Ohio Regulators Release Marijuana Legalization Guidelines As They Prepare To Create Rules for Voter-Approved Marijuana Market

Ohio officials have released a FAQ guide that answers basic questions regarding , the new state marijuana legalization legislation approved by voters on February 2.

The Department of Commerce of the State (DOC) released a press statement on Wednesday to inform residents who are interested in finding out more about the timeline and rules for the implementation of the legalization initiative.

The measure will create a Division of Cannabis Control under the DOC, which will regulate the adult-use marijuana market and issue licenses for marijuana businesses. As the department explained, policies could change if lawmakers amend the law as some top GOP legislators have indicated they intend to do.

DOC stated that certain fundamental provisions will come into effect within 30 day. The legalization of the possession of up 2.5 ounces and the cultivation of six plants (or twelve if more than two adults live in a household) is set to take effect on December 7th.

What’s next for consumers, licensees and the industry in light of yesterday’s election and Issue 2? Check out our comprehensive FAQ guide to find the answers you’re looking for: https://t.co/FbTwJrgVuf #Ohio #ElectionResults pic.twitter.com/oADSxZuOOr

Ohio Commerce (@OhioCommerce November 8, 2020

The department clarified that retailers will have to wait longer before they can open their shops in a FAQ on the legalization of recreational sales.

stated that “Nonmedical Cannabis will not be available for immediate purchase in dispensaries. The general public is not allowed to enter dispensaries at this time unless they are registered patients or caregivers in the Ohio Medical Marijuana Control Program” (MMCP). There are no licensed entities in Ohio to sell nonmedical cannabis.

Voters approved the initiated law, which gives existing medical cannabis businesses an advantage in the recreational market. Within nine months after the law’s enactment, regulators will have to start issuing adult use licenses to applicants who are currently operating medical cannabis operations.

The division will also have to issue 50 adult-use retail licenses, and 40 recreational cultivator licences. This is “with preference given to applicants who are participating in the cannabis social equality and jobs program.” It would also authorize regulators to grant additional licenses for recreational market after two years.

The state legislature has a distinct but important role to play in this process. DOC stated that any changes to the law could affect the timeline of the rulemaking process and the licensing process. Individuals are not permitted to buy marijuana in another state and bring it to Ohio. The federal law prohibits marijuana from being transported across state borders.

The MMCP said that it continues to seek feedback from both internal and external stakeholders in order to better understand the impact of the current rules, and how they can be modified to ensure licensee compliance and product safety. According to the biennial Budget approved in July, the Ohio Board of Pharmacy will consolidate all medical marijuana responsibilities including regulation of dispensaries, oversight of the Patient & Caregiver Registry, and the regulation of dispensaries, on January 1, 2024.

The FAQ Guide answers specific questions regarding the date the new law will take effect, timelines for retail sales, regulatory rules, licensing applications, impact on medical cannabis program in the state, and tax policy.

While top Republican Ohio legislators and prohibitionist groups are already plotting ways to water-down a marijuana legalization bill that voters approved. Some have proposed changes to specific provisions, such as tax revenue allocations, while others have floated an outright repeal.

In September, a few Ohio legislators said that they did not believe the legislature would try to repeal a legalization law passed by voters.

The issue was only decided by the voters after lawmakers refused to use the opportunity to pass a reform during the ballot qualification procedure. The legislature had months to pass a legalization they could have tailored to address any outstanding concerns. However, the voters were ultimately left to decide by default.

Both sides increased their messaging and voter turnout efforts in the run-up to the election. The yes campaign sent cease-and-desist letters last month to television stations that were airing opposition ads, which organizers described as “filled with lies.” Reform advocates also released a pro Issue 2 election ad.

On his part, Gov. Mike DeWine, a Republican, has stated that “it would not be wise for us to have recreational cannabis.” He also noted that Colorado’s legalization in 2012 was an “absolute disaster” which he saw.

The GOP-controlled Senate, which was responsible for the early voting that began late last month urged residents to reject Measure .

Rep. Dave Joyce, the co-chairman of the Congressional Cannabis Caucus said in September he’d vote in favor of this initiative in November. He encouraged “all Ohio citizens to take part and have their voices heard about this important issue.”

In a statement made to Marijuana Moment, the congressman stated that Ohio voters from across the political spectrum had shown that the prohibition of cannabis was no longer viable nor representative of the general electorate.

“The federal government should not only respect our state’s will and that of its voters, it must also support them.” “I am more motivated than ever to pass reforms that are based on common sense,” he said. “I will focus my efforts on reversing harms caused to those unjustly affected by a nearly century-long prohibition, and increasing public security–which is inextricably tied to effective and efficient regulations.”

Sherrod BROWN (D-OH), the chairman of the Senate Banking Committee, said that he voted for the ballot initiative to legalize marijuana. He called it a hard decision but one based on the belief that this reform would promote consumer “safety”.

Researchers at Ohio State University found that the change would generate $404 million annually in tax revenue.

Ohio voters rejected the 2015 measure on 64-36, which would have changed the state constitution to legalize pot and give the control of the market a small group producers. The organizers of the current campaign claim that they have learned lessons from the failure when crafting the current initiative.

In May , bipartisan Ohio legislators submitted a separate bill for legalizing marijuana. This gave the legislature a second chance to lead the reform.

These are the main provisions of the Ohio legalization measure which was approved:

This initiative will allow adults over 21 to possess up to 2.5 ounces (or 15 grams) of cannabis. They can also possess up to 15 gram of marijuana concentrates.
Each individual could grow six plants to use for their own personal needs, and a maximum of 12 plants in a household.
The 10 percent tax on cannabis sales would go to fund social equity and job programs (36%), localities who allow adult-use marijuana businesses to operate in their areas (36%), education and drug misuse programs (25%), and administrative costs for implementing the system (3%).
The Department of Commerce would establish a Division of Cannabis Control. The division would be able to “license and regulate adult-use cannabis operators, adult-use testing laboratories, as well as individuals who are required to have a license.”
This measure will give current medical cannabis businesses an advantage in the recreational market. Within nine months after the law’s enactment, regulators would have to start issuing adult use licenses to applicants who are qualified and operate medical cannabis operations.
The division will also have to issue 50 adult-use retail licenses, and 40 recreational cultivator licences. This is “with preference given to applicants who are participating in the cannabis social equality and jobs program.” It would also authorize regulators to grant additional licenses for recreational market after two years.
Municipalities could opt not to allow new recreational cannabis businesses to open in their region, but existing medical marijuana companies would still be allowed to operate in the same area. Employers can also enforce policies that prohibit workers from using cannabis for adult purposes.
The Department of Mental Health and Addiction Services would also be required to enter into an agreement to provide “cannabis-addiction services” which would include “education and treatment of individuals with addiction issues related either to cannabis or to other controlled substances, including opioids.”
Some advocates worry about the lack specific language regarding automatic expungements, which would clear the records for people who have convictions from crimes that would become legal under the new legislation. The measure includes a clause requiring regulators “to study and fund” criminal reform initiatives, including expungements.