Ohio Legislators Grapple with Implementing Changes to Adult-Use Cannabis Law

2.2 min readPublished On: February 13th, 2024By

LOS ANGELES- In Ohio, the journey to fully implement adult-use cannabis legislation continues to encounter hurdles, despite the state’s voters approving Issue 2 in November 2023. This initiative, which legalized recreational cannabis, came into effect on December 7, 2023, but lawmakers are still working to refine and add changes to the voter-endorsed law.

House Speaker Jason Stephens recently described cannabis as a “complex issue,” highlighting the challenges faced by legislators in moving forward with the bills that would enact changes to the law. House Bill 86 and House Bill 354 are at the center of these discussions, both aiming to modify the framework established by Issue 2. Despite passing through various stages in the House and Senate, these bills have yet to progress further, leaving the future of Ohio’s cannabis regulations uncertain.

House Bill 86, which was introduced in February 2023, proposes several amendments, including automatic expungements, a shortened grace period for medical cannabis dispensaries to sell adult-use cannabis, expanded license eligibility, and funding for the 988 suicide hotline. The Senate made additional changes to the bill, which were sent to the House but have not been acted upon.

The spokesperson for the Coalition to Regulate Marijuana Like Alcohol, Tom Haren, emphasized that Issue 2 already provides a comprehensive regulatory framework for adult-use cannabis, suggesting that legislative action is not strictly necessary for the law to proceed as planned. The Division of Cannabis Control (DCC), under the Ohio Department of Commerce, is expected to have rules in place by June 7, with provisional licenses for non-medical cannabis facilities to be issued by September 7.

The complexity of implementing the cannabis law arises from determining the process for dispensary licensing and addressing tax revenue distribution. House Bill 86 also proposes a cannabis tax rate increase from 10% to 15%, along with provisions for local governments to impose additional taxes. The bill outlines the distribution of revenue funds to various entities, including county jail construction, law enforcement training, substance abuse treatment, and the 988 Suicide & Crisis Lifeline fund.

House Bill 354, introduced in December, seeks to clarify language in Issue 2, specifying that home cultivation must occur at a person’s residence and adjusting the allocation of cannabis tax revenue to different agencies.

As the Ohio House resumes action on April 10, legislators remain hopeful for progress in refining the state’s cannabis legislation. House Minority Leader Allison Russo acknowledges that there are aspects of the law that require further discussion, while Tom Haren remains encouraged by the deliberate approach being taken by the House.

The ongoing legislative process in Ohio reflects the complexities of implementing adult-use cannabis laws and the need for careful consideration to ensure that the regulations align with the voters’ intentions and address the intricacies of the burgeoning cannabis market.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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