COLUMBUS, Ohio (WCMH) — Ohio’s voter-approved initiative legalizing cannabis is now in effect, as the Statehouse is negotiating whether to increase the substance’s tax rate and allow medical dispensaries to sell recreational marijuana.
Issue 2, which voters passed Nov. 7 with 57% support, legalizes the sale, purchase and possession of cannabis for Ohioans who are 21 and older. However, unlike the abortion rights constitutional amendment that also passed, Issue 2 appeared on the ballot as an initiated statute — giving state lawmakers the final word.
Now, legislators at the Ohio Statehouse are negotiating how to alter the enactment of Issue 2 through two competing bills — House Bill 86, approved 28 to 2 in the Senate on Wednesday, and House Bill 354, awaiting a vote in the House of Representatives. During a Wednesday evening press conference, Gov. Mike DeWine spoke in favor of H.B. 86 and said the legislation will help prevent a “black market.”
“This black market will just take off,” DeWine said. “People will be getting it from many sources, none of them legally. Without this bill, people could be buying marijuana that has fentanyl in it. The leading cause of death in the state of Ohio of overdoses is fentanyl, 80% of our deaths.”
However, several House members have spoken out against H.B. 86, arguing the legislation is far from what voters approved. As negotiating continues, here is how the measures compare. As it stands, the House Finance Committee has a hearing scheduled for Thursday on H.B. 354. The next full session of the House is set for next week, and Senate President Matt Huffman said he is open to taking up that version of the bill in his chamber should it pass the House.
How much cannabis can adults possess? Is it legal in every Ohio city?
Issue 2 as written permits adults to possess up to 2.5 ounces of marijuana, up to 15 grams of marijuana concentrate and grow up to six plants per individual or up to 12 per household. H.B. 354 maintains these guidelines.
However, H.B. 86 decreases the number of marijuana plants to six per household. The legislation previously repealed the home-grow provision completely. The bill would also maintain the maximum amount of THC at 35% for plant material and reduce it from 90% to 50% for extracts.
While recreational marijuana is now legal statewide, H.B. 86 allows home-rule authority. This means townships, villages and cities can choose to prohibit dispensaries within their jurisdiction.
When will dispensaries open for purchasing?
Although Issue 2 is now in effect, recreational cannabis is not immediately available to purchase in dispensaries. The first sales cannot occur until the newly established Division of Cannabis Control completes the rulemaking and licensing processes. The division has nine months to outline the criteria for certifying facilities.
H.B. 86 has proposed allowing the state’s medical marijuana dispensaries to sell recreational marijuana to those 21 and older, which would permit the buying and selling much sooner.
Where is smoking allowed? Can an employer or landlord prohibit smoking?
H.B. 86 permits smoking, vaping and combustion only within a private residence. The bill bans public smoking, bans smoking while in a vehicle, and allows landlords to prohibit smoking. Employers also have the right to establish and enforce a drug testing policy, drug-free workplace policy or zero-tolerance policy. Under this proposal, any person who is fired from a job because of marijuana use is considered to be discharged for just cause.
Will cannabis-related offenses be erased?
Issue 2 will not automatically erase the criminal records of those previously charged with marijuana offenses. However, H.B. 86 would expunge convictions for possessing 2.5 ounces of marijuana or less.
How will cannabis be taxed?
Those in Ohio who purchase cannabis under Issue 2 would pay a 10% excise tax, the same rate as Michigan and Illinois, plus a 5.75% state tax, in addition to a local tax ranging from 0.25% to 2.25%. Patients within the state’s medical marijuana program would not be subject to the tax.
However, H.B. 86 would increase Ohio’s excise tax to 15% with the hope of generating $262 million once the program is fully operational, according to Sen. Rob McColley (R-Napoleon). Meanwhile, the House is still negotiating whether to propose lowering or increasing the excise tax rate within H.B. 354.
How will the tax revenue be distributed?
Under Issue 2, some of the tax revenue would go toward equity and jobs programs. The 10% rate could generate $182 million to $218 million during the first full year of operations, according to estimates from Ohio State University’s Drug Enforcement and Policy Center. By the fifth year, the state could collect $336 million to $403 million from an excise tax on marijuana.
Under H.B. 86, 30% of the revenue would be dedicated to law enforcement training, 15% to the Marijuana Substance Abuse Treatment and Prevention Fund, 10% to the Safe Driving Training Fund and 45% to the General Revenue Fund. H.B. 86 removes the equity and jobs programs.
Rep. Jamie Callender (R-Concord) and Democratic House leadership have expressed support for allowing local municipalities to have greater control over how to use tax revenue by adding a provision within H.B. 354.
Will children be shielded from advertising or exposure?
H.B. 86 includes restrictions designed to shield children from advertising, like prohibiting packaging that depicts anything resembling a cartoon character, fictional character, or pop culture figure “whose target audience is children.”
H.B. 354 also features provisions to ensure minors are not targeted by advertising. Callender said they are modeling the bill “off of alcohol and tobacco, where we’ll have restrictions on content — as far as aimed at children or aimed at minors — and we’ll restrict placement of advertising within certain distances of schools and churches.”
How does federal law impact Issue 2?
Marijuana is still illegal federally, and the state law will not completely trump federal laws, so buying it in another state and bringing it back to Ohio or any other state is still illegal, even if marijuana is legal in both states.
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