Hawaii’s medical marijuana industry calls for less regulation amid slew of challenges

A new report from Hawaii’s medical marijuana industry calls for less regulation as concerns grow over the sustainability of dispensaries in the state.
Published: Feb. 2, 2022 at 5:21 AM HST|Updated: Feb. 2, 2022 at 7:53 AM HST
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HONOLULU (HawaiiNewsNow) - A new report from Hawaii’s medical marijuana industry calls for less regulation as concerns grow over the sustainability of dispensaries in the state.

The Hawaii Cannabis Industry Association paid for the report conducted by well-known economist Paul Brewbaker.

It notes that 31% of cannabis patients are getting marijuana from licensed dispensaries, while 69% are getting their marijuana some other way. The report says this points to a failure to deter the sale of illegal marijuana.

Another concern: The report cites that sales have plummeted in recent years — from growth of 110% in 2019 to 68% in 2020 to just 12% last year.

It’s no surprise that those figures are concerning to investors and reduces state tax revenues.

The industry blames regulation, citing tax burdens, limits on the number of retail and production locations and what they call a “cumbersome” medical ID verification process.

HICIA proposed solutions to addressing these problems, including allowing medical marijuana licensees to build more retail outlets, to increase production and finally to allow sales between licensees.

Those wholesale transactions between licensees could cut costs and increase supply levels, according to the report.

The industry says that it generated $99 million in economic output last year, along with $4.7 million in state tax revenue, and it has created about 780 jobs — direct and indirect.

The economist who authored the study gives a dire warning about the future of the industry.

“Hawaii’s medical cannabis industry has exhausted most of its infant industry momentum and now is at risk of imploding under the weight of tax burdens having hit the wall of regulatory barriers to growth which pre-empt further exploitation of economies of scale and scope,” Brewbaker said.

Again, this study was funded by the industry.

If you’d like to read the report in full, click here.

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