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Ohio Attorney General Approves Language in Cannabis Legalization Measure

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Ohio is one step closer to legalizing adult-use cannabis in the state: Attorney General Dave Yost certified summary language for a proposed statewide initiative that would legalize cannabis for Ohioans ages 21 and older.

Yost said in a letter to supporters of the legalization effort that the proposed summary language (a brief explanation of the proposal provided to votes asked to sign a petition in support of the measure) is a “fair and truthful representation of the proposed law,” though he did not give a statement regarding whether or not he personally support the legislation.

This follows Yost’s rejection of a previous proposal and effort to legalize recreational cannabis, earlier in August Yost reporting that the Coalition to Regulate Marijuana Like Alcohol did not meet the necessary requirements for his approval. Yost cited seven points that led to his decision, ultimately pointing to the initiative which “does not seek to enact a single law; rather, it seeks to add an entire chapter to the Ohio Revised Code.”

Advocates made a similar attempt in 2016 in efforts to legalize medicinal cannabis, which failed to pass, but ultimately pressured state lawmakers into passing their medicinal cannabis legalization law in 2018. In an adjacent fashion, the current campaign could push lawmakers into publicly and directly addressing the issue.

The proposal was put forward by the Coalition to Regulation Marijuana Like Alcohol and would allow Ohioans age 21 and older to purchase, possess and grow cannabis, buying and possessing up to 2.5 ounces and including the right to grow up to 12 plants per household with multiple people.

The medicinal dispensaries already operating in the state would be able to expand their businesses to sell to the general adult population, with Ohio adding a 10 percent state tax to each cannabis purchase, ultimately leading to an estimated $400 million per year in new revenue, according to the backers of the proposal.

The tax revenue would be allocated to very specific areas, including 36 percent for a social equity and jobs fund to support social equity applicants in the adult-use business licensing process; 36 percent for a host community cannabis fund supporting communities that host adult-use dispensaries; 25 percent for a substance abuse and addiction fund, the support substance abuse education and treatment; and 3 percent for a division of cannabis control, which would oversee the adult-use cannabis industry.

“It replaces prohibition with a sensible framework for regulation and taxation,” Tom Haren, a spokesman for the Coalition to Regulate Marijuana Like Alcohol, told Cannabis Business Times. “It utilizes the existing medical marijuana infrastructure to provide a quick path to legal sales to adults that will provide an alternative for Ohio consumers to the unregulated market or spending their money out of state.”

Most of Ohio’s 47 medical cannabis dispensaries back the plan, in part because they would have the first dibs on licenses to sell recreational products for the program’s first two years. The proposal would also provide 40 new recreational cultivation licenses and 50 additional recreational store permits for social equity applicants, defined by the bill as “people from minority groups and communities most negatively impacted by cannabis prohibition.”

Local municipalities would be allowed to opt out of allowing recreational stores or limit the amount of cannabis businesses operating within their borders.

Now, the measure will head to the Ohio Ballot Board, which will decide whether the proposal contains a single law. If that is determined, proponents will then be cleared to begin gathering a minimum of 132,887 valid signatures from Ohio voters in at least 44 of the state’s 88 counties. After that is done, the proposed law can then be presented to state lawmakers.

If legislators don’t pass the measure within four months (which is likely, because of the conservative majority in the Statehouse), supporters would then need to collect another 132,887 signatures to place the proposal before Ohio voters in the next election.