RELATING TO INDUSTRIAL HEMP.

SB2178

THE SENATE

S.B. NO.

2178

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
to INDUSTRIAL hemp
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

����
SECTION 1.
�
The legislature finds that hemp cultivated
for industrial purposes, such as fiber, hurd, and grain, serves a fundamentally
different role than hemp that is cultivated for cannabinoid extraction.
�
Industrial or commercial hemp production has
the potential to bring significant revenues to the State; however, the industry
currently lacks a distinct regulatory and development pathway.
�

����
Accordingly,
the purpose of this Act is to establish a clear and separate regulatory
framework for industrial hemp that is distinct from hemp grown for cannabinoids
by:

����
(1)
�
Establishing an industrial hemp program
that includes comprehensive licensing, education, and support for non-cannabinoid
industrial hemp cultivation and use;

����
(2)
�
Establishing the
industrial hemp program advisory board

to
develop a strategic plan to
establish and expand the processing infrastructure and commercialization of non-cannabinoid
industrial hemp
;

����
(3)
�
Supporting research and development
focused on local adaptation, sustainability, and economic development goals;

����
(4)
�
Promoting partnerships with Native
Hawaiian practitioners, cooperatives, and aina-based programs; and

����
(5)
�
Adopting state building codes for
hemp-based materials, including hempcrete.

����
SECTION
2.
�
This Act shall be cited as the "Hawaii
Industrial Hemp Infrastructure and Innovation Act".

PART II

����
SECTION
3.
�
Chapter 141, Hawaii Revised Statutes,
is amended by adding a new part to be appropriately designated and to read as
follows:

"
Part
.
�
Industrial
hemp Program

����
�141-A
�

Definitions.
�
As used in this part:

����
"Advisory board" means the industrial hemp program advisory
board.

����
"Chairperson" means the chairperson of the board of agriculture
and biosecurity.

����
"Department"
means the department of agriculture and biosecurity.

����
"Industrial
hemp" means the plant Cannabis sativa L. and any part of that plant,
except cannabidiol, with a delta-9 tetrahydrocannabinol concentration of not
more than 0.3 per cent on a dry weight basis grown for its fiber, seed, or
oil.
�
"Industrial hemp" includes
non-cannabidiol parts including seeds and all derivatives, extracts, isomers,
acids, salts, and salts of isomers, whether growing or not.
�
"Industrial hemp" excludes hemp
grown for the extraction of cannabidiol.

����
"Program"
means the industrial hemp program.

����
�141-B
�

Industrial hemp program; established.
�
There is established an
industrial hemp program within the department for administrative purposes to
promote the non-cannabinoid hemp industry.
�

The program shall:

����
(1)
�
Provide technical assistance to
industrial hemp farmers;

����
(2)
�
Develop Hawaii-adapted industrial hemp
seed varieties;

����
(3)
�
Facilitate market access for industrial
hemp products;

����
(4)
�
Conduct educational outreach and
workforce training in industrial hemp applications, with a focus on
construction and regenerative agriculture; and

����
(5)
�
Collaborate with the university of
Hawaii, department of land and natural resources, and department of education
on research, education, and integration of the program into land restoration
efforts and school agriculture programs.
�

����
�141-C
�
Licensing.
�
(a)
�
Beginning
July 1, 2027, a person who intends to grow non-cannabinoid industrial hemp in
the State for fiber, grain, or building materials shall apply to the department
for a license on a form prescribed by the department and pay an application
fee.

����
(b)
�
Each applicant for a license shall be either
an individual applicant or an applying entity.
�

If the applicant is:

����
(1)
�
An individual, the application shall
include supporting documentation to establish that the individual:

���������
(A)
�
Is not less than twenty-one years of
age; and

���������
(B)
�
Has no drug felony convictions in the
ten years immediately preceding the date of submission of the application; or

����
(2)
�
An entity, the application shall
include supporting documentation to establish that the entity:

���������
(A)
�
Has been organized under the laws of
the State of Hawaii;

���������
(B)
�
Has a Hawaii tax identification number;

���������
(C)
�
Has a department of commerce and
consumer affairs business registration division number and suffix;

���������
(D)
�
Has a federal employer identification
number; and

���������
(E)
�
Is composed of principals or members,
each of whom have had no drug felony convictions in the ten years immediately
preceding the date of submission of the application.

����
(c)
�
Licensees shall comply with all county zoning
ordinances, rules, or regulations.

����
(d)
�
If the chairperson determines that the
requirements for a license pursuant to this part, and any other requirements
established by rule, are satisfied, the chairperson shall issue a license to
the applicant upon payment of the fee established in this section.

����
(e)
�
Each license shall be valid for two
years from the date of issuance, after which the licensee shall be required to
renew the license and pay a renewal fee.

����
(f)
�
The department may prescribe annual
sampling, inspection, and reporting requirements for licensees, including a
procedure for conducting annual inspections of a random sample of industrial hemp
producers to verify that industrial hemp is not being produced in violation of
this part; provided that the procedure shall ensure that an industrial hemp
producer is subject to not more than one inspection each calendar year.

����
(g)
�
Any license issued under the
industrial hemp program shall have continued validity under the original terms
and conditions of that license until it expires.
�
Upon expiration, the licensee may renew that
license under new terms and conditions that are compliant with this part, by
paying a renewal fee and applying for license renewal pursuant to a process
established by the chairperson.

����
(h)
�
Licenses may be transferred upon approval by
the board of agriculture and biosecurity.

����
�141-D
�
Approved non-cannabinoid industrial hemp.
�
(a)
�

Only non-cannabinoid industrial hemp on the list of approved cultivars
grown for fiber, grain, or building materials shall be grown.
�
Notwithstanding chapter 91, the chairperson
or the board of agriculture and biosecurity may add or remove any cultivar from
the list.

����
(b)
�
The list of approved cultivars shall include
the following:

����
(1)
�
Industrial hemp cultivars that have
been certified by the Organisation for Economic Co-operation and Development;

����
(2)
�
Hawaii varieties of industrial hemp
cultivars that have been certified by the board
of agriculture
and biosecurity
; and

����
(3)
�
Hemp genetics that are shown to:

���������
(A)
�
Meet federal definitions of hemp;

���������
(B)
�
Originate from any state with a
federally approved industrial hemp program; and

���������
(C)
�
Utilize testing and sampling protocols
similar to those used in Hawaii's program or utilize a nationally standardized
sampling and testing protocol.

����
�141-E
�

Inspections; fees.
�
(a)
�
A licensee shall be subject to the annual
inspection and sampling of the licensee's industrial hemp plants, plant
material, seeds, growing area, equipment, and facilities incident to the
cultivation of industrial hemp.

����
(b)
�
Any authorized member of the department, or
any agent or third party authorized by the department, with prior notice to the
applicable licensee, may enter between sunrise and sunset upon any property
utilized for the cultivation of industrial hemp pursuant to this part to
conduct the annual inspection and sampling pursuant to subsection (a).

����
(c)
�
The department may set reasonable inspection
and sampling fees.

����
(d)
�
The department may employ temporary
inspectors to assist in certification, audit, and inspection services under
this part.

����
�141-F
�

Transportation.
�
A licensee
may transport, to another site for processing and in a department-approved
manner, the resin, flowering tops, and leaves of the licensee's crop that
passed department-ordered compliance testing.

����
�141-G
�

Violations.
�
(a)
�
In addition to any other violations of this
part, the following acts and omissions by any licensee or authorized
representative thereof constitute violations:

����
(1)
�
Refusal or failure by a licensee or
authorized representative to fully cooperate and assist the department with the
inspection or sampling process;

����
(2)
�
Failure to provide any information
reasonably required or requested by the department for purposes pursuant to
this part;

����
(3)
�
Providing materially false information
pertaining to the licensee's cultivation of industrial hemp to the department
by any means, including information provided in any application form, report,
record, or inspection required or maintained pursuant to this part;

����
(4)
�
Failure to pay reasonable fees assessed
by the department for inspection or laboratory analysis costs; or

����
(5)
�
A material violation of any other state
or federal law or regulation regarding industrial hemp.

����
(b)
�
For any violation of this part, the
department may impose civil penalties up to $500 and disciplinary sanctions,
including denial or revocation of a license; provided that:

����
(1)
�
If the department determines that a
licensee has negligently violated this part, the licensee shall comply with a
corrective action plan established by the department to correct the violation,
which may include disposal of any industrial hemp crop, plant, plant material,
or seed, whether growing or not, and products derived from those plants;

����
(2)
�
An individual licensee that negligently
violates this part three times in a five-year period shall be ineligible for
the industrial hemp program, as either an individual or as a principal or
member of an entity, for a period of five years beginning on the date of the
third violation;

����
(3)
�
Each principal or member of an entity
licensee that negligently violates this part three times in a five‑year
period shall be ineligible for the industrial hemp program, as either an
individual or as a principal or member of an entity, for a period of five years
beginning on the date of the third violation; and

����
(4)
�
Any applicant that materially falsifies
any information contained in an application shall be ineligible to participate
in the industrial hemp program.

����
�141-H
�

Rules.
�
(a)
�
The department shall adopt rules pursuant to
chapter 91 for the purposes of this part, which, at a minimum, shall include:

����
(1)
�
Annual inspection of a random sample of
producers of industrial hemp during growth or after harvest to determine
tetrahydrocannabinol levels; provided that an analytical testing of
tetrahydrocannabinol levels greater than 0.3 per cent shall not result in
revocation of a license so long as the crop from which the sample is taken is
disposed of in a manner provided by rule;

����
(2)
�
Licensure requirements;

����
(3)
�
Reporting requirements; provided that
pre-planting reporting shall not be required;

����
(4)
�
A process to create standards for
selecting licensees that ensures equity, access, and inclusion;

����
(5)
�
Assessment and collection of fees for
applications, licenses, license renewals, inspections, and the sampling and
testing of industrial hemp;

����
(6)
�
A procedure for the disposal of
industrial hemp crop, plant, plant material, or seed, whether growing or not,
found to be in violation of this part, and products derived from those plants;

����
(7)
�
Civil penalties for any violation of
this part; and

����
(8)
�
Any other rules and procedures
necessary to carry out this part.

����
(b)
�
By October 1, 2026, the department shall
adopt interim rules to effectuate the purposes of this part; provided that the
interim rules shall remain in effect until July 1, 2027, or until rules are
adopted pursuant to subsection (a), whichever occurs sooner.

����
�141-I
�

Authority to modify operations.
�

Notwithstanding any other provision of this part to the contrary, the
board of agriculture and biosecurity may authorize the chairperson to modify
the industrial hemp program to effectuate any other federal or state industrial
hemp law or regulations; provided that any license that has been issued as of
that time shall remain in effect until its expiration.

����
�141-J
�

Industrial hemp program advisory board; established.
�
(a)
�
There is established an industrial hemp
program advisory board to be appointed by the governor under section
26-34.
�
The
advisory board
shall consist of seven members, as follows:

����
(1)
�
Three farmers, including at least one
farmer who shall have demonstrated expertise in Native Hawaiian traditional and
customary practices;

����
(2)
�
One materials scientist;

����
(3)
�
One environmental economist; and

����
(4)
�
Two representatives from the university
of Hawaii college of tropical agriculture and human resiliency.

The members of the board shall serve without
compensation but shall be reimbursed for expenses, including travel expenses,
actually incurred in the performance of their duties.

����
(b)
�
The
advisory board shall develop a strategic plan to establish and expand the
processing infrastructure and commercialization of industrial hemp, including
fiber, hurd, grain, and non-cannabinoid components.
�
Priority shall be given to scalable and
regenerative technologies that align with the State's climate and economic
goals.
�
The strategic plan shall include
the following areas of support:

����
(1)
�
Development
of processing infrastructure;

����
(2)
�
Support
for value-added industrial hemp products:

����
(3)
�
Standards,
safety, and market readiness: and

����
(4)
�
Inclusive
participation and community benefit."

����
SECTION
4
.
�
Section 141-14, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�141-14
�
Industrial hemp special fund; established.
�
(a)
�

There is created in the state treasury a special fund to be designated
as the industrial hemp special fund to be administered by the department of
agriculture and biosecurity.
�
Moneys
deposited in this special fund shall be used to fulfill the purposes of [
this
]
part

and shall include:

����
(1)
�
Any moneys appropriated by the
legislature to the special fund;

����
(2)
�
Any fees collected by the department of
agriculture and biosecurity in relation to the industrial hemp [
pilot
]
program; and

����
(3)
�
The interest or return on investments
earned from moneys in the special fund.

����
(b)
�
The department of agriculture and biosecurity
may use the moneys in the special fund to carry out the purposes of [
this
part,
]
part ,
including hiring
employees, specialists, and consultants necessary to complete projects related
to the purposes of this part."

����
SECTION

5
.
�
There
is appropriated out of the
general revenues of the State of Hawaii
the
sum of $800,000 or so much thereof as may be necessary for fiscal year
2026-2027 to be deposited into the
industrial hemp special fund
.

����
SECTION

6
.
�
There
is appropriated out of the
industrial hemp special fund

the sum of $800,000 or so much thereof as may be necessary for fiscal year
2026-2027 for the purposes of this part.

����
The
sum appropriated shall be expended by the department of agriculture and
biosecurity for the purposes of this Act.

PART III

����
SECTION

7
.
�
Section 107-25,
Hawaii Revised Statutes, is amended to read as follows:

����
"
�107-25
�

Hawaii state building codes; requirements.
�
There is established the Hawaii state
building codes applicable to all construction in the State of Hawaii.
�
The Hawaii state building codes shall be
based upon:

����
(1)
�
The state fire code as adopted by the
state fire council;

����
(2)
�
The Uniform Plumbing Code, as
copyrighted and published by the International Association of Plumbing and
Mechanical Officials, including its appendices;

����
(3)
�
The International Building Code, the
International Residential Code, and the International Energy Conservation Code,
as published by the International Code Council;

����
(4)
�
The National Electrical Code, as
published by the National Fire Protection Association;

����
(5)
�
Hawaii design standards implementing
the criteria pursuant to Act 5, Special Session Laws of Hawaii, 2005, as
applicable to:

���������
(A)
�
Emergency shelters built to comply with
hurricane resistant criteria, including enhanced hurricane protection areas
capable of withstanding a five hundred-year hurricane event as well as other
storms and natural hazards; and

���������
(B)
�
Essential government facilities
requiring continuity of operations; [
and
]

����
(6)
�
Code provisions based on nationally
published codes or standards that include but are not limited to residential
and hurricane resistant standards related to loss mitigation standards in
accordance with section 431P-12, elevator, mechanical, flood and tsunami,
existing buildings, and onsite sewage disposal[
.
]
; and

����
(7)
�
The 2024 International Residential
Code Appendix BL for hemp-line (hempcrete) construction and code provisions for
load-bearing criteria for hemp-based insulation.
"

PART IV

����
SECTION 8.
�
By April 1, 2027, the university of Hawaii
college of tropical agriculture and human resilience, in partnership with the
department of agriculture and biosecurity, shall lead a coordinated research
agenda focused exclusively on non-cannabinoid industrial hemp
applications.
�
Research shall support
adaptation, sustainability, and economic development goals.
�
Priority areas shall include but not be
limited to:

����
(1)
�
Carbon sequestration and soil health,
including the ability of hemp to restore degraded or fallow agricultural lands;

����
(2)
�
Seed development and agronomic
performance, including conducting trials to optimize fiber, hurd, and grain
yield under varying conditions;

����
(3)
�
Industrial material research that
analyzes the structural performance, moisture regulation, and insulation
capacity of hempcrete and other hemp-derived construction materials; and

����
(4)
�
Circular economy and lifecycle
assessment by evaluating industrial hemp's role in closed-loop production
systems, local supply chains, and waste to resource models.

����
SECTION
9.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of $400,000 or so much thereof
as may be necessary for fiscal year 2026-2027 for the purposes of this part.

����
The
sum appropriated shall be expended by the university of Hawaii for the purposes
of this Act.

PART V

����
SECTION 10.
�
(a)
�

The department of agriculture and biosecurity shall invite Native
Hawaiian traditional and customary practitioners and community members to
actively participate in stewardship initiatives relating to industrial hemp
innovation.
�
Areas of collaboration may
include:

����
(1)
�
Supporting aina-based learning and land
restoration projects led by Native Hawaiian communities;

����
(2)
�
Integrating cultural stewardship
practices, including traditional ecological knowledge, into cultivation,
processing, and education frameworks; and

����
(3)
�
Engaging in participatory planning and
decision-making processes to ensure culturally aligned program development.

����
(b)
�
The department of agriculture and biosecurity
may adopt rules to provide exemptions for Native Hawaiian agricultural
cooperatives or organizations from licensing fees under the industrial hemp
program established under section 141‑B, Hawaii Revised Statutes, in
recognition of their cultural, environmental, and community contributions.

����
SECTION
11.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of $800,000 or so much thereof
as may be necessary for fiscal year 2026-2027 for farmer incentives pursuant to
this part.

����
The
sum appropriated shall be expended by the department of agriculture and
biosecurity for the purposes of this Act.

PART VI

����
SECTION 12.
�
In codifying
the new sections added by section 3 and referenced in section 10 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 13.
�
This Act does
not affect rights and duties that matured, penalties that were incurred, and
proceedings that were begun before its effective date.

����
SECTION 14.
�

Statutory material to be repealed is bracketed and stricken.
�
New statutory material is underscored.

����
SECTION 15.
�
This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

DAB; UH
CTAHR; Industrial Hemp Program; Industrial Hemp Advisory Board; Native Hawaiian
Practices; Non-Cannabinoid Industrial Hemp Infrastructure and Innovation; State
Building Code; Hempcrete; Appropriations

Description:

Establishes an Industrial Hemp Program in the Department
of Agriculture and Biosecurity that includes comprehensive licensing,
education, and support for non-cannabinoid industrial hemp cultivation and
use.
�
Establishes the
Industrial Hemp Program Advisory Board

to
develop a strategic plan to
establish and expand the processing infrastructure and commercialization of
industrial hemp
.
�
Requires the
University of Hawaii College of Tropical Agriculture and Human Resilience to
support research and development focused on local adaptation, sustainability,
and economic development goals.
�
Requires
DAB to promote partnerships with Native Hawaiian practitioners, cooperatives,
and aina-based programs.
�
Adopts state
building codes for hemp‑based materials, including hempcrete.
�
Appropriates funds.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.