Ohio Legalizes Cannabis via Voter initiative
On November 7, 2023, Ohio voters passed a ballot measure to legalize adult-use cannabis, making it the 24th state to embrace legalization outside of medical use. The law passed easily with an estimated 56.79% vote (i.e., 2.144 million voters out of the 3.8 million who cast ballots). The law will take effect on December 7, 2023.
Breaking Down the Ohio Cannabis Initiative
The new law in Ohio legalizes cannabis for adults 21 years of age and older and regulates the commercial cultivation, manufacturing, testing, and sale of cannabis pursuant to a state-regulated licensing program. Once in effect, adults 21 years of age and older will be able to possess up to 2.5 ounces of cannabis and cultivate up to six plants individually (12 plants per household) without a license. A 10% tax per transaction will be imposed on Ohio cannabis purchases once the regulated system is put into place. The taxes are expected to go towards social equity and job programs, funding for dispensary host communities, addiction treatment and education, and regulatory and administrative costs.
Regulating Cannabis Like Alcohol in Ohio
Tom Haren, spokesman for the Coalition to Regulate Marijuana Like Alcohol, the organization behind the initiative, said, “Ohioans spoke loud. They spoke clear. They know that they want a regulated adult use market here in Ohio, they want to get rid of the illicit market, they want to bring that tax revenue back from the state of Michigan, and to bring it in and admit and invest that money right back into their local communities.” The initiative aims to ensure local control, keep cannabis out of the hands of children, and benefit everyone.
The Ohio Cannabis Law Still Faces Opposition
As a citizen-initiated statute, the law is subject to change through the legislature, and many Ohio Republicans are still opposed to cannabis legalization. Republican legislators are free to seek to change or even repeal the law; however, a full repeal is unlikely given that Ohio voters approved it. For example, lawmakers may revisit the measure’s tax structure, as well as “questionable language” regarding limits on THC, says Republican Ohio Senate President, Matt Huffman. Some opposition is even encouraging state lawmakers to eliminate provisions of the measure that allow for commercial sales, advertising, and production.
Projections For a Healthy Ohio Cannabis Market
“This vote presents a tremendous opportunity for the state where legal adult-use sales are projected to exceed $1 billion annually,” Policy Director, Rodney Holcombe said in a statement. “This move puts Ohio in league with 23 other states that have taken this significant stride forward. We have witnessed firsthand the positive impact of legalized cannabis, including job creation, tax revenue for vital government services and unique business opportunities for entrepreneurs.” The Ohio cannabis medical market is already quite robust; MJBiz predicts that sales of medical cannabis in Ohio could reach as much as $575 million this year alone. MJBiz projections also suggest that adult-use sales could total $1.5 billion to $2 billion in the first year after the market launches, and $3.5 billion to $4 billion by the fourth year.
