The Ohio legislature is proposing significant changes to the state’s recreational cannabis laws, which could push consumers to neighboring Michigan. On February 26, the Ohio Senate passed Senate Bill 56, which seeks to revise the voter-approved recreational cannabis initiative known as Issue 2, which garnered 57% support in the November 2023 election. The bill passed with a 23-9 vote and will now be debated in the Ohio House, where lawmakers have their own, less severe revisions.
Led by Senator Steve Huffman (R-Tipp City), SB 56 intends to alter key elements of Ohio’s cannabis program. If approved, the legislation will allow for the expungement of marijuana-related convictions that are now legal under the new law, although applicants must pay a $50 fee to initiate the process. Additionally, it proposes to merge the state’s medical and recreational cannabis programs under the Division of Cannabis Control and limits the number of licensed dispensaries to 350 statewide.
Experts, including Jared Maloof, CEO of Standard Wellness, an Ohio cannabis company, warn that the proposed tax increase from 10% to 20% could undermine the legal market, making it less competitive against both the illegal market and Michigan’s cannabis market. Ohio’s cannabis sales exceeded $93 million in January, but a substantial tax hike could lead to job cuts or reduced hours for employees.
Maloof criticized the lawmakers for their approach, arguing that it contradicts the voters’ intent and fails to protect children and consumers as claimed. The proposed changes include eliminating a social equity program meant to create licensing opportunities for minority-owned businesses, imposing new penalties for using cannabis in vehicles, and lowering the maximum number of home-grown marijuana plants from 12 to six. The bill also restricts possession of cannabis purchased in other states and reduces the maximum THC content in cannabis extracts from 90% to 70%.
Although the current version of SB 56 does not include tax increases, Governor Mike DeWine’s proposed budget, currently under consideration, aims to raise cannabis taxes to 20%. This potential increase raises concerns among industry supporters who feel the extent of the proposed changes is alarming and counterproductive. Tim Johnson, a former law enforcement officer and advisor during the Issue 2 campaign, expressed disappointment that lawmakers seem to disregard the voters’ decision, stating, ‘SB 56 is creating a new era of prohibition.’
The outcome of these legislative efforts could reshape the Ohio cannabis industry significantly, prompting consumers to seek alternatives in Michigan, where regulations may be perceived as more favorable.
Spanish 
English 
German 
Czech