Ua mau ke ea o ka aina i ka pono,’ – the life of this land is perpetuated in righteousness. So, cannabis isn’t an evil plant, but it’s how we use it and how we regulate it, and this bill in my opinion is not good for society. No vote.

Rep. Cedrick Gates

Rep. Cedrick Gates (D): I stand in strong support. Mr. Speaker, as your chair of Agriculture and Food Systems, I look at cannabis and hemp as the plant that it is. But when we consider SB3335, we must ask ourselves one fundamental question. Why should we strongly regulate and tax cannabis here in the state of Hawaii? The answer is simple. Because tens of thousands of pounds and millions of dollars are already being exchanged illegally each year in Hawaii through the illicit market. With the feds legalizing hemp products in 2018 through the Farm Bill Act, we now have hemp [dispensaries] in our communities, selling products that we see as illegal but are not illegal on the federal level.

And that is my fear, Mr. Speaker. If the federal government legalizes cannabis, it puts Hawaii residents and consumers at a disadvantage because they will be operating under federal rules rather than a state framework that is unique to our communities. Right now, cannabis is sold indiscriminately on street corners, in schools, homes, businesses across the island. It’s sold to anyone willing to pay, kids included. There are no safeguards. Right now, there are no rules. Cannabis can be tainted with fentanyl and other drugs incorporated into edible products that look like candy.

Opponents of SB3335 have raised concerns that cannabis will be sold on every corner or lead to more criminal activities in our communities. Well, Mr. Speaker, I share those concerns. I’m concerned that cannabis can already be sold on every street corner, that cannabis is already be sold by criminals. I’m concerned that these same criminals are selling cannabis and hemp products to our children, the one we want to protect. We simply can’t turn a blind eye to the fact that cannabis is currently being sold illegally each and every day in Hawaii. In previous testimony from NCPC and from HPD, law enforcement admits that it already doesn’t go after cannabis offenses. They’re focused on meth and fentanyl, which we believe their resources should be allocated to.

If you don’t know that cannabis and hemp products are being sold in our community legally, I’d urge you to look into getting a prescription to get help for glaucoma. It’s cliche and I cringe every time I point this out, but it’s accurate nonetheless that the definition of insanity is repeating the same behavior and expecting a different result. We’ve repeated the same behavior of turning a blind eye to see these types of crimes increasing in our community and us not doing anything about it. Cannabis has always been outlawed, yet the illegal market continues to flourish. We had the 1980s war on drugs before I was born, Mr. Speaker, yet the illegal market has continued to flourish. We had Operation Green Harvest here locally in Hawaii, which contributed to many Native Hawaiians being incarcerated, yet the illegal market has continued to flourish. We established the medical cannabis dispensary as a legal outlet, and the illegal market continues to flourish. We decriminalized possession of cannabis in small quantities, yet the legal market has continued to flourish, because we provide no legal means to access cannabis here in Hawaii besides the medical market.

This bill provides another path, one that has already been taken by 24 other states to legalize, regulate, and tax cannabis for 21-plus adult use. The majority of the public here in Hawaii also supports legalization, and I feel that it is our duty to do the people’s work and give the people what they are asking for. The governor is also in support as well as Senate and House members here. Under this bill, cannabis can only be sold at a limited number of strictly regularly Didn’t licensed retail, it can only be sold to 21 and over, it must be tested and certified by labs, it can’t look like candy or other products that might be enticing to children, and it has the 14% tax. The funding that will be generated through this will also go to law enforcement, social programs, and other initiatives to help our state, and the tax revenue can exceed $100 million in a few short years. Cannabis industry workers would be allowed to organize and join unions, creating new job opportunities with living wages. This bill no longer includes the appropriation, and they will use the funds from the medical program to administer this program.

Most importantly, this bill takes the best practices and lessons learned from other states that have legalized cannabis, so we avoid the unintended consequences feared by some. Mr. Speaker, I’m proud of the strength and leadership of our legislature that we have demonstrated over the years on many important issues, from being the first state to establish 100% renewable energy goals to being among the first states to allow same-sex marriage. I know that change can be scary, and that this bill might seem like a significant change to some of you. But at this time, I also know that each one of you are strong, and I know that you guys are all leaders, and can see clearly that the data supports legalization here in Hawaii, whether it’s the reduced usage by youth, whether it’s cleaner, better, and safer products for the end consumer, or the money that can be generated to then go to paying for additional law enforcement to not only go after kids using cannabis but also other illegal crimes in the community.

Rep. Chris Todd

Mr. Speaker, I hope you all understand that Hawaii is the last remaining democratically controlled state to consider legalizing and regulating adult-use cannabis. I hope that you guys join me in supporting SB3335 and demonstrate the leadership our legislature is known for. In closing, Mr. Speaker, you have always told your members that the House of Representatives needs to lead the way for the future of Hawaii. With your support, we’ve gotten this far as the discussion relating to cannabis, so let’s continue to lead the way. Thank you, Mr. Speaker.

Rep. Chris Todd (D): I just wanted to say I’m in support and set a good example by inserting my prior comments from last week’s conversation. And just note to supporters and opponents that there’s a variety of very extensive studies done on the subject matter, virtually all of them show there’s no positive or negative impact in pretty much any capacity and any direction you look at. So, given that, I kind of err on the side of individual liberty. Thank you.

Rep Pierick: The majority of my constituents are Filipino Catholics, over 60%, and so to represent them, I’ll be voting no. I ask the question for all of us, who do we represent, what’s the majority makeup, what’s their demographic, what’s their religion, what’s their preference on this issue? That should have a big part to play on what we should do.

Off-camera Rep: Point of order.

Chair: Please confine your remarks, representative.

Rep Pierick: Thank you. With regards to this bill, it receives public testimony in committees, and it receives testimony with emails, phone calls, text messages, and direct messages to the representatives. So, with regards to this bill, we ask ourselves, what is the pulse of the community on this issue?

Off-camera Rep: We’re not talking about the pulse of the community, but the content of the adult cannabis bill before us.

Rep Garcia: Mr. Speaker, my point of personal privilege I guess would be, mentioning how your district feels about this bill is completely related to this bill.

Chair: The chair has asked Representative Pierick to proceed with his remarks.

Rep. Pierick: Thank you. So, in receiving public input, I think it’s a good idea for us to vote in alignment with that, but we should ask ourselves, is the public input coming from social media polls and website polls, and that would probably attract a certain demographic. Is it coming from surveys sent out to our voters, which is going to track another demographic. People that fill out paper forms probably are on the older side, and people who are filling out social media posts are probably on the younger side. So, these are things we should consider when we vote yes or no? I’ll be voting no, thank you.

Rep. Adrian Tam

Rep. Adrian Tam (D): In support, with permission to insert written comments and another brief comment. I also surveyed my district. I asked them do they support marijuana legalization. And 55% of them came back and said, yes, 38% said no, 7% said unsure, and of the 7% that said unsure, they all favored a well-regulated market. So, we can pretty much count them as support. That’s all I have to say. Thank you.

Rep. Darius Kila (D): Mr. Speaker, as a registered Democrat, the Democratic platform is a yes, but today I am a no. In a rare move of bipartisan opposition, you have both parties today sharing their opposition. As Democrats, we often push measures to advance and move the party forward in our communities, but as a representative in Nānākuli, Mā‘ili, when I have a district of unhoused people experiencing substance abuse, we are not seeing that support. The ACLU recently has taken a public stance in support, Mr. Speaker, but where was the ACLU when I needed help dealing with folks who experienced substance abuse that occupy public spaces, beaches, and prevent the public from accessing public spaces.

Every single person that you can talk to on the unhoused coastline of the west side will mention at any one point in time that [cannabis] was their first drug. Every county police department has testified in opposition. I refuse to continue the narrative of this body that we are continuing to alienate law enforcement every single time that they have voiced their concern. If we’re going to consider marijuana, I also would like this body to consider gambling. A speaker mentioned the 1920s and the war on drugs. Mr. Speaker, let me remind the body that in the 1920s we were a territory, not a state.

Rep. Darius Kila

The inclusion and introduction of drugs has hurt native Hawaiian communities to the point that they have moved from Hawaii to the coastlines as a way to protect the family, so my no vote is to protect families. Mr. Speaker, we held a town hall in the interim. I had a young daughter come to the come to the microphone, 11 years old. When we asked a question about the legalization of marijuana to the community, she shared that drugs have affected her family directly, and that her dad was first smoking marijuana. Her dad then transitioned to every other drug afterwards, sold their car to the effects of gambling, and has now put them in homelessness. Data may say other things, but when you also talk to people, their perspectives are different from data. Anyone in recovery or substance abuse will mention more times than not that yes, marijuana was their first drug, and may also serve as a gateway drug.

Mr. Speaker, what happens when our schools become inundated with marijuana? We will stand to be blamed. Many proponents of this measure talk about the importance of its effects on native Hawaiians. Where are the proponents of this issue of native Hawaiians with displacement, access to housing, and addressing the cost of living? These are all relevant matters, and they choose not to show up. Native Hawaiians are often the scapegoat to pass or not passing measure, and I refuse to allow the narrative to continue. When folks are experiencing substance abuse, they are not in the backyard of your communities. They come to the west side of and they occupy public spaces and beaches that then do not allow people to access the places that they pay taxes to. If folks want to be supportive of Native Hawaiians, as they claim, then show up 24/7, and not when it financially benefits you.

Rep. David Alcos

Rep. David Alcos (R): Mr. Speaker, I oppose. Some of us are talking about testing the marijuana and the experience that you have. Just imagine if all of us smoke five joints, 10 joints, right now. We’re making rules in the state, and we’re getting stoned in here, but it’s legal. I can go outside doing my lunch break and smoke marijuana, come inside here and be the voice for the people, who we represent as ourselves, our people, our family.

Some people take steroids. It makes them stronger, faster, and bigger, like a good drug. But it’s illegal. Cocaine, other drugs to make them stay up, make them work harder, but we say no to those drugs because those drugs are illegal. It alternates our bodies, alternates our mind, and yet marijuana is a drug that even some that says that there’s so many pounds of marijuana, illegal drugs is coming out on marijuana coming on and coming in Hawaii, or monies that being transferred. So now we go after all these other illegal drugs that have steroids, cocaine or whatever, based on pounds and money.

We don’t do that because we know that’s wrong. We know what this illegal drugs are to life experience. We didn’t see much enhancement that people grow better for our community, but you can see the effects on community and life experience. I don’t need somebody to study it. I just had to live it. We all live it. We all know our families that have been struggling, and yet we sit here today making like we should legalize it because maybe we need more tax money, or maybe we should support some other cause for it. But it is legal medically. People already can get it as it is. We don’t have to hurt more, ruining lives. So, for our colleagues here, if you have reservations or oppose, this is a chance that we can really make a difference. And I know that we are here and trying to do it, and I don’t see anybody coming inside here stoned, because I believe that we have the right intentions. So, let’s continue with the right intentions and serve our people. Thank you, Mr. Speaker.

Rep Sonny Ganaden

Rep Sonny Ganaden (D): I rise in support. May I have the words of theCchair of Judiciary and Hawaiian Affairs entered in the journal with my own sort of brief comment. One of the good things about being a state that is late in national or international conversations is that we can take a lot of lessons and figure out what is appropriate for Hawaii or not, I think that this measure takes some reasonable regulations and long overdue regulations for cannabis, and for those reasons. I’m in support.

Rep Ward (second comment): First a comment. I’m really proud of what we’re doing. We’re actually debating this is the marketplace of ideas. And I think this is really what the people put us here for regardless of what their position is, on this particular vote. The first thing I want to mention is that for some reason, some people think that the black market is going to go away because of what we’ve got here. We have to remember that the Ag said that this is not something that she supports because of public safety, and some people have said, ‘Well, because of public safety. That’s just made-up stuff.’ But she’s not doing Fauci science, she’s doing real public safety, listening to all the police commissioners and all the mayors.

Rep. Ganaden: Point of order. Fauci science? I’m not sure what he’s referring to.

Rep. Ward: That is a creative use of terms about what is true and what is not true. Don’t interrupt when someone is speaking. I have a vocabulary; you have a vocabulary. Everybody has a vocabulary.

HOUSE FEED CUTS SUDDENLY TO RECESS. WHEN IT RETURNS…

Rep Ward: I was speaking about the Attorney General saying that because of public safety, because of those professionals who are on the line with people who are under the influence, they know that this stuff is real. She’s doing it for more than just covering her backside on this thing. Of course, because of what we want she made a structure and a safety, but to think that the black market is going to go away is really naïve. I think to believe that is being very unscientific. The second thing, I think there’s one word that we’ve not mentioned in this whole debate, and it’s the h-word: homeless. We have a mental crisis among the homeless, and the most accessible thing to them is marijuana, even though it’s the cheap wine and the booze that they’re also doing.

Mr. Speaker, we’re paying millions upon millions of dollars, and we have tried through the governor ambitiously to cut down homelessness in the next three years, which I applaud, and we should do it. But if we legalize this, this is going to work against our colleague to eliminate homelessness, because it’s going to increase homelessness because of the way that marijuana affects the economy, the people, and particularly the youth, who I think we should really be protecting. So, the normalization of homelessness is going to be catalyzed by the increase in the use of marijuana. Thank you.

Rep. Jeanne Kapela

Rep. Jeanne Kapela (D):  I would just like to take a moment to thank the Chair of Judiciary and Hawaiian Affairs for his commitment to this work and being able to put forward a really incredible bill. And I’m really proud to be a part of the body that was able to hear this. I’d also like to thank his committee and the committees that have had to hear this bill as well. I know that they have spent long hours listening to them and listening to members of the community. I would also like to have the words of the chair of Hawaiian Affairs put into the journal as if they were my own. You know, I think this is an issue that is going to keep coming back again, and again and again, and I think my constituents would be upset if I didn’t stand up in strong support. I have been a supporter since I’ve gotten elected, and I will continue to support this until we get this work done. I also want to say that as someone who has watched families be ripped apart by the war on drugs, I think it’s high time that we legalize recreational cannabis use and stop ripping families apart for smoking a plant.

Rep. Gates: I stand in support. Just wanted to mention that alcohol is the number one gateway drug to other illicit hardcore drugs. As noted by HPD, in their testimony, and CPC, we also know that prohibition hasn’t been working on this issue relating to cannabis. And if we’re not going to do anything to change what’s being done now. And then how can we expect anything to change? And the last thing is, there is a adequate amount of support for those in our houseless population that want support. We have gone out countless times to those on the beach on the west side, and the people we can help, we help, and the people that did not want to take the help there, that’s a rock and a hard place to put the legislature and folks that are in that situation. But I do think that there is a lot being done to address those situations in our community, and I think that this can help address those issues as well.

Rep. Matayoshi: Still in opposition. I just want to encourage the body to vote on the bill before us. While I respect and actually agree with the Chair of Health on a lot of the protections that this bill puts in, I disagree that we should vote with reservations or vote in favor of this bill just to see it move along. If those changes are made, I might reconsider my vote. I just don’t know. But we can’t be voting on what the bill might be. We can’t be voting on a bill that has some good parts but also has incredible harm to our society in the form of legalizing recreational marijuana. I would encourage all members to vote on the bill before us. This might be the last time that we get to see this bill, and I encourage you all to just take a look and make a vote on the bill before us at this time. Thank you.

Rep. Alcos: Still in opposition. We’re just four votes away from killing this. Guys, some of us didn’t vote on it and some of you here get to share your voice on it. This is a chance that you can have your voice really be heard in your community. And this is a passionate bill for all of us, so please let your voices be heard. Thank you.

FOLLOWING A SERIES OF SHORT RECESSES, THE CHAIR ANNOUNCED THAT SB3335 HAD PASSED BY A VOTE OF 25-23.

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(Originally posted by Tom Hymes)

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