STAND. COM. REP. NO. 2908

Honolulu, Hawaii

RE: S.B. No. 2178

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 2178, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INDUSTRIAL HEMP,"

beg leave to report as follows:

The purpose and intent of this measure is to facilitate the production of industrial hemp that is distinct from hemp grown for cannabinoids.

Specifically, the measure:

(1) Establishes within the Department of Agriculture and Biosecurity for administrative purposes an Industrial Hemp Program to promote the non-cannabinoid hemp industry;

(2) Requires, beginning July 1, 2027, certain growers of non-cannabinoid industrial hemp to apply to the United States Department of Agriculture for licensure;

(3) Establishes an Industrial Hemp Program Advisory Board to develop a strategic plan to establish and expand the processing infrastructure and commercialization of industrial hemp;

(4) Amends and appropriates moneys into and out of the industrial hemp special fund to provide funding for the new program described in paragraph (1);

(5) Requires the Hawaii State Building Code to incorporate certain model code provisions on hemp-related construction and construction materials;

(6) Requires and appropriates moneys for the University of Hawaii College of Tropical Agriculture and Human Resilience, in partnership with the Department of Agriculture and Biosecurity, to lead a coordinated research agenda focused exclusively on non-cannabinoid industrial hemp applications;

(7) Requires the Department of Agriculture and Biosecurity to invite Native Hawaiian traditional and customary practitioners and community members to actively participate in stewardship initiatives relating to industrial hemp innovation; and

(8) Appropriates moneys for certain farmer incentives.

Your Committees received written comments in support of this measure from the Hawaii Farm Bureau, Climate Protectors Hawaii, Hawaii Farmers Union, and one individual.

Your Committees received written comments on this measure from the University of Hawaii and Department of Agriculture and Biosecurity.

Your Committees find that industrial hemp, which is fundamentally different than hemp cultivated for cannabinoid extraction, can help bring significant revenues and environmental benefits to the State. Your Committees recognize, however, that proper regulation of the industrial hemp industry, as provided by this measure, is necessary.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2178, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair