On February 26, the Ohio Senate approved a bill proposing significant changes to the recreational cannabis law, which was overwhelmingly supported by voters in November 2023. Senate Bill 56 passed the Senate 23-9 and will now go to the Ohio House, which has crafted its own less drastic revisions to the law, for further consideration.
Led by Sen. Steve Huffman (R-Tipp City), the Ohio Senate bill would revise Issue 2, a recreational marijuana initiative that received 57% of the vote. If passed, SB 56 would alter key components of a program that supporters believe will correct past injustices in cannabis prohibition.
For example, the bill would eliminate a social equity and job creation program that would have provided licensing opportunities for minority-owned businesses. It also establishes new penalties for those who smoke or vape marijuana while operating a vehicle.
Other significant changes to the original program include:
- Reducing the maximum number of home grown marijuana plants in a single residence from 12 to six;
- Prohibiting the possession of marijuana purchased out-of-state;
- Reducing the maximum THC content in cannabis extracts from 90% to 70%.
While the most recent version of the bill does not include provisions for increasing taxes on recreational cannabis, Ohio Gov. Mike DeWine’s newly proposed budget, which is currently being debated in the Ohio House, raises the marijuana tax from 10% to 20%.
Industry supporters expected some pushback on Ohio’s recreation program, but the scale of the alleged changes is still a gut punch, according to Tim Johnson, a former law enforcement officer who advised the Ohio legislature prior to the Issue 2 vote.
“SB 56 is creating a new era of prohibition, and creating new penalties when we’re supposed to be getting by that,” Johnson complained. “You cannot share a joint with your spouse or smoke on your own patio. The rules for possession are more stringent than those found in the current criminal codes.
Huffman’s legislation allows for the expungement of marijuana-related convictions that were legalized under Issue 2, but applicants must pay a $50 filing fee. Furthermore, the bill would combine the state’s medical and recreational cannabis programs into the Division of Cannabis Control, while limiting the number of licensed dispensaries within Ohio’s borders to 350.
Johnson is disappointed that initiatives developed within the scope of Issue 2, such as the social equity program, may not be given a chance to succeed.
“(Lawmakers) said we’re not satisfied, so we’ll do those laws for you,” Johnson told the crowd. “They’re telling people they don’t care you voted – that your mistake was making this into an initiative that could be revised.”
The wrong idea
On March 6, Ohio House Republicans introduced a separate bill, Ohio House Bill 160, which includes a public smoking ban but allows consumption on residential property, including a front porch.
Rep. Brian Stewart (R-Ashville) introduced the bill, which maintains Ohio’s 12-plant home grow limit and the current 10% marijuana tax. Similar to SB 56, the House bill would reduce THC levels in cannabis extracts and limit the number of state-licensed dispensaries. Under Stewart’s legislation, all THC products, including intoxicating hemp, can only be purchased from regulated marijuana stores.
Ohio dispensary operators are concerned that a DeWine-led tax increase will drive customers back to their dealers, if not to competing markets such as Michigan. DeWine’s budget would put cannabis revenue into a fund to benefit six different agencies: tax, health, commerce, public safety, behavioral health, and the attorney general’s office.
“This will make Ohio less competitive than the illicit market or the state of Michigan,” said Jared Maloof, CEO of Standard Wellness, a cannabis company based in Ohio with operations in Utah, Missouri, and Maryland. “It’s unfortunate that a few people in the legislature want to overturn the will of the people in Ohio.”
According to data from the Ohio Division of Cannabis Control, total legal cannabis sales in Ohio exceeded $93 million during the January reporting period. A significant tax increase would not only reduce that pie, but it could also force Standard Wellness to lay off employees or reduce employee hours following a recent hiring spree, according to Maloof.
Maloof stated that lawmakers’ stated goals of protecting children and consumers will not be met by raising taxes and imposing unenforceable home grow restrictions.
“It will be hard for any regulator to police the quantity of plants in someone’s home,” he told me. “It’s unrealistic to expect that people who made an investment in growing equipment will simply throw away 50% of that equipment.”
Maloof also believes Huffman and his colleagues are overly concerned with arbitrary numbers when it comes to lowering THC levels in cannabis products.
“I think about it in the context of three-two beer,” Maloof said, referring to misleading claims that 3.2% alcohol products are not intoxicating. “Ninety percent (THC) sounds high, but realistically speaking, a vape pen or concentrate at the level is not introducing more risk to the consumer.”
A stigma ‘alive and well’
Standard Wellness is already receiving calls from customers concerned about significant changes to the recently established cannabis market. Beginning in March, the company plans to provide patrons with educational materials in order to spark a grassroots campaign against SB 56.
Jeremy Cooper, an Akron-born cannabis educator and event marketer, wants citizens to send lawmakers personal stories.
“I say, very simply, that everyone is a patient, no matter who you are,” observed Cooper. “Most people who use cannabis do so for a reason. They may have anxiety, back pain, or it simply helps them get through the day. I can think of several prescription drugs that do the same thing.”
Cannabis has demonstrated some potential health benefits; the United States Food and Drug Administration recently approved Epidiolex, a purified CBD product, to treat rare seizure disorders in children.
Although more research is needed to fully understand the plant’s medical potential, consumers and entrepreneurs can direct legislators to, for example, the use of hemp-based components in aerospace and aeronautics.
“If the GOP realizes there’s money to be made in the science aspect, you might be able to appeal to a different side of reefer madness,” he told reporters.
Johnson, an ex-law enforcement officer and cannabis advocate, stated that SB 56 would only exacerbate Ohio’s negative perception of marijuana, which is already gaining recreational traction.
“It sends a clear message that the stigma around cannabis is alive and well,” Mr. Johnson said. “There are ways to challenge what (lawmakers) want to take away from us, so open your mouth.”
