Client Alerts & Insights
Issue 2 Passes And Recreational Marijuana Is On The Horizon For Ohio. What Is Next For The Buckeye State?
November 10, 2023
On November 7, 2023, Ohio Voters approved a ballot initiative legalizing recreational marijuana throughout the state, marking Ohio as the 24th state to allow adult cannabis use for non-medical purposes.
The new law allows adults 21 and over to purchase and possess up to 2.5 ounces of cannabis while also allowing home grow of cannabis plants (6 plants per adult, with a maximum of 12 plants per household). A 10% tax on cannabis purchases would go towards administrative costs to run the adult use program, addiction treatment, municipalities with dispensaries, and social equity and jobs programs
Within the Department of Commerce, a new Division of Cannabis Control will be created to administer the adult-use program. Additional aspects of the Issue 2 new licensing process are summarized below:
- Allows all current medical licenses in good standing (cultivation, processing, and dispensary licenses) to participate in the sale of recreational cannabis.
- Creates a new Level 3 cultivation License for 5,000 sq. ft. of grow space for recreational cannabis. 40 of these licenses will be initially available for award by the Division with more that may be added after 24 months.
- Current medical dispensaries will be issued one adult use dispensary license for their current location and one adult use dispensary license for a different location if the owners do not have any common ownership or control with any currently licensed cultivators or processors.
- Current Level 1 cultivators will be issued 3 adult use dispensary licenses at different locations designated by an application and current Level 2 cultivators will be issued 1 adult use dispensary license at a location designated by an application.
- An additional 50 adult use dispensary licenses with preferences for social equity applicants will be issued by the Division and awarded through a licensing process that has yet to be determined. More licenses may be added by the Division after 24 months.
Issue 2 is set to take effect 30 days after Election Day, but, as an initiated statute and not a constitutional amendment, the law is subject to change. Members of the legislature and the Governor have expressed support for changes that we may see in the coming weeks related to taxes and other issues.
Ohio will likely make changes to the law and the manner in which recreational marijuana is to be implemented in the state. The Department of Commerce has 9 months to implement the new program.
Clearly the majority of Ohioans support some form of recreational use of marijuana.
With this new industry comes significant business opportunities and Benesch’s Cannabis Industry Group is well-positioned to assist with licensing, corporate governance, and all legal aspects of entry into Ohio’s recreational marketplace. We are actively engaged in representing a number of clients in the space across the country. For additional information, please reach out to a member of the team:
Kristopher Chandler at kchandler@beneschlaw.com or 614.223.9377
Thomas Kern at tkern@beneschlaw.com or 614-223-9334
Rachel Winder at rwinder@beneschlaw.com or 614.223.9316
Latest News
D.C. Circuit Rejects DOE’s Use of Emergency Authority to Prevent Coal Plant Retirement
The D.C. Circuit vacated the Department of Energy’s order compelling continued operation of Michigan’s J.H. Campbell coal plant under DOE’s emergency authority, finding that Section 202(c) is a narrow, last-resort power reserved for immediate grid-reliability emergencies, not longer-term resource planning.
New BIS “Affiliates Rule” Compliance Date is November 10 Unless Suspended by U.S.-China Truce
A new party screening requirement will soon impact compliance of international dealings unless the U.S. Department of Commerce’s Bureau of Industry and Securities (“BIS”) issues a second extension of its effective date.
California’s New AI Law: What Legal Departments and Outside Counsel Need to Know
Newly enacted California Senate Bill 574 regulates how attorneys use generative AI by amending the California Code of Civil Procedure and requiring attorneys to personally verify every citation, whether sourced from AI or otherwise. It also holds law firms jointly responsible for sanctionable violations by their attorneys. The bill added a new section to the California Code of Civil Procedure (§ 1282.1), barring arbitrators from delegating their decision-making to generative AI.
Beyond Allulose: What Comes Next in Sugar-Related False Advertising Litigation?
The Franco decision has given plaintiffs a potential roadmap for challenging “Sugar Free,” “Zero Sugar” and similar claims when FDA guidance and existing regulations do not fully align.