Ohio Lawmaker Introduces Legislation to Allow Municipalities to Restrict Adult-Use Cannabis

Issue 2, which Ohio voters approved with 57% support in the Nov. 7 election to legalize adult-use cannabis, could see some changes under legislation introduced Nov. 28 by State Rep. Gary Click, R-Vickery.

Click’s House Bill 341 would expand local control of adult-use cannabis, allowing municipalities to ban cannabis use and home grow, as well as impose additional taxes.

Gov. Mike DeWine and legislative leaders have noted that they intend to revise the voter-approved statutory measure, which takes effect Dec. 7.

Since Issue 2 is a statutory measure, Ohio lawmakers will have the final say over specific codified language and may repeal certain provisions included the language of the initiative, which was supported by the Coalition to Regulate Marijuana Like Alcohol.

RELATED: Changes Coming to Ohio’s Voter-Approved Cannabis Measure; Governor Says No ‘Surprises’

The measure voters approved earlier this month allows adults 21 years and older to purchase and possess up to 2.5 ounces of flower (or 15 grams of extract) and to grow up to six plants at home, with a maximum of 12 plants per household. The measure also includes provisions to establish a commercial adult-use cannabis marketplace.

Issue 2 also levies a 10% excise tax at retail, with portions of the tax revenue flowing toward a social equity and jobs program, municipalities that host dispensaries, education, and substance abuse and addiction treatment programs, as well as covering the state costs associated with operating the adult-use cannabis program.

The measure directs the state to establish a Division of Cannabis Control (DCC) within the Ohio Department of Commerce to oversee a regulated marketplace, with regulators responsible for issuing cultivation, manufacturing, dispensary and testing laboratory licenses.

Click’s H.B. 341 would remove provisions in Issue 2 that bar municipalities from banning cannabis use and home grow altogether, as well as eliminate a provision banning local governments from levying special taxes or fees on cannabis businesses, according to The Cincinnati Enquirer.

The legislation also alters how the tax revenue generated from adult-use cannabis would be distributed, the news outlet reported. While the bill preserves the funds flowing to the social equity and jobs program, as well as the communities that host cannabis businesses, it earmarks additional revenue for substance abuse and creates a fund for law enforcement training.

“This is a discussion starter rather than the binary choice that was on the ballot,” Click told The Cincinnati Enquirer. “It starts the conversation. Obviously, people want recreational marijuana. But they didn’t get to dialogue in details. This is the opportunity for citizens to express their voices in the committee process. I am open to amendments that reflect the will of the people.”

DeWine and Senate President Matt Huffman, R-Lima, have indicated that they would like to enact some changes to Issue 2 before the law takes effect next week, but House Speaker Jason Stephens, R-Kitts, has not expressed willingness to adhere to the same timeline, according to The Cincinnati Enquirer.

Under the voter-approved measure, Ohioans will be permitted to use and grow cannabis as of Dec. 7, but commercial adult-use sales won’t launch until sometime next year, after businesses are licensed to serve the market.

According to data from BDSA, which provides market intelligence for the cannabis industry, Ohio’s combined medical and adult-use cannabis sales are projected to hit $1.65 billion in 2027.