The following article was originally published in the Ohio Capital Journal and published on News5Cleveland.com under a content-sharing agreement.
Ohio Senate Republicans are trying to significantly change the state’s marijuana law before it goes into effect Thursday.
Despite Ohioans passing Issue 2 with 57% of the vote, the Ohio Senate General Government Committee approved a substitute bill Monday morning that would, among other things, eliminate home grow as well as raise the tax rate, change how the revenue funds would be used, and lower THC levels.
Sen. Rob McColley, R-Napoleon, added the proposed marijuana law changes to House Bill 86. HB 86 — introduced earlier this year by rep. Jeff LaRe, R-Violet Twp, — would revise the state’s liquor control laws and passed the Ohio House in the summer with little opposition.
“This is language concerning changes to the adult use marijuana program that is meant to address a variety of issues that we felt were the best public policy of the state of Ohio,” McColley said before going over the numerous changes.
But Ohio Senate Democrats are concerned these proposed changes are not what the voters want.
“A few tweaks to the law may be necessary, but too many of the proposed changes are egregious and could thwart the will of the people, who voted decisively in favor of Issue 2,” Senate Minority Leader Nickie J. Antonio, D-Lakewood, said in a statement.
“I’m hopeful that we can continue to work together to end up with a policy that respects what the people of Ohio voted for.”
Sen. Bill DeMora, D-Columbus, criticized getting rid of home grow, reworking the tax structure, and changing how the funds are distributed.
“The voters’ intent is nowhere to be found in this, what I call a shell of what the voters passed,” he said.
Tom Haren, spokesperson for the Coalition to Regulate Marijuana Like Alcohol, criticized lawmakers for attempting “to pass this bill in a rushed process.”
“Some in the Ohio Senate propose to gut Issue 2’s most important provisions, including home grow and social equity, and to put in place higher taxes that will entrench the illicit market and force Ohioans to continue to buy their cannabis products in Michigan,” he said.
How would the Senate Bill change Ohio’s marijuana law?
Issue 2 passed with a 10% tax at the point of sale for each transaction, which McColley said would have put Ohio “on the low end” compared to the rest of the country.
The bill ups the tax rate to 15% and tacks on a 15% tax on cultivators. The revenue projections would be $262 million per year once the program is fully operational, McColley said.
“The silver lining … is that marijuana has always been operating in a black market,” McColley said. “This is an opportunity for Ohio, if done correctly, to try and stamp out that black market to the extent possible, and then also put a program in place to make sure that Ohioans have accessible, reasonable and safe marijuana products for their purchase.”
A higher tax rate means a higher price for consumers.
How the revenue funds would be allocated would also change if passed. Issue 2’s ballot language created five funds in the state treasury: the adult use tax fund, the cannabis social equity and jobs fund, the host community cannabis fund, the substance abuse and addiction fund, and the division of cannabis control and tax commissioner fund.
Under the bill, 45% would go to Ohio’s general revenue fund for state operations, 30% would go to law enforcement training, 15% would go to a marijuana substance abuse treatment and prevention fund, and 10% would go to a safe driver training fund.
The THC levels would change from 35% for plant material and 90% for extracts to 25% for plant material and 50% for extracts.
Perhaps one of the biggest proposed changes is eliminating home grow. As it was written, Issue 2 legalized home grow for Ohioans 21 and up with a limit of six plants per person and 12 plants per residence.
“There are members, frankly, even on our side of the aisle who would like to see home grow provisions added in,” McColley said. “There are a number of members who are pretty adamant that home grow is simply an avenue for the black market to continue to flourish. One of the goals here is to stamp out as much of the black market as we can.”
Cities, townships and villages could also prevent marijuana cultivators, processors, and dispensaries from operating in their jurisdiction under the bill. This, however, would not prohibit consumption.
There would also be a public smoking ban and smoking would be only allowed in a private residence, but landlords would be able to prohibit the use of marijuana.
Advertisements could not target children by featuring things such as cartoon characters, a fictional character, animals and fruit.
Employers would be able to ban marijuana use and use it as a reason to not hire a prospective employee.
Issue 2 capped the number of dispensaries permitted at once to 350, but the bill cuts that down to 230.
“To put that in a frame of reference, that’s more medical marijuana dispensaries than we would have Kroger grocery stores in the state of Ohio,” McColley said. There are 195 Kroger grocery stores in Ohio, according to the supermarket’s website.
Ohio House bill’s proposed changes to marijuana law
This isn’t the only bill in the Statehouse that’s trying to change Ohio’s adult-use program.
Rep. Gary Click, R-Vickery, introduced House Bill 341 last week — which would change how the revenue funds would be allocated and allow municipalities to ban marijuana dispensaries and home grow.
