Hawaii’s New Hemp Retail Regulations Spark Business Concerns
Background of the Enforcement
Hemp retailers across Hawaii said new Department of Health enforcement is disrupting their businesses, with some claiming dozens of stores have already stopped selling hemp products. State officials said the regulations are intended to ensure products meet legal THC limits and protect public health.
HONOLULU (Island News) — It’s been two weeks since the Department of Health (DOH) began enforcement of Hawaii’s hemp retailers. Some critics of the new rules said it’s driving them out of business.
“Millions in damage has already been done,” said hemp retailer Lance Alyas.
This is one of dozens of hemp retailers here in the islands now at risk of being shut down under new rules being enforced by the Department of Health.
“Twenty to 30 businesses closed down and a majority of them have stopped selling these products completely,” he said.
The owner of Oahu Dispensary and Provisions said hemp retailers are living in fear. The DOH began enforcing new laws in July, requiring businesses to register with DOH in order to sell hemp products and ensure operators are complying with limits on THC — the psychoactive compound in pakalolo.
“That’s a crackdown. That’s enforcement in and of itself,” Alyas said. “It’s intimidating when the Department of Health comes to your business and says you can’t sell this, you can’t sell that, or else we’ll close you down or we’ll criminally enforce on you.”
For some businesses like Alyas’, that’s about 90% of inventory.
He’s one of almost 60 licensed retailers selling manufactured hemp products, but is suing the state to reverse the new rules.
“We face revenue loss. We’ve had employees leave because they don’t want the uncertainty,” he said. “When we closed down we had countless people — cancer patients included — crying to us because they don’t know where to get their medicine.”
Medical marijuana dispensary Aloha Green Apothecary said previously the state had no real regulations and relied on the federal rules for selling hemp products.
“What legislators didn’t know was that hemp cannabinoids could be manipulated to create higher THC products and these higher THC products can be euphoric and cause intoxication,” said Ty Cheng, president of Aloha Green Apothecary. “The issue that many hemp retailers face right now is that they’re uncomfortable with the level of regulation that they’re being subjected to.”
The DOH has visited almost 30 registered businesses and said so far compliance has been good. But there are still other businesses likely not following the rules.
“The THC limits they’ve been in place for a long time okay and some of the products like the vapes and the smokeables you were never allowed to sell in Hawaii,” said Andrew Goff, DOH Office of Medical Cannabis Control and Regulation program manager. “Our goal is not to crack down on people selling hemp. Our goal is to make sure people are compliant. So we’re starting with education and with warnings, and to make sure that everyone knows because it is a confusing area.”
DOH is urging consumers and businesses to read the labels on products that you are buying or selling.
Industry Impact and Stakeholder Perspectives
According to the Hawaii Department of Health, approximately 58 retailers hold active licenses for hemp‑derived products statewide. The recent enforcement wave has led to estimates of 20‑30 establishments ceasing hemp sales, representing roughly one‑third of the licensed market. Retailers such as Lance Alyas of Oahu Dispensary and Provisions report that up to 90 % of their inventory—primarily vape cartridges and smokable flower—falls under the newly scrutinized categories.
Medical cannabis advocates note that the lack of prior state‑level oversight allowed some products to drift into higher‑THC formulations, which can produce psychoactive effects similar to marijuana. Ty Cheng of Aloha Green Apothecary emphasized that the intention behind the DOH’s actions is consumer safety rather than punitive measures, a stance echoed by program manager Andrew Goff, who stressed an educational approach before any punitive enforcement.
Despite the DOH’s reported compliance success, many small‑business owners describe a climate of fear and uncertainty. Employee turnover, revenue declines, and concerns from patients who rely on hemp‑derived cannabinoids for symptom relief have been cited as direct consequences of the regulatory shift.
Looking Forward
Stakeholders on both sides call for clearer guidelines, accessible testing resources, and a balanced regulatory framework that protects public health without undermining legitimate hemp commerce. Ongoing dialogue between the Department of Health, industry associations, and patient advocacy groups may shape the next iteration of Hawaii’s hemp policies.
For the full original report, see the source article: Here
