Ohio’s Cannabis Industry Eyes Adult-Use Legalization with Hope and Vigilance

LOS ANGELES- Ohio’s medical cannabis industry is looking toward the upcoming ballot with a mix of hope and caution as Issue 2, which would legalize adult-use cannabis, approaches a statewide vote. Operators in the sector anticipate a positive outcome, yet remain wary of potential legislative hurdles post-election.

Issue 2, a statutory measure awaiting a simple majority to pass, would commercialize, regulate, legalize, and tax cannabis for adult use. Geoff Korff, CEO of Akron-based Galenas, which also operates in Michigan, notes widespread public and private support for the initiative. Despite this, he underscores the necessity for diligence, given the political leadership’s opposition in Columbus and the potential for legislative changes to the initiative post-approval.

Major Ohio media outlets, such as The Plain Dealer/Cleveland.com and Crain’s Cleveland Business, endorse Issue 2, citing enhanced market safety and revenues for oversight and research as potential benefits over the current criminal enterprise. The Akron Beacon Journal’s editorial board, however, appears divided on the issue.

Jeff McCourt, CEO of Firelands Scientific, perceives broad support for legalization across the political spectrum, defying traditional party alignments. He reflects on the progression of cannabis policy and the perceived success of state-level regulation and normalization efforts.

The backdrop to this 2023 initiative is the failed 2015 adult-use proposal, largely opposed due to the creation of a perceived cultivation monopoly. Current polling indicates a favorable tilt toward Issue 2, with 57% of Ohio voters expressing support, including majorities across various political and demographic groups.

Upon passing, Issue 2 would activate within 30 days, with the Division of Cannabis Control under the Ohio Department of Commerce assuming regulatory control. Tom Haren, a spokesperson for the Coalition to Regulate Marijuana Like Alcohol, highlights the timeline for the license application and issuance process, hinting at the potential for adult-use sales to begin by the end of the next year.

The proposed law would also address social equity, with new cultivation and dispensary licenses prioritizing participants under the cannabis social equity and jobs program. Existing medical program operators could transition to the new adult-use market.

Despite the growth of Ohio’s medical program, with over 182,000 active participants, barriers remain for patients, such as limited access to recommendations and the annual renewal requirement. This has led many Ohioans to procure cannabis from neighboring states like Michigan.

The concern about surplus product due to current market limitations is balanced by the expectation of a demand surge with adult-use legalization. While optimism is tangible among industry leaders like Andy Rayburn of Buckeye Relief, there is an acute awareness of the legislature’s power to alter or repeal the statute post-election, especially in light of Gov. Mike DeWine’s opposition and a Senate resolution against Issue 2.

Detractors, including Ohio Sen. Mark Romanchuk, argue that legalization could exacerbate the state’s addiction crisis and lead to increases in traffic deaths, crime, and workplace accidents, although these claims lack robust empirical support.

As Election Day draws near, Ohio’s cannabis industry braces for the outcome of Issue 2, with implications that could extend beyond the immediate ballot measure to the broader discourse on cannabis policy and regulation in the state.