Hemp

Lawsuit Argues Hawaii's Harsh New Hemp Regulations Will Stifle Competition

A dispensary owner believes Hawaii’s hemp regulations are unconstitutional. He’s suing to stop their enforcement, but the law may not be on his side.

Tosin Akintola | 6.25.2026 2:10 PM

Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL Add Reason to Google

Media Contact & Reprint Requests

(Illustration: DPST/Newscom)

Starting in July, Hawaii will begin earnestly enforcing some of the strictest hemp regulations in the country. One dispensary owner is suing to stop it.

Lance Alyas, a Hawaii resident who owns four hemp dispensaries, alleges that the state's hemp laws violate "federal constitutional and statutory law, including the Supremacy Clause, the Dormant Commerce Clause, and the Due Process Clause." Alyas tells Reason he's the victim of "selective regulation" by state officials who favor the medical marijuana industry over hemp. 

Under Hawaii's Act 269—passed in July 2025 and effective January 2026—all retailers and distributors of manufactured hemp products, including online and out-of-state sellers, must register their business with the state. The bill also tasks Hawaii's Health Department and its Office of Medical Cannabis Control and Regulation with enforcing existing regulations for hemp businesses, including registration and product compliance.

State officials gave business owners until July 1 to come into compliance with regulations, after which they would be subject to penalties, including fines of up to $10,000 for "each separate offense." The Health Department, the attorney general, and law enforcement will also be empowered to seize and destroy any prohibited product found. 

Hemp and marijuana are the same species of plant. The 2018 Farm Bill, which legalized hemp........

© Reason.com