Adult-Use Cannabis Approved for Ohio’s November Ballot!
The Ohio Ballot Board voted yesterday to approve ballot language for an adult use cannabis legalization initiative that will be voted on in November. Known as “Issue 2”, and approved unanimously, would legalize and regulate cannabis for adults 21 and older. If passed, the initiative would allow adults to possess up to 2.5 ounces of cannabis and grow up to six plants for personal use. Some groups, including health associations and law enforcement, oppose the reform and have raised concerns about the lack of specific language on automatic expungements, while supporters believe that the initiative will bring significant revenue and stringent regulations to Ohio's cannabis market.
Issue 2 establishes a Division of Cannabis Control to oversee Ohio’s new adult-use cannabis market. The Division of Cannabis Control would grant existing medical cannabis businesses a leg up in the recreational market and issue them additional licenses for cultivation and retail. New licenses will be limited to 90 in the first 2 years. These will be broken down as follows: 50 for adult-use retail dispensaries and 40 for adult-use cannabis cultivation. Social Equity applicants will be given an advantage when pursuing these licenses. Regulators will then decide on future license expansions once this 2-year period is over.
The initiative includes provisions for a social equity program, tax on cannabis sales, and protections for employers and landlords. A 10% sales tax would be imposed on all retail cannabis sales, with revenue allocated to various programs such as social equity initiatives, education, and administrative costs. Local municipalities will have the ability to opt out and prevent the opening of new adult use cannabis facilities in their jurisdiction but will not be able to block pre-existing medical locations from expanding into adult-use.
For now, many will be looking forward to the results of this November’s election.