We're Suing the State of Hawaii—Again. Here's Why It Matters
How Hawaii’s Hemp Law Re-Criminalizes Federally Legal Cannabis, Threatens Small Businesses, and Violates the Constitution
I, Lance Alyas, and Kyler Falces-Cachola filed a federal lawsuit against Hawaii last week. Not because we want to fight the state, but because we honestly have no other choice.
The Simple Version
In 2018, Congress legalized hemp. The definition was crystal clear: cannabis with no more than 0.3% delta-9 THC is hemp, not marijuana. Period.
Hawaii initially agreed. The state even declared hemp “a high-value crop with the potential to bring significant and diverse revenues to Hawaii, with more than fifty thousand recognized uses.”
We built our businesses on that foundation. So did countless others across the islands.
Then Hawaii changed the rules—and made what Congress legalized criminal again.
How It Happened
In 2020, Hawaii slipped new language into its hemp definition that allowed regulators to use “post-decarboxylation” testing. That technical term hides a massive shift: the state now converts THCA—a non-intoxicating compound found naturally in raw hemp—into delta-9 THC using a mathematical formula.
Products that are unquestionably legal under federal law suddenly became questionable under state law.
This year, it got worse. Much worse.
Act 269, effective January 1st, didn’t just create paperwork—it created crimes. Selling federally legal hemp that fails Hawaii’s unique testing standard is now a misdemeanor. Second offense? Felony.
The law also authorizes immediate seizure and destruction of inventory. No hearing. No chance to defend yourself. The statute explicitly relieves the state of any responsibility for seized products—meaning they can destroy everything before you ever see a judge.
What’s Really At Stake
This isn’t about regulatory compliance. We support reasonable oversight, proper testing, accurate labeling. This is about whether states can simply re-criminalize what Congress deliberately legalized.
If Hawaii can do this, what stops every other state from inventing their own testing standards? What happens to the uniform national market Congress created? How does any business operate when a product can be legal in 49 states but criminal in one?
The answer is: they can’t!
The Constitutional Problem
Our lawsuit asks four straightforward questions:
1. Can a state make criminal what Congress made legal? No—that’s what the Supremacy Clause prevents!
2. Can bureaucrats exceed their authority and create new crimes through administrative rules? The legislature authorized testing protocols, not redefinitions of hemp through conversion formulas.
3. Can a state shut down interstate commerce by imposing unique standards found nowhere else? Not when it destroys the national market Congress deliberately created.
4. Can the government seize and destroy your property without a hearing? The Constitution says you get due process before deprivation, not after your business is already gone.
What We’re Actually Asking For
We’re not trying to dismantle Hawaii’s hemp program. We’re asking for something remarkably modest:
Stop treating federally legal products as illegal. Stop seizing and destroying property without due process.
That’s it. Inspect us. Regulate us. Hold us to high standards. Just don’t criminalize federal law!
Why This Fight Matters
Someone had to draw the line.
The hemp industry has worked hard to operate responsibly. We’ve advocated for smart regulations. We’ve supported testing and labeling requirements. We’ve been willing partners in building a legitimate market.
But we cannot—and will not—accept a system where doing everything right under federal law still results in criminal prosecution and business destruction under state law.
What Happens Next
We’ve filed for a preliminary injunction to pause enforcement while the case proceeds. The court will hear arguments, review evidence, and decide whether Hawaii’s approach violates the Constitution.
Whatever happens, I’m proud we’re taking this stand. Not just for our businesses, but for every hemp operator in Hawaii and every small business owner who’s ever wondered: what happens when state law and federal law collide?
Well….we’re about to find out!
Lance Alyas,
Oahu Dispensary and Provisions