Delaware, Ohio, has put a temporary pause on recreational cannabis businesses operating within its city limits; the city council voted 5 to 2 to enforce a six-month moratorium. This decision halts recreational marijuana businesses from opening in the city, giving officials time to consider how to best regulate them. The move follows the approval of Ohio’s Issue 2, which legalized recreational marijuana in November 2023.
The ban applies strictly to businesses and does not affect residents using cannabis in their homes. Although the council has the authority to lift the moratorium before the six-month deadline, opinions on the matter varied.
Councilmember Cory Hoffman, who ultimately supported the ban, stated, “I don’t think we need any kind of moratorium currently. The state is issuing licenses, so I believe Delaware should allow businesses to operate here.”
Despite this, other members, such as Vice Mayor Kent Shafer, argued that the city needed more time to decide on regulations that align with local standards. Shafer noted, “We’re not looking to ban these businesses, but we need time to discuss any potential additional limitations.”
In addition to the moratorium, the city is also reviewing separate legislation that could place further restrictions on the location of certain businesses, including those selling cannabis, tobacco or vape products. The proposed ordinance would prohibit these establishments from setting up within 500 feet of places such as parks, schools, playgrounds, churches and libraries. It also includes a clause to prevent two or more similar businesses from being within one mile of each other. The rule would apply only to businesses of the same type, meaning a vape shop could be near a marijuana dispensary, but two vape shops could not be within a mile of each other.
The new regulations would also limit the types of signage businesses can use. Temporary signage, such as banners or yard signs, would be banned, and flashing or animated signs would not be allowed. Businesses would also be limited to only two illuminated window signs.
More than 56 townships or municipalities in Ohio have also enacted moratoriums on recreational marijuana businesses. As in other states where recreational marijuana has been legalized, Ohio permits local governments to set their own rules about whether marijuana sales can take place within their borders.
Many of these moratoriums, like Delaware’s, are temporary, providing time for local authorities to evaluate existing laws and address potential conflicts.
The cannabis industry, including leading companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF), could be hoping that the different local authorities in Ohio finalize their rule-making processes so that adults who would like to consume marijuana can access the products easily.
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