Last verified: March 2026
Overview: 8 Licenses, No New Entrants
Hawaii's medical cannabis dispensary program operates under HRS Chapter 329D, enacted as Act 241 in 2015. The law authorized exactly 8 dispensary licenses — the fewest of any state with a legal cannabis program. All 8 were awarded in April 2016, and no new licenses have been issued since.
Each license covers the entire vertical chain: cultivation, processing, manufacturing, and retail. There are no separate license types. This makes Hawaii's dispensary market the most restricted in the nation — both in total license count and in the requirement that every licensee operate as a fully integrated business from seed to sale.
License Allocation by County
Licenses were distributed across Hawaii's four counties based on population:
- Honolulu County (Oahu) — 3 licenses (Aloha Green, Cure Oahu, Noa Botanicals)
- Hawaii County (Big Island) — 2 licenses (Hawaiian Ethos, Big Island Grown)
- Maui County — 2 licenses (Maui Grown Therapies, Pono Life Maui)
- Kauai County — 1 license (Green Aloha)
For details on each licensee and their retail locations, see Hawaii Dispensary Brands.
The 2016 Application Window
The Department of Health opened a single application window from January 12 to January 29, 2016. During those 18 days, the DOH received 66 applications from companies seeking one of the 8 available licenses. Winners were announced on April 29, 2016.
No subsequent application window has opened. The 2016 round remains the only opportunity that has ever existed to apply for a Hawaii dispensary license.
License Fees and Capital Requirements
| Requirement | Details |
|---|---|
| Application fee | $5,000 (non-refundable) |
| Initial license fee | $75,000 |
| Annual renewal | ~$120,000 (variable) |
| Minimum capital | $1,000,000 + $100,000 per retail location |
| Residency | 5-year Hawaii residency; majority Hawaii-resident ownership |
| Background check | FBI criminal history; no felony convictions |
| Buffer zone | 750 feet from schools and playgrounds |
Capital Requirements
Applicants must demonstrate substantial financial resources:
- $1,000,000 minimum — base capital requirement
- $100,000 per retail location — additional capital for each dispensary storefront
These requirements ensured that only well-capitalized entities could operate in the program, reflecting the vertically integrated model where each licensee must fund cultivation, processing, manufacturing, and retail operations simultaneously.
What Each License Allows
A single Hawaii dispensary license authorizes the following operations:
- Up to 3 production centers — enclosed indoor cultivation and manufacturing facilities
- Up to 2–4 retail locations — patient-facing dispensary storefronts (varies by county allocation)
- Up to 7,500 plants per production center (15,000 total across facilities)
As of December 2024, Hawaii's 8 licensees collectively operate 25 retail locations and 13 production centers — a total of 38 licensed facilities statewide.
Eligibility Requirements
The 2016 application imposed strict eligibility criteria, many of which would apply to any future applicants if additional licenses are ever authorized:
- Residency: 5-year Hawaii residency required; majority of ownership must be Hawaii residents
- Age: All principals must be 21 or older
- Background check: FBI fingerprint-based background investigation for all owners, officers, and board members
- Criminal history: No felony convictions
- Zoning: All facilities must be located at least 750 feet from schools and playgrounds (HRS §329D-22)
Can New Licenses Be Issued?
Technically, yes — but none have been. Under HRS §329D-2, the Department of Health gained authority after October 1, 2018 to issue additional dispensary licenses at a maximum rate of 1 per 500 registered patients per county. However, as of March 2026, the DOH has not exercised this authority, and no new application window has been announced.
Multiple legislative sessions have considered bills to restructure or expand the program — including proposals for adult-use (recreational) legalization that would have created an entirely new licensing framework. None have passed into law as of March 2026.
For anyone considering entering the Hawaii cannabis industry, the current path is effectively closed. The 8 existing licenses were awarded in 2016 with no new ones issued since. The only realistic entry points today would be acquiring an existing licensee (a multimillion-dollar transaction) or waiting for potential legislative changes that create new license categories.
Vertical Integration Explained
Hawaii's model differs fundamentally from most other states. In a typical state cannabis program, separate licenses exist for cultivation, manufacturing, distribution, and retail — and products from multiple producers can appear on any dispensary shelf. In Hawaii, each licensee does it all: growing the plant, extracting and manufacturing products, and selling them directly to patients. No wholesaling, no third-party brands, no supply chain intermediaries.
This model has trade-offs. It creates a shorter, fully traceable supply chain and ensures tight quality control. But it also limits patient choice, reduces market competition, and creates high barriers to entry.
For information on the rules these licensees must follow, see Compliance Requirements. For links to the relevant statutes and regulations, see Industry Resources.
HRS Chapter 329D authorized 8 dispensary licenses allocated by county. The sole application window ran January 12–29, 2016, with 66 applications received and 8 selected on April 29, 2016. The DOH may authorize additional licenses at 1 per 500 patients per county after October 1, 2018, but none have been issued.
Hawaii DOH — Medical Cannabis Dispensary Program
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