Hawaii Bill Would Authorize Commercial Hemp Production Despite Federal Prohibition

HONOLULU, Hawaii (Dec. 13, 2017) – The Hawaii Senate will take up a bill in the 2018 legislative session that would expand the state’s industrial hemp program and authorize commercial production of the crop. Passage of the bill would spur development of a hemp industry in the Aloha State and set the foundation to end federal prohibition in effect.

A coalition of three senators introduced Senate Bill 1052 (SB1052) last January and it will carry over into the 2018 session. The legislation would make the state’s existing hemp pilot program permanent and expand it to include hemp production for commercial purposes. It would also permanently exclude hemp from the states criminal prohibition against marijuana.

Hawaii created a federally compliant industrial hemp pilot program for research purposes only in 2016. According to legislative findings, “the University of Hawaii’s research shows significant potential for a successful agricultural hemp industry in Hawaii.” Passage of SB1052 would set the stage for the development of a thriving hemp industry in the state by allowing hemp license holders to produce the crop for commercial purposes.

FEDERAL FARM BILL

Early in 2014, President Barack Obama signed a new farm bill into law, which included a provision allowing a handful of states to begin limited research programs growing hemp. The “hemp amendment”

…allows State Agriculture Departments, colleges and universities to grow hemp, defined as the non-drug oil-seed and fiber varieties of Cannabis, for academic or agricultural research purposes, but it applies only to states where industrial hemp farming is already legal under state law.

In short, the current federal law authorizes farming of hemp – by research institutions, or within state pilot programs – for research only. Farming for commercial purposes by individuals and businesses remains prohibited.

Passage of SB1052 would open the door for Hawaii farmers to ignore federal prohibition and grow hemp commercially anyway. While prospective hemp growers would still have to take federal law into consideration, by eliminating the state requirement for federal permission the law potentially clears away a major obstacle to widespread commercial hemp farming within Hawaii’s borders.

Several other states with federally-compliant hemp programs, such as Kentucky, North Dakota, Minnesota and New York, have grown significant acreage under federally-approved research programs. This takes a first step, but with federal shackles in place, these states are not allowed to develop any kind of commercial market.

Recognizing its limited research program was hindering the development of the industry, West Virginia dumped its federally compliant hemp program during the 2017 legislative session and will now issue federally non-compliant commercial licenses to growers. West Virginia Public Broadcasting confirmed limits imposed by the old program due to its conformity with federal law were holding back the development of a viable hemp industry and everyday farmers cannot benefit.

“But because of the strict requirements under the 2014 bill, growers are not able to sell their plants and cannot transport them across state lines to be turned into those usable products. That’s limited the ability to create a real hemp industry in the state.”

OTHER STATES

Other states, including Colorado, Oregon, Maine, California and Vermont have simply ignored federal prohibition and legalized industrial hemp production within their state borders.

Colorado was the first state with widespread commercial hemp production. Farmers began growing hemp in southeast Colorado back in 2013 and the industry is beginning to mature. The amount of acreage used to grow industrial hemp in the state doubled in 2016 to nearly 5,000 acres, and nearly doubled again in 2017.

The Oregon legislature initially legalized industrial hemp production in 2009. While it was technically legal to grow hemp in the state, farmers didn’t take advantage of the opportunity for nearly five years. When the Oregon Department of Agriculture finally put a licensing and regulatory program in place early in 2014, farmers began growing hemp. The initial regulatory structure placed significant limits on hemp farming and effectively locked small growers out of the market. In 2016, Gov. Kate Brown signed House Bill 4060 into law. It relaxed state laws regulating hemp already on the books and made the crop more like other agricultural products. Within months, the Oregon Department of Agriculture had already promulgated new rules under the reformed law. According to Oregon’s Cannabis Connection, the rules set the stage to creates a “massive” medical hemp market. The state produced 3,469 acres of hemp in 2017.

Both Colorado and Oregon demonstrate how loosening rules at the state level encourage the market and allow hemp a legitimate commercial hemp industry to develop.

HUGE MARKET FOR HEMP

According to a 2005 Congressional Research Service report, the U.S. is the only developed nation that hasn’t developed an industrial hemp crop for economic purposes.

Experts suggest that the U.S. market for hemp is around $600 million per year. They count as many as 25,000 uses for industrial hemp, including food, cosmetics, plastics and bio-fuel. The U.S. is currently the world’s #1 importer of hemp fiber for various products, with China and Canada acting as the top two exporters in the world.

During World War II, the United States military relied heavily on hemp products, which resulted in the famous campaign and government-produced film, “Hemp for Victory!

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