The Buckeye State has been the latest to join the growing list of states legalizing recreational marijuana. In November, Ohio voters passed Issue 2, allowing adults 21 and older to use and possess marijuana. However, just weeks after its passing, a new bill was introduced that could potentially change the landscape of Ohio’s adult-use marijuana industry.
House Bill 341, sponsored by Rep. Gary Click, R-Vickery, proposes several changes to the law approved by voters, including giving localities the power to ban recreational marijuana use and home grow. This has sparked debates among Ohio’s leaders on how to best regulate the program and allocate tax revenue. As the Dec. 7 deadline looms, all eyes are on Ohio to see how these proposed changes will affect the state’s budding cannabis industry.
In November, Ohio became the latest state to legalize recreational marijuana through Issue 2, a ballot measure that passed with 57% of the vote. Under this law, adults aged 21 and older are allowed to possess up to one ounce of marijuana and can grow up to six plants for personal use.
However, while Issue 2 legalized recreational marijuana in the state, it also included provisions for taxation and local control in regards to adult-use dispensaries in their respective districts. Allowing local governments to pass ordinances prohibiting adult-use dispensaries from setting up shop.
The program is expected to generate hundreds of millions in tax revenue, with a 10% excise tax on sales of marijuana products. As it currently stands Issue 2 did not allow these local governments to add additional taxes to cannabis products.
Under Issue 2, per Fox8 the majority of 36% of tax revenues from recreational marijuana sales would go toward a cannabis social equity and jobs fund, 36% is for municipalities and townships that have adult-use cannabis facilities, to be used as officials there see fit, 25% supports opioid abuse education and research, and the remaining 3% would go to administrative costs of the newly formed Division of Cannabis Control.
Proposed Changes under House Bill 341
House Bill 341, introduced by Rep. Gary Click, proposes significant changes to the current provisions under Issue 2. One of the most controversial changes is giving localities the power to ban recreational marijuana use and homegrow within their borders.
Issue 2 like mentioned above allowed local jurisdictions to implement ordinances to restrict marijuana business in their area, but it did not allow local governments to outlaw recreational cannabis use and home grow altogether, but Click’s bill would.
Under House Bill 341, the tax revision would be as followed, reported by Fox 19:
- 19.4% of tax goes toward the cannabis social equity and jobs fund.
- 19.4% of tax goes to the local cannabis fund to benefit municipal corporations or townships, which can use these funds for any approved purposes.
- 19.4% of tax goes toward the substance abuse research and education fund to support the Department of Mental Health and Addiction Services to alleviate substance abuse.
- 19.4% of tax goes to substance abuse addiction and recovery funds to support the efforts of the Department of Mental Health and Addiction Services which provides services for those in recovery. This is a new fund added by H.B. 314.
- 19.4% of tax goes toward the law enforcement cannabis training fund. This is a new fund added by H.B. 314.
- 3% of tax goes toward the Division of Cannabis Control and the tax commissioner fund to support the operation of the Division of Cannabis Control and to pay the cost of the Department of Taxation for administering the tax levy.
Click told FOX 8 News he feels the tax revenue allocations in Issue 2 were “a huge disservice.”
“They really gave the minimal amounts that they could to recovery, to educate and so forth. And I really felt like that needed to be upgraded,” he said.
The proposed changes under House Bill 341 have sparked controversy among Ohio’s leaders and citizens. Many argue that the bill seems unnecessary, especially considering the recent passing of Issue 2, which was approved by a majority of voters. It begs the question, why are we trying to change what people voted on before it has even been implemented?
Some speculate that this may be a stall tactic to slow down the process of cannabis legalization in Ohio. Others point out that the proposed changes would shift control from the state to local governments, potentially causing inconsistencies and confusion among different jurisdictions.
On December 7th, Issue 2 will become law in Ohio, legalizing recreational marijuana and establishing provisions for taxation and local control. However, the first adult-use sales are not expected to take place for a few months. In the midst of this transition, Rep. Gary Click has introduced House Bill 341 which proposes significant changes to the current provisions under Issue 2.
Many argue that these changes are unnecessary and even contradict the will of the people, as Issue 2 was approved by a majority of voters. Banning recreational cannabis use and homegrown all together seems extreme and goes against the efforts made by advocates to legalize marijuana in Ohio. It remains to be seen if this proposed bill will gain traction or if it will further delay the implementation of recreational marijuana in the state.
Ultimately, only time will tell what impact House Bill 341 will have on Ohio’s cannabis industry. As for now, citizens eagerly await the first legal adult-use sales while lawmakers continue to debate and make changes to Ohio’s cannabis laws.
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