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

Despite 57% of voters in Ohio supporting an adult-use cannabis legalization measure on Nov. 7, Gov. Mike DeWine indicated Monday that legislative changes to the approved initiative are coming.

The Republican executive, who voiced opposition to Issue 2’s passage, told reporters in Columbus that he met with legislative leaders on Nov. 13—including Ohio House Speaker Jason Stephens, R-Kitts Hill, and Ohio Senate President Matt Huffman, R-Lima—to discuss proposed revisions to the initiative, Cleveland.com/The Plain Dealer reported.

While Stephens and Huffman have publicly stated their clash to certain provisions in the voter-approved initiative, DeWine didn’t say specifically what the legislative leaders plan to revise and/or repeal before the statutory law goes into effect on Dec. 7. But the governor did say any altercations to the final language should not come as a shock.

“I don’t think there’s any surprises out there,” DeWine told reporters this week in Columbus.

Ohio, which is the 24th state in the nation to legalize adult-use cannabis, had the third largest margin of victory for a citizen-initiated adult-use ballot measure, behind Arizona (60%) and California (57.1%).

RELATED: Ohio Voters Legalize Adult-Use Cannabis in Redemption Election

On the Thursday following the election, DeWine previously told reporters in Columbus that he intends to uphold the voters’ will and not repeal the cannabis legalization measure, but he did say he wanted to see certain changes enacted in the new law’s final language, The Columbus Dispatch reported.

Notably, DeWine said he would push for revisions to what he perceived as child safety concerns as well as more stringent restrictions on advertising, impaired driving and public consumption.

“I think it’s in the interest of everybody, if you want to grow marijuana, if you want to sell marijuana, if you consume marijuana or if you’re even just a citizen who wants to protect your children, I think it’s important that we get this done quickly,” DeWine said last week. “And get it done thoughtfully and come up with a package, so at least everybody knows what the ground rules are when we start something new for the state of Ohio.”

Notably, the legalization initiative’s text requires the Division of Cannabis Control within the state’s Department of Commerce to adopt “reasonable” standards for advertising, including adopting rules to prevent advertisements that are false, misleading, targeted to minors, or promoting excessive use or illegal activity. It is also unlawful to be impaired by cannabis while driving or to consume cannabis in public areas under the voter-approved initiative.

In addition to DeWine’s concerns, Stephens and Huffman have their own reservations.

Almost immediately following the finalized election results on Nov. 7, Stephens issued a statement calling for the tax dollars generated from a forthcoming adult-use marketplace to be allocated places other than what voters approved that day. Notably, Huffman indicated he wanted tax revenue to go toward county jails and law enforcement.

“With the passage of Issue 2, now is the time for the Legislature to lead on how best to allocate tax revenues while responsibly regulating the industry,” Huffman said. “Investing in county jail construction and funding law enforcement training across Ohio should be our top priority to make our communities safer.”

Following is the tax revenue allocation structure that voters approved in the election:

• 36% toward supporting municipalities with dispensaries
• 36% toward supporting social equity and jobs program
• 25% toward education, substance abuse and addiction treatment programs
• 3% toward state costs to run a legalized program
  

Meanwhile, in the Ohio Senate, Huffman has expressed interest in raising the 10% cannabis excise tax rate that voters approved.

One reason legalization advocates propose lower excise tax rates is to help ensure licensed operators can compete with and eliminate the unregulated market.

RELATED: When and How 24 States Legalized Adult-Use Cannabis in the US: A Timeline With Current Tax Rates

Notably, Huffman has opposed adult-use legalization since Issue 2’s legalizations efforts first began.

In February 2022, Huffman said, “I’m not going to bring it to the Senate floor. And if that means people want to go put it on the ballot, have at it.”

But now that the people have had at it, Huffman indicated via a spokesperson last week that he also wants to revise the maximum THC percentages that voters approved on Nov. 7, Cleveland.com reported.

Under the voter-approved initiative, regulators in Division of Cannabis Control would be tasked with establishing a THC limit that does not exceed 35% in plant material and 90% for extracts. In other words, Ohio regulators could hypothetically set a THC potency cap on cannabis flower at 15%, 20%, 25%, 30%, 35%—basically anywhere at 35% or lower.

“Such content limits may be increased or eliminated by the Division of Cannabis Control,” according to the initiative’s text.

This delegation of regulatory authority provides for ongoing flexibility with regard to THC potency limits, but the Ohio General Assembly could take this flexibility away and enact more concrete and permanent THC limits based on the views of the state’s legislators.

In the governor’s office, DeWine said Monday none of his recommendations for revisions veer from the will of Ohio voters.

“I don’t think any of the things that I have suggested that we do really flies in the face of the spirit of what people were voting for,” he said. “I truly believe that most people went in (to the election) and the issue was, ‘Are we gonna have legal marijuana, or we’re not going to have legal marijuana?’ And the details—I’m not sure people got focused on it. I have to focus on it because we have to administer it. We have to make sure it actually does in fact work.”

The details of the 41-page legalization initiative were widely reported by Ohio and national media outlets leading up to Election Day, including here at Cannabis Business Times.